China News - 6 July 2022
International
Nexperia has no plans to close Newport Wafer Fab, says UK boss. Chipmaker Nexperia says it has no plans to close Britain’s largest semiconductor plant but has called for a swift end to the government’s national security probe into its takeover of the foundry. Speaking at the BEIS committee inquiry into the UK semiconductor sector, Toni Versluijs, the company’s UK manager, also told MPs that Nexperia is prepared to support the development of a spin-out which would pursue compound semiconductor R&D in Newport. Tech Monitor, 5 July
China opens its first political party school in Africa. According to news agencies, 120 cadres from African ruling parties are attending the workshop at the US$40 million facility in Tanzania funded by the Chinese Communist Party. The school provides a platform for China to enhance exchanges with leaders as a form of “party-to-party” diplomacy. Eurasia Review, 5 July
China records first cases of new Omicron variant BA5. Xian, the capital of Shaanxi province, is imposing new curbs on residents after a handful of cases of the highly transmissible subvariant were identified in the city. Some residents expressed dismay at the closures on social media, while health experts questioned the efficacy of some of the Chinese vaccines against BA5. SCMP, 5 July
Biden considers tiny China tariff relief package. US President Joe Biden could lift tariffs on just $10 billion worth of Chinese goods under a plan being discussed within the administration, according to industry officials and former federal officials with knowledge of the plans. Meanwhile, Treasury Secretary Janet Yellen held a virtual meeting with Chinese Vice Premier Liu He to discuss “macroeconomic and financial developments.” Politico, 5 July
Five stand trial for sedition in Hong Kong over children’s books about sheep. The case revolves around a series of books published by the now-defunct General Union of Hong Kong Speech Therapists that featured cartoon sheep and wolves, which prosecutors said were analogies for Hong Kong residents and mainland Chinese that were intended to “incite hatred” toward the latter. The Guardian, 6 July
Jo Johnson: rise of China-Russia axis could hobble global science. Closer ties between Moscow and Beijing may force Western universities to cut their research ties with China, causing a “profound shock” to global research networks unless risks are managed, says former science minister Lord Johnson in a new report for the Policy Institute at King’s College London and the Harvard Kennedy School. Times Higher Education, 6 July
China and India funnel $24 billion to Putin with energy spree. Bloomberg, 6 July
China censors news of alleged hacking of Shanghai police database. FT, 5 July
Economy & tech
US pushes for Netherlands' ASML to stop selling chipmaking gear to China. Washington’s proposed restriction on technology essential in making a large chunk of the world’s chips would expand an existing moratorium on the sale of the most advanced systems to China, in an attempt to thwart China’s plans to become a world leader in chip production. Bloomberg, 6 July
Chinese group BYD overtakes Tesla in global electric vehicle sales. The rise of BYD, the Chinese auto group backed by Warren Buffett’s Berkshire Hathaway, underscores China’s strengthening position in renewable energy, boasting scale and cost advantages across much of the supply chain for electric vehicles, batteries and wind and solar energy. FT, 5 July
China takes wider aim at foreign tech with national standards plan. Proposed new Chinese national technology standards signal a broader push to restrict foreign manufacturers, presenting them with a potential choice between divulging vital design details or abandoning a vast market. Nikkei Asia, 6 July
Hong Kong exchange enlists HSBC, Tencent to help create carbon market. Reuters, 5 July
Long reads & opinion
The next wolf warriors: China readies new generation of tough diplomats. As party congress looms, Xi Jinping set to replace foreign policy leadership. Richard McGregor and Neil Thomas. Nikkei Asia, 6 July
Chinese-Russian relations: How to respond? James Rogers and Patrick Triglavcanin. Council on Geostrategy, 5 July
China activates data in the national interest. Beijing wants to create a data economy that prioritizes state sovereignty and localisation. Rebecca Arcesati. MERICS, 4 July