China News - 25 October 2022
International
Eyes on China policy as Rishi Sunak prepares to take over as PM. The new prime minister will face a challenging geopolitical landscape following Russia’s invasion of Ukraine and a more fraught relationship with Beijing amid growing distrust of China in Britain. Sunak had been seen as more pragmatic on China than predecessor Liz Truss but called China “the biggest long-term threat to Britain” during this summer’s leadership race. As a candidate, he threatened to ban all 30 Confucius Institutes in Britain and create a ‘technology NATO’. SCMP, Beijing to Britain, 24 October
Two Chinese spies charged with trying to obstruct US Huawei investigation. The US unsealed charges claiming two Chinese intelligence officers tried to obstruct a criminal investigation of Huawei Technologies Co. In a complaint made public Monday, the US claims Guochun He and Zheng Wang attempted to recruit an American law enforcement official as an intelligence asset to help interfere with the probe, for the benefit of a company. A Bloomberg source familiar with the matter confirmed the company is Huawei. Bloomberg, BBC, 24 October
Russia ships record volumes of gas and steelmaking coal to China. China imported record quantities of Russian liquefied natural gas and steelmaking coal in September, as total purchases of energy products topped $50 billion since the invasion of Ukraine pushed Moscow to expand sales to its strategic ally. Coking coal imports from Russia jumped to 2.5 million tons in September, from about 900,000 tons in the same month last year. Bloomberg, 25 October
Olaf Scholz warned solo visit to China will break EU unity. Scholz confirmed that he would visit Beijing in the coming weeks. “Considering what’s going on in China … It’s in their interests to divide us. It should be in our interests to stay united,” said Kaja Kallas, the Estonian prime minister. China is “best dealt with when we are 27”, said Krišjānis Kariņš, Latvia’s prime minister. The Telegraph, 24 October
Taxpayer cash tied up in firm linked to Chinese soft power. According to an investigation by The Times, the UK's revamped development finance arm, British International Investment (BII), remains invested in China National Investment & Guaranty Corporation, a credit guarantee company controlled by China's largest state-owned investment holding company. The Times, 24 October
Xinjiang exports to US still higher year on year despite forced labour law. The shipments from Xinjiang to the US have appeared to continue even as officials from the US customs agency insist that they have been effectively enforcing the Uyghur Forced Labour Prevention Act, which kicked in on June 21. SCMP, 25 October
Xi Jinping’s party purge prompts fears of greater Taiwan invasion risk. With Xi Jinping purging political rivals and elevating loyalists to the top ranks of the Chinese Communist party, some are now questioning whether there is anyone left in the party who could stop him from making a rash move. The Guardian, 25 October
Israel expected to tighten restrictions on Chinese investment. SCMP, 25 October
Vietnam ruling party chief to visit China's Xi next week. Nikkei Asia, 25 October
Economy & tech
China shares slide in US as Xi starts historic third term. Chinese technology giants Alibaba and Baidu fell by over 12% in New York on Monday as investors fear the world's second largest economy will be held back by its tough coronavirus restrictions. During the week-long party congress, President Xi offered no timeline for the easing of the country's strict measures to slow the spread of the coronavirus. BBC, 25 October
China to promote foreign investment in manufacturing. China’s National Development and Reform Commission said on Tuesday it will promote foreign investment with a focus on manufacturing industries, after President Xi Jinping called in China to "win the battle" in core technologies during the Communist Party Congress. Reuters, 25 October
Toyota to produce electric car powered by BYD batteries in China. Reuters, 24 October
China focus
Security mission in focus with Xi Jinping’s key Communist Party appointments. The promotions of two key security officers - Chen Wenqing and Wang Xiaohong - signify that Chinese President Xi Jinping prioritises political stability over economic development. SCMP, 24 October
Zhang Gaoli back in seat of power after sex assault claim by tennis star Peng Shuai. Zhang Gaoli, the top official accused of sexually assaulting the tennis star Peng Shuai, reappeared at the 20th Party Congress. It was his first public appearance since last November, when Peng accused him of coercing her into sex. The Times, 24 October
A Chinese bike-share app is now doubling as a matchmaker. Sixth Tone, 24 October
Long reads & opinion
What matters for the ‘update’ of the Integrated Review? James Rogers. Council on Geostrategy, 20 October
Xi Jinping has zombified the Chinese Communist party. Xi is China’s sole and absolute leader now. Cindy Yu. The Spectator, 24 October
Xi Jinping’s China and the rise of the ‘global west’. The world’s advanced democracies are pulling together in an effort to counter China’s international influence. Gideon Rachman. FT, 24 October
Freeze-in-Place: The Impact of US Tech Controls on China. Rhodium Group, 24 October