China News - 28 June 2022
International
NATO to confront China risk alongside Russia threat at leaders’ summit. Beijing is set to be labelled “a challenge to our interests, our security and our values” when NATO’s 30 leaders agree the alliance’s “strategic concept” up to 2032 at a summit on Tuesday. Leaders will discuss how to balance the growing threat from China’s military advances and new cyber capabilities. The leaders also agreed to take a more coordinated approach to challenging China's "market-distorting" practices in global trade. FT, 28 June
China’s Director for European Affairs, Wang Lutong, in praise of the G7’s Partnership for Global Infrastructure and Investment:
China changes Covid-19 quarantine rules in first step towards easing border controls. In the biggest changes to the rules since the country closed its borders in March 2020, Beijing announced it will cut quarantine time for overseas arrivals to seven days at a government-run facility, followed by another three days in home isolation. SCMP, 28 June
Beijing declares zero-Covid policy will last another five years then backtracks. The Chinese Communist Party secretary for Beijing, Cai Qi, said domestic Covid measures would stay in place for another half a decade, before his statement was altered and any discussion was also initially censored on Weibo, China’s version of Twitter. The Telegraph, 27 June
Amendment to National Security Bill could see Chinese companies excluded from public contracts. Nus Ghani MP’s amendment would allow the government to intervene in the granting of a public contract to a company if there is a risk that it could harm the safety or interests of the UK. 27 June
Foreign Secretary Liz Truss set to appear before the Foreign Affairs Committee. Truss will be asked a wide range of questions on the work of the FCDO. Beijing to Britain will provide a full briefing for paid subscribers. 28 June
China’s pivotal role under scrutiny as Zambia seeks debt relief. Restructuring is being closely watched by other countries for signs of how Beijing will respond to defaults. FT, 28 June
China wants own security company to protect assets in Pakistan. Nikkei Asia, 28 June
Economy & tech
China’s yuan liquidity reserve pool highlights efforts to loosen dollar hegemony. China’s plan to establish a yuan liquidity reserve pool with the Bank for International Settlements (BIS) could help boost international use of the currency, while loosening dependence on the US dollar. Meanwhile, Beijing is set to ask banks to prepare for longer yuan trading hours as part of its internationalisation push. SCMP, Bloomberg, 28 June
Chinese automakers face persistent chip shortage. Chinese automakers are likely to continue suffering a semiconductor shortage in 2023 and 2024, costing them billions of dollars of lost production, executives at one of the country’s top automakers said. Caixin, 28 June
Bell rings for a vast Tencent stake sale. Naspers is selling down its huge stake in Chinese technology giant Tencent to return money to shareholders. The South African media and internet group bought 46.5 per cent of the Chinese software business in 2001 for $36 million. The 33 per cent stake that Prosus, Naspers’ Dutch investment company, still owns is now worth more than $130 billion. The Times, 27 June
China’s central bank signals stimulus to prioritise credit growth over rates. Caixin, 28 June
China extends anti-dumping tariffs on EU, UK steel fasteners imports. Reuters, 28 June
Opinion & long reads
Semiconductors in the UK. Should the UK have a strategy for semiconductors? Geoffrey Owen. Policy Exchange, 27 June
Export controls against Russia are working—with the help of China. Martin Chorzempa. PIIE, 27 June
Code red: China’s Covid health apps govern life but are ripe for abuse. Ryan McMorrow and Cheng Leng. FT, 28 June
China-Europe Academic Engagement Tracker. The Central European Institute of Asian Studies has launched an engagement tracker to contribute to the emerging discussion about the sustainability and security risks of China-Europe academic cooperation. 27 June
Event: City on the Edge: Hong Kong under Chinese rule. On the occasion of the 25th anniversary of the handover of Hong Kong, LSE IDEAS China Foresight hosts a webinar discussing Professor Ho-fung Hung’s latest book City on Edge: Hong Kong under Chinese Rule. Friday 1st of July, 1-2pm. Register here.