China News - 4 July 2022
International
UK holds trade talks with Taiwan. Taiwan’s chief trade negotiator met his British counterparts in mid-June to talk about bilateral trade and Taiwan’s bid to join the CPTPP. Britain’s trade department did not publicise the meeting. China’s government has said it “resolutely” opposes Taiwan’s efforts to become a member of CPTPP, and a foreign ministry spokesman warned against the meeting. Politico, 4 July
TikTok tells Republican senators how it plans to keep American data away from China. CEO Shou Zi Chew reiterated a plan to store American users’ personal information with Oracle, rather than on TikTok’s servers. TikTok will also be audited by a third party. An Australian senator has also written to the company querying its use of data, while the US’ FCC Commissioner wrote to Apple and Google on 28 June, asking them to remove TikTok from app stores. New York Times, TikTok letter, SCMP, 2 July
Biden administration split on whether to remove China tariffs. One camp, including the Treasury’s Janet Yellen, believes lifting tariffs would help reduce inflation. Other camps see the issue differently: “The China tariffs are . . . a significant piece of leverage, and a trade negotiator never walks away from leverage,” Katherine Tai said. FT, 3 July
Foreign Minister Wang Yi becomes most senior Chinese official to visit Myanmar since coup. China’s foreign minister called for Myanmar’s junta to hold talks with its opponents. SCMP, The Guardian, 3 July
China vows to strengthen cooperation with Zimbabwe in various fields. Yang Jiechi met Zimbabwean President Emmerson Mnangagwa. CGTN, 3 July
China to invest up to $3 billion with Indonesia’s wealth fund. China’s Silk Road Fund signed a deal with Indonesia’s wealth fund to make joint investments under a framework agreement. Bloomberg, 4 July
Taiwan: China attack not imminent, but US watching closely, says top US general Gen Milley. BBC, 3 July
China focus
Beijing silent over Xi Jinping’s brush with Covid-19 in Hong Kong. A Hong Kong lawmaker has sparked concerns over the health of Xi Jinping after testing positive for Covid-19 just two days following his meeting with the Chinese president. FT, 4 July
Beijing announces interest rate swaps with Hong Kong after Xi Jinping visit. The new arrangement, called “swap connect”, will first allow offshore investors in Hong Kong to access mainland interbank financial derivatives markets. FT,4 July
Hong Kong has more autonomy since Britain left - ex-leader CY Leung. BBC, 30 June
Economy & tech
UK’s first Critical Minerals Intelligence Centre to help build a more resilient economy. Based in Nottingham, the Critical Minerals Intelligence Centre (CMIC) will improve the resilience of the UK’s critical mineral supply chain by providing policymakers with “criticality assessments”. A critical minerals strategy is expected soon. Gov.UK, 4 July
British satellite programme 'at risk' from sale of Newport Wafer Fab. Solar cell maker MicroLink Devices said the sale of Newport Wafer Fab to Nexperia had scuppered plans for mass manufacturing of its satellite components in Britain. The Telegraph, 3 July
Tesla sales slow. Tesla said Saturday that vehicle deliveries from April through June fell 18 percent, with China’s supply chain problems the main cause. China accounts for about 40 percent of Tesla sales. NYT, 3 July
Long reads & editorial
Editorials on Hong Kong. Keep talking – and trust that, over time, China’s strange idea of democracy will change”. The Observer, 3 July
Settling in: Hong Kongers and their new lives in the UK. Welcoming HK committee, 4 July
China’s rise pushes Asia-Pacific nations to embrace Nato. FT, 4 July