Trump Administration Adds China’s Biggest Chip Maker To Trade Blacklist For Alleged Military Ties

Topline

The U.S. Department of Defense added China’s biggest chipmaker, SMIC and major oil firm CNOOC to a trade blacklist due to their alleged ties to the country’s military, continuing the outgoing Trump administration’s crackdown on Chinese firms.

Key Facts

Late on Thursday, the Department of Defense announced a total of four additions to its blacklist also including China Construction Technology Co Ltd and China International Engineering Consulting Corp.

SMIC, which is China’s biggest semiconductor maker, relies heavily on equipment and software from U.S. suppliers to design and manufacture its chips.

In a stock exchange filing on Friday the Chinese chipmaker said that it was aware of the action and was still evaluating the potential fallout.

Crucial Quote

In a Wall Street Journal

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Australia and China’s new battleground: social media



Xi Jinping, Roberto Azevêdo, Randal Quarles sitting at a table: Bilateral ties between China and Australia have plummeted to a new low


© AFP
Bilateral ties between China and Australia have plummeted to a new low

From furious insults to WeChat censorship, a spat between China and Australia over a controversial tweet has escalated into an online tit-for-tat in recent days.

The catalyst for the row, posted by a top Chinese government official, was a fake image.

But the diplomatic fall-out has been all too real, plunging an already fragile relationship between the two countries further into the abyss.

Warning: This story contains an image some people might find distressing.

‘Truly repugnant’

It all began with that shocking tweet.

On Monday China’s foreign ministry spokesman Zhao Lijian posted this fake image on Twitter, responding to a damning report about alleged Australian war crimes in Afghanistan.



a group of clothes on a bed


© Twitter


We’ve blurred out a part of it, but the picture shows a grinning Australian soldier holding a bloodied knife to the throat of an Afghan

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Meituan’s third-quarter sales rise as antitrust clouds gather over China’s internet giants



The logo of Meituan is seen on insulated boxes fastened on its food delivery couriers’ motorcycles in the central business district of Beijing. Photo: Reuters


© REUTERS
The logo of Meituan is seen on insulated boxes fastened on its food delivery couriers’ motorcycles in the central business district of Beijing. Photo: Reuters

Meituan, operator of China’s largest e-commerce platform for services, expects “reinforced regulation” to promote more innovation and balance of interests in China’s internet industry, following Beijing’s release of a draft antitrust guideline in November.

“We think the new antitrust consultation paper is supportive of the healthy development of the internet … and helps promote fair competition within the industry,” said Wang Xing, co-founder and chief executive of Meituan, in a conference call with analysts after the market closed on Monday. “As internet platforms become bigger and more important to the economy, regulatory frameworks will also evolve.”

His comments come after Meituan reported third-quarter financial results that beat market estimates, as the domestic economy continued to recover amid increased consumer spending and the steady

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Meituan’s Sales Surge Alongside China’s Appetite for Takeout

(Bloomberg) — Meituan reported a 29% rise in quarterly revenue after China’s economic recovery boosted restaurants and whetted consumers’ appetite for takeout.



a man riding a motorcycle on a city street: A food delivery courier for Meituan Dianping travels along a road in Shanghai, China, on Sunday, Nov. 29, 2020. Meituan is scheduled to release third-quarter earnings results on Nov. 30.


© Bloomberg
A food delivery courier for Meituan Dianping travels along a road in Shanghai, China, on Sunday, Nov. 29, 2020. Meituan is scheduled to release third-quarter earnings results on Nov. 30.

The world’s largest meal delivery service posted sales of 35.4 billion yuan ($5.4 billion) during the July-September period, beating the average estimate of 34 billion yuan. It also logged net income of 6.3 billion yuan, versus a projected 435 million yuan. Profit was bolstered by 5.8 billion yuan in investment gains.

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The strong results affirm Meituan’s bounce-back from the pandemic disruptions of past quarters and could assuage investors worried about the impact of a Chinese antitrust crackdown on the internet sector. China’s third-largest tech corporation is now benefiting from rising travel and restaurant spending

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China’s Danke Apartment is creating new internet economy victims



a person standing in front of a store: Chinese millennial


© Provided by Quartz
Chinese millennial

Online platform Danke Apartments was once a rising star in China’s fast-growing flat rental market. Now financial difficulties and a spate of evictions have prompted protests from its tenants and landlords.

Danke, whose Chinese name means eggshells, rents flats from landlords on long-term leases. It then slices up and furnishes the units before subletting them. The company, which listed on the New York Stock Exchange in January, gained investor interest by positioning itself not simply as a property management firm, but as a tech company that uses big data and apps to offer a seamless user experience.

Danke serves a class of tenants riding high on China’s booming internet economy. Fresh graduates and young professionals shut out by the country’s sky-high housing prices have flocked to the platform since its founding in 2015. By March this year, the company reported that it was managing

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Alibaba CEO says China’s draft anti-monopoly rules ‘timely and necessary’

By Yingzhi Yang and Josh Horwitz



a screen shot of a man in a suit and tie: World Internet Conference in Wuzhen


© Reuters/ALY SONG
World Internet Conference in Wuzhen

WUZHEN, China (Reuters) – China’s move to draft rules aimed at preventing monopolistic behaviour by internet platforms is “timely and necessary”, Alibaba Group CEO Daniel Zhang said on Monday.

Speaking at the World Internet Conference, Zhang said Chinese internet companies have moved to the forefront of the global industry with the help of government policies, but regulations need to evolve.

The industry’s “development and government supervision is a relationship that promotes and relies on each other, so that platform enterprises cannot only develop well themselves, but also serve the sustainable and healthy development of the whole society,” he said.



a man wearing a suit and tie: World Internet Conference in Wuzhen


© Reuters/ALY SONG
World Internet Conference in Wuzhen

Video: RCEP trade pact is a ‘wake-up call’ for the U.S., business council says (CNBC)

RCEP trade pact is a ‘wake-up call’ for the U.S., business council says

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China’s Joyy Rises 17% After Contesting Muddy Waters Report

(Bloomberg) — The stock of Joyy Inc. surged after the Chinese livestreaming video giant disputed allegations of fraud by short seller Muddy Waters, saying its analysis showed a fundamental misunderstanding about the fledgling industry.

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Shares rose 17% in U.S. trading Thursday, the largest gain in three years. They recovered some of the 26% selloff in the previous session that marked its biggest single-day decline.

Joyy said Muddy Waters’s 71-page report contained “numerous errors, unsubstantiated statements, and misleading conclusions” and showed its “lack of a basic understanding of the live streaming industry,” which the company helped turn into one of the fastest-growing segments of the world’s largest internet market. Joyy also pointed to a $300 million dividend program it announced in August as evidence that it is able to generate — and distribute to shareholders — real cash, including $25 million paid out in the third quarter.

“To conclusively

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How China’s J-20 stealth jet compares to the US’s F-22 fighter jet

  • A high-profile part of China’s ongoing military modernization is the J-20, the country’s first stealth fighter jet.
  • The J-20, likely based on stolen US designs, looks a lot like the US Air Force’s F-22, but appearance isn’t the only similarity between the two fifth-generation fighters.
  • Visit Business Insider’s homepage for more stories.

Aside from China’s aircraft carriers and ballistic-missile programs, no weapon system has captured as much attention as the J-20 Mighty Dragon, China’s first stealth fighter.

The aircraft is the world’s third operational fifth-generation stealth fighter, the only one in official service that wasn’t designed by the US or its allies.

Two J-20s were seen at a Chinese air base near the Indian border after tensions between the two countries spiked, rumors of a twin-seat variant under development have spread on social media, and last month, two J-20s were shown conducting a fighter drill in footage released by Chinese

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Zilliz raises $43 million as investors rush to China’s open source software

For years, founders and investors in China had little interest in open source software because it did not seem like the most viable business model. Zilliz’s latest financing round shows that attitude is changing. The three-year-old Chinese startup, which builds open source software for processing unstructured data, recently closed a Series B round of $43 million.

The investment, which catapults Zilliz’s to-date raise to over $53 million, is a sizable amount for any open source business around the world. Storied private equity firm Hillhouse Capital led the round joined by Trustbridge Partners, Pavilion Capital, and existing investors 5Y Capital (formerly Morningside) and Yunqi Partners.

Investors are going after Zilliz as they increasingly recognize open source as an effective software development strategy, Charles Xie, founder and CEO of Zilliz, told TechCrunch at an open source meetup in Shenzhen where he spoke as the first Chinese board chairperson for Linux Foundation’s AI

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China’s “mother river” Yangtze to lead high-quality development, bring certainty to world – Opinion

Aerial photo taken on Nov 13, 2020 shows the scenery of Langshan Mountain along the Yangtze River in Nantong city, East China’s Jiangsu province. [Photo/Xinhua]

China is set to build the Yangtze River Economic Belt into a powerful engine of the country’s high-quality development, bringing more certainty to the development of the world economy.

Efforts should be made to promote the high-quality development of the Yangtze River Economic Belt, said Chinese President Xi Jinping at a symposium he chaired on comprehensively advancing the development of the Yangtze River Economic Belt on Saturday in Nanjing, after an inspection tour in Jiangsu Province that started on Thursday.

The tour in the economic belt was the first inspection trip by Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, outside Beijing after the fifth plenary session of the 19th CPC Central Committee,

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