China News - 11 January 2022
Upcoming event: The CPTPP, UK and China. Join Wendy Cutler, Vice President at the Asia Society Policy Institute (ASPI), and David Henig, co-founder of the UK Trade Forum, for a discussion of how the UK will benefit from joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and whether China may also be allowed to join. This virtual event on 20 January will be chaired by Andrew Bowie MP. Register here.
International
British Minister for Asia Amanda Milling embarks on Southeast Asia tour. Milling met with the British Chamber of Commerce in Cambodia to discuss opportunities and challenges for UK businesses and highlighted the significance of the UK’s commitment to boosting trade with Cambodia and the rest of Southeast Asia. The trip is also expected to include discussions on tackling Covid and climate change and Britain’s role as an ASEAN dialogue partner. The Phnom Penh Post, 11 January
Xinjiang anti-terror general to lead China’s Hong Kong garrison. Peng Jingtang, a general who led China’s anti-terrorism special forces in Xinjiang, has been named as the new chief of the People’s Liberation Army’s garrison in Hong Kong as Beijing toughens its rule in the international business hub. The Guardian, The Times, 10 January
Intel deletes mention of Xinjiang in letter after China backlash. US chipmaker Intel deleted references to Xinjiang from an annual letter to suppliers after the company faced a public backlash for asking suppliers to avoid the sanctions-hit region. Multinational companies continue to come under pressure as they aim to comply with Xinjiang-related trade sanctions while continuing to operate in China. The Guardian, 11 January
Elon Musk accused of dancing to Beijing’s tune to build Tesla. The Telegraph, 10 January
Gulf ministers visit China to discuss strengthening energy ties. China welcomed four Gulf states to a four-day summit in Beijing yesterday as they looked for new security guarantees in the face of uncertainty about Washington’s reliability. China accounted for a sixth of the Gulf Cooperation Council’s oil purchases before the pandemic. The Times, Al Jazeera, 10 January
China offers Kazakhstan security support, opposes 'external forces'. Wang Yi, China’s foreign minister, said in a call to Kazakhstan's foreign minister Mukhtar Tileuberdi that China is willing to increase "law enforcement and security” cooperation. Reuters, 10 January
Over a thousand UK Hong Kongers gather during human chain protest in Kingston. South West Londoner, 10 January
India considers easing curbs on some Chinese investments. Reuters, 11 January
Ecuador President Lasso to visit China in February for debt negotiations. Reuters, 10 January
Economy & tech
Beijing vows to speed up investment in effort to stabilise growth. China's State Council urged faster implementation of key 14th five-year plan projects as fresh Covid outbreaks add to headwinds for an economy hampered by weak private consumption and a housing market slump. Bloomberg, 10 January
Chinese developer Shimao plans fire sale after downgrade and missed payment. Fears over contagion mount as Shimao Group Holdings, which is in the top dozen Chinese property companies, is running out of cash to pay its debts. The Guardian, 11 January
Evergrande switches headquarters building in cost-saving move as financial pressures mount. BBC, SCMP, 11 January
Taiwan’s exports to mainland China, Hong Kong hit record high as semiconductor demand fuels cross-strait trade. US sanctions have led to a significant increase in mainland demand for Taiwan’s chips, and strong demand will continue until the mainland’s chip technology is upgraded. SCMP, 10 January
China venture funding hits record $131 billion despite crackdown. Bloomberg, 9 January
As China’s Covid-19 test kit orders surge globally, manufacturers are hiring en masse to meet demand. SCMP, 10 January
China focus
China plans its first ‘free data port’ in Guangzhou as Beijing eyes control over cross-border information flows. The Nansha International Data Free Trade Port, identified as a key digital infrastructure project by local and state governments last year, is expected to play an important role in future data exchanges between China and the outside world amid tighter regulations. SCMP, 11 January
Chinese education group New Oriental lays off 60,000 workers in wake of profit ban. The New York-listed education group has pivoted to find new revenue streams, including summer camps, dancing and drawing classes and establishing courses for overseas foreigners to learn Mandarin. FT, 10 January
China locks down third city, raising affected to 20 million. Independent, 11 January
Opinion & editorial
Trade in 2022 - a minefield awaits. Choked-up ports, big-power rivalries and climate change - Alan Beattie outlines trade challenges for 2022. FT, 10 January
UK joined AIIB to serve its own interests, not to back China. Hui Qing. Global Times, 10 January
Xi’s way or the highway: how and why China brings global businesses to heel. Josh Cole. Nouse (University of York), 10 January
For Chinese, rising rent isn’t just a financial problem. The past year’s rent spikes threaten urbanites’ happiness and faith in social justice. Xiang Jun. Sixth Tone, 10 January
Long reads
China applies brakes to Africa lending. Beijing has signalled a more cautious approach amid warnings that several African countries could struggle to repay debts. Kathrin Hille and David Pilling. FT, 11 January
Will China’s railway in Laos help bolster its ‘soft power’? The inauguration of the long-promised rail line offers Beijing a chance to burnish its image in mainland Southeast Asia. Daniele Carminati. The Diplomat, 11 January
Personal brands for Party agendas. In a bid to advance Chinese government narratives more credibly overseas, state media have encouraged more “flexible and personalised” use of the individual accounts of their employees on platforms such as Twitter and Facebook. China Media Project, 7 January
India-China tensions flare up again over border issues and Tibet. Ananth Krishnan. SupChina, 10 January