China News - 6 May 2022
New podcast: China Digital Ambitions. Emily de la Bruyère, co-founder of Horizon Advisory, discusses China's global digital strategy, its ambitions to lead the world in setting technical standards for emerging technologies, and how the UK and like-minded democracies can respond. Listen here.
International
UK and Japan sign defence pact. The UK and Japan have agreed a reciprocal access agreement which will enable faster deployment of their troops and allow them to engage in joint training and disaster relief efforts. UK Prime Minister Boris Johnson said allies in Europe and east Asia have to be unified in the face of “autocratic, coercive powers”. Japanese prime minister Fumio Kishida stressed the importance of a resolute international response to Russia’s invasion of Ukraine in deterring potential future Chinese action against Taiwan. Gov.uk, BBC, 5 May
China wants to increase its military presence abroad. China has just one military base abroad, a naval facility opened in 2017 in Djibouti. But The Economist reports that its new security pact with the Solomons has deepened concerns that China will challenge American naval dominance in the Pacific. American and allied officials believe Beijing has approached at least five countries over establishing overseas military bases since 2018 and considered a dozen others as potential hosts. The Economist, 5 May
Analysis: China’s troubling new military strategy is coming into view. Jonah Blank. The Atlantic, 5 May
Beijing nervously returns to work as China’s top leaders double down on 'zero-Covid' policy. Xi Jinping warned against “any slackening” in the effort and vowing to crack down on criticism of the policy following a meeting on Thursday of the Communist party’s politburo standing committee. Xi’s high-profile endorsement of zero-Covid compounded a drag on markets, with Chinese tech stocks among the hardest hit. FT, Reuters, 6 May
Xinjiang cotton found in Adidas, Puma and Hugo Boss tops, researchers say. Researchers say they have found traces of Xinjiang cotton in shirts and T-shirts made by Adidas, Puma and Hugo Boss, appearing to contradict the German clothing companies’ promises to revise their supply chains after allegations of widespread forced labour in the Chinese region. The Guardian, 5 May
Hikvision shares plunge after US sanctions threat. FT, 5 May
Australia-China: ‘No doubt’ that Beijing wants to influence May election, PM Scott Morrison’s defence minister says. SCMP, 6 May
Economy & tech
Arm China chief refuses to go despite his dismissal. On Chinese social media site Weibo, Arm China said that Allen Wu had “refused to comply with the board’s decision and refused to hand over his management duties”. The Chinese division of Arm has registered Liu Renchen – a member of Shenzhen’s political advisory committee – as its new legal representative, a development that would pave the way for owner SoftBank to proceed with plans to list UK-based Arm on the Nasdaq. The Times, SCMP, 6 May
Shares of Tesla’s battery maker plunge after net profit slides. CATL’s shares fell as much as 14 per cent to Rmb353 ($53) in morning trading, with the world’s biggest EV battery maker claiming its lower profit was in part due to the rising price of raw materials. CATL is in the final stages of vetting sites in the United States to build batteries. FT, Reuters, 5 May
China focus
Chinese social media groups reveal nationalist influencers blogging from abroad. User location information made public by Chinese social media companies has revealed that posts of some of the country’s most prominent hardline online nationalists come from abroad, stoking outrage among some compatriots. FT, 6 May
China’s young elite are considering moving abroad. On WeChat, a popular messaging app, searches for “immigration” increased more than fourfold between early and mid-April. Spikes in their frequency coincided with traumatic events in Shanghai. The Economist, 5 May
Changsha building collapse death toll climbs to 53. Caixin, 6 May
Opinion & editorial
China unveils its vision of a global security order. Xi Jinping lays out a worldview with Chinese-Russian roots. Chaguan. The Economist, 5 May
China can help bridge divide with the West by offering to mediate between Russia and Ukraine. The hostility between China and the West can be seen in terms of Beijing being cast as a member of an outside group. Winston Fung. SCMP, 6 May
China lockdown: What do zero-Covid policies mean for UK prices? Nicholas Barrett and Wanyuan Song. BBC, 5 May
Long reads
Taiwan and the dangerous illogic of deterrence by denial. Melanie W. Sisson. Brookings, 5 May
Embedding human rights in European and US China policy. Malin Oud. GMF, 4 May
In-depth: how the war in Ukraine is rattling China’s energy transition. Caixin, 5 May