China News - 18 May 2022
International
Kwasi Kwarteng warned on China takeover of UK semiconductor plant. The Business Secretary will be warned in a Whitehall report that allowing the sale of semiconductor company Newport Wafer Fab to a Chinese buyer would undermine one of the country’s strategic industries. After the government’s national security adviser concluded that there were insufficient reasons to block the deal on specific security grounds, DCMS officials are expected to finish their own review this summer, and will warn the business is part of a cluster of semiconductor expertise in Wales of strategic importance, which could be undermined by the sale. FT, 18 May
UK says it will end overseas aid spending in China. "We'll work with China to tackle global challenges, but we can make a bigger difference spending UK aid where it is more needed," Business Secretary Kwasi Kwarteng said yesterday. Overseas aid spending in China totalled around £13m last year; the government will continue to work with China on climate change and antimicrobial research. Parliament.uk, The Times, 17 May
China Eastern black box points to intentional nosedive. Flight data indicates someone in the cockpit intentionally crashed a China Eastern jet earlier this year, according to people familiar with US officials’ preliminary assessment of what led to the accident. China Eastern, in a statement to The Wall Street Journal, said no evidence has emerged that could determine whether or not there were any problems with the Boeing 737-800 aircraft involved in the accident. WSJ, 17 May
EU to step up Indo-Pacific defence presence over China fears and Ukraine example. A more intensive security plan would not involve the establishment of military bases nor the deploying of troops unless in a crisis, Gabriele Visentin, the EU’s special envoy to the Indo-Pacific said, but rather conducting military training and live exercises on land and sea, boosting intelligence, and having EU ships pass through zones with maritime interest. The Guardian, 18 May
China seeks to reset relationship with Australia after election. A Chinese diplomatic source says the post-election period is a ‘good opportunity’ to ease tensions with either a re-elected Coalition or a new Labor government. The Guardian, 18 May
US accuses casino mogul Steve Wynn of lobbying Trump on behalf of China. The US Department of Justice on Tuesday sued Steve Wynn, the billionaire former casino mogul and senior Republican fund raiser, to compel him to register under the Foreign Agents Registration Act as an agent of China. NYT, 17 May
China rejects bill to help Taiwan regain WHO observer status. Xinhua, 16 May
China urges new South Korean government to avoid new cold war. SCMP, 17 May
Economy and tech
China economy Czar vows to back tech firms after crackdown. Vice Premier Liu He, President Xi Jinping’s most senior economic aide, told China’s dozens of tech executives and industry experts that the government will support the development of tech companies and their public listings as Beijing battles a slowing economy. Bloomberg, 17 May
China stops reporting bond trades by foreigners after selloff. China’s main bond trading platform for foreign investors has quietly stopped providing data on their transactions, a move that may heighten concerns about transparency in the nation’s $20 trillion debt market after record outflows. Bloomberg, 17 May
Shanghai lets financial firms resume work as COVID curb ease - sources. The China Foreign Exchange Trade System, Shanghai Stock Exchange, Shanghai Futures Exchange, and China Financial Futures Exchange were among the 864 financial institutions put on a "white list" of companies allowed to resume work. Reuters, 18 May
US rushes to catch up with China in supercomputer race. The world’s biggest economies are battling to dominate advanced processing power that will affect defence and climate modelling. FT, 18 May
China's Xiaomi, Vivo and Oppo trim smartphone orders by 20%. Nikkei Asia, 18 May
China in talks with automakers on EV subsidy extension. Reuters, 18 May
Opinion & long reads
We can’t allow our NHS to be dependent on China. We should ensure that hospitals are not at the mercy of the whims of the Chinese government. Alicia Kearns. The Times, 18 May
Biden’s China strategy cannot work with weapons alone. An effective policy in the Indo-Pacific would balance Beijing’s influence by raising US trade and investment. Edward Luce. FT, 18 May
The collateral damage in China’s Covid war. Are Beijing’s harsh measures undermining its hold on power? Yanzhong Huang. Foreign Affairs, 17 May
Understanding the extent (and limits) of Chinese public support for Russia. Brian Wong. The Diplomat, 17 May