China News - 5 November 2021
International
Chinese swooped for British microchip maker after Government rejected pleas for Covid loans. British chipmaker Newport Wafer Fab, which has found itself centre of a national security row over its Chinese-backed takeover, was turned down for Government coronavirus support before being forced into a sale, it has emerged. Accounts for Newport Wafer Fab showed it was repeatedly rejected by the Welsh government for Covid-19 “economic resilience” grants and failed to meet the criteria for the UK’s coronavirus loan scheme. The Telegraph, 4 November
UK gears up to produce rare earth magnets, cut reliance on China. Britain could revive domestic production of super strong magnets used in electric vehicles and wind turbines with government support, to cut its reliance on China and achieve vital cuts in carbon emissions, two sources with direct knowledge said. A government-funded study due for release today will outline how a new plant could be built by 2024 and eventually produce enough powerful magnets to supply 1 million electric vehicles a year. Reuters, Financial Post, 4 November
COP26
Paris climate target at risk as US and China shun coal pact. The US and China have shunned the UK’s flagship coal pact, dealing a severe blow to the COP26 climate summit and drawing a warning from the IEA, the world’s leading energy body, which said the chances of limiting global warming to the goals of the Paris accord were “close to zero”. FT, 4 November
China, India and other developing nations seek $1.3 trillion a year in climate finance. In a paper presented at the COP26 summit, most of the world’s developing countries have backed a demand for wealthy nations to channel at least $1.3 trillion in climate finance to them annually starting in 2030. Wealthier OECD nations say they aren’t ready to pledge beyond 2025. WSJ, 4 November
Half the world’s fossil fuel assets could become worthless by 2036 in net zero transition, according to new research. The Guardian, 4 November
Britain tracked Chinese submarines and was ready to intercept jets in South China Sea, officers reveal. Frigates and helicopters operating with HMS Queen Elizabeth were able to locate the underwater vessels, helping the UK's biggest warship to steer clear. Sky News, 5 November
'You are not alone': EU Parliament delegation tells Taiwan on first official visit. The European Parliament's first official delegation to Taiwan said on Thursday the diplomatically isolated island is not alone and called for bolder actions to strengthen EU-Taiwan ties as Taipei faces rising pressure from Beijing. Reuters, 4 November
Xi pledges more openness, claiming China has fulfilled WTO commitments. Xi Jinping made fresh pledges on Thursday to open the Chinese market wider as the country has ‘fully delivered on its accession commitments to World Trade Organization.’ Xinhua, CGTN, 4 November
World economic forum postpones China event due to new Covid-19 outbreaks. Caixin, Reuters, 4 November
US calls on China to not limit journalists' freedom at 2022 Beijing Winter Olympics. Channel News Asia, 5 November
New Galápagos conservation efforts aim to counter China fishing fleet. WSJ, 4 November
Economy & tech
Kaisa Group: Missed payment triggers fresh China property fears. Fresh concerns have been raised about China's property sector as Kaisa Group has become the latest developer to miss a payment to investors. Shares in the company were suspended in Hong Kong on Friday. BBC, FT, 5 November
Baillie Gifford’s Anderson: Don’t ‘give up on China’. China’s ability to create world-leading tech companies will outlast a sweeping clampdown by President Xi Jinping, according to one of the most prominent foreign investors in the country. FT, 5 November
US aims to ease semiconductor crunch by working more closely with allies and private sector. The US will focus on addressing supply chain shortages, particularly in semiconductors, building off of strength from the recent G20 leaders’ summit to further ramp up collaboration with other allied countries and the private sector, a senior US official said on Wednesday. SCMP, 4 November
TSMC founder chides US plan for full chip supply chain onshore. FT, 2 November
China’s coal miners commit to cut prices after state intervention. FT, 4 November
Battered by US sanctions, Huawei founder vows to keep fighting in latest motivational message to employees. SCMP, Global Times, 4 November
China focus
Sixth Plenum: Xi Jinping is rewriting history to justify his rule for years to come. Amid changing the rules of politics, business, and society, Xi is pursuing another project that he sees as essential to his continued grip on power: rewriting the history of the party itself. The Economist, 5 November
New Hong Kong university classes set out dangers of breaking security law. Last month, several thousand Hong Kong university students, some of them under the watch of a CCTV camera, were the first to take compulsory courses on the territory’s national security law. Reuters, 5 November
Hong Kong leader expects mainland China border to reopen in February. Reuters, 5 November
Chinese journalist jailed over Covid reporting is ‘close to death’, family say. The Guardian, Independent, 5 November
Opinion & editorial
UK, China must unite in achieving COP26 goals. The British ambassador to China discusses the “once in a generation opportunity” to get the world back on track. Caroline Wilson. Caixin, 5 November
China’s coal addiction is an obstacle to real progress on climate change. Chris Cash. City A.M., 5 November
Is the Chinese Communist Party’s green agenda real? Matthew Henderson. Council on Geostrategy, 4 November
The West is falling behind China in the next space race. Alexander Downer. The Spectator, 5 November
Longer reads
The US is still beating China in human capital - for now. The focus on technology in the US-China conflict has often obscured a crucial nuance: technological strength is the product of national capacity for innovation, powered by high-skilled individuals. Ryan Hass and Jude Blanchette. Foreign Policy, 4 November
Can Xi Jinping’s property tax deflate China’s housing bubble? Beijing faces an uphill battle to undo a system that has led to a bloated property sector. Martin Farrer and Vincent Ni. The Guardian, 4 November
Closing Window: Transatlantic cooperation on China under Biden. Noah Barkin. German Marshall Fund, 3 November
China’s land border law: A preliminary assessment. Shuxian Luo. Brookings, 4 November
The true price of China’s most expensive teas. Xiao Kunbing. SixthTone, 4 November