China News - 24 October 2022
International
Xi tightens his hold on power as China’s party congress comes to a dramatic close. Xi Jinping officially secured a third term as the Chinese Communist party’s head as he unveiled a new leadership team packed with loyalists. The 20th Communist party congress concluded with the premature retirement of Premier Li Keqiang, replaced by Shanghai party chief Li Qiang, in what is generally considered to be the second most powerful position in the country. China’s former leader Hu Jintao was unceremoniously escorted from the Great Hall of the People, a rare moment of unscripted drama in what is usually carefully choreographed political theatre. FT, The Times, 23 October
Key analysis and commentary:
Politburo Standing Committee: Who are the men that rule China now? Wanyuan Song & Tessa Wong. BBC, 23 October
What the hell just happened to Hu Jintao? James Palmer. Foreign Policy, 22 October
No women on China's Politburo for first time in a quarter century. Shen Lu. WSJ, 23 October
Xi Jinping is seduced by a vision of greater isolation. A mistake that will make China poorer. Rana Mitter. The Observer, 23 October
Chinese markets tumble as Xi’s tightening grip alarms investors. China’s yuan weakened and the country’s stocks tumbled in Hong Kong to the lowest level since the depths of the 2008 global financial crisis, a stark rebuke of President Xi Jinping’s move to stack his leadership ranks with loyalists. China’s tech stocks keep sliding, with Alibaba, JD.com and Meituan plunging more than 10%. Bloomberg, 24 October
‘Excessive concentration’ of Chinese students could put universities in financial difficulty. Universities have been warned that an “excessive concentration” of Chinese students is putting them at risk as diplomatic relations between London and Beijing sour. Lord Johnson of Marylebone, a former universities minister, said that universities were relying on Chinese students for as much as a third of their total tuition fee income, “creating dependencies that may undermine financial resilience.” The Telegraph, 22 October
Ex-RAF top gun profits from training China's fighter pilots. According to the Mail, Keith Hartley has been at the centre of Beijing’s recruitment drive in his role as Chief Operating Officer at a firm called the Test Flying Academy of South Africa (TFASA), named in this week’s intelligence briefing for recruiting British, Australian, Canadian and New Zealand pilots to work for China. Pilots have been lured by eye-watering salaries — around £250,000 plus expenses, relocation allowances and other perks — to train and share their experiences with the Chinese. Daily Mail, 22 October
Former RAF pilots who went to China to train its air force stole secrets for Britain. Sunday Express, 23 October
Sharp fall in China’s global standing as poll shows backing for Taiwan defence. China’s reputation has deteriorated rapidly over the last four years, particularly in the west, and a large share of global opinion would back some form of international help for Taiwan if Beijing tries to take the island by force, according to a YouGov survey. Respondents in 20 of the 25 countries surveyed prefer the US to China as reigning superpower. The Observer, 23 October
China’s climate goals need $14tn for power and transport, says World Bank. The Chinese plan to achieve net zero emissions by 2060 would need to decouple economic growth and emissions at a faster pace and at a lower income level than in advanced economies, the bank warned, as it made the “significant investments in a massive green infrastructure and technology scale up”. FT, 22 October
Australia and Japan deepen defence pact. The Times, 24 October
Vatican confirms renewal of contested Catholic Church accord with China on bishops’ appointments. Reuters, 22 October
Economy & tech
China economy shows mixed recovery as unemployment ticks up. China’s delayed economic data showed a mixed recovery in the third quarter, with unemployment rising and retail sales weakening in September despite a pickup in growth. GDP grew 3.9% in the July-to-September period from a year ago, rebounding from almost stagnant growth in the second quarter when Shanghai was still in lockdown. Bloomberg, 24 October
China’s YMTC asks core US staff to leave due to chip export controls. Chinese chipmaker YMTC has asked American employees in core tech positions to leave, as it rushes to comply with new US export controls that are disrupting the country’s chip industry. Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC) has suspended production of advanced silicon for Chinese startup Biren Technology to ensure compliance. FT, Bloomberg, 24 October
TikTok denies it could be used to track US citizens. Responding to a report in Forbes that data would have been accessed without users' knowledge or consent, TikTok's communications team said the report lacked "both rigor and journalistic integrity". BBC, 21 October
Tesla slashes prices of Shanghai-made electric cars to keep lead over rivals. SCMP, 24 October
Long reads & opinion
Our chaos is healthier than China’s ‘harmony’. Dominic Lawson. The Sunday Times, 23 October
Olaf Scholz won’t dump China. Will Europe ever learn? As Xi Jinping embarks on another five-year term, fears grow that Germany is repeating the mistake it made by getting too close to Russia. Stuart Lau. Politico, 24 October
Industry, allies and partners face tough choices as US-China tech war escalates. Controls on high-tech exports to China could be the beginning of two entirely separate semiconductor ecosystems. Rebecca Arcesati and Antonia Hmaidi. MERICS, 20 October
The US knows the main threat is China. Lawrence Freedman. The Spectator, 22 October