China News - 16 January 2023

International

China reports 60,000 Covid-related deaths in just over a month as Lunar New Year approaches. China has reported 60,000 Covid-related deaths in just over a month, the first major death toll released since the country stopped its zero-Covid policy. The WHO said information releases are giving a better picture of the overall situation but that it had “requested a more detailed breakdown of data by province over time”. Passengers are flocking to rail stations in China's megacities, heading to their hometowns for holidays that health experts fear could intensify the outbreak in areas less equipped to handle it. BBC, 14 January

Taiwan's ruling party elects VP as new leader to spearhead revival. The ruling Democratic Progressive Party chose Taiwanese Vice President Lai Ching-te as its new leader as it seeks to regain strength ahead of the 2024 presidential election. He will take over from Taiwanese President Tsai Ing-wen, who stepped down after the DPP’s rout by the opposition Kuomintang in local elections in November. Lai is often described as “deep green” — shorthand for more radical pro-independence leanings. Nikkei Asia, 15 January

China to take ‘golden shares’ in tech firms Alibaba and Tencent. The Chinese government is to take “golden shares” in two of its biggest tech companies, Alibaba and Tencent, as Beijing extends its influence on the country’s star tech firms and its most powerful and wealthy business people. Beijing’s move marks a shift away from imposing hefty fines and sanctions in its two-year tech rectification campaign. Meanwhile, ride-hailing giant Didi secured the green light to resume signing up new users. Reuters, Bloomberg, 13 January

Hong Kong

Britain accuses China of ‘deliberately flouting’ human rights in Hong Kong. Human rights promised to the people of Hong Kong have been deliberately flouted by the former British colony and Beijing, according to a Whitehall report, in a claim that has been vehemently refuted by the territory. The report, presented to parliament by James Cleverly, the foreign secretary, is the latest bi-annual statement on the implementation of the Sino-British Joint Declaration. The Times, 13 January

Jimmy Lai’s Hong Kong lawyers deny association with ‘international legal team’ that met with British minister. The local legal team representing jailed Hong Kong media tycoon Jimmy Lai in his high-profile national security trial has said it is not “professionally associated” with an international group of lawyers who reportedly met with foreign office minister Anne-Marie Trevelyan over Lai’s case. HKFP, 16 January

China appoints hardliner Zheng Yanxiong as its top representative in Hong Kong. The Guardian, 16 January

Japan’s PM vows to modernise military for new era of threats. Japan’s prime minister, Fumio Kishida, has pledged to modernise his country’s military alongside US president Joe Biden, warning that Russia’s invasion of Ukraine had opened a dangerous new era and could embolden China. Biden hailed the Japanese government’s announcement that it will double defence spending over the next five years and develop new capabilities. The Guardian, 13 January

Sweden finds the largest rare earth deposit in Europe. Swedish mining company LKAB says it has found Europe’s largest deposit of rare earth oxides in the country’s north, a discovery that could reduce the continent’s reliance on China for the critical resource. The European Union gets 98% of the minerals from China, according to the European Commission. CNN, 13 January

Djibouti signs $1bn rocket deal with Hong Kong company. Djibouti has signed a preliminary agreement with Chinese multinational Hong Kong Aero Tech to build a $1bn rocket launch site which could see the launch of the first Africa-made satellite from African soil. African Business, 10 January

Uganda turns away from Belt and Road rail deal as China stalls on loans. SCMP, 16 January

Chinese are much more negative about US than Europe, survey finds. SCMP, 15 January

Economy & tech

Vice-Premier Liu He to represent China at World Economic Forum. Chinese Vice-Premier Liu He will attend the World Economic Forum in Davos, Switzerland, this week, the foreign ministry confirmed. Europe is supplying the most political leaders, while the US corporate delegation will again massively outweigh the others. The 700 Americans participating this year outnumber the Chinese delegation roughly 20 to 1. SCMP, 14 January

HSBC’s £1 billion buyout fund with China falters as strains grow. Right before the pandemic struck, a slated £1 billion buyout fund backed by HSBC and sovereign wealth fund China Investment Corporation was hailed as an example of growing business ties between Beijing and London. Three years later, the venture is a mirror to China’s fraying relationship with Europe and the US, as well as the years of upheaval caused by pandemic-era lockdowns. Bloomberg, 16 January

Chinese developer Kaisa hit with lawsuit over bond defaults. A Hong Kong investor filed a $100mn claim against Chinese developer Kaisa, signalling the mounting legal pressure on real estate companies that defaulted on their international debts last year. FT, 13 January

China overtakes Germany in car exports, sets sights on Japan. SCMP, 15 January

The lure of Singapore: Chinese flock to ‘Asia’s Switzerland’. FT, 15 January

Opinion & editorial

Geopolitics threatens to destroy the world Davos made. World Economic Forum delegates fear that a long period of peace and economic integration could be coming to a close. Gideon Rachman. FT, 15 January

The Xi nobody saw coming. China’s hardline leader has reversed his decisions on a wide range of policies, wrongfooting the rest of the world. Ruchir Sharma. FT, 15 January

Decoupling wastes leverage on China. Keeping Chinese firms dependent on Western chips is a better strategy. Paul Scharre. Foreign Policy, 13 January

Long reads

US-China chip war: America is winning. The rivalry is entering a new phase, with global players increasingly caught in the crossfire. Suranjana Tewari. BBC, 14 January

India's growing antagonism towards China as viewed by SIIS analyst Liu Zongyi. Thomas des Garets Geddes. Sinification, 16 January

The all too complicated history of Simplified Chinese. Liu Yuli. Sixth Tone, 16 January