China News - 10 November 2022
International
Biden aims to avoid concessions to Xi at G20. US President Joe Biden vowed to make no “fundamental concessions” as he prepares for an in-person summit with China’s Xi Jinping, reinforcing already low expectations for a major reset in relations between the world’s two largest economies. The two presidents are expected to seek stability rather than a reset in relations when they meet next week on the sidelines of the G20 summit in Bali - their first encounter since Biden took office. Bloomberg, 9 November
Trade Minister Greg Hands has arrived in Phnom Penh for an ASEAN-UK economic consultation. Last year, the UK became the first dialogue partner ASEAN has included in 25 years:
China seeks upgrade of massive trade zone with Southeast Asian nations. Officials in Beijing have told state-run media they will approach leaders in the Association of Southeast Asian Nations (ASEAN) bloc this week about accelerating negotiations for what they call the ASEAN-China Free Trade Area “Version 3.0”. The move will be a potential boost to the stability of Beijing’s manufacturing supply chains. SCMP, 10 November
China will support climate damage mechanism but not with cash. China would be willing to support a mechanism for compensating poorer countries for losses and damage caused by climate change, its climate envoy Xie Zhenhua said at the COP27 climate summit in Egypt, but Beijing later said that would not involve contributing cash. China is unlikely to update its pledge of reaching peak emissions before 2030 and becoming carbon neutral before 2060. Reuters, 9 November
Germany blocks another Chinese acquisition of a chip company. Robert Habeck, economy minister, announced the decision on Wednesday, but declined to name the company affected. A person familiar with the matter said it was ERS Electronic, a tech group based in Bavaria that was to have been acquired by a Chinese investor. Meanwhile, Germany’s self-styled “China City” Duisburg has halted its controversial smart cities collaboration with Chinese tech giant Huawei. FT, 9 November
China ‘increasingly disruptive global power’, says Canadian foreign minister. Mélanie Joly has said China has become “increasingly disruptive” on the world stage as she hinted in a speech at a new Indo-Pacific strategy expected to be released this month. The Guardian, 9 November
China given advantages in loan for Kenyan rail project, contract shows. SCMP, 10 November
China’s manufacturing hub Guangzhou locks down millions as Covid outbreak widens. CNN, 10 November
Economy & tech
Leading chipmaker TSMC eyes multibillion dollar Arizona factory expansion. TSMC plans in the coming months to announce it will build a cutting-edge semiconductor plant north of Phoenix, according to WSJ sources. The scale of the investment is expected to be roughly similar to the $12 billion it committed two years ago, with the new facility manufacturing so-called 3-nanometer transistors, some of the tiniest and most lightning-fast currently possible WSJ, 9 November
Apple limits iPhone file-sharing tool used for protests in China. Apple has limited the AirDrop wireless file-sharing feature on iPhones in China after the mechanism was used by protesters to spread images to other iPhone owners. Bloomberg, 10 November
China’s economic tsar sends rare public message, warnings to future policymakers. Vice Premier Liu He - instrumental in the development of China’s economy over the past decade - reiterated the importance of boosting domestic demand and making supply-side reforms, but not reverting to full isolationism. SCMP, 10 November
Xi Jinping urges global tech cooperation as IBM, Intel, Cisco CEOs attend China’s internet conference. SCMP, 9 November
China focus
Bao Tong, former top aide of Chinese leader Zhao Ziyang, dies at 90. Bao Tong, the most senior Chinese Communist party official jailed over the Tiananmen pro-democracy movement, has died four days after his 90th birthday. The Guardian, 9 November
In China, a new generation of climate activists suddenly emerges. Young Chinese are increasingly moving into environmental campaigning — a reaction to the growing impact of global warming on China, but also the shrinking space for feminist and labour rights groups. Sixth Tone, 9 November
Long reads & opinion
Why Australia is gearing up for possible war with China. There is an increasing understanding in Canberra that a conflict over Taiwan would hit very close to home. Hal Brands. Bloomberg, 9 November
China’s dominance over critical minerals faces new challengers. Although slow to wake up to the challenge, the West is catching up with China in the contest for critical minerals. Bruce Shen. The Diplomat, 9 November
Geopolitics in the Himalayas: Towards a British strategy. Gray Sergeant. Council on Geostrategy, 9 November
The weakness behind China’s strong façade. Xi’s reach exceeds his military’s grasp. Bonny Lin and Joel Wuthnow. Foreign Affairs, 10 November