China News - 8 June 2022
International
Pacific leaders reach crucial deal to restore political unity, as China’s interest in region accelerates. The deal, which was sealed after talks among key Pacific leaders in Fiji, restores unity for the Pacific Islands Forum at a crucial time, as China’s interest in the region has undergone an “uptick in tempo”, placing the region at the heart of a geopolitical tussle. The agreement will see Micronesian countries remain in the forum, rather than exit it as scheduled at the end of June. The Guardian, 8 June
Biden envoy to visit Marshall Islands as US concerns grow about China's Pacific push. CNBC, 8 June
Italy's PM Draghi vetoes technology transfer to China. Italy's prime minister has vetoed a transfer of technology and software to China in a deal involving industrial robot maker EFORT Intelligent Equipment, according to a Shanghai filing and a source close to the matter. Italy reserves to use anti-takeover legislation to ward off undesired bids in industries deemed of strategic importance. Reuters, 7 June
Lithuania minister urges EU countries to leave China's '17+1' bloc. Gabrielius Landsbergis told Nikkei Asia on Tuesday that the framework, which Beijing values as a cornerstone of its Belt and Road Initiative influence in the region, has not been beneficial for its members. Lithuania left the bloc in May 2021. "None of them can actually pinpoint any benefit of being in the format," he said. Nikkei Asia, 7 June
Solar energy to be beamed back to Earth from space by 2028. China has accelerated its ambitious plans to build the world’s first solar power plant in space, aiming to launch two years ahead of schedule in 2028. Such technology could become a key tool in helping nations minimise carbon emissions and reach climate change targets. The Telegraph, 7 June
Cambodia and China deny naval base scheme as Australian PM voices concern. Cambodia says the facilities at Ream naval base will not be for the exclusive use of the Chinese military, while Beijing denounces ‘malicious conjecture’. The Guardian, 8 June
Taiwan on agenda at Shangri-La Dialogue as China, US defence chiefs to come face to face. SCMP, 8 June
Economy & tech
TikTok Shop’s troubled UK expansion: staff exodus and culture clash. A culture clash between TikTok’s Chinese owners and some of its London employees has triggered a staff exodus and complaints about an aggressive corporate ethos that runs counter to typical working practices in the UK. The friction has centred on the social media company’s e-commerce initiative, TikTok Shop, which launched in the UK in October. FT, 8 June
Taiwan's TSMC says no plans for now to build factories in Europe. The remarks come amid efforts by the European Union to encourage Taiwanese firms to manufacture chips there. In February, the EU unveiled the European Chips Act, with the bloc mentioning Taiwan as one of the "like-minded partners" Europe would like to work with. Reuters, 8 June
ASML to expand China staff 14% as Covid disruptions ease. The Dutch firm, whose machines are indispensable for making advanced semiconductors, is hiring more than 200 staff in China this year to keep up with growth in the country. Beijing sees its chipmaking tools as crucial in a long-term contest with Washington for tech supremacy. Bloomberg, 7 June
Nike to end its Run Club app in China in the latest retreat by a Western brand. ABC, 8 June
Beijing's drive for looser lending raises fears of bank margin squeeze. Reuters, 8 June
China focus
China encourages public to help with national security with cash for tip-offs. The Ministry of State Security is offering rewards of more than US$15,000 for citizens who report actions deemed a threat to national security, as the ruling Communist Party ramps up law enforcement ahead of its twice-a-decade national congress. The Guardian, 8 June
Hundreds of Chinese students take ‘Gaokao’ from quarantine sites. A record 11.9 million students are appearing for this year’s college entrance exam. Some students have to travel from locked-down areas to testing sites in special vehicles, while others might be isolated for the exam. Sixth Tone, 7 June
Long reads & opinion
China’s growth miracle increasingly looks as if it’s coming to an end. George Magnus. The Times, 8 June
Ukraine war highlights stakes of Chinese attack on Taiwan. Beijing’s threat to Taiwan will loom over Asia’s top security conference this weekend. Stuart Lau. Politico, 7 June
China’s risky revival of Mao-era grassroots mobilisation methods. Mass mobilisation has been key to Beijing’s pandemic strategy, but its continuation is undermining effective governance. Dan Macklin. The Diplomat, 7 June
The Future of Open Source Intelligence for UK National Security. RUSI, 7 June
Event: Can the UK stay scientifically competitive in a multipolar world? A discussion tomorrow, 9 June, hosted by Onward featuring Tom Tugendhat MP and Jeremy Quin MP. Details here.