China News - 4 January 2023
News from the China Research Group
Job vacancy: Research Lead. Applications for our Research Lead position are open until Sunday 8 January. Find further details and apply here.
New event: The realities of doing business in China. The China Research Group is running an event in conjunction with members of the British Chamber of Commerce in China. Palace of Westminster, Wednesday 25th January (6-7pm). Register here.
Podcast: Biden’s China tech offensive. CRG Director Chris Cash spoke to Sarah Bauerle Danzman about the sweeping new US export controls aimed at restricting China's access to advanced semiconductors. Listen here.
International
Calls for accurate data as China Covid cases surge and restrictions imposed on travellers. Scientists advising the World Health Organization said they wanted a "more realistic picture" about the Covid-19 situation from China's top experts. Cases continue to surge since the Chinese government lifted its ‘zero-Covid’ measures, with Beijing planning to ease international travel restrictions on 8 January. Passengers from China who arrive in the UK next week will not face compulsory Covid tests on arrival or have to self-isolate, but must present a negative test before boarding a flight to UK arrival points. Reuters, The Independent, 3 January
China’s Covid generation: the surging inequality behind Xi’s U-turn. Edward White and Eleanor Olcott. FT, 3 January
Why should we test all travellers from China? Fraser Nelson. The Spectator, 30 December
Xi Jinping urges unity in New Year speech. In his New Year’s address, President Xi Jinping said tough challenges remain in China’s fight against Covid-19 and acknowledged the hardships endured by the nation’s people during strict lockdowns. Political scientist Wen-Ti Sung analysed the photos in Xi's background in this Twitter thread, suggesting that they were carefully curated to signal Xi's 2023 priorities and his prevailing political message. Bloomberg, 31 December
Putin and Xi meet virtually, vowing to deepen bilateral ties. Xi had a series of high-level interactions with Russia over the festive period. Vladimir Putin and his Chinese counterpart pledged to deepen bilateral ties, which the Russian president hailed as the “greatest in all history”. Following their annual video conference, Xi stated that: “China stands ready to join hands with Russia and all other progressive forces around the world who oppose hegemony and power politics.” FT, CNN, 30 December
China’s US envoy, Qin Gang, named new foreign minister. Qin is a trusted aide to Xi Jinping and replaces Wang Yi, who was elected to the politburo of the Chinese Communist Party in October. Though Qin sounded optimistic tones about US-China relations during his relatively brief, 17-month stint as ambassador in Washington, his tenure coincided with deteriorating ties between the two superpowers. NPR, 30 December
China gives Hong Kong leader power to bar overseas lawyers in national security cases. China's top lawmaking body has given Hong Kong leader John Lee the power to bar foreign lawyers from national security cases, removing the decision from the city's courts. The legislative amendment is likely to prevent British lawyer Timothy Owen from defending media tycoon Jimmy Lai in a national security law trial in September. Reuters, 31 December
China cracks advanced microchip technology in blow to Western sanctions. China has cracked a microchip design method previously only mastered by the West, in a challenge that could allow Beijing to skirt Western sanctions. Patent filings reveal that Huawei has made advances in a crucial method of chip manufacture, raising the prospect that the company could eventually start making some of the smallest and most powerful microchips by itself. The Telegraph, 31 December
China’s buy-up of Britain sees £1bn in dividends flow back to Beijing. Analysis by the Sunday Times has revealed that more than 100 big British companies count the Chinese state as a shareholder. These investments range from utility companies to tech firms developing facial recognition technology, robotics and artificial intelligence. CRG chair Alicia Kearns MP commented: “Resilience must be a core ambition of this government, and that starts with a comprehensive audit so we can begin to tackle dependency chokepoints.” The Sunday Times, 1 January
National security fears over police using Chinese tech. More than a third of police forces are using equipment from companies that pose a national security risk, according to the surveillance watchdog. Fraser Sampson, the biometrics and surveillance camera commissioner, described the use of Chinese technology as “digital asbestos”. The Times, 2 January
Chinese fighter jet flies metres from US military plane in ‘unsafe’ South China Sea encounter. SCMP, 30 December
Philippines' Marcos heads to Beijing, talks with Xi to include South China Sea. Reuters, 3 January
Economy & tech
Brompton Bicycle draws up plans to shift suppliers out of China and Taiwan. Britain's biggest bicycle maker is drawing up plans to shift parts of its supply chain out of China and Taiwan as Western companies scramble to protect themselves from a possible invasion of the island. The Telegraph, 3 January
Lawmaker says sale of TikTok to US company could avoid outright ban. Republican congressman Mike Gallagher, a prominent China critic who likened TikTok to the addictive drug fentanyl, has said the sale of the Chinese-owned video-sharing app to an American company would be “one acceptable outcome”. FT, 2 January
Ministers ask Hunt for £300m to avert mass British Steel job losses. The Chancellor has been warned by fellow ministers that failure to financially support a Chinese-owned UK steelworks will lead to thousands of job losses across the country Sky News, 31 December
Nexperia calls in the lawyers to save Welsh chip fab deal. The Register, 30 December
Top 100 Chinese developers saw sales plunge 40% in 2022 as property crisis deepened. SCMP, 4 January
Opinion & editorial
Time to crack down on the CCP’s influence in Britain. Let's hope that next year brings about a coherent, whole-of-society response to the threat of the Chinese Communist Party. Alicia Kearns MP. The Telegraph, 23 December
Stopping China’s growth cannot be a goal for the west. Deterrence and trade will have to go hand in hand. Gideon Rachman. FT, 2 January
The Taiwan long game. Why the best solution is no solution. Jude Blanchette and Ryan Hass. Foreign Affairs, 1 January
Xi Jinping’s reputation in China and his standing in the world may not survive this Covid disaster. Isabel Hilton. The Observer, 1 January
Long reads
End of Year Note: 2022. Sam Hogg. Beijing to Britain, 28 December
From the unwinding of zero-Covid to economic recovery: What to watch in 2023. CNN, 2 January
2022 blood letting. The Rare Earth Observer, 2 January
China’s digital policies in its new era. Rogier Creemers. EU Cyber Direct, 20 December