International
China’s population falls for first time in more than 60 years. China has entered an “era of negative population growth” after figures revealed a historic drop in the number of people for the first time since 1961. The country had 1.41175 billion people at the end of 2022, compared with 1.41260 billion a year earlier, its National Bureau of Statistics revealed. It marked the beginning of what is expected to be a long period of population decline, despite new policies to ease the financial and social burdens of child-rearing, or to actively incentivise having children via subsidies and tax breaks. The Guardian, Nikkei Asia, 17 January
China’s economic growth slows to 3% hit by zero-Covid policy. China’s economy slowed sharply to 3 per cent last year with growth severely restricted by the country’s zero-Covid policy. Growth in gross domestic product was well below the official target of “around 5.5 per cent”. Other than a slowdown to 2.2 per cent after the outbreak of coronavirus in 2020, it was the weakest rate of expansion since the final year of the decade-long Cultural Revolution in 1976. The Times, 17 January
Covid workers in China clash with police over unpaid wages, layoffs. Companies that reaped windfalls helping the government implement strict ‘zero Covid’ controls are now struggling to pay and keep workers. NYT, 16 January
Foreign Secretary visits USA and Canada to deepen diplomatic, trade and security ties. During an intensive round of diplomatic talks with US Secretary of State Antony Blinken and Canadian Minister of Foreign Affairs Mélanie Joly, James Cleverly will set out the UK’s foreign policy priorities, including the ongoing efforts to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Gov.uk, 17 January
China’s top diplomat plans European tour to thaw relations. Wang Yi will visit Germany and Belgium next month in a bid to reset relations with a sceptical Europe, Politico revealed. Recently promoted from foreign minister to the 24-person Politburo, Wang will attend the Munich Security Conference and visit the EU headquarters in an attempt to overcome strains in the relationship between China and Europe. Politico, 17 January
China posts record fossil fuel output as security trumps climate. Fossil fuel production in China soared in 2022, with coal and gas hitting record highs, as environmental targets took a back seat to energy security after a tumultuous year for prices. Bloomberg, 17 January
Chinese Foreign Minister Qin Gang calls on Israel to stop worsening Palestine issue with provocation. SCMP, 16 January
Lord Sumption accused of giving credibility to China by acting as Hong Kong judge. The Times, 17 January
Economy & tech
China’s Vice-Premier Liu to meet US Treasury Secretary Yellen this week. US Treasury Secretary Janet Yellen will meet her Chinese counterpart, Vice-Premier Liu He, for the first time in Zurich this week to enhance their economic coordination. Treasury officials are concerned that export controls and potential outbound investment restrictions could slow China’s access to technology for ordinary commercial purposes, and that Beijing could retaliate. WSJ, 16 January
US-China trade is close to a record, defying talk of decoupling. US government data through November suggest that imports and exports in 2022 will add up to an all-time high, or at least come very close. Bloomberg, 17 January
PwC resigns as indebted Chinese developer Evergrande’s auditor. Indebted Chinese property developer Evergrande said on Tuesday that global accounting firm PwC had resigned as its auditor, citing different views on financial statements under investigation by Hong Kong regulators. FT, 17 January
Global air travel forecast to bounce back by mid-2023 as China reopens. FT, 16 January
Long reads & opinion
Interpreting China’s diplomatic shifts. While Beijing is jettisoning some of the most pugnacious elements in its diplomacy, it has not undertaken a fundamental pivot. Brian Wong. The Diplomat, 16 January
How Apple tied its fortunes to China. Patrick McGee. FT, 17 January
Industrial espionage: How China sneaks out America's technology secrets. Nicholas Yong. BBC, 16 January