China News - 21 April 2022
International
Xi reiterates opposition to use of economic sanctions, proposes global security initiative. Chinese President Xi Jinping reiterated China's opposition to unilateral sanctions and "long-arm jurisdiction" in a speech at the annual Boao Forum for Asia. China has repeatedly criticised western sanctions, including those against Russia, but it has also been careful not to provide assistance to Moscow that could lead to sanctions being imposed on Beijing. "China would like to put forward a global security initiative" that upholds "the principle of indivisibility of security," Xi said. Reuters, 21 April
US politicians press Biden on sale of Newport Wafer Fab to Chinese. A group of American congressmen has written to President Biden to demand security vetting for UK investments in US companies if the British government fails to intervene in the Chinese takeover of a microchip plant in Wales. The group signed a letter demanding “urgent action” to overturn the sale of Newport Wafer Fab, The Times has learnt, emphasising that the takeover serves as a critical test case of Britain’s willingness to exercise its powers to “address a shared security concern regarding critical technology.” The Times, 21 April
Whole communities relocated in anti-Covid drive as Shanghai lockdown eases. The BBC has been told of fresh efforts to relocate entire communities in areas of Shanghai as Chinese authorities enforce extreme measures to try to stop a new wave of Covid. An official notice from local Communist Party officials in an area in the north of the city details orders to transfer residents from their homes to quarantine facilities more than 100 miles away. Meanwhile, Chinese health officials have allowed 4 million Shanghai residents in the financial hub to leave their homes after weeks of confinement. BBC, 21 April
Pentagon chief holds first talks with senior Chinese military official. Lloyd Austin, the US defence secretary, spoke to China’s defence minister, General Wei Fenghe, in the first top-level exchange between the two militaries since President Joe Biden entered office. Austin reportedly told Wei there would be consequences if China gave Russia military help, while Wei restated China’s position on Taiwan. FT, 20 April
US aircraft carriers at risk from Chinese hypersonic missile. The Times, 21 April
New Zealand and Australia question motive for China-Solomons security pact. Jacinda Ardern, the New Zealand prime minister, said that Australia and New Zealand both have heeded the call of the Solomons for support during “recent disruption”, raising questions over why a security pact with China was required. Ardern spoke of the need to work with China on areas of "natural mutual interest" and rejected the idea that it was time for New Zealand to join AUKUS security alliance. The Guardian, 21 April
Lithuanian exporters still frozen out by Taiwan office row with Beijing. Latest Chinese customs records released on Wednesday showed first-quarter imports from Lithuania had plunged 76.6 per cent on year, as the EU maps out the next steps in its related WTO lawsuit against Beijing. SCMP, 20 April
China ratifies forced labour conventions ahead of visit by UN rights chief. SCMP, 20 April
Early report offers few clues on crashed China Eastern plane. Sixth Tone, 21 April
Economy & tech
Foreign investors ditch Chinese debt at record pace as US yields soar. Offshore investors sold a net Rmb113bn ($17.6bn) worth of Chinese onshore bonds in March, according to Financial Times calculations, as concerns mounted over China’s economic growth outlook and the debt’s diminishing yield advantage over bonds denominated in US dollars. FT, 21 April
Firms say China’s data laws are creating a ‘uniquely restrictive’ environment. New laws and regulations are forcing companies – both foreign and domestic – to keep data related to local customers and operations inside the country, says the US-China Business Council. SCMP, 21 April
China to add 300 million tons of coal capacity this year. Caixin, 21 April
Decline in global smartphone shipments erode major Chinese vendors’ market share. SCMP, 20 April
Opinion & editorial
Why a Chinese security deal in the Pacific could ripple through the world. In potentially opening the door to a Chinese military base, the Solomon Islands threatens the balance of power in a vital shipping region. Damien Cave. NYT, 20 April
China’s never-ending story. The Chinese economy still needs demand-side support, not more supply-side support. Michael Pettis. FT, 20 April
Zero population growth need not spell end of China’s prosperity. Nicole Chung Yuen-Wing and Paul Yip. SCMP, 21 April
Long reads
The next chapter of Beijing to Britain. After more than 18 months of covering the ebbs and flows of the UK-China conversation, Beijing to Britain is becoming a subscription-based offering. Subscribe here.
How China’s Sinovac compares with BioNTech’s mRNA vaccine. The Economist, 19 April
Five things to know about China’s mega East-West data centre plan. Zhang Erchi and Chen Min. Caixin, 19 April
China’s ‘whole nation’ effort to advance the tech industry. Xiao Tan and Yao Song. The Diplomat, 21 April