China News - 18 January 2022
International
Priti Patel tells MPs to be on their guard against foreign agents. The Home Secretary said the threat of interference in UK politics from hostile powers is ‘growing and diversifying’ following disclosure a suspected Chinese agent has been targeting Parliament. She said the government is developing new national security legislation to make it harder for a malign state to conduct such activities. During the Commons debate yesterday, the Speaker called on the Chinese government to lift sanctions on UK parliamentarians in order to rebuild trust. Independent, 17 January
More MI5 alerts to come to counter foreign interference. BBC, 17 January
Xi defends crackdowns in ‘common prosperity’ drive. Speaking via video link at the World Economic Forum’s annual meeting, Xi said: “the common prosperity we desire is not egalitarianism. We will first make the pie bigger and then divide it properly through reasonable institutional arrangements.” He insisted that China remained committed to being open to foreign business and warned the US and Europe against a rapid rise in interest rates that would “slam on the brakes” on the global recovery from the pandemic. BBC, FT, The Guardian, The Telegraph, 17 January
Beijing challenges Britain over Huawei ban after reports intelligence services found no security threat. Foreign ministry spokesman Zhao Lijian said on Monday that he wanted to “listen to what the UK has to say” about claims that British intelligence had “planted people” in the Chinese telecoms giant before concluding that there was no national security threat. SCMP, 17 January
China’s coal production hit record levels in 2021. In a blow for climate campaigners, the Chinese state has encouraged miners to ramp up their fossil fuel output to safeguard the country’s energy supplies through the winter gas crisis. The Guardian, 17 January
Beijing city officials urge end to overseas deliveries over Omicron. After saying a local woman may have been infected by Omicron after opening a parcel, health officials repeated the theory that Covid-19 could be spread internationally on imports of frozen food. BBC, WSJ, 17 January
Beijing forced 2,500 ‘fugitives’ back from overseas during pandemic, report finds. Chinese authorities captured fugitives and brought them back to China during the pandemic, using methods ranging from family intimidation to “state-sanctioned kidnapping”, according to a new report by human rights group Safeguard Defenders. The Guardian, 18 January
Back Lithuania or face more coercion from China, lawmakers tell EU chiefs. Inaction against an unofficial trade embargo will allow Beijing to intensify ‘divide and rule’ practices and weaken European unity, MEPs warn. SCMP, 18 January
Chinese Premier Li pledges to promote long-term development of bilateral ties in conversation with German Chancellor Olaf Scholz. Xinhua, 17 January
China won't 'bully' neighbours over South China Sea, foreign minister says. Reuters, 18 January
Winter Olympics tickets will not be sold as China seeks to contain Covid. The Guardian, The Times, 17 January
Economy & tech
Chinese semiconductor output surged 33 per cent last year, double the 2020 growth rate. The latest data highlights the country’s efforts to boost chip output amid a protracted semiconductor shortage and Beijing’s push for tech self-sufficiency. Separately, China’s chip imports amounted to US$432 billion in 2021, a 23.6% increase from the previous year. SCMP, 17 January
China’s technological self-reliance push leaves German firms fearing ‘lack of equal treatment’. 36% of the 596 German companies that took part in the survey by the German Chamber of Commerce in China last year listed preferential treatment offered to local companies, protectionism and legal uncertainties as their top business challenges, compared with just 20% last year. SCMP, 18 January
China slowdown highlights potential pitfalls of property reforms. Xi Jinping has successfully cooled many of the country’s hottest property markets as part of his campaign to deliver “common prosperity”. The Financial Times reports that real estate prices could fall further - and faster - than the government would like, depressing broader economic activity. FT, 18 January
China tech crackdown: at least 25 large online tutoring firms closed up shop in 2021. SCMP, 17 January
Starbucks ties up with Meituan to bolster presence in crucial China market. Reuters, 18 January
China focus
Twice as many Chinese to head home for Lunar New Year despite call to ‘stay put,’ study finds. Despite the Chinese government’s exhortations for a second year in a row for people to remain in the places where they work over the upcoming Chinese New Year holiday in a bid to stem further outbreaks of Covid-19, the ‘stay put’ request is expected to have less influence this year, according to a recent study. Yicai, 17 January
Ozone pollution is cutting China’s crop production, study says. Researchers say the air pollutant has decreased wheat and hybrid rice yields by about 30%. Sixth Tone, 18 January
China local governments face debt maturity wall in next 3 years. Bloomberg, 17 January
Opinion & editorial
MI5's intervention on China marks a watershed moment. By acknowledging that the Chinese Communist Party targets this country, we've made an essential step towards a better long-term strategy, writes CRG Director of Research Julia Pamilih. The Telegraph, 17 January
Joining the Trans-Pacific free trade pact is an economic and geopolitical no-brainer for the UK. In a new report with the Centre for Policy Studies, Anthony Mangnall MP argues that becoming part of the CPTPP would boost our economy and reduce dependence on China. The Telegraph, 17 January
China and Russia test the limits of EU power. The EU needs to respond to economic coercion or its geopolitical ambitions will be cruelly exposed. Gideon Rachman. FT, 17 January
China’s record trade gap a symptom of struggle to rebalance its economy. Surpluses will continue as Beijing struggles to rein in burgeoning debt and increase domestic consumption. Michael Pettis. FT, 18 January
Long reads
What we know about Evergrande’s ‘black-box’ restructuring. Beijing’s orchestrated collapse of the indebted property developer is an attempt to limit contagion. FT, 18 January
The waning efficacy of China’s vaccines presents a ‘smart power’ opportunity for the West. Sam Brown. British Foreign Policy Group, 17 January
When America invaded China. The Boxer Rebellion still shapes Beijing’s attitude toward the United States. Jonathan M. Katz. Foreign Policy, 17 January