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GIF by Jia Guo. View pronunciation video from Jia.
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Hi there, reader,
Chinese state media today reported on a Communist Party symposium on the economy, but did not mention the trade war with America. We’ve got you covered below, in one of four items at the top, plus our usual collection of links at the bottom.
If you’re in Washington, D.C., on August 8, you might enjoy the Definitive China-D.C. Happy Hour, organized by a variety of China-focused organizations. This year, the Happy Hour features author and NPR reporter Scott Tong.
—Jeremy Goldkorn, Editor-in-Chief
1. Who is allowed to report the news in China?
Earlier this month, Q Daily 好奇心日报, a Shanghai-based website, was ordered to halt original news reporting, which the authorities called “illegal news information services.” Founded in 2014, Q Daily is known for its relatively progressive coverage on public issues.
Permits for online news and information services are required by the Cyberspace Administration of China (CAC). While — technically — any website that publishes news or information about anything requires such a permit, enforcement has traditionally been spotty.
But in these tightening times for media, we can expect “illegal online news and information services” to be a more frequent charge against companies or people who publish information the Party does not like. There are three types of permit for legal online news and information services in China:
- Editing and publishing (采编发布服务 cǎibiān fābù fúwù) — required for original reportage. Although this permit is technically required for any original reporting, fashion websites are unlikely to get into trouble for reporting on new designs — unless that reportage is in some way objectionable.
- Forwarding and reposting (转载服务 zhuǎnzǎi fúwù) — news aggregation, such as found on commercial news portals, including Sina, Tencent, Netease, and Phoenix. Words of the aggregated stories may not be modified if stories are reposted.
- Information dissemination (传播平台服务 chuánbō píngtái fúwù) — this is for user-generated content and social media such as Weibo, WeChat, and any site and app that allows individual users to create and aggregate content.
A state media insider has written a guide to these permits and how to get them for SupChina: Click through for more on the rules for legal news in China.
—Jeremy Goldkorn
2. Trade war, day 26: Gloomy outlook despite private talks
In our last update on the trade war (day 21), official talks were frozen, and American and Chinese officials were bashing each other at multiple public forums, including the World Trade Organization.
Now, the two sides are “having private conversations as they look for ways to re-engage in negotiations,” according to Bloomberg (paywall). “U.S. stocks rose, Treasury yields edged higher, the offshore yuan erased an earlier drop and the dollar pared gains” upon the news, Bloomberg reports.
But the public bashing has not ended.
- Apple was furiously attacked in state media — in “Xinhua and at least four state-supported media outlets” — for “not doing enough to filter banned content on its iMessage service,” the Wall Street Journal reports (paywall).
- “Porn, gambling, medicines! Apple, you don’t even care to manage this?” is how one article from Xinhua’s public WeChat account was headlined (in Chinese).
- “State broadcaster CCTV joined in Tuesday on another front, saying Apple’s app store allowed illegal gambling apps disguised as official lottery apps,” the Journal notes.
- Though the criticism is conspicuously timed with the trade war, users of Apple’s iMessage program in China have been dealing with an unusually large amount of spam recently, according to Abacus.
- The attack on Apple can be seen as a “qualitative measure,” or non-tariff punishment to reciprocate American tariffs that the Chinese Ministry of Commerce threatened back in June.
Other news from the trade war:
- Beijing’s nixing of a $44 billion chipmaker merger last week, between U.S.-based Qualcomm and Netherlands-based NXP, has rubbed American officials the wrong way. The Bloomberg article linked above reports that “[Treasury Secretary] Mnuchin was among the Cabinet officials involved in a last-minute effort early last week to get the Qualcomm-NXP deal approved,” and that “the U.S. has privately expressed dismay to the highest levels of the Chinese government that the deal fell through.”
- The mayor of Los Angeles fears a “stupid” full-blown trade war would doom his city’s growth, the South China Morning Post reports. The city is “the busiest US container port and the No 1 hub for ocean trade with China. The port handled US$284 billion worth of goods last year, including US$145 billion with China,” the SCMP notes.
- “We hope to be the leading Chinese city in America for investment, tourism and students,” LA mayor Eric Garcetti said, the Financial Times reports (paywall).
- “U.S. almond farmers are getting crunched from all sides,” the Wall Street Journal reports (paywall), as a 50 percent tax from China on almond imports has coincided with a bumper crop and the closure of a loophole whereby almonds could be funneled through Vietnam to China.
Do you find the trade war “perplexing,” like Chinese Foreign Minister Wang Yi? Here’s two things to read:
—Lucas Niewenhuis
3. A censor for the Internet of Things?
My curiosity was piqued this morning by a headline on CoinDesk, a website that reports on Bitcoin, cryptocurrencies, and blockchain: China's government censorship agency is hiring a crypto expert.
The headline somewhat mischaracterizes the identity of the recruiting organization and the nature of the job advertised, although I have repeated the sin above — mea culpa. It is, however, natural to associate cryptocurrency and censorship after recent news stories about #MeToo activists in China using blockchain to dodge censorship.
The recruitment ad itself is interesting. It was published on SAPPRFT.gov.cn (in Chinese):
- State Administration of Press, Publications, Radio, Film, and TV (SAPPRFT) was formed by departmental merger in 2013 as the super-regulator in charge of all newswires, newspapers, and magazines, as well as all audio, video, and broadcast media.
- SAPPRFT’s death was announced (in Chinese) in March this year, when it was again restructured.
- Most of SAPPRFT’s duties — and its domain name — seem to have remained with the newly formed SART (State Administration of Radio and TV — 国家广播电视总局 guójiā guǎngbò diànshì zǒngjú), which posted the recruitment ad to the SAPPRFT website.
- Regulation of cinema will apparently fall to the Party’s Publicity (née Propaganda) Bureau, while the Cyberspace Administration of China seems to have become the major regulator for online news and information, but I have not seen any statements clarifying new roles.
SART’s ad does not mention censorship specifically, and given the recent organizational changes, one can only guess at the purpose of the new hires, but this is what we know from the ad:
- A research institute affiliated to SART is looking to fill three specialized applied research roles.
- Big data, Internet of Things (IoT), and cryptography (including blockchain) are the focus areas.
- Candidates must have a “relatively high ideological and political level” (较高的思想政治水平 jiàogāo de sīxiǎng zhèngzhì shuǐpíng), a master’s degree, and Beijing residency. The first two roles require previous study overseas.
—Jeremy Goldkorn
4. The ‘happiest Muslims in the world’ and their GPS trackers
- “How the ‘Happiest Muslims in the World’ are coping with their happiness” is the caustic title of a grim account of ordinary Uyghurs’ lives rights now by Gene A. Bunin, a Uyghur-speaking scholar and longtime resident of Xinjiang.
- The testimony of an ethnic Kazakh woman who fled from Xinjiang to Kazakhstan after working in a re-education camp was published to YouTube with English subtitles on July 14. The Financial Times now reports (paywall), “Deliberations were scheduled to end last week but have been extended to begin again on Wednesday after the judge rejected Ms Sauytbay’s plea bargain to face criminal charges in Kazakhstan rather than be deported to China.”
- “About 11,500 Chinese Muslims are joining the Hajj this year, fewer than the 12,800 last year,” according to nationalist rag the Global Times. About 3,300 of them will carry a GPS device that will “help Chinese organizers” see their real-time location. The Hajj is the annual pilgrimage to Mecca that observant Muslims try to attend at least once in their lives.
—Jeremy Goldkorn
BUSINESS AND TECH:
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Air purifiers
China’s pollution obsession spawns a global consumer industry / FT (paywall) “When Frank Hammas first came to China, the main market for the air purifiers his company sold was from hospitals and other institutions. Today, Switzerland-based IQAir has a booming consumer business, thanks to public concern over air quality that has created a global market out of a Beijing obsession.”
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Intellectual property and ecommerce
Pinduoduo says fighting fakes is unavoidable / TechNode Newly listed on Nadaq, Pinduoduo is an ecommerece company known for selling cheap goods — and that means lots of fakes. But being on Nasdaq also means they need to do something about it. TechNode says “Pinduoduo recognizes the problem of knock-offs and said it’s going to fight it”
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Censorship of short videos
Bilibili promises to enhance regulation of its videos following government crackdown / TechNode Follow up to punishment of 19 video platforms for hosting “vulgar, violent, pornographic or pirated content, and promoting distorted information.”
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Coffee wars
Starbucks to begin coffee delivery in China with Alibaba / Bloomberg (paywall) “Starbucks Corp. will be joining forces with Alibaba Group Holding Ltd. to begin delivering its drinks and baked goods in China.” See also A billion-dollar coffee company and the woman behind it.
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Tech companies and reality talent shows
Tencent and Alibaba invest in former “Voice of China” producer Canxing / TechNode “Alibaba and Tencent have invested in television show producer Shanghai Canxing Culture & Broadcast Co., in a funding round worth RMB 360 million ($53 million), according to local media.”
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Banks complain about Ant Financial
Jack Ma’s giant financial startup is shaking the Chinese banking system / WSJ (paywall) “China’s banks complain Ant siphons away their deposits, causing them to pay higher interest rates, and is a factor leading them to close branches and ATMs. One commentator at a state-owned television channel described Ant’s huge money-market fund as ‘a vampire sucking blood from banks.’”
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Blockchain and crypto
Tron is cashed up with US$70 million from a coin sale before China's ICO ban. Where is it going? / SCMP Such expansion ambition might have been unthinkable nine months ago when China banned initial coin offerings (ICO) fundraising and ordered the shutdown of local cryptocurrency exchanges.
POLITICS AND CURRENT AFFAIRS:
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Indo-Pacific Economic Vision vs. Belt and Road Initiative
China dismisses US investment ‘vision’ for Indo-Pacific as incidental to its own connectivity plan / SCMP “Washington’s plan, which is seen as a response to the belt and road strategy, includes US$113 million in direct government investment, and will increase the financial support that the US government provides to countries in the region through the US International Development Finance Corporation to US$60 billion.”
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Pakistan debt
US warns IMF against bailout for Pakistan / Dawn “United States' Secretary of State Mike Pompeo has warned that the US would closely be watching whether the International Monetary Fund (IMF) bails out Pakistan — a key player in China's One Belt One Road (OBOR) project, and right now in need of a bailout. ‘Make no mistake, we will be watching what the IMF does,’ Pompeo stated in an interview…”
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Suppression of veteran protests
China’s military veterans warned not to spoil 91st anniversary party for People’s Liberation Army / SCMP “On the eve of the 91st anniversary of the founding of China’s military, a senior official on Tuesday issued a clear warning to the nation’s millions of veterans not to use the event as an excuse to air their grievances regarding welfare rights.”
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Vaccine scandal
How China's protectionist vaccine policy has backfired on Beijing / SCMP “China’s latest public health scare has raised fresh questions over the government’s protectionist measures against foreign imports of vaccines.” Top Chinese official in charge of immunization ‘in critical condition after suicide attempt’ / SCMP Chinese parents panic over infant vaccine safety / Bloomberg (paywall)
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Anti-corruption campaign eats up more flies
China punishes 36,618 officials for violating frugality rules in first half of 2018 / Xinhua
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Anti-corruption campaign takes down more tigers
Top cadre under investigation after turning himself in to China’s graft-buster / SCMP “A former senior political adviser from Hebei Province has turned himself in to China’s graft-buster, the National Supervisory Commission said on Tuesday, only the second top official to do so since President Xi Jinping launched his sweeping crackdown on corruption.” Disgraced former Chinese internet tzar Lu Wei charged with bribery / CNN “Lu Wei ‘accepted a large number of bribes’ during his time as national propaganda chief, head of the Cyberspace Administration of China, deputy head of the official Xinhua news agency, and as a Beijing city official, according to state media.”
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North Korea pursuing economic development?
Touring North Korean farms and factories, Kim Jong Un signals a shift / WSJ (paywall) “In an abrupt shift following months of visits to military-related sites, Mr. Kim has made a series of publicized trips to remote factories and farms and other symbols of the daily welfare of his people. The visits appear to reflect his stated new focus on economic development, as sanctions weigh on his country and state control over economic activity erodes, North Korea experts said.” Read on SupChina: Will North Korea finally take China’s offer of economic know-how?
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Slightly slower strangulation of pro-independence Hong Kong party
Hong Kong National Party gets 28 extra days to argue against police attempt to ban it / SCMP “Hong Kong’s Security Bureau has given a pro-independence party facing a possible ban an extra 28 days to submit arguments against the unprecedented proposal by the police. On Tuesday evening, it gave the Hong Kong National Party (HKNP) until September 4 to make its case to the security minister, instead of August 7 as previously announced.”
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Diplomatic faux pas
U.K. Foreign Secretary Jeremy Hunt calls his Chinese wife Japanese in Beijing / NYT (paywall) “Jeremy Hunt, the new British foreign secretary, made a diplomatic gaffe on Monday, calling his Chinese-born wife Japanese during a discussion with his counterpart in Beijing.”
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Partyspeak
In the highest position / China Media Project “In the dictionary of the Chinese Communist Party, the term ‘one position as the highest authority,’ or dingyuyizun (定于一尊), has for decades been used in a decidedly negative sense — to suggest power and position that escapes necessary constraints. But in recent weeks this negative phrase seems to have been dusted off, and a fresh coat of paint applied.”
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Military influence
China donates warships to Sri Lanka and Philippines in drive to expand regional influence / SCMP
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China-Cambodia tax-free economic zone
'No Cambodia left': How Chinese money is changing Sihanoukville / Guardian “Of the $1.3bn (£1bn) invested in Sihanoukville over the past year, $1.1bn has come from China.... Many of the new Chinese businesspeople arriving in Sihanoukville are here to take advantage of a new China-Cambodia tax-free economic zone.”
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Beijing’s Taiwan erasure
Beijing angry over Taiwanese flag flown by firm in Vietnam / SCMP “China is pressuring Vietnam to ‘correct the mistake’ of allowing Taiwanese firms to fly the Republic of China flag at their factories, making its latest move to curb signs of Taiwan overseas.”
SOCIETY AND CULTURE:
PHOTO OF THE DAY
Construction scene in Guangzhou
In this photo from 1996, two construction workers stand on scaffolding high up in the sky in Guangzhou, the capital and the most populous city of Guangdong Province.
—Jia Guo
View on SupChina | View all photos
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This newsletter was sent at 6 p.m. from New York, NY on July 31, 2018
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