China News - 11 October 2022
International
GCHQ chief Sir Jeremy Fleming: We must invest more to counter China’s tech dominance. Britain is at a “sliding doors moment in history” where now is the time to act to tackle China’s manipulation of technology or face the consequences later, according to Sir Jeremy Fleming, the director of GCHQ. In a speech at the RUSI Annual Security Lecture in London, Fleming will warn that the Chinese leadership is seeking to use technologies such as digital currencies and its Beidou satellite navigation network to tighten its grip over its citizens at home, while spreading its influence abroad. The Times, Evening Standard, 10 October
China calls for de-escalation of war in Ukraine after Crimea bridge attack. China has offered a muted response to a blast that crippled the Crimean Bridge and the subsequent shelling of Ukrainian cities. However, foreign ministry spokeswoman Mao Ning did say that Beijing ‘is in communication with all parties’ and willing to play a constructive role to de-escalate the situation. SCMP, 10 October
China has chilling plans for governing Taiwan. Chinese leaders have drawn a bleak lesson from anti-government protests in Hong Kong in 2019, namely that to secure a territory exposed to years of Western freedoms, half-measures will not do. They stand ready to crush Taiwan’s thriving multiparty democracy and “re-educate” the island’s 23m people. China has another goal: to ensure that America is blamed for the turmoil of a Taiwan crisis. The Economist, 10 October
Germany’s Scholz to travel to China on November 3-4. German Chancellor Olaf Scholz is planning to travel to China after the 20th Party Congress, making him the first G7 leader to visit the People's Republic since the start of the coronavirus pandemic, two officials with knowledge of the travel plans told Politico. Politico, 10 October
Hong Kong leader says "no legal basis" to act on Russian superyacht. Hong Kong authorities were criticised by the US State Department for allowing a luxury yacht belonging to sanctioned Russian oligarch Alexey Mordashov to dock in Hong Kong waters last week. Reuters, 11 October
Boeing 737 MAX makes first commercial flight in Chinese skies since 2019. WSJ, 11 October
Breakthrough by Chinese scientists puts hypersonic weapons on PLA aircraft carriers. SCMP, 11 October
China focus - 20th Party Congress
China property crisis spoils Communist party’s moment of triumph. Attempts to reduce debt at real estate developers from the middle of 2020 onwards coincided with the emergence of the property crisis and sparked fears over the companies’ inability to access funding. For now, the question is whether Chinese policymakers will signal that they are sticking to that principle for the next five years. FT, 11 October
China sweeps away officials’ jobsworth culture. Following widespread complaints from the public about a lack of politeness and poor levels of customer service amongst public officials, Beijing is drafting a code of conduct for staff in the capital that will forbid government workers from throwing documents at members of the public and ban them from uttering certain phrases. The Times, 10 October
China must stick with Covid Zero policy, People’s Daily says. Bloomberg, 11 October
Economy & tech
China’s third-quarter GDP growth projected at 3.5 per cent amid ‘inescapable’ economic pressure. Economists expect that China’s economy grew by 3.5 per cent during the recently ended third quarter, and more must be done to restore market confidence and avoid ‘persistent and structural economic damage’. SCMP, 11 October
How Biden’s chip actions may be broadest China salvo yet. The sweeping curbs on the way chip companies do business with China’s tech industry threaten to disrupt a global economy already dealing with a potential recession, soaring inflation and lingering supply snarls. Bloomberg, 10 October
China's electric car market is booming but can it last? BBC, 11 October
HSBC expands China private banking network, launches in two new cities. Reuters, 11 October
Long reads & opinion
The world according to Xi Jinping. What China’s ideologue-in-chief really believes. Kevin Rudd. Foreign Affairs, 10 October
The CCP’s 20th Party Congress: What to look out for. Xi’s report to the 20th Party Congress will set out the guiding principles of ideology and policy. Charles Parton. Council on Geostrategy, 10 October
Xi Jinping is a captive of the Communist Party too. Kerry Brown. NYT, 10 October
The real reasons why Western companies chase Chinese sales. Things are seldom as they seem. FT, 11 October