Workers at new coal-to-ethanol plant in Yulin [Yulin Net]
Geopolitics
Presidents Joko Widodo and Xi Jinping meet in Beijing and pledge to increase trade and cooperation between Indonesia and China
Bilateral trade (US$124.34 billion) jumped 58.4% year-on-year in 2021 and China has been Indonesia’s largest trading partner for nine years; important supplier of coal, copper, natural gas, and ferronickel to China, Indonesia is set to become a regional vaccine production center with Chinese support
China’s SMIC has been producing 7nm chips since last year despite US sanctions, according to experts
This represents a significant advance in Chinese chip production, but SMIC – which earned US$5.44 billion in 2021 – still lacks more advanced technology comparable to TSMC and Samsung; to reduce its dependence on imports, China will build 31 large chip factories and produce ⅔ of its demand by 2025
National Politics
Ride-hailing giant Didi fined US$1.2 billion for 16 counts of data security breaches, including illegally collecting driver and passenger information
Data collected without user consent includes facial recognition, age, and occupation; fine comes at the end of the first cyber security review in the country, and regulators aim to standardize criteria for all platform and internet companies
China releases new data rules for ride-hailing platforms, latest in a series of regulations to protect user information
Data generated by these companies must be stored on a government-controlled platform, cannot be used for commercial purposes nor exported to outside entities without regulatory approval; companies will also be required to conduct periodic data security inspections
Economy
US bonds held by China fall below US$1 trillion (US$980.8 billion), for the first time in 12 years
US-China tensions over trade, technology, and Russia, plus the highest US inflation rate in 40 years (9.1%), have contributed to the Chinese move in the market; US Treasury bonds now account for 31.4% of China’s foreign exchange reserves (US$3.07 trillion)
China creates US$3 billion state iron ore giant to strengthen its position in global trade in the sector
China Mineral Resources Group will act as a centralized purchasing platform for state-owned steel mills and traders, unifying negotiations with suppliers and increasing their bargaining power; in 2021, China bought almost 70% of the world’s iron ore exports, worth US$180 billion
Agriculture and Environment
China will start production of the world’s largest coal-to-ethanol plant, with capacity to process 1.5 million tons per year
Breakthrough will allow China to reduce dependence on grain or sugarcane to produce biofuels and imported oil; technology used is similar to that developed in the country’s first plant in 2017
China approved projects that will increase its annual coal production capacity by 125 million tons, in the first half-year
Plan aims to add 300 million tons of coal production capacity this year to ensure energy security; experts explain that the decision is tactical and rule out an expansion in the sector in the long-term, prioritizing renewable energy
People’s Life and Culture
8,870 people died in work-related accidents in the first half-year across China, many in illegal construction and mining activities
Relatively large accidents – resulting in three to ten deaths – have been on the rise, prompting authorities to increase safety checks and crackdown on corruption; Changsha building collapse killed 53 people due to unauthorized construction earlier this year
China National Archives of Publications and Culture launched, becoming a “seed bank” for preserving ancient and modern Chinese publications
After three-year construction, Beijing headquarters and three branches in Hangzhou, Xi’an, and Guangzhou opens, integrating exhibition halls, libraries, archives, museums, and other archives; Hangzhou branch focuses on academic publications and received one million texts, including The Communist Manifesto
A wood block print of Usnisa Vijaya Dharani Sutra dating to the Tang Dynasty (618-907) [VCG via Global Times]
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