China News - 10 November 2021
New report: Yesterday we launched a new policy briefing on critical minerals.
Net zero pledges being made at COP26 won’t be achieved without a reliable supply of critical minerals. Yet one nation has a huge head start: China still dominates the refining and processing of up to 90% of world supply. Global competition for critical minerals is heating up, and the UK risks being left behind. Read the full briefing here.
COP26
PM calls on nations to pull out the stops as draft agreement published. The first draft of an agreement setting out how countries will cut emissions to avoid temperature rises of above 1.5C has been published by the UK Cop26 presidency - it will have to be negotiated and agreed upon by countries attending the talks. BBC, Evening Standard, 10 November
Rolls-Royce gets funding to develop mini nuclear reactors. The new Rolls-Royce Small Modular Reactor (SMR) business has been backed by a consortium of private investors and the UK government to develop small nuclear reactors to generate cleaner energy. At an expected cost of around £2bn each, SMRs would cost less than the £20bn each for the larger plant under construction at Hinkley Point and an anticipated sister plant at Sizewell in Suffolk. BBC, 9 November
China’s top Cop26 delegate says it is taking ‘real action’ on climate targets. Xie Zhenhua, China’s veteran chief official, said: “President Xi announced recently on many multilateral occasions China’s specific targets and concrete policies, measures and actions. We have a policy framework to ensure that we can achieve our climate target.” The Guardian, 10 November
Asia coal power pipeline to shrink by two thirds after China finance cut. Reuters, 10 November
Other international
EU lawmakers raise alarm on China’s efforts to ‘interfere in European democracies’. At a hearing in Brussels on Tuesday, a special committee looking at outside interference and disinformation at the European Parliament urged the European Union to do more to counter the perceived threat, demanding a special task force be established for “monitoring interference coming from China”. SCMP, 9 November
Hong Kong prosecutors cite Dominic Raab comments in bid to deny bail for Apple Daily boss. Hong Kong newspaper executive, Cheung Kim-hung, on trial for national security offences, had his bail denied in part because of comments made by the then Foreign Secretary after his arrest, which prosecutors cited as evidence of a “close association” with foreign political groups. The Guardian, 10 November
Xi says China is ready to work with US to manage differences. Ahead of a virtual meeting with US President Joe Biden - which could be held next week - Xi said China was ready to cooperate with the United States on regional and global issues on condition of “mutual respect”. CNBC, Reuters, 10 November
Mines and speedboats: How Taiwan plans to repel a Chinese invasion. The island is adopting asymmetrical warfare strategies to strike an increasingly powerful Beijing where it is most vulnerable - at sea. The Telegraph, 9 November
US Holocaust museum says China ‘may be committing genocide’ against Uyghurs. NYT, Al Jazeera, 10 November
US Congress group makes surprise trip to Taiwan. SCMP, 9 November
Economy & tech
Shein: The secretive Chinese brand dressing Gen Z. The popularity of the Chinese fast fashion firm has exploded during the pandemic, but its use of customer data has sparked concerns in the UK. CRG Chair Tom Tugendhat commented: "Millions of people are signing away their personal data for cheap clothes." BBC, 10 November
China inflation: consumers set to feel ‘stronger’ knock-on effect of rising factory-gate prices. As factory gate prices in China rose at their fastest pace in 26 years, there are early signs that upstream producers may have started to pass on rising costs to downstream businesses, although analysts do not expect this to be a long-term trend. FT, Reuters, SCMP, 10 November
China property crash risks $1 trillion hit to global growth. Trading partners are exposed to a sharp downturn that could shake the world economy, with economists estimating that a slowdown in China’s property market is likely to wipe 0.5% off the growth rate of the $95 trillion global economy. The Telegraph, 9 November
TSMC partners with Sony on its new $7 billion chip factory in Japan. The new plant will focus not on cutting edge chips but rather older 22nm and 28nm processes in an effort to meet supply shortfalls for older chips have has steadily impacted everything from cars to smartphones. Reuters, The Verge, 10 November
US extends ban on securities investments in companies linked to China military. Reuters, 9 November
Alibaba focuses on sustainability, inclusiveness for Singles’ Day 2021. RADII, 9 November
Tencent joins forces with Apple Music to bring Chinese artists to global listeners. SCMP, 9 November
China focus
As the CCP’s Sixth Plenum continues behind closed doors, Eurasia Group’s Neil Thomas unpacks how Chinese state media has covered key developments at the conference:
Intense rainfall and extreme weather become the norm in northern China. Meteorologists link such weather patterns to the climate crisis, which exacerbates the frequency and severity of climatic extremes and variations. The Guardian, 9 November
Chinese city says it mass tested 30,000 for COVID-19 at mega centre; SARs expert criticises zero-Covid tact. Reuters, SCMP, 10 November
Opinion & editorial
Sixth plenum: with Xi at the helm, a new era when China becomes strong. Robert Lawrence Kuhn. SCMP, 10 November
Zero-COVID policy will lead China to reopen borders at lower cost in the end. Hu Xijin. Global Times, 9 November
The developing world is falling short on emissions reductions. Jeffrey Ball. NYT, 9 November
Longer reads
The world is fed up with China’s belligerence. Democracies are no longer as worried as they once were about offending a fragile Beijing. Chris Horton. The Atlantic, 9 November
Introducing the new Beijing Stock Exchange. China’s third stock exchange is geared toward financing start-ups, but it is unlikely to prevent overseas listings. Sara Hsu. The Diplomat, 9 November
China’s influence and operating of the main European ports. Nadia Helmy. Modern Diplomacy, 9 November
COP26 is silent on human rights in China. Nithin Coca. Foreign Policy, 9 November