China News - 4 March 2022
Event on Monday: Alicia Kearns MP will be joined by three Sino-Russian experts - Bonny Lin, Sergey Radchenko and Maria Repnikova - to discuss how the invasion of Ukraine will impact China’s relationship with Russia. Was Beijing kept in the dark over the attack?
Monday, 5-6pm GMT. Register here (via Zoom).
International
In fast-changing Europe, rage against Russia fuels suspicion of China. In asking Beijing to help negotiate a ceasefire, the EU hasn't raised with China allegations that Beijing knew of Russia's invasion in advance and asked Putin to hold off until after the Olympics. Behind the scenes, there is frustration at China’s unwillingness to budge on refusal to use the word “invasion”, or to criticise Putin at all. SCMP, 3 March
China-based AIIB freezes lending to Russia and Belarus over Ukraine war. The Beijing-based bank on Thursday said it would “safeguard its financial integrity” and assess the impact of the Ukraine war on its operations and members’ economies. The AIIB was founded with an official stance of political neutrality, with the UK becoming the first G7 member to join in 2015. FT, Nikkei Asia, 3 March
How much trade does Russia do with China? BBC, 4 March
Quad leaders agree Ukraine experience should not be allowed in Indo-Pacific. Reuters, 3 March
Why India has not spoken out against invasion. The Times, 3 March
UK seeks investors for nuclear plant as it eases out China’s CGN. The British government is seeking financial advisers to raise billions of pounds for the proposed Sizewell C nuclear plant in Suffolk as ministers close in on a tacit agreement with Beijing to remove Chinese state-backed energy group CGN from the £20bn project. A new company would replace the joint venture between French utility EDF and CGN, according to people familiar with the government’s plans. FT, 3 March
Amendment 108 to Health & Care Bill passes in House of Lords. Lord Blencathra’s amendment would stop medical equipment being purchased from countries in which there is deemed to be 'a serious risk of genocide’ and will now be debated in the House of Commons. Peers also debated supporting democracy in Taiwan yesterday. Politics Home, 4 March
China-watchers are fleeing the country for other Asian hubs. A growing exodus over the past couple of years suggests that, for the first time in decades, more China hands may soon sit outside the country than in it, with other Asian capitals as the chief receiving stations. The Economist, 4 March
China unites with Somalia against growing Taiwanese-Somaliland ties. Somalia’s foreign minister promises Beijing that Mogadishu will resist Taipei’s relationship with breakaway Somaliland. SCMP, 3 March
Foreign embassies in China puzzle over Japanese diplomat’s detention. The Economist, 4 March
Strong stance on China and Peng Shuai helps land WTA a new title sponsor. NYT, 3 March
Economy & tech
Chinese banks scramble for 'workarounds' as Russia sanctions impinge. Executives at some leading Chinese banks are exploring alternative payment systems as well as the possibility of passing some of their business to small domestically focused peers to avoid getting caught in secondary sanctions, said two bankers with knowledge of the matter. Reuters, 3 March
China scrambles to prevent property pandemonium. As defaults escalate, another shock threatens to hit a global economy already hobbled by soaring inflation and geopolitical clashes. The Economist, 4 March
India accuses China's Huawei of tax evasion - government source. Reuters, 3 March
China's 'common prosperity' push leads to divergence in regulatory approach. Reuters, 4 March
China focus
Ukraine outcry and Covid chaos overshadow Xi’s celebrations. The National People’s Congress, which convenes in Beijing on Saturday, will now be overshadowed by the international furore over Xi’s support for Russia’s invasion of Ukraine — and the collapse of his zero Covid policy in Hong Kong. FT, 4 March
What to watch for at China’s ‘Two Sessions’. Caixin, 3 March
In China, fewer are willing to splurge as economic worries mount. From cancelled vacation trips to cutting back on dining out, Chinese consumers have remained cautious, threatening plans to reignite growth. WSJ, 3 March
Few in Hong Kong worry about catching Covid - they fear the bureaucratic nightmare of quarantine. The blind belief that the city’s “dynamic” zero-Covid policy could hold off any outbreak, combined with a failure to learn from other countries’ experiences and prepare for a major surge, have come at a high cost. The Telegraph, 3 March
Opinion & editorial - Ukraine crisis
Charles Parton has written a two-part series on relations between China and Russia for the Council on Geostrategy:
China-Russia relations: Before the invasion of Ukraine
After the invasion: The future of China-Russia relations
‘Peacemaker’ or casual observer: what China could do next during Russia's war on Ukraine. Stumbling Beijing fears being tainted by Moscow’s brutality. Will Xi Jinping stand by Putin the pariah? Ian Williams. The Telegraph, 3 March
Ukraine war shows West's declining understanding of the world. Ignorance is especially evident in much of the discourse about China. William Bratton. Nikkei Asia, 3 March
Xi engulfed in crisis just when he wanted stability most. Bloomberg, 3 March
Long reads
The Reshuffling Report: Reconciling drastic moves and political stability. Anticipating and analysing leadership changes at China’s 20th Party Congress. Cheng Li. Brookings, 2 March
China’s clean energy conundrum. Climate change looms over China’s population and resources, but cutting carbon may not be as important as the nation’s top priority: security. Nadya Yeh. SupChina, 3 March
Lithuania sees threats from two big powers: Russia and China. The Economist, 4 March