Collision between Chinese ships expected to escalate tension in South China Sea

More tension is expected in the South China Sea following a collision between two Chinese vessels, with analysts predicting the incident was likely to prompt Beijing to further increase its presence in the contested waterway. Experts also warned that the incident could push China to enhance coordination between its navy and coastguard to prevent similar accidents in future. On Monday, Manila claimed that a China Coast Guard vessel sustained severe damage to its bow after colliding with a larger… South China Morning Post

China seeks to bolster demand by subsidising interest costs on consumer loans

China has launched a year-long plan to offer interest subsidies for personal consumer loans as part of Beijing’s broader efforts to unlock household spending power and shore up domestic demand. Advertisement Individuals who take out consumer loans for purchases – including single transactions below 50,000 yuan (US$6,958) and higher amounts for purchases in key sectors such as cars and education – will have part of their interest costs covered by the government, according to the plan released on Tuesday by the Ministry of Finance, the People’s Bank of China and…

China’s crackdown on lavish civil servant perks will ‘harm’ the economy, experts warn

Updated regulations ban the country’s 40 million civil servants from lavish banquets, and restrict them from overseas travel for ‘personal leisure’ Adjacent to a municipal government building in Beijing, a normally bustling restaurant is now eerily quiet, at lunchtime most of its seats are empty. The recent crackdown on civil servants frequenting restaurants – part of a government austerity drive intended to crack down on corruption – has likely affected business and caused liquor sales to plummet, admits one waitress who works in the opulent establishment. Continue reading… The Guardian

Chinese researchers seek electronic warfare lessons from Ukraine jamming

When Russia invaded Ukraine in February 2022 satellite navigation signals were one of its first targets. The jamming started with civilian navigation systems, but within less than two weeks, military bands had been targeted as well. All satellite navigation systems in the war zone, including the US GPS system, the European Union’s Galileo, China’s Beidou and even Russia’s own Glonass, fell victim. Western powers, led by the United States, immediately launched a counter-jamming mission to stall… South China Morning Post

US annual review of China’s human rights record is shorter but remains critical

The US State Department’s annual review of China’s human rights record, released on Tuesday, was pared back as part of a broader restructuring of its country reports but still retained many of its most politically sensitive criticisms of Beijing’s conduct. “Genocide and crimes against humanity occurred during the year in China against predominantly Muslim Uygurs and members of other ethnic and religious minority groups in Xinjiang,” the report said in its executive summary. The China assessment,… South China Morning Post

Tibet mega dam is China’s chance to build confidence with India

China’s mega dam construction on the Yarlung Tsangpo (Brahmaputra) River uncovers the vulnerabilities of transboundary water mechanisms. With India suspending the Indus Waters Treaty with Pakistan and being in the process of reconsidering the Ganges Water Sharing Treaty with Bangladesh, water politics is getting more complicated day by day. This turn of events has cast doubt on the future of regional cooperation in South Asia. Even though the mega dam is China’s most ambitious hydropower project… South China Morning Post

How scared should you be of “the China squeeze”?

“CHINA BEATS you with trade, Russia beats you with war,” mused President Donald Trump on August 11th. His reflection came mere hours before he extended a fragile trade truce with China for another 90 days. After months of tit-for-tat tariffs, the Sino-American trade war has settled into uneasy stasis. But China is using the time to hone a sophisticated arsenal of devastating economic weaponry. Even as the sides contemplate a broader deal to stabilise the planet’s most important trading relationship—worth $659bn each year—China knows that its power is not in…

Paraguay eyes Chinese parts assembly plan amid US tariff war with China, Brazil

Paraguayan lawmakers on Tuesday heard government ministers outline a proposed assembly law that would allow companies to manufacture electronic and digital goods locally using imported parts, many from China, as political debate grows over whether the country should end diplomatic ties with Taiwan in favour of Beijing. Economy Minister Carlos Fernandez Valdovinos and Industry and Commerce Minister Javier Gimenez told a Senate hearing the measure would let businesses that currently import fully… South China Morning Post

A China-led global system alongside that of the US is Xi Jinping’s ultimate aim | Letters

For over a decade, China has been building an alternative to the US-led order, notes Andrew J Sinclair I enjoyed reading George Magnus’s article (Why Peak China may finally have arrived, 11 August). However, focusing on peak economic growth misses the bigger picture and underestimates China in ways that could weaken western policy responses. China’s central goal is national power, and we are far from its peak national power. The Chinese economic miracle has taken place under the US-led global system. China built factories along its coast, filled container ships,…