China News - 15 June 2022
International
Government to take ‘special share’ in Sizewell C nuclear plant project. The government has confirmed plans to take a “special share” in the £20 billion Sizewell C nuclear plant, as it moves closer to a deal that would see taxpayers invest 20 per cent in the project and end the involvement of China’s CGN. With the plant at risk of cost overruns and delays, the government confirmed that it would have the right to take a special share to protect national security interests. In documents published yesterday, the government said EDF and CGN had provided it with an undisclosed estimate for the cost of Sizewell C. The Times, 15 June
New Hong Kong textbooks ‘will claim city never was a British colony’. New Hong Kong textbooks will teach students that the city was never a British colony, after an overhaul of a school subject that authorities have blamed for driving the pro-democracy protests. According to local reports, the new texts for Hong Kong’s liberal studies subject will teach students that the Chinese government didn’t recognise the treaties that ceded the city to Britain after the opium wars. The Guardian, 15 June
Australia's foreign minister to travel to Solomon Islands amid concern over China security pact. The Solomon Islands security pact, as well as a proposal by China for a sweeping security and trade agreement with 10 Pacific islands nations, will be discussed at next month's Pacific Islands Forum leaders meeting. This will be Foreign Minister Wong’s third visit to the Pacific since being sworn in last month. Reuters, 15 June
New Zealand to boost maritime security with Solomon Islands amid China focus on Pacific. The Guardian, 15 June
Fears for Taiwan as China lays groundwork for its own ‘special military operation’. Chinese President Xi Jinping has signed a directive, which comes into effect on Wednesday, allowing for “non-war” uses of the military - raising concerns it could pave the way for an invasion of Taiwan that would be labelled a “special military operation” instead of a war, as Russia has done in Ukraine. The Telegraph, 14 June
China’s clean air campaign is bringing down global pollution. China has reduced air pollution nearly as much in seven years as the US did in three decades, helping to bring down average global smog levels in the process. The amount of harmful particulates in the air in China fell 40% from 2013 to 2020, according to the University of Chicago’s Energy Policy Institute. Bloomberg, 14 June
Dozens of countries call out China at UN over Xinjiang abuse allegations. A joint statement from 47 nations - including the UK - also calls for the release of a long-delayed report by UN human rights chief Michelle Bachelet. SCMP, 14 June
New UK-Singapore Digital Economy Agreement comes into force. The deal will grant UK businesses greater access to Singapore’s digital markets and lock-in trusted cross-border data flows. Gov.uk, 14 June
Bloomberg unable to contact staffer that China says was released on bail. FT, 14 June
Economy & tech
China's banks scramble to raise capital and answer calls to support economy. China Construction Bank Corp started selling 60 billion yuan ($8.9 billion) in bonds on Wednesday, joining peers as they rush to replenish capital in response to tighter regulations and government calls to support a virus-hit economy. Meanwhile, China’s central bank left its key policy interest rates unchanged Wednesday after lowering benchmark lending rates in May to support the cooling economy. Reuters, WSJ, 15 June
China under pressure to reform debt market as foreign inflows slow. Worries over poor liquidity — the ability to buy and sell the debt easily — and the country’s opaque process for resolving defaults. in China’s $21tn debt market are keeping foreign investors at bay, even as Beijing prepares to grant unprecedented access to local currency bonds. FT, 15 June
China factory output inches up by a better-than-expected 0.7%. Nikkei Asia, 15 June
China COVID controls makes Apple supplier Pegatron "emphasise" expansion elsewhere. Reuters, 15 June
China focus
China moves Russia defender out of line for foreign minister job. China’s decision to transfer one of its most high-profile diplomats and most senior Russia experts, Le Yucheng, to a state media regulator is fanning speculation that Beijing’s tensions with the West may be weighing on the appointment of the country’s next foreign minister. Bloomberg, 14 June
Bank depositors hit with red health codes. People who lost money in a recent Henan province bank fraud case had their health codes turn red - a label mostly reserved for potential COVID-19 carriers or those infected with the virus - after travelling to the provincial capital Zhengzhou to seek redress for their losses. Sixth Tone, 14 June
China’s internet watchdog tightens mobile app rules for national security. SCMP, 15 June
Long reads & opinion
Toxic Tiles. How vinyl flooring made with forced labour ends up at big box stories - a new report by the Helena Kennedy Centre. Mara Hvistendahl. The Intercept, 14 June
Biden risks losing Latin America to Beijing. The region’s leaders are turning east for quick ways to solve problems — and to find riches. Roger Boyes. The Times, 14 June
America and China present dueling narratives at Shangri-La Dialogue. Ryan Hass. Brookings, 14 June
China’s Global Vision Vacuum. An Opportunity and Challenge for Europe. Dr. Tim Rühlig. DGAP, 14 June