China News - 9 March 2023
International
Australia’s nuclear subs will use a UK design to counter China. Australia’s new fleet of nuclear-powered submarines will be based on a modified British design with US parts and upgrades, Bloomberg reported, as the three countries press ahead with the AUKUS security partnership seen as an effort to counter China. Rishi Sunak will travel to the US next week to announce the first phase of the AUKUS sub plan, with Britain set to play a bigger role than envisaged 18 months ago. Bloomberg, 8 March
Xi Jinping tells defence delegation new policy crucial for stronger army and nation. “Consolidating and enhancing integrated national strategies and strategic capabilities has profound significance in advancing the great rejuvenation of the Chinese nation and more quickly elevating the armed forces to world-class standards”, said Xi during the first session of the 14th National People's Congress. Xinhua, The Independent, 8 March
China weighs 'emergency' fast track for laws as Taiwan tensions mount. Nikkei Asia, 9 March
Matt Hancock Covid memoirs censored over Wuhan lab leak comments. Matt Hancock was censored by the Cabinet Office over his concerns that the Covid-19 pandemic began with a lab leak in Wuhan, the Lockdown Files reveals. The former health secretary was told to tone down claims in his book because the Government feared it would "cause problems" with China. The Telegraph, 8 March
Chinese firm got Covid contract despite trying to hack NHS data, minister says. The BGI Group was making multiple attempts every week to “hack” into Genomics England in 2014, George Freeman, a Cabinet Office minister, revealed to MPs, and is said to remain a “danger”. Several hours after the minister’s comments, government sources sought to backtrack on the claims. The Guardian, 8 March
TikTok unveils European data security plan amid calls for US ban. The plan, known as Project Clover, involves user data being stored on servers in Ireland and Norway at an annual cost of €1.2bn, while any data transfers outside Europe will be vetted by a third-party IT company. FBI director Chris Wray told the Senate Intelligence Committee on Wednesday that the Chinese government has the ability to control the software on millions of devices by virtue of its relationship with TikTok's owner, ByteDance. The Guardian, 8 March
US, EU to start trade negotiations on minerals. The US and EU are moving forward with crafting a trade agreement focused on critical minerals, with President Biden and European Commission President Ursula von der Leyen expected to discuss on Friday the plan to reduce their dependence on China. WSJ, 9 March
Oscars 2023: Petition calls for presenter Donnie Yen's removal over China remarks. Tens of thousands of people have signed a petition to remove Hong Kong actor Donnie Yen as an Oscars presenter after he called the 2019 Hong Kong protests a “riot”. BBC, 9 March
Taiwan to allow more China flights in show of goodwill. Reuters, 9 March
Scientific collaboration between China and US key to tackling climate change, experts say. SCMP, 9 March
Economy & tech
Dutch to restrict semiconductor tech exports to China, joining US effort. The Dutch government has said it will impose export restrictions on the “most advanced” semiconductor technology, giving the first public details of the deal that The Hague and Tokyo struck with the US to limit sales to China. Companies will have to apply for licences to export this technology, Netherlands’ trade minister wrote to parliament. Reuters, 8 March
Chinese AI groups use cloud services to evade US chip export controls. FT, 9 March
China’s new way to control its biggest companies: Golden Shares. The CCP is moving away from a public battle with some of the country’s biggest companies. Instead, various levels of government are taking stakes in the private companies that have long driven Chinese innovation and job creation. WSJ, 8 March
China’s weak inflation eases pressure on global prices. China’s consumer and producer prices remained subdued in February as food and commodities costs eased, suggesting the country’s reopening won’t be adding to global inflation pressures. Bloomberg, 9 March
Apple to make India its own region, using what it ‘learned in China’ to scale. Apple is reshuffling management of its international businesses to put a bigger focus on India, according to people with knowledge of the matter. SCMP, 9 March
Arm move ‘humiliates financial watchdog and London’, say MPs.The Times, 9 March
VW pauses on Europe battery plants, awaiting response to US Inflation Reduction Act. Automotive News, 8 March
Long reads & opinion
Discursive statecraft: China’s information operations. How and why does China use information operations to shape global narratives? Hannah Bailey. Council on Geostrategy, 8 March
Britain needs to decide what it wants to be good at. Sunak’s government is suspicious of industrial policy but it needs to focus on sectors where the UK has a global role. Tej Parikh. FT, 8 March
The quick and easy guide for countries resisting Chinese trade coercion. Australia and Lithuania have shown that finding new export markets is much faster than WTO litigation. Alan Beattie. FT, 9 March
Why China has sharpened its anti-American rhetoric. James Palmer. Foreign Policy, 9 March