Chinese Business

China has announced it is investigating several executives at state-owned property companies, in another blow to a key sector already struggling with slowing sales, angry customers and heavily indebted developers.

Authorities said in separate notices on Tuesday that they were investigating Zhuang Yuekai, chairman of C&D Real Estate, and Shi Zhen, chairman of C&D Urban Services.

They are also looking into Liu Hui, deputy general manager of Shenzhen Talents Housing Group, and Tang Yong, a former chairman at China Resources Land.

All four were “suspected of serious violations of discipline and law”, the notices said, providing few details.

The language used in the announcements, however, typically indicates impending graft charges.

“This is a continuation of China’s crackdown on corruption, from government agencies to financial institutions, and to state-owned enterprises,” said Ting Meng, senior Asia credit strategist at ANZ Bank.

As sentiment in the sector is already weak, this news will “further suppress market confidence” and increase concerns about the internal governance of some state-owned firms, she told AFP.

The investigations come ahead of the ruling Communist Party’s 20th National Congress, at which President Xi Jinping is widely expected to be anointed for an unprecedented third term.

Xi has championed an anti-corruption drive since coming to power, taking down big-name detractors, and observers expect him to use the months leading up to the meeting to cement his grip on power.

The probes follow a regulatory crackdown on some of China’s biggest tech firms.

Authorities have also in recent months announced investigations into figures in the semiconductor industry, including minister for industry and information technology Xiao Yaqing.

Regulatory chiefs, insurance giants, security officials and financiers have faced censure or prosecution under the anti-corruption drive, but it is rare for a minister to be targeted while still in office.

The vast majority of people who have been investigated for corruption in China were eventually convicted.

Fox News boss Lachlan Murdoch has sued a small Australian media outlet for defamation over an opinion piece that linked his media empire to the US Capitol riots.

The scion of the Murdoch media empire is seeking damages, accusing Crikey staff of tarnishing his reputation and “covertly using another media organisation to harass” him.

Murdoch — whose Fox News Channel regularly rails at threats to free speech — also asked the court to permanently ban the site from publishing anything suggesting he “illegally conspired with Donald Trump” around the events of January 6.

The lawsuit was filed late Tuesday in Australia’s federal court, and came after Crikey published letters from Murdoch’s lawyers and dared him to sue. 

Crikey even took out an advertisement in the New York Times on Monday, publishing an open letter that welcomed the opportunity to “test this important issue of freedom of public interest journalism in a courtroom”.

Murdoch is chief executive of media behemoth Fox Corporation, which owns Fox News, and co-chairman of News Corp.

He is the eldest son of billionaire media tycoon Rupert Murdoch, owner of scores of outlets including The Wall Street Journal and the New York Post.

– ‘Unindicted co-conspirator’ –

The lawsuit was sparked by a June 29 article written by Crikey’s political editor Bernard Keane, headlined: “Trump is a confirmed unhinged traitor. And Murdoch is his unindicted co-conspirator”.

The original piece did not name the younger Murdoch directly, referring only to the “Murdochs and their slew of poisonous Fox News commentators”.

In legal correspondence with Murdoch, Crikey’s lawyers argued readers would more likely think the article referred to his father.

However, Murdoch’s lawyers argued in documents filed to the federal court Tuesday that their client was defamed 14 times by the article.

The legal filing also refers extensively to an article published in the Sydney Morning Herald — a major Australian newspaper — about Murdoch threatening to sue Crikey.

Murdoch’s lawyers alleged that Crikey tipped off the Sydney Morning Herald, and has since used the saga to drive subscriptions.

The Fox executive has retained high-profile barrister Sue Chrysanthou, who previously represented actor Geoffrey Rush in his defamation case against another Australian media organisation.

– Crikey stands by story –

The legal tussle pits an upstart website, with subscriber numbers in the low tens of thousands, against one of the world’s largest media empires.

Crikey editor-in-chief Peter Fray and chairman Eric Beecher said Wednesday that the site “stands by its story”.

“We look forward to defending our independent public interest journalism in court against the considerable resources of Lachlan Murdoch,” the pair said in a statement published by the site.

“We believe that coverage of the events of January 6 at the US Capitol, and the role of Fox News in those events, is absolutely legitimate.”

Murdoch’s representatives told AFP he would not be commenting as the matter was before the court.

– ‘The defamation capital’ –

The story has made waves in Australia, where the Murdoch family remains a major player in the local media despite its global expansion.

Former Australian Prime Minister Malcolm Turnbull weighed into the saga Wednesday, saying he was “very surprised” by Murdoch’s decision.

“I think it’s hypocritical,” he told public broadcaster ABC, adding that the Murdochs were “always bleating about freedom of speech, and how the defamation laws are too harsh”.

Australia’s tough libel laws offer few protections to the media and have earned the country the nickname “the defamation capital of the world”.

Sri Lanka tightened import restrictions Wednesday with a ban on more than 300 additional items, as an economic crisis that has created months of shortages and toppled a president refuses to abate.

President Ranil Wickremesinghe, who replaced Gotabaya Rajapaksa after his ouster in July, slapped a ban on goods including home appliances, tools and sports gear.

The South Asian island nation of 22 million people has been suffering dire shortages of many essentials due to a lack of foreign currency.

The new bans come despite the central bank announcing last week that the foreign exchange shortage was easing thanks to better inflows.

However, Sri Lanka’s economy is projected to contract this year by a worse-than-expected 8.0 percent, according to the bank, with inflation forecast to peak at a record 65 percent by September.

The lack of foreign currency pushed Sri Lanka into defaulting on some of its $51 billion external debt pile in April.

A delegation from the International Monetary Fund was due on Wednesday to continue talks with Sri Lankan officials on a bailout.

But IMF assistance could be delayed if Sri Lanka’s creditors, the biggest being China, refuse to restructure some of their loans.

Beijing has not publicly shifted from its offer of issuing more loans rather than taking a haircut on existing credit.

Worker remittances, a key source of foreign exchange for Sri Lanka, have dropped by more than 50 percent to $1.6 billion in the six months to June compared to the same period last year.

Rajapaksa, 73, fled to Singapore after months of protests culminated in demonstrators storming his official residence in July. He has since flown to Thailand but wants to return home, according to his party.

China’s autumn harvest is under “severe threat” from high temperatures and drought, authorities have warned, urging action to protect crops in the face of the country’s hottest summer on record.

The world’s second-largest economy has been hit by record temperatures, flash floods and droughts this summer — phenomena that scientists have warned are becoming more frequent and intense due to climate change.

Southern China has recorded its longest sustained period of high temperatures and sparse rain since records began more than 60 years ago, the agriculture ministry said.

Four government departments issued a notice on Tuesday urging the conservation of “every unit of water” to protect crops.

“The rapid development of drought superimposed with high temperatures and heat damage has caused a severe threat to autumn crop production,” the statement said.

China produces more than 95 percent of the rice, wheat and maize it consumes, but a reduced harvest could mean increased demand for imports in the world’s most populous nation — putting further pressure on global supply already strained by the conflict in Ukraine.

Temperatures as high as 45 degrees Celsius (113 degrees Fahrenheit) have led multiple Chinese provinces to impose power cuts, as cities struggle to cope with a surge in demand for electricity that is partly driven by people cranking up the air conditioning to cope with the heat.

The megacities of Shanghai and Chongqing have cut outdoor decorative lighting, while authorities in Sichuan province have imposed industrial power cuts after water levels dropped at key hydroelectric plants.

More than 1,500 people were moved out of the area surrounding Chongqing on Monday after hot and dry conditions sparked multiple wildfires, according to state news agency Xinhua.

The searing heat is also drying up the critical Yangtze River, with water flow on its main trunk about 50 percent lower than the average over the last five years, state media outlet China News Service reported last week.

– ‘Worst heatwave ever’ –

The national meteorological service renewed its warnings for drought and high temperatures on Tuesday, calling for 11 provincial governments to activate emergency responses.

Authorities have already turned to cloud seeding — a method to induce rainfall — in parts of the country. 

State broadcaster CCTV published footage this month showing meteorological staff shooting catalyst rockets into the sky and firefighters transporting water to farmers in need.

“This is the worst heatwave ever recorded,” climate and energy expert Liu Junyan of Greenpeace East Asia told AFP.

“Climate science shows extreme heat is becoming exponentially worse,” she said.

“So it’s more likely that next year will have record-breaking heat.”

This year’s extreme weather is raising public awareness of climate change in China, with state media “now coming around to covering climate impacts” with unprecedented urgency, Liu said.

Government climate expert Zhou Bing warned over the weekend of mass displacement caused by climate change, describing extreme weather as nature’s “revenge” on humanity.

China has experienced three other episodes of intense heat so far this century — in 2003, 2013, 2017.

The gap between heatwaves is “significantly shortening”, Zhou said.

China has announced it is investigating several executives at state-owned property companies over allegations of “serious violations of discipline and law”.

The probes are another blow to a key sector, which is already struggling with slowing sales, angry customers and heavily indebted developers.

Authorities said in separate notices on Tuesday that they were investigating Zhuang Yuekai, chairman of C&D Real Estate, and Shi Zhen, chairman of C&D Urban Services.

They are also looking into Liu Hui, deputy general manager of Shenzhen Talents Housing Group, and Tang Yong, a former chairman at China Resources Land.

All four were “suspected of serious violations of discipline and law”, the notices said, providing few details.

The language used in the announcements, however, typically indicates impending graft charges.

These investigations may “deal a further blow to investor confidence and cause market worries about the internal governance of some state-owned enterprises”, ANZ’s Ting Meng told Bloomberg News.

The investigations come ahead of the ruling Communist Party’s 20th National Congress, at which President Xi Jinping is widely expected to be anointed for an unprecedented third term.

Xi has championed an anti-corruption drive since coming to power, taking down big-name detractors, and observers expect him to use the months leading up to the meeting to cement his grip on power.

The probes follow a regulatory crackdown on some of China’s biggest tech firms.

Authorities have also in recent months announced investigations into figures in the semiconductor industry, including minister for industry and information technology Xiao Yaqing.

Regulatory chiefs, insurance giants, security officials and financiers have faced censure or prosecution under the anti-corruption drive, but it is rare for a minister to be targeted while still in office.

The vast majority of people who have been investigated for corruption in China were eventually convicted.

China’s autumn harvest is under “severe threat” from high temperatures and drought, authorities have warned, urging action to protect crops in the face of the country’s hottest summer on record.

The world’s second-largest economy has been hit by record temperatures, flash floods and droughts this summer — phenomena that scientists have warned are becoming more frequent and intense due to climate change.

Southern China in particular has recorded its longest sustained period of high temperatures and sparse rain since records began more than 60 years ago, the agriculture ministry said.

Four government departments issued a notice on Tuesday urging the conservation of “every unit of water” to protect crops.

“The rapid development of drought superimposed with high temperatures and heat damage has caused a severe threat to autumn crop production,” the statement said.

Multiple Chinese provinces have announced power cuts to cope with a surge in demand driven partly by people cranking up the air conditioning to cope with temperatures as high as 45 degrees Celsius (113 degrees Fahrenheit).

The megacities of Shanghai and Chongqing have cut outdoor decorative lighting, while authorities in southwestern Sichuan province have imposed industrial power cuts as water levels drop at key hydroelectric plants.

More than 1,500 people in the area surrounding Chongqing were evacuated on Monday after hot and dry conditions sparked multiple wildfires, according to state news agency Xinhua.

The national meteorological service renewed its warnings for drought and high temperatures on Tuesday, calling for 11 provincial governments to “activate” emergency responses.

Authorities have already turned to cloud seeding — a method to induce rainfall — in parts of the country. 

State broadcaster CCTV published footage earlier this month showing meteorological staff shooting catalyst rockets into the sky and firefighters transporting water to farmers in need.

“This is the worst heat wave ever recorded,” climate and energy expert Liu Junyan of Greenpeace East Asia told AFP.

“Climate science shows extreme heat is becoming exponentially worse,” she said.

“So it’s more likely that next year will have record-breaking heat.”

Asian markets were down on Wednesday after falls in global stocks as the euro plunged against the dollar and traders await news on the next US interest rate hikes.

The single currency tumbled to $0.9901 — a new 20-year low — but later clawed back losses as the greenback was hit by poor US economic data.

The dollar had strengthened this week ahead of a speech Friday by US Federal Reserve chief Jerome Powell, as markets speculate that the central bank will continue to tighten its monetary policy.

Higher interest rates boost the American currency as they make dollar-denominated debt more attractive to investors.

But the euro also has been weighed down by a gloomy outlook for the eurozone economy as Russia’s war in Ukraine has sent energy prices soaring.

The unit plunged below parity with the dollar Monday on recession fears to plumb the lowest levels since 2002, when it first came into physical circulation.

In the latest blow, S&P Global’s closely watched monthly composite purchasing managers’ index (PMI) showed that eurozone economic activity fell for the second month in a row in August.

With the Jackson Hole central banking symposium this week, the focus is on what Fed chief Powell says about plans to tackle high prices, with many fearing officials could send the economy into recession.

“I think that investors are bracing for some hawkish commentary from Fed chair Powell this coming week,” said Jack Ablin of Cresset Capital.

Wall Street indices ended mostly lower, and key markets in Asia followed suit.

Tokyo, Hong Kong and Shanghai fell — though Sydney, Seoul, Taipei, Wellington and Manila rose at the open.

US natural gas prices, meanwhile, hit a fresh 14-year high on Tuesday at $10.028.

But across the Atlantic, European natural gas prices fell, although they remain elevated on fears of a halt to Russia’s gas deliveries. 

Gas had spiked to record peaks in March after key producer Russia launched its invasion of neighbouring Ukraine.

That has sparked surging domestic energy bills, fueling decades-high inflation that has prompted tighter monetary policy around the world.

Moscow’s manoeuvres have hit the single currency hard because the bloc relies heavily on imported Russian gas, said Societe Generale analyst Kit Juckes. 

“The euro’s problem is… the threat from continued squeezing of gas supplies and the cost of replacing Russian gas,” Juckes said.

– Key figures at around 0250 GMT –

Tokyo – Nikkei 225: DOWN 0.34 percent at 28,359.10 

Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,318.04 

Shanghai – Composite: DOWN 0.68 percent at 3,253.97 

London – FTSE 100: DOWN 0.6 percent at 7,488.11 (close)

Euro/dollar: DOWN at 0.9949 from $0.9973 

Pound/dollar: DOWN at 1.1804 from $1.1835

Euro/pound: UP at 84.29 pence from 84.25 pence

Dollar/yen: UP at 136.92 yen from 136.77 yen

West Texas Intermediate: DOWN 0.31 percent at $93.46 per barrel

Brent North Sea crude: DOWN 0.4 percent at $99.82

New York – Dow: DOWN 0.5 percent at 32,909.59 points (close)

Not many people can boast of having candid conversations about planetary conquest with Elon Musk, but for Indian software engineer Pranay Pathole, a friendly chat with the world’s richest man is just a tweet away.

Their unlikely online friendship has blossomed since Pathole was a teenager, with the mercurial billionaire responding to him over hundreds of tweets and private messages with headline-making company updates and even life advice.

This week, the two finally met face to face, when Pathole travelled to the United States — his first trip overseas — to begin a master’s degree there in business analytics.

“He is super genuine. Like, way down-to-earth. He’s humble,” the 23-year-old told AFP beforehand. “The way he takes his time to respond to me… just shows.”

Musk is a prolific user of Twitter, often posting more than 30 times a day to his 103 million followers.

But it remains a mystery why the SpaceX and Tesla boss, with a net worth of $266 billion, maintains regular contact with the young Indian.

“To be very honest, I have no idea. I think he must be like, really intrigued by my questions,” Pathole told AFP from his parents’ upper-middle-class home in the western city of Pune.

Pathole’s account is one of only a small handful that the billionaire frequently replies to — an average of once every two days, based on Musk’s public Twitter posts since the start of 2020.

The first time Musk responded to him was in 2018 when Pathole, then aged 19, pointed out a flaw in Tesla’s automatic windshield wipers.

“Fixed in next release,” Musk replied, with Tesla addressing the issue in a subsequent software update.

His mother and father celebrated by taking him out to dinner that night.

“I was blown away, to be very honest,” Pathole says. “I took multiple screenshots of it and just never wanted the day to end.”

Their later private chats — daily at first — covered “busting myths” about Musk’s past and discussions about why colonising other planets is “essential”, Pathole says.

“I used to ask him dumb questions, silly questions. And he used to take his time to reply to me.”

The time difference between the US and India has done little to hamper the four-year virtual friendship.

“I don’t think he sleeps that often. Because he’s on Twitter, like, the majority of the time,” Pathole says.

– ‘He’s an unpredictable guy’ –

Pathole says interactions with Musk have become “much more casual” over the years, and he no longer rushes to share them with friends and family.

“Elon is the same guy in his public persona as well as in his private,” he says.

Musk’s candid, irreverent and often cryptic tweets have sparked wild stock and cryptocurrency price swings, inviting scrutiny by US regulators.

The billionaire investor is also locked in a high-stakes legal battle with Twitter itself over his effort to walk away from an agreement to buy the company, with the trial set to begin in October.

But Pathole rejects suggestions that the billionaire acts with malice. 

“I don’t think that he’s a troll,” Pathole says. “He’s an unpredictable guy.”

Recruited straight out of engineering college to work at Tata Consultancy Services, India’s biggest IT firm, Pathole says he was “infamous” for getting into trouble at school — a trait he says helps him better understand Musk.

Having travelled to the US last week — bearing sweets for Musk — he hopes to not only earn his degree at the University of Texas at Dallas but gain work experience at a US company, including any of Musk’s.

“I want to get a job at Tesla on my own merit. It’s not like I want any favours. It would be good if he could interview me,” Pathole says.

After their meeting, Pathole tweeted a picture of the pair, which Musk “liked”.

– ‘Live on Earth, die on Mars’ –

Dressed in a black T-shirt in the style of his idol, Pathole can explain the intricacies of reusable rocket boosters and make a philosophical case for space exploration with equal ease.

Often, he quotes the billionaire entrepreneur’s comments verbatim.

“Live on Earth and die on Mars: that is a philosophy that we all share,” Pathole says, adding that he wants to grow old and die with the “red dust of Mars” on his feet.

Pathole has amassed a six-digit Twitter following, adding more every time Musk mentions him in a tweet.

Even offline, Musk is a frequent topic of dinner-table conversation with Pathole’s family and friends.

“Elon is like our family friend,” jokes Pranay’s father Prashant, a media consultant, adding that he and his wife Pallavi, a homemaker, were proud of their son’s passion.

“If he follows Elon Musk, if he wants to settle down on Mars, we don’t mind.”

TikTok influencers boasting collectively more than 51 million followers say they won’t work with Amazon until the e-commerce colossus delivers key concessions to workers and halts anti-union efforts.

It’s the latest example of creators lending their online stage to a cause on the massively growing platform more known for dance crazes and catchy songs.

An advocacy group calling itself Gen-Z for Change said it coordinated the pledge from more than 70 popular TikTok talents to stand in solidarity with Amazon workers through a “People Over Prime Pledge.”

The vow references Amazon Prime — a paid subscription from the online giant that includes benefits like rapid deliveries — but also the pressure it puts on those working to fill the orders.

“We are calling on Amazon to listen to their workers and make tangible changes to their workplace environment,” the group said in a letter, noting that TikTok has more than a billion users.

“Unless changes are made, we will prevent Amazon from monetizing one of the largest social media platforms in the world.”

The coalition is pushing for the firm’s workers to get a minimum hourly wage of $30, improved medical leave and easing of productivity requirements.

The group is also calling on Amazon, which has long resisted unionization efforts in its US facilities, to stop its opposition.

“We have always known how essential creators are to the Amazon marketing model,” Gen-Z for Change director of strategy Elise Joshi told AFP on Monday.

“Creators, especially TikTok creators, are the gateway to young people; we are reclaiming that power,” the 20-year-old added.

An Amazon Influencer Program launched five years ago offers creators at TikTok, YouTube, Instagram and other social media platforms ways to make money by recommending products in posts and steering buyers to the e-commerce service.

Some, but not all coalition members — who began last week refusing to do business with Amazon, including direct sponsorships and use of the e-commerce titan’s storefront — were associated with that partnership initiative.

– ‘Comfortable pace’ –

The demands sought in this case are those put forth by labor organizers who early this year won a vote to launch the first union shop at one of Amazon’s US warehouses.

The second largest employer in the United States behind retail mega-chain Walmart, Amazon has fiercely opposed attempts to unionize workers.

“The health, safety and welfare of our employees is our top priority,” Amazon spokesman Paul Flanigan said in response to an AFP inquiry.

“We are committed to giving our employees the resources they need to be successful, creating time for regular breaks and a comfortable pace of work,” he added.

Amazon has invested billions of dollars in safety measures, technology and more intended to protect employees, Flanigan said.

Joshi dismissed Amazon’s response as “boilerplate” and hoped it would inspire social media influencers to get involved in the campaign.

– TikTok activism –

Gen-Z for Change organizers reasoned that the power to reach tens of millions of young internet users comes with responsibility to advocate for social justice.

“We feel obligated because we have a large platform and a passion for equity,” said 19-year-old Connor Hesse, a content specialist at Gen-Z for Change and TikTok creator with some 2.3 million subscribers.

Mobilizing on social media for Amazon employee rights can prompt other companies to improve worker conditions to avoid being targets of similar campaigns, argued Aly, a TikTok creator behind the account usa.mom.in.germany.

Gen-Z for Change has aimed pro-labor campaigns at coffee chain Starbucks and Kroger supermarket group.

TikTok users in 2020 took credit for duping former US president Donald Trump into bragging that an election rally in Oklahoma was going to be overflowing because of online ticket requests, only to have him met with a below-capacity audience.

Fox News boss Lachlan Murdoch has launched legal proceedings against Australian media outlet Crikey, accusing the site of defaming him in an opinion piece about the January 6 US Capitol riots.

The lawsuit was filed late Tuesday in Australian federal court, a day after Crikey made public a cache of legal letters sent by Murdoch’s lawyers since the article’s June publication and dared the media scion to sue it.

Crikey even took out an advert in the New York Times on Monday, publishing an open letter that welcomed the opportunity to “test this important issue of freedom of public interest journalism in a courtroom”.

Murdoch is chief executive of media behemoth Fox Corporation and co-chairman of News Corp.

He is the eldest son of billionaire media tycoon Rupert Murdoch, owner of scores of outlets including Fox News, The Wall Street Journal and the New York Post.

Crikey’s article — headlined “Trump is a confirmed unhinged traitor. And Murdoch is his unindicted co-conspirator” — did not name the younger Murdoch directly.

However, it did refer to the “Murdochs and their slew of poisonous Fox News commentators” in its final paragraph.

Murdoch’s lawyers claimed in letters to Crikey that their client was defamed 22 times in the article and its social media posts.

While Crikey initially deleted the article on the day it was published as a “goodwill gesture” after Murdoch’s lawyers made contact, the piece was reinstated amid the legal wrangling.

Crikey editor Peter Fray and chairman Eric Beecher said Wednesday that the site “stands by its story”.

“We look forward to defending our independent public interest journalism in court against the considerable resources of Lachlan Murdoch,” they said.

“We believe that coverage of the events of January 6 at the US Capitol, and the role of Fox News in those events, is absolutely legitimate.”

Murdoch’s representatives were also approached for comment.

The story has made waves in Australia, where the Murdoch family remains a major player in the local media despite its global expansion.

Former Australian Prime Minister Malcolm Turnbull even weighed into the saga Wednesday saying he was “very surprised” by Murdoch’s decision.

“I think it’s hypocritical,” he told radio show RN Breakfast, adding that the Murdochs were “always bleating about freedom of speech, and how the defamation laws are too harsh.”

Australia’s tough libel laws offer few protections to the media and have earned the country the nickname “the defamation capital of the world”.