China News - 22 November 2022

International

China lockdowns reach record level as Covid cases spiral. The world’s second-biggest economy reported nearly 28,000 new Covid cases on Tuesday, with outbreaks in Beijing, the southern manufacturing hub of Guangzhou and the southwestern metropolis of Chongqing continuing to grow rapidly. The latest wave is testing recent adjustments China has made to its zero-Covid policy. FT, 22 November

Newport MP, Newport Wafer Fab staff accuse government of putting jobs at risk by blocking Chinese takeover. Staff at Welsh semiconductor plant Newport Wafer Fab have accused Business Secretary Grant Shapps of putting 600 jobs at “grave risk” by blocking a Chinese-backed takeover of the factory. Labour MP Ruth Jones has backed moves by Nexperia to keep its ownership of the chip manufacturer - but Shapps said Ms Jones was not privy to details that informed the decision. The Telegraph, BBC, 21 November

UK police identify offences committed in Chinese consulate incident. Greater Manchester Police said they have been gathering evidence from mobile phone footage and witnesses to establish the full circumstances of what happened during an incident at the Manchester Chinese consulate last month. There have been no arrests so far, but they had "identified a number of offences including assaults and public order offences". Reuters, 21 November

Ex-Apple Daily employees plead guilty in national security trial. Six former staff members of Hong Kong pro-democracy tabloid Apple Daily and its parent company Next Digital have pleaded guilty to conspiracy to commit collusion with a foreign country, or with external elements to endanger national security, in a landmark national security case. HKFP, Bloomberg, 22 November

China boosts efforts to control Western infrastructure, key industries - NATO. Western countries must be careful not to create new dependencies on China as they are weaning themselves off Russian energy supplies amid Moscow's war on Kyiv, NATO chief Jens Stoltenberg warned on Monday. Stoltenberg urged allies to increase the resilience of their societies and infrastructure. Reuters, 21 November

EU set to renew sanctions on Chinese officials accused of human rights violations in Xinjiang. The sanctions were first placed on four individuals and one entity in March 2019, and with the EU observing no improvement in human rights conditions in the region, they are likely to be extended without a debate in December. SCMP, 22 November

China turns to back-channel diplomacy to shore up US ties. China is turning to corporate America to bolster communications with the US, according to the Wall Street Journal. Before President Xi’s summit last week with President Biden, Beijing dispatched a delegation of senior policy advisers and business executives to meet with a US counterpart group set up by insurance executive Maurice “Hank” Greenberg, one of the most successful American businessmen in China. WSJ, 21 November

Parliament: UK-Indonesia relationship and ASEAN to be examined by Foreign Affairs Committee. The Foreign Affairs Committee will hold an evidence session on the UK’s relationship with Indonesia and ASEAN today, as part of its inquiry into the tilt to the Indo-Pacific. Parliament.uk, 22 November

China, US defence chiefs meet in Cambodia amid Taiwan tensions. A Pentagon readout of the talks said the two sides discussed "defense relations and regional and global security issues," emphasising the need to responsibly manage competition and maintain open lines of communication. Nikkei Asia, 22 November

China on course for Africa trade boost as it offers duty-free access to 9 more countries. SCMP, 22 November

Dozens dead in factory fire in Chinese city of Anyang – state media. The Guardian, 22 November

Economy & tech

West could end reliance on Chinese batteries by 2030, says Goldman Sachs. According to a Goldman report to clients seen by the FT, a stark pivot to protectionism in the US and Europe, combined with an unprecedented spending spree by non-Chinese companies, have the potential eradicate reliance on Beijing by 2030. Goldman forecasts that cutting dependence on China for EV batteries would require more than $160bn in new capital expenditure. FT, 22 November

Carmakers try to frustrate US push to cut China from EV supply chain. FT, 22 November

Shein’s cotton tied to Chinese region accused of forced labour. A US attempt to ban imports of cotton linked to forced labour in China contains a loophole large enough for a multibillion-dollar business to pass through: clothing from Shein, the Chinese online retail giant and social-media phenomenon that ships fast-fashion apparel directly to consumers. Bloomberg, 21 November

Apple extends wait time for iPhone 14 models beyond Christmas as Foxconn scrambles to resume full production. SCMP, 21 November

Central bank plans new lending tool to support embattled developers. Caixin, 22 November

Long reads & opinion

“Reunification” with Taiwan through force would be a pyrrhic victory for China. Jude Blanchette and Gerard DiPippo. CSIS, 22 November

Q&A: Joseph Torigian on making sense of Chinese politics. Brent Crane. The Wire, 20 November

The tragic romance of China and Hollywood. Can a multi-billion-dollar relationship be restored after such a spectacular collapse? Will Seaton. The China Project, 21 November