CRG Weekly: Wind power, Cyber Security Strategy, EU-China WTO dispute
News from the China Research Group
Following the release of new data from the Higher Education Statistics Agency (Hesa), The Times revealed that the number of new Chinese students enrolling at British universities fell for the first time last year, while soaring numbers from India came over to study.
CRG co-chair Tom Tugendhat MP commented: “It’s important that our universities are beginning to diversify international student recruitment, instead of relying on one authoritarian country.”
China overtakes UK as world's largest offshore wind power provide
Energy policy has been front and centre this week, thanks to rising gas prices and the prospect of sanctions against Russia. For Britain, offshore wind and nuclear power will be crucial - and China is playing a role in both.
The UK used to be the biggest offshore wind power in the world, with about 11GW of capacity, and plans to hit 40GW by the end of the decade. New IEA statistics this week show China added 16GW of capacity in 2021, or more than the rest of the world had managed in all of the last five years.
China's massive expansion in wind power capacity bodes well for the climate. This news came during a week that saw China’s State Council announce a comprehensive plan for energy conservation and emission reduction as part of the national 14th five-year plan, calling for China’s energy intensity to drop by 13.5 per cent by 2025.
But huge expansion also creates economies of scale for domestic companies. While wind power is a more geographically fragmented industry than solar, The Wire China has reported that some European companies are already getting nervous about the prospect of being undercut by aggressive pricing.
It was also reported this week that the UK Government has pledged £100m for Sizewell C, the UK's proposed 3.2GW nuclear plant in Suffolk. The Government is reported to be finding ways to replace CGN's 20% stake in the Sizewell project, solidifying a position against allowing Chinese companies to play a role in critical energy infrastructure. Will that apply to Chinese wind turbines and solar panels too?
Julia Pamilih
In brief
The Government unveiled its first ever Cyber Security Strategy, including the creation of a Cyber Coordination Centre, based in the Cabinet Office, “which will transform how data and cyber intelligence is shared.” It will be backed by £37.8 million invested to help local authorities boost their cyber resilience.
The EU launched a case against China at the World Trade Organization over its de facto ban on exports from Lithuania in a dispute over Taiwan. Meanwhile, Slovenia became the latest EU nation to be hit by Chinese trade sanctions after Prime Minister Janez Jansa promised to build closer ties with Taiwan.
In a call with US Secretary of State Antony Blinken, Chinese Foreign Minister Wang Yi said that all parties involved in the Ukraine issue should refrain from actions that stir tensions and warned the US to 'stop playing with fire' in Taiwan. China sent 39 military aircraft into Taiwan's air defense identification zone (ADIZ) last Sunday, prompting UK Prime Minister Boris Johnson to call for a peace treaty and constructive dialogue.
The new Trade Remedies Authority has launched a review into whether the UK should drop anti-dumping sanctions against Chinese steel producers. Sanctions were put in place when the UK was a member of the EU and when the dumping of cheap steel from China hit domestic producers such as the Port Talbot facilities of Tata Steel and British Steel’s Scunthorpe plant.
Embattled real estate developer Evergrande sought more time from its offshore bondholders to work on a debt restructuring plan. Los Angeles-based asset manager Oaktree has a secured loan to one of Evergrande’s most-prized projects in mainland China - a resort on the Yellow Sea coast called “Venice” - that would allow it to take control of the land in the event of a default, according to a letter to investors.
The Federal Communications Commission (FCC) said it had voted unanimously to revoke authorisation for telecom giant China Unicom's American unit to operate in the US over "significant" national security and espionage concerns.
Beijing stepped up its preparations for the Winter Olympics as Covid restrictions were tightened in parts of capital. Residents of certain neighbourhoods are required to undergo daily Covid testing and are prohibited from leaving their residential complexes.
The Asia Securities Industry and Financial Markets Association (Asifma) wrote to Chinese regulators warning them that an overhaul of the regime for listing Chinese businesses overseas may deter them from advising on initial public offerings.
Honduras President-elect Xiomara Castro met Taiwan Vice President William Lai, expressing gratitude for the support Taiwan has provided. Honduras is one of only 14 countries with formal diplomatic relations with Chinese-claimed Taiwan.
Ecuador's President Guillermo Lasso said he will seek to untie oil output from debt and renegotiate $4.1 billion of Ecuador's debt to China with President Xi Jinping on his next trip to China.
Xi Jinping warned that China’s ambitious low-carbon goals should not come at the expense of energy and food security or the “normal life” of ordinary people.
The Cyberspace Administration of China instructed officials to sweep away “illegal content and information” and target celebrity fan groups, online abuse, money worship, child influencers and the homepages of media sites in an internet ‘purification’ campaign for lunar new year.
Chinese television dramas will display the nationalities of actors who have foreign citizenship in their credits, a move that could limit dual citizens' opportunities to appear on-screen.
Apple reclaimed the top smartphone seller spot in China for the first time in six years as biting US sanctions throttled shipments from rival Huawei.
The organisers of the Australian Open reversed a ban on T-shirts supporting Chinese tennis player Peng Shuai after a global outcry.
The British government announced it will recognise vaccine certificates from 16 further countries and territories at the border, including China and Mexico.
Weekend reads
The geopolitics of CPTPP enlargement. Three new applications to a Pacific-region trade deal are posing complex strategic choices and include a proxy battle between Washington and Beijing. Thitinan Pongsudhirak. GIS
Will China dominate the world of semiconductors? America and its allies are crafting rules to try to prevent it. The Economist
In pictures: Global SinoPhoto Awards 2021 winners. The annual international contest aims to showcase Chinese culture through high-quality, remarkable images. The Times
Podcasts
Politics and language: decoding the CCP. What is the purpose of official Party documents? Can they ever reveal division within the Party, or say anything new at all? Who are these words designed for? Rana Mitter and Bill Bishop discuss with Cindy Yu. The Spectator - Chinese Whispers
International investors in Chinese companies face growing risks. The FT's global China editor James Kynge and markets editor Katie Martin discuss the changing dynamics of investing in China and examine whether the opportunities to make money are worth the growing political risk. FT
China’s Wolf Warrior Diplomacy, Part 1. Why has China and its foreign ministry struggled to communicate with the world? ChinaTalk