China News - 1 December 2022
The daily newsletter will be taking a break next week and will return to inboxes on Monday 12th December.
International
China signals ease in Covid policy after mass protests. China’s top zero-Covid enforcer says the fight against the virus has entered a “new stage” while state media has downplayed its risks, bolstering expectations that Beijing is easing its anti-pandemic approach just days after a wave of unrest. Vice-premier Sun Chunlan said on Wednesday that the Omicron variant was becoming “less pathogenic”, as lockdown restrictions were eased in parts of Guangzhou despite high case numbers. BBC, The Guardian, 1 December
NATO debates measures to confront ‘challenge’ from China. NATO countries have discussed economic measures to contain the “challenge” posed by China to the western military alliance. Foreign ministers from the alliance on Wednesday discussed potential action, including export controls and ways to protect strategic infrastructure from Chinese investment. FT, 30 November
China mourns former leader Jiang Zemin as netizens bypass censors. Chinese newspapers turned their front pages black on Thursday and flags were put at half mast in mourning for the death of former president Jiang Zemin. The Communist Party's official People's Daily devoted its whole front page to Jiang, and carried a large picture of him wearing his trademark "toad" glasses. Knowing that tributes to Jiang will likely be censored or filtered, some Chinese web users have had to coin nicknames to mark his legacy. Reuters, 1 December
Hong Kong withholds British lawyer’s visa, delaying Jimmy Lai trial. Hong Kong has temporarily blocked top British human rights lawyer Timothy Owen KC from representing jailed pro-democracy activist Jimmy Lai, in a trial stymied by delays and calls for an intervention from Beijing. Lai faces a possible life sentence if convicted under Hong Kong’s national security law. The Guardian, 1 December
Decision on Chinese embassy site in Tower Hamlets expected today. A decision on what would be one of the world’s largest diplomatic bases in the world is due to be made by Tower Hamlets Council’s planning committee today. Residents have urgently called for the government to clarify what their rights would be if the controversial development is given the go-ahead at the former Royal Mint complex. Evening Standard, 30 November
China's Xi discusses Ukraine, trade, Taiwan with EU's Michel. Chinese President Xi Jinping urged efforts to resolve the war in Ukraine during talks with European Council President Charles Michel, as Beijing sought to address one of its biggest friction points with Brussels. Chinese state broadcaster CCTV said that China hopes to strengthen strategic communication and coordination with the EU. Independent, 1 December
Chinese students and young workers look to Hong Kong for a better future. Beijing’s zero-Covid policy fuels an increase in people moving to the former British colony. FT, 1 December
China’s Xi eyes ‘closer energy partnership’ with Russia as Putin praises their ‘evolving’ economic cooperation. SCMP, 30 November
Economy & tech
Apple supply chain data shows receding exposure to China as risks mount. A Reuters analysis of Apple's supply chain data shows China's prominence in the company's global manufacturing is declining: In the five years to 2019, China was the primary location of 44% to 47% of its suppliers' production sites, but that fell to 41% in 2020, and 36% in 2021. Reuters, 30 November
China’s manufacturing activity contracts again. Activity in China’s manufacturing sector contracted for the fourth straight month, as Covid-19 outbreaks across the country and stringent measures to contain infections continued to dampen both supply and demand, a Caixin-sponsored survey showed Thursday. Caixin, 1 December
Chinese property developers plan private placements after ban lifted. Chinese property developers including Shanghai-headquartered Shimao Group have announced they will sell shares through private placements after regulators scrapped a decade-old ban on such deals. FT, 30 November
Japan manufacturers to reduce reliance on China suppliers: Nikkei survey. Nikkei Asia, 1 December
Long reads & opinion
Toad King vs. Pooh Bear: Jiang Zemin’s death spells trouble for Chinese ruler Xi Jinping. The risk is that a new generation of malcontents will latch on to Jiang as a symbol of opposition to Xi’s more repressive rule. Jamil Anderlini. Politico, 30 November
India’s plan to take on China as south Asia’s favourite lender. Benjamin Parkin and Chloe Cornish. FT, 1 December
The New Geopolitics of Global Finance. The global balance of payments only adds up if the G-7's geopolitical rivals are also its bankers. Brad W. Setser. Council on Foreign Relations, 30 November
Towards the Sunak doctrine? James Rogers. Council on Geostrategy, 30 November