China News - 26 May 2022
International
Newport Wafer Fab: Chinese buyout of UK's biggest chip plant to be reviewed. Business Secretary Kwasi Kwarteng will make a national security assessment of the takeover of Newport's Wafer Fab by Nexperia that could force the company to reduce its shareholding back to the 14% it originally owned. The government now has 30 working days (extendable by up to a further 45 working days) to carry out an assessment under the National Security and Investment Act. CRG co-chair Tom Tugendhat said: “We need to maintain a base to build on to ensure the UK is resilient. This isn’t just about security today but independence tomorrow.” Gov.uk, BBC, 25 May
Inquiry launched into the Semiconductor Industry in the UK. BEIS Committee, 25 May
Xi Jinping defends China’s human rights record to visiting UN commissioner. China’s leader, Xi Jinping, has spoken with the UN human rights chief, Michelle Bachelet, as she visited the Xinjiang region, warning against the politicisation of human rights as an “excuse to interfere in the internal affairs of other countries” and defending his government’s record. A PRC readout claimed that Bachelet told Xi she “admired China’s efforts and achievements in eradicating poverty, protecting human rights, and realising economic and social development”. The Guardian, 25 May
Penny Wong tells Pacific nations ‘we have heard you’ as Australia and China battle for influence. During a speech in Fiji, Australia’s new foreign affairs minister promised to respect Pacific priorities and institutions as she set out an implicit contrast with China, which is pursuing a sweeping regional economic and security deal with Pacific nations that would dramatically expand Beijing’s influence and reach into those countries. The Guardian, 26 May
China Foreign Minister hopes relations with Solomon Islands can be model for Pacific islands. Reuters, 26 May
ASEAN citizens view China as most important future partner, poll shows. The result may reflect China increasing its clout in Southeast Asia through vaccine diplomacy, a Japanese official said. SCMP, 26 May
Rare ship-to-ship transfers keep oil moving from Russia to China. Buyers are using creative ways to maintain flows as more shipowners shun Russian oil due to the potential fallout from financial sanctions, according to shipbrokers. Bloomberg, 26 May
China must destroy Elon Musk's satellites with ‘hard kill’ weapon, say academics. Researchers from the Beijing Institute of Tracking and Telecommunications Technology called Starlink a threat to China’s national security because of its “huge potential for military applications”. The Telegraph, 25 May
After Biden visit, China organises military drills near Taiwan. NYT, 25 May
International student numbers in UK could rise 50% over five years. The Times, 26 May
China focus
China’s premier issues stark warning on economy as growth stalls. Li Keqiang has said the world’s second-largest economy could struggle to record positive growth in the current quarter, urging officials to help companies resume production after Covid-19 lockdowns. Li said that the economy was “to some degree worse than” it had been at the start of the pandemic in early 2020, adding that it could very difficult to pull it back without “paying a huge price”. FT, 26 May
China’s top two leaders diverge in messaging on Covid impact. WSJ, 25 May
Shanghai port rebounds as lockdown loosens but backlog remains. Daily container throughput - a measure of cargo handling activity - at Shanghai port has rebounded to 95.3% of the normal level, though the backlog from disruptions to the port and nearby factories will likely continue to cause shipping congestion well into the year. Bloomberg, 26 May
Covid lockdown costs Shanghai its China currency trading crown. Shanghai handled fewer currency deals than Beijing in April, to rank second among China’s 36 provinces and municipalities, according to the State Administration of Foreign Exchange. Bloomberg, 26 May
Senior diplomat Le Yucheng likely to head agency overseeing Chinese state broadcasting, sources say. SCMP, 25 May
The rise of ‘bai lan’: why China’s frustrated youth are ready to ‘let it rot’. The Guardian, 26 May
Long reads & opinion
One-China principle is the bedrock of peace across the Taiwan Strait. China’s sovereignty and territorial integrity on the Taiwan question must be respected. Qin Gang (PRC Ambassador to the US). SCMP, 26 May
China, meet Fourth Estate. China is working hard to shape public opinion in Africa, but its more lasting impact could be on the infrastructure of media itself. The Economist, 20 May
Five things we learned about China’s ambitions for the Pacific from the leaked deal. Anna Powell. The Guardian, 26 May
‘China is all-out against us’: an interview with Lithuania’s foreign minister. Katy Balls. The Spectator, 26 May