China News - 10 October 2022
International
US hits China with sweeping tech export controls. The US has introduced sweeping export controls that will severely complicate efforts by Chinese companies to develop cutting-edge technologies with military applications, in one of the toughest actions President Joe Biden has taken against China. The commerce department announced that semiconductors made with US technology for use in AI, high-performance computing and supercomputers can only be sold to China with an export licence — which will be very difficult to obtain. Shares in top Chinese chipmakers shed $7.7bn in market value on Monday. FT, WSJ, 7 October
Confucius Institutes in universities ‘part of Party’s propaganda system’, report finds. Only four of the 30 Confucius Institutes in the UK are solely providing “cultural and language” education, according to a new report. The majority of the institutes are conducting other activities, including political lobbying and the facilitation of technology partnerships. Prime Minister Liz Truss reportedly forced the Department for Education into a climbdown over the weekend, after it issued a surprise statement backing the controversial Confucius Institutes. The Telegraph, 9 October
China on high alert as Covid cases rise ahead of Communist party congress.
On Sunday, China reported more than 1,700 cases over the previous 24 hours, more than triple the figure from the previous week. The growth in infections follows a week-long national holiday as travellers returned from tourist spots with Covid outbreaks. Beijing has tightened interprovincial travel to prevent residents from returning from their holidays. FT, 8 October
Elon Musk suggests making Taiwan a ‘special administrative zone’ similar to Hong Kong. In an interview with the Financial Times, the world’s richest person caused controversy by suggesting tensions between China and Taiwan could be resolved by handing over some control of Taiwan to Beijing. Musk made the suggestion when asked by the newspaper about China, where Tesla operates a large factory in Shanghai. The Guardian, 8 October
China hails Elon Musk’s proposal for Taiwan unification. Bloomberg, 9 October
Tesla sells record China-made vehicles in September. CNBC, 10 October
War with China 'absolutely not an option', says Taiwan president. In her national day speech, Tsai Ing-wen pledged to boost the island's defences and reiterated her willingness to talk to Beijing. She added that Taiwan would show the world it is taking responsibility for its own defence. Sky News, 10 October
UK may join trans-Pacific free trade pact this year: Japan minister. Members of the CPTPP could agree in principle to allow Britain to join as a new member this year, using the European country's case as a model for future aspirants, Japan's economic minister Daishiro Yamagiwa said on Saturday. Nikkei Asia, 8 October
China ‘began stockpiling PPE months before Covid outbreak’. China began severely restricting the export of personal protective equipment (PPE), such as gowns and masks, months before notifying the world of the outbreak of Covid-19, according to a new investigation by former US officials. The Telegraph, 8 October
Hong Kong detains first teenagers under national security law. BBC, 8 October
UK 'dragging its heels' over trade links to forced labour in China. Sky News, 9 October
Economy & tech
UK and US meet to make positive progress on data and tech. UK Digital Secretary Michelle Donelan and US Secretary of Commerce Gina Raimondo paved the way for a new data adequacy agreement in the coming weeks as they met to discuss a range of digital issues. Data adequacy agreements allow personal data to be transferred freely from the UK to countries with high protection standards. Gov.uk, 7 October
China announces latest easing of foreign investment rules. Service sectors, including tourism and elderly care, in some of China’s largest cities, will be allowed to open to foreign investment, the State Council announced on Saturday. SCMP, 9 October
Cathay Pacific expects reduced flying for at least two more years. FT, 9 October
Cutting-edge British chip designer Sondrel plans float to fund expansion. The Times, 7 October
China focus - 20th Party Congress
Xi Jinping briefs Communist Party inner circle in countdown to landmark national congress. President Xi Jinping briefed all of the roughly 370 full and alternate members of the Central Committee – the party’s inner circle of power – on the work report he will deliver when the congress gets underway next weekend. SCMP, 9 October
China’s top leaders are set for a reshuffle. Here are the names to watch. CNBC, 9 October
How retired party officials make themselves heard in China. The Economist, 8 October
Opinion & editorial
Editorial: A new model for Chinese growth. Consumers need to be empowered to spend more and save less. FT, 9 October
Editorial: We should turn China’s tactics to our own advantage. Bursts of antagonism from leaders who have to grapple with re-election are not the way to contain a strategic rival. The Sunday Times, 9 October
Coronation of a not-so-great dictator: shine has come off China’s Xi. Ian Williams. The Sunday Times, 9 October
Long reads
What to watch for at the 20th Party Congress: The Work Report. The Party Congress work report will set the tone for China’s goals and priorities for the next five years. Shannon Tiezzi. The Diplomat, 9 October
America’s Brain Drain. A new study finds that Chinese academics are departing the United States at an accelerating pace. Eliot Chen. The Wire, 9 October
“With a little help from my friends”: China turns to Africa to bolster food security. Aya Adachi and Francesca Ghiretti. MERICS, 7 October
Defiant Taiwan's identity is moving away from China. Rupert Wingfield-Hayes. BBC, 10 October