Table.Briefing: China (English)

Disinformation in Uyghur Congress run-up + Diplomatic progress between China and India

Dear reader,

In the run-up to its General Assembly on Thursday, the World Uyghur Congress (WUC) is faced with a massive disinformation campaign and cyberattacks. The Uyghurs suspect the Chinese state apparatus, which oppresses the Muslim minority in Xinjiang, is behind this. The Berlin WUC representative speaks of a “new dimension” of Beijing’s interference. Marcel Grzanna explains why these massive attacks are happening at this particular time.

The BRICS+ summit is being held in Kazan, Russia. In addition to the usual public gestures of support between Putin and Xi, an agreement between the BRICS heavyweights India and China is a surprising showstopper: After decades of disputes, the countries have made diplomatic progress regarding patrols of their common border. In our second analysis, we take a look at the conflict points along the border and the other topics discussed at the summit.

Last but not least, we are pleased to announce our media partnership with the 18th Asia-Pacific Conference of German Business (APK):

Starting with tomorrow’s issue on Thursday, we will take you with us to New Delhi. In the Indian metropolis, German Chancellor Olaf Scholz and Economy Minister Robert Habeck will be joined by business giants such as Siemens and BASF to debate Germany’s de-risking future in the Asia-Pacific region.

You can look forward to exclusive dialogue partners and insights. We will publish four issues under the APK branding – including Saturday and Sunday. Our regular China coverage will be back on Monday.

Your
Amelie Richter
Image of Amelie  Richter

Feature

Presidential election: How the World Uyghur Congress is being discredited

This image is circulating on the internet and is intended to discredit the World Uyghur Congress as an US-controlled organization.

The General Assembly of the World Uyghur Congress (WUC) in Sarajevo on Thursday seems to be a thorn in someone’s side. Candidates and delegates are being slandered and threatened, misinformation about the conference is being spread, and the organization’s operational capacity is being hindered by cyberattacks. It is unclear who is behind the manipulation. However, the Uyghurs suspect the Chinese state apparatus is pulling the strings.

On Tuesday, a photo appeared on the internet showing two masked men in front of the portraits of four members of the WUC leadership, one of them armed with an assault rifle. “We are the puppets of the US government,” the Arabic writing underneath reads. The picture’s message is probably aimed at the entire Muslim world and is presumably intended to prevent possible solidarity with the Uyghurs in Arab states. The Uyghurs themselves are a Turkic people and do not speak Arabic.

Disruptions have reached a new dimension

The campaign by Unknown has been in full swing for weeks. “The intensity of attempted interference and disruption has reached a new dimension ahead of this assembly,” says Haiyuer Kuerban, Director of the WUC’s Berlin office. It is the eighth general assembly of the umbrella organization since 2004, which has established itself as a global representative of Uyghur interests with its headquarters in Munich. The fact that this particular year has seen the most massive attacks against the organization since its foundation probably has something to do with the growing recognition of its work. Never before has the cause of the Uyghurs attracted so much attention worldwide as in recent years.

Ever since the United Nations officially confirmed that the Chinese government had committed crimes against humanity in Xinjiang and international research documented the extent of repression and forced labor in the ethnic group’s homeland, the plight of the Uyghurs has been a matter of concern for governments, parliaments and civil societies around the world. The upcoming presidential and executive committee elections will be accompanied by international coverage and closely followed by politicians and activists.

WUC plagued by internal problems

Internationally, China must justify the oppression and persecution of millions of Uyghur men and women. In the US and Europe, new legislation is increasingly demanding more robust evidence of clean supply chains for products linked to Xinjiang. And one reason for China’s slowing economy is that other countries look closer at what they buy from the People’s Republic.

But during these very times, the umbrella organization, which recruits its delegates from almost two dozen internationally active Uyghur organizations, is plagued by internal problems. President Dolkun Isa is facing accusations of sexual harassment. He does not deny that he sent, at the very least, misleading messages to a young female activist from Brussels whom he had never met in person. A group of international academics accuse the WUC of lightly dismissing the issue as part of a Chinese campaign.

Credibility of the organization shaken?

In conversation with Table.Briefings, Isa assures that he was not aware that his messages could be interpreted differently, but nevertheless drew the consequences. He has been on leave of absence for several months. According to the statutes, a third term of office is out of the question anyway. Still, his case casts a shadow over the congress and provides fuel for all those who wish to see the organization’s credibility shaken. The incident is accompanied by visibly falsified images showing Isa’s head in intimate encounters with young women.

The Chinese government is also officially attacking the General Assembly. The Chinese embassy in Bosnia is mobilizing all its forces to marginalize the importance of the event. Ambassador Miao Dake posed in a photo with Bosnian Security Minister Nenad Nešić for the Chinese government’s website. The text announced closer cooperation in areas such as police work. The publication was accompanied by subtle hints from Miao that Isa might be arrested if he entered Bosnia. Bosnia and the People’s Republic of China have signed an extradition treaty. According to reports, Isa will still be traveling to Sarajevo.

The delegates of the eighth WUC General Assembly received this email from the account of Chief Coordinator Erkin Zunun. The supposed cancellation is apparently intended to cause confusion.

However, the manipulation campaign by the big unknown is bearing fruit in other ways. Around ten delegates have already canceled their participation in Sarajevo, mainly because they fear for some of their families who still live in the People’s Republic of China. A handful of delegates from Uzbekistan have canceled their participation altogether.

A few days ago, around 180 remaining delegates received an email from the account of WUC Chief Coordinator Erkin Zunun. In it, the author announced that the General Assembly had been canceled at short notice. However, as Zunun assured, he had not written the email. This means an unauthorized person must have sent the message from his account. All delegates also received a lengthy message via their Signal accounts from a faceless Abdullah, who questioned the legitimacy of the WUC in fluent Uyghur.

Turghunjan Alawdun to become new president

In this chaotic situation, a new leadership team must be elected. The search for Isa’s successor has already required much persuasion within the organization. The only candidate, the current Deputy Chairman of the Executive Committee, Turghunjan Alawdun, can be certain that the Chinese government will pull out all the stops to intimidate and discredit him. A campaign against him has been running for weeks, trying to convince the Uyghurs that Alawdun wants to turn the secular organization into a religious sect.

The designated Chair of the Executive Committee, Zumretay Arkin, who is also a lobbyist at the UN Human Rights Council in Geneva and acts as the organization’s press spokesperson, is already getting a taste of this. Unknown sources on the Internet claim that she is unstable and has had improper relationships with several men.

  • Forced Labor
  • Human Rights
  • Supply chains
  • Uyghurs
  • Xinjiang
Translation missing.

Despite agreement before BRICS+: Why the Sino-Indian border dispute may continue

The agreement between China and India on patrols along their common border is a remarkable diplomatic step forward on the sidelines of the BRICS+ meeting in Kazan, Russia. It would significantly defuse one of the oldest military conflicts on the Asian continent.

A day after India announced that it had reached an agreement with China on patrols along the Line of Actual Control (LAC) in eastern Ladakh, China confirmed the development on Tuesday. According to a foreign office spokesperson, Beijing and New Delhi have been in close contact recently through diplomatic and military channels. The two sides held intensive discussions on possible solutions to the conflict along the Chinese-Indian border.

The agreement was announced ahead of a bilateral meeting on Wednesday between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS+ summit. The meeting between Xi and Modi is the first formal meeting between the two leaders in five years. India’s Foreign Minister confirmed the meeting for the following day on Tuesday. Details of the agreement have not yet been disclosed. It can be assumed that there is still some room for discussion between Xi and Modi.

Cautious optimism among observers

The village of Demchok is located in the areas on whose future India and China reached an agreement on Monday. It is located right on the LAC in the south-easternmost corner of Ladakh and is one of the most remote villages in the country – yet it is of enormous strategic importance for both sides.

The area was the scene of one of the battles during the Sino-Indian conflict of 1962 and has been a site of confrontation between Chinese and Indian troops for more than a decade. Both countries are armed to the teeth there. There have been several clashes over military patrols, shepherds’ pastures or the construction of buildings.

Several conflict points in eastern Ladakh have flared up again since bloody clashes broke out in the Galwan Valley in 2020. These are

  • the patrol point in Galwan,
  • the patrol point at the Gogra Hot Springs,
  • the northern and southern shores of Pangong Tso Lake
  • the Depsang plain and
  • Demchok.

The Xi-Modi meeting and the agreement are viewed with “cautious optimism,” writes Manoj Kewalramani. He is Chairman of the Indo-Pacific Research Program at the Center for Strategic and International Studies (CSIS) and an expert on China’s military strategy. “Perhaps, the meeting will yield greater clarity on how both sides are likely to move forward on the boundary issue,” says Kewalramani.

He believes a deeper understanding is still needed on both sides. “This will take time and patience. Moreover, given the experience of summitry with China over the past decade and the structural fault lines between the two sides, it would be prudent to keep expectations low,” Kewalramani concludes.

Putin sees China and Russia as stabilizing powers

Meanwhile, Putin and Xi discussed Ukraine and other global issues during the meeting on the summit’s sidelines, Kremlin spokesman Dmitry Peskov said. The two heads of state “reaffirmed their strong strategic partnership and outlined plans for future cooperation.”

“At present, the world is going through changes unseen in a hundred years, the international situation is intertwined with chaos,” Xi told Putin, according to state media. “But I firmly believe that the friendship between China and Russia will continue for generations, and great countries’ responsibility to their people will not change.”

Putin called Xi a “dear friend” and said that the partnership with China was a force for stability in the world: “Russian-Chinese cooperation in world affairs is one of the main stabilizing factors on the world stage,” Putin said. There were also expressions of support from South Africa: “We continue to see Russia as a valued ally, as a valued friend who supported us right from the beginning, from the days of our struggle against apartheid,” said President Cyril Ramaphosa.

Putin meets Erdoğan and Pezeshkian

India’s Prime Minister Modi had called for peace in Ukraine before the summit. He said there would be more opportunity to talk about it on Wednesday.

The BRICS+ will continue their summit on Wednesday. On this day, Putin will meet Iranian President Masoud Pezeshkian and Turkish President Recep Tayyip Erdoğan. On Thursday, Putin will hold a press conference after the summit.

Delegations from 36 countries – 22 of which are represented by heads of state – and six international organizations are attending the summit. These countries account for 45 percent of the world population and 35 percent of the global economy.

  • Geopolitics
  • India
  • Russland
  • Security
  • Xi Jinping
Translation missing.

Sinolytics Radar

China continues to gradually reduce its US Treasury holdings

Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
  • At 860 billion, China currently holds the second-largest amount of US debt after Japan. The majority of that, $777 billion, is in US Treasuries, though its holdings have declined significantly since 2013, by nearly $500 billion from $1.27 trillion.​
  • While reports in 2024 suggested that China was shifting from US Treasuries to gold and commodities to proactively manage the risk of sanctions or promote de-dollarization, the trend of reducing US Treasury holdings has been ongoing since 2013, with no significant acceleration recently. This reduction has also been partially offset by an increase in US Agency bond holdings and offshore treasury custodianship.​
  • The accumulation of US Treasuries followed the overall development of China’s trade surplus with the US. The central bank acquired US Treasuries as a stable investment and to keep the RMB exchange rate and export prices artificially low. Since 2018, as the trade imbalance has declined, the need to buy US Treasuries to manage the RMB exchange rate has naturally diminished.​
  • Since China holds only 2.9 percent of US Treasuries, a sudden sale by China would likely not disrupt U.S. debt financing, as the Federal Reserve could absorb the securities, and there is strong global demand for U.S. Treasuries due to the dollar’s role as the dominant international reserve currency.​
  • Even if the sale of US securities led to a depreciation of the dollar, this would, in turn, negatively impact China’s exports to the US. Moreover, if China were to sell them all at once, this would lower their price, resulting in a loss for China. ​
  • China’s large assets in the US and the Western bloc make it vulnerable to US sanctions. China could be cut off from refinancing through the dollar system, and its foreign assets could be frozen. Sanctioning banks involved in non-dollar transactions could further limit China’s financing options.​

Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.

News

TSMC: Semiconductor found in Huawei product despite embargo

The Taiwanese chip manufacturer TSMC has notified the US authorities about a circumvention of the embargo on computer chips. The complaint was triggered by the discovery of a TSMC semiconductor in a device from the Chinese company Huawei. The component had been found in a Huawei product after tech research firm TechInsights took apart the product. The company then contacted the US authorities.

TSMC emphasized that it had not supplied Huawei since mid-September 2020 due to US export restrictions. The company said it is not aware of any investigations against TSMC. TSMC shares listed in the US nevertheless fell by up to 2.4 percent. The Commerce Department said in a statement that it is “aware of reporting alleging potential violations of US export controls” but cannot comment on whether any investigation is ongoing.

The Financial Times and The Information initially reported on US investigations into Huawei and TSMC. The US embargo covers, among other things, modern semiconductor components needed for the training and operation of artificial intelligence (AI).

  • Mikrochips

Shein: How the fast fashion platform wants to become more sustainable in Germany

The Chinese online fashion giant Shein now offers German customers the option of selling second-hand clothing from its own production. The used Shein products can be bought and sold directly via the app from Tuesday, the company announced. The platform, called Shein Exchange, is already available to users in the USA, the UK, and France. According to the company, 4.2 million users registered on the US platform last year. Shein, like the online shop Temu, has been criticized for the massive number of individual fast-fashion products that are sold via the associated app, often at very low prices. Criticism has also been leveled at the working conditions under which the clothing is produced. ari

  • E-commerce

Bishop appointment: Why the Vatican extends its secret agreement with China

China and the Vatican have extended their agreement on the appointment of Catholic bishops, the two parties announced on Tuesday. The four-year extension, as opposed to the previous two years, is seen as a sign of improving relations. The Vatican signed the controversial agreement in 2018, which gives Beijing influence over who Pope Francis appoints as bishops in the country.

Critics saw it as a moral surrender to the communist regime. The exact details of the agreement were never made public. In a speech at the end of a trip to Southeast Asia and Oceania last month, Francis said that the results of the 2018 agreement were “good.”

Around 40 million Christians officially live in China. Many more practice their faith underground, and there are frequent arrests. The Vatican recognizes Taiwan diplomatically and has not maintained diplomatic relations with Beijing since 1951. rtr/mcl

  • Religion

Despite stimulus: Why the IMF lowers its growth forecast for China

The International Monetary Fund (IMF) has lowered its growth rate for China. The financial organization announced in Washington on Tuesday that it expects the People’s Republic to grow by 4.8 percent this year, 0.2 percentage points less than previously. For 2025, the IMF expects a growth rate of 4.5 percent.

This outlook does not take into account the effects of the economic measures recently announced by the Chinese central bank, which have not been specified yet. IMF chief economist Pierre-Olivier Gourinchas explained that recent announcements would not be enough to boost growth significantly. He added that the boost from net exports would partially offset the continuing weakness of the property sector and low consumer confidence.

Overall, the IMF expects global growth of 3.2 percent in both 2024 and 2025. The global growth drivers continue to be India, China and the USA. The biggest problem for the global economy recently has been high inflation. There have been signs of a noticeable easing here, but not everywhere. rtr

  • IWF

Executive Moves

Pam Kaur becomes the first female Chief Financial Officer at HSBC Holdings. Kaur was previously Chief Risk and Compliance Officer at the Hong Kong bank. HSBC Holdings also announced a restructuring of the business. Hong Kong is a “strategic priority.”

Jasmine Jia has joined Deutsche Bank’s China Macro Sales division in Hong Kong. The finance specialist previously worked at BNP Paribas in Paris and Crédit Agricole CIB in Shanghai.

Is something changing in your organization? Let us know at heads@table.media!

Dessert

Katzen im Katzencafé Gudaomaone in der Xiaojuer Hutong im Stadtteil Nanluoguxiang in Peking, der Hauptstadt Chinas, am 19. Juni 2023.

Animal help wanted! Pet cafés, where guests can spend time with dogs, cats or even more exotic animals, are big business in China. Some café owners now take the opportunity to accept applications from furry four-legged friends, as CNN writes. This is popular with people who want to put their pets to work. “Earn snack money” (zhengmao tiaoqian) is the name of the trend on Xiaohongshu, China’s version of Instagram. And what do animal employees earn? One job listing offers a 30 percent discount for pet owners. Another café owner offers a starting salary of five cans of cat food “after tax” – of course.

China.Table editorial team

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    In the run-up to its General Assembly on Thursday, the World Uyghur Congress (WUC) is faced with a massive disinformation campaign and cyberattacks. The Uyghurs suspect the Chinese state apparatus, which oppresses the Muslim minority in Xinjiang, is behind this. The Berlin WUC representative speaks of a “new dimension” of Beijing’s interference. Marcel Grzanna explains why these massive attacks are happening at this particular time.

    The BRICS+ summit is being held in Kazan, Russia. In addition to the usual public gestures of support between Putin and Xi, an agreement between the BRICS heavyweights India and China is a surprising showstopper: After decades of disputes, the countries have made diplomatic progress regarding patrols of their common border. In our second analysis, we take a look at the conflict points along the border and the other topics discussed at the summit.

    Last but not least, we are pleased to announce our media partnership with the 18th Asia-Pacific Conference of German Business (APK):

    Starting with tomorrow’s issue on Thursday, we will take you with us to New Delhi. In the Indian metropolis, German Chancellor Olaf Scholz and Economy Minister Robert Habeck will be joined by business giants such as Siemens and BASF to debate Germany’s de-risking future in the Asia-Pacific region.

    You can look forward to exclusive dialogue partners and insights. We will publish four issues under the APK branding – including Saturday and Sunday. Our regular China coverage will be back on Monday.

    Your
    Amelie Richter
    Image of Amelie  Richter

    Feature

    Presidential election: How the World Uyghur Congress is being discredited

    This image is circulating on the internet and is intended to discredit the World Uyghur Congress as an US-controlled organization.

    The General Assembly of the World Uyghur Congress (WUC) in Sarajevo on Thursday seems to be a thorn in someone’s side. Candidates and delegates are being slandered and threatened, misinformation about the conference is being spread, and the organization’s operational capacity is being hindered by cyberattacks. It is unclear who is behind the manipulation. However, the Uyghurs suspect the Chinese state apparatus is pulling the strings.

    On Tuesday, a photo appeared on the internet showing two masked men in front of the portraits of four members of the WUC leadership, one of them armed with an assault rifle. “We are the puppets of the US government,” the Arabic writing underneath reads. The picture’s message is probably aimed at the entire Muslim world and is presumably intended to prevent possible solidarity with the Uyghurs in Arab states. The Uyghurs themselves are a Turkic people and do not speak Arabic.

    Disruptions have reached a new dimension

    The campaign by Unknown has been in full swing for weeks. “The intensity of attempted interference and disruption has reached a new dimension ahead of this assembly,” says Haiyuer Kuerban, Director of the WUC’s Berlin office. It is the eighth general assembly of the umbrella organization since 2004, which has established itself as a global representative of Uyghur interests with its headquarters in Munich. The fact that this particular year has seen the most massive attacks against the organization since its foundation probably has something to do with the growing recognition of its work. Never before has the cause of the Uyghurs attracted so much attention worldwide as in recent years.

    Ever since the United Nations officially confirmed that the Chinese government had committed crimes against humanity in Xinjiang and international research documented the extent of repression and forced labor in the ethnic group’s homeland, the plight of the Uyghurs has been a matter of concern for governments, parliaments and civil societies around the world. The upcoming presidential and executive committee elections will be accompanied by international coverage and closely followed by politicians and activists.

    WUC plagued by internal problems

    Internationally, China must justify the oppression and persecution of millions of Uyghur men and women. In the US and Europe, new legislation is increasingly demanding more robust evidence of clean supply chains for products linked to Xinjiang. And one reason for China’s slowing economy is that other countries look closer at what they buy from the People’s Republic.

    But during these very times, the umbrella organization, which recruits its delegates from almost two dozen internationally active Uyghur organizations, is plagued by internal problems. President Dolkun Isa is facing accusations of sexual harassment. He does not deny that he sent, at the very least, misleading messages to a young female activist from Brussels whom he had never met in person. A group of international academics accuse the WUC of lightly dismissing the issue as part of a Chinese campaign.

    Credibility of the organization shaken?

    In conversation with Table.Briefings, Isa assures that he was not aware that his messages could be interpreted differently, but nevertheless drew the consequences. He has been on leave of absence for several months. According to the statutes, a third term of office is out of the question anyway. Still, his case casts a shadow over the congress and provides fuel for all those who wish to see the organization’s credibility shaken. The incident is accompanied by visibly falsified images showing Isa’s head in intimate encounters with young women.

    The Chinese government is also officially attacking the General Assembly. The Chinese embassy in Bosnia is mobilizing all its forces to marginalize the importance of the event. Ambassador Miao Dake posed in a photo with Bosnian Security Minister Nenad Nešić for the Chinese government’s website. The text announced closer cooperation in areas such as police work. The publication was accompanied by subtle hints from Miao that Isa might be arrested if he entered Bosnia. Bosnia and the People’s Republic of China have signed an extradition treaty. According to reports, Isa will still be traveling to Sarajevo.

    The delegates of the eighth WUC General Assembly received this email from the account of Chief Coordinator Erkin Zunun. The supposed cancellation is apparently intended to cause confusion.

    However, the manipulation campaign by the big unknown is bearing fruit in other ways. Around ten delegates have already canceled their participation in Sarajevo, mainly because they fear for some of their families who still live in the People’s Republic of China. A handful of delegates from Uzbekistan have canceled their participation altogether.

    A few days ago, around 180 remaining delegates received an email from the account of WUC Chief Coordinator Erkin Zunun. In it, the author announced that the General Assembly had been canceled at short notice. However, as Zunun assured, he had not written the email. This means an unauthorized person must have sent the message from his account. All delegates also received a lengthy message via their Signal accounts from a faceless Abdullah, who questioned the legitimacy of the WUC in fluent Uyghur.

    Turghunjan Alawdun to become new president

    In this chaotic situation, a new leadership team must be elected. The search for Isa’s successor has already required much persuasion within the organization. The only candidate, the current Deputy Chairman of the Executive Committee, Turghunjan Alawdun, can be certain that the Chinese government will pull out all the stops to intimidate and discredit him. A campaign against him has been running for weeks, trying to convince the Uyghurs that Alawdun wants to turn the secular organization into a religious sect.

    The designated Chair of the Executive Committee, Zumretay Arkin, who is also a lobbyist at the UN Human Rights Council in Geneva and acts as the organization’s press spokesperson, is already getting a taste of this. Unknown sources on the Internet claim that she is unstable and has had improper relationships with several men.

    • Forced Labor
    • Human Rights
    • Supply chains
    • Uyghurs
    • Xinjiang
    Translation missing.

    Despite agreement before BRICS+: Why the Sino-Indian border dispute may continue

    The agreement between China and India on patrols along their common border is a remarkable diplomatic step forward on the sidelines of the BRICS+ meeting in Kazan, Russia. It would significantly defuse one of the oldest military conflicts on the Asian continent.

    A day after India announced that it had reached an agreement with China on patrols along the Line of Actual Control (LAC) in eastern Ladakh, China confirmed the development on Tuesday. According to a foreign office spokesperson, Beijing and New Delhi have been in close contact recently through diplomatic and military channels. The two sides held intensive discussions on possible solutions to the conflict along the Chinese-Indian border.

    The agreement was announced ahead of a bilateral meeting on Wednesday between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS+ summit. The meeting between Xi and Modi is the first formal meeting between the two leaders in five years. India’s Foreign Minister confirmed the meeting for the following day on Tuesday. Details of the agreement have not yet been disclosed. It can be assumed that there is still some room for discussion between Xi and Modi.

    Cautious optimism among observers

    The village of Demchok is located in the areas on whose future India and China reached an agreement on Monday. It is located right on the LAC in the south-easternmost corner of Ladakh and is one of the most remote villages in the country – yet it is of enormous strategic importance for both sides.

    The area was the scene of one of the battles during the Sino-Indian conflict of 1962 and has been a site of confrontation between Chinese and Indian troops for more than a decade. Both countries are armed to the teeth there. There have been several clashes over military patrols, shepherds’ pastures or the construction of buildings.

    Several conflict points in eastern Ladakh have flared up again since bloody clashes broke out in the Galwan Valley in 2020. These are

    • the patrol point in Galwan,
    • the patrol point at the Gogra Hot Springs,
    • the northern and southern shores of Pangong Tso Lake
    • the Depsang plain and
    • Demchok.

    The Xi-Modi meeting and the agreement are viewed with “cautious optimism,” writes Manoj Kewalramani. He is Chairman of the Indo-Pacific Research Program at the Center for Strategic and International Studies (CSIS) and an expert on China’s military strategy. “Perhaps, the meeting will yield greater clarity on how both sides are likely to move forward on the boundary issue,” says Kewalramani.

    He believes a deeper understanding is still needed on both sides. “This will take time and patience. Moreover, given the experience of summitry with China over the past decade and the structural fault lines between the two sides, it would be prudent to keep expectations low,” Kewalramani concludes.

    Putin sees China and Russia as stabilizing powers

    Meanwhile, Putin and Xi discussed Ukraine and other global issues during the meeting on the summit’s sidelines, Kremlin spokesman Dmitry Peskov said. The two heads of state “reaffirmed their strong strategic partnership and outlined plans for future cooperation.”

    “At present, the world is going through changes unseen in a hundred years, the international situation is intertwined with chaos,” Xi told Putin, according to state media. “But I firmly believe that the friendship between China and Russia will continue for generations, and great countries’ responsibility to their people will not change.”

    Putin called Xi a “dear friend” and said that the partnership with China was a force for stability in the world: “Russian-Chinese cooperation in world affairs is one of the main stabilizing factors on the world stage,” Putin said. There were also expressions of support from South Africa: “We continue to see Russia as a valued ally, as a valued friend who supported us right from the beginning, from the days of our struggle against apartheid,” said President Cyril Ramaphosa.

    Putin meets Erdoğan and Pezeshkian

    India’s Prime Minister Modi had called for peace in Ukraine before the summit. He said there would be more opportunity to talk about it on Wednesday.

    The BRICS+ will continue their summit on Wednesday. On this day, Putin will meet Iranian President Masoud Pezeshkian and Turkish President Recep Tayyip Erdoğan. On Thursday, Putin will hold a press conference after the summit.

    Delegations from 36 countries – 22 of which are represented by heads of state – and six international organizations are attending the summit. These countries account for 45 percent of the world population and 35 percent of the global economy.

    • Geopolitics
    • India
    • Russland
    • Security
    • Xi Jinping
    Translation missing.

    Sinolytics Radar

    China continues to gradually reduce its US Treasury holdings

    Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
    • At 860 billion, China currently holds the second-largest amount of US debt after Japan. The majority of that, $777 billion, is in US Treasuries, though its holdings have declined significantly since 2013, by nearly $500 billion from $1.27 trillion.​
    • While reports in 2024 suggested that China was shifting from US Treasuries to gold and commodities to proactively manage the risk of sanctions or promote de-dollarization, the trend of reducing US Treasury holdings has been ongoing since 2013, with no significant acceleration recently. This reduction has also been partially offset by an increase in US Agency bond holdings and offshore treasury custodianship.​
    • The accumulation of US Treasuries followed the overall development of China’s trade surplus with the US. The central bank acquired US Treasuries as a stable investment and to keep the RMB exchange rate and export prices artificially low. Since 2018, as the trade imbalance has declined, the need to buy US Treasuries to manage the RMB exchange rate has naturally diminished.​
    • Since China holds only 2.9 percent of US Treasuries, a sudden sale by China would likely not disrupt U.S. debt financing, as the Federal Reserve could absorb the securities, and there is strong global demand for U.S. Treasuries due to the dollar’s role as the dominant international reserve currency.​
    • Even if the sale of US securities led to a depreciation of the dollar, this would, in turn, negatively impact China’s exports to the US. Moreover, if China were to sell them all at once, this would lower their price, resulting in a loss for China. ​
    • China’s large assets in the US and the Western bloc make it vulnerable to US sanctions. China could be cut off from refinancing through the dollar system, and its foreign assets could be frozen. Sanctioning banks involved in non-dollar transactions could further limit China’s financing options.​

    Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.

    News

    TSMC: Semiconductor found in Huawei product despite embargo

    The Taiwanese chip manufacturer TSMC has notified the US authorities about a circumvention of the embargo on computer chips. The complaint was triggered by the discovery of a TSMC semiconductor in a device from the Chinese company Huawei. The component had been found in a Huawei product after tech research firm TechInsights took apart the product. The company then contacted the US authorities.

    TSMC emphasized that it had not supplied Huawei since mid-September 2020 due to US export restrictions. The company said it is not aware of any investigations against TSMC. TSMC shares listed in the US nevertheless fell by up to 2.4 percent. The Commerce Department said in a statement that it is “aware of reporting alleging potential violations of US export controls” but cannot comment on whether any investigation is ongoing.

    The Financial Times and The Information initially reported on US investigations into Huawei and TSMC. The US embargo covers, among other things, modern semiconductor components needed for the training and operation of artificial intelligence (AI).

    • Mikrochips

    Shein: How the fast fashion platform wants to become more sustainable in Germany

    The Chinese online fashion giant Shein now offers German customers the option of selling second-hand clothing from its own production. The used Shein products can be bought and sold directly via the app from Tuesday, the company announced. The platform, called Shein Exchange, is already available to users in the USA, the UK, and France. According to the company, 4.2 million users registered on the US platform last year. Shein, like the online shop Temu, has been criticized for the massive number of individual fast-fashion products that are sold via the associated app, often at very low prices. Criticism has also been leveled at the working conditions under which the clothing is produced. ari

    • E-commerce

    Bishop appointment: Why the Vatican extends its secret agreement with China

    China and the Vatican have extended their agreement on the appointment of Catholic bishops, the two parties announced on Tuesday. The four-year extension, as opposed to the previous two years, is seen as a sign of improving relations. The Vatican signed the controversial agreement in 2018, which gives Beijing influence over who Pope Francis appoints as bishops in the country.

    Critics saw it as a moral surrender to the communist regime. The exact details of the agreement were never made public. In a speech at the end of a trip to Southeast Asia and Oceania last month, Francis said that the results of the 2018 agreement were “good.”

    Around 40 million Christians officially live in China. Many more practice their faith underground, and there are frequent arrests. The Vatican recognizes Taiwan diplomatically and has not maintained diplomatic relations with Beijing since 1951. rtr/mcl

    • Religion

    Despite stimulus: Why the IMF lowers its growth forecast for China

    The International Monetary Fund (IMF) has lowered its growth rate for China. The financial organization announced in Washington on Tuesday that it expects the People’s Republic to grow by 4.8 percent this year, 0.2 percentage points less than previously. For 2025, the IMF expects a growth rate of 4.5 percent.

    This outlook does not take into account the effects of the economic measures recently announced by the Chinese central bank, which have not been specified yet. IMF chief economist Pierre-Olivier Gourinchas explained that recent announcements would not be enough to boost growth significantly. He added that the boost from net exports would partially offset the continuing weakness of the property sector and low consumer confidence.

    Overall, the IMF expects global growth of 3.2 percent in both 2024 and 2025. The global growth drivers continue to be India, China and the USA. The biggest problem for the global economy recently has been high inflation. There have been signs of a noticeable easing here, but not everywhere. rtr

    • IWF

    Executive Moves

    Pam Kaur becomes the first female Chief Financial Officer at HSBC Holdings. Kaur was previously Chief Risk and Compliance Officer at the Hong Kong bank. HSBC Holdings also announced a restructuring of the business. Hong Kong is a “strategic priority.”

    Jasmine Jia has joined Deutsche Bank’s China Macro Sales division in Hong Kong. The finance specialist previously worked at BNP Paribas in Paris and Crédit Agricole CIB in Shanghai.

    Is something changing in your organization? Let us know at heads@table.media!

    Dessert

    Katzen im Katzencafé Gudaomaone in der Xiaojuer Hutong im Stadtteil Nanluoguxiang in Peking, der Hauptstadt Chinas, am 19. Juni 2023.

    Animal help wanted! Pet cafés, where guests can spend time with dogs, cats or even more exotic animals, are big business in China. Some café owners now take the opportunity to accept applications from furry four-legged friends, as CNN writes. This is popular with people who want to put their pets to work. “Earn snack money” (zhengmao tiaoqian) is the name of the trend on Xiaohongshu, China’s version of Instagram. And what do animal employees earn? One job listing offers a 30 percent discount for pet owners. Another café owner offers a starting salary of five cans of cat food “after tax” – of course.

    China.Table editorial team

    CHINA.TABLE EDITORIAL OFFICE

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