Shenzhen showers AI companies, workers with cash to boost local industry

By Yi Luo

Shenzhen’s government has issued a long list of subsidies to support artificial intelligence (AI) development in the city in a fresh sign of how local Chinese authorities are pulling out all the stops to support the growth of the industry.

According to measures published by the Industry and Information Technology Bureau of Shenzhen on Wednesday, the government will earmark 500 million yuan (US$68.6 million) to help AI firms to rent computing resources, with each company eligible for up to 10 million yuan worth of subsidies, and another 50 million yuan available for buying “training data”.

The southern tech hub will also set aside 300 million yuan each year to support AI-related research. Subsidies for fundamental research reach up to 10 million yuan per project, and the ceiling can be raised to 30 million yuan for projects with key “breakthroughs”, according to the policy.

While the subsidies are small compared with the investments from private US firms that dominate the AI industry, the promises of financial support from the Shenzhen government are a show of China’s commitment to local industry players. These measures will be effective for two years starting from next Wednesday.

A maximum of 2 million yuan is also available to Shenzhen-based businesses procuring generative AI models registered with the Cyberspace Administration of China, and another allocation of up to 100 million yuan will be designated for AI applications in key industries.

Projects applying AI in high-end manufacturing, modern services, and scientific research can receive as much as 2 million yuan as well. For benchmark projects demonstrating a leading role in their fields, subsidies could reach up to 10 million yuan.

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Foreign tourist arrivals to China suddenly surge as visa relaxations fuel travel searches

By Ralph Jennings

Within minutes of China announcing its latest relaxation of visa rules for foreign travellers this week, searches on travel platform Trip.com skyrocketed.

The travel service provider said its North American site saw a 163 per cent surge in the first half-hour, while searches on its European site were up 85 per cent. Inquiries from Canada, France and Russia led the pack.

Tuesday’s decision by Beijing to extend visa-free transit to 10 days – up from only three to six days – for passport holders of 54 nations came just weeks after clearing citizens of 38 countries to enter visa-free for up to a month.

Tourism to China from the countries eligible for visa-free transit has grown by 189 per cent this year over 2023, according to Trip.com data.

The relaxation of entry restrictions have followed Beijing’s push to attract more foreign tourists and investors since the country lifted its pandemic travel restrictions and reopened borders in January 2023. President Xi Jinping has also called for “building national strength in tourism” and increasing people-to-people exchanges, including with the US.

China’s abundant tourist attractions, cultural heritage, relatively low prices and new visa-free arrival arrangements have been enticing foreigner travellers this month – a time of the year when school holidays in parts of Asia normally lead to an increase in travel anyway.

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Aukus, other China-related priorities likely to survive Trump, top US envoy says

By Robert Delaney

The US State Department’s top official on the Indo-Pacific said Thursday that technology trade restrictions and military deterrence aimed at China should be the most likely area of policy continuity with the incoming administration of president-elect Donald Trump.

Briefing reporters in Washington following the “recent” arrival of the transition team to the department, Deputy Secretary of State Kurt Campbell said he expected Senator Marco Rubio, Trump’s selection for secretary of state, to keep many of US President Joe Biden’s Indo-Pacific initiatives largely intact.

Those initiatives, he said, would likely include the security pact comprising the US, Britain and Australia, known as Aukus, which was established in 2021.

“There will be inevitable areas where the Trump administration will seek to do things differently, but I would also posit there will be areas of continuity, [and] I think we will see more areas of continuity in the Indo-Pacific than perhaps in some other regional areas,” Campbell said.

“There is a deep interest in every element of the bilateral relationship between the United States and China,” he added.

“There have been questions around our technology policy, steps that we’ve taken to enhance our deterrent capabilities across the Indo-Pacific, military deployments, interest in the kind of bilateral engagements that we’ve had in the recent past and the kind of recurring venues of engagement between Beijing and Washington.

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US Republicans craft new deal to avert shutdown after Trump sinks previous one

By Reuters

Republicans in the US Congress said on Thursday they had crafted a new spending package to avert a looming government shutdown after president-elect Donald Trump scuttled a prior bipartisan deal.

“There’s an agreement,” Republican congressman Tom Cole, who chairs a committee that oversees spending, told reporters.

Details were not immediately available, and it was not clear whether it would get enough support from Republicans and Democrats to pass Congress before funding expires at midnight on Friday.

It also was not clear whether it would win Trump’s backing. The incoming US president has demanded that lawmakers tie up loose ends before he takes office on January 20 and has called on them to abolish the nation’s debt ceiling.

Unless a deal passes the Republican-controlled House of Representatives and Democratic-majority Senate, the US government will begin a partial shutdown on Saturday that would interrupt funding for everything from border enforcement to law enforcement in the days leading up to Christmas and cut off pay cheques for more than 2 million federal workers.

The US Transportation Security Administration warned that travellers could face long lines at airports.

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US investigates China’s TP-Link, maker of Wi-fi routers, after cyberattacks

By Khushboo Razdan

An influential US lawmaker on Thursday welcomed reports that President Joe Biden’s administration was investigating TP-Link, a Chinese network equipment manufacturer that controls more than 60 per cent of the American Wi-fi router market.

“The recently announced federal investigations into this company are a step in the right direction,” said Representative John Moolenaar, a Republican from Michigan and chairman of the House Select Committee on China Competition.

He expressed hope that the “executive branch will take action to protect our country”, adding that, “In the meantime, Americans would be wise to stop buying TP-Link equipment.”

The Wall Street Journal reported on Wednesday that the US Bureau of Industry and Security (BIS) was investigating Shenzhen-based TP-Link over security concerns and possible ties to Chinese cyberattacks.

The BIS, which is an agency of the US Commerce Department, has subpoenaed the company and may ban its devices. The US Departments of Defence and Justice are conducting separate inquiries, with the Justice Department investigating whether TP-Link is selling products below cost.

The BIS and Justice Department declined to confirm or deny the investigation. A Pentagon official said that while the department had no statement or information to provide on the specific case, “we seek to adhere to all regulations concerning the acquisition of equipment that may contain foreign components”.

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Georgia court boots prosecutor Fani Willis from Trump 2020 election case

By Agence France-Presse

An appeal court in the US state of Georgia disqualified the district attorney prosecuting Donald Trump for election interference on Thursday, but rejected the US president-elect’s bid to throw the case out.

The Georgia Court of Appeal removed Fulton County District Attorney Fani Willis from the case citing the “impropriety” of an intimate relationship she had with the man she hired to be a special prosecutor.

The trial judge had ruled earlier this year that Willis could remain on the case but the appeal court disagreed.

“After carefully considering the trial court’s findings in its order, we conclude that it erred by failing to disqualify DA Willis and her office,” the three-judge appeal court panel said.

“While we recognise that an appearance of impropriety generally is not enough to support disqualification, this is the rare case in which disqualification is mandated and no other remedy will suffice to restore public confidence in the integrity of these proceedings,” they said.

Trump was charged with racketeering in Georgia over his efforts to subvert the results of the 2020 presidential election in the southern state. The case has been stalled for months, however, and was likely to be frozen under the US Justice Department policy of not prosecuting a sitting president.

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Hong Kong hospitals to clarify facts, tell patients before revealing blunders

By Sammy Heung

Hong Kong’s public hospitals will require staff to first clarify the facts of medical blunders and notify patients and their families before revealing details publicly, as part of revised guidelines under governance and structural reforms.

Hospital Authority chairman Henry Fan Hung-ling said on Thursday it expected to implement most of the 31 recommendations earlier made by a review committee by June 30 next year.

Meeting the press after the quarterly board meeting, Fan denied that the reason behind the guideline change was simply to avoid being accused of disclosing mishaps too late, as the authority would have to take its time to ascertain more information in each case.

“It is because, in the past, we had to disclose them as soon as possible before the facts were actually ascertained. After checking the facts, we found that what we announced was wrong and had to correct them again, which made it confusing,” he said.

“Sometimes, we rushed to announce the incidents before the patients and their families were told of them. Of course, the patients would be upset as their privacy is more important than the public’s right to know.”

The new guidelines will be effective immediately.

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Is Taiwan a factor in US decision to finally start moving marines from Okinawa to Guam?

By Seong Hyeon Choi

The relocation of American marines from Okinawa to Guam may be in part a move to better protect both the US territory and Taiwan in the event of conflict with the People’s Liberation Army, analysts have said.

While no unit headquarters will be moving at this stage, the United States is planning to scale back its presence on Okinawa in phases to reduce the burden on the Japanese island.

Okinawa is the largest island in the Ryukyu chain and hosts more than half of all US service personnel stationed in Japan despite accounting for less than 1 per cent of the country’s land mass.

The move has been nearly two decades in the pipeline and the heavy US military presence on Okinawa has angered many locals because of its social and environmental impact and string of serious crimes, including murder and rape, committed by US service personnel.

However, some observers believe that mainland China’s growing military capabilities – especially its hypersonic missile arsenal – is another reason to disperse US forces across the wider Pacific, with one arguing that strengthening its forces in Guam would help it come to Taiwan’s defence in the event of conflict.

According to a joint statement from the US Marine Corps and Japanese defence ministry issued on Saturday, around 100 logistics support troops from III Marine Expeditionary Force have started moving from Okinawa to Guam.

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Xi Jinping lays out 3 expectations for Macau as new leader set to take reins

By Kahon ChanWilla Wu

Chinese President Xi Jinping has laid down his expectations for Macau during a rare visit to the gambling hub, calling on the city to avoid complacency, strive to attract a broad range of talent and play a bigger role on the international stage.

At the same time, Xi praised the city for the orderly development of its gaming industry, the biggest in the world, as well as its efforts to diversify its economic base.

The president outlined his vision for Macau in a speech at a gala dinner at the East Asian Games Dome on Thursday, attended by Sam Hou-fai, who will be inaugurated as the city’s fourth chief executive on Friday, and Hong Kong leader John Lee Ka-chiu.

Xi’s wife, Peng Liyuan, and current Macau leader Ho Iat-seng also attended the dinner.

Among the president’s three expectations for Macau, “embracing a broader vision” was at the top of the list. He called on the casino hub to “keep pace with the trends of the times” and further refine its vision for the future.

The city should adopt a scientific approach to mapping out its next stage and focus on further aligning with national development strategies, including the Greater Bay Area blueprint, while playing a bigger role on the international stage, Xi said.

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Hong Kong dinosaur fossil show opens on Friday, chance to see experts at work

By Fan Chen

Hongkongers will be able to see dinosaur fossils found in the city from Friday in an exhibition space that gives enthusiasts a glimpse into restoration work, while an official has said the government will prioritise research over commercial efforts.

The HK$3 million Dinosaur Parlour, located in the Hong Kong Heritage Discovery Centre in Kowloon Park, will include a preparation area where visitors can watch experts work on 30 locally uncovered rocks that contain dinosaur fossils.

A display zone will also feature fossils of dinosaur bones and other ancient animals and plants.

The 470 sq ft space will welcome a maximum of 35 visitors per 10-minute viewing session.

Heritage commissioner Ivanhoe Chang Chi-ho said the centre would make arrangements for the expected queues and other crowd control measures at the show, which did not have an end date.

“There’s no difference whether you come early or late,” Chang said. “But you are welcome to visit from time to time, as we will update the exhibits regularly as the repair and restoration work proceeds.”

He added the first fossil unearthed in the city drew 30,000 people when it went on display.

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How US-China economic warfare could play out, China’s nuclear arsenal: SCMP daily catch-up

By SCMP

Catch up on some of SCMP’s biggest China and economy stories of the day. If you would like to see more of our reporting, please consider subscribing.

After retaking the White House last month, US president-elect Donald Trump celebrated his victory by attending an Ultimate Fighting Championship heavyweight bout with his friend and UFC president, Dana White, alongside billionaire ally Elon Musk.

The US Supreme Court said on Wednesday that it had agreed to review a US law that mandates a nationwide ban of the popular Chinese-owned video app TikTok if it fails to secure a non-Chinese buyer by January 19.

China has not only expanded its number of operational nuclear warheads to 600 but improved the diversity and sophistication of its arsenal, the Pentagon said in a report released on Wednesday.TikTok faces a potential US ban. Photo: TNS

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China’s H-20 long-range stealth bomber will not appear until the 2030s: Pentagon

By Zhao Ziwen

China’s H-20 stealth bomber is unlikely to make its debut until the 2030s, the Pentagon said in an annual defence report released on Wednesday.

“[China] is developing a new generation of long-range bombers, likely named the H-20 … which may debut sometime in the next decade,” the China Military Power Report said, offering Washington’s latest evaluation of the widely discussed advanced Chinese stealth bomber.

The Pentagon report, mandated by the US Congress and released annually for the past two years, is seen as the US defence ministry’s most comprehensive unclassified report on China’s military advancements.

The H-20 programme was first revealed by the People’s Liberation Army (PLA) in 2016 as a “new generation of long-range bombers”, seen as Beijing’s answer to America’s B-2 Spirit and B-21 Raider bombers.

According to the Pentagon, the H-20 will have a range of “more than 10,000km (about 6,214 miles)”, “enabling the [PLA Air Force] to cover the second island chain and into the western region of the Pacific”.

It also added that the bomber was expected to employ both conventional and nuclear weaponry and “feature a stealthy design”.

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Too early to think about retirement, president of Hong Kong’s legislature says

By Harvey Kong

The president of Hong Kong’s legislature has said it is too early to think about retirement, as he praised lawmakers for passing nearly 50 per cent more government bills in the first three years of the body’s current term than their predecessors did.

Speaking to the media on Thursday, Andrew Leung Kwan-yuen predicted lawmakers would be “very busy” in 2025 vetting numerous bills aimed at boosting the economy and resident’s livelihood before their term ended next December.

“We have another year to go, so I think it is too early for any members to think of plans for 2026,” said Leung, who was elected to the position in 2016. “I think the government is working very hard together with Legco. Hopefully there are plenty of bills to get Hong Kong into a better economic situation or direction, [and] there are a lot of bills to help to improve the livelihood of Hong Kong citizens.

“So I think we are going to have a very busy year.”

Legco has been without opposition lawmakers since 2020. The bloc’s legislators resigned as a group ahead of Beijing’s overhaul of the electoral system in 2021 to ensure only “patriots” held political power.

Responding to questions about his retirement plans, Leung said every lawmaker would be focused on the remaining year of their term, and the future would be considered at an appropriate time.

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China’s youth-unemployment pressure eases as index falls for third straight month

By Alice Li

China’s youth-unemployment pressure showed signs of easing in November as rates declined for the third consecutive month, according to official data. But job market uncertainty is still driving graduates to chase stable public-sector jobs.

The unemployment rate for the 16-24 age group, excluding students, was 16.1 per cent last month, down from 17.1 per cent in October, according to data released by the National Bureau of Statistics (NBS) on Wednesday.

Meanwhile, the unemployment rate for the 25-29 age group, excluding college students, also fell slightly to 6.7 per cent last month, compared with 6.8 per cent in October.

China’s youth-unemployment rate has now posted three consecutive monthly declines since the index shot up to 18.8 per cent in August, when a bumper class of fresh graduates entered the job market.

That August peak was the highest youth-unemployment level China had recorded since the government changed the way it measured the rate last year.

China temporarily stopped publishing its youth-unemployment data in August 2023, after recording a record-high rate of 21.3 per cent two months earlier. It then rejigged its calculation method to exclude students from the data.

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