China News - 25 August
International
BRICS leaders invite 6 nations including Saudi Arabia to join bloc. South African President, Cyril Ramaphosa has announced the BRICS group has invited Argentina, Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates to become new members of the bloc. Max Seddon and Heba Saleh. Financial Times, 24 August
Expansion will bring a new vitality to BRICS - China’s Xi. Xi commented that both the old and new members of BRICS are “all countries with great influence and shoulder important responsibilities for world peace and development”. Ethan Wang and Liz Lee. Reuters, 24 August
Bloc invites new members, plans two-tier system. Indonesia has pulled out at the last moment, causing speculation as to their reason. Bloomberg, 24 August
China looks forward to discussions with US commerce chief as trade flows slow. Gina Raimondo is visiting China next week as part of a series of high-level diplomatic visits aimed at halting a slide in relations between the world’s two largest economies. China’s commerce ministry spokesperson said that Beijing is looking forward to in-depth discussions with the US on resolving economic and trade issues. Joe Cash. Reuters, 24 August
Oldest US-China science deal up in the air as Washington seeks to “amend terms”. The 1979 Science and Technology Agreement has generally been renewed every five years, serving as an “umbrella agreement” for bilateral science and technological cooperation between the countries. There is increasing uncertainty over the continuation of the deal as the US seeks to reset China ties amid some of their worst tension in recent years. Echo Xie. South China Morning Post, 24 August
China’s Xi vows to support Cuba in defending its national sovereignty. The Chinese president met with Cuba’s president, Miguel Diaz-Canel, on the sidelines of the BRICS summit on Wednesday. Xi has pledged to support Cuba’s defence of its national sovereignty, opposing foreign interference and a US economic blockade. Bernard Orr. Reuters, 24 August
Taiwan proposes $3bn spending on new weapons, gets F-16 boost. The Taiwanese government has announced that it will spend an extra T$94.3bn to buy weapons next year, including fighter jets. Ben Blanchard and Faith Hung. Reuters, 24 August
Economy & Tech
China quietly recruits overseas chip talent as US tightens curbs. China’s primary replacement for the Thousand Talents Plan is Qiming, which is overseen by the Ministry of Industry and Information Technology. It uses online recruitment adverts, signing bonuses and home-purchase subsidies to attract chip talent. Julie Zhu, Fanny Potkin, Eduardo Baptista and Michael Martina. Reuters, 24 August
China imports record amount of chipmaking equipment. Chinese customs data shows the country’s chip production tool imports are up 70% in June and July, totalling nearly $5bn. Most of the imports come from Japan and the Netherlands. Andy Lin and Qianer Liu. Financial Times, 25 August
China capitalises on US sanctions in bid to dethrone dollar. When Argentina repaid the IMF $2.7bn from its latest $44bn bailout in renminbi not US dollars, the Argentinian economy ministry said “there are indications of broader changes happening in the international financial system, which will become permanent”. Michael Scott and James Kynge. Financial Times, 24 August
China allows Allianz to set up onshore fund management company. Allianz Global Investors were granted approval by China’s securities regulators to set up an onshore fund management company. An investment management subsidiary of Allianz has committed 300mn yuan to establish the unit in China’s fund market. Selena Li. Reuters, 24 August
China bans Japanese seafood over Fukushima nuclear waste water release. China (also Japan’s biggest seafood export market) has banned all Japanese aquatic products to “prevent risks from Japan’s discharge of nuclear-contaminated waste water”. Hong Kong announced a similar ban earlier in the week. Josephine Ma. South China Morning Post, 24 August
Opinion & long-reads
China’s economy is in trouble- and Beijing appears powerless to do anything about it. Over the past few decades, China’s economy has been consistently growing at the rate of 8-9% a year. Suddenly, its growth rate has slumped to half that. Chris Blackhurst. The Independent, 23 August
China insurance: reopening leaves market unlocked and loaded. As China’s economy has slowed down considerably, consumers have become more cautious, encouraging them to spend rainy day money in insurance plans. Financial Times, 24 August