TikTok Possibly Planning Layoffs
Well-known Chinese news site Sohu (NASDAQ: SOHU) recently published an article saying that “informed sources” have said TikTok is planning large-scale layoffs. Specifically, TikTok’s global user operations department is facing dissolution. “A large part” of the department’s 1,000 employees will be affected by the layoffs, and the remaining employees will be reallocated to content, products, marketing, and security departments. The reasons for these potential layoffs, as well as the specific number of employees to be let go, are currently unclear. TikTok has not yet responded to requests for comment.
Some employees already received termination notices as early as the evening of May 21. TikTok has rarely conducted large-scale layoffs in the past. The move is indicative of the company’s strategy in the face of huge pressures — it intends to cut operating costs and seek long-term strategic changes.
On April 23, the U.S. House of Representatives passed a bill requiring the TikTok platform to divest from its Chinese parent company ByteDance before a nine-month deadline. Failure to comply with this requirement will result in TikTok being banned from operating in the United States. The bill has been signed into law by President Biden. TikTok responded by calling the new law unconstitutional and filing a lawsuit in early May.
TikTok’s performance in the field of non-game applications was outstanding in 2023, with its in-app purchase revenue reaching US$4 billion, ranking first among non-game applications. TikTok’s lifetime cumulative revenue has exceeded the US$10 billion mark, with 80 percent of its revenue coming from the U.S. market.
Source: Sohu, May 23, 2024
https://m.sohu.com/a/780971157_656058
Lianhe Zaobao: China Considers Raising Tariffs on U.S. and European Cars
Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, according to the European Chamber of Commerce in China, China may be considering raising temporary tariffs on imported cars from the United States and the European Union to up to 25 percent. This potential move would have implications for European and U.S. automakers. This news comes after the Biden administration increased tariffs on Chinese electric vehicles to 100 percent, and the EU is investigating the unfair advantages that Chinese automakers receive due to government subsidies.
Liu Bin, chief expert at the China Automotive Technology and Research Center, said in an interview that, according to World Trade Organization rules, China’s temporary tariff rate on imported cars can be raised to a maximum of 25 percent. The Chinese government tariff adjustments may cover imported gasoline cars and sports utility vehicles with engine displacements greater than 2.5 liters.
Amid price wars and a slowdown in China’s domestic economy, Chinese EV makers are expanding overseas, prompting accusations from the U.S. and EU countries that China is exporting excess EV production capacity. China’s auto exports have also raised Western concerns regarding the cybersecurity of China’s high-tech cars. In 2023, China imported 250,000 cars with engine displacements greater than 2.5 liters, accounting for approximately 32 percent of all imported cars. By comparison, China exported 1.55 million electric vehicles last year, according to Chinese customs data.
Source: Lianhe Zaobao, May 22, 2024
https://www.kzaobao.com/cngov/2024-05/22162313.html
Guangming Daily: The Importance of Training Legal Talents in Foreign Security Law
Chinese newspaper Guangming Daily recently published an article on the importance of training Chinese talent in foreign security law. The below is a partial translation of the article.
Foreign security (the security in other countries of the assets of a nation or of that nation’s companies) plays a vital role in [China’s] overall national security framework. With the increasing frequency of Chinese enterprises investing overseas, China possesses more and more assets abroad. Facing the turbulent international situation, we need to use legal tools to protect our country’s overseas interests. At the same time, certain Western countries have frequently imposed sanctions and caused interference, strengthened “export controls,” and promoted “decoupling” through a series of bills related to Taiwan, Hong Kong, and Xinjiang. This has challenged the bottom line of our national security and sovereignty.
Thus, the training of legal talents in foreign security law is critical.
Regarding the content of training, we need to enhance the ability to apply international rules. Through globalized curriculum teaching, academic exchanges abroad, etc., students should develop an international perspective and global strategic thinking. They should enhance their ability to propose valuable countermeasure suggestions regarding global security issues and foreign security affairs. We need to get our foreign security legal talents to actively participate in global governance as well as in the formulation of international rules via international organizations.
Regarding the training path, on the one hand, we need to cooperate on joint practical education platforms with international organizations, overseas institutions and companies, multinational corporations, foreign law firms, arbitration institutions, etc. We need to jointly develop core courses, and compile high-quality teaching materials. On the other hand, we need to accelerate the “bringing-in” of top-notch faculty from overseas and at the same time create opportunities to send more of our outstanding students abroad.
Source: Guangming Daily, May 11, 2024
https://news.gmw.cn/2024-05/11/content_37315947.htm
China Reports Technology Breakthrough on Communication Within Drone Swarms
People’s Daily recently reported on a technological advancement in using light (rather than wireless communication) to convey information among drones within a drone swarm.
To achieve efficient collaborative work, drones in a cluster (or swarm) need to be able to “communicate” closely. However, current drone swarms rely mainly on wireless communication, which has obvious electromagnetic characteristics. This makes drone swarms easy to identify and susceptible to electromagnetic interference.
A research team at the Northwestern Polytechnical University reported a technological breakthrough by imitating the communication method of fireflies. They utilized lighting equipment on one drone to emit light signals and employed photodetectors on another drone to capture these signals and perform intelligent analysis. This enables collaborative flight among drones. The transmission of light signals is not affected by electromagnetic interference. Additionally, the energy requirement to emit light is low and generates almost no heat, making it suitable for small drones that have limited amounts of energy.
Source: People’s Daily, May 15, 2024
http://finance.people.com.cn/n1/2024/0515/c1004-40236280.html
PLA Social Media Photo Reveals Taiwan Invasion Training Tactic
A photo posted on Weibo by the Eastern Theater Command of the People’s Liberation Army (PLA) began circulating on the Internet around March 23rd. The photo showed the reunion of the 12 PLA model units of after a 60-year hiatus. A sharp-eyed netizen found that, in one corner of the photo, there was a sign for a “Juguang Taekwondo Gym (莒光跆拳道館).” It was a training site set at the “Gaolinshan Tactical Training Base” of the 72nd Group Army of the PLA in Jurong, Jiangsu Province. This site completely simulates Taiwan’s “Shangtian Juguang Taekwondo Gym” at No. 18, Section 4, Yangxin Road, Yangmei, Taoyuan. It reveals that the PLA has been conducting exercises with its elite forces to launch a surprise attack on Taiwan, occupying key areas in the Yangmei area for urban warfare and blocking the northward advancement of the Hukou armored division.
The Shangtian Juguang Taekwondo Gym is located at the intersection of County Road 115 and Township Road 81, controlling the bridge over the Shizi River. Less than 700 meters to the west, within the range of a machine gun, is the intersection of Provincial Highway 31 and County Road 115, with Provincial Highway 31 being a vital road built along the high-speed rail that connects Taoyuan and Hsinchu. It is also the critical route for tanks and armored vehicles heading north.
About 4 kilometers east of the gym, across the Yangmei urban area, there is an abandoned mountaintop camp. Retired General Li Zhengjie explained that occupying this high point would cut off National Highway 1, which is 1 kilometer further east. Following this pattern, the PLA’s intention seems to be to set up defense lines along County Road 114 and County Road 115, cutting off all traffic arteries from Yong’an Fishing Port to National Highway 3.
On the southern front is the Shizi River; by guarding the bridges across the Shizi River, the PLA could block the northward support of the Hukou armored brigade to Taoyuan Airport.
Source: Up Media (Taiwan), March 26, 2024
Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?
{Editor’s Note: Wu Guoguang is presently a Senior Research Scholar at Stanford University, affiliated with the Stanford Center on China’s Economy and Institutions (SCCEI). Continue reading
China to Boost Zimbabwe’s Railway, Targeting Commodities Export Capacity
Sputnik News reported that Zimbabwe plans to modernize its state-owned railways with China’s experience and financial support. Before the end of June, both sides will assess the railway transportation needs and reach a consensus on the engineering workload required for reconstruction. China Railway recently signed an MOU with Zimbabwe to conduct a feasibility study on the project within this timeframe.
China’s assistance will bring Zimbabwe increased opportunities to enter the global commodity market, and infrastructure cooperation between China and Zimbabwe will undoubtedly have an impact on the economies of other African countries as well.
Zimbabwe estimates that the total railway reconstruction cost will be around $533 million, and it hopes to receive funding support from China. Zimbabwe has been unable to borrow from multilateral lending institutions due to its over 20 years of debt; the country’s external debt had reached $12.7 billion by September 2023. China recently wrote off Zimbabwe’s interest-free loans but did not disclose the amount, while still promising to help Zimbabwe find a way out of its long-standing debt crisis.
According to experts cited by Sputnik News, modernizing Zimbabwe’s railways will create favorable conditions for exporting Zimbabwe’s abundant lithium, coal, chrome, granite and other resources to world markets by enhancing the carrying capacity and speed of the nearest ports on the Atlantic and Indian Oceans. The planned joint project “is an extremely reasonable and forward-looking move within the framework of China’s ‘railway diplomacy.'”
The project is expected to facilitate China-Zimbabwe mineral resource cooperation and bilateral trade. With improved infrastructure and logistics efficiency, it will attract more Chinese investment in Zimbabwe across various sectors and promote higher-quality Belt and Road cooperation between the two countries.
Source: Sputnik News, May 21, 2024
https://sputniknews.cn/20240521/1059242414.html
China’s Sovereign Wealth Fund Targets Japanese Small and Medium Enterprises and Services
China’s sovereign wealth fund, China Investment Corporation (CIC), with assets totaling $1.2399 trillion, is targeting Japan’s small- and medium-sized enterprises. The plan is to allow Japanese companies with high-quality services and undervalued corporate value to thrive in China’s massive consumer market. While information disclosed is limited, this move by Beijing could trigger discussions in Japan and abroad around economic security.
In Shenzhen, the Japanese massage parlor “KA·RA·DAfactory” has attracted many Chinese customers seeking out high-quality Japanese services. Priced at 688 yuan for 60 minutes, about 1.7 times higher than in Japan, the parlor requires around 100 hours of training for its therapists to provide consistent, high-quality services. Japanese quality services, honed in years of deflation, are now praised even in the birthplace of massage – China. In the first year since the parlor’s March 2023 opening, around 60% of customers have become regulars, including many customers from Hong Kong who were attracted by the Japanese brand. The company operating the massage parlor is Factory Japan Group, which was 100% acquired by CIC’s Japan-China investment fund in 2022 in partnership with the Nomura and Daiwa Securities groups. Factory Japan Group plans to expand through franchising in China, targeting 53 outlets by 2026 leveraging CIC’s huge influence.
CIC’s Japan fund primarily targets unlisted medium and small enterprises, or businesses that can increase value through joint Chinese-Japanese operations. In April, CIC invested in a Japanese language education institute catering to students aspiring to study in Japan.
Since 2017, CIC has launched overseas funds in collaboration with top financial institutions from the US, UK, Japan, Italy, France and Germany. By 2022-end, they had invested in over 20 companies in advanced manufacturing, healthcare, financial services and consumer sectors.
CIC views Japan’s unlisted medium and small enterprises as highly valuable acquisitions. However, Chinese investments could pose economic security risks for Japan. M&A deals with China as the buyer peaked around 2016 at around 20 annually.
As China enhances sanctions against advanced manufacturing like semiconductors, and as its market matures demanding quality goods and services, Japanese service and manufacturing sectors may become prime acquisition targets.
While CIC has an international advisory board displaying transparency, information on specific investments is limited. Improved transparency and accountability are crucial for CIC’s global acceptance as a trusted investor.
Source: Nikkei, May 15, 2024
https://zh.cn.nikkei.com/china/ccompany/55562-2024-05-16-05-00-14.html