China News - 3 October 2022
International
UK-China
UK wants 'healthy partnership' with China, says foreign minister Cleverly. In an exclusive interview with CNA, Cleverly said the door is open to forge a better relationship with China but that Beijing needs to change some of its behaviour. The relationship is dependent on China "fully" subscribing to the implementation of global rules, like the rest of the international community, he said. CNA, 29 September
UK needs ‘more realistic’ China approach at tense time: Peter Mandelson. SCMP, 30 September
Business Secretary blocks China from accessing key information about Britain’s power grid. Jacob Rees-Mogg has restricted the information that Electricity North West (ENW) can share with its Chinese state owners, after deeming that their 35pc stake gives rise to a “national security risk” under the National Security and Investment Act. He has also restricted the influence of China over the appointment of senior staff at the company. The Telegraph, 1 October
British Steel's Chinese owner seeks huge government aid package. Sky News has learnt that Jingye Group, which bought British Steel out of insolvency in 2020, has told ministers that the company's two blast furnaces are unlikely to be viable without government aid. Insiders suggested that it would need "hundreds of millions of pounds" to keep the Scunthorpe blast furnaces operational. Sky News, 1 October
Firm linked to Chinese military funds Imperial College London. A Times investigation revealed that Imperial College London received up to £1.2 million for metals research from a company that produces steel for the Chinese military. The state-owned Chinese steelmaker co-runs the Shougang-Imperial Lab for Lightweight Steel-Based Systems for Impact-Resistant Automotive Applications, having provided funding since at least 2018. The Times, 3 October
US makes Pacific Islands pledge in bid to counter China. The US has struck a partnership agreement with Pacific island nations amid concern in Washington over growing Chinese influence. It also announced $810m (£725m) in financial support and said it would recognise Niue and Cook Islands as sovereign states. Fourteen nations signed the deal, including the Solomon Islands. BBC, 30 September
US, Australia and Japan vow to work together against China. Defence ministers of the US, Australia and Japan agreed on Saturday to boost military cooperation in the face of China’s growing ambitions. US defence minister Lloyd Austin said he sees no imminent invasion of Taiwan by China but said China was trying to establish a "new normal" with its military activities around the island. SCMP, Reuters, 2 October
Chinese regulator tells banks to avoid political talk ahead of Party Congress. The China Securities Regulatory Commission recently sent an advisory to multiple securities houses, including the domestic units of large international banks, telling investment banks operating in the country to avoid publishing politically sensitive research. The mainland China businesses of Goldman Sachs and JPMorgan Chase were among those contacted by the regulator, WSJ sources added. WSJ, 30 September
Chinese tech billionaire Richard Liu settles sexual assault case in Minnesota. WSJ, 2 October
Economy & tech
China shares plunge to lowest valuation on record in Hong Kong. As September drew to an end, the Hang Seng China Enterprises Index lost 14% to rank as the worst performer among major equity benchmarks globally. However, shares in Chinese property companies jumped on Monday following a series of supportive policy announcements. Bloomberg, 30 September
Moderna refused China request to reveal vaccine technology. Moderna has refused to hand over to China the core intellectual property behind the development of its breakthrough Covid-19 vaccine, leading to a collapse in negotiations on its sale there, according to multiple people familiar with the matter. FT, 1 October
The US dollar juggernaut is undermining China’s exports and imports. Caixin, 30 September
Google Translate app no longer available in China. SCMP, 3 October
China focus
Xi Jinping warns Communist Party to prepare for ‘great struggles’ ahead. In an article published on Saturday, China’s National Day, in the party journal Qiushi, Xi said the country “has never been closer” to achieving its great national rejuvenation, but the last mile would be full of perils and challenges. SCMP, 1 October
China offers rare tax rebate to spur home buying in crisis. Residents who buy new homes within one year after selling old homes will get refunds for personal income tax on profits from the sale, according to a statement on the finance ministry website. Caixin, 1 October
China's State Council holds National Day reception. Xinhua, 1 October
Opinion & editorial
West must remind Xi of the economic consequences of threatening Taiwan. An invasion or an extended blockade would trigger sanctions against Beijing, imperilling Chinese national stability. Charles Parton. FT, 2 October
Slashing the BBC World Service is a disaster. Cutting down on global services undermines Britain's soft power abroad. Yuan Yi Zhu. UnHerd, 30 September
Think Putin is a global threat? Then we need to talk about Xi Jinping. Simon Tisdall. The Observer, 2 October
Long reads
China wants to conquer Britain’s car market – but should you buy their vehicles? After earlier attempts stalled, Chinese cars are poised for a breakthrough in the UK. Howard Mustoe. The Telegraph, 1 October
Who will be China’s next economic tsar? As one of Xi Jinping’s most important advisers leaves the scene, The Economist considers possible successors. The Economist, 1 October
The China factor in Taiwan’s midterms. Will China’s military threats impact Taiwan’s upcoming local elections? Brian Hioe and Lev Nachman. The Diplomat, 1 October
The tech site that took on China’s surveillance state. Timothy McLaughlin. The Atlantic, 29 September