China News - 29 September

International

US warns green transition raises “complex” China security concerns. US energy secretary Jennifer Granholm said “in this critical minerals context, we are up against a dominant supplier that is willing to weaponize market power for political gain”. Harry Dempsey. Financial Times, 28 September

Taiwan unveils first locally built submarine in pushback against China. After 7 years and $1.5bn, the completion of the vessel is a milestone for Taiwan. Tsai Ing-wen said the island can now “dive deep down into the sea with Taiwan’s spirit of resilience and courage and quietly safeguard our home, our freedom and our democracy”. Kathrin Hille. Financial Times, 28 September

Malaysia to double palm oil exports to China in effort to dodge EU restrictions. Malaysia has said it will double palm oil exports to China to half a million tonnes per annum. They have also signed an infrastructure investment deal with Beijing worth $4.2bn. Norman Goh. Financial Times, 28 September

“Playing the China card” or a serious regional threat? Timor-Leste’s new deal with Beijing. Timor-Leste formally upgraded its bilateral relations with Beijing last week. A joint statement included plans to enhance military cooperation and explore the possible developments of Timor-Leste’s oil and gas resources. Helen Davidson. The Guardian, 28 September

China drops barriers to Australian hay as trade relations improve. After Australia called for an inquiry into the origins of Covid, Beijing restricted imports of a range of commodities. On Thursday, the Australian government announced that China was lifting barriers to imports of hay in the latest step towards normalising trade relations. Peter Hobson and Dominique Patton. Reuters, 28 September

Economy & Tech

China appoints Lan Foan as new finance ministry party chief. Lan has given up his role of party chief for the Shanxi province to replace Liu Kun, Kenin Yao, Albee Zhang and Ella Cao. Reuters, 28 September

Evergrande halts share trading as woes mount for China property giant. Evergrande has suspended trading only a month after a previous 17 month long suspension. It also comes amid its chair reportedly being put under police surveillance. The Guardian, 28 September

China’s top developers lost close to £3bn owing to weakened renminbi. According to Nikkei Asia, the aggregate net foreign exchange losses for 24 of the 30 mainland-listed developers by contracted sales before Covid totalled $2.75bn for the first half of this year. Kenji Kawase. Financial Times, 28 September

Chinese high-end EV brand Zeekr expands into the Middle East. Zeekr, the premium EV brand of Geely, is launching in four countries in the Middle East next year as it intensifies its global push. Cheng Leng and Peter Campbell. Financial Times, 29 September

HSBC to acquire Citigroup China consumer wealth business. HSBC is set to acquire Citigroup’s China consumer wealth management business, which manages more than $3bn in assets. Selena Li. Reuters, 28 September

IBM’s former IT services group plans to separate its China business. Kyndryl’s move follows the trend of Western companies seeking to insulate their Chinese units amid increasing geopolitical tensions. Kaye Wiggins and Richard Waters. Financial Times, 28 September

China launches first cross-sea bullet train line near Taiwan Strait. Beijing has launched its first high speed rail line that will travel across several bays and skim along the coast of Fujian near the Taiwan Strait. Bernard Orr, Jeanny Kao and Ben Blanchard. Reuters

Opinion & long-reads

A trade reprieve won’t fix the EU’s failures on electric vehicles. Every decade another industry seems to be nominated to be the new primary combat theatre for trade wars involving China: clothes, solar panels and now EVS. The proposed anti-subsidy duties have been too slow to innovate. Alan Beattie. Financial Times, 28 September

Beijing aims to snatch the entire South China Sea. The US Navy is backing down. Recent Chinese activity in the South China Sea demonstrates Beijing’s claims of “indisputable sovereignty”. Tom Sharpe. Telegraph, 26 September

Europe should worry but not panic over China. Lack of nuance makes for bad policy. Martin Sandbu. Financial Times, 28 September