China News - 7 October 2021

International

US-China talks

US, Chinese diplomats’ meeting in Zurich paves way for continued talks. The latest round of talks between Jake Sullivan, US national security adviser, and Yang Jiechi, China’s top foreign policy official, finished in Zurich with a commitment to continue speaking at a senior level. A US official said they had a more productive exchange than in previous high-level meetings, whilst Chinese state media called the talks “candid” and “constructive”. SCMP, CGTN, 7 October

Biden and Xi agree to hold virtual summit this year. The agreement is a recognition by the Biden administration of the dangers of going a year into a presidential term without a formal meeting between the leaders of the world’s two largest economies. NYT, FT, The Guardian, RTHK, Bloomberg, 6 October

Congress is a major hurdle to Joe Biden’s reset on China relations. SCMP, 6 October

Taiwan says U.S. commitment is 'rock solid' after Biden remark on China's Xi. Taiwan’s Foreign Ministry said on Wednesday Washington had reassured them that its approach to the island had not changed, after seeking clarification on President Biden’s announcement that he and Chinese President Xi Jinping agreed to abide by the “Taiwan agreement.” Reuters, 6 October

Blinken urges China to halt ‘provocative’ actions toward Taiwan and act responsibly in Evergrande crisis. Reuters, SCMP, 7 October


Xi won’t attend G20 summit, according to Chinese officials. Chinese envoys to the G20 cited China’s COVID-19 protocols, which can include quarantine mandates for returning travellers, as the reason why Xi does not intend to go to the Rome summit. The Japan Times, 6 October

NATO head: China is not an enemy. Jens Stoltenberg, NATO’s Secretary-General, told Politico that China is not regarded as an adversary, and that it will be important to cooperate on issues such as climate change and arms control. Politico, 6 October

First Japan-UK submarine warfare exercise held. A first-of-its-kind joint exercise in Japanese waters saw two nations put each other’s navies through their paces in service of a ‘free and open Indo-Pacific’. SCMP, 6 October

New Port of Liverpool rail link as China demand soars. In February, shipping operator DKT Allseas launched a temporary sea route between China and Liverpool, which proved so popular it has increased sailings and has now added an inland freight rail link. LBN Daily, 6 October

IMF leaves head Georgieva’s fate up in the air after grilling. The IMF board said on Wednesday that it needed to hold more talks on allegations that embattled chief Kristalina Georgieva artificially boosted China’s ranking over the favourability of doing business in the country during her time at the World Bank. FT, 6 October

How little Lithuania dragged the EU into its showdown with China. Politico, 6 October

US blocks radioactive fuel to China amid nuclear weapons fears. The Times, 6 October

Economy & tech

Power crunch in China and India stokes global growth anxiety. Several leading China economists expect growth in the world’s second-largest economy to slow appreciably in the coming months, casting a pall over Asia’s economic prospects and raising the risk that inflationary pressures may ripple through the region. FT, 6 October

US demand for chip supply data from TSMC, Samsung, Apple, others sparks debate about true intentions in China. The US government’s request for supply chain information from chip firms, including Taiwan Semiconductor Manufacturing Co (TSMC), has triggered debate in China, where some see Washington’s latest effort to grapple with a global chip shortage as harmful to their country’s interests. SCMP, 6 October

South Korea’s global battery dominance raises supply chain risks. FT, 7 October

Xinjiang exports rattled by coronavirus outbreaks in Central Asia as risks from sanctions loom. SCMP, 6 October

China focus

Emotional Carrie Lam hails ‘new era,’ vows to bolster national security measures. Leader Carrie Lam proclaimed a “new era” for Hong Kong under the Beijing-drafted national security law on Wednesday, vowing to press ahead with the city’s locally-enacted security legislation and to strengthen law enforcement to tackle perceived threats. HKFP, The Japan Times, 6 October

Lam’s speech was aimed at Beijing and not Hongkongers, say democrats. HKFP, 6 October

Sichuan warned of a powerful earthquake. It was a false alarm. SixthTone, 6 October

Prada takes over a grocery store in Shanghai. SupChina, 6 October

Longer reads & opinion

What do China’s Taiwan intrusions mean? James Palmer. Foreign Policy, 6 October

As China stumbles, the West must ask: what if its rise is not inevitable? Jeremy Cliffe. New Statesman, 6 October

Changing China: How Xi's 'common prosperity' may impact the world. Karishma Vaswani. BBC, 6 October

Common prosperity did not fall from the sky. Bert Hofman. MERICS, 5 October

China’s unstable political economy. John Lee. WSJ, 6 October

Battery technology gives China an opening in electric vehicles. Henry Sanderson. FT, 7 October

Why Wall Street backs China despite Beijing's tighter grip. Li Yuan. NYT, 6 October

China's massive infrastructure initiative across Asia, Europe and Africa hits snags. Jackie Northam. NPR, 6 October

Why China is alienating the world. Peter Martin. Foreign Affairs, 6 October