China News - 1 February 2023
International
NATO chief urges closer ties with Japan to defend democracy. NATO Secretary-General Jens Stoltenberg sharply criticised China on Tuesday for “bullying its neighbours and threatening Taiwan” and stressed the need for Japan and other democracies to work together. He said trans-Atlantic and Indo-Pacific security are “deeply interconnected,” and victory by Russia in Ukraine would send a message that authoritarian regimes can achieve their goals through brute force. AP, 31 January
Australia’s Wong warns regional conflict would be ‘catastrophic’. Australian Foreign Minister Penny Wong has warned about the risk of conflict in the Indo-Pacific as she prepares to meet her British counterpart for defence talks that will likely focus on regional issues including China’s military expansion. She also welcomed the UK’s increased involvement in the Indo-Pacific despite the ongoing focus on the conflict in Ukraine. Bloomberg, 1 February
US and India launch ambitious tech and defence initiatives. The US is launching a series of ambitious technology, space and defence initiatives with India, in an effort designed to counter China in the Indo-Pacific and wean New Delhi off its reliance on Russia for weapons. US national security adviser Jake Sullivan said the Initiative on Critical and Emerging Technologies was part of the US’s strategy to enhance ties with allies and partners across the Indo-Pacific. FT, 31 January
EU sidelined in US-Dutch deal to block chips exports to China. The Netherlands, home to ASML, a world-leading manufacturer of microchip printers, struck a deal in Washington to restrict its sales of advanced microchip manufacturing equipment to China. But it also left its European counterparts reduced to a role of bystander, powerless to intervene, according to Politico. Politico, 31 January
China urges Saudi Arabia to help speed up efforts for Gulf free-trade zone. Chinese Foreign Minister Qin Gang has renewed efforts to boost economic ties with Saudi Arabia, including a push for a China-Gulf free-trade zone “as soon as possible”, as US Secretary of State Antony Blinken began his visit to the region. SCMP, 31 January
Taiwan activates defenses in response to China incursions. Taiwan has scrambled fighter jets and and put navy ships and missile systems on alert in response to nearby operations of 34 Chinese military aircraft and nine warships. Independent, 1 February
Xi encourages Hungarian youths to learn more about China, become ‘envoys of friendship’. Xinhua, 31 January
Economy & tech
China’s factory activity shrinks for sixth straight month. Activity in China’s manufacturing sector contracted for the sixth consecutive month in January, as surging Covid-19 infections disrupted supply, demand and employees’ ability to work, a Caixin-sponsored survey showed Wednesday. Caixin, 1 February
Chinese owner of Lotus Technology to list a stake in US via blank cheque firm. China’s Geely said on Tuesday that it plans to merge electric carmaker Lotus Technology – an offshoot of the Norfolk-based sports car brand – with a special purpose acquisition vehicle founded by L Catterton, which is backed by LVMH and its billionaire founder, Bernard Arnault. The Guardian, 31 January
Ontario teachers’ $181 billion pension fund pauses private China deals. Bloomberg, 1 February
UK Government to keep measures on imports of Continuous Glass Fibre from China. Gov.uk, 31 January
Long reads & opinion
CCP Inc.: The reshaping of China's state capitalist system. Barry Naughton and Briana Boland. CSIS, 31 January
Democracies embrace economic security to counter China and Russia. Bethany Allen-Ebrahimian. Axios, 31 January
Why Chinese intimidation unites South Korea but divides Taiwan. Dr Christopher Carothers. USCPM, 31 January
Lula and Latin America’s great China debate. Great power competition is increasingly playing out in Latin America. Filipe Porto. The Diplomat, 31 January