China News - 5 May 2022
International
Exclusive: Beijing orders ‘stress test’ as fears of Russia-style sanctions mount. Concerned about sweeping Russia-style sanctions from the west, Beijing has ordered a comprehensive “stress test” to study the implications of a similar scenario for its economy, The Guardian has learned. An extensive exercise began around late February, with several key Chinese government agencies – from banking regulation to international trade – being asked to come up with responses if the west imposed the same embargos on to China. The Guardian, 4 May
EU plan to curb foreign state-backed buyers picks up pace. EU countries and lawmakers will kick off discussions on a plan targeting foreign state-backed buyers of European companies amid fears of a Chinese buying spree. The European Commission said the measure takes aim at subsidies which harm competition and also covers bids in public tenders in order to prevent foreign subsidies used to grow market share or underbid European rivals to gain access to strategically important markets or critical infrastructure. Reuters, 4 May
China’s secret property empire in the UK. The Spectator’s Steerpike reports that the People’s Republic of China is the registered owner of no less than 60 titles - worth ‘a small fortune’ - in the Greater London boundary. A freedom of information request received a reply that blocked the release of their total worth and physical locations on the grounds that it might imperil both 'international relations' and 'health and safety.' The Spectator, 4 May
With international backing, Taiwan makes another bid for World Health Assembly. On Wednesday, representatives from 20 national medical organisations alongside several legislators held a press conference calling on the World Health Organization (WHO) to allow Taiwan to participate, emphasising its successful handling of COVID-19 and donations of masks and PPE. SupChina, 4 May
How Covid-scarred Shanghai will finally exit lockdown. A mass clean-up is sweeping through Shanghai, with the city's gradual reopening expected to follow. BBC, 5 May
PLA Navy steps up real-life combat drills in East China Sea near Taiwan. SCMP, 4 May
Solomons, China dominate Australia defence debate ahead of election. Bloomberg, 5 May
Economy & tech
SEC adds 80 more Chinese stocks to non-compliance list. The companies, including JD.com, Pinduoduo and Bilibili, were added to an expanding list of firms that face possible expulsion from American exchanges because of Beijing’s refusal to allow access to the businesses’ financial audits. Bloomberg, 5 May
China’s Covid policies have European companies wary of investing. Lockdowns and supply chain issues have soured European businesses in China on the idea of further investment in the country, a survey by the European Chamber of Commerce in China finds. NYT, 5 May
Hong Kong economy’s unhappy new year. The financial centre’s economy shrank by 4 per cent in the first three months of the year against the same period in 2021, breaking four quarters of growth. The Times, 4 May
China's services activity falls at second sharpest rate on record as PBOC pledges policy support. Bloomberg, 5 May
PBOC backs coal industry with $15 billion of credit. Caixin, 5 May
Opinion & long reads
Can China manage the economic side effects of lockdowns? As the threat of further closures looms, economists are downgrading the country’s growth projections. James Palmer. Foreign Policy, 4 May
Book review: Sinostan - how China moved into Russia’s backyard. A compelling geopolitical travelogue explores Beijing’s growing influence in Central Asia. Isabel Hilton. FT, 4 May
Assessing the Solomon Islands’ new security agreement with China. Euan Graham. IISS, 5 May
China’s ‘innovation machine’: how it works, how it’s changing and why it matter. The Conversation, 5 May