China News - 19 October 2022
International
Lawmakers urge government to expel Chinese officials involved in Manchester consulate incident. Raising an Urgent Question in the House of Commons yesterday, CRG chair Alicia Kearns told MPs that one of China's most senior UK diplomats - Zheng Xiyuan - was involved in violence against protesters at the Manchester consulate on Sunday. Kearns added there was "grievous bodily harm against a Hongkonger, one of whom was hospitalised for taking part in a peaceful protest”, demanding the expulsion of the consular staff involved. Foreign Minister James Cleverly has summoned the Chinese chargé d’affaires to demand an explanation. China Research Group (via Twitter), BBC, 18 October
Government to change the law to stop RAF pilots training Chinese military. The Government will change the law to stop military pilots training the Chinese army after the Ministry of Defence warned British personnel against helping Beijing’s forces. The MoD said it was attempting to stop the recruitment of both former and serving pilots, while armed forces minister James Heappey said it would be “put into law” that training the forces of hostile states was illegal. The Telegraph, 18 October
20th Party Congress
Bigger-than-expected changes loom as Xi Jinping shapes China’s top leadership. As many as four top positions on the Politburo Standing Committee could change hands and nearly half the Central Committee is expected to be replaced during the 20th Party Congress, the SCMP has learned. Premier Li Keqiang, at 67, is still one year short of the customary retirement age but must step down as the premier, which is constitutionally limited to two terms. SCMP, 18 October
The fate of one-time Xi heir may signal China’s direction. Vice premier Hu Chunhua was once the youngest person appointed to the Communist Party’s Politburo and positioned by his patron, the former leader Hu Jintao, as a leading candidate to succeed Xi. Instead, the question is whether “Little Hu” will get the ultimate consolation prize in Chinese politics: the post of premier. Bloomberg, 18 October
Will intellect behind 3 decades of China's policies soon exit power? Nikkei Asia, 19 October
Hong Kong leader prioritises talent and security in maiden policy address. In his first policy address since taking office in July, Hong Kong Chief Executive John Lee said the government will set aside 30 billion Hong Kong dollars ($3.8 billion) to attract businesses to the city, and launch a top talent pass scheme to “entice talents to pursue their careers in Hong Kong.” He added that new laws would be introduced to regulate areas including cybersecurity, crowdfunding activities and false information. CNBC, 19 October
China blocks Polish delegation's flight to Korea. A Polish government delegation's visit to Korea has been cancelled because China refused to let it fly through Chinese airspace. Warsaw recently bought dozens of Chunmoo multiple rocket launchers in addition to Korean tanks, howitzers and fighter jets. Chosun, 19 October
Australia, South Pacific islands bolster ties as China's clout grows. Nikkei Asia, 19 October
Economy & tech
Chinese local governments ramp up chip industry support as US piles on export restrictions. China’s local governments are doubling down on cash incentives and policy support for home-grown semiconductor companies, as part of Beijing’s drive to achieve greater self-sufficiency in the chip sector. Some of the ambitious plans have emerged in cities previously not on China’s semiconductor radar screen. SCMP, 18 October
China's underground market for chips draws desperate automakers. Bloomberg, 19 October
TikTok security deal is likely to leave US data leaking to China. According to former national security officials, TikTok users would still risk having personal data exposed to hacking and espionage by China even if the Biden administration forges a security agreement designed to spare the video platform from a total US ban. Bloomberg, 19 October
Investors watch alternative data after China delays GDP release. Arthur Budaghyan, the chief strategist of China investment strategy at BCA Research, believes data points tied to China's property market - including the square footage of housing sold and funding raised by property developers - offer more insight into the country's economy. WSJ, 18 October
China to allow foreign multinationals to directly set up internal finance firms. Caixin, 18 October
Global slowdown hits Rio Tinto’s prospects. The Times, 18 October
Long reads & opinion
The Manchester consulate attack shows how China is flexing its muscles abroad. Nathan Law. The Guardian, 18 October
This is the beginning of Xi’s great unravelling. Despite becoming world’s first techno-autocrat, his next term will see dissent lead to infighting. Roger Boyes. The Times, 19 October
What do US curbs on selling microchips to China mean for the global economy? Washington’s ban on hi-tech exports to China marks a huge gambit for economic supremacy. Virginia Harrison and Martin Farrer. The Guardian, 19 October
What led to the burning of Beijing’s Old Summer Palace? James Carter. The China Project, 19 October