China News - 10 March 2022
International
Ukraine invasion: Two UK Huawei directors resign after company keeps silent on Russian attack. Andrew Cahn and Ken Olisa quit British unit’s board after asking Huawei to publicly condemn Russian invasion of Ukraine. SCMP, 10 March
Australia to boost size of military in biggest move since Vietnam War. Australian Prime Minister Scott Morrison announced that Australia will boost its defence forces by 30% to nearly 80,000 troops by 2040, at a cost of some A$38 billion (£21.1 billion). The Telegraph, 10 March
South Korea’s president-elect Yoon Suk-yeol vows tougher stance on North Korea, reset of ties with China. Opposition candidate Yoon is seen as tougher on foreign policy than current liberal leader Moon Jae-in, and has vowed a reset of relations with Beijing. China is South Korea’s largest trading partner. SCMP, BBC, 10 March
Ukraine war likely to influence China on Taiwan, US intelligence chiefs say. Intelligence officials said China is paying attention to the West’s reaction, and the US response will have had ‘an impact on the Chinese calculus’. FT, 9 March
Nearly 30% think China likely to have spread Covid on purpose, UK poll on conspiracy theories finds. The Guardian, 9 March
Hong Kong protests documentary breaks Taiwan box office record in opening weeks. The Guardian, 10 March
China focus
China wraps up its annual legislative session:
CSIS analysis: The big announcement is China’s economic growth target of 5.5%, which is the top end of projected Chinese growth. Leaders showed little sign of abandoning zero-Covid. Most interestingly, ‘common prosperity’ was barely mentioned - CSIS authors note that short-term goals were emphasised instead.
Economy & tech
London’s nickel market crisis. The London Metal Exchange has halted nickel trading since early Tuesday after a near doubling in price over a few hours. Chinese nickel titan Tsingshan Holding Group, sitting on $8bn of trading losses, was at the centre of the action. Reuters, WSJ, 9 March
Chinese smartphone shipments to Russia plunge as rouble collapses. Chinese brands comprise about 60 per cent of the Russian smartphone market, and shipments have fallen by at least half. FT, 10 March
Ukraine war raises China’s ‘imported inflation’ concern as oil, nickel prices surge. China is the world’s major importer of commodities. SCMP, 10 March
Long reads
The big read: The rising costs of China’s friendship with Russia. The close relationship is coming with a much bigger cost than China ever imagined. FT, 10 March