China News - 4 September
International
UK solar could be a “dumping ground” for products of Chinese forced labour, ministers warned. Chair of the CRG and Foreign Affairs Select committee, Alicia Kearns, has tabled an amendment to the energy bill. The amendment would require the Planning Inspectorate in England to tackle forced labour in nationally significant infrastructure projects over 50MW. Patrick Wintour. The Guardian, 3 September
Xi Jinping’s absence challenges G20 status as global leadership forum. Xi’s decision to not attend the summit and send his deputy, Li Qiang, is the first time a Chinese President has skipped a G20 meeting. His absence threatens the status of the G20 as the pre-eminent global leadership forum. Henry Foy, James Politi, John Reed and Joe Leahy. Financial Times, 1 September
Britain’s foreign secretary defends trip to China in response to a barrage of criticism from colleagues. James Cleverly said that the UK has to be “patient and consistent. That is why I bring up issues around human rights, Xinjian, Hong Kong, and indeed individual cases every time I have a meeting with representatives of the Chinese government”, as he explains the reasons for his recent visit to China. Duncan Bartlett. The China Project, 3 September
Raimondo warns China patience of US business is “wearing thin”. The US Commerce Secretary said in an interview that American companies deserved a “predictable environment and a level playing field”. China and the US used to be each other’s largest trade partners, and now both prefer to trade with neighbouring countries. Diane Bartz and Phil Stweart. Reuters, 3 September
Italy did not get expected results from China Belt and Road deal, foreign minister says. Antonio Tajani said ahead of his visit to China, “the Silk Road did not bring the results we expected” as trade between Italy and China has not improved since Rome joined the Belt and Road initiative four years ago. Francesca Landini and Giselda Vagnoni. Reuters, 2 September
In overture to China, the Pope sends greetings to “noble” people. During Pope Francis’ visit to Mongolia, he sent greetings to China asking all Catholics in China to be “good Christians and good citizens”. Philip Pullella. Reuters, 3 September
iPhone billionaire shakes up Taiwan’s presidential election. Terry Gou has published a dramatic manifesto for Taiwan’s presidency. The Foxconn founder is committed to rescuing Taiwan from the “brink of a precipice” and make it the richest place in Asia. Gou also demands a more conciliatory policy on China. Kathrin Hille. Financial Times, 1 September
Economy & Tech
Xi Jinping puts China’s security ahead of tackling its economic woes. China’s president had refrained from providing broad-based stimulus, which is the latest example of how Xi’s focus on security is shaping his response to economic problems. CCP leadership prefers slower growth rates than the risk of pulling the trigger on any big changes that could add to government debt or risk financial instability. Edward White and Sun Yu. Financial Times, 4 September
China’s economic slowdown reverberates across Asia. “To borrow an old adage, when China sneezes, Asia catches a cold” according to Vincent Tsui, an analyst with Beijing research group Gavekal. South Korea, Japan, Hong Kong, Singapore and Taiwan are all experiencing waning consumer demand and slower manufacturing. Edward White and Song Jung-a. Financial Times, 3 September
China boosts housing market and renminbi support. In a bid to restore confidence in the world’s second largest economy, the People’s Bank of China has announced it will cut the amount of foreign currency that financial institutions are required to hold in reserve. Beijing and Shanghai have also lowered minimum mortgage interest rates for first time home buyers, this has been copied by Guangzhou and Shenzhen. Hudson Lockett and Joe Leahy. Financial Times, 1 September
China’s battery plant rush raises fears of global squeeze. According to CRU Group data, China is building battery factories that far exceed domestic demand. Production capacity is expected to reach 1,500 gigawatt hours this year, which is more than double current demand levels. Harry Dempsey and Edward White. Financial Times, 3 September
Opinion & long-reads
China’s new national map has set off a wave of protests. Why? The CCP has managed to upset many countries in the Asia-Pacific region. China’s new official map lays claim to most of the South China Sea, as well as contested parts of India and Russia. Official objections from affected countries continue to mount. The Independent, 1 September
The looming succession battle over the Dalai Lama. The Tibetan spiritual leader is determined to continue “to serve everyone for the next few decades”. However, the death of the Dalai Lama could spark a stand off in global politics, between the atheist communist leaders in Beijing and exiled Tibetan Buddhists. John Reed and Joe Leahy. Financial Times, 3 September
Fukushima waste water hysteria distracts from real threats to the Pacific Ocean’s health. Countries around the Pacific should be concerned about reducing ocean pollution as a whole. The various government responses over Fukushima demonstrate our generally appalling ability to evaluate rationally the environmental risks our communities face. David Dodwell. South China Morning Post, 2 September