China News - 15 November 2022
International
Rishi Sunak ditches plan to class China as a ‘threat’ to UK security. Ahead of the G20 summit, the Prime Minister has hinted he will abandon plans to recategorise China a “threat” to national security as part of the updated Integrated Review. During the summer leadership campaign, Sunak described China as “the largest threat to Britain and the world’s security.” CRG chair Alicia Kearns commented on the potential softening of language: “Changing the designation of China would have risked distraction from developing a more strategic approach.” Politico, The Guardian, 15 November
Sunak keeps option of sending arms to Taiwan on the table. Bloomberg, 15 November
President Biden, Xi Jinping move to stabilise US-China relations. US President Biden and Chinese leader Xi Jinping sought to halt a rapid downward spiral in relations between Washington and Beijing, instructing officials to resume stalled talks on major global priorities as they met a day before the G20 summit in Bali. While acknowledging areas of deep disagreement, Biden emerged from the meeting projecting cautious optimism and a Chinese readout of the talks signalled a renewed willingness from Beijing to engage with the US. WSJ, BBC, 14 November
Analysis: Xi-Biden meeting may help end China’s destructive isolation. Scott Kennedy. Foreign Policy, 14 November
Anthony Albanese has one on one meeting with Xi Jinping at G20. It was the first formal bilateral meeting between an Australian leader and the Chinese president since 2016. The Australian Prime Minister said he discussed trade, consular and human rights issues, but was tight-lipped on whether trade sanctions would be lifted. Reuters, ABC News, 14 November
Foreign Secretary faces questions from the Foreign Affairs Committee. During his first Foreign Affairs Committee (FAC) oral evidence session yesterday, Foreign Secretary James Cleverly said the UK’s relationship with China is “deeply complicated” when asked about substantive policy changes under the new government. MPs also posed questions about the Manchester Chinese consulate attack, defending Taiwan and bolstering supply chain security. FAC has an evidence session on the Integrated Review this afternoon. China Research Group (via Twitter), 14 November
China refiners slow down Russian oil purchases as sanctions near. Chinese refiners are slowing down Russian crude purchases in December and paying lower premiums in the face of imminent European Union sanctions and uncertainty surrounding the G7's plan to cap Russian oil prices, trading sources said. Reuters, 14 November
Canada charges hydroelectricity researcher with espionage for China. Canada’s federal police have charged Yuesheng Wang, a hydroelectricity researcher at Quebec’s power utility with espionage, alleging the worker was covertly sending trade secrets to China. The Guardian, 14 November
China-Turkey ties tipped for growth under Belt and Road. SCMP, 14 November
Economy & tech
China’s GDP growth to reach year's high in fourth quarter, chief economists forecast. The world’s second-largest economy is stabilising and rebounding, but because of sporadic outbreaks of Covid-19 in China and a more complex external environment the recovery still faces enormous pressure. China’s sales fell by 0.5% in October from a year ago and industrial production grew by 5%, data from China’s National Bureau of Statistics showed on Tuesday. Yicai, 14 November
Foreign companies adopt ‘China for China’ strategy. Rather than rely on Chinese factories to produce goods that are ultimately sold elsewhere, the businesses are adopting a “China for China” strategy, which aims to draw on deeper research and development facilities in the country to make products for a vast, growing domestic market. FT, 15 November
Jack Ma’s Ant pushes on with reduced fundraising effort. Jack Ma’s Ant Group is moving forward with plans to raise capital for its lending arm after a major state-owned asset manager pulled out of an earlier fundraising deal for the unit. FT, 14 November
Japan's chip equipment makers scale up ahead of TSMC's arrival. Nikkei Asia, 15 November
BMW confirms it will invest another US$1.4 billion in Chinese EV battery plant. SCMP, 14 November
China focus
Chinese city tiptoes away from zero-Covid. The northern Chinese city of Shijiazhuang has been tiptoeing away from Beijing’s most draconian pandemic measures, in what some see as a test case for a gradual retreat from President Xi Jinping’s strict zero-Covid policy. FT, 15 November
Former provincial party chief takes over as Beijing’s new boss. The former Communist Party chief of Fujian province, Yin Li, has replaced Cai Qi as the new party chief of Beijing after Cai was elevated to become one of the seven members of the Politburo Standing Committee, the party’s top decision-making body. Caixin, 14 November
Long reads & opinion
China’s offshore ‘police service stations’ spark European alarm. Yuan Yang. FT, 15 November
Why China will play it safe. Xi would prefer détente—not war—with America. Christopher K. Johnson. Foreign Affairs, 14 November
Can China let go of Zero Covid? A perfect storm of popular dissatisfaction awaits. Bill Hayton. UnHerd, 13 November
Millions of missing women: China grapples with legacy of one-child policy as population ages. Helen Davidson and Verna Yu. The Guardian, 15 November