Category Archives: China

UK considers tighter rules on investment in China after US clampdown

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Rishi Sunak mulls whether to follow US lead in restricting funding for advanced technologies

The British government is considering tightening rules on investment in China after the US president announced new measures aimed at limiting the dollars and expertise flowing into sensitive technologies in the country.

Joe Biden signed an executive order on Wednesday that authorises the US treasury secretary to prohibit or restrict US investments in Chinese entities in three sectors: semiconductors and microelectronics; quantum information technologies; and certain artificial intelligence systems.

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Pro-democracy advocate says Australia should prepare to lay future sanctions against Hong Kong officials

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Australian lawyer and China bounty target Kevin Yam still believes it is important to pursue diplomacy with Beijing

An Australian citizen who the Hong Kong authorities have vowed to “pursue for life” has risked further ire from Beijing by calling on the Australian government to consider future sanctions against Chinese officials.

Kevin Yam, one of eight overseas-based pro-democracy advocates accused of “encouraging sanctions … to destroy Hong Kong”, said the city’s descent into increasingly repressive rule had been “gut-wrenching”.

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Lotus produces record 2,200 sports cars in first half of 2023

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British carmaker also gearing up for sales of new Eletre electric SUV under Chinese owner Geely’s expansion plans

The British carmaker Lotus produced a record number of sports cars in the first half of 2023, as it gears up for a huge push behind sales of a new electric SUV under its Chinese owners’ expansion plans.

Lotus, which marked its 75th anniversary this year, produced 2,200 vehicles in the first six months of the year at its factory in a former second world war bomber factory at Hethel in Norfolk.

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Biden bans range of US high tech investments in China citing national security risk

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The order – to be implemented next year – restricts investments in semiconductors and microelectronics, quantum tech and AI

Joe Biden on Wednesday signed an executive order that will narrowly prohibit certain US investments in sensitive technology in China and require government notification of funding in other tech sectors.

The long-awaited order authorises the US treasury secretary to prohibit or restrict certain US investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems.

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China’s economy is struggling but fears of sustained deflation are premature

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Trade with rest of world is shrinking and youth unemployment is at 20% but state interventions are expected

China’s economy is struggling. The recovery after the lifting of Covid-19 restrictions is faltering. Its trade with the rest of the world is shrinking. A decade-long boom in house prices has come to an end.

The most obvious manifestation of the troubles besetting the world’s second biggest economy is that China is now officially in deflation. In the US, the UK and the eurozone, prices are rising – albeit not quite as fast as they were a few months ago – but in China they are actually falling.

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In previous downturns the world turned to China as an engine of growth – this time that driver may not be there

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What might Chinese deflation mean for interest rates, commodity prices and even EV exports outside China?

When Australia’s central bank released its quarterly economic update last week, China’s “uncertain” economic outlook topped a list of domestic worries for Australia.

The International Monetary Fund too singled out China in its latest world economic outlook as among the “downside” tilts to its balance of risks.

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US and Beijing spar over shipwreck-turned-military outpost

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Vessel becomes potential flashpoint as Beijing orders Philippines to remove wreck housing marines in South China Sea

An international row is growing between the Philippines, the US and China over a rusting ship that has been turned into a crucial military outpost in the South China Sea.

The dilapidated second world war-era ship was deliberately run aground on a tiny reef in the South China Sea in 1999 by the Philippines, and a small contingent of troops continue to stay on board to stake the country’s claim in the highly disputed water.

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Chinese economy slips into deflation as recovery falters and demand slows

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Consumer price inflation data shows prices fell by 0.3% year on year in July

China’s economy has fallen into deflation after consumer prices fell year on year last month for the first time in more than two years, official data shows, as slowing domestic spending weighs on the country’s post-Covid economic recovery.

The consumer price index, the main gauge of inflation, fell 0.3% in July, the National Bureau of Statistics of China (NBS) said, having flatlined in June. A survey of analysts had anticipated a 0.4% year-on-year decline.

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China-Philippines dispute could escalate into superpower conflict, say analysts

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Expert warns of ‘significant escalatory potential’ after Chinese coastguards used water cannon on Philippine boat

A territorial dispute between China and the US-aligned Philippines is at increasingly high risk of escalating into a conflict involving the two superpowers, analysts have said, after Chinese coastguards used a water cannon on a Philippine boat.

Global concern about China’s naval activities is growing as the country expands and modernises its military, and shows increasing aggression in its claims over the South China Sea and Taiwan. Joint drills with Russia – during which a flotilla sailed near Alaska this weekend – have also heightened concern over military coordination between Beijing and Moscow.

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Australia warns of economic weakness in Pacific as it outlines development goals – without mentioning China

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Government updates development policy for the first time in a decade amid rising debt levels and competition with China for influence

Australian officials have sounded the alarm about rising debt levels and economic “fragility” among Pacific countries amid increasing competition with China for influence.

On Tuesday the Australian government will publish the first update of its international development policy in a decade, with a focus on the Pacific, south-east Asia and south Asia.

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Chinese soldiers pledge to sacrifice their lives in documentary on Taiwan invasion

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‘Chasing Dreams’, an eight-part series aired on state TV, features testimony from dozens of soldiers

China has released a new documentary about the army’s preparations to attack Taiwan, showcasing soldiers pledging to give up their lives if needed, as Beijing continues to ramp up its rhetoric against the self-ruled island.

“Chasing Dreams”, an eight-part series aired by state broadcaster CCTV last week to mark the 96th anniversary of the People Liberation Army (PLA), features military drills and testimonials by dozens of soldiers, of which several express their willingness to die in a potential attack against Taiwan.

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China floods: at least 14 killed after torrential rain in north-east

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Clean-up operations continue after rainfall destroys infrastructure and floods entire districts in aftermath of Typhoon Doksuri

At least 14 people are dead after torrential rain hit China’s north-eastern Jilin province, state media has reported, in the latest fatalities from more than a week of weather-related disasters across the country.

Thousands of troops have been sent into affected areas of Jilin and neighbouring Heilongjiang to assist with the flood response, evacuations, distributing supplies and fixing damaged roads. State media outlet Xinhua said about 2,000 soldiers and 5,000 members of the People’s Armed Police paramilitary force had been deployed.

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US dispatches warships after China and Russia send naval patrol near Alaska

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Combined naval patrol appeared to be largest such flotilla to approach US territory and ‘highly provocative’, expert says

The US dispatched four navy warships as well as a reconnaissance airplane after multiple Chinese and Russian military vessels carried out a joint naval patrol near Alaska last week.

The combined naval patrol, which the Wall Street Journal first reported, appeared to be the largest such flotilla to approach US territory, according to experts that spoke to the outlet.

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China ‘backs further Ukraine peace talks’ after Saudi Arabia summit

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Senior officials from about 40 countries met in Jeddah in attempt to draft key principles on ending war

China is said to be in support of a third round of talks to find a framework for peace in Ukraine after a meeting of senior officials from about 40 countries in Saudi Arabia over the weekend.

The two-day summit in Jeddah was the second of its kind, after a similar forum in Copenhagen earlier this summer, and aims to draft key principles on how to end Russia’s war in Ukraine.

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Philippines accuses China of water cannon attack in Spratly Islands

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Latest in long history of nautical intimidations by Beijing, which lays unrecognised claim to almost all of the South China Sea

The Philippines has accused China’s coast guard of firing water cannon at its vessels in the disputed South China Sea, describing it as illegal and dangerous.

The Philippine coast guard said its vessels had been carrying food, water, fuel and other supplies for Filipino military personnel stationed at Second Thomas Shoal in the Spratly Islands on Saturday.

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China to relax internal migration rules to kickstart economy

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Changes to hukou urban quotas will offer easier access to education, healthcare and other benefits

China is to relax its rules on internal migration, making it easier for people to settle in small cities in an attempt to boost its ailing economy and spur growth, the government has announced.

The ministry of public security (MPS) announced plans to lower the bar for obtaining an urban hukou, or household registration. Beijing wants local governments to cancel hukou restrictions in cities with fewer than 3 million people, and relax the restrictions for cities with 3-5 million people, the MPS said.

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Anger in China over plan to use cities as ‘moat’ to save Beijing from floods

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Communist party secretary for Hebei made comments after visiting flood-hit areas earlier this week

Chinese social media users have reacted angrily to comments from a local Communist party official suggesting that the city of Zhuozhou and other flood-hit areas near Beijing should be used as a “moat for the capital”.

Ni Yuefeng, the Communist party secretary for Hebei, a province that borders the capital on three sides, made the comments after visiting flooded areas earlier this week. Typhoon Doksuri has ripped through north-east China, destroying homes and forcing hundreds of thousands of people to evacuate.

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Weather tracker: Typhoons Talim and Doksuri batter China

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Thousands of people evacuated from homes in Beijing, while South America swelters during heatwave

China has been battered by two typhoons in recent weeks that have caused severe flooding across the east coast. Typhoon Talim hit the south on 17 July, with gusts of 85mph (137km/h), according to the Guangdong weather bureau.

Days later, on 28 July, Typhoon Doksuri struck Fujian province on China’s south-eastern coast with gusts above 100mph.

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New Zealand must boost military spending as Pacific power struggle intensifies, review finds

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Defence minister launches first security strategy warning New Zealand faces greatest geostrategic challenges in decades

New Zealand needs to spend more on its military and strengthen ties with countries in the Indo-Pacific to help meet the challenges of great power rivalry and climate change, the government said amid an ongoing defence review.

Launching the country’s first ever national security strategy, defence minister Andrew Little said New Zealand faced more geostrategic challenges than it had in decades.

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US navy sailors arrested on charges of passing sensitive material to China

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Jinchao Wei, 22, and Wenheng Zhao, 26, accused in separate cases of ‘violating commitments they made to protect the United States’

Two US navy sailors have been arrested on charges of handing over sensitive national security material to China, US officials said on Thursday.

Jinchao Wei, a 22-year-old sailor assigned to the San Diego-based USS Essex, was arrested on Wednesday on a charge related to espionage involving conspiracy to sending national defense information to Chinese officials. In a separate case, the justice department charged Wenheng Zhao, 26, for allegedly collecting bribes in exchange for giving sensitive US military photos and videos to a Chinese intelligence officer.

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