China News - 20 October 2022
International
Chinese consul-general defends actions after being seen pulling protester's hair in Manchester. Zheng Xiyuan, the Chinese consul-general accused of attacking a protester, said that the peaceful demonstration turned violent because of the "rude banners" that had been put on display. When asked about being pictured pulling protester Bob Chan's hair before yanking him into the Chinese consulate, he said: "He (Bob Chan) was abusing my country my leader, I think it's my duty." With Chan holding a press conference in London yesterday, MPs from across the political divide are now pushing for the UK government to deal with the alleged assault at the highest levels. Sky News, BBC, 20 October
CRG chair Alicia Kearns MP:
UK on alert as China taps British pilots to help train for war with West. "It's obviously deeply worrying that ex-pilots are being headhunted to train the PLA, and it's absolutely right of the MOD to issue an intelligence alert," Chris Cash, director of the UK-based China Research Group parliamentary group, told Newsweek. "We hope that the necessary legal changes can be made through the National Security Bill.” Newsweek, 19 October
China underlines ‘no first use’ nuclear weapons policy as it seeks stronger power to deter. China has reaffirmed its “no first use” nuclear weapons policy at the United Nations, even as signs of a build-up emerge from the top leadership’s report to the ongoing 20th Communist Party congress in Beijing. In his work report, which lays out the country’s development path for the next five years and beyond, Xi Jinping called for an increase in the proportion of “new-domain forces with new combat capabilities”. SCMP, 19 October
Taiwan easing visa rules amid ‘intensifying’ talent war with mainland China, Hong Kong. Taipei is discussing relaxing visa and residency rules for foreign professionals under its Taiwan Employment Gold Card with its population set to start declining in 2031 due to a low birth rate and competition from mainland China and Hong Kong. SCMP, 19 October
South Korea gets squeezed between the US and China. The intensifying rivalry between Washington and Beijing is causing jitters in Seoul, where security ties and economic priorities are not always aligned. NYT, 19 October
China carves path to Indian Ocean with Myanmar rail network. For Beijing, the development is seen as crucial because it has the potential to open up a vital trade route to the Indian Ocean. Nikkei Asia, 20 October
US Navy chief warns China could invade Taiwan before 2024. FT, 20 October
Australia and Japan to share intelligence on China in security deal, ambassador says. The Guardian, 19 October
Economy & tech
Corporate China shut out of Xi Jinping’s party congress. Private sector attendance at China’s Communist party congress has fallen almost 50 per cent since Xi Jinping assumed power, reflecting what analysts say is the waning status of tycoons. The party has pledged to crack down on the “disorderly expansion of capital” in an effort to reduce wealth inequality and ensure “common prosperity”. FT, 20 October
US chip equipment makers calculate revenue losses in the billions after Washington’s curbs on China exports. US chip equipment supplier Lam Research said lost sales to China could amount to US$2.5 billion next year after Washington restricted exports of US semiconductor technology. China's Ministry of Industry and Information Technology convened a series of emergency meetings over the past week with leading semiconductor companies, seeking to assess the damage from the restrictions. SCMP, 20 October
Tencent steps up buybacks as share price sinks. Chinese social media and gaming group Tencent has increased share repurchases to spend more than $3bn this year as the company’s stock price plumbs four-year lows. FT, 20 October
Chinese stocks in US skid to lowest in more than nine years. Bloomberg, 19 October
Chinese carmakers take another crack at the German market. Nikkei Asia, 20 October
China focus
Xi’s vow to regulate wealth spurs calls for taxing the rich. Chinese President Xi Jinping’s pledge to regulate wealth has stirred speculation Beijing may impose property and inheritance taxes on the wealthy in pursuit of its “common prosperity” goal. Bloomberg, 20 October
Beijing steps up Covid measures as cases quadruple during key CCP congress meeting. Beijing has dialled up measures to stop Covid, strengthening public checks and locking down some residential compounds after a quadrupling of its cases in recent weeks, just as the 20th party congress entered full swing. The Guardian, 20 October
Reports of teenager dying in Covid quarantine cause outcry in China. The Guardian, 19 October
Long reads & opinion
Biden goes it alone in his trade assault on China. The US is taking a big risk in imposing semiconductor export controls without allies on board. Alan Beattie. FT, 20 October
America and China don’t need to knock each other out to win. China and the United States should invest more resources in a vision of success not defined by undermining the other. Jessica Chen Weiss. NYT, 19 October
Afghan militants have China in their crosshairs. New Islamic State rhetoric targets Chinese imperialism. Haiyun Ma. Foreign Policy, 19 October
Frontier influencers: the new face of China’s propaganda. ASPI, 20 October