China News - 17 November 2022
International
UK orders sale of Newport Wafer Fab by China’s Nexperia on security grounds. The Business Department has ordered Chinese-owned Nexperia to sell 86% of Newport Wafer Fab, effectively reversing its takeover of the UK semiconductor plant. It follows a long-running review under the National Security and Investment Act, with the government ultimately determining that the sale risked the leak of technology and know-how to China and that such activities could undermine the UK’s own capabilities. CRG chair Alicia Kearns remarked: “This decision should mark the beginning of delivering on policies that protect our leading tech companies and research from falling into the hands of our competitors.” Gov.uk, Politico, 16 November
China playing ‘long-game’ as it co-opts UK assets, warns MI5 chief. The Chinese government is playing a “long game” seeking to co-opt and influence not just MPs but people much earlier in their careers in public life, in what the head of Britain’s domestic security agency said was part of a “game-changing strategic challenge”. Beijing is targeting local councillors or people who might be future parliamentary candidates, Ken McCallum warned in his annual threat assessment on Wednesday. FT, Beijing to Britain, 16 November
Hostile states are targeting you, Speaker warns MPs. MPs have been warned they are being targeted by "hostile states", with their mobile phones "a potential goldmine" of sensitive information. In a letter to MPs, Commons Speaker Sir Lindsay Hoyle urged MPs to avoid using their phone for sensitive conversations or even having it in the same room. BBC, 16 November
G20
French president plans Beijing trip to seek China’s help mediate Russia’s war on Ukraine. French President Emmanuel Macron said on Wednesday he would visit China early next year, hoping to persuade Beijing to help mediate an end to Russia’s war in Ukraine. Analysts are sceptical, noting that China has continually expressed a desire for a peaceful settlement, but has taken no action towards ending the conflict. Italian Prime Minister Giorgia Meloni also accepted Xi Jinping’s invitation to visit China. SCMP, 16 November
Xi angrily rebukes Trudeau over ‘leaks’ to media about Canada-China relations. The terse exchange, in which China’s leader accused the Canadian leader of leaking details of a brief conversation they had, happened at the end of the summit in Indonesia. BBC, 17 November
China and Indonesia to strengthen ‘strategic coordination’ in Southeast Asia. SCMP, 17 November
Geopolitics to stay in focus at APEC summit in Thailand. World leaders arrived in Thailand ahead of the Asia-Pacific Economic Cooperation (APEC) forum, with the agenda set to focus on trade and investment, reconnecting supply chains and travel, and the global sustainability agenda. Chinese President Xi Jinping is expected to have bilateral talks with Japanese Prime Minister Fumio Kishida later in the day. Reuters, 17 November
US court sentences Chinese spy to 20 years for stealing trade secrets. A US federal court has sentenced Chinese intelligence officer Xu Yanjun to 20 years in prison after he was convicted last year of plotting to steal trade secrets from US and French aviation and aerospace companies. The Guardian, 17 November
For locals, a China-funded port in Pakistan brings fears of being erased. The China Project, 16 November
Economy & tech
US watchdog gained "good access" to audits of Chinese firms. Regulators gained "good access" in their review of auditing work done on New York-listed Chinese firms during a seven-week inspection, four Reuters sources said. Authorities in China have long been reluctant to let overseas regulators inspect local accounting firms, citing national security concerns. Reuters, 16 November
Tencent to ‘distribute’ most of its $22bn Meituan stake in dividend. Chinese tech group Tencent on Wednesday said it would “distribute” the majority of its $22bn stake in Meituan, a food delivery company, in dividends, as it works to reduce its holdings in the country’s technology sector. FT, 16 November
Beijing vows new support for graduates as youth unemployment woes continue. With a record number of students set to graduate next year, China has announced a raft of new measures to encourage public and private sector firms to create more jobs. SCMP, 16 November
Henan asks cadres to assemble iPhones amid Foxconn labour shortage. Sixth Tone, 16 November
Long reads & opinion
If China invaded Taiwan, what would Europe do? Hal Brands. Bloomberg, 17 November
Britain needs a new strategy to counter Xi’s ‘Chinese Dream’. Increasingly a dictator unfazed by human costs, Xi cannot be deterred militarily. Steve Tsang. The Telegraph, 16 November
Is China finally easing its zero Covid strategy? Cindy Yu. The Spectator, 16 November
CCP Inc. in Portugal. China's investments in financial services and the reach of the Chinese Communist Party in the private sector. Andrew Polk. CSIS, 15 November