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Oct 25, 2022Read in browser | Subscribe
Xi rises, Chinese stocks fall

Source: Twitter feed of Bloomberg's Michael McDonough (@M_McDonough)

Oct 24 | WSJ
 

Shares in Chinese companies crash after Xi Jinping stacks party with allies

U.S.-listed Chinese stocks plunged to their lowest level in nearly a decade, losing tens of billions of dollars in market value on Monday, one day after President Xi Jinping consolidated his control over the ruling Communist Party, stacking the leadership ranks with loyalists and clinching a third term. The American depository receipts of the five largest Chinese stocks lost more than $52 billion in combined market value. More

More on Our Radar

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Happenings on the Hill

China-Related Legislation Introduced in the House

 

H.R.9162 | sponsored by Rep. Brad Wenstrup (R-OH)
 

Stop Our Scourge (SOS) Act of 2022

A bill to direct the Secretary of Homeland Security to designate illicit fentanyl as a weapon of mass destruction, citing China as a major source of fentanyl eventually arriving in the United States.
 

H.Res.1445 | sponsored by Rep. Randy Weber (R-TX)
 

Petroleum and National Security

A resolution recognizing that the irresponsible withdrawal of petroleum products from the Strategic Petroleum Reserve is a threat to the security of the United States, noting a sale of 20 million barrels of oil to China.


Congressional Calendar

 

The House and Senate are not in session.

Administration

 

Oct 19 | Reuters
 

Biden awards $2.8 billion to boost U.S. minerals output for EV batteries

To wean the country off supplies from China and combat its "unfair subsidies and trade practices," twenty U.S.-based manufacturing and processing companies will receive U.S. Energy Department grants to domestically mine lithium, graphite and nickel, build the first large-scale U.S. lithium processing facility, construct facilities to build cathodes and other battery parts, and expand battery recycling. More
 

Oct 19 | FT
 

Opinion: Containing China is Biden's explicit goal

President Biden's technological decoupling marks a final break with decades of U.S. foreign policy that assumed China's global integration would tame its rise as a great power. By Edward LuceMore

More News

U.S. Multilateralism

 

Oct 25 | State Department
 

Deputy Sec. Sherman's meets with ROK First Vice Foreign Minister

Deputy Secretary of State Wendy Sherman met today in Tokyo with Republic of Korea (ROK) First Vice Foreign Minister Cho Hyun-dong. Noting the strength of U.S.-ROK economic ties, the Deputy Secretary and First Vice Foreign Minister highlighted the importance of working together to improve supply chain resilience and strengthen the economic security of both nations. More


Oct 25 | Kyodo News
 

Japan, U.S. diplomats vow close cooperation in addressing China

Vice Foreign Minister Takeo Mori and Deputy Secretary of State Wendy Sherman also pledged to continue to work toward the complete denuclearization of North Korea under U.N. Security Council resolutions, including in a trilateral cooperation framework with South Korea. More


Oct 18 | Reuters
 

U.S. Treasury's Adeyemo heads to APEC meeting with focus on trade, 'resilience'

Throughout his trip, the department said Adeyemo would reaffirm the U.S. commitment to the Asia-Pacific region, while highlighting initiatives such as the Indo-Pacific Economic Framework. The newly relaunched G7 Partnership for Global Infrastructure and Investment and U.S. efforts to build up supply chains with trusted partners were also on the agenda. More  

Military & Maritime

 

Oct 25 | Reuters
 

Australia arrests former U.S. military pilot who worked in China

The arrest came the same week Britain warned dozens of former military pilots to stop working in China or face prosecution on national security grounds under new laws. Australia is also investigating reports some of its former fighter pilots have been approached to work in China. More
 

Oct 25 | Bloomberg
 

Germany's Scholz approves Cosco deal at Hamburg Port

German Chancellor Olaf Scholz is close to reaching a compromise over a disputed sale of a stake in a Hamburg container terminal to China's state-owned shipping conglomerate Cosco. The chancellor agreed to settle for a smaller deal that would give the company less sway after six members of his cabinet – including ministers of the economy, foreign affairs, finance, transport and defense – voiced their opposition. More
 

Oct 20 | WSJ
 

China's military is catching up. Is it ready for battle?

The true test of PLA personnel will be when they're called on to fight. Some American military strategists and analysts say China might be a generation away from having the ability and training in its military that could effectively match those of the U.S. More  

Taiwan

 

Oct 20 | FT
 

Navy chief warns China could invade Taiwan before 2024

The debate in the U.S. about when China might invade Taiwan has intensified since Admiral Philip Davidson, then-head of Indo-Pacific Command, told Congress last year that the Chinese military could take action against Taiwan before 2027. More


Oct 19 | Reuters
 

U.S. considering joint weapons production with Taiwan

Asked about the effort, a U.S. State Department spokesperson said: "The United States is looking at all options to ensure the rapid transfer of defensive capabilities to Taiwan." Possibilities would include the United States providing technology to produce weapons in Taiwan, or producing the weapons in the United States using Taiwanese parts. More
 

Intelligence & Espionage

 

Oct 25 | The Diplomat
 

Chinese officers charged in plot to obstruct U.S. Huawei probe

Two men suspected of being Chinese intelligence officers have been charged with attempting to obstruct the U.S. criminal investigation and prosecution of Chinese tech giant Huawei. Federal investigators also revealed charges against Chinese agents attempting to forcibly repatriate Chinese citizens living in the United States. More


Oct 25 | Bloomberg
 

Chinese hackers exploit gaps in intelligence sharing, senator says

Chinese hackers are more easily able to steal personal data because of a lack of intelligence sharing between US spy agencies and the Federal Trade Commission (FTC), Senator Ron Wyden (D-OR) warned in a letter to the heads of national intelligence and the FTC. More
 

Oct 21 | The Verge
 

TikTok denies report of a plan to track specific US citizens using its app

In a series of tweets, TikTok accused Forbes of leaving off a vital part of its statement, which says that “TikTok does not collect precise GPS location information from US users,” despite the article's claims that its parent company ByteDance considered obtaining “location data from U.S. users' devices.” More

Tech Competition

 

Oct 21 | Bloomberg
 

U.S. eyes expanding China tech ban

The potential plans, which are in an early stage, are focused on the still-experimental field of quantum computing, as well as artificial intelligence software. Industry experts are weighing in on how to set the parameters of the restrictions on this nascent technology. More
 

Oct 23 | WSJ
 

How U.S. uses supply chain sway to throttle China's chip development

The new U.S. restrictions on exports of chips and related items to China are aimed at using America's strength in critical areas of the semiconductor supply chain to weaken China's advanced-chip development. More


Oct 20 | The Hill
 

China's retaliation playbook can't meet the U.S. export control challenge

New semiconductor export controls the Biden administration announced on Oct. 7 present China with an unprecedented industrial policy challenge. The standard Chinese playbook for retaliating against foreign governments provides no obvious response, so here are China's current retaliation options and what we can expect. More
 

Business & Investment

 

Oct 20 | WSJ
 

New guidelines could signal tougher approach from CFIUS

The enforcement guidelines are a first for the Committee on Foreign Investment in the U.S. which previously had no written guidelines on the topic. The interagency committee is run by the U.S. Treasury Department and reviews foreign investments in U.S. companies and real estate, and can advise the president to block or unwind a deal. More  

Trade & Commerce

 

Oct 20 | PIIE
 

Four years into the trade war, are the U.S. and China decoupling?

Even if policymakers foresee long-run benefits in disentangling the two economies, their choices come with immediate costs – including product shortages, as supply chains struggle to adjust, and inflation, as companies find it expensive to establish new suppliers. Firms and ultimately consumers need to prepare to pay the price for the new policy-induced reality. More
 

Oct 20 | JD Supra
 

USTR invites comments in review of Section 301 duties on Chinese goods

On October 12, 2022, the Office of the U.S. Trade Representative announced that it is seeking public comments in connection with its review of Section 301 duties on Chinese goods. As a result of the review, USTR could decide to alter the product-targeting of the tariffs, removing or adding products or categories of products. More
 

Diplomacy

 

Oct 24 | Nikkei Asia
 

China to tap Wang Yi as top dog for 'wolf warrior' diplomacy

With China's leadership reshuffle, longtime foreign-policy hand Wang Yi is seen snagging a promotion to the coveted role of top diplomat. Qin Gang, the Chinese ambassador to the U.S., has been floated as a possible successor to Wang as foreign minister. More


Oct 20 | NYT
 

How Taiwan's ambitious diplomacy aims to keep the island safe

Taiwan's foreign ministry budget released in September included a sizable increase because it expects to host 2,368 meetings with foreign guests in 2023 — 304 more than this year. That translates to more than six meetings per day, every day of the year. More
 

20th Party Congress

 

Oct 24 | Reuters
 

U.S. takes note of China congress, says important to keep communications open

State Department spokesperson Ned Price told a regular briefing the party congress would not bring a change in the U.S. approach to China. More


Oct 23 | AP
 

China's Xi expands powers, promotes allies

President Xi Jinping increased his dominance Sunday when he was named to another term and promoted allies who support his vision of tighter control over society and the struggling economy. Party plans call for creating a prosperous society by mid-century and restoring China to its historic role as a political, economic and cultural leader. More


Oct 23 | AP
 

A look at the seven men slated to lead China's Communist Party

The new Politburo Standing Committee was unveiled over the weekend. With four newcomers and the exclusion of Premier Li Keqiang and Wang Yang, the top body is now firmly in President Xi's control. More  

Inside China

 

Oct 24 | PIIE
 

China has few options to revive lagging economic growth

COVID-19 outbreaks, hardships imposed by draconian public health mandates, and sliding property prices all threw shade on President Xi's big plans for a year of stability. Now slowing global demand for Chinese exports and continuing weakness in the property sector complicate the government's attempts to revive growth in the coming months. More  

Oct 20 | CNN
 

Under Xi Jinping, zero-Covid is accelerating China's surveillance state

China's advanced online ecosystem – run on mobile phone superapps and ubiquitous QR codes – has offered arguably unrivaled convenience for consumers to shop, dine and travel. Now, those technologies play a role in constraining daily life. More  

Xinjiang & Human Rights

 

Oct 20 | Bloomberg
 

U.S. ban on Xinjiang imports off to 'remarkably good start'

Four months into a sweeping ban on imports from China's Xinjiang region, the top US customs official is signaling confidence that companies are observing the embargo. More
 

Oct 20 | The Guardian
 

China using influencers to whitewash human rights abuses, report finds

The Chinese Communist party is using social media influencers from troubled regions like Xinjiang, Tibet and Inner Mongolia to whitewash human rights abuses through an increasingly sophisticated propaganda campaign, a report has claimed. More
 

Oct 22 | Reuters
 

Vatican confirms renewal of contested accord with China on bishops' appointments

It was the second time the accord, which is still provisional, was extended for another two years since it was first reached in 2018. Critics, including Cardinal Joseph Zen, 90, the former archbishop of Hong Kong, have denounced it as a sell-out to the communist authorities. More
 

Hong Kong

 

Oct 25 | AP
 

Pro-democracy publisher Lai found guilty on fraud charges

Pro-democracy Hong Kong publisher Jimmy Lai was found guilty Tuesday on two fraud charges related to lease violations, the latest in a series of prosecutions apparently aimed at punishing him for his past activism. More
 

Oct 18 | Bloomberg
 

Hong Kong's new expat visas seek to stop talent drain

Hong Kong will grant a two-year visa to high earners who earned at least HK$2.5 million ($318,480) in the past year, as well as for graduates from the top-ranked universities. The city will also suspend the annual quota of its current program for skilled talent and extend the limit of stay for non-local graduates from one to two years. More  

Geopolitics

 

Oct 22 | Politico
 

China failed its Arctic ambitions in Greenland

In recent years, China's had no significant impact beyond the Russian Arctic, where it's also been met with limitations due to concerns over COVID-19 and EU sanctions related to the invasion of Ukraine. Nevertheless, security and foreign policy circles continue to assume China's presence in the Arctic is expanding — including in Greenland. More
 

Oct 21 | Axios
 

Saudis plot energy cooperation with China amid tensions with Biden

The Saudi energy minister Prince Abdulaziz bin Salman bin Abdulaziz held a video conference call with China's National Energy Administrator Zhang Jianhua last week. One of the key issues discussed was the oil market. More
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