China News - 18 May 2023
International
Sunak backtracks on promise to ban Confucius Institutes in the UK. The Government announced that it would be ‘disproportionate’ to close down Beijing’s cultural and language outposts in Britain. British officials cite concerns that any move against Confucius Institutes would almost certainly provoke reprisals by Beijing, including against the British Council. George Parker and Bethan Staton. Financial Times, 17 May
Hiroshima Accord to be signed by UK & Japan at G7 will include semiconductor partnership. The UK prime minister’s announcement comes ahead of the publication the British semiconductor strategy on Friday. Jim pickard and Anna Gross. Financial Times, 17 May
Ukraine tells China envoy it won't cede territory to Russia to achieve peace. Ukraine’s foreign minister Dmytro Kuleba told a visiting Chinese official that his government wouldn’t accept any proposal to end Russia’s invasion that involved the loss of territory or the ‘freezing’ of conflict. Sophia Yan. The Telegraph, 18 May
Myanmar’s military has imported at least USD 1 billion in arms since February 2021 coup. A new UN report has revealed that China and Russia are the main suppliers of advanced weapons systems to the Myanmar military. Simon Lewis. Reuters, 17 May
EU continues to fund research with Chinese military-linked universities. Investigation finds five ongoing EU research projects involving China’s National Defence universities in network security, heat transfer and drones. David Matthews and Richard L. Hudson. Science Business, 16 May
Japan and China start defense hotline operation. Japan and China began the operation of a hotline between their defense authorities as bilateral ties remain tense over a territorial dispute. The Japan Times, 16 May
China’s ambassador to Australia says Aukus an ‘unnecessary’ use of taxpayer money and ‘not a good idea’. Xiao Qian denounced the Aukus nuclear-powered submarine plan during a press conference at the Chinese embassy in Canberra on Thursday. He suggested further improvements in the diplomatic and trading relationship were possible but would take ‘mutual respect’. Daniel Hurst. The Guardian, 18 May
China fines comedy firm £1.68m over ‘inappropriate’ joke about China’s military. Comedian Li Haoshi has been suspended from the Xiaoguo Culture Media firm after a joke about stray dogs went viral over the weekend. China’s ministry of culture and tourism fined the comedy show company CNY 13.35 million in ‘illegal gains’ for the joke. Amy Hawkins. The Guardian, 17 May
Economy & tech
Montana becomes first US state to fully prohibit use of TikTok. New legislation will impose a USD 10,000 fine on any entity that permits downloading of the platform and add the same amount each day a violation continues. The law, signed by Montana Governor Greg Gianforte, will take effect in January. Robert Delaney. South China Morning Post, 18 May
Volkswagen denies reports that it is discussing licensing Huawei software. Volkswagen had reportedly held talks to use Huawei software in its cars in China, hoping to boost market share in the world’s biggest electric-vehicle market. Volkswagen AG Chief Financial Officer Arno Antlitz has since refuted the claims. Reuters, 17 May
Opinion & long reads
Wall Street’s Biggest Banks Face a Harsh Reality Check in China. Goldman Sachs and Morgan Stanley are among banks scaling back ambitious expansion plans and profit goals amidst deteriorating geopolitical climate. Cathy Chan. Bloomberg, 17 May
EU will recalibrate its stance on China across values, economic and strategic security. Fontelles details the changes inside China with nationalism and ideology on the rise; the hardening of US-China strategic competition; and the rise of China as a key player in regional and global issues. Josep Borrell Fontelles. South China Morning Post, 17 May
Domestic power reshuffles in 2022 and US-Taiwan-China relations. S. Philip Hsu. Brookings Institution, May 2023