China News - 15 September
International
The UK government’s response to the ISC report. GOV.UK, 14 September
Chinese recruiters “headhunt” UK nationals in key positions, Downing St says. The report states that some Chinese action “crosses the line from influence to interference”. The Government realises “there is more work to be done” as well as providing evidence of the good work and changes they have implemented thus far. However, it rules out banning Chinese-backed Confucius Institutes. The Guardian, 14 September
Rishi Sunak admits need for investment to combat China’s challenge to UK security. The Prime Minister has conceded that “further investment”, especially towards the Agencies, is needed to help the UK combat the challenge China poses to Britain's security, prosperity and values. Lucy Fisher. Financial Times, 14 September
Chinese defence minister under investigation by Beijing, US believes. The US government believes China’s defence minister, Li Shangfu, has been placed under investigation as he has not been seen in public for two weeks. This would be the latest sign of turmoil among elite members of China’s military and government. Demetri Sevastopulo. Financial Times, 14 September
Afghanistan: Taliban welcomes first new Chinese ambassador since takeover. China has become the first country to name an ambassador to Afghanistan since the Taliban retook power in 2021. The Taliban said that Zhao Xing’s appointment should be a sign for other countries to establish ties with them. Kelly Ng and Suranjana Tewari. BBC News, 14 September
China attacks EU’s “naked protectionist act” on electric cars. China’s commerce ministry has warned “it is a naked protectionist act that will seriously disrupt and distort the global automotive industry supply chain, including in the EU, and it will have a negative impact on China-EU economic and trade relations”. Joe Leahy and Gloria Li. Financial Times, 14 September
Taiwan blasts Elon Musk over latest China comments. The island’s foreign minister stated that Taiwan is “not for sale” in response to Elon Musk who asserted Taiwan was an integral part of China. Ben Blanchard. Reuters, 14 September
Economy & Tech
China cuts banks’ reserve ratio for second time in 2023 to aid recovery. The People’s Bank of China said it would cut the reserve requirement ratio for all banks by 25 basis points from Friday. This follows a previous 25-bps cut for all banks in March. Reuters, 14 September
Chinese banks shun Beijing’s flagship property bailout fund. Almost a year after its launch, a flagship lending programme to revive China’s debt-stricken property market has done very little business. State backed lenders have disbursed less than 1% of $27bn scheme after failing to find credit worthy developers. Sun Yu. Financial Times, 14 September
Opinion & long-reads
Biden’s Vietnam embrace repeats past US mistakes. America is, for the second time, attempting to draw Vietnam into superpower politics. Jim Laurie. Al Jazeera, 14 September
Shipping industry: risk of war has yet to be fully priced in. Chinese aggression against Taiwan would increase insurance cover for ships in the area, in a similar way to the Black Sea. Financial Times, 14 September