China News - 7 April 2022
Podcast: Hong Kong’s struggle with COVID and political distrust. Mary Hui joined Chris Cash to discuss the devastating Omicron surge in Hong Kong and how the city has changed under the sweeping National Security Law. Listen here.
International
China state refiners shun new Russian oil trades. China's state refiners are honouring existing Russian oil contracts but avoiding new ones despite steep discounts, heeding Beijing's call for caution as western sanctions mount against Russia over its invasion of Ukraine, six people with knowledge of the matter told Reuters. Chinese state-owned firms do not wish to be seen as openly supporting Moscow by buying extra volumes of oil, with Sinopec, CNOOC, PetroChina and Sinochem opting to stay on the sidelines in trading fresh Russian cargoes. Reuters, 6 April
Shanghai: Residents 'running out of food' in Covid lockdown. Strict rules mean most people are confined to their homes and have to order in food and water. But the surge in cases and the lockdown extension have overwhelmed delivery services and grocery shop websites, with many locals venting their frustrations online. Officials have admitted that the city is facing "difficulties" but say they are trying to improve this. BBC, 7 April
Shanghai lockdown ‘will have a global effect on almost every trade’. FT, 7 April
Divides emerge on Chinese internet about country’s path out of Covid-19. SCMP, 7 April
Beijing anoints Carrie Lam’s deputy John Lee as new Hong Kong ‘iron man’. According to the South China Morning Post, pro-Beijing figures in the territory were briefed in meetings with mainland officials today and told that Lee would run unchallenged. Lee is a former policeman who rose quickly through the civilian government as a security official. HKFP’s John Burns laid out what Lee as chief executive might mean for the city. The Times, 6 April
Arrest data show National Security Law has dealt a hard blow to free expression in Hong Kong. The Georgetown Center for Asian Law has tracked every NSL-related arrest since July 1, 2020; since then, 183 individuals have been arrested for alleged national security crimes. Most arrests in connection with the NSL are linked to one of three aims: the dampening of free speech, the punishment of those maintaining foreign contacts, or the crackdown on pro-democratic opposition political figures. ChinaFile, 5 April
China accuses UK, US and Australia of trying to build Asia-Pacific NATO. Chinese Foreign Ministry spokesperson Zhao Lijian told a daily briefing the development of hypersonic weapons via the recently created AUKUS security alliance would "undermine peace and stability in the Asia-Pacific region". ABC, 6 April
China warns of strong measures if US Speaker Pelosi visits Taiwan. Reuters, 7 April
Upgraded China-New Zealand FTA ‘to bring brighter shared future.’ Xinhua, 7 April
Economy & tech
China’s BeiDou is ready to take on GPS. Chinese companies are advancing Beidou, China’s satellite navigation system, in a race for global dominance. BeiDou’s development has come with the system’s mass application on consumer devices, and integration with a range of industries such as transportation, public safety, and agriculture. SupChina, 6 April
China venture deal poses uncertainties to Arm’s licensing income. SoftBank-owned Arm Ltd.’s transfer of its stake in its wayward China joint venture may expose the British semiconductor design giant to the risk of losing some of its licensing income from the unit, analysts warned. Caixin, 7 April
Hong Kong stocks begin to beat Chinese shares after languishing for a year. The run-up in Hong Kong reflects the resilience among investors after weathering more than a year of China’s regulatory clampdown on technology stocks. SCMP, 7 April
China infrastructure push dwarfs other countries’ spending. Bloomberg, 6 April
EV price hikes fueled by battery costs send jolts across China. Nikkei Asia, 7 April
Opinion & long reads
China’s ‘Two Sessions’ paper over cracks in a troubled economy. George Magnus assesses the economic policy outcomes of the Chinese Communist Party’s ‘Two Sessions’. George Magnus. Council on Geostrategy, 6 April
How to stop China and the US going to war. Armed conflict between the world’s two superpowers, while not yet inevitable, has become a real possibility. Kevin Rudd. The Guardian, 7 April
No, China is not a winner from the war in Ukraine. Beijing stands to lose less than some, but the conflict harms Chinese interests more than it helps them. Katie Stallard. The New Statesman, 6 April
Why most of the Indo-Pacific tiptoes around Russia. With Beijing and Moscow working so closely together, countries find it risky to support the West on Ukraine. Derek Grossman. Foreign Policy, 6 April