China News - 1 March 2023

International

Covid: FBI chief Christopher Wray says China lab leak 'most likely'. FBI Director Christopher Wray has said that the bureau believes Covid-19 "most likely" originated in a "Chinese government-controlled lab". It is the first public confirmation of the FBI's classified judgement of how the pandemic virus emerged and comes a day after the US ambassador to China called for the country to "be more honest" about Covid's origins. BBC, 1 March

China's annual parliament to implement Xi's tightening grip. China's annual parliament opens on Sunday and will implement the biggest government reshuffle in a decade as President Xi Jinping tightens control. The Central Committee of China's Communist Party concluded a three-day plenary session Tuesday, at which Xi explained a draft plan for "reform" of the party and government institutions. Reuters, 1 March

EU Parliament bans staff from using TikTok over ‘cybersecurity concerns’. Following in the footsteps of the European Commission and Council of the EU, Parliament President Roberta Metsola and Secretary-General Alessandro Chiocchetti have told about 8,000 officials they should uninstall TikTok from corporate devices such as mobiles and tablets by March 20. Politico, 28 February

China hits out at US over TikTok ban on federal devices. BBC, 28 February

‘Time is not on our side’: Congress panel says tackling China defines next century. The US Congress must act urgently to counter the economic and national security threats posed by the Chinese government, a bipartisan chorus of lawmakers on a newly created special House committee has warned during an inaugural, primetime hearing. On Tuesday, lawmakers on the committee heard from four witnesses who argued that China had taken advantage of the US. The Guardian, 28 February

Japan defence pacts with UK and Australia move closer to approval. Japan's cabinet on Tuesday approved defence agreements and related legislation with the UK and Australia to smooth the way for closer cooperation that Tokyo hopes will strengthen deterrence against China. Nikkei Asia, 1 March

Belgium’s cyber security agency links China to attack on MP. Belgium’s cyber security agency has linked Chinese state-sponsored hackers to an attack on MP Samuel Cogolati after he wrote a resolution to warn of “crimes against humanity” against Uyghur Muslims in China. FT, 1 March

China spends billions on pro-Russia disinformation, US special envoy says. The Guardian, 28 February

British Museum to address ‘violence’ inflicted on China by Britain in new exhibition. The Telegraph, 28 February

Economy & tech

Chinese factory activity expands at fastest pace in more than a decade. China’s manufacturing sector expanded at its fastest pace in more than a decade in February, in one of the clearest signs that the world’s second-largest economy is shaking off the effects of a nationwide Covid-19 outbreak and years of growth-constraining pandemic curbs. FT, 1 March

Australia blocks Chinese investment in rare earth firm citing national interest. Northern Minerals Ltd on Tuesday said Australia’s government has blocked the heavy rare earths producer’s largest shareholder, China’s Yuxiao Fund, from increasing its investment on the grounds of national interest. Treasurer Jim Chalmers said Australia would become more selective about who it lets invest in its critical minerals industry. Reuters, 28 February

Huawei export licenses could be revoked by US. The Biden administration is considering revoking export licenses issued to US suppliers for sales to Chinese company Huawei, according to people familiar with the matter. The action would cover products that use advanced 5G technology as well as older 4G products. WSJ, 28 February

Shenzhen sets up London Connect link, adding a second transborder funding channel between China and the UK. SCMP, 1 March

Long reads & opinion

There’s one way Xi can show he's serious on the economy. China’s leader needs to take a knife at long last to inefficient state-owned companies. Minxin Pei. Bloomberg, 1 March

Russia turns to China’s yuan in effort to ditch the dollar. Moscow has jettisoned longstanding concerns about giving China too much leverage over its economy. WSJ, 28 February

China’s censorship reaches globally through WeChat. Seth Kaplan. Foreign Policy, 28 February

Could the West ban TikTok for good? Matt Oliver. The Telegraph, 1 March