China News - 8 November 2022
International
Canadian intelligence identifies Chinese state-backed interference in 2019 election. Canadian intelligence officials have warned Prime Minister Justin Trudeau that China has allegedly been targeting Canada with a vast campaign of foreign interference, which includes funding a clandestine network of at least 11 federal candidates and Chinese operatives acting as campaign advisers in the 2019 election. Trudeau accused Beijing of playing "aggressive games" with democracies and of targeting Canadian institutions. Global News, BBC, 7 November
Chinese army recruits given training at Sandhurst. In the past five years, 31 Chinese citizens have received training at elite British military academies, such as Sandhurst and RAF Cranwell. James Heappey, the armed forces minister, said nothing was taught that was “above the threshold of the Official Secrets Act”. Beijing to Britain’s Sam Hogg provides a list of the courses attended by Chinese personnel, many of whom have joined the People’s Liberation Army. The Times, 8 November
Lithuania opens trade office in Taiwan as ties with China sour. The opening on Monday comes a year after the government in Taipei opened an office in Lithuania’s capital. Taiwan, the world's biggest supplier of semiconductors, will invest more than 10 million euros towards chip production in Lithuania, the head of the Taiwanese representative office in Vilnius said on Monday. Bloomberg, Reuters, 7 November
China pumps out more pollution in eight years than UK since Industrial Revolution. Between 1750 and 2020, the UK emitted 78 billion tonnes of carbon dioxide into the atmosphere, compared with China’s emissions of 80 billion tonnes since 2013. Xi Jinping will be absent from the COP27 summit this week, despite the global battle against climate change hinging heavily on the biggest emitter kicking its fossil fuel addiction. The Telegraph, 7 November
Xi Jinping plans visit to Saudi Arabia amid global reshuffling. Officials are completing the details for a December summit between Xi and Saudi Crown Prince Mohammed bin Salman that would underline Beijing’s growing influence in the Middle East. Xi is expected to meet the leaders of other Persian Gulf and Arab countries in a visit that will likely feature agreements demonstrating the countries’ deepening partnership.WSJ, 7 November
Kenya discloses part of secret railway contract with China. The public disclosure of a 2014 loan agreement for a cross-country train fulfilled a campaign vow by President William Ruto and revealed China’s tough terms. NYT, 8 November
China lashes out at visit by UK trade minister to Taiwan. AP, 7 November
Economy & tech
UK’s first large-scale merchant lithium refinery announced. Green Lithium has unveiled Teesport in Middlesbrough as the site for their forthcoming lithium refinery, with the UK government backing the company with a grant of over £600,000 through the Automotive Transformation Fund. 89% of the world’s lithium processing currently takes place in East Asia. Gov.uk, 7 November
China banks are now valued like US peers at depths of 2008 crash. Concerns grow that bad debt will pile up at China’s mega banks as investors demand a 26% country risk premium. Bloomberg, 8 November
China's super-rich see fortunes plunge as economy slows. The Hurun Rich list, which ranks China's wealthiest people with a minimum net worth of 5 billion yuan ($692 million), said only 1,305 people made the mark this year, down 11% from last year. Reuters, 8 November
Hong Kong takes on Singapore for Asia’s crypto crown. The city is attractive to investors from mainland China, where digital asset trading remains banned. FT, 8 November
Tech war: Nvidia offers new GPU chip tailored for Chinese market to comply with US export regulations. SCMP, 8 November
China focus
China poised to cut economic reform commitment from lawmaking. China is poised to remove calls for economic reform and opening up from upcoming legislation, a draft shows, replacing them with a reference to President Xi Jinping's signature ideology in a move seen pushing market-friendly policies lower on the agenda. Nikkei Asia, 8 November
Nucleic acid testing 'now accounts for 1.3% of China’s GDP'. A report suggests that in China’s first- and second-tier cities, the total cost of implementing normalisd nucleic acid testing has reached about RMB1.7 trillion per year – accounting for around 1.3% of China’s GDP. That’s Mags, 7 November
Guangzhou launches mass testing in 9 districts as Covid cases top 2,000. SCMP, 8 November
Long reads & opinion
Taiwan prepares to be invaded. Ben Rhodes. The Atlantic, 7 November
TikTok’s ties to China: why concerns over your data are here to stay. Dan Milmo. The Guardian, 8 November
Apple’s bargain with Beijing: access to China’s factories — and consumers. iPhone maker now more profitable than local tech giants but is vulnerable to supply shocks. Patrick McGee and Ryan McMorrow. FT, 8 November
China’s business elite see the country that let them thrive slipping away. Li Yuan. NYT, 7 November