China News - 22 September 2021
International
China won’t build more coal plants abroad, Xi Jinping says. Xi told the UN General Assembly on Tuesday that his country would stop promoting the growth of the world’s dirtiest fossil fuel overseas, in a major step to address climate change. China is by far the biggest producer of coal domestically, and by far the largest financier of coal-fired power plants abroad, with an enormous 40 gigawatts of coal power planned. NYT, BBC, The Guardian, FT, 21 September
At UN, Biden calls for ‘relentless diplomacy’, not conflict, but some are sceptical. The president said he wants global cooperation to meet challenges, but some allies and adversaries say his actions point to confrontation with China and unilateral action, belying his words. NYT, Reuters, 21 September
Evergrande: Crisis-hit firm strikes China debt deal. In a statement filed with the Shenzhen Stock Exchange in mainland China, Hengda Real Estate Group, Evergrande’s main property unity, said it had reached an agreement with holders of an onshore bond due to be repaid on Thursday. BBC, The Guardian, 22 September
China injects $18.6 billion into banking system during Evergrande crisis. Bloomberg, 22 September
Potential collapse of Chinese property developer Evergrande could hit Australian iron ore exports. The Guardian, 22 September
MPs to quiz watchdog on ‘complex mosaic’ of UK-China aid ties. A parliamentary subcommittee, chaired by Conservative MP Theo Clarke, will hold an information session on the issue of foreign aid flows to China today. In April 2021 the UK government announced a 95% cut to aid to China from the FCDO - the remaining £900,000 has been henceforth limited to “programmes on open societies and human rights”. Politics.co.uk, 21 September
Britain’s nuclear submarines to use Australia as base for Indo-Pacific presence. Senior government sources said that the AUKUS pact could lead to the Royal Navy’s £1.4 billion Astute-class attack submarines undergoing deep maintenance in the region so they can stay deployed for longer rather than returning to the Faslane naval base in Scotland. The Times, 20 September
UK calls on China and Russia to agree Afghanistan strategy. Britain will today call for China and Russia to agree a coordinated international approach to prevent Afghanistan becoming a haven for militants, according to a statement by Foreign Secretary Liz Truss at the UN. Reuters, 22 September
China cold war nothing to do with us, say European Union voters. Most Europeans believe there is a “new cold war” between the United States and China but 85 per cent do not see the conflict as having an immediate influence on their lives, polling suggests. The Times, 22 September
US State Department plans ‘China House’ to counter Beijing. The State Department is planning to expand the number of officials dedicated to monitoring China by 20 to 30, a bid to track Beijing’s growing footprint in key countries around the world. Foreign Policy, 21 September
Lithuania tells citizens to throw out Chinese phones over censorship concerns. Lithuania’s Defence Ministry has recommended that consumers avoid buying Xiaomi mobile phones and advised people to throw away the ones they have, after a government report found the devices had built-in censorship capabilities. The Guardian, Reuters, 22 September
Central and eastern Europe turn to Taiwan as China relations cool. FT, 22 September
Economy & tech
Zoom’s nearly $15 billion deal for Five9 under US government review over China ties. Justice Department-led Team Telecom is looking into whether Zoom’s China ties could make its acquisition of the software company a national-security risk. WSJ, SCMP, 21 September
Japan fights for lead in advanced chip and EV materials. Sumitomo Metal moves to supply power semiconductor wafers for electric cars as Japanese manufacturers seek a bigger presence in advanced materials for electric vehicles and chips, a key export sector caught up in US-China competition. Nikkei Asia, 21 September
China’s millennials embrace local brands as fast fashion giants like H&M face changing tastes. SCMP, 22 September
China’s Oppo doubles down on 5G with partner Ericsson as US sanctions-hit Huawei leaves void in smartphone industry. SCMP, 22 September
China focus
Macau casino operators fear end of winning streak with new gaming law. Proposals could force operators to become ‘more Chinese’ as Beijing cracks down on capital outflow. FT, 22 September
Chinese government bolsters support for senior care. China had 329,000 retirement homes and other long-care facilities last year, with the authorities taking steps to accommodate the ageing population, Civil Affairs Minister Li Jiheng announced. With increased internal migration, large numbers of seniors are "empty-nesters" living away from their adult children. China Daily, 22 September
'Ugliest building' competition spotlights China's latest bizarre architecture. CNN, 22 September
Longer reads & opinion
Politics trumps money in Chinese markets. Even Beijing may not know whether it will be comfortable with Big Tech in the future and in what form. Andy Xie. FT, 22 September
Evergrande and the end of China’s ‘build, build, build’ model. James Kynge and Sun Yu. FT, 22 September
Evergrande is not China’s Lehman moment – but it’s still scary. Ben Wright. The Telegraph, 21 September
Europe’s Global Gateway plans to counter China, but questions remain. David Sacks. Council on Foreign Relations, 21 September
Xi’s designs on Taiwan will outlast US resolve. Roger Boyes. The Times, 21 September
Will China’s new data security laws complicate Beijing’s move to join the CPTPP?Xinmei Shen. SCMP, 21 September
Chinese mining and indigenous resistance in Ecuador. Cintia Quiliconi and Pablo Rodriguez Vasco. Carnegie Endowment for International Peace, 20 September