China News - 23 June 2022
International
G7, NATO leaders to ratchet up pressure on Russia, keep eye on China. G7 leaders will meet in Germany next week, before heading to Madrid for a summit where NATO is expected to announce plans to expand its forces in eastern Europe. Inclusion, for the first time, of leaders from Australia, Japan, South Korea and New Zealand in the NATO summit is aimed at showing that the war in Ukraine has not detracted from Western nations' focus on China, US officials said. Reuters, 23 June
G7 pledges to counter ‘state-driven censorship’ and help protect journalists. SCMP, 23 June
Xi slams sanctions for ‘weaponising’ world economy at BRICS opening ceremony. Chinese President Xi Jinping criticised sanctions for stoking global economic pain, as he seeks to bolster relations with emerging markets in the wake of strained Western ties. Xi also promoted the Global Development Initiative and Global Security Initiative and discussed the Ukraine “crisis” without being critical of Russia or Putin. Bloomberg, BBC, 22 June
EU champion Airbus has deep links to Chinese military industrial complex, report says. Airbus has advanced technology sharing and manufacturing agreements with entities linked to China's state-run military apparatus, a new Horizon Advisory report shows. The findings will beg questions over how long Europe's aviation champion can continue to secure its strong market position in China with such local partnerships. Politico, 22 June
Joe Biden’s trade chief Katherine Tai calls China tariffs ‘significant’ leverage. Tai said removing the duties on $300 billion in annual imports from China is likely to have a limited effect on inflation, indicating she is pushing for the president to maintain tariff pressure on Beijing. Bloomberg, 23 June
More than 8,500 Hong Kong students have applied for UK school places since September. The influx has been attributed to the BN(O) scheme offering city residents a pathway to citizenship, according to a report released by the British government this month. SCMP, 23 June
Hong Kong plunges lower in global human rights index. The region is now on par with Saudi Arabia in some indicators – and coming closer to converging with China. The Guardian, 22 June
Swedish court upholds ban on Huawei sale of 5G gear. Reuters, 22 June
China focus
Flu epidemic risks sweeping China left vulnerable by zero-Covid fixation. Chinese health officials are warning that the country’s focus on eradicating Covid-19 has left it unprepared for a possible flu epidemic that risks killing tens of thousands of citizens. FT, 23 June
At Shanghai congress, all eyes on fate of Xi's close ally Li Qiang. The uncertain future of Shanghai's Communist Party chief looms as the local party committee gathers Saturday for its congress, just weeks after the city's draconian coronavirus lockdown. Nikkei Asia, 23 June
Local officials punished for abusing China’s health code system. Caixin, 22 June
Economy & tech
Jack Ma’s Ant to apply for key licence as soon as this month. The People’s Bank of China intends to accept Ant’s application to become a financial holding company once it’s submitted and will then start a review process, according to people familiar with the matter. Bloomberg, 22 June
China food inflation: pork is the make or break factor in controlling prices. Pork prices have risen nearly 40 per cent since March, pushing wholesale pork prices up a fifth. China consumes half the world’s supply of pork. FT, 22 June
China's Yangtze Memory takes on rivals with new chip plant. Nikkei Asia, 23 June
BMW opens electric car plant in China. WSJ, 23 June
Long reads & opinion
Exploring the opportunities and challenges of research engagement with China. RAND, 22 June
The only way to convince SoftBank to list Arm in London is on merit. Government idea to force Japanese firm to list Cambridge computer chip designer in UK seems desperate. Nils Pratley. The Guardian, 22 June
She was loved for standing up to China. She may die in jail. The story of Claudia Mo is also that of Beijing’s tightening grip on Hong Kong. Primrose Riordan and Chan Ho-him. FT, 23 June
Best and Bosom Friends: Why China-Russia Ties Will Deepen after Russia’s War on Ukraine. Jude Blanchette and Hal Brands. CSIS, 22 June