China News - 29 September 2022
International
How public opinion of China has shifted in the Xi era. Since Xi took office in 2013, opinion of China in advanced economies has turned precipitously more negative. New survey data from the Pew Research Center reveals that negative views of China in the UK remain at near-historic highs. The Pew research also reveals that only 26% of Brits have some/a lot of confidence in President Xi "to do the right thing in world affairs". Meanwhile, China’s Deputy Foreign Minister signalled no let-up in its combative approach to foreign policy in a third term for Xi. Pew Research Centre, Reuters, 28 September
Paraguay calls for Taiwan to invest $1bn to remain allies. Paraguay’s president Mario Abdo Benítez has called on Taiwan to invest $1bn in his country to help him resist “enormous” pressure to switch diplomatic recognition to rival China. A switch by Paraguay, the largest country by area that still recognises Taiwan, would be a heavy blow to Taipei. FT, 29 September
UK wants closer ties with Indo-Pacific region - foreign minister. "We intend to be the first European country to accede to the CPTPP – which will give the region access to the UK’s world-class financial services sector and the world’s sixth largest economy," James Cleverly will say in a speech in Singapore on Thursday. Reuters, 28 September
US to expand diplomatic, defence footprint in the Pacific. A new US strategy for the Pacific will involve a bigger diplomatic and security footprint, help island nations respond to climate change and focus on economic prosperity, according to a preview released before Pacific leaders planned to meet President Biden in Washington. WSJ, 28 September
Leaders of China, Japan say it is important to develop ties. Chinese President Xi Jinping and Japanese Prime Minister Fumio Kishida said on Thursday it was important to take bilateral relations in a positive direction as the two leaders marked 50 years of normalised diplomatic ties amid rising tensions. Reuters, 29 September
Layla Moran wants 'inappropriate' Foxcombe Hall Chinese uni plan scrapped. The Lib Dem MP for Oxford West and Abingdon said the "main beneficiary" of Peking University HSBC Business School's (PHBS) expansion plan will be "the Chinese state, not the local area". The decision has been referred to the levelling up secretary, Simon Clarke. BBC, 28 September
Self-exiled Hong Kong democrat Ted Hui sentenced to 3.5 years in jail in absentia. HKFP, 29 September
Chinese national shot dead at Karachi dental clinic. BBC, 28 September
Economy & tech
‘Do not bet’: China’s central bank warns against yuan speculation. The People’s Bank of China (PBOC) has warned against betting on the yuan, after its rapid decline against the US dollar this week. Hong Kong stocks rebounded from an 11-year low after the PBOC’s warning and global markets stabilising on the back of a bond-purchase plan by the UK government. CNBC, 29 September
China tests central bank digital currency use to settle trades with partners including Hong Kong, Thailand and UAE. China has completed a 40-day trial using central bank digital currencies to settle trades with Hong Kong, Thailand and the United Arab Emirates via a special “bridge” arrangement. The trial period handled more than 160 cross-border payments and foreign exchange transactions totalling over 150 million yuan. SCMP, 29 September
Wall Street chiefs stage return to Hong Kong after city scraps quarantine. FT, 29 September
HSBC sees bright spots in China stocks from internet to solar. Bloomberg, 29 September
China focus
Xi aide likely to be next economy Tsar. As doubts grow over whether Xi Jinping still prioritizes expanding China’s economy over other goals, he’s tipped to appoint a new economic adviser who’s vowed to put growth first. He Lifeng, who’s known Xi for more than four decades, runs China’s powerful planning agency, the National Development and Reform Commission. Bloomberg, 28 September
China to build world’s most powerful pulsed magnet. The Wuhan facility could help researchers develop new semiconductors, 6G telecommunications and life-saving drugs. SCMP, 28 September
Protests in Shenzhen as China puts it into snap lockdown over Covid cases. The Times, 28 September
Long reads & opinion
What is China’s Global Security Initiative? CRG Research Lead Chris Cash analyses the latest display of China’s ambitions to be a leader in global governance and security architecture. Chris Cash. Council on Geostrategy, 29 September
Xi’s Control Room: The Commission for Comprehensively Deepening Reform. Nis Grünberg and Vincent Brussee. MERICS, 28 September
China’s Big Fund corruption probe casts shadow over chip sector. Investment plummets after Beijing’s largesse laid ground for alleged graft and wasteful spending. Edward White and Qianer Liu. FT, 29 September
Xi looks again at Belt and Road Initiative. After disbursing $1 trillion across Asia, Africa and Latin America, China is taking the first steps to reform its global infrastructure programme. Richard Lloyd Parry. The Times, 29 September