Lu Shaye, China’s controversial ex-envoy to France, handed new role on Europe

By Finbarr Bermingham

Lu Shaye, the former Chinese ambassador to France who stoked a series of high-profile controversies during a half-decade in Paris, has been appointed as Beijing’s special representative for European Affairs.

European Union authorities were recently notified of Lu’s appointment, marking a swift return to the political scene for an envoy who left France in December, several sources confirmed.

Lu succeeds Wu Hongbo, who became the first holder of the office in 2019.

Wu was dispatched to Europe on several occasions after Beijing’s zero-Covid policy ended in 2022, often when ties became especially fraught.

The experienced diplomat frequently clashed with EU counterparts over China’s relations with Russia and Western accusations of industrial overcapacity.

Lu’s five-plus years in Paris, meanwhile, were characterised by an abrasive style and very public fallouts with the French government and authorities elsewhere in Europe.

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Ashes of actress Barbie ‘Big S’ Hsu sent back to Taiwan

By Jiang Chuqin

The ashes of Taiwanese actress Barbie “Big S” Hsu Shi-yuan have been sent back to the self-ruled island after she died of pneumonia during a trip in Japan, with her family saying there will not be a memorial ceremony for the star.

Taiwanese media reported on Wednesday that Hsu’s husband, Koo Jun-yup, was seen outside the Skyvision Jet Centre at Songshan Airport in Taipei around 3pm.

A family member’s statement later said that the ashes of the actress had arrived in Taipei.

“Thank you to all media friends for waiting for Shi-yuan to come back in such cold weather. She has arrived home safely. She is believed to be happy and worry-free now in heaven,” said a statement from her sister Dee Hsu published by local media.

“We will not organise a farewell ceremony for her as she has always been a low-key person. If you miss her, please keep it in your heart! Our whole family is grateful for your love for Shi-yuan.”

Hsu’s sudden death, confirmed by her family on Monday, shocked fans around the world. Known as “Big S”, she became a household name in Hong Kong and across Asia for her starring role in the 2001 television drama Meteor Garden.

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US Postal Service reverses decision to suspend taking parcels from Hong Kong, mainland China

By Mark Magnier

In a quick reversal, the United States Postal Service said on Wednesday that it would continue to accept “all international inbound mail and packages from China and Hong Kong Posts”, some 12 hours after these were suspended amid the brewing US trade war with China.

In a message on its website, the service said it was “working closely” with the Customs and Border Protection agency to institute an “efficient collection mechanism for the new China tariffs” to ensure the least disruption to package delivery.

On Tuesday, the postal service said it would temporarily freeze packages from mainland China and Hong Kong. That followed an executive order signed by President Donald Trump on Saturday that – as part of a 10 per cent tariff on all goods from China – suspended a “de minimis” rule for Chinese imports. The tariffs went into effect on Tuesday.

The “de minimis” rule allowed small packages with a value of less than US$800 to enter the US duty-free, a system that the Chinese e-tailers Shein and Temu have relied upon. Wednesday’s move by the postal service, which follows a similar temporary White House halting of 25 per cent tariffs against Canada and Mexico, adds to the tumult that has marked the first weeks of the Trump administration.

The suspension then sudden reversal of Chinese postal shipments and the de minimis crackdown are widely seen as linked. Some 30 per cent of small packages coming into the US in 2023 were sent by Shein and Teum, according to a US government report, and that percentage has likely increased.

It was not immediately clear what prompted the turnaround, but this latest economic and policy confusion came as Trump said late on Tuesday that he was in no hurry to speak to Chinese President Xi Jinping.

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Will Donald Trump’s new US sovereign wealth fund take aim at Chinese assets?

By Frank Chen

US President Donald Trump’s push to set up a sovereign wealth fund may create a strong competitor for China’s own state investment vehicle – and analysts said the overseas assets of Chinese companies may also be in the crosshairs, urging all parties to be prepared.

Trump signed an executive order on Monday authorising the creation of a sovereign fund within the year, and suggested the fund could eventually purchase TikTok, the ubiquitous short video app owned by Chinese tech company ByteDance.

Xin Qiang, a professor with the Centre for American Studies at Fudan University in Shanghai, said if the proposed fund does take shape it may make China’s sovereign investment platform a target.

“The US fund may compete against the Chinese one, and if bilateral ties are frayed, it could be used to wage a financial war, like shorting stocks the Chinese fund holds,” Xin said. “It may also race against China to invest in frontier tech or bid for the same assets.”

The academic added the proposed fund is part of a broader undertaking under Trump to implement his election campaign pledges, many of which were related to China.

“Beijing needs to prepare countermeasures and carefully monitor and analyse the fund’s size, funding structure, operations, intended targets as well as who will be running it.”

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Physical gym closure, Messi and waste charging dominated Hong Kong consumer news

By Jiang Chuqin

The closure of Hong Kong gym chain Physical has been voted the top consumer news story in 2024, followed by football star Lionel Messi’s absence in a key match and the suspension of the waste charging scheme, according to the city’s consumer watchdog.

The Consumer Council revealed on Wednesday the results of its survey about the biggest news stories of the year, which attracted a record-high 14,429 voters, triple last year’s 4,620.

The campaign, conducted in partnership with major local media organisations from January 2 to 22 this year, aimed to raise public awareness and attention about consumer rights.

“The closure of a local large-scale gym and beauty chain reminds consumers to think twice before committing to a prepayment,” said council chairman Clement Chan Kam-wing. “The subpar arrangements of certain mega-events also caused consumer dissatisfaction, which serves as a reminder for organisers to learn a lesson.”

More than half of the voters picked the closure of Physical Fitness as the top consumer news story in the Year of the Dragon, a business shock that drew more than 5,600 consumer complaint cases amounting to close to HK$200 million.

The chain shut down in September last year after 38 years in business, citing a need to restructure its business and blaming high rents for its financial troubles.

The incident triggered discussions about establishing a mandatory cooling-off period and a limit on the duration of prepaid contracts, as well as strengthening regulations for businesses that operated on a prepayment model.

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Chinese e-commerce in spotlight amid EU push to scrap duty-free access for small packages

By Finbarr Bermingham

The European Commission is pushing to scrap a rule that gives low-value shipments duty-free access to the EU as it looks to clamp down on a flood of small packages from China.

The bloc’s executive branch proposed removing the tariff-free access on Wednesday as part of a flurry of directives aimed at tackling the online sale of “often dangerous” goods, singling out Chinese retailers such as Shein and Temu as a major source of these products.

Currently, packages valued at under €150 euros (US$156) can be sent to the European Union without paying tax. But with 12 million small-value parcels entering every day – 91 per cent of which come from China, according to the commission – customs regimes are overwhelmed.

The volume of small packages entering the EU rose from 1.9 billion to 4.2 billion a year between 2023 and 2024.

Previous studies have estimated that the EU could recoup €1 billion a year in tax if it applied a simplified tariff to these packages by 2027.

Officials have since suggested that this figure may be even higher because the import volume has risen significantly since the research was carried out.

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Jimmy Lai admits to pushing for unofficial Hong Kong Legco ‘primary’

By Brian Wong

Former Hong Kong media boss Jimmy Lai Chee-ying has admitted to pushing for an unofficial legislative “primary” election to be held five years ago, with his efforts extending to obtaining a quote for vote-counting software and advising on the best timing to hold the poll.

Lai said on Wednesday he was not involved in the poll’s organisation, but conceded that he “did not tell the truth” when he previously told his marathon trial he was “not conscious” of a plan for the election to be held in the hope of securing a controlling majority for opposition politicians in the Legislative Council.

A court has found the primary formed part of a plot to overthrow the government.

The founder of the now-defunct Apple Daily tabloid newspaper agreed he had asked traditional opposition leaders to keep him informed about the unofficial poll and pushed organisers to speed up preparations.

Lai also said he had obtained a quote for an electronic voting system developed by a European tech company and had been prepared to spend US$80,000 on the software. But the idea was rejected by former law professor Benny Tai Yiu-ting, the architect of the unofficial poll.

Over 610,000 voters cast their ballots in the July 2020 primary, but the government postponed the official Legco election by a year, citing the impact of the Covid-19 pandemic.

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China trains ‘special mission’ pilots for combat readiness on Fujian carrier: CCTV

By Amber Wang

China’s military has accelerated pilot training for the Fujian aircraft carrier, believed to be for operating KJ-600 early warning aircraft, according to state media.

According to a video released by state broadcaster CCTV on Wednesday, the Naval Aviation University of the People’s Liberation Army has been using land-based aircraft to train pilots for a new type of carrier-based “special mission” aircraft, which has not yet entered into service.

The training was intended to ensure pilot preparation kept up with equipment deployment, with the aim of accelerating combat readiness, said a post on the CCTV military channel’s Weibo account.

“The 18 aircraft carrier is soon to be commissioned,” the university’s Lin Chunliang told CCTV, referring to the hull number of China’s third aircraft carrier, the Fujian.

“We hope to play a key and prominent role in the pilot training, especially in the development of carrier-based aircraft pilots,” Lin said.

The Fujian, the country’s most advanced carrier, finished its sixth sea trial in early January after its launch in June 2022.

Its cutting-edge electromagnetic catapult system allows for the launch of heavier and more advanced aircraft, such as the airborne early warning and control (AEW&C) aircraft KJ-600, and supports more frequent and rapid sorties.

It is expected the Fujian will also carry catapult capable J-15T fighter jets, the fifth-generation J-35 stealth fighter.

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Yuan kept stable against US dollar, Trump downplays China tariffs: SCMP daily highlights

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.

China’s central bank set a stronger-than-expected fixing rate for the yuan against the US dollar on Wednesday, signalling that China does not plan to offset the impact of US tariffs by allowing its currency to weaken.

US President Donald Trump dismissed the implications of retaliatory measures that Beijing enacted against the United States following Washington’s imposition of 10 per cent tariffs on imports from China, stating he is “in no rush” to talk to the country’s president, Xi Jinping.

China, fuelled by recent successes from DeepSeek and Unitree, is making a play for pole position in humanoid robots. Can the US hold its ground?Illustration: Lau Ka-kuen

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Operation Santa Claus: HK$13.2 million raised in last 2 months of 2024

By Carrie Lee

Annual fundraising drive Operation Santa Claus (OSC) raised a substantial HK$13.2 million (US$1.7 million) in the last two months of 2024 to improve the lives of more than 11,000 underprivileged Hongkongers through 11 charities.

Contributions to the 37th edition of the initiative, jointly organised by the South China Morning Post and public broadcaster RTHK, brought the total funds raised by OSC since its 1988 inception to over HK$396 million, benefiting 364 charitable projects in the city.

The numbers were announced at the campaign’s closing ceremony held on Wednesday at social enterprise Museum Cafe 8, run by a former OSC beneficiary, at Central Pier 8.

The latest donations will be distributed among 11 charities for projects aimed at helping more than 11,000 underprivileged individuals, according to the organisers.

“In a vibrant city like Hong Kong, where the hustle and bustle can sometimes overshadow the struggles of many, it’s crucial that we extend our hands and hearts to lift those in need,” RTHK acting assistant director for radio Angel Cheng told attendees at the ceremony.

“Together, we can continue to bring light to those who need it most. Let’s carry this momentum forward, ensuring that Operation Santa Claus thrives in the years to come.”

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Any US bid to retake Panama Canal would be prohibitively costly

By Nong Hong

President Donald Trump has recently expressed interest in the US “taking back” control of the Panama Canal, a statement that raises significant legal and geopolitical questions.

The Panama Canal, completed in 1914, came under US control after the signing of the 1903 Hay-Bunau-Varilla Treaty that granted the US sovereignty over the canal zone. For nearly a century, the US oversaw this vital maritime route connecting the Atlantic and Pacific Oceans. But the 1977 Torrijos-Carter Treaties paved the way for its transfer to Panama, which was completed on December 31, 1999, in accordance with international law.

The Torrijos-Carter Treaties, ratified by both nations, explicitly outline the terms of the transfer and the canal’s continued neutral operation. Since 1999, Panama has held full sovereignty over the canal, which remains open to ships of all nations under international law, particularly the UN Convention on the Law of the Sea. While the US retained certain military rights, these do not extend to control over the canal.

Trump’s proposal to take back control of the canal would violate the Torrijos-Carter Treaties and the fundamental principles of territorial sovereignty and self-determination. The US has no legal basis to reclaim the canal without Panama’s consent. Any unilateral move is likely to face strong international opposition and erode US credibility as a treaty-abiding nation.

Moreover, reversing the 1999 transfer would be impractical, as Panama has exercised full control of the canal for over two decades, and any attempt to alter this arrangement would require complex diplomatic negotiations with little likelihood of success.

Given the broad international recognition of Panama’s sovereignty, such an effort would also face significant diplomatic resistance, particularly from Latin American nations sensitive to issues of sovereignty and foreign influence. It would be counterproductive to US engagement in Latin America.

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DeepSeek’s AI breakthrough ‘is biggest shock to come out of China in 185 years’

By Dannie Peng

DeepSeek may prove to be China’s most important technological contribution to the world in almost two centuries, according to a leading scientist.

Rao Yi, the president of Capital Medical University in Beijing, argued in a post on social media: “DeepSeek is the biggest shock to human society to come out of China in terms of science and technology in 185 years.

“It’s not that China’s technological achievements in the past were unimportant, but that the real-world reaction triggered by the out-of-the-blue DeepSeek [was much stronger].”

Rao also alluded to China’s defeat at the hands of the British in the first opium war in 1842, which ended China’s self-perceived leadership of the world and exposed how it had fallen behind in military technology.

DeepSeek recently made global headlines with the release of two large language models (LLMs) V3 and R1, which were built at a fraction of the cost and computing power of leading US products such as ChatGPT but performed at a similar level.

OpenAI’s chief executive Sam Altman admitted it was an “impressive model, particularly around what they’re able to deliver for the price”.

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ByteDance’s new AI model goes viral for its deepfake capabilities that animate photos

By Ben Jiang

ByteDance, the tech giant behind TikTok, has introduced an artificial intelligence (AI) model that is gaining widespread attention for its ability to transform photos and sound bites into realistic videos, underscoring China’s growing capabilities in the field.

The company’s OmniHuman-1 multimodal model can create vivid videos of people speaking, singing, and moving with a quality “significantly outperforming existing audio-conditioned human video-generation methods”, the ByteDance team behind the product said in a paper. AI-generated images, videos and audio of real people are often referred to as deepfakes, a technology becoming more prominent in cases of fraud as well as more harmless uses for entertainment.

ByteDance has become one of the hottest AI companies in China. Its Doubao app is currently the most popular consumer-facing AI app in the country. It has not released the OmniHuman-1 to the public yet, but sample clips have gone viral.

One notable demo features a 23-second video of Albert Einstein delivering a speech. TechCrunch’s Kyle Wiggers described the app’s output as “shockingly good” and “perhaps the most realistic deepfake videos to date”.

The model highlights the advancements Chinese developers are making despite Washington’s efforts to curb the country’s AI progress. The launch follows OpenAI widening the release of its video-generation tool Sora, which was made publicly available to ChatGPT Plus and Pro users in December.

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How is China retaliating against US tariffs, and what impact will it have?

By Ji Siqi

Within minutes of the United States hiking tariffs on all Chinese imports by 10 per cent, Beijing announced a slew of retaliatory measures in a bid to gain leverage in any future trade negotiations with Washington.

The moves unveiled on Tuesday included a 10-15 per cent increase in tariffs on certain US imports, export restrictions on some critical minerals, the addition of two US companies to a Chinese government blacklist, and an antitrust investigation targeting American tech giant Google.

China has also filed a complaint against the US levies with the World Trade Organization.

Although the steps taken by Beijing are more measured and targeted than the US’ across-the-board tariffs on Chinese goods, economists said China’s moves were carefully calibrated – as some of them will hit areas that US President Donald Trump most cares about.

“The combination of retaliatory tariffs with export bans, entity-list additions and antitrust probes suggests a more coordinated and comprehensive approach by policymakers compared with the 2018-19 US-China trade war,” economists from Goldman Sachs said in a note on Tuesday.

According to Beijing’s announcement, eight goods imported from the US will face additional duties of 15 per cent, including coal and liquefied natural gas (LNG).

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Thailand’s Paetongtarn Shinawatra in China, with trade, railway, scam farms on the table

By Laura Zhou

Thai Prime Minister Paetongtarn Shinawatra has arrived in China for a four-day visit as the two sides look to crack down on telecoms scam farms in Southeast Asia, and with trade, technology and infrastructure expected to top the agenda.

Thailand, a long-time US ally, is also a crucial regional partner for Beijing in light of its fierce rivalry with Washington.

Paetongtarn arrived in Beijing on Wednesday for what is her first visit to China since taking office in August.

Accompanying the Thai prime minister are four deputy prime ministers – in charge of transport, internal affairs, finance and digital economy, respectively.

Ministers overseeing foreign policy, tourism and agriculture are also part of the Thai delegation.

Thai media reports ahead of Paetongtarn’s visit said she would meet Chinese President Xi Jinping in a bid to curb negative public perceptions about tourism safety in the kingdom, after several Chinese nationals were trafficked into Myanmar via Thailand to work at cyber scam farms there.

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