The special Sino Saturday edition of our popular newsletter for leaders, by Time Inc. international editor Clay Chandler.
Leadership CEO Daily Maybe Trump and Xi Both Benefit from a Trade War
Back to the table. Newly elected Malaysian Prime Minister Mahathir Mohamad said he is keen to renegotiate several agreements that had been struck between Malaysia and China, just hours after his opposition coalition received the majority of parliament seats in the May 9 elections in Malaysia. Mahathir said he was supportive of China’s Belt and Road initiative but has been critical of vast mainland Chinese investments welcomed by the previous administration. CNBC
Kudos, China. Donald Trump on Wednesday thanked China for its aid in improving relations with North Korea, shortly after announcing that Pyongyang agreed to the release of three US detainees this week. North Korean leader Kim Jong-un met with Chinese President Xi Jinping from 7-8 May in Beijing. Kim will meet Trump in a summit in Singapore on June 12, Trump tweeted on Thursday.. Reuters
Chinese whispers. Former CIA officer Jerry Chun has been indicted this week for conspiring to commit espionage. Chun, who is suspected of helping China unravel the CIA’s spy network in China was arrested in January for illegally possessing classified documents but the new charge reflects prosecutors’ willingness of prosecutors to disclose sensitive details they were previously reluctant to acknowledge. New York Times
Call me maybe? China and Japan have agreed to launch a security hotline to defuse maritime tensions in the East China Sea, where both parties have repeatedly clashed over territory ownership and lingering wartime disputes. The agreement was signed during Chinese Premier Li Keqiang’s official visit to Prime Minister Shinzo Abe and Emperor Akihito in Tokyo this week. Reuters
Didi Chuxing chastised. Didi Chuxing has been chided by China’s Ministry of Transport after a female passenger was alleged raped and murdered by one of its drivers. The firm has issued a public apology and offered a 1m yuan reward for the driver, who is still at large, but it has done little to quell widespread outrage on Chinese social media. The firm said on Friday that it is suspending its carpooling Hitch service for a week for “self-inspection and rectification”. Fast Company
Hit the brakes. Chinese telecoms manufacturer ZTE said on Wednesday that it has halted “major operations” after a US ban on the sale of equipment to the firm by American companies came into effect in April. The ban was imposed on ZTE for its violation of sanctions on Iran and North Korea. ZTE products including smartphones and telecoms equipment were visible but no longer listed for sale on ZTE’s online store from Wednesday. Fortune
More than words. Republican Senator Marco Rubio has proposed a bill that will block the US government and contractors from buying equipment and services from Chinese tech giants ZTE and Huawei, as well as impose higher taxes on any income made from China by US companies and caps on shares held by Chinese investors in US companies that produce goods under the “Made in China 2025” initiative, which aims to boost China’s robotics, aerospace, and clean-energy auto sectors. ZDNet
Who Are the Three Americans That Have Been Released by North Korea? TIME
Peace in North Korea Could Cost $2 Trillion If History Is a Guide Fortune
North Korea airline plans new China flights CNBC
Take a look around Huawei’s headquarters in China CNBC
For Xiaomi, the real money is not in gadgets Tech in Asia
Panasonic rattled by high-maintenance partner Tesla Nikkei Asian Review
10 Years Ago in Sichuan, a Quake Killed 69,000. Should China Be Thankful? New York Times
The Price of Saying ‘Me Too’ in China New York Times
From beleaguered to behind bars. Wu Xiaohui, chairman of China’s Anbang Insurance Group has been sentenced to 18 years in prison for fraud and embezzlement. The news comes three months after the Chinese government seized control of his company, as part of its ongoing efforts to reduce leverage in the Chinese economy. Wu famously bought New York’s Waldorf Astoria hotel, among other business, with a mountain of debt. China’s Caixin magazine details his fall from grace. Financial Times
Li Ka-shing retires. Prominent Hong Kong billionaire Li Ka-shing officially retired on Thursday, after handing over the reins of firms, CK Hutchison Holdings and CK Asset Holdings, to his eldest son Victor. Li was Hong Kong’s, and often Asia’s, richest man for decades and is often referred to as “Superman” in Hong Kong for his business acumen. Bloomberg
‘Orwellian nonsense’. The Chinese government has said it could use a new social credit regulation enacted late last year to punish carriers that refer to Taiwan, Hong Kong or Macau as independent territories. The Civil Aviation Administration of China indicated this in its letter sent to 36 global carriers last month urging them to acknowledge the one-China principle. The White House responded in a statement last weekend calling China’s demands “Orwellian nonsense”. South China Morning Post
Summaries by Debbie Yong. @debyong debbie.yong@meredith.com
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