China News - 28 July
International
UK to host 26th annual Taiwan talks to continue to strengthen trade relationship. Taiwan is an important trading partner for the UK, with bilateral trade worth £8.6bn in 2022. The Tiwanese market offers significant potential for UK companies in areas such as off-shore wind and hydrogen. GOV.UK
US-Taiwan trade pact key to countering diplomatic isolation, Taipei’s top trade negotiator says. This is the most comprehensive trade agreement between the US and Taiwan since Washington switched diplomatic recognition to Beijing in 1979. Beijing has since criticised Washington for “giving a wrong signal to Taiwan separatist forces”. Eric Cheung. CNN Business, 24 July
Japan “gravely concerned” by China and Russia’s military co-operation. Tokyo’s annual defence white paper highlights worries over joint shows of force from the two countries, using stronger language than in previous years. The paper reaffirmed that Japan considers China to be increasing its military aggression and that it poses “an unprecedented and the greatest strategic challenge” to their security. Kana Inagaki. Financial Times, 28 July
China’s Wang Yi makes first statement after reappointment as foreign minister. Wang said he will deepen partnerships with other countries and actively participate in reform of global governance and “resolutely safeguard the sovereignty, security, development and interests” of China. Reuters, 28 July
New Chinese foreign minister Wang talks Ukraine in Turkey on first trip. In his first trip since his reappointment, Wang met with his Turkish counterpart, Hakan Fidan. A Turkish foreign ministry source said discussions included the latest situation in Ukraine and the global financial system. Turkish president Erdogan hoped that China and Turkey would intensify their cooperation. Reuters, 26 July
China open to deepen partnership with Indonesia, says Xi. Indonesian president Widodo is visiting China to attend the opening ceremony of the FISU World University Games. Xi told Widodo that their countries should ensure the high-standard completion of the Jakarta-Bandung high-speed railway. This railway is a flagship project of the Indonesian president and part of China’s Belt and Road Initiative. Reuters, 27 July
Macron seeks bigger French say in Pacific as China’s clout grows. The French president slammed what he called the “imperialism” of neighbouring powers during his visit to the South Pacific. Macron’s main visit in the region was New Caledonia, he will also go to Papua New Guinea and Sri Lanka. Bruno Le Maire, finance minister, is travelling to China this weekend to discuss economic ties. Ania Nussbaum and Rebecca Choong Wilkins. Bloomberg, 27 July
Satellite data sheds light on China’s detention facilities in Tibet. Tibet has been under Chinese control since it was annexed more than 70 years ago. Human rights groups have since voiced concerns over the harassment, detention and torture of Tibetan activists. The Rand Europe research institute has done a new study measuring night-time lighting usage, which suggests a rise in harsher imprisonment facilities. The Guardian, 27 July
Economy & Tech
China’s Sunwoda plans $274.7 mln Hungarian battery plant. Chinese company Sunwoda Electronic plans to build a power battery factory for electric vehicles in Hungary. This move comes as Chinese battery suppliers shake up Europe’s e-mobility supply chains by setting themselves up on the continent. Ethan Wang, Zhang Yan and Ryan Woo. Reuters, 27 July
Western car makers look to slash EV costs to fight Chinese “invasion”. Finance chief Thierry Pieton said the best way to fend off price competition was for Renault to cut its own development and manufacturing costs. Chinese EV manufacturers such as BYD or SAIC have invested heavily and used lower labour costs and local battery suppliers to get ahead of western rivals. Renault hopes to cut their costs by 40%. Gilles Guillaume and Giulio Piovaccari. Reuters, 27 July
Chinese electric-car shares boosted by Volkswagen investment in Xpeng. Shares in Chinese EV markets rose sharply on Thursday following VW’s announced tie-up with Chinese rival Xpeng. The deal hopes to boost VW’s lagging sales in China. Patricia Nilsson, Edward White and Gloria Li. Financial Times, 27 July
China’s smartphone market narrows decline in second quarter, with Huawei back in the country’s top 5 vendor ranking. 65.7 million handsets were shipped in the world’s largest smartphone market in the quarter ending 30 June, this was a 2.1% decrease compared to last year’s 14.8% according to research firm IDC. This reflects China’s unstable post-Covid economic recovery. Iris Deng. South China Morning Post, 27 July
Opinion & long-reads
Regular exchanges important to build Sino-US mutual trust. Recent high-level diplomatic exchanges between China and America have released some tension in bilateral relations. The visits have seen the two countries unite over common issues despite their political differences. Cao Lei. China Daily, 27 July
How US politicians are mangling the economic debate over decoupling from China. The argument for “de-risking” rather than “de-coupling” makes no difference to the deleterious effects of shifting trade away from China. Stephen Roach. South China Morning Post, 27 July
Huawei’s comeback ambition and China’s jobless grads. Chinese tech company Huawei has been struggling to shake off the impact of a yearlong US clampdown on chips, especially since Japan and the Netherlands have followed America’s lead. 21% of China’s youth are unemployed. Although the economy has reopened since the pandemic, the job market still remains gloomy. Cheng Ting-Fang, Shoji Yano, Katherine Creel, Eleanor Olcott, Marrian Zhou, CK Tan and Yasu Ota. Financial Times, 27 July