Inauguration invitation to Xi shows Trump’s deal-making in action

By Khushboo Razdan

No Chinese head of state has ever attended a presidential inauguration in the United States. Chinese President Xi Jinping is unlikely to change that when Donald Trump is sworn in as the US’ 47th president on January 20.

However, Trump has made what some experts have hailed as a “brilliant tactical move” by extending an invitation to Xi to attend the event.

If the meeting takes place, it would give Trump a chance to discuss key bilateral issues and set the stage for a potential deal between the world’s two largest economies which are standing on the brink of a widening trade war. Even if Xi sends a representative in his place, it would still open new and crucial channels of communication.

Trump’s diplomatic overture marks a departure from decades of US policy, which has long refrained from inviting foreign leaders to presidential inaugurations. The gesture signals that the incoming administration, and Trump in particular, views China as a top priority. It reflects Trump’s desire to build on his personal relationship with Xi.

His recent actions and somewhat cryptic messaging on China indicate he is interested in working out an agreeable deal with Beijing and wants to leave a door open for bargains as any seasoned businessman would.

Over the weekend, I reached out to Denis Simon, a distinguished China scholar and non-resident fellow at the Quincy Institute in Washington, to help me understand why Trump invited Xi.

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Foreign investors gain new collateral options for China bond trades in January

By Aileen Chuang

Foreign investors can pledge their holdings of China government bonds and policy bank bonds as collateral for Northbound Swap Connect trades beginning on January 13 in a move that enhances their capital efficiency and promotes yuan internationalisation, bourse operator Hong Kong Exchanges and Clearing (HKEX) said on Monday.

HKEX’s clearing subsidiary, OTC Clearing Hong Kong, will allow the new forms of collateral to cover initial margin requirements in the connect scheme, which allows global investors to access mainland China’s interbank financial derivatives market to hedge interest-rate risks. That is an expansion from the current list of collateral, which is mostly cash and certain offshore securities.

The move “provides greater flexibility to international investors and [enhances] their capital efficiency”, HKEX said in a statement. “It will also help vitalise international investors’ bond holdings in the China Interbank Bond Market, promoting the internationalisation of the [yuan].”

The latest announcement added an official launch date after financial authorities in Hong Kong and mainland China discussed the inclusion for several months, most notably in July when Northbound Bond Connect trading turned seven years old.

Overseas investors’ holdings of onshore Chinese bonds reached 4.15 trillion yuan (US$570 billion) in November, marking the eighth consecutive month that the tally stayed above 4 trillion yuan despite a recent retreat due to a weaker yuan against the US dollar and tumbling long-term yields. Over half of their holdings were Chinese government bonds, followed by 23.6 per cent negotiable certificates of deposit and 21.7 per cent policy financial bonds, according to official data.

Swap Connect, launched in Hong Kong in May 2023, has supported global investors in hedging their Chinese bond risk via interest-rate swaps. Such derivative products are over-the-counter, bilateral contracts that allow bondholders to manage their risks by swapping one stream of future interest payments for another based on a specified principal amount.

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Taiwan’s new M1A2T tanks expected to boost defences against PLA amphibious tactics

By Lawrence Chung

Taiwan has received its first M1A2T Abrams tanks from the United States, which are expected to drastically improve the island’s ability to counter potential amphibious operations by the People’s Liberation Army (PLA).

A total of 38 of the armoured vehicles, known as the “world’s most powerful tanks”, arrived in Taipei on Sunday night and were transported early on Monday to the Army Armour Training Command in Hsinchu county, just south of Taipei, according to Taiwan’s defence ministry.

Photos and video clips released by the ministry on Monday showed the tanks, painted in green jungle camouflage, being transported on flatbed trailers under police and military escort. Traffic was managed along the route to ensure the convoy’s smooth passage.

In addition to the tanks, four M88A2 armoured recovery vehicles were delivered to support future training exercises.

The shipment of advanced weapons to Taiwan drew sharp criticism from Beijing, which has consistently urged Washington to halt military aid to the island.

“We urge the US to adhere to the one-China principle … and stop arming Taiwan or supporting and encouraging separatist forces attempting to achieve independence through military means,” mainland Chinese foreign ministry spokesman Lin Jian said on Monday.

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HKU study finds high blood sugar in diabetics weakens immunity by up to 40%

By Johnny Wan

High blood sugar in patients with type 2 diabetes weakens their immune response to respiratory viral infections, as the functionality of immunity cells can be reduced by as much as 40 per cent compared with healthy individuals, research by the University of Hong Kong (HKU) has found.

Researchers from the LKS Faculty of Medicine at HKU, examined 40 blood samples from type 2 diabetes patients at Queen Mary Hospital in 2022 and 2023. The samples were divided into two groups: patients with poor blood glucose control and patients with well-controlled blood glucose. A control group of healthy individuals was also included.

According to the findings, published in the Cell Metabolism journal early this month, revealed that Th1 cells, which play a crucial role in initiating the inflammatory response needed to combat infections, showed a 40 per cent reduction in functionality in patients with poor blood glucose control. This deficiency increased their vulnerability to respiratory viral infections.

Heidi Ling Guang-sheng, assistant professor at the School of Biomedical Sciences at HKU, said the research highlighted the importance of maintaining good blood glucose level in type 2 diabetes patients.

“We can see that if the patients control the blood glucose well, their Th1 cells functionality would be the same as a healthy person. Which means there is no fear of losing immunity even if you have diabetes,” he said.

Dr Paul Lee Chi-ho, clinical associate professor at the School of Clinical Medicine at HKU, said previous research found the risk of Covid-19-related deaths in infected patients was 10 times higher among type 2 diabetes patients with poorly controlled blood glucose compared with those with well-controlled levels.

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Hong Kong to ramp up crackdown on fire hazards in high-risk old buildings

By Jess Ma

Hong Kong’s Fire Services Department will ramp up its crackdown on hazards in old mixed-use buildings deemed high risk, following the issuing of more than 8,500 safety warnings for the properties between April and November.

Wong Yuk-ping, the department’s acting deputy chief fire officer in building improvement, said on Monday a special team would be set up to carry out the work next year.

“The special duties team will compile our data for a list of old composite buildings deemed high risk for our inspection list. We will then conduct checks targeting these high-risk buildings,” Wong said.

The group will set priorities for inspecting old buildings and conduct ad hoc checks, continuing the efforts of a special enforcement operation in the wake of April’s fatal New Lucky House blaze in Yau Ma Tei.

Wong said data from this year’s inspections showed that “three-nil” buildings and old properties with multiple stairways posed greater fire safety risks regarding escape paths and doors. Stairways that were not frequently used were often blocked in such cases.

He added the new special duties team would focus on such buildings for ad hoc checks next year.

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Managing authority of Hong Kong’s West Kowloon arts hub creates subsidiary

By Ambrose Li

The managing authority of Hong Kong’s art hub, the West Kowloon Cultural District, has opened a subsidiary to “drive commercialisation and explore new revenue sources” as it seeks financial sustainability following an earlier crisis.

The incorporation of WestK Enterprise Limited (WKEL), wholly owned by the authority, was announced on Monday, with appointments of board members having taken effect on November 21.

“As part of the strategies to enhance the long-term financial sustainability of [the authority], [the board of the authority] has approved the establishment of WKEL to drive commercialisation and explore new revenue sources, leveraging the authority’s assets, resources and expertise,” a statement read.

Wendy Gan Kim-see, the managing authority’s deputy CEO of development, was appointed chief executive of WKEL to spearhead the new vehicle and is responsible for mapping out its business strategies and commercialisation initiatives.

The WKEL board is composed of chairman Bernard Charnwut, two members, Paulo Pong Kin-yee and Allan Zeman, and two ex officio members – Gan and the managing authority’s CEO Betty Fung Ching Suk-yee.

In October, the authority reported its operating deficit had narrowed by 20 per cent year on year to HK$578 million in the financial year ending March 31, 2024, aided by a 42 per cent year-on-year growth in revenue to HK$1.06 billion.

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HK$923,700 raised in charity sale of over 1,000 panda sculptures in Hong Kong

By Oscar Liu

A thousand giant panda sculptures and 10 special-edition bears have been sold in Hong Kong for HK$923,700 (US$118,800) in an auction, with the organiser donating all proceeds to Ocean Park to fund conservation efforts.

The 1,000 sculptures were among 2,500 displayed by local art studio AllRightsReserved as part of its “Panda Go! Fest HK” pop-up exhibition on Monday, with small ones going at HK$350 and large ones at HK$550.

AllRightsReserved said the 1,000 sculptures were snapped up in just over an hour – more quickly than expected – and raised HK$518,300.

An auction of another 10 special-edition bears by 10 designers took place last Friday, and raised a total of HK$405,400, with each artwork going for HK$3,000.

“Molly Panda” by renowned local artist Kenny Wong went for HK$102,800, the highest amount, followed by “Monster Panda” by Kasing Lung, which sold for HK$82,000. Lung is the creator of the popular Labubu doll.

“Aura Bearer”, by American musician and fashion designer Pharrell Williams, was auctioned for HK$60,000.

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Hong Kong man dies after fire breaks out in flat

By Danny Mok

A middle-aged Hong Kong man has died after a fire suspected to have been caused by an air conditioner broke out in his flat in the New Territories.

The fire at Yan King House in Fanling’s King Shing Court was reported at about 2.40pm on Monday, authorities said. Alarmed residents called emergency services for help.

Firefighters arrived at the scene, deployed a water jet and dispatched a breathing apparatus team. They put out the fire at about 3pm.

They pulled the man, who was in his 50s, from the flat unconscious. He reportedly sustained severe burns and was rushed to North District Hospital in Sheung Shui but was pronounced dead at 4.33pm.

Investigators found nothing suspicious in an initial probe.

About 40 residents were evacuated from the building. The cause of the fire is under investigation.

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Indian drummer Zakir Hussain dies at 73

By Agence France-Presse

Indian musician Zakir Hussain, a four-time Grammy award winner credited with turning tabla drums into an instrument loved globally, has died at the age of 73, officials said on Monday.

Hussain collaborated with musicians including George Harrison from The Beatles, Mickey Hart from The Grateful Dead and jazz musician John Handy in a career spanning decades.

He died of a lung disease in the United States, local media reported, quoting a statement from his family.

Tributes poured in with fellow musician Amjad Ali Khan – who plays the Indian lutelike sarod – saying Hussain would “continue to bring the house down in the heavens”.

Indian Prime Minister Narendra Modi said he would be “remembered as a true genius who revolutionised the world of Indian classical music”.

Modi said he “brought the tabla to the global stage, captivating millions with his unparalleled rhythm”.

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Claws celebre: claw machine complaints spike as Hongkongers struggle to get a grip

By Wynna Wong

A claw machine enthusiast who received just a few trinkets instead of the waffle maker he had spent HK$500 securing is among the growing number of Hongkongers lodging complaints over the games.

The Consumer Council said on Monday the number of claw machine-related complaints had risen to 42 in the first 11 months of the year, well above the 16 in the whole of 2023.

Kenneth Chan Kin-nin, the watchdog’s publicity and community relations committee vice-chairman, said the customer in the waffle maker case spent 45 minutes playing on the machine to pick up one of the slips of paper inside. Each of the pieces of paper were marked with point values that could be used to collect rewards, while others offered “instant prizes”.

The man secured one of the “instant prize” slips, which he wanted to redeem for a waffle maker. But when he tried to collect the prize, staff simply handed him a gift box containing “nothing more than a few trinkets”, Chan said.

The customer, who had spent nearly HK$500 and refused the prize, had “extended discussions” with the machine operator via instant messaging. The operator offered alternative prizes, such as a chocolate fountain machine, but the pair failed to reach an agreement.

“From the complainant’s perspective, the instant prizes inside the claw machine were not numbered, and the terms and conditions regarding prize collection were nowhere to be seen around the machine,” Chan said.

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‘True artist’: China delivery worker plays flute between orders, praised for spreading joy

By Fran Lu

A delivery rider in China has inspired many after videos of him playing the flute during his deliveries went viral.

The delivery worker was frequently spotted on the streets of Shanghai, playing the flute while sitting on his electric bike in between orders or waiting at traffic lights.

Many praised his carefree spirit, likening him to ancient Chinese literati such as Li Bai, who often recited poetry spontaneously.

The man, Zhao Yue, in his 30s, has worked for China’s largest food delivery company, Meituan, for four years.

Zhao shared that he had been learning to play the traditional Chinese transverse flute from a teacher and through online tutorials for seven months. He picked up this hobby out of a deep interest in traditional Chinese culture and as a means to enrich his inner world.

He mentioned needing to practise for at least 90 minutes each day. He worked daily from 7am to 1.30pm and from 5pm to 8pm, so in addition to his leisure time, he utilised what he called “fragmented time” for practice.

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Malaysia and Thailand seek to revive border area with bridge and rail upgrade

By Joseph Sipalan

The prime ministers of Thailand and Malaysia agreed on Monday to build bridges, roads and rail links in an attempt to spur economic growth and revive communities living in their restive border zone.

For years, insurgents, drug traffickers and smugglers have carried out illegal activities in the forested areas at the border.

Malaysia has mediated talks between Thailand and the Malay-Muslim insurgents, who have fought a bloody 20-year rebellion seeking autonomy from the Thai state. Thailand colonised the southernmost provinces of Narathiwat, Yala and Pattani over a century ago, forcing the majority-Muslim population in the region to assimilate into the country.

Bangkok has asked Malaysia’s Prime Minister Anwar Ibrahim to revive the peace process through economic development of Thailand’s impoverished southern region, where many share close family and cultural ties with Malaysia’s northern states of Kelantan and Kedah.

Both countries have proposed building new roads, rail lines and bridges to help drive trade and tourism.

“We will do whatever is necessary for the dialogue process with the southern border provinces of Thailand to materialise, and to then resolve towards a joint comprehensive plan towards peace,” Anwar told a press conference in Putrajaya alongside his Thai counterpart Paetongtarn Shinawatra on Monday.

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Over 30 North Korean soldiers killed, wounded in Russia’s Kursk, says Ukraine

By Agence France-Presse

Ukraine said on Monday that its troops killed or wounded at least 30 North Korean soldiers who had been deployed by Russia to its western Kursk region, where Ukraine has seized territory.

Thousands of troops from North Korea have come to reinforce Russian forces, including in the Kursk border region where Russia has been clawing back territory after a surprise offensive from Ukrainian forces this summer.

“On December 14 and 15, army units from the Democratic People’s Republic of Korea (DPRK) suffered significant losses near the villages of Plekhovo, Vorozhba, Martynovka in the Kursk region of Russia – at least 30 soldiers were killed and wounded,” Ukraine’s military intelligence said.

The units are “being replenished with fresh personnel” from North Korea, which Western officials estimate has sent at least 10,000 soldiers to help Moscow.

Russia and North Korea have boosted their military ties since Moscow’s invasion.

Russia has begun deploying “a noticeable number” of North Koreans in assaults to push Ukrainian troops out of the Kursk region, Zelensky said on Saturday.

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South China Sea: why Philippines’ new legal case against Beijing may fall flat

By Sam Beltran

The Philippines is reportedly planning to file a new arbitration case before the United Nations regarding its maritime conflict with China, but analysts have questioned the necessity of the move, pointing to existing issues in a 2016 ruling that Beijing rejected.

They argue that Manila should have taken immediate steps to clearly define boundaries after its tribunal victory, instead of letting Beijing set the terms in the disputed South China Sea.

Andres Centino, the Presidential Assistant on Maritime Concerns, was quoted in a Financial Times report last week saying the Philippines was preparing a new arbitration case against China over alleged violations of international maritime law.

Tensions between Manila and Beijing have increased in the past year, with the emergence of new flashpoints in the South China Sea and several clashes between Philippine servicemen and Chinese coastguard personnel, including an incident in June where a Filipino sailor lost a thumb.

In November, Manila’s Defence Secretary Gilberto Teodoro said China was “stepping up pressure on the Philippines to concede its sovereign rights in the South China Sea”, adding that his country was a “victim of Chinese aggression”.

Teodoro’s statement came after Beijing’s foreign ministry published baselines around the contested Scarborough Shoal, shortly after Philippine President Ferdinand Marcos, Jnr signed two maritime laws defining the country’s maritime zones and sea lanes.

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