China News - 12 January 2023
International
US and Japan agree to expand security alliance into space. The US and Japan announced they are extending their security alliance to space amid growing concern about China’s growing economic and military footprint. Both countries have said that an attack in space would trigger their security treaty - China is significantly boosting its satellite presence and growing its military presence in space. The announcement follows UK Prime Minister Rishi Sunak and Kishida signing a Reciprocal Access Agreement, the most significant defence pact between the two nations since 1902. FT, The Guardian, 11 January
China likely to name US specialist as next ambassador to Washington. China is likely to nominate Xie Feng, a vice foreign minister and a US specialist, as its new ambassador to Washington, according to people familiar with the matter, continuing a gradual tempering of the abrasive “Wolf Warrior” style that has defined Chinese diplomacy in recent years. WSJ, 11 January
UK vows no let-up with China after intervention in Jimmy Lai case. Britain will stand up to “Chinese aggression” and defend Hong Kong’s freedoms, Prime Minister Rishi Sunak vowed Wednesday after his government intervened in the case of jailed media tycoon Jimmy Lai. Minister for Asia Anne-Marie Trevelyan met the pro-democracy figure’s legal team on Tuesday, prompting an angry response from the Hong Kong government. HKFP, 12 January
MP calls for review into China semiconductor buyout. Alicia Kearns MP, chairwoman of the foreign affairs select committee, has reiterated calls for a review of the takeover of Cambridge-based semiconductor designer Flusso by a Shanghai shell company with ties to the Chinese state. “We are granting the Chinese Communist Party direct access to one of our leading tech start-ups in an area of vital strategic importance,” Kearns wrote to Grant Shapps, the Business Secretary. The Times, 12 January
Africa should not be arena for international competition, says Chinese foreign minister. Africa should not be an arena for competition between world powers, China's new Foreign Minister Qin Gang said on Wednesday, opening a new headquarters for a pan-African health body at the start of five-country Africa tour. Qin also said that multilateral lenders account for three quarters of Africa’s external debt and should play a bigger role in resolving payment issues. Reuters, 11 January
WHO working with China on Lunar New Year COVID risks. The World Health Organization said it is working with China to manage the risks of COVID-19 surging again as people travel for Lunar New Year celebrations but the country's response continues to be challenged by a lack of data. Reservations for evening meals served during the festival are at 90 per cent of what they were in 2019, the heads of several restaurant chains. Reuters, Yicai, 11 January
Anthony Albanese addresses PNG parliament ahead of new security deal. The Australian Prime Minister is poised to ink a new security deal with his counterpart in Papua New Guinea as Australia looks to counter Chinese influence in the Pacific. The Australian, 12 January
China outbound flight bookings at 15% of pre-pandemic levels. Nikkei Asia, 12 January
China: Five dead after man drives into crowd in Guangzhou. BBC, 12 January
Economy & tech
China eases curbs on property developers to counter downturn. China is moving away from its “three red lines” policy of limiting leverage in the property sector, after its effort to reduce risky lending and real estate speculation helped fuel a wave of defaults and triggered a slump in the property market. Beijing is now easing constraints on developer credit and even rolling out potential loans. FT, 12 January
US senator mulls expanded TikTok bill. Democrat Mark Warner (D-Va.), chairman of the Senate Intelligence Committee, is considering proposing a bill that would go beyond current efforts to ban TikTok in the U.S. by addressing a wider "category of applications," Axios reports. TikTok is facing bipartisan bills that would ban it in the US over concerns that China might spy on American users or manipulate TikTok content. Axios, 11 January
Copper tops $9,000 as China reopening boosts outlook for demand. Bloomberg, 11 January
China digital currency: e-CNY included in official cash figures for first time. SCMP, 11 January
Long reads & opinion
Why did China banish Its chief ‘Wolf Warrior’? Zhao Lijian’s move from foreign ministry spokesperson to a backroom role reflects a diplomatic shift. James Palmer. Foreign Policy, 12 January
What will African leaders seek to gain from welcoming China’s new Foreign Minister? Yixin Yu and Charlie Zong. The Diplomat, 11 January
Caught in the crossfire: Why EU states should discuss strategic export controls. Tobias Gehrke and Julian Ringhof. ECFR, 11 January
Rishi Sunak’s delicate dance on China as tourist chiefs push to welcome Chinese visitors back to UK. Jane Merrick and Hugo Gye. iNews, 11 January