China News - 19 May 2023
International
UK Government publishes National Semiconductor Strategy. The long-awaited strategy will direct £1 billion in investment over the next decade into building domestic capacity. Already, the government faces criticism for 'lacking ambition’. Dan Milmo and Rowena Mason. The Guardian, 19 May
Rishi Sunak open to following US lead over curbs on Chinese investment. UK to discuss export controls on China with western allies at G7 Japan summit as Washington seeks alignment on new strategy. Jim Pickard. Financial Times, 17 May
US China hawks to press UK minister for tougher line on Beijing. A delegation led by Republican Congressman Mike Gallagher is expected to meet with defence secretary Ben Wallace today. Dan Sabbagh. The Guardian, 18 May
Hong Kong’s High Court bars Jimmy Lai’s UK Lawyer in upcoming trial. The Hong Kong government has waged a legal battle for months to block Lai from being represented by attorney Timothy Owen in his trial, which is scheduled for 25 Sept. The decision reverses one the court made last year, when it affirmed Lai’s right to hire a UK-based lawyer. Bloomberg, 19 May
English universities warned not to over-rely on fees of students from China. The Office for Students (OfS) wrote to 23 universities with high numbers of Chinese students, asking them to share their contingency plans in case of a sudden interruption in overseas recruitment. Sally Weale and Ben Quinn. The Guardian, 18 May
UK releases joint press release in support of Taiwan’s engagement with the World Health Organisation. Inviting Taiwan as an observer to the World Health Assembly this year would best exemplify the WHO’s commitment to an inclusive approach to international health cooperation, says the statement. British Office Taipei, 18 May
China, US trade and commerce chiefs to meet next week. China’s commerce minister Wang Wentao is expected to visit the US next week for meetings with commerce secretary Gina Raimondo and US Trade Representative Katherine Tai, as the US seeks to salve damaged ties. David Brunnstrom, Michael Martine and David Lawder. Reuters, 19 May
Xi Jinping courts Central Asia as Russian influence wanes. Chinese president holds two-day summit with five strategically important former Soviet republics - Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan. Joe Leahy. Financial Times, 18 May
Uyghurs face long wait to become U.S. citizens. There are up to 1,000 Uyghurs and other Turkic-speaking minorities from China currently in the U.S. seeking asylum, according to a report by the Uyghur Human Rights Project. Ruth Ingram. The China Project, 18 May
Economy & tech
Chinese fashion retailer Shein raises USD 2 billion but lowers valuation by a third. The latest fundraising round was led by Sequoia Capital, General Atlantic and U.A.E. sovereign-wealth fund Mubadala. Shein reportedly cut its valuation due to downward pressure on tech-company share prices and intensifying scrutiny from US lawmakers regarding its labour and environmental practices. Jing Yang. Wall Street Journal, 18 May
China overtakes Japan as world’s top car exporter. Growth in exports is driven by shift away from fossil fuels. Tesla’s China arm, SAIC, and BYD, which is backed by US investor Warren Buffett, are among China’s top exporters of new energy vehicles. BBC News, 19 May
Europe’s largest asset manager shifts assets from US to China. Paris-based Amundi thinks ‘too much risk’ is priced in Chinese credit and high-quality companies. Compared to the US, China offers ‘brighter economic prospects, better valuations and a more benign outlook for inflation’. Mary McDougall. Financial Times, 19 May
China’s new regulator will strive to oversee all types of financial activities and seek to eliminate regulatory ‘blind spots’. The inauguration ceremony of the new National Financial Regulatory Administration (NFRA) was held on Thursday as part of a sweeping reform plan set to prioritise financial stability. Frank Tang. South China Morning Post, 18 May
Opinion & long-reads
Get ready to meet the next president of Taiwan. A profile of Hou You-yi, the presidential candidate selected by Taiwan’s main opposition party, the Kuomintang. Mark Harrison. ASPI, 18 May
‘It’s just crazy’: How the U.S.-China energy race imperils the climate fight. Animosity from both sides of the Pacific threatens to choke off U.S.-China cooperation on clean energy. Sara Schonhardt and Phelim Kine. Politico, 18 May
The China-Mexico fentanyl pipeline: increasingly sophisticated and deadly. Exploring China’s underhand role in America’s opioid crisis. Jennifer Doherty. The Guardian, 18 May
Analysis: Debt restructuring no panacea for Chinese developers as challenges loom. A shrinking land bank and low property demand are likely to hamper the plans of a growing number of private Chinese developers who have defaulted on their debt and are restructuring. Clare Jim and Xie Yu. Reuters, 18 May