China News - 4 April 2022
International
Cabinet split over Chinese takeover of UK microchip maker. Business Secretary Kwasi Kwarteng is under pressure from fellow Cabinet ministers to block a Chinese takeover of Britain’s biggest microchip factory in spite of national security advice saying the deal can go ahead, The Telegraph understands. Some ministers are understood to have called for the Business Secretary to activate new powers and intervene in the sale of Newport Wafer Fab - Mr Kwarteng still has powers to reverse the deal under the National Security and Investment Act, which came into force in January. The Telegraph, 1 April
Briefing: why does Newport Wafer Fab matter - to both the UK and China? China Research Group, 1 April
EU-China summit: China tells EU it will pursue Ukraine peace in its own way. President Xi Jinping said he hoped the EU would treat China "independently", in a nod to Europe's close ties with the United States. The EU told Beijing during the virtual summit not to allow Moscow to circumvent Western sanctions. Neither side indicated any progress on the Comprehensive Agreement on Investment (CAI), which was signed a year ago but has yet to be ratified in Europe. Reuters, SCMP, 2 April
Hong Kong leader Carrie Lam won't seek second term. The city's leaders are selected by a small committee of 1,500 members who are nearly all pro-Beijing loyalists. Current Chief Secretary John Lee is tipped to be the favoured replacement for Ms Lam having signalled his intention to contest an election for the city's top job. BBC, 4 April
Covid cases rise in Shanghai as millions remain in lockdown. Millions in the the city continue to be confined to their homes amid complaints over food deliveries and the availability of medications and health services. In a world first, military transport planes have been drafted to Shanghai, as its 25 million residents undergo three-day mass testing. Elsewhere in China, traffic data analysed by the Financial Times indicated that dozens of cities appeared to be under some form of restriction. The Guardian, FT, 3 April
Leading Cambridge college, took ‘high risk’ China cash. Jesus College accepted funding from Tsinghua University for “background research” on foreign business involvement in China’s Belt and Road Initiative in 2019, a freedom of information request by The Times reveals. CRG co-chair Alicia Kearns MP commented: “We need a mandatory register of foreign partnerships so we can understand who is trying to influence our universities. The Times, 4 April
Taiwan’s survival ‘crucial for the existence of global democracy.’ Taiwan is sharing its expertise on Chinese disinformation campaigns and cyberattacks with European states as evidence emerges of information warfare collusion between Beijing and Moscow. The Sunday Times, 3 April
Chinese firm regains control of DR Congo copper mine after reaching solution with government. SCMP, 3 April
Australia anxious to show it didn’t ‘drop the ball’ on Pacific after China and Solomon Islands deal. The Guardian, 4 April
Economy & tech
China changes audit secrecy rules in bid to stop US delistings. The China Securities Regulatory Commission, Beijing’s top financial watchdog, said on Saturday it would change confidentiality laws that prevent its overseas-listed companies from providing sensitive financial information to foreign regulators. It is the most significant move yet by Beijing to try to prevent Chinese companies in New York from being delisted in 2024. FT, 2 April
China’s tech sector is losing its shine but remains top career choice for young talent. Beijing’s crackdown on Big Tech, delisting risks for Chinese companies in the US, and poor consumer sentiment amid the global pandemic created a perfect storm. A contraction in number of new hires comes at a time when China expects to see an unprecedented 10 million new graduates this summer. SCMP, 3 April
What Tesla’s Berlin Gigafactory means for its future in China. FT, 3 April
Fashion startup Shein raising funds at $100 billion value. Reuters, 3 April
Bankers who stay in Hong Kong are rewarded with pay bonanza. Bloomberg, 3 April
Opinion & long reads
China-EU Summit highlights diverging paths. While China tried to emphasize the potential for general cooperation, EU leaders made clear that their “top priority” is to end the war in Ukraine. Shannon Tiezzi. The Diplomat, 1 April
'Chilling effect' of China crackdown and Covid measures prompts record brain drain in Hong Kong. Since 2019, tens of thousands of Hong Kongers have left for the UK, Canada and Taiwan to seek a better life. Nicola Smith. The Telegraph, 2 April
China/coronavirus: the case for western vaccine diplomacy. Imported jabs could be presented as fruits of successful trade deals, rather than foreign charity. Lex. FT, 1 April
Xi Jinping’s ‘Common Prosperity’ was everywhere, but China backed off. The signature economic policy, aimed at reducing inequality, rattled businesses last year but has faded as Beijing refocuses on shoring up growth. Stella Yifan Xie. WSJ, 3 April