China News - 3 October
International
Newly appointed UK Trade Commissioner for APAC visits Taiwan. Martin Kent’s first official trip is a 5-day visit to Taiwan. He hopes to broaden and deepen trade and investment links ahead of the 26th annual UK-Taiwan Trade Talks to be held in London in November. GOV.UK, 2 October
DeSantis invokes China “boogeyman” narrative amid flailing campaign. The Florida governor is promising a “hard power” approach to Beijing, he has stripped schools’ funding alleging ties to CCP. Richard Luscombe. The Guardian, 2 October
Can India-Europe corridor rival China’s Belt and Road? Biden and Mohammed bin Salman announced the India-Middle East-Europe Economic Corridor on the sidelines of the G20. The project will bolster transportation and communication links between Europe and Asia through rail and shipping networks. Nikhil Inamdar. BBC News, 2 October
China Belt and Road: Indonesia opens Whoosh high-speed railway. President Joko Widodo has launched Indonesia’s first high-speed railway. The $7.3bn project connects the capital Jakarta to Bandung, a top economic hub. Derek Cai. BBC News, 2 October
Two elves and a scroll: China military releases animation on Taiwan “reunification”. The Chinese military released a short film animation on National Day showing a scroll painting torn in half 300 years ago being reunited. Ryan Woo. Reuters, 2 October
Economy & Tech
German manufacturers resist trade tensions in China’s Mittelstand enclave. For over 30 years Mittelstand has been a favoured place for German businesses to invest. Many of these family-owned and highly specialised businesses are now facing rising competition, slowing Chinese growth and the effects of Germany de-risking itself from China. Thomas Hale and Wang Xueqiao. Financial Times, 2 October
How China-West tensions will shape global markets. Rising tensions, tit-for-tat trade tariffs, tech wars and spying allegations have all caused significant ramifications for the global market. Although inflation and interest rates could stay elevated, there are possible gains for emerging nations and tech giants on the right side of the power battle. Naomi Rovnick and Dhara Ranasinghe. Reuters, 2 October
Asia faces one of the worst economic outlooks in half a century, World Bank warns. Sluggish post-pandemic recovery, China’s property crisis and US trade policies have caused the World Bank to cut its forecast for China’s growth next year. It has warned that east Asia’s developing economies are set to expand at one of the lowest rates in 5 years. Edward White and Mercedes Ruehl. Financial Times, 2 October
China comes under growing pressure to fix the country’s housing market. As Hui Ka Yan, Chairman of the Evergrande Group, is being investigated on suspicion of transferring assets offshore while the property developer struggled to complete projects, other economists and investors urge Beijing to take forceful steps. Lingling Wei. WSJ, 1 October
Tesla misses estimates for quarterly deliveries; shares fall. Tesla’s shares are down 3.7% as the EV maker handed over 435,059 vehicles in the last 3 months, which is a 7% decrease from the preceding quarter. Aditya Soni and Akash Sriram. Reuters, 2 October
A subsidy club to restrain rich-world handouts to China. It is politically difficult when high-income countries give out cash that is then spent on imported Chinese cars and solar panels. Alan Beattie. Financial Times, 2 October
Opinion & long-reads
“What if there was a war?” Chinese Australians wear the scars after bitter years of hostile rhetoric. The Australian media’s negative portrayal of China has made many Chinese Australians feel forced to choose between their Chinese and Australian identities. In 2018 the Lowy Institute found that 12% of Australians saw China as more of a security threat than economic partner, in 2021 this figure increased to 64%. Jane Lee. The Guardian, 1 October
US has trade tools needed for China’s EVs- but it must use them. Action on unfair practices is essential to stop the auto industry suffering in the same way as steel, aluminium and solar. Wendy Cutler. Financial Times, 2 October