China News - 26 January 2022
International
UK government launches first ever Cyber Security Strategy to step up Britain’s defence and resilience. Britain’s public services will be strengthened to further protect them from the risk of being shut down by hostile cyber threats, Chancellor of the Duchy of Lancaster Steve Barclay announced. The new strategy includes a Cyber Coordination Centre, based in the Cabinet Office, “which will transform how data and cyber intelligence is shared,” and will be backed by £37.8 million invested to help local authorities boost their cyber resilience. Gov.uk, Beijing to Britain, 25 January
New data: demand for a UK university education cools in China. Figures from the Higher Education Statistics Agency (Hesa) revealed that the number of new Chinese students enrolling at British universities fell for the first time last year, despite the fact that more Chinese applicants were living in Britain in 2021 than ever before. CRG co-chair Tom Tugendhat MP commented: “It’s important that our universities are beginning to diversify international student recruitment, instead of relying on one authoritarian country.” The Times, 26 January
EU commits to ban forced labour goods but is divided on how to do it. The European Union is moving forward with plans to outlaw goods made using forced labour, senior officials said, citing allegations of widespread uses of such practices in the Chinese region of Xinjiang. An internal battle is under way as to how a ban should be structured and implemented, and under whose remit it should fall. SCMP, 25 January
Lawmakers from UK, EU and other countries call for blacklists over Uygur treatment in Xinjiang. SCMP, 26 January
Lithuania considers modifying Taiwan representation name to defuse row with China. Lithuanian officials, seeking to defuse a row with China, are discussing whether to ask their Taiwanese counterparts to modify the Chinese translation of the name of Taiwan's de-facto embassy in Vilnius, two sources told Reuters. Reuters, 26 January
Xi Jinping meets Olympics chief for Covid containment talks ahead of Winter Games. The discussions on Tuesday between Bach and Xi included the closed-loop system for the Beijing Games, which is designed to inhibit any transmission of the virus from Olympic participants to the wider population. Organisers of the Games have eased a Covid-19 testing requirement for participants, amid a growing number of cases in the capital. FT, BBC, Bloomberg, 26 January
Xi warns China’s low-carbon ambitions must not interfere with ‘normal life’. China’s ambitious low-carbon goals should not come at the expense of energy and food security or the “normal life” of ordinary people, Xi said, signalling a more cautious approach to climate change as the economy slows. The Guardian, 26 January
Ecuador's president wants to untie oil output from debt on China visit. Ecuador's President Guillermo Lasso said he will seek to renegotiate $4.1 billion of Ecuador's debt to China with President Xi Jinping. In the last decade China has become Ecuador's primary financial partner, with crude for credit agreements, open credit arrangements and multi-million dollar investments in the mining industry and dams. Reuters, 25 January
Report: India trade deal ‘comes with risk’ but UK could gain first-mover advtantage. The Guardian, The Times, 26 January
Xi vows closer China-Central Asia community with shared future. Xinhua, 25 January
Concerns as China builds bridge on lake at disputed India border. Al Jazeera, 25 January
Economy & tech
Global banks push back against Beijing’s new overseas listing rules. International banks have warned Beijing that an overhaul of the regime for listing Chinese businesses overseas may deter them from advising on initial public offerings. The Asia Securities Industry and Financial Markets Association (Asifma) has written to Chinese regulators pleading for clarity about rules that were proposed after the calamitous listing of ride-hailing app Didi Chuxing in New York last year, according to Financial Times sources. FT, 26 January
US warns of fragile chip supply as inventory falls to just five days. According to a survey by the department of roughly 150 companies worldwide, manufacturers’ median chip inventory plunged from 40 days supply in 2019 to about five days late last year. The global chip shortage was prompted by a surge in demand for consumer electronics during the pandemic, and has been exacerbated in the US by sanctions on major suppliers in China. FT, 25 January
US House leaders unveil chips, China competition bill. Reuters, 26 January
Shenzhen gets green light for next wave of reforms. China's state planner has given its blessing for the southern city of Shenzhen to pursue reforms in areas such as relaxed market access for cross border data trading and an electronics trading platform, guidelines published on Wednesday show. Reuters, 26 January
IMF forecasts US and China slowdowns will hold back growth. NYT, The Times, 26 January
European Chamber of Commerce: Hong Kong may maintain COVID isolation until 2024, risking exodus. Reuters, 26 January
China introduces state-backed NFT platform unlinked to cryptocurrencies. SCMP, 25 January
China focus
China unveils 10 measures to save energy and cut emissions as it takes steps to achieve 2060 carbon neutral goal. The State Council announced a comprehensive plan for energy conservation and emission reduction as part of the 14th five-year plan from 2021 to 2025. The plan calls for China’s energy intensity to drop by 13.5 per cent in 2025 compared with 2020 levels. SCMP, 25 January
Chinese TV dramas to label foreign actors in credits. Under pressure from the government, Chinese television dramas will display the nationalities of actors who have foreign citizenship in their credits, a move that could limit dual citizens' opportunities to appear on-screen. Nikkei Asia, 25 January
Hong Kong security chief says new national security laws will reflect "importance of spies". Reuters, 26 January
Outrage over death of 'twice abandoned' China teen. BBC, 25 January
Opinion & editorial
The winding road to global recovery is through a thicket of risks. These hurdles, namely Omicron, supply shortages and unexpectedly high inflation, are all on the downside. Martin Wolf. FT, 25 January
Use ridicule as a tool to make Beijing squirm. Matthew Syed. The Times, 26 January
Biden’s China policy needs to be more than just Trump lite. Jeffrey A. Bader. Brookings, 25 January
Long reads
The rise of China's secondary sanctions. In its dispute with Lithuania, Beijing has debuted a form of economic pressure analogous to America's powerful secondary sanctions. Bethany Allen-Ebrahimian. Axios, 25 January
In pictures: Global SinoPhoto Awards 2021 winners. The annual international contest aims to showcase Chinese culture through high-quality, remarkable images. The Times, 25 January
Podcast: international investors in Chinese companies face growing risks. The FT's global China editor James Kynge and markets editor Katie Martin discuss the changing dynamics of investing in China and examine whether the opportunities to make money are worth the growing political risk. FT, 26 January