China News - 27 June 2022
International
G7 summit
G7 leaders formally launch Partnership for Global Infrastructure and Investment. The fund was relaunched at the start of the G7 summit in Germany on Sunday with the goal of providing an alternative to the Chinese Belt and Road Initiative that Beijing has used for more than a decade to build economic ties with developing countries. The aim would be to leverage a total $600bn (£490bn) of private and public funds by 2027, with US President Biden claiming $200bn over the next five years would come from the US. White House, The Guardian, 26 June
UK and allies launch initiative to help Pacific Island nations. This weekend’s summit also saw the US, UK, Australia, New Zealand and Japan launch a fresh initiative to help Pacific Island nations, in an effort to increase their presence in a maritime region that is increasingly targeted by China. The “Partners in Blue Pacific” will comprise of a range of measures, including boosting diplomatic presences across the region, and helping countries tackle climate change and illegal fishing. Gov.uk, FT, 25 June
The G7 conundrum: How hard should you push China in a crisis? Politico, 25 June
British microchip factory faces shutdown if China deal approved, ministers warned. Britain’s biggest microchip factory is likely to be closed and production shifted to Shanghai if ministers allow a Chinese takeover of the business to go ahead, a report has warned. Policy Exchange said Kwasi Kwarteng, the Business Secretary, should consider these implications when he is deciding whether to undo the deal, alongside American concerns and the military applications of the company’s technology. The Telegraph, 27 June
Ministers approve funding for £20bn Sizewell C nuclear plant in major boost for EDF. EDF, the state-owned French energy giant which owns a stake in Sizewell C alongside China’s CGN, is in advanced talks with the Government about further cash to move the proposed scheme forward, ahead of a final investment decision next year. It comes as ministers seek to end the role of the Chinese state company because of security concerns, leaving it more reliant on other financial backers. The Telegraph, 25 June
Pensions minister bans Hikvision cameras. The Department for Work and Pensions said it “will not be using any security camera equipment manufactured in China” as part of an overhaul of its security systems. Chinese CCTV company Hikvision said that a distribution partner had lost a bid to provide cameras to the DWP. The Telegraph, 26 June
Isolating China won’t help Hong Kong and Uyghurs, says Dutch leader. Rutte, whose country is among the European Union countries most closely intertwined with Chinese production chains, said the EU should address those topics but shouldn’t isolate countries that don’t live up to European standards. Bloomberg, 25 June
Hong Kong activist granted political asylum by Sweden in security law first for EU. SCMP, 26 June
Ireland: overseas investors to face new veto powers. The Sunday Times, 26 June
China focus
Xi Jinping to visit Hong Kong to mark 25th anniversary of handover from Britain. Chinese President Xi Jinping will visit Hong Kong next week to mark the 25th anniversary of the city’s handover and inaugurate a new government. State news agency Xinhua reported the planned visit on Saturday, following uncertainty over whether Xi would visit as the territory experiences a resurgence of Covid-19 cases. WSJ, 25 June
Hong Kong handover anniversary analysis and commentary:
We let Hong Kong down: Chris Patten on the end of colonial rule. Hong Kong’s last governor complains of being thwarted on many fronts as he oversaw the handover in 1997. Chris Mullin. The Spectator, 25 June
Twenty-five years ago there was hope. Now Hong Kong knows better. Stephen Vine. The Sunday Times, 26 June
China and Hong Kong: Five moments in fraught relationship since handover. Tessa Wong. BBC, 27 June
Shanghai reports no new Covid cases for first time since March. Shanghai Party chief Li Qiang said that authorities had "won the war to defend Shanghai" and that Beijing's epidemic prevention decisions were "completely correct". The Guardian, 25 June
Officials vie to offer pledges of loyalty to President Xi ahead of 20th Party Congress. At least nine provincial party chiefs have written long articles in party publications extolling China’s president and pledging loyalty to him. SCMP, 26 June
Economy & tech
China regulator proposes new rules to better prevent monopolies. The State Administration for Market Regulation said companies would need to seek an antitrust review about their planned mergers or acquisitions if one of the parties' global annual revenue hit over 12 billion yuan ($1.79 billion). Nikkei Asia, 27 June
Jaguar Land Rover's battle to stop dealers selling in China. According to The Telegraph, Jaguar Land Rover is battling to stop car dealers from sending its cars to China and other hugely lucrative markets, which is compounding shortages in the west and widening price gaps globally. The Telegraph, 26 June
Tencent wants to be foreign automakers’ go-to company for tech in China’s electric car market. CNBC, 27 June
China Evergrande faces winding-up lawsuit in Hong Kong. Reuters, 27 June
Opinion & long reads
Matthew Pottinger on flipping the US-China paradigm on its head. The Wire China, June 25
Covid in China: Xi’s fraying relationship with the middle class. The new buzzword for Chinese people sick of being locked down is ‘runxue’: the study of leaving the country completely. Edward White and Eleanor Olcott. FT, 27 June
How TikTok is turning a generation of video addicts into a data goldmine. The Chinese tech giant is taking surveillance capitalism to a new level. John Naughton. The Observer, 26 June
China’s ‘Fragmented Authoritarianism’ during the COVID-19 pandemic. Zhenze Huang. The Diplomat, 25 June