China News - 20 September
International
The UK government has published its latest six monthly Hong Kong report. (publishing.service.gov.uk)
China vows deeper trade and investment with Russia despite Western rebuke. Wang Wentao, the Chinese Commerce Minister, said that Sino-Russian economic and trade cooperation had continued to deepen and become more “solid” under the “strategic guidance” of Xi and Putin. Ryan Woo. Reuters, 19 September
US-China chip restrictions “could hit Irish exports”. The Central Bank in Ireland suggested that the US restrictions on selling chips to China could be partially responsible for the slowdown in Irish exports. The value of the exports fell by €3bn in the first half of this year. John Campbell. BBC News, 19 September
South Korea urges Russia to halt military cooperation with North Korea. Chang Ho-jin, vice foreign minister, summoned Russia’s ambassador in Seoul to push “Russia to
immediately halt any moves to expand military cooperation with North Korea and to abide by UN Security Council resolutions”. Cynthia Kim and Hyonhee Shin. Reuters, 19 September
Beijing summons German ambassador after foreign minister calls Xi Jinping a “dictator”. Although China and Germany are major trade partners, their diplomatic ties have been fraying as the German government is starting to take a harder line with Beijing. The Guardian, 19 September
Thailand launches probe into Chinese rolled steel imports. Thailand has said that “there is sufficient evidence that there is avoidance of anti-dumping duties and so an investigation is warranted”. The probe includes hot-rolled steel sheets in coils and non-coils. Chayut Setboonsarng and Panarat Thepgumpanat. Reuters, 19 September
Chinese travel demand back, Europe set to gain. 80% of respondents to a survey in China said they were planning to travel abroad in the next 12 months. ITB organisers said “the willingness of the Chinese to travel abroad more in the coming 12 months lays a solid foundation for a significant recovery in 2024”. Rachel More. Reuters, 19 September
Economy & Tech
German car makers in the line of fire of possible EU-China trade war. Beijing is already in a tit-for-tat trade war with the US, and German car makers fear the same could happen with the EU. A third of BMW’s car sales were in China last year, so the main concern is a retaliatory increase in tariffs on European cars imported into China. Patricia Nilsson, Gloria Li and Sarah White. Financial Times, 19 September
Most Asian EVs to be excluded from French car subsidy scheme. Macron first announced the measures in May, saying France needs to stop using “French taxpayers’ money” to subsidise car production outside the EU. Giorgio Leali. POLITICO, 18 September
EU companies warn China on EV overcapacity. China has emphasised boosting manufacturing and exports, especially of EVs, rather than supporting consumers as a way of supporting their post-pandemic economy. Joe Leahy. Financial Times, 19 September
US business optimism about China outlook falls to record low. 40% of companies are currently redirecting or looking to redirect investment away from China and towards Southeast Asia, up from 34% last year. Casey Hall. Reuters, 19 September
Huawei’s chip breakthrough poses new threat to Apple in China- and questions for Washington. One of the biggest challenges to Apple could be a resurgent Huawei after a purported major semiconductor breakthrough despite US sanctions. Huawei’s latest smartphone has a chip that supports 5G, and Washington is questioning how this is possible. Arjun Kharpal. Cnbc, 19 September
Alcoholic chocolate sells out as another boozy craze hits China. Alcohol-infused chocolates are the latest product to become viral on Chinese social media. The chocolates created by a surprise tie between liquor giant Kweichow Moutai Co. and Mars Inc.’s Dove brand sold out immediately. Bloomberg, 18 September
Opinion & long-reads
The real reason for the West’s protectionism. The West fears their political stability is at stake, not just their economies. Under Xi, China has become more closed and authoritarian, and importantly more overtly hostile to countries such as the US. Gideon Rachman. Financial Times, 18 September
“He’s had a bad summer”: Xi faces calls to loosen grip as China’s crises mount. A mixture of natural, economic and political disasters cause experts to say that Xi’s iron grip on power may be his biggest problem. Helen Davidson. The Guardian, 17 September