China News - 20 June 2022
International
China May oil imports from Russia soar to a record. China's crude oil imports from Russia soared 55% from a year earlier to a record level in May, displacing Saudi Arabia as the top supplier, according to data on Monday from the Chinese general administration of customs. Chinese firms, including state refining giant Sinopec and state-run Zhenhua Oil, have been enticed by steep discounts after western oil majors and trading houses pulled back due to sanctions. Reuters, BBC, 20 June
Leaked audio from internal TikTok meetings shows US data being repeatedly accessed from China. According to leaked audio from more than 80 internal TikTok meetings, China-based employees of ByteDance have repeatedly accessed nonpublic data about US TikTok users. TikTok has responded to data privacy concerns by repeatedly promising that information gathered about users in host countries is stored in-country. The company has now said that Oracle will store all the data from its US users, in a bid to allay fears about its safety. BuzzFeed, The Guardian, 18 June
Wimbledon told to drop HSBC over its support for Hong Kong oppression. In a letter seen by The Telegraph and sent to Wimbledon's chief executive Sally Bolton, MPs from the All-Party Parliamentary Group on Hong Kong have called on Wimbledon to drop ties with its banking partner to show the championship will not tolerate links with any entity "complicit in oppression and human rights abuses". The Telegraph, 18 June
Boris Johnson's plan to cut UK's reliance on China has been quietly scrapped. A letter sent by Foreign Office Minister Lord Ahmad said ‘Project Defend’ was quietly dropped last year. However, other members of the Lords said they planned to amend the Procurement Bill to force Ministers to effectively revive the policy by eliminating any form of strategic dependency on China imports. Mail on Sunday, 18 June
US lawmakers push for more money to counter China in Indo-Pacific. Ami Bera, the Democratic chair of the House foreign affairs Asia subcommittee, and Steve Chabot, the top Republican on the panel, hope their “Indo-Pacific Engagement Act” will narrow the gap between the rhetoric about Asia being the priority region and funding levels. FT, 19 June
Australia tells Solomons security needs should be met by Pacific region, not China. Australian Foreign Minister Penny Wong visited a riot-hit community in the Solomon Islands on Friday to highlight the capabilities of Australian police, amid regional concern over the Pacific nation's security pact with China. Reuters, 17 June
European students on the brink, locked out by China’s zero-Covid rules. SCMP, 20 June
China carries out anti-missile tests amid opposition to US systems in South Korea. The Guardian, 20 June
Economy & tech
China IPO fundraising doubles US total to top global ranks. China’s equity fundraising haul, up 7% from a year ago, puts the country at the top of global rankings and stands in stark contrast to the rest of the world, where IPO proceeds have fallen 80% since the war in Ukraine began. Bankers said the rush of Chinese listings was driven in part by Beijing’s desire to achieve “technological self-reliance”. FT, 20 June
Volkswagen faces union and shareholder calls to examine China human rights allegations. Volkswagen’s anchor shareholder, the state of Lower Saxony, has joined Germany’s most powerful union boss in calling on the company to address allegations of human rights abuses in Xinjiang, where the manufacturer has had a car plant since 2013. FT, 17 June
How the US’ Xinjiang labour law has crippled China’s cotton industry before even entering effect. SCMP, 20 June
China's central bank accepts Ant's application for financial holding company. China's central bank has accepted Ant Group's application to set up a financial holding company, three people with knowledge of the matter told Reuters, a key step in finishing a year-long revamp of Jack Ma's fintech business and reviving its stock market debut. Reuters, 17 June
China’s zero-Covid policy prompts European companies to review operations. FT, 20 June
Elon Musk envisions remaking Twitter in WeChat’s image. SCMP, 17 June
China focus
Chinese President Xi Jinping says country has won an ‘overwhelming’ victory in corruption battle. Addressing the 25-strong Politburo of the Communist Party on Friday, Xi said anti-corruption efforts are a key political struggle that the party cannot afford to lose in its quest to maintain its rule, state news agency Xinhua reported on Saturday. New rules will see officials forced to report business activities of their spouses and children. SCMP, 19 June
Hong Kong's new government retains finance chief in sign of continuity. China unveiled on Sunday new top officials in Hong Kong under incoming leader John Lee. In a sign of continuity for the financial industry, Finance Secretary Paul Chan, who is free of US sanctions, is to retain his post in the Chinese-ruled territory. Nikkei Asia, 19 June
Fire, blast at Sinopec’s Shanghai facility kills one. WSJ, 18 June
Opinion & editorial
Why China’s Xi Jinping’s damage control is all about heading off a crisis. Frederick Kempe. CNBC, 19 June
China’s Covid-19 health code system is ripe for abuse and must not outlast the pandemic. A recent scandal in Henan province shows authorities should waste no time putting more safeguards in place. Wang Xiangwei. SCMP, 18 June
How revitalised Commonwealth can be a bulwark against Beijing. The group of 54 nations could serve as a valuable counterweight to China. Roger Boyes and Jane Flanagan. The Times, 17 June
Don’t let concerns over Xi’s China trump vital language learning. If Britain phases out Confucius Institutes, it should send future China experts to learn Mandarin abroad. Scott Singer. Oxford Political Review, 16 June
Long reads
China’s lessons from Russia’s war. Kevin Rudd. Project Syndicate, 17 June
China denies building naval bases but fear of its military reach grows. Beijing is assembling a network of overseas port facilities to protect its global interests. FT, 20 June
What the world needs to know about China’s outsize role in electric car future. Q&A with Henry Sanderson, one of the world’s leading experts on the geopolitics of electric vehicles and low carbon power. Jeremy Goldkorn. SupChina, 17 June
The Complex Nationalism of China’s Gen-Z. Brian Wong. The Diplomat, 19 June