China News - 16 June 2022
International
Xi reaffirms support for Moscow in call with Putin. Chinese President Xi Jinping re-emphasised support for Moscow’s security concerns in his second phone call with Russian President Vladimir Putin since Russia invaded Ukraine nearly four months ago, showing little sign of backing off from an entente that has alienated Beijing further from the West. Xi offered the most unambiguous declaration of support to his Russian counterpart since the invasion, vowing to support Moscow’s “sovereignty and security.” WSJ, Politico, 15 June
Fate of Ukraine matters because 'China is watching', UK defence secretary says. Sky News, 15 June
Ministry of Defence sets out new Defence Artificial Intelligence Strategy. The new 72 page strategy explicitly mentions China a handful of times, warning of the potentially destabilising effect of AI proliferation and the threat of hostile states “acquiring key technologies and Intellectual Property from UK academia and Industry”. The strategy also sets out the need to work alongside like-minded partners and “those who are traditionally less aligned with the UK” in AI development. Beijing to Britain, 15 June
US, EU Plan joint foreign aid for cybersecurity to counter China. The US and the European Union plan to introduce joint funding of secure digital infrastructure in developing countries, according to officials involved in the talks. Initial projects, likely in Africa or Latin America, will protect other countries’ critical infrastructure against cyberattacks and help countries that otherwise might be eager to accept funding from China. WSJ, 15 June
China to set up centralised iron ore buyer to counter Australia’s dominance.
China is moving to consolidate the country’s iron ore imports through a new centrally controlled group by the end of this year, as Xi Jinping’s administration seeks to increase Beijing’s pricing power over the industry. Beijing hopes the new entity can secure lower prices through larger bulk purchases made on companies’ behalf. FT, 16 June
UN human rights chief ‘not able to speak to’ detained Uyghurs or their families in Xinjiang. Michelle Bachelet told the UN Human Rights Council she wasn’t able to speak to any detained Uyghurs or their families during her controversial visit to Xinjiang, and was accompanied by government officials while in the region. The Guardian, 15 June
Lithuania plans to open Taiwan office in September, says exports to mainland China ‘close to zero’. SCMP, 15 June
Spy agencies’ focus on China could snare Chinese Americans. AP, 15 June
Economy & tech
‘Let it rot’: China’s tech workers struggle to find jobs. China’s once overworked but well-compensated tech workers have seen an erosion of office perks, job cuts, headcount freezes and stalling or falling pay. Trouble at smaller, unprofitable companies gradually expanded to highly profitable groups including social media giant Tencent and e-commerce leader Alibaba. FT, 16 June
Chinese courts flex intellectual property muscle across borders. In recent years, Chinese courts have issued four key cross-border “anti-suit injunctions”, following claims made by the country’s massive telecom equipment and smartphone groups. These rulings have to block non-Chinese companies from enforcing IP rights in other jurisdictions, meaning Chinese companies cannot be sued for alleged infringements. FT, 16 June
China’s new energy firms turn to European markets for capital as US becomes increasingly hostile. At least eight companies have announced plans to issue global depositary receipts in Switzerland and London since the China Securities Regulatory Commission revised the scheme in February. SCMP, 16 June
Prices for new homes in China slide further. WSJ, 16 June
China focus
Henan Bank depositors slam government response to red health code. Depositors who arrived in the central city of Zhengzhou in an attempt to withdraw their savings from regional embattled banks only to have their movements curtailed by a red health code have slammed the reasoning from local authorities behind the move. Sixth Tone, 15 June
China’s party congress promotions to emphasise political security. Appointments at the 20th Party Congress are expected to sharpen focus on potential threats to the state and draw a line under the corruption scandals of recent years. The front runners for the key political and legal roles have all served under the Chinese leader from the beginning of his rise to power. SCMP, 16 June
‘We won’t survive’: China’s migrant workers fear more lockdowns as Covid threat remains. The Guardian, 16 June
Long reads & opinion
It is right that British tech champion Arm should be listed in London. While US tech giants favour the Nasdaq, London reinforces Arm's neutrality in the US-China chip war. James Titcomb. The Telegraph, 15 June
What returning to China taught me about China. Coming back to Beijing showed me what happens when an unfettered state is allowed free rein. Michael Schuman. The Atlantic, 14 June
How Western companies are dealing with China’s corporate laws. Q&A with Art Dicker, a senior attorney at R&P China Lawyers. Chris Marquis. SupChina, 15 June
China’s State Key Laboratory System: A View into China’s Innovation System. CSET, 15 June