China News - 26 September
International
Nato’s €1bln venture fund offers defence start-ups an alternative to China. Nato’s assistant secretary-general, David van Weel, said “there’s a lack of venture capital for deep tech, especially in Europe… We wanted to provide more capital on our side to invest in these companies to avoid them having to turn to Chinese investors''. Ivan Levingston, Henry Foy and Tabby Kinder. Financial Times, 25 September
Brussels trade chief says China-EU ties “at a crossroads”. Valdis Dombrovskis said the two sides could “drift apart” as a result of Beijing’s support for Moscow over Ukraine and
“discriminatory” trade rules. He has warned that Beijing must change its ways or lose investment and trade from the EU. Andy Bounds. Financial Times, 25 September
Taliban weighs using US mass surveillance plan, met with China’s Huawei. The Taliban are creating a large-scale camera surveillance network that could involve repurposing a plan crafted by America before their pull out in 2021. There are reports that the Taliban are in conversation with Huawei for possible cooperation. Mohammad Yunus Yawar and Charlotte Greenfield. Reuters, 25 September
Japan to ensure stable energy supply amid US sanctions on Russia. Industry Minister, Yasutoshi Nishimura, said Japan will make comprehensive decisions to ensure the stability of Japan’s energy supply while cooperating with the G7 group amid fresh US sanctions on Russia. Yuka Obayashi and Katya Golubkova. Reuters, 25 September
China lab suspected of Covid leak stripped of US funding for violating biosafety rules. The Wuhan Institute of Virology has been stripped of US funding for 10 years after conducting dangerous experiments that increased the potency of coronavirus before the pandemic. Sarah Knapton. Telegraph, 24 September
Economy & Tech
China bans Nomura senior investment banker from leaving the mainland. Charles Wang Zhonghe has been prohibited from travelling outside the mainland. This comes amid growing concerns among Western businesses about darkening prospects in China’s economy and its tough operating conditions. Selena Li and Kane Wu. Reuters, 25 September
Germany leads push to delay electric vehicle tariffs between EU and UK. German car makers support the UK’s call for a 3 year pause on requirement for batteries to be produced locally. Andy Bounds. Financial Times, 25 September
China’s World Bank plans to triple climate change lending by 2030. The Asian Infrastructure Investment Bank is set to unveil a “climate action plan” this week, which will become its top priority. James Kynge. Financial Times, 24 September
Western companies take slow steps towards China “de-risking”. Only a small number of companies, such as US toy maker Hasbro, have announced plans to quit manufacturing in China completely. Instead, many are insulating their China operations rather than reducing them. Yuan Yang and Patricia Nilsson. Financial Times, 25 September
Solar supply chains must diversify away from China, warns EDP. EDP chief executive, Miguel Stilwell d’Andrade, warns that developers need to “de-risk” their supply chains to help advance the move to clean energy. This comes after his supply chains were hit by delays in shipping solar panels from China to the US. Rachel Millard and Barney Jopson. Financial Times, 25 September
Inside Vietnam’s plans to dent China’s rare earths dominance. A Western-backed project would support Vietnam's plans to restart its biggest rare earths mine next year. Francesco Guarascio and Khanh Vu. Reuters, 25 September
Opinion & long-reads
The shadowy Chinese firm that owns chunks of Cambodia. China undertook a major scheme to build a self contained tourist city. Some have called this Chinese colony a venue for “feasting and revelry” with its international airport, casinos, luxury villas, hospitals and power stations. Beijing’s economic footprint now dwarfs that of any other country- it provides 50% of all direct investment and most of its foreign aid. Lulu Luo and Jonathan Head. BBC News, 25 September
Guangdong’s stalled energy transition reflects Beijing’s mixed climate messages. Guangdong’s renewed investment in fossil fuels shows provincial decision-making is at a crossroads, as Beijing balances energy security against climate goals. Lu Chen and August Rick. South China Morning Post, 25 September
China property: accelerating meltdown threatens other markets. The nervousness of the property market could easily spread into commodities. Financial Times, 25 September
12,000 athletes and a lotus-shaped mega stadium. The Asian Games comes to China. The ceremony was attended by around 50,000 people including international dignitaries such as Cambodian King Norodom Sihamoni and Syrian President Bashar al-Assad. Jake Kwon. CNN, 23 September