China News - 12 May 2023
International
The Lord Mayor of London to lead the first City delegation to China since the Covid pandemic. Nicholas Lyons and Chris Hayward, the City of London Corporation's policy chairman, will travel to Beijing and other major cities later this month for talks with officials and businesses. Sky News, 11 May
US national security adviser Jake Sullivan meets China’s top diplomat Wang Yi in Vienna. The pair reportedly held ‘constructive’ talks in the highest-level engagement between the two countries since the spy balloon incident in February. Demetri Sevastopulo and Felicia Schwartz. Financial Times, 11 May
Bank runs, cyber security and building reliable supply chains on the agenda at G7 meeting. G7 finance ministers are holding closed-door talks in Japan ahead of summit next week. Elaine Kurtenbach. The Independent, 12 May
US urges ‘co-ordinated action’ by G7 against China’s economic coercion. US Treasury secretary Janet Yellen gave a speech to G7 members in Japan as Washington finalises its new outbound investment-screening mechanism aimed at China. Kana Inagaki, Henry Foy, Sam Fleming and Demetri Sevastopulo. Financial Times, 11 May
EU moves to re-calibrate China strategy. The European Union must adopt a ‘clear-eyed’ but ‘not confrontational’ approach to a China, claims a position paper circulated ahead of talks in Stockholm today. Ministers have been urged to adhere to the 2019 designation of China as a partner, competitor and systemic rival, ‘even if the weighting between these different elements may vary according to China’s behaviour’. Finbarr Bermingham. South China Morning Post, 12 May
UN calls for release of three illegally detained Uyghurs. The UN Working Group on Arbitrary Detention calls for the immediate release of Ekpar Asat, Qurban Mamut, and Gulshan Abbas. Ruth Ingram. The China Project, 11 May
China’s record carbon emissions expected to peak due to clean energy push. China has installed record amounts of solar and wind power capacity, according to a report by the Centre for Research on Energy and Clean Air (CREA),a Helsinki-based think tank. Laura He. CNN, 12 May
Economy & tech
C$158 Billion Canada Pension Manager halts direct investments in China. A senior executive from British Columbia Investment Management Corp. revealed the policy during testimony this week to a Canadian parliamentary committee. Laura Dhillon Kane. Bloomberg, 11 May
China willing to cooperate with US on audit deal. The China Securities Regulatory Commission (CSRC) says it is willing to work with its counterparts in the US to promote regulatory cooperation on audits and safeguard the rights and interests of global investors. Xie Yu. Reuters, 11 May
Volkswagen defends Xinjiang record at turbulent shareholder meeting. Volkswagen defended its decision to jointly own a plant in the Xinjiang region. Investors called on Volkswagen to request its joint venture partner SAIC conducts an independent audit of the Xinjiang plant. Victoria Waldersee and Jan Schwartz. Reuters, 10 May
Merck to build domestic supply chains in China. The German technology group has said it is determined to invest further in China and aims to build domestic supply chains there to hedge against rising tensions between Beijing and Western powers. Reuters, 11 May
Bain & Company offers China staff 6 months of voluntary leave. Some employees have been given the chance to take part in a half-year ‘career enrichment programme’. The move comes after Chinese police visited the American company’s offices in Shanghai and questioned its staff. Tracy Qu. South China Morning Post, 11 May
Tesla to recall over 1.1 million foreign and Chinese-made cars. The models to be recalled include imported Model S, Model X, Model 3 as well as China-produced Model 3 and Model Y, according to a statement by the State Administration for Market Regulation. Reuters, 12 May
Opinion & long reads
‘My time in the UK has been a disaster’: Hongkongers fear deportation after years left in limbo. As of December 2022, there were 160 Hongkongers in the UK awaiting decisions on their asylum applications, more than double the number in December 2020. Amy Hawkins and May James. The Guardian, 12 May
$10,000 an Hour Bought Inside Line on China—and Now Risks Jail. Crackdown threatens not just Capvision but a whole supply chain of information that overseas investors, Chinese banks and foreign businesses have come to depend on. Dan Strumpf and Selina Cheng. The Wall Street Journal, 12 May
Pentagon chiefs: Debt default is bad for troops, good for China. US Defense secretary warns that breaching the government’s borrowing limit would significantly damage U.S. standing in the world and call into question the country’s global leadership. Connor O’Brien. Politico, 11 May
‘De-Americanize’: How China Is Remaking Its Chip Business. US trade barriers have accelerated China’s push for a more independent chip sector. Chang Che and John Liu. New York Times, 11 May