China News - 29 September 2021
Upcoming event - Banking on the Belt and Road: Join us for a discussion with experts from the AidData team as they break down China’s lending on the international stage. This follows the release of their latest global dataset on Chinese development finance to more than 150 countries, revealing that many countries’ financial liabilities linked to the Belt and Road Initiative have been systematically under-reported for years. This virtual briefing will take place on Monday 18 October at 4pm BST. Register here.
The fascinating AidData research was featured in several news outlets overnight:
‘Hidden debt’ on China’s Belt and Road tops $385bn, says new study. New research suggests the underreporting of many Belt and Road countries’ financial liabilities has resulted in mounting “hidden debts”, or undisclosed liabilities that recipient governments might be obliged to pay. More than 40 countries have debt exposure to Beijing greater than 10% of their GDP. FT, WSJ, 28 September
China: Big spender or loan shark? BBC, 29 September
International
UK and Japan begin talks on deeper Defence relationship. The UK and Japan have agreed to commence formal negotiations on a Reciprocal Access Agreement (RAA) to deepen the defence relationship between the two countries. This Agreement, when concluded, will help enable the two countries and their militaries to work together to address global security challenges and counter shared threats. GOV.UK, Reuters, 28 September
Europe and China must continue talking despite disagreements, EU says. The bloc's foreign policy chief Josep Borrell discussed Aukus, human rights, Taiwan, climate change, vaccine cooperation with Chinese counterpart Wang Yi in a video call on Tuesday. Reuters, 28 September
EU defends plan to expand Taiwan relations ‘without recognition of statehood’. SCMP, 28 September
‘We need to talk to China,’ Europe’s climate chief says ahead of COP26. EU climate chief Frans Timmermans said it was important to convince China to reach peak emissions earlier than 2030 and convince them to come up with plans to de-carbonise their economy. Timmermans noted that without China’s participation at the last big global climate conference in Paris in 2015, the landmark agreement at the time would not have happened. CNBC, 29 September
Biden challenges Beijing with rival scheme to Belt and Road scheme in South America. US President Joe Biden will dispatch a team of officials to Colombia, Ecuador and Panama next week in a drive known in the White House as “Build Back Better for the World”. It follows talks at the G7 in Cornwall to establish a scheme to rival China’s global investment initiative. The Times, 29 September
US commerce chief pushes China trade despite ‘complicated relationship’. US commerce secretary Gina Raimondo said the Biden administration would push for American companies to trade with China even as Washington takes an increasingly tough posture on Beijing over human rights and national security. FT, 28 September
US says Chinese government blocking airplane purchases. NPR, Reuters, 28 September
Sydney think tank says China less generous toward Pacific. China gave significantly less aid to Pacific island nations in recent years despite Beijing’s diplomatic efforts to increase its influence in the region, according to the Lowy Institute. Independent, 28 September
Economy & tech
China’s power supply crisis puts squeeze on Apple’s supply chain, electronics manufacturing sector. Power blackouts in more than 10 provinces across the mainland have forced several major Apple suppliers to suspend operations at some of their factories. SCMP, The Telegraph, 28 September
Power outages are putting lives at risk in China’s energy-rich Northeast. Caixin, 27 September
China asking state-backed firms to pick up Evergrande assets. Beijing is prodding government-owned firms and state-backed property developers such as China Vanke Co Ltd to purchase some of the embattled China Evergrande Group's assets, people with knowledge of the matter said. Reuters, 28 September
Evergrande sells $1.5bn bank stake to state-owned enterprise. FT, 29 September
Ericsson’s China chief remains hopeful on prospects in the country despite rising geopolitical tensions over 5G. SCMP, 28 September
China focus
China unveils new drones in race for air superiority. With a speed of 450mph and a range of about 9,000 miles, China’s large CH-6 drone represents a new development in its drive to lead the world in the production of unmanned vehicles to fight future air wars. The Times, Al Jazeera, 28 September
Xi calls for accelerating building of world centre for talent, innovation. Speaking at a central conference on Tuesday, Chinese President Xi Jinping called for efforts to speed up China's upgrade toward a major world centre of talent and innovation, to support the goals of basically realising socialist modernisation by 2035 and building a great modern socialist China in by 2050. Xinhua, 28 September
China has built a 5,000-room quarantine centre for overseas arrivals. It could be the first of many. CNN, 29 September
Longer reads & opinion
China's energy crisis will rock the whole world. Ambrose Evans-Pritchard. The Telegraph, 28 September
An OECD For a New Era. Rhodium Group, 28 September
China’s new aircraft carrier underlines need for the Aukus pact. Dan Sabbagh. The Guardian, 29 September
Taipei’s bid to join transpacific trade pact could be held hostage by Beijing. Kathrin Hille. FT, 29 September
US economic statecraft adrift as China seeks to join mega Asian trade deal. Joshua P. Meltzer. Brookings, 28 September
Why Xi’s coal pledge is a big deal. Lauri Myllyvirta. Foreign Policy, 28 September
Here’s 6 documentaries on modern China you need to watch. Lu Zhao. RADII, 28 September