China News - 25 April 2022
New CRG event: China's Energy Security. China's energy system has been described as “the whale in the global energy economy.” How is Beijing’s quest for energy security impacting global energy markets and geopolitics? Join Tom Tugendhat MP, Helen Thompson, Dr Michal Meidan and Lara Dong on 11 May at 10:30am. Register here.
International
Covid outbreak in China: Shanghai tightens lockdown, Beijing kicks off mass testing. Shanghai’s lockdown is now in its fourth week. In Pudong district, residents on social media shared photos of workers in white hazmat suits installing green fences more than 1.5m high outside buildings to prevent residents from exiting. In Beijing, there were queues at supermarkets amid fears of a Shanghai-style lockdown. The city has begun mass testing of 3.5 million residents in Chaoyang. FT, BBC, The Guardian, 23 April
Investigation. The FT has a deep dive into one of China’s top government officials, epidemiologist Zhong Nashan, and his undisclosed business ties to China’s approved Covid treatments. FT, 25 April
US steps up efforts to court Solomon Islands after China security deal. The White House said the US would expedite the embassy opening in the capital Honiara where it has not had a permanent diplomatic presence since 1993. It said the US would also send a hospital ship to help the islands with public health issues and provide it with coronavirus vaccines. FT, 23 April
Ukraine cannot blind us to China’s mischief. Where is Britain in the unfolding geopolitical contest over the Solomon Islands? Edward Lucas. The Times, 25 April
Macron wins re-election. See useful tweet on attitudes in Beijing towards Macron’s concept of European ‘strategic autonomy’.
China wants us to bow, says defiant Australia. In Anzac day interviews, Defence minister Peter Dutton compared Russia and China to 1930s Nazi Germany, arguing that the best way to secure peace is to prepare for war. The Times, 25 April
India’s trade deficit with China hit record $77 bn in FY22. Customs data showed that India’s exports to China stood at $26.46 billion while its imports from China stood at $103.47 for this period. The Print, 25 April
Economy & tech
Markets slide on Beijing lockdown fears and hawkish Fed. Chinese stocks suffered their worst selloff in more than two years, and the yuan hit its lowest level since late 2020. The FTSE 100 fell by more than 2 per cent after a heavy sell-off in Asia. WSJ, The Times, 25 April
Wall St banks set on Shanghai expansion despite lockdown. Goldman Sachs and JPMorgan Chase are among banks to have moved staff from Hong Kong to Shanghai in recent weeks. FT, 24 April
Long reads
Chinese political interference has Western spooks worried. With money and support, the CCP hopes to neutralise foreign politicians. The Economist, 22 April
How Chinese clothing giant Shein conquered the UK — and undercut rivals on tax. The company claims it pays HMRC an average of more than £25 million per quarter, but it doesn’t itemise VAT or display its UK corporate registration number on its website, a breach of the rules. Sunday Times, 24 April
Is it time to break up HSBC? One shareholder wants the board to take the political risk out of the shares by, in effect, splitting the bank in two. Sunday Times, 24 April