China News - 27 October
International
Li Keqiang: Ex-Chinese premier side-lined by Xi dies at 68. Li, who stepped down as premier in March, had a sudden heart attack on Thursday and died early on Friday in Shanghai. His death means the loss of a prominent moderate voice within the CCP. Yvette Tan and Stephen McDonell. BBC News, 27 October
UK to set up world’s first AI safety institute. Sunak said the institute “will advance the world’s knowledge of AI safety and it will carefully examine, evaluate and test new types of AI so that we understand what each new model is capable of, exploring all the risks from social harms like bias and misinformation through to the most extreme risks of all”. William James. Reuters, 26 October
Middle East in focus as US and China meet to pave way for Biden-Xi summit. The Middle East war has added a fresh dynamic to the relationship between the two countries. Washington hopes Beijing could use its influence with Iran to help ensure the Israel-Hamas conflict does not spread to the wider region. Humeyra Pamuk, David Brunnstrom and Laurie Chen. Reuters, 26 October
White House meeting: key takeaways from Anthony Albanese’s visit to Washington. Australia needs Biden to be focused on and engaged in the Pacific as China is becoming the regional hegemon, and Australia is dependent on the US for much of its security. Katharine Murphy. The Guardian, 26 October
Joe Biden warns China not to attack the Philippines. Biden said “the US defence commitment to the Philippines is ironclad. Any attack on Filipino aircraft, vessels or armed forces will invoke our mutual defence treaty with the Philippines”. Demetri Sevastopulo. Financial Times, 25 October
China’s youngest ever crew of astronauts head to space station. The spacecraft Shenzhou-17, or “Divine Vessel”, lifted off atop a Long March-2F rocket from the Jiuquan Satellite Launch Centre. Ryan Woo. Reuters, 26 October
Economy & Tech
Xi Jinping tightens financial sector control as a new super-regulator takes shape. The new Central Financial Commission will serve as the de facto watchdog, planner and decision maker for China’s $61tn financial sector. It will weaken the power of state institutions such as the People’s Bank of China. Cheng Leng and Edward White. Financial Times, 26 October
Nomura overhauls China joint venture as losses mount. Japan’s largest investment bank Nomura has begun restructuring its loss making joint venture in China after delays in securing the licences needed to expand its business there. Leo Lewis and David Keohane. Financial Times, 26 October
Stellantis to invest €1.5bn for 20% stake in Chinese EV maker Leapmotor. Stellantis makes Jeeps in the US and owns the Fiat and Citroen brands in Europe, it will now form a new joint venture selling Leapmotor’s EVs outside China. Edward White. Financial Times, 26 October
Opinion & long-reads
Politics poses the biggest threat to economic growth in China. Beijing wrestles with the relationship between communism and capitalism white managing rising hostility from abroad. Martin Wolf. Financial Times, 24 October
The new global arms race will lead to catastrophe. The West can pursue it- or choose peace. Military spending has significantly increased, and global conflict is on the horizon. Carlo Rovelli. The Guardian, 26 October
Are we right to fear China? China remains ever more powerful on the geopolitical stage, despite dire warning about autocracy and human rights. James Crabtree. Financial Times, 25 October