China News - 5 October 2022
Podcast: China’s Global Security Initiative. Chris Cash and Archie Brown are joined by Ovigwe Eguegu to discuss Xi Jinping’s new international security proposal and its implications for the future of China's engagement with the developing world. Listen here.
International
China, Russia at odds with US over UN meeting on North Korea. The United States asked the UN Security Council to meet on North Korea on Wednesday after Pyongyang fired a ballistic missile over Japan, but diplomats said China and Russia are opposed to a public discussion by the 15-member body. Britain, France, Albania, Norway and Ireland joined the United States in making the request. Reuters, 4 October
China has 'destroyed' tacit agreement on Taiwan Strait - minister. China has destroyed a tacit agreement on military movements in the Taiwan Strait by crossing an unofficial "median line" running down the waterway, Defence Minister Chiu Kuo-cheng said on Wednesday. Chiu told a Taiwanese parliamentary committee on Wednesday that Taipei would react if China crossed its “red line”, but did not say what it was. Reuters, 5 October
Taiwan’s military recruitment pool shrinking due to low birthrate. The declining birthrate in Taiwan could cause “major challenges” to the island’s military recruitment capabilities, at a time when Taiwan is building its defences to ward off potential Chinese invasion, its government has been told. The Guardian, 4 October
Record numbers of Chinese students head for Hong Kong universities. The number of undergraduate students from China studying in Hong Kong universities hit record numbers last year, after growing at the fastest pace in nearly a decade. The trend comes after strict travel restrictions during the pandemic deterred Chinese students from travelling abroad, where many seek to gain a degree. The Times, 4 October
Global accounting firms warned over use of local affiliates. The biggest global accounting firms have been told to expect tougher scrutiny by US regulators of their overseas affiliates, amid concerns about lower standards in China and elsewhere. For many years, the Public Company Accounting Oversight Board has been unable to conduct inspections in China. Beijing signed an agreement to let inspectors in earlier this year, and the agency has begun its first inspections of work by Chinese affiliates of KPMG, PwC and others. FT, 5 October
China's satellite ground stations in South America. China has expanded its use of satellite ground stations in South America, fueling concerns that ostensibly civilian facilities could also be used for intelligence collection and surveillance, according to a new report. Axios, 4 October
Key Chinese Belt and Road builder faces rising risks and debt. Nikkei Asia, 5 October
China and Ugandan leader decry EU’s call to halt planned African oil pipeline. SCMP, 5 October
Economy & tech
HSBC weighs sale of Canadian business as part of strategic review. HSBC is conducting a strategic review and exploring the potential sale of at least part of its business in Canada, as it faces pressure from its largest shareholder, Ping An Insurance Group, to break up the bank. SCMP, 4 October
Apple cuts mainland contractors in gradual move to diversify its manufacturing network. Apple added six new Chinese suppliers and cut seven previous contractors on the mainland during its past financial year to September. Mainland China remains the US tech giant’s primary production base, where about half of the factories run by its top 190 disclosed suppliers are located. SCMP, 4 October
BYD sales hit record high as China steers stimulus to auto market. China’s largest new-energy vehicle (NEV) manufacturer BYD reported record sales last month as China stepped up stimulus to shore up sluggish economic growth. In September, BYD sold 201,259 NEVs, up 183% year-on-year and marked the seventh consecutive month of growth. Caixin, 4 October
Geely tries to grab wheel at Aston Martin. The Times, 5 October
SWIFT sets out blueprint for central bank digital currency network. Reuters, 5 October
China focus
Holiday Covid flareups spark travel chaos before China congress. China’s Covid-19 cases climbed to the highest in more than two weeks as outbreaks during a week-long holiday dash hopes of keeping a tight lid on the virus ahead of the politically significant Party Congress. Nationwide, there were 909 infections recorded on Tuesday. Bloomberg, 5 October
As China’s economy stutters, the elderly are emerging as big spenders. Insulated from the economic slowdown, retirees have become the driving force of China’s struggling tourism industry. Sixth Tone, 4 October
How academies for cadres shape China’s ruling class. The Economist, 4 October
Long reads & opinion
China after the property boom: can it rebuild the growth model? Xi Jinping can revive the economy by encouraging more consumer spending, but would lose some political control. Edward White. FT, 5 October
Xi Jinping’s third term is a tragic error. China’s macroeconomic, microeconomic and environmental difficulties remain largely unaddressed. Martin Wolf. FT, 4 October
Are worsening US-China relations in Taiwan’s interest? Ryan Hass. Brookings, 4 October
China’s interests in Afghanistan one year after the withdrawal. Zafar Iqbal Yousafzai. The Jamestown Foundation, 4 October