China News - 23 August
International
US commerce secretary to visit China next week for talks. Commerce Secretary Gina Raimondo will visit China next week for meetings with Chinese government officials and US business leaders. Although a reported hacking of her department’s emails last month, Raimondo “looks forward to constructive discussions” during her visit. David Shephardson. Reuters, 22 August
No explanation as Xi Jinping unexpectedly skips his speech at BRICS Business Forum. Xi was expected to deliver a speech to the BRICS Business Forum on Tuesday. Instead, Commerce Minister Wang Wentao read the speech that included saying the US had a tendency towards “hegemony”. Jevans Nyabiage. South China Morning Post, 23 August
Brazil’s Luls says BRICS not meant to challenge G7. In a live broadcast on Tuesday, the Brazilian president said “we do not want to be a counterpoint to the G7, G20 or the US… We just want to organise ourselves”. Gabriel Araujo. Reuters, 22 August
South China Sea: Philippines resupplies Spratlys shoal troops. Manila says Beijing’s recent attempts to “block, harass, and interfere with the supply mission” were unsuccessful. The Philippines have now delivered fresh supplies to the remote outpost. BBC News, 22 August
Japan’s release of radioactive water from Fukushima angers China. China has warned that it will take “all steps necessary” to protect food safety. Officials have also stated that the sea is “not a sewer” for nuclear contaminated water. Chan Ho-him and Kana Inagaki. Financial Times, 22 August
Hong Kong to ban some Japanese seafood from August 24. Although approved by the UN nuclear watchdog, Hong Kong’s leader said he strongly opposed Japan’s release of treated radioactive water from the crippled Fukushima into the sea, and would “immediately activate” import controls on Japanese seafood. Twinnie Siu, Joyce Zhou and Farah Master. Reuters, 22 August
Economy & Tech
China urgently needs to address economic uncertainty- EU business group chief. Jens Eskelund, President of the European Chamber of Commerce in China, said “it is a matter of urgency” for Beijing to send a clear message on how it plans to revive its economy, and provide clarity on its national security crackdown that is causing concern among the foreign business community. Laurie Chen. Reuters, 22 August
China’s rate caution shines light on $56tn banking system. The recent cuts were more limited than expected, experts say they highlighted a dilemma for Beijing. The CCP needed to balance any desire to stimulate the stuttering economy with the need to preserve the stability of China’s banking system and the weakening yuan. Cheng Leng and Thomas Hale. Financial Times, 22 August
Investors sound alarm on Arm’s reliance on China revenues. Prospective investors are concerned over the UK chip designer’s exposure to China, as there are “significant risks” in the way the company does business there. According to its IPO prospectus filed on Monday, Arm is now heading for a US listing. Leo Lewis, Kana Inagaki, Ryan McMorrow and Qianer Liu. Financial Times, 22 August
China’s cathode billionaire targets US battery market via South Korea IPO. Shanghai-listed Ronbay Technology dominates part of the global market for high-nickel cathode electrodes. Bai Houshan, the owner, is considering listing some of his empire in South Korea to help the company sell and invest in the US following Biden’s new restrictions. Edward White, Christian Davies, Song Jung-a and Gloria Li. Financial Times, 22 August
Opinion & long-reads
Will Chinese deflation help cure the West’s inflation problem? Opposing Western and Chinese banks could in fact be the solution that each other are looking for. China’s inflation could spill over into Western markets and cool global inflation. Nicole Goodkind. CNN Business, 22 August
The Guardian view on the Chinese economy: it looks bad. What we can’t see may be worse. Under communism, the economy has always served politics. The question is whether China’s recent political tightening is affecting economic performance, and even our knowledge of it. The Guardian, 21 August
How China can step up to its responsibilities in a rising Global South. The CCP should encourage think tanks and institutions in the Global South, and conduct joint research. It should also promote a new world order aligned with the demands of the Global South. Wang Huiyao. South China Morning Post, 22 August