China News - 23 January 2023

New event: Defeating the Dictators. The China Research Group will host a discussion of CSIS fellow Charles Dunst's latest book, Defeating the Dictators, which lays out a roadmap for strengthening democracies across the world. The Spectator’s Cindy Yu and Wall Street Journal’s Joseph Sternberg will join him on the panel. Palace of Westminster, 7th February (6-7pm). Register here.

International

Lunar New Year 2023 celebrated around the world. Sunday marked the first day of the Lunar New Year as people around the world celebrated with parades, prayers, and festive displays of lanterns and fireworks. Thousands of people lined the streets of London, Liverpool and Manchester to welcome in the Year of the Rabbit. Meanwhile, top Chinese government epidemiologists played down the possibility of a fresh wave of Covid cases over the Lunar New Year period amid estimates that 80 per cent China’s population has been infected. BBC, The Guardian, SCMP, 22 January

Ten people killed in California gun attack during Chinese New Year celebrations. Ten people were killed in a shooting during Chinese Lunar New Year celebrations in Monterey Park, California, police have confirmed. A man found dead inside a white cargo van after a standoff with police has been confirmed as the person suspected of carrying out the mass shooting. Sky News, 22 January

UK-China

New investigation: Universities have ‘risky’ ties to China. An investigation by The Times reveals that dozens of British universities have partnered with institutions in China connected to the Uyghur genocide, nuclear weapons development, espionage, defence research or hacking. CRG chair Alicia Kearns commented: “Universities must be clear-eyed about relationships they are entering into with institutions designed to bolster China’s military capabilities, or those guilty of facilitating grave human rights abuses.” The Times, 23 January

UK universities target overseas students from outside China. UK universities are seeking to attract more overseas students from outside China owing to concerns over political tensions and a heavy reliance on this market for income. The number of students from India overtook those from China for the first time last year, according to Home Office figures. “There is absolutely an explicit effort to diversify,” said Vivienne Stern, head of sector body Universities UK. FT, 20 January

Sunak urged to cut UK use of Taiwan chips due to China risk. Prime Minister Rishi Sunak’s government should take steps to cut UK reliance on semiconductors from Taiwan because of the threat posed by China, according to an unpublished draft semiconductor strategy seen by Bloomberg. The study said the government should back domestic specialisms, such as compound semiconductors. Bloomberg, 20 January

UK High Court judge finds ‘striking consensus’ of abuses in Xinjiang. The High Court in London has said there is a “striking consensus” of “clear and widespread abuses” in Xinjiang’s cotton industry, despite refusing a legal challenge from Uyghur rights activists demanding the UK investigate its imports from the Chinese region. FT, 20 January

Chinese tech giants Huawei and TikTok bankrolling APPG in lobbying effort. The Sunday Mirror, 22 January

Fears of shortages as Chinese New Year and Covid cause factory closures and shipping delays. Factory shutdowns for the Chinese New Year and China’s ongoing rampant Covid-19 outbreak are set to cause renewed supply chain shortages in Britain and Europe, according to shipping industry leaders. iNews, 23 January

South Africa confirms naval drills with Russia and China. The South African government defended plans to conduct joint military exercises with the Russian and Chinese navies off its east coast next month, in a move to "strengthen the already flourishing relations between South Africa, Russia and China." DW, 20 January

Germany eyes 'China lite' future that is less dependent in new strategy. Nikkei Asia, 22 January

Tibet avalanche kills 28 as search called off. BBC, 21 January

Economy & tech

Government hands £3m to UK microchip company owned by Chinese firm with military ties. Dynex Semiconductor, a company ultimately owned by blacklisted Chinese firm CRRC Corporation, was handed £3m in grants and support from the Government over the last decade. Chris Cash, Director of the CRG, said the disclosures raised a “question of whether UK Research & Innovation (UKRI) funding should be subject to more rigorous national security scrutiny.” The Sunday Telegraph, 22 January

Chinese firm CATL to develop huge Bolivian lithium deposit. A giant Chinese battery company, CATL, has won a bidding process to develop Bolivia's huge lithium reserves. The ultra-light metal is used in electric vehicle (EV) batteries, with more than $1bn (£807m) to be invested in the project's first phase. BBC, 21 January

Japan, Netherlands poised to join Biden’s chip crackdown on Beijing. New Dutch and Japanese export controls may be agreed to and finalised as soon as the end of January, according to people familiar with the matter. Bloomberg, 23 January

Taiwan fines Foxconn for investment in PRC semiconductor company. Caixin, 21 January

Opinion & editorial

The anti-humans are simply wrong, as ever. China’s social crisis is a hollow triumph for the population control freaks. Dominic Lawson. The Sunday Times, 22 January

Democracies shouldn’t gloat about China’s stumbles. The country still boasts a technocratic elite capable of recovering from even calamitous policy errors. Pankaj Mishra. Bloomberg, 23 January

Great power conflict puts the dollar’s exorbitant privilege under threat. Zoltan Pozsar. FT, 20 January

Taiwan’s top diplomat in Washington walks a delicate line. Michael Crowley. NYT, 21 January

Long reads

Adam Tooze: Signs of economic rebound in China. Cameron Abadi. Foreign Policy, 20 January

Riding the slow train in China. Talking to migrant workers heading home for lunar new year. David Rennie. The Economist, 20 January

China’s global mega projects are falling apart. Many of China’s BRI projects are plagued by construction flaws. Ryan Dube and Gabriele Steinhauser. WSJ, 20 January