China News - 4 May 2022
International
US moves towards imposing sanctions on Chinese tech group Hikvision. The Biden administration is laying the groundwork to place human rights-related sanctions on Hikvision, according to people familiar with the internal discussions. The move would have far-reaching consequences because companies and governments that deal with Hikvision, the world’s largest manufacturer of surveillance equipment, would risk violating US sanctions. The UK Department of Health recently banned the purchase of cameras made by the Chinese state-backed company. FT, 4 May
Covid: Beijing ramps up efforts to control Omicron outbreak. China’s capital confirmed 51 new Covid-19 infections from around 20 million tests conducted and authorities reopened a mass isolation centre as the city tries to avoid a Shanghai-style lockdown. Meanwhile, the Shanghai municipal government is set to allow more manufacturers to resume production if they obey virus-control rules. The Guardian, 4 May
China’s independent refiners start buying Russian oil at steep discounts.
An official at a Shandong-based independent refinery said it had not publicly reported deals with Russian oil suppliers since the Ukraine war started to avoid being hit by sanctions. The FT reports that China’s independent refiners have been discreetly buying Russian oil at steep discounts, taking over some of the purchase quota for Russian crude from state-owned commodity trading firms, which are seen to represent Beijing and have mostly declined to sign new supply contracts. FT, 3 May
Trade war: US looking at lifting tariffs on Chinese goods as inflation looms. Washington’s trade office told US businesses on Tuesday that it had begun a statutory process that could ultimately end up removing tariffs on Chinese goods. Under the policy, businesses will have until July 6 to notify the USTR that they want them kept in place. SCMP, 3 May
China envoy vows to play 'constructive role' amid tensions on Korean peninsula. Reuters, 3 May
Hong Kong falls to 148th in press freedom as Beijing tightens grip. Nikkei Asia, 4 May
Economy & tech
US securities regulator probes Didi Global's $4.4 billion IPO. Didi was cooperating with the US securities regulator's investigation related to its $4.4 billion initial public offering in the in June last year, "subject to strict compliance" with Chinese law, the company said in its annual filing on Monday. Reuters, 3 May
Maersk says China lockdowns may worsen container congestion. Bottlenecks in global container shipping could worsen later this year as a result of new COVID-19 lockdown measures in China, the shipping group warned on Wednesday. Reuters, 4 May
Exclusive: Shanghai authorities stepped up to help Tesla reopen factory. Reuters, 3 May
Real-estate experts say the UK, Canada, and Australia are the winners of Hong Kong's loss. Business Insider, 4 May
Opinion & editorial
The costs of sanctioning China would be off the scale. Those in favour of a split between East and West should be careful what they wish for. Jeremy Warner. The Telegraph, 4 May
Turning the tables: why China’s Ping An plans to break up HSBC. Tabby Kinder and Stephen Morris. FT, 4 May
To split or not to split: would a break-up help HSBC solve the China conundrum? Ben Martin and Patrick Hosking. The Times, 4 May
Triumphalism returns to haunt Xi Jinping. China’s leader risks being blamed for the failure of a zero Covid policy that once seemed successful. Gideon Rachman. FT, 2 May
Long reads
China wants its investments in Afghanistan to be safer than in Pakistan. Beijing could profit handsomely from Afghan resources and exports, but new ventures carry major risks. Raffaello Pantucci and Ajmal Waziri. Foreign Policy, 3 May
Chinese Christians' Global Mission. China's Boss Christians are reshaping Protestantism and twenty-first century geopolitics. Erik Green. Substack, 4 May
Fearful of getting cut off, China pushes for self-reliance. James T. Areddy. WSJ, 3 May