China News - 18 July
International
US climate envoy meets Chinese counterpart on hottest ever day in China. Kerry said he hoped this week’s meetings with Xie Zhenhua would show the big steps that America and China are taking to “address a common risk, threat, challenge to all of humanity, created by humans themselves”. His trip is part of a flurry of high-level US delegations flying to Beijing to try to shore up ties between the two countries. The US secretary of state, Antony Blinken, and the treasury secretary, Janet Yellen, have also visited the US in previous weeks. The Guardian, 17 July
China logs 52.2C as extreme weather rewrites records. While China was facing -50C six months ago, a remote township in Xinjiang is battling temperatures of more than 50C. This record heat is expected to last another five days, threatening drought. Reuters, 17 July
Taiwanese presidential contender William Lai’s planned visit to US leads Beijing to lodge formal protest. Lai Ching-te, who is currently leading most opinion polls ahead of January’s presidential election, plans to make two stops in the US on a trip to South America next month. The Chinese foreign ministry warned that they will take “strong and resolute measures to defend national sovereignty and territorial integrity” if Lai carries out his visit. South China Morning Post, Reuters, 17 July
Germany plans tougher rules to shield critical infrastructure. Germany's Interior Ministry wants to introduce measures aimed at protecting the country's critical infrastructure, according to a draft plan seen by Reuters on Monday, amid concern over foreign influence in certain areas of the economy. Reuters, 17 July
Chinese top legislator: China and Russia set new model of major-country ties. China’s top legislator, Zhao Leji, said that China and Russia have continued to deepen political mutual trust. Zhao supported the exchanges with the A Just Russia party in continuing to enrich the content of exchanges between the two parties and to develop Russia-China relations. CGTN, 17 July
Absence of China’s foreign minister sparks speculation. Qin Gang has not been seen for three weeks, missing important diplomatic engagements. A foreign ministry spokesperson said there was “no information” as to Qin’s return, but diplomatic activities are continuing. Financial Times, 17 July
China deletes Covid-19 death data. One of China’s most populous provinces has deleted mortality data that offered an indication of the heavy death toll from Beijing’s relaxation of Covid-19 controls at the end of last year. FT, 17 July
Solomon Islands PM returns from Beijing, calls Australia 'unneighbourly'. Solomon Islands Prime Minister Manesseh Sogavare returned to Honiara on Monday after a week-long official visit to China, telling reporters Beijing would provide more budget support, and that criticism by Australia was "unneighbourly". Reuters, 17 July
Xi vows to promote sound growth of China-Philippines ties. Xi met with former Philippine President, Rodrigo Duterte, and discussed developing relations between the countries. CGTN, 17 July
Economy & tech
China GDP growth falls short of expectations as sinking property prices hit economy. China’s economy expanded 6.3% in the second quarter from a year ago, falling short of market expectations as export demand remained tepid and sinking property prices sapped consumer confidence. The Guardian, 17 July
Chip companies and top US officials meet on China policy. Senior American chip company executives met with US government officials including Gina Raimondo, Lael Brainard and Jake Sullivan to discuss their concerns over new restrictions. Reuters, Bloomberg, 17 July
Luxury fashion houses slump amid fears of China spending slowdown. Shares in brands such as Cartier, Louis Vuitton and Dior have fallen to their lowest level in five months. Luxury brands have been contending with softer demand, as economists warned that Chinese households continued to stash savings away at “concerning” rates. The Telegraph, 17 July
Chinese developer Evergrande reveals $81bn loss from property crisis. Chinese property developer Evergrande has posted losses of $81bn over a two-year period, revealing for the first time the financial fallout of a 2021 default that sparked an ongoing crisis in the country’s property sector. FT, 17 July
China rolls over medium-term policy loans. The central bank kept interest rates on MLF loans unchanged at 2.65%. China’s economic recovery has lost momentum after the initial spike in the first quarter, and it is expected that authorities will need to provide more support to rally against slowing economic growth. Reuters, 17 July
China may launch next-generation crewed spacecraft as early as 2027. A former Chinese astronaut said China’s new spacecraft, carrying up to seven astronauts, could be ready to launch between 2027 and 2028. Reuters, 18 July
Opinion & long-reads
Thailand is a “swing state” which could pivot to the West or China. The progressive Move Forward candidate, Pita Limjaroenrat, has failed to gain support in the upper-house, despite winning 312 seats in the lower-house earlier in the year. The candidate is currently being investigated for owning shares in a media firm (which is prohibited under election rules). While Pita considers his political future, the West will be weighing-up the importance of Thai democracy in the Asian strategic landscape. John Hemmings. Telegraph, 17 July
How to address Europe’s dependence on medicine imports from China. The EU is currently preparing a new legislation to clarify and unify the pharmaceutical market and eliminate differences in availability and prices, but the legislation avoids the issue of reducing dependence. Veronika Blablová. China Observers, 17 July
America can’t build a green economy without China. Robinson Meyer. NYT, 18 July