China News - 4 October 2022
International
UK wins seat on top UN telecoms council. The UK has been elected to the governing council of the International Telecommunication Union (ITU), the UN agency which enables the world’s phone, internet and satellite networks to operate. Its election gives UK a major role in setting standards for a free, open and secure internet. Authoritarian states have increased their interest and activism in the ITU, leading to concerns that their outsized influence in standards setting may lead to the bifurcation of the internet. Gov.uk, 3 October
US to curb more tech exports to keep chips from China military. The Biden administration plans to announce new restrictions on China’s access to US semiconductor technology, according to people with knowledge of the situation, an escalation of Washington’s efforts to stifle Beijing’s industrial ambitions and a risk to growth for the $550 billion sector. The Commerce Department will roll out a package of rules this week to govern which semiconductor technologies can be exported to China, including codifying earlier guidance given to specific companies. Bloomberg, 3 October
Probe into Chinese takeover of Newport Wafer Fab delayed a third time. New Business Secretary Jacob Rees-Mogg is believed to want more time to scrutinise the Newport Wafer Fab takeover before giving a final decision. UKTN understands that government officials met with buyer Nexperia last week. However, the decision is unlikely to be made this week, with the Conservative Party Conference currently in full swing and BEIS directing much of its attention on the energy crisis. UKTN, 3 October
Vodafone merger talks with Chinese-owned rival trigger alarm over undersea cables. The FTSE 100 telecoms empire confirmed it is in talks to combine Vodafone UK with Three, the challenger network owned by CK Hutchison of Hong Kong. However, the combination is likely to face intense scrutiny under the National Security and Investment Act. Parts of Vodafone UK are deemed particularly sensitive, especially the former Cable & Wireless undersea cables it acquired in 2012, which are viewed as a potential target for hostile state eavesdropping or sabotage. The Telegraph, 3 October
China demands foreign diplomats provide floor plans of Hong Kong missions. China has demanded the floor plans of all properties rented by foreign missions in Hong Kong. The order has brought the city in line with how China treats embassies and consulates on the mainland and sparked fears in the diplomatic community that Beijing could use the information to plant listening devices, according to people familiar with the matter. FT, 4 October
Solomon Islands agreed to accord after China references axed. Solomon Islands agreed to sign an accord between the United States and more than a dozen Pacific nations only after indirect references to China were removed, the Solomon Islands foreign minister said on Tuesday. AP, 4 October
Japan moves to fill Asia’s $40tn energy funding gap in China’s stead. Japan is ready to exploit a sharp decline in China’s overseas lending by helping Asia-Pacific countries address the $40tn cost of combating climate change. FT, 4 October
Xi Jinping may ‘recalibrate’ after miscalculation of siding with Russia, Kissinger says. SCMP, 3 October
Economy & tech
China is rerouting US liquefied natural gas to Europe at a big profit. With demand down, Chinese companies that signed long-term contracts to buy US liquefied natural gas are selling the excess and making hundreds of millions of dollars per cargo. Buyers include Europe, Japan and South Korea. WSJ, 3 October
TikTok’s European sales surge sixfold to almost $1bn. TikTok’s London-headquartered international arm, which includes its European operations and its divisions outside of the US and China, reported $990m in revenues in the 12 months ending in December, up from $172m the previous year. The Telegraph, 3 October
China to allow a lot more fuel exports in possible boost to oil. Bloomberg, 3 October
China property woes trigger decline in global cement output. FT, 4 October
China focus
Prospect of 'Chairman Xi' fuels debate as China party congress nears. With China's twice-a-decade Communist Party congress two weeks away, debate is heating up over whether the Mao-era title of "chairman" will be revived for President Xi Jinping, a change that could position him to lead for life but remains deeply controversial. Nikkei Asia, 4 October
For China’s risk-averse local cadres, Beijing’s economic pleas do little. Local officials across China – tasked with the precarious and somewhat contradictory mission of driving economic growth against the backdrop of a crippling zero-Covid policy – have become so risk-averse that it is posing a threat to the nation’s economy, according to analysts. SCMP, 3 October
China spends holiday ‘Lying Flat’ amid heavy travel restrictions. Sixth Tone, 3 October
Long reads & opinion
All eyes on the Chinese Communist Party Congress: A guide for Western policymakers. Edward Knight and Ruby Osman. Tony Blair Institute for Global Change, 3 October
How we would know when China is preparing to invade Taiwan. If war is Beijing’s plan, there would be reliable indications that it is coming. John Culver. Carnegie Endowment, 3 October
Xi Jinping’s quest for order. Security at home, influence abroad. Sheena Chestnut Greitens. Foreign Affairs, 3 October
China’s property crash: ‘a slow-motion financial crisis’. FT, 4 October