China News - 15 May 2023
International
EU and US to pledge joint action on China at TTC forum. U.S. Secretary of State Antony Blinken, European Commission Vice-President Margrethe Vestager and other senior officials are due to meet for the fourth edition of the EU-US Trade and Technology Council (TTC) in Sweden later this month. A draft statement suggests the two sides will address non-market practices and economic coercion while seeking to coordinate on export controls on ‘sensitive items’ such as semiconductors. Philip Blenkinsop. Reuters, 13 May
US Secretary of State Antony Blinken hoping to visit China ‘in the near future’. Close advisor suggests a trip to China would come as US looks for ways to ‘depressurise’ ties with China following the spy balloon row. Finbarr Bermingham. South China Morning Post, 13 May
Chinese state media says the country will take a ‘zero tolerance’ approach to companies handing over sensitive information. The People’s Daily published an editorial in response to allegations that Capvision was helping to leak information regarding military technology. Kandy Wong. South China Morning Post, 14 May
China’s Jinko Solar raided by federal agents. U.S. Department of Homeland Security this week raided a factory in Jacksonville, Florida and a sales office in San Francisco as part of an ongoing federal investigation. News outlets highlight that Jinko has had several shipments of solar equipment detained under the Uyghur Forced Labor Protection Act this year, though these shipments have since been released. Nichola Groom. Reuters, 10 May
German Chancellor Olaf Scholz overruled opposition to approve China port deal. Scholz's spokesperson Steffen Hebestreit announced last week that Berlin is sticking to a deal allowing Chinese state-owned shipping company Cosco to buy a 24.99 percent stake in Hamburg’s Tollerort container terminal. Vice Chancellor Robert Habeck, who leads the economy ministry that is in charge of reviewing investments, had pushed for a reduction of Cosco's shares in the terminal. Hans von der Burchard. Politico, 11 May
China sentences 78-year-old American to life in prison on espionage charges. John Leung, who also has permanent residency in Hong Kong, was arrested in April 2021 and sentenced this week in Suzhou. No details of his crime have been provided. Bloomberg, 15 May
Top China negotiator for Biden administration announces retirement. US Deputy Secretary of State Wendy Sherman is retiring from her role. Sherman has been considered instrumental in the US Government’s efforts to design an Indo-Pacific strategy responsive to China’s prominence in the region. Bochen Han. South China Morning Post, 13 May
Economy & tech
ByteDance former head of engineering in US claims TikTok owner stole content, inflated user numbers in lawsuit over firing. Roger Yu Yintao claims ByteDance fired him for reporting concerns about a ‘worldwide scheme’ to steal content and fabricate user engagement metrics. Yu, a California resident, joined ByteDance as head of engineering in the US in 2017 and was terminated the following year. South China Morning Post, 13 May
After 20 years in UK, Edinburgh chair professor joins China’s hypersonic programme. Physicist Zhang Yonghao resigned from the University of Edinburgh to join China’s new national hypersonic laboratory in Beijing. Stephen Chen. South China Morning Post, 13 May
Shein opens EMEA headquarters in Dublin. The Chinese fashion retailer follows in the footsteps of Temu-owner PDD Holdings with its recent expansion to Ireland. The creation of the office will bring with it 30 new jobs by the end of the year, according to Ireland’s Ministry of Enterprise, Trade, and Employment. DublinLive, 11 May
Shareholders of Evergrande's EV unit agree on restructuring deal. Shareholders of China Evergrande New Energy Vehicle Group accepted a proposal to dispose of two debt-laden subsidiaries, according to a filing with the Hong Kong stock exchange. Xie Yu. Reuters, 13 May
China's Oppo to shut down chip design unit as smartphone sales slump. Oppo, one of China’s best-selling domestic smartphone brands, will cease operations of its Zeku unit. Reuters, 13 May
Shipping groups press Chinese counterparts for sanctions-proof contracts. Maritime lawyers suggest vessel owners are increasingly asking for bespoke clauses that protect against the impact of western sanctions when negotiating with Chinese counterparts. Oliver Telling and Kate Beioley. Financial Times, 14 May
China opens national blockchain research centre with plans to train 500,000 industry professionals. The research centre, located in Beijing and approved by the Ministry of Science and Technology, will work with universities, research institutes and companies to train workers. Dylan Butts. South China Morning Post, 14 May
Forrester Research to cut China jobs after Beijing’s crackdown on consultancies. The US tech-focused research group has told staff it plans to cut the majority of its China analysts after Beijing intensified scrutiny of western consultancies in the country. Eleanor Olcott. Financial Times, 12 May
Opinion & long reads
China’s war chest: Beijing’s ‘great wall of steel’ faces obstacles to military supremacy. An assessment of China’s military capacity in light of escalating tensions over Taiwan. Amy Hawkins. The Guardian, 15 May
New US solar tax credit rules will do little to break China dependence, experts warn.
A lack of domestic capacity threatens to undermine new policy designed to speed up reshoring of clean energy supply chains. Aime Williams, Amanda Chu and Derek Brower. Financial Times, 13 May
How China came to dominate the black market for money laundering. Some experts believe Chinese-controlled entities and individuals are now responsible for as much as half of the industry. Matt Oliver. The Telegraph, 14 May