China News - 30 May 2023
International
Leaked government document says US-China trade war would hurt Britain most. The document, circulated among the prime minister, the chancellor and a small group of cabinet ministers, says the US’ Inflation Reduction Act demonstrates the US’ determination to defend key industries against China, even if protectionism comes ‘at the UK’s expense’. George Grylls and Alex Ralph. The Times, 29 May
Pro-democracy protestors go on trial in Hong Kong over 2019 storming of legislature. 13 defendants went on trial on Monday charged with rioting, an offence that can be punished by up to 10 years in jail. The trial is expected to run for 44 days. The Guardian, 29 May
Hong Kong’s high court rejects attempt to dismiss Jimmy Lai trial. The legal team for Lai has argued that judges hand-picked by the chief executive would undermine the neutrality of the court. The court ruled on Monday that this argument has ‘no merits’. The proceedings will continue as scheduled from September. Amy Hawkins. The Guardian, 29 May
Prominent Hong Kong pro-democracy party votes to disband. The Civic party, one of Hong Kong’s most prominent opposition groups, has decided to wind up operations due to lack of leadership. By the end of 2021, the Civic party lost all five seats in Hong Kong’s legislature and more than 30 district council spots as its members were squeezed out under Beijing’s national security law. The Guardian, 27 May
Number of people prosecuted in China’s courts up 12% in five years. A work report released by the Supreme People’s Procuratorate in March reveals Chinese courts prosecuted 8.3 million people in the five years to 2022. Helen Davidson and Amy Hawkins. The Guardian, 29 May
Saudi Arabia in talks to join China-based ‘Brics bank’. The Shanghai-based New Development Bank, better known as the ‘Brics bank’, is in talks with Saudi Arabia on admitting the country as its ninth member. The BRICS bank is currently reassessing its funding options as founding shareholder Russia struggles under the impact of sanctions. Joe Leahy and Arjun Neil Alim. Financial Times, 28 May
Italy’s Meloni: Good China relations possible without Belt and Road. The Italian prime minister said that her government is still considering its decision on BRI. Italy’s participation in the Chinese initiative will be renewed automatically for five more years in March 2024 if neither side withdraws. Gregorio Sorgi. Politico, 28 May
Malaysia detains Chinese vessel on suspicion of looting sunken British warships. Malaysian authorities believe illegal salvage operators were targeting pre-war steel found on the wreckages of the HMS Repulse and the HMS Prince of Wales. Sky News, 29 May
Economy & tech
ByteDance founder establishes personal investment fund in Hong Kong. Zhang Yiming has set up an investment fund called Cool River Venture in Hong Kong, targeting tech-related investments. Zhang is said to be diversifying his business interests as TikTok faces criticism over privacy and security concerns. Cheyenne Dong. TechNode, 26 May
Portugal moves closer to banning Chinese 5G suppliers. Portugal's cybersecurity council CSSC has issued a resolution that could formally bar telecom operators from using Chinese equipment in their high-speed 5G mobile networks. Sergio Goncalves. Reuters, 26 May
China and South Korea agree to strengthen chip industry cooperation, Chinese commerce ministry says. China’s commerce minister Wang Wentao met with South Korean trade minister Ahn Duk-geun on the sidelines of the APEC conference in Detroit. The South Korean statement following the talks did not mention any such agreement on semiconductors. Reuters, 27 May
China’s first domestically-produced passenger jet makes first commercial flight. A made-in-China aircraft to rival Boeing and Airbus underwent its maiden commercial flight on Sunday. It was built by the Commercial Aviation Corporation of China (Comac) but reportedly still relies heavily on Western components. BBC News, 28 May
China deletes 1.4 million social media posts in crackdown on 'self-media' accounts. A statement from China's cyberspace regulator follows two-month probe into alleged misinformation, illegal profiteering, and impersonation of state officials. Eduardo Baptista. Reuters, 27 May
BYD signs agreement with Indonesian government for expansion. The world’s largest electric vehicle manufacturer plans to explore development opportunities in Indonesia as Southeast Asia is identified as key growth market. BYD started construction of its first plant in the region - in Thailand - in March. South China Morning Post, 29 May
China’s steel prices hit three-year low. The poor outlook for steel demand in China reflects slow growth in property and infrastructure markets. Reuters, 26 May
Apple supplier Foxconn raises pay and bonus packages for new recruits ahead of next product launch. Taiwan-based Foxconn has raised worker benefits at the world’s largest iPhone factory in Zhengzhou as it gears up for the expected release of the iPhone 15 model in September. Coco Feng. South China Morning Post, 29 May
Opinion & long-reads
The next Chinese tech threat is already here. Parton raises the alarm about cellular modules from China. Charles Parton. The Spectator, 29 May
Is war coming to the Indo-Pacific? The Council on Geostrategy asks seven experts about the likelihood of conflict in the Indo-Pacific, and how the UK should respond. The Council on Geostrategy, 26 May
Commerce at the Center. How the Commerce Department became central to the US’ China policy. Katrina Northrop. The Wire China, 28 May
GCHQ’s Jeremy Fleming: ‘Xi doesn’t want to see Putin humiliated.’ An interview with the outgoing GCHQ chief on Russia’s risk appetite and China’s quest for tech supremacy. Roula Khalaf. Financial Times, 26 May
The US must grasp the opportunity to stabilise relations with China. As high-level interactions increase, both sides must aim for pragmatic reconnection. Evan Mederios. Financial Times, 26 May
The new rules for business travel to China. The WSJ consults security experts, business advisers and travel-seasoned executives for advice on how to navigate era of heightened tensions. Dan Strumpf. The Wall Street Journal, 27 May
China developers: the main quake is over but the aftershocks are not. While rising Chinese property prices might be a sign of hope, a surge in new court-ordered liquidations and developer defaults should give property investors pause for thought. Financial Times, 29 May