China News - 19 May 2022
International
EU to upgrade trade ties with Taiwan as China warns Brussels ‘not to gamble on this issue’. The European Union will upgrade its trade and investment relations with Taiwan, as it looks to tap into Taipei’s “role as a hi-tech leader”, having earlier ditched the plan to avoid angering China. The upgrade comes as the European Parliament’s trade committee continues to push the bloc’s policymaking arm to bolster ties with Taipei. SCMP, 18 May
Biden bids to boost alliances in Asia and affirm commitment to region. The US President will send a clear message to US allies in Asia of his commitment to security in the region during a visit to South Korea and Japan this week. His visit is designed to boost alliances and reassure countries that he has not diverted attention from China, which he has called his top foreign policy challenge. FT, 19 May
Biden adviser Sullivan and China's Yang discuss North Korea, Taiwan. Reuters, 18 May
US charges one American, four Chinese officials with spying. A US citizen and four Chinese intelligence officers have been charged with spying on Chinese dissidents, human rights leaders and pro-democracy activists residing in the United States, the Department of Justice said on Wednesday. The indictment accuses Wang Shujun of using his status within Chinese diaspora and dissident communities to collect information about activists on behalf of China's Ministry of State Security. Reuters, 19 May
Top Hungarian court bars referendum on Chinese university plan. Hungary’s top court on Wednesday threw out a bid by Budapest’s mayor to hold a referendum on a planned campus of China’s Fudan University in the city. Voters would have been asked if they wished to repeal a law that gave a green light to the plan. SCMP, 18 May
Marcos says Philippine-China ties 'set to shift to higher gear'. Nikkei Asia, 18 May
Taiwan hit by record coronavirus cases as island abandons zero-Covid. SCMP, 19 May
Economy and tech
China bull Baillie Gifford warns of growing threat to foreign investors. Tom Slater, manager of the £14.4 billion Scottish Mortgage trust, which last year added to its Chinese holdings, said the war in Ukraine has worsened US-China relations and that foreign investors needed to reckon with limits Beijing may impose on their investment gains. FT, 19 May
International investors sell Chinese debt at record pace. According to new data obtained by the FT, international investors dumped a record $35 billion worth of renminbi-denominated bonds in the first four months of 2022 as Covid-19 lockdowns hit the country’s currency and rising US yields reduced appetite for Chinese debt. FT, 18 May
Shanghai lockdown easing doesn’t mean end to shipping snarls. Shortages of rail, port and trucking workers in China and elsewhere need to get resolved quicker than is currently happening as they are delaying ships at the world’s major ports. Bloomberg, 18 May
Southeast Asia’s reliance on China may upend US-EU plan for global tech standards. SCMP, 19 May
Tencent posts steepest profit decline since going public. WSJ, 18 May
China focus
China’s chaotic regulatory crackdown reflects splits among policymakers. Rival factions in Beijing are battling for influence and favour under the most powerful Chinese leader in a generation. The fight is between senior party and government officials focused on economic growth and those more concerned with security and party control. FT, 19 May
Analysis: Premier Li is back, and so is 'Likonomics'. Katsuji Nakazawa. Nikkei Asia, 19 May
Beijing probes central banker for passing tips to bond traders. The Central Commission for Discipline Inspection said Wednesday that Sun Guofeng, who was head of the monetary-policy department of the People’s Bank of China, is being investigated for “suspected serious violation of laws and discipline.” Beijing criticised the central bank for not adequately aligning itself with the party-state. WSJ, 18 May
Defiant Chinese netizens skirt lockdown censorship using blockchain. The popularity of decentralised ledger technology presents a fresh challenge for the country’s censors. FT, 19 May
Chinese depositors left in dark as three local banks freeze deposits. Reuters, 18 May
Opinion & long reads
China's Communist Youth League: Eternally young at a hundred. Xi Jinping sees the Communist Youth League as crucial for winning the hearts and minds of the young. Charles Parton. MERICS, 18 May
Expanding state power still tops Xi’s agenda. A recently publicised speech reflects how the Chinese leader sees the country’s economic challenges. James Palmer. Foreign Policy, 19 May
China's silenced feminist: How Sophia Huang Xueqin went missing. Jessie Lau. BBC, 18 May
Report: Everything you need to know about the UK’s connection to torture in Xinjiang. Freedom from Torture, 17 May