China News - 5 January 2023

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International

China Covid

WHO says China data underrepresents Covid surge and deaths. China's Covid-19 data is not giving an accurate picture of the situation there and underrepresents the number of hospitalisations and deaths from the disease, a senior official at the World Health Organization said on Wednesday. Speaking hours later, US President Joe Biden said that he was worried about how China was handling the outbreak. "They're very sensitive … when we suggest they haven't been that forthcoming," he told reporters. Reuters, 4 January

Why Xi Jinping reversed his zero-Covid policy in China. A Wall Street Journal report has revealed that the rare wave of protests in China’s largest cities in late November, coupled with urgent pleas from many corners of the government, finally persuaded Chinese President Xi Jinping to relax China’s zero-Covid policy. As late as mid-November, Xi has been wavering on whether and how to unwind a policy with which he had so closely associated himself, according to officials and advisers. WSJ, 4 January

China Covid: EU officials 'strongly' urge testing for travel. BBC, 4 January

China and Philippines agree on new channels to resolve South China Sea disputes. Beijing and Manila have agreed to set up direct communication channels and peacefully resolve maritime disputes in the South China Sea following talks between Xi Jinping and his Philippine counterpart Ferdinand Marcos Jnr. Marcos’s state visit to China generated $22.8 billion worth of investment pledges, his office said on Thursday. SCMP, 5 January

Former NATO chief: Europe must help deter China from attacking Taiwan. Anders Fogh Rasmussen called on European leaders to publicly commit to cutting off China's access to the global economy if it makes a move on Taiwan. "Spelling out the severe economic consequences of any attack now would be a powerful deterrent," he said. Axios, 5 January

Part of Taiwan’s most advanced anti-ship missile sent to mainland China for repairs. Taiwan’s top military research unit on Wednesday denied there had been any data leaks after it confirmed that a key component of its most advanced locally developed missile has been sent to mainland China for repairs. SCMP, 4 January

US, Taiwan to hold trade talks in Taipei in defiance of China. The US will send a delegation led by Assistant US Trade Representative Terry McCartin to hold trade talks in Taipei this month. Bloomberg, 5 January

Peng Shuai: WTA demands private meeting before tournaments can resume. The governing body for women's tennis says it wants to meet Peng Shuai in person before it can resume tournaments in China. Last year the former tennis star accused a top Chinese official of sexual assault before briefly disappearing from the public eye. BBC, 5 January

Ecuador and China sign a free-trade agreement. Ecuador has become the fourth Latin American country to ink a lucrative free-trade agreement with China. The China Project, 4 January

Turkey won’t extradite Uyghurs to China, foreign minister says. Radio Free Asia, 3 January

China to reopen border with Hong Kong this Sunday. Al Jazeera, 5 January

Economy & tech

Chinese battery makers strengthen grip on global supply. Chinese battery manufacturers have extended their dominance over global supply, with the top two producers reaching a combined market share of 50 per cent. CATL, supplier to carmakers including Tesla and Volkswagen, more than doubled battery sales to 165.7 gigawatt hours in the 11 months to the end of November. FT, 4 January

Dell looks to phase out 'made in China' chips by 2024. The world's third-largest computer maker aims to stop using chips made in China by 2024 and has told suppliers to significantly reduce the amount of other "made in China" components in its products as part of efforts to diversify its supply chain amid concerns over Washington-Beijing tensions. Nikkei Asia, 5 January

Australian coal industry says China market matters less than before, even if import ban ends. Queensland Resources Council says the industry would welcome restrictions easing but new long-term customers have since been found elsewhere in Asia. The Guardian, 5 January

New home prices in 100 Chinese cities fall for first time in eight years. Yicai, 4 January

China services activity shrinks for fourth straight month. Caixin, 5 January

China focus

State Council Executive meeting emphasises scaling up of medical and energy supplies. The meeting, chaired by Premier Li Keqiang, noted that it is imperative to take stronger steps to ensure supply and stable prices of essential necessities, medical goods and energy, to guarantee sufficient market supply and price stability during the Spring Festival. Rumours of heating shortages in some provinces have been circulating on Chinese social media. Xinhua, 4 January

Millions of people worked in China’s mass testing system. Now they’re out of a job. Most testing booths have been closed down after the zero-Covid policy came to an abrupt end, and there’s also a mountain of medical supplies that are no longer needed. SCMP, 5 January

Long reads & opinion

Resurgent Chinese travel would reset the country’s global image. Leo Lewis. FT, 4 January

Reinventing the Indo-Pacific. A new super-region is taking shape—mainly to counter Chinese aggression. The Economist, 4 January

Ripped away from home, we are haunted by the Hong Kong taken from us. Rhoda Kwan. The Guardian, 4 January

Watching China in Europe - January 2023. Noah Barkin. German Marshall Fund, 4 January