China News - 30 March 2022
New podcast: China and Arctic geopolitics. Chris Cash is joined by Yenching scholar Lukas Wahden to discuss why the Arctic has emerged as a fiercely contested geopolitical battleground and how the war in Ukraine might alter the regional balance of power. Listen to the podcast here.
The UK Ministry of Defence published its inaugural Arctic Strategy yesterday.
International
Foreign Secretary supports the withdrawal of serving UK judges from the Hong Kong Court of Final Appeal. Following discussions with the Deputy Prime Minister and Lord Chancellor and the President of the Supreme Court, it was agreed that it is no longer tenable for serving UK judges to sit on Hong Kong’s top court. Foreign Secretary Liz Truss commented that since the imposition of the National Security Law in 2020, China has continued to undermine the fundamental rights and freedoms of the people of Hong Kong and that British judges sitting on Hong Kong’s leading court “would risk legitimising oppression.” Gov.uk, 30 March
Health and Care Bill including compromise genocide amendment to be voted on. The Government has tabled a compromise amendment - in response to pressure from Lord Blencathra's Procurement (Genocide) Amendment - which would see a review into NHS supply chains. Between March and June 2020 the Department for Health awarded contracts worth £245m to three companies linked to human rights abuses in the north-western Chinese province of Xinjiang. New Statesman, 29 March
China’s 'zero Covid' lockdowns cost at least £35bn a month. Economists at the Chinese University of Hong Kong (CUHK) said the loss in economic output, which amounts to 3.1% of GDP, is a minimum estimate and could double if other cities follow Shanghai in imposing stay at home orders. Residents in Shanghai are scrambling to stock up on supplies while thousands quarantine in offices, as a lockdown rolls out in the divided city. The Telegraph, BBC, 30 March
China and Solomon Islands sign security pact. Chinese warships will have access to a port less than a thousand miles from Australia after the prime minister of the Solomon Islands agreed a controversial security pact with Beijing yesterday. The Times, BBC, 29 March
China builds up blue-water presence as world focuses on Ukraine. China has armed military outposts in the South China Sea, a top US military official says, and is giving its coast guard more firepower, in what may be an attempt to take advantage of the world's preoccupation with the Ukraine war. Nikkei Asia, 29 March
EU to pressure China over its stance on Ukraine war, sources say. The goal of this Friday’s EU-China summit is “ensuring, in a way, the neutrality of China so they don’t help Russia,” an EU official told CNBC. CNBC, 30 March
US spells out sanctions on Russia, heaping more pressure on China to comply. SCMP, 29 March
China complains to Australia over repatriation of Chinese students. Reuters, 29 March
Economy & tech
China's largest banks signal tough times ahead. Three of China's largest banks have said that the country's lenders face multiple headwinds this year that include the pandemic, global politics and domestic turmoil in the real estate industry. In the third week of March, global investors pulled out more than $3 billion from Chinese equities, the highest since the first week of 2021. Reuters, Institutional Investor, 29 March
Big Four under growing pressure as Chinese developers delay audits. PwC, which audits more than a dozen listed Chinese developers, is under investigation in Hong Kong over its Evergrande audit. It and Deloitte have resigned as auditors of at least five Chinese developers in the past three months. FT, 29 March
China plans new restrictions in its booming live-streaming sector. WSJ, 30 March
Opinion & long reads
FT editorial: China’s zero-Covid goal is no longer sustainable. Beijing needs to develop a strategy for living with coronavirus. FT, 29 March
The Solomon Islands deal with China isn’t about security – and it will hurt the Pacific. The proposed agreement will affect regional security and may jeopardise relationships with existing partners. Matthew Wale. The Guardian, 30 March
Europe and China at a crossroads. 4 scenarios for China-EU relations amid the war in Ukraine. The Diplomat, 29 March
Enemies of My Enemy. How fear of China is forging a new world order. Michael Beckley. Foreign Affairs, 29 March