China News - 12 January 2022
The UK must abandon ‘democratic defeatism’ if it’s to stand up to China. CRG Chair Tom Tugendhat MP says that Beijing’s selective application of international rules is changing the world for the worse and that Britain must deepen protection at home and cooperation abroad. The New Statesman, 11 January
International
Global growth expected to slow, World Bank says. GDP will drop from 5.5 per cent in 2021 to 4.1 per cent in 2022 and 3.2 per cent the following year, the bank said in its latest report. The rapid spread of Omicron suggests that the pandemic will continue to disrupt growth in the short-term, while slowing growth in major economies such as the United States and China will reduce demand for goods produced by developing economies. The Times, 11 January
MPs call for UK to consider HSBC sanctions over links to Uyghur oppression. A group of MPs will write to the Treasury to ask them to take action against HSBC, according to City A.M., after it was revealed the British bank is holding £2.2m of shares in a subsidiary of Xinjiang Tianye Group. Business secretary Kwasi Kwarteng addressed the issue in parliament yesterday, saying “the Treasury has direct ownership of that relationship and it’s something I’m discussing with the chancellor of the Exchequer”. City A.M., 11 January
Tower Hamlets mulls name changes for roads around new Chinese Embassy. Local councillors in the London borough of Tower Hamlets are pushing to rename the roads directly surrounding the three buildings that will comprise the embassy to assert “support for the freedom and diversity of our borough”, according to various reports. It has been reported that proposed names include Tiananmen Square, Uyghur Court, Hong Kong Road and Tibet Hill. City A.M., 10 January
Hong Kong
Hong Kong’s brain drain worsens as expats, locals flee city. An exodus of expatriates and locals is set to intensify in 2022 due to Beijing’s influence in education, markets, and business and strict Covid policies. Bloomberg, 10 January
Western-style democracy ‘would doom Hong Kong to chaos’, Chinese officials say. Wang Zhenmin, head of the Institute of State Governance and director of the Centre for Hong Kong and Macau Studies at Tsinghua University, said socioeconomic problems in the city would “never be solved” if it followed a Western democratic system. SCMP, 11 January
‘We fought the good fight’: journalists in Hong Kong reel from assault on media. The Guardian, 11 January
Tiananmen Square: Exiled activists vow to build memorial in New York. The Times, 11 January
China makes a show of opening up the internet for the Olympics. The Chinese government has promised athletes free access to social media platforms and other websites, but internet use may still be fraught with restrictions and risks. Axios, 11 January
Taiwan, Canada to start talks on investment agreement. While a member of the World Trade Organization, Taiwan's only has free trade agreements with two major economies, Singapore and New Zealand. Reuters, 10 January
Lithuania secures extra $1 billion pledge from Taiwan amid China blockade. Politico, 11 January
Premier League wins £156 million High Court battle with Chinese broadcaster. The Telegraph, FT, 11 January
Scientists believed Covid leaked from Wuhan lab - but feared debate could hurt ‘international harmony’. The Telegraph, 11 January
China meeting Gulf, Iran, Turkey foreign ministers in quick order. Reuters, 11 January
Economy & tech
China Covid-19 lockdowns hit factories, ports in latest knock to supply chains. Toyota, Samsung and Volkswagen are among companies with production affected as economists warn of more challenging bottlenecks ahead. WSJ, 11 January
Volkswagen sells 10,000 fewer electric cars in China as chip crisis hits deliveries. Deliveries to customers in its biggest and most profitable market were hit by semiconductor shortages amid fierce competition from domestic brands such as BYD and Great Wall Motors. FT, 11 January
Tesla sells record number of cars made in China. The Times, 12 January
British fund manager abrdn seeks China wealth management partner. "The change in regulation allowing greater access to the end consumer has made China a much more interesting market for people that want to deploy resources,” said Douglas Flint, chairman of the Edinburgh-based fund manager. Reuters, 12 January
US-China trade tensions threaten Europe's biggest tech company. ASML, a company that builds the machines that make semiconductor chips, has been blocked from selling its most advanced machines to China, hindering its growth plans. Wired, 11 January
Didi struggles with Hong Kong IPO challenges. FT, 12 January
Huawei ranks fifth in US patents in sign of Chinese growth. Bloomberg, 11 January
Alibaba CEO Daniel Zhang quits Weibo board amid government scrutiny on Big Tech. SCMP, 11 January
China focus
China’s Xi Jinping to his top leadership: ‘no mercy’ in fight against corruption. Chinese President Xi Jinping on Tuesday warned the Communist Party’s top provincial and ministerial officials not to waver on anti-corruption efforts and to strictly follow Beijing’s strategic decisions as his administration prepares for this year’s national party congress. SCMP, 12 January
Print more money to fund baby boom, top economist urges China. Ren Zeping, chief economist at SooChow Securities, suggested the creation of a national “birth fund” as a solution to the country’s falling birth rate, only to draw criticism from state media and ridicule from members of the public. The Times, 11 January
Five Mao fanatics jailed over articles ‘smearing former Chinese leaders’. SCMP, 11 January
Opinion & editorial
Fast Retailing: political risk remains biggest challenge to growth. Uniqlo owner’s decision to increase investment in China will require making tough choices. FT, 11 January
The West and China are not ready to talk about nuclear arms controls. China wants to tackle growing risk of nuclear conflict but is reluctant to curb its nuclear weapons programme. Kathrin Hille. FT, 12 January
Covid Zero is no longer a real goal in China. It’s time for ‘dynamic clearing’. Shuli Ren. Bloomberg, 11 January
Long reads
Semiconductor manufacturing: What China really wants. Radomir Tylecote. Council on Geostrategy, 11 January
Taiwan tensions and deepening transatlantic cooperation. Mareike Ohlberg. The German Marshall Fund, 10 January
The race to create a whisky from China, for Chinese people. Jiang Yaling. Sixth Tone, 11 January
The BFPG’s 2022 foreign policy calendar. British Foreign Policy Group, 11 January