China News - 21 June 2022
International
Chipmaker Nexperia denies being under control of China. The takeover of British semiconductor manufacturer Newport Wafer Fab by Nexperia, a subsidiary of the Chinese smartphone maker Wingtech Technology, is currently the subject of a national security investigation. In a written submission to the BEIS strategy select committee, Nexperia argued it was a global, publicly listed company and that its “management team predominantly consists of European and US industry veterans”. The Times, 21 June
US ban on imports from China's Xinjiang region takes effect. The Uyghur Forced Labor Prevention Act (UFLPA), which comes into force today, assumes that any product partly or wholly made in Xinjiang is linked to the region’s labour camps. Under the rules, firms have to prove imports from the region are not produced using forced labour. BBC, The Guardian, 21 June
EU companies in China pay the price for Brussels stance on Xinjiang. SCMP, 21 June
Evidence of exiled Uyghurs’ abduction adds to pressure for investigation of Beijing. Evidence of China’s campaign to abduct and forcibly return Uyghurs who have fled overseas was presented to the International Criminal Court (ICC) yesterday. Lawyers for Uyghur exiles want the court to open an investigation into Beijing’s abuses in Xinjiang, based on the forced disappearances and returns of Uyghurs from foreign countries, to circumvent the fact that China is not an ICC member. The Times, 20 June
No Biden move on Chinese tariffs likely before G7 meeting. US President Joe Biden is considering scrapping tariffs on a range of Chinese goods to curb inflation, but no decision is likely before next week's Group of Seven summit, people familiar with the matter said. Reuters, 21 June
Elon Musk’s Starlink aid to Ukraine triggers scrutiny in China over US military links. Musk was commended by the west for dispatching a shipment of Starlink satellite kits to fortify the country’s internet network against Putin’s forces, but his aid was viewed differently by China, where Tesla makes a quarter of its revenues. FT, 21 June
Tesla cars barred for 2 months site of China leadership meet. Reuters, 21 June
China’s political party school in Africa takes first students from 6 countries. 120 cadres from ruling parties attend workshop at the US$40 million facility in Tanzania funded by the Chinese Communist Party. SCMP, 21 June
Hong Kong's iconic Jumbo Floating Restaurant capsizes at sea. Nikkei Asia, 21 June
Economy & tech
Chinese lithium giant tests investor demand for Hong Kong IPO. Tianqi Lithium Corp., one of the world’s largest producers of battery-grade lithium compounds, is aiming to raise more than $1 billion in a listing on Hong Kong’s stock exchange, according to people familiar with the matter. Its mainland shares have doubled in value over the past 12 months. WSJ, 20 June
Iron ore price surrenders gains for the year as Chinese demand cools. Iron ore prices fell 5 per cent on Monday as demand from Chinese steel producers stumbles. FT, 20 June
‘Right now we don’t need luxury’ - Chinese consumers re-evaluate their spending. A sense of uncertainty created by the Chinese government’s determination to stick to its “zero-Covid” policy correlates with analysts’ suggestions that the recovery in Chinese luxury spending will take longer than in 2020. FT, 21 June
US sanctions helped China supercharge its chipmaking industry. Bloomberg, 20 June
China Evergrande sticks to restructuring plan target of before end-July. Reuters, 21 June
Long reads & opinion
Will China and Russia stay aligned? Foreign Affairs asks the experts. Foreign Affairs, 21 June
China’s Expanding Surveillance State: Takeaways From a NYT Investigation. Reporters spent over a year combing through government bidding documents that reveal the country’s technological road map to ensure the longevity of its authoritarian rule. NYT, 21 June
Video: China's 20th Party Congress - Macro and personnel policy change. The Wall Street Journal’s Lingling Wei in conversation with Wall Street TV’s Lizzi Lee. SupChina, 20 June
Rising Powers and Normative Resistance: China, India and the Responsibility to Protect. Courtney J. Fung. Journal of Contemporary China, 20 June