China News - 26 January 2023
New event: Defeating the Dictators. The CRG will host a discussion of CSIS fellow Charles Dunst's latest book, Defeating the Dictators, which lays out a roadmap for strengthening democracies across the world. The Spectator’s Cindy Yu and Wall Street Journal’s Joseph Sternberg will join him on the panel. Palace of Westminster, 7th February (6-7pm). Register here.
International
UK to subsidise semiconductor firms in bid to make domestic chips. The UK government will provide direct taxpayer funding to support British semiconductor companies as part of a long-awaited strategy for the sector, according to sources familiar with the plans. A Whitehall source said officials were eyeing at least £1bn as an initial investment in the programme, including seed money for startups, help for existing firms to scale up, as well as providing new incentives for private venture capital. Bloomberg, The Telegraph, 25 January
UK to be at heart of global prosperity through Indo-Pacific tilt says Anne-Marie Trevelyan. Speaking at Asia House, Indo-Pacific Minister Anne-Marie Trevelyan reaffirmed the UK’s ongoing commitment to the Indo-Pacific region. Trevelyan said China remains incredibly important to the UK as a trading partner and in tackling global challenges, but that the UK is clear-eyed on the need to respond to the systemic challenges which China may pose to our values and interests. Gov.uk, 25 January
China Covid: Coffins sell out as rural losses mount. The BBC has found evidence of a considerable number of Covid-related deaths in China's rural regions, as the virus spread from big cities to more remote areas with older populations. In rural areas there are only sparse medical facilities and those who die at home are mostly not being counted. BBC, 25 January
China says COVID deaths, severe cases have fallen over 70% since peak. Reuters, 25 January
Xi woos America’s Latin and Caribbean neighbours. President Xi has called on Latin American and Caribbean countries to enter a “new era” of co-operation with Beijing, in a renewed effort to build strategic influence in the United States’ backyard. Beijing has stepped up its influence in the Americas through investment in infrastructure, Covid aid and military assistance. The Times, 25 January
China-Australia ties proceeding in ‘right direction,’ Xi says. According to state-run news agency Xinhua, Xi sent a message to Governor General David Hurley to mark Australia Day as relations continue to thaw. A meeting of top trade officials from the two countries is expected to take place within months. Bloomberg, 26 January
European Commission sets up Fellowship Programme on China. The European Commission has set up a Fellowship Programme on China, which aims to foster strategic cooperation with think tanks and universities on China-related issues. ERA, 25 January
China's mining ambitions in Afghanistan haunted by militants. Earlier this month, Xinjiang Central Asia Petroleum and Gas (CAPEIC) signed a 25-year oil extraction deal with the Afghan Taliban authorities for the Amu River oil field in northwestern Afghanistan. Nikkei Asia, 26 January
China's EXIM bank gives Sri Lanka debt extension. Reuters, 25 January
Chinese engineer sentenced to 8 years in US prison for spying. CNN, 25 January
Economy & tech
ASML chief calls for ‘sensible’ chip export controls from Dutch government. The head of ASML, Europe’s largest chip company, has called on the Dutch government to opt for “sensible” controls on exports to China that do not have a “major impact” on key global industries, as lengthy negotiations between Washington and The Hague are poised to close. FT, 25 January
China's open borders and push to stoke economy may revive dealmaking. China's reopened borders and renewed focus on boosting the sagging economy have brightened the deals outlook, with bankers starting to field interest for mergers, acquisitions and fundraising involving the world's second-largest economy. Reuters, 26 January
Australian battery company Recharge Industries makes preliminary bid for Britishvolt. The Times, 26 January
China focus
Natural gas shortages hit China as temperatures plunge. Local governments starved for cash after enormous spending on costly “zero Covid” measures cannot afford to keep up adequate supplies of gas. NYT, Caixin, 25 January
China’s tourist sites welcome huge holiday crowds. Sixth Tone, 25 January
Long reads & opinion
Analysis: Xi puts top brain in charge of Taiwan unification strategy. Wang Huning tasked with creating alternative to 'one country, two systems'. Katsuji Nakazawa. Nikkei Asia, 26 January
Labour urgently needs a distinctive China strategy. Sonny Leong and Sam Goodman. LabourList, 25 January
The return of export controls. A risky tactic that requires cooperation from allies. Chad P. Bowen. Foreign Affairs, 24 January
Beyond Oil: A new phase in China-Middle East engagement. Nurettin Akcay. The Diplomat, 25 January