China News - 24 May 2023

International

China is ‘an epoch defining challenge’ but not an excuse for ‘blanket descent into protectionism’, warns Sunak. The prime minister discussed Russia, China and the G7 summit at the London Defence Conference hosted by King’s School of Security Studies. King’s College London, 23 May

UK MPs call for urgent investigation of BGI Group’s prenatal tests sold across the UK. A cross-party group of MPs, led by Taiwo Owatemi, wrote to the Information Commissioner’s Office to raise privacy concerns around Chinese genome sequencing company BGI Group and in particular its NIFTY branded prenatal tests. Twitter, 23 May.

Public inquiry into Chinese interference in Canadian elections ruled out. The Canadian prime minister appointed David Johnston, Canada's former governor general, as special rapporteur to investigate alleged Chinese interference. Johnston has advised an inquiry would not be possible due to the sensitivity of the intelligence involved, instead recommending a series of hearings. BBC News, 23 May

Chair of the US select committee on China calls for retaliatory action after Micron ban. Representative Mike Gallagher has pressed the Biden administration to add ChangXin Memory Technologies to the entity list. CXMT is China's leading maker of DRAM memory chips and the domestic competitor most likely to benefit from Micron’s ban. Stephen Nellis and Karen Freifeld. Reuters, 24 May

Russia and China sign economic pacts despite Western disapproval. Prime Minister Mikhail Mishustin held talks with Chinese Premier Li Qiang. The MoUs signed include an agreement to deepen investment cooperation in trade services, a pact on export of agricultural products to China, and another on sports cooperation. Andrew Hayley. Reuters, 24 May

China presses Dutch minister for access to chipmaking tech. Safeguarding the Dutch economy and cyberspace is a key priority for the Netherlands, deputy prime minister and foreign minister Wopke Hoekstra said during visit to China. His chinese counterpart Qin Gang spoke out against planned Dutch export controls on lithography machines. South China Morning Post, 24 May

Chinese scientists war-game hypersonic strike on US carrier group in South China Sea. In a rare paper published in May, Chinese researchers suggested the USS Gerald R. Ford carrier group could be ‘destroyed with certainty’ by a relatively small number of hypersonic strikes. Stephen Chen. South China Morning Post, 23 May

Economy & tech

China faces decades-long growth plateau, according to EU Chamber of Commerce. “We are possibly facing a ‘plateau China’ with a little upside happening for the next 10 or 20 years,” Joerg Wuttke told reporters in Beijing. He went on to add that China has over-expanded on infrastructure, while skimping on social support. Bloomberg, 23 May

China pledges new audit measures to curb risks and stabilise growth. President Xi Jinping chaired a meeting of the CCP audit committee yesterday, which has declared it will boost auditing work to ensure party officials implement policy initiatives. Close attention will be paid to areas such as local government debt, finance, property, food and energy. Clement Tan. CNBC, 23 May

Chip wars with China risk ‘enormous damage’ to US tech industry, says Nvidia chief. Jensen Huang said US export controls introduced by the Biden administration to slow Chinese semiconductor manufacturing had left the Silicon Valley group with ‘our hands tied behind our back’. Madhumita Murgia, Tim Bradshaw and Richard Waters. Financial Times, 24 May

China strengthens cooperations with the International Atomic Energy Agency. At the invitation of the China Atomic Energy Agency (CAEA), IAEA director general Rafael Mariano Grossi is visiting China this week. China has signed new agreements with the IAEA that will strengthen cooperation on small modular reactors, nuclear fusion, and nuclear data, fuel cycle and waste management, as well as communication activities. World Nuclear News, 23 May

Opinion & long reads

How Biden could ‘thaw’ US relations with China. Washington should be prioritising direct, private diplomacy with China and get back into the business of channeling Xi’s ambitions to constructive ends. Ryan Hass. Brookings Institution, 23 May

Xi Jinping’s Succession Problem—and China’s. As he turns 70, Xi’s lack of succession planning could destabilize China and rock the foundations of the global order. Chun Han Wong. Wall Street Journal, 19 May

US reluctance on trade deals sends Latin America towards China. Ecuador’s experience with China shows how the US and other western countries risk losing further ground in Latin America to Beijing unless they can offer better trade and investment opportunities. Michael Stott. Financial Times, 24 May

G7 China statement could enhance global economic stability. The G7 offer to China for managing economic relations is credible, but careful implementation will be critical in persuading China to respond positively. Creon Butler. Chatham House, 22 May

Taiwan’s choice: who will replace Tsai Ing-wen as president amid China tensions? The presidential election, to be held in January 2024, will be decided by 23.5 million people voting on a range of issues, but how each party intends to deal with the threat of China has global ramifications. Helen Davidson and Chi Hui Lin. The Guardian, 24 May