China News - 22 October 2020
China’s Covid-19 vaccine diplomacy steals a march on US. China is promising preferential access to its Covid-19 vaccines to countries across Asia, Africa and Latin America, as Beijing uses inoculations as a new tool to bolster its ties with nations neglected by the US. Wang Yi, China’s foreign minister, has spearheaded the effort, pledging that Malaysia, Thailand, Cambodia and Laos will be among the “priority” recipients of Chinese vaccines. Four Chinese vaccine candidates are now in phase 3 trials. FT, 21 October
Germany: Hong Kong deputy summoned German consul after Germany’s asylum offer to pro-democracy protestor, while Chinese embassy criticises Germany for hosting Taiwanese politicians in Bundestag. The official protest from Chief Secretary Matthew Cheung Kin-chung was delivered in a meeting initiated by the Hong Kong government with German Consul General Dieter Lamlé on Wednesday. The Chinese embassy separately criticised a Bundestag Human Rights Committee meeting with Taiwenese politicians for disregarding Beijing’s “one China principle” and interfering in China’s internal affairs. SCMP, FAZ, 21 October
Taiwan welcomes latest $1.8bn US arms deal, says no intention of weapons race with Beijing and its focus is on peace and stability. The move is likely to increase tensions with China. China's Foreign Ministry says the arms deal would likely have a major impact on its relationship with the US and that it would respond as necessary, according to Reuters news agency. SCMP, BBC, 22 October
Mike Pompeo set to visit India, Sri Lanka, the Maldives and Indonesia to bolster ties in Asia. Pompeo also announced that the US will designate six more Chinese media firms as foreign missions, in an attempt to push back against “communist propaganda efforts”. The Guardian, WSJ, 22 October
Shifting geopolitical influence in Asia: While a new WSJ report suggests that Japan’s high international lending has made it the real geopolitical rival to Beijing in recent years, Nikkei reports today that Japan's investment in Vietnam has plummeted this year - replaced by South Korean and Chinese investment. Japan, once the largest source of corporate investment in Vietnam, has fallen to fourth place for the first nine months of 2020, overtaken by more agile rivals from South Korea and China. WSJ, Nikkei Asia, 22 October
China urged to release Canadian Michael Kovrig at UN Security Council meeting attended by China’s foreign minister. SCMP, 21 October
British Defence Secretary Ben Wallace says China is “growing the largest maritime surface and subsurface fleet in the world” in speech at Atlantic Future Forum. Reuters, 21 October
China watch
Xi Jinping set to attend further meeting in Beijing on Friday to commemorate the involvement of the Chinese People’s Volunteer (CPV) army on the 70th anniversary of Korean war. The propaganda around the anniversary this year has emphasised anti-American sentiment more than usual (FT), as Xi has demanded an “in-depth study and publicity of the heroic deeds and revolutionary spirit of the CPV army” (Xinhua).
China says environment still “grim” despite 5 years of progress, says senior environment minister Zhao Yingmin. "While seeing the improvements ... it should be clearly recognized that the quality of the ecological environment remains far from people's expectations for a better life," he told reporters in Beijing. CNN, 21 October
Rare protest in Beijing puts the spotlight on an industry in trouble, as demonstrators gathered outside a tutoring company demanding refunds, highlighting some of the economic stress of the pandemic. Inkstone, 21 October
Beijing’s top economic planner tells inexperienced companies to stay out of chipmaking (Caixin) after more than 13,000 Chinese enterprises registered as semiconductor companies in the first nine months of this year (FT).
Economy & tech
Chinese yuan hits 27-month high against the dollar. The currency retreated today amid market speculation that Beijing would roll out policy measures to dampen the risk of a too-strong currency for Chinese exporters. Reuters, 22 October
Third state-owned Chinese company lists on London stock exchange this year. SDIC Power has received the green light from the UK FCA and will began trading on Thursday on the Shanghai-London Stock Connect segment of the LSE's Main Market. Caixin Global, 20 October
Ant Group set to launch $35bn IPO after clearing final regulatory hurdle. Reuters, 22 October
Longer reads & opinion
Comment: Britain must play a key role on an increasingly competitive world stage. Tom Tugendhat in Reaction as the Foreign Affairs Committee releases its new report “A brave new Britain? The future of the UK’s international policy”.
How China Threatens American Democracy: Beijing’s ideological agenda has gone global. Robert O’Brien (US National Security Advisor) in Foreign Affairs, 21 October
Report: Defending Europe’s Economic Sovereignty: new ways to resist economic coercion. ECFR has published a new policy toolkit with a a suite of tools to protect and enhance European sovereignty in the face of strategic threats from the US and China. ECFR, 21 October
How China could be carbon neutral by mid-century. A new report breaks down the steps that China must take to reach net zero, including a potential 16-fold increase in solar and a 9-fold increase in wind power. Nature, 19 October