De Chinese Wouden, vrijdag 30 augustus: ASML, Sullivan treft Xi, Zhang, Wang
Het belangrijkste nieuws voor Nederland is dat volgens Bloomberg Den Haag de vergunningen van ASML voor het onderhoud van bestaande geavanceerde machines in China niet te verlengen. Dit komt na grote druk uit de Verenigde Staten om niet alleen de export van EUV- (de nieuwste techniek) en de meest geavanceerde DUV-machines aan banden te leggen. Washington wilde ook heel graag het onderhoud stoppen. Zonder continu onderhoud kunnen deze complexe apparaten namelijk niet draaien.
De laatste maanden kwam de helft van ASML’s verdiensten uit China. Er is daar grote vraag, maar Chinese halfgeleiderfabrikanten waren ook aan het hamsteren geslagen in afwachting van nieuwe maatregelen. Dankzij grote inspanningen kon men met de DUV-machines van ASML alsnog erg kleine chips maken – al was de efficiëntie van die processen niet duidelijk. Het wegvallen van onderhoud en reserveonderdelen heeft grote impact. De grens van het maximale wat China nog kan halen zal niet slechts bevroren worden, maar terug gaan vallen naar een lager niveau.
De Amerikaanse nationale veiligheidsadviseur Jake Sullivan was de afgelopen week voor het eerst in China voor gesprekken. Dit was een buitengewone productieve voortzetting van een dialoog met buitenlandse zaken-chef Wang Yi in Bangkok, Malta, Wenen en Washington DC. Deze keer trof Sullivan ook president Xi Jinping en hoogste militair Zhang Youxia.
De sectie over dit bezoek is erg lang, met veel readouts. Het belangrijkste van deze gesprekken waren dat ze plaatsvonden. Vooral het treffen met Zhang was een doorbraakje – Washington klaagde al langer dat de twee hoogste Chinese officieren moeilijk te spreken waren. Dat maakt dat de vorm van de dialoog en de zaken die de beide kanten willen aanstippen extra belangrijk zijn.
Het thema van de de Chinese kant is duidelijk: de VS hebben een verkeerde perceptie van China. Daarnaast komen als ‘rode lijnen’ steeds terug: Taiwan, politiek systeem en economische ontwikkeling. Peking klaagt dat de VS met wapenleveranties, mensenrechten en exportcontrolemaatregelen deze kernbelangen van China schaadt.
De Amerikaanse kant benadrukt het belang en nut van dialoog – misschien ook vooral voor het binnenlandse publiek. Daarnaast legde Sullivan vooral veel uit waarom de VS doet wat het doet.
Nederland en Europa 🇳🇱🇪🇺
The Netherlands plans to limit ASML’s ability to repair and maintain its semiconductor equipment in China, a potentially painful blow to Beijing’s efforts to develop a world-class chip industry – Bloomberg: ‘The government of Prime Minister Dick Schoof will likely not renew certain ASML licenses to service and provide spare parts in China when they expire at the end of this year, according to people familiar with the matter. The decision is expected to cover the company’s top-of-the-line deep ultraviolet lithography, or DUV, machines, said the people, asking not to be named discussing sensitive government decisions.’
‘Without ASML’s DUV gear, it will be increasingly difficult for Chinese technology champion Huawei Technologies Co. and its partner Semiconductor Manufacturing International Corp. to make breakthroughs in their current capability’ 🇳🇱
Antwoord op vragen van de leden Brekelmans, Becker, Erkens, Paternotte en Bamenga over ‘het bericht dat de nieuwe partij NL Plan steunt op organisaties verbonden aan de Chinese Communistische Partij’ – minister Judith Uitermark, Tweede Kamer der Staten-Generaal 🇳🇱
EU officials assail denial of access to trial of two Chinese human rights advocates – SCMP: ‘were detained last year on their way to meet EU officials in Beijing.’ 🇪🇺
Germany’s slow-motion move away from China – POLITICO Europe: ‘Perhaps the biggest shifts are taking place in the fields of security and defense. And the slowest? Germany’s powerful auto industry’ 🇩🇪
Taiwan’s Chunghwa Telecom 中華電信 takes first step into Europe with German subsidiary – Focus Taiwan 🇩🇪
City whistleblower wins £560,000 after being sacked over China spy concerns – FT: ‘was sacked after making a string of complaints to the UK financial regulator about the company, including allegations […] of the “issue of alleged Chinese espionage”’ 🇬🇧
Exclusive: Chinese embassy ‘pressured’ UK publisher to edit Taiwan reference in GCSE textbook – The Chaser News 🇬🇧
Chinese gang jailed for operating £55m money-laundering ring – The Guardian: ‘aimed at international university students seeking to bypass limits on the amount of cash that can be taken out of China.’ 🇬🇧
Russian authorities purchased Chinese Dongfeng armoured vehicles – Militarnyi: ‘A new armored vehicle from China was spotted in Moscow.’ 🇷🇺
Sullivan in China 🇺🇸🇨🇳
Sullivan meets Xi as wide-ranging China-US talks near end in Beijing – Reuters 🇺🇸
Remarks by APNSA Jake Sullivan in Press Conference | Beijing, People’s Republic of China – The White House: ‘Having the opportunity today to sit down with the CMC Vice Chairman, something that has not happened for a U.S. official in eight years, is itself significant’
‘It is likely that both President Biden and President Xi will be at APEC and the G20 later this year.’ 🇺🇸
MFA director-general Yang Tao’s briefing on US National Security Advisor Jake Sullivan’s visit to China – Xinhua: ‘President Xi emphasized the following.’
‘First, when China and the United States, two major countries, engage with each other, the No.1 issue is to develop a right strategic perception’
‘Second, in this changing and turbulent world, countries need solidarity and coordination, not division or confrontation.’
‘Third, China's commitment to the goal of a stable, healthy and sustainable China-U.S. relationship remains unchanged’
‘Wang [Yi] summed up the experience and lessons as “five keys”:
First, the key to keeping the China-U.S. relations to the right direction lies in the guidance and stewardship of the two presidents;
Second, the key to avoiding conflict and confrontation between China and the United States lies in abiding by the three joint communiques [i.e. Taiwan];
Third, the key to smooth interactions between China and the United States lies in treating each other as equals;
Fourth, the key to a steady and sustained China-U.S. relationship lies in cementing the popular foundation;
Fifth, the key to peaceful coexistence between China and the United States lies in developing a right perception.’
‘Taiwan, democracy and human rights, path and system, and right to development are the four red lines China has drawn in China-U.S. relations.’
Xí Jìnpíng 习近平 tells Jake Sullivan that China is committed to stable ties with US – SCMP: ‘On Thursday, Sullivan told Xi that Biden looked forward to another opportunity to communicate with the Chinese president.’ 🇺🇸
Readout of National Security Advisor Jake Sullivan’s meeting with President Xí Jìnpíng 习近平 of the People’s Republic of China – The White House: ‘Both sides welcomed ongoing efforts to maintain open lines of communication, including planning for a call between President Biden and President Xi in the coming weeks.’ 🇺🇸
Xi meets US national security advisor – Xinhua: ‘Xi stressed that when China and the United States, two major countries, engage with each other, the No. 1 issue is to develop a right strategic perception, and they need to first and foremost find a good answer to the overarching question: Are China and the United States rivals or partners?’ 🇨🇳
China’s most senior military official Zhāng Yòuxiá 张又侠 tells US’ Sullivan Taiwan is Beijing’s ‘uncrossable first red line’ – SCMP: ‘Other topics discussed in the meeting included Beijing’s support for Moscow and the crisis in Gaza.’ 🇺🇸
Readout of National Security Advisor Jake Sullivan’s meeting with Vice Chairman of the Central Military Commission Zhāng Yòuxiá 张又侠 of the People’s Republic of China – The White House: ‘Mr. Sullivan and Vice Chairman Zhang recognized the progress in sustained, regular military-military communications over the past ten months and planned to hold a theater commander telephone call in the near future.’ 🇺🇸
Senior Chinese military official meets Jake Sullivan – Xinhua: ‘He urged the U.S. side to correct its strategic perceptions of China and respect China's core interests.’ 🇨🇳
China and US pave way for Xi-Biden summit in Wang Yi-Jake Sullivan talks – SCMP: ‘The White House said the presidents of the two countries were expected to talk on the phone “in coming weeks”.’ 🇺🇸
Chinese and US officials discuss new round of talks between Biden and Xi – Reuters: ‘Both sides also agreed to hold video calls between their military theater commanders who hold responsibility for hot spots in the Indo-Pacific region’ 🇺🇸
Readout of National Security Advisor Jake Sullivan’s meeting with Chinese Communist Party Politburo Member, Director of the Office of the Foreign Affairs Commission, and Foreign Minister Wáng Yì 王毅 – The White House: ‘Mr. Sullivan emphasized that the United States will continue to take necessary actions to prevent advanced U.S. technologies from being used to undermine our national security, without unduly limiting trade or investment.’
‘Mr. Sullivan underscored the importance of maintaining peace and stability across the Taiwan Strait. He emphasized concerns about the PRC’s support for Russia’s defense industrial base and its impact on European and transatlantic security.’ 🇺🇸
Taiwan’s foreign ministry condemns Beijing‘s ‘false’ statement after US-China talks – Focus Taiwan 🇹🇼
Handel 🚗⚡️
China decides not to impose tariffs on EU brandy—for now – POLITICO Europe 🇪🇺
China’s BYD 比亚迪 expects overseas deliveries to account for almost half of total sales in the future, suggesting it will continue to set up global production hubs to overcome punishing tariffs – Bloomberg
Chinese electric car maker BYD 比亚迪’s relentless growth is squeezing out smaller rivals, with Li Auto 理想汽车 joining fellow upstart XPeng 小鹏 in releasing disappointing earnings – Bloomberg
EU new car sales flat in July as battery-electric slumps, industry body ACEA says – Reuters 🇪🇺
Chinas Frust auf Deutschlands Automarkt – FZ 🇩🇪
Toyota global output in July falls 0.6% on stiff price war in China – Kyodo News 🇯🇵
Tech War 💽💥
Apple starts making latest iPhones in India, accelerates push beyond China – Nikkei Asia 🇺🇸🇮🇳
China’s medical-device makers look overseas for exports to cure to ailments at home – SCMP
Zorgen voor Philips.
China invests CN¥ 43.5 billion [€5.5bn] in computing data centre project, official says – Reuters
Exclusive: US government funding yielded hundreds of patents for China-based researchers – Reuters 🇺🇸
China working to poach Taiwan’s high-tech talent and steal core technologies, MAC says – Focus Taiwan
Kantelpunt 🌏⏱️
China’s international use of renminbi surges to record highs – FT: ‘In July, 53 per cent of China’s inbound and outbound transactions used the Chinese currency, […], up from about 40 per cent for the same month in 2021.’
Why South Africans are flocking to a Chinese hospital ship – BBC News
Explainer: Is China’s barter trade experiment working as sanctions risk grows? – SCMP 🇷🇺
Weekend 🏖️📚
Longreads en achtergrond
After six years in China, our bureau chief says farewell – The Economist’s Chaguan: ‘Nothing worries Chaguan more than this ethno-nationalist drive. China is declaring its own citizens traitors if they question the party’s model of governance, and calling all foreign scrutiny a form of attack. More than ever, pluralism is seen as a security threat.’
When EV startups shut down, will their cars still work? – Rest of World: ‘As Chinese car owners brace for further consolidation of the country’s hypercompetitive EV market, the fact that many electric cars rely on cloud services — from smartphone controls to software updates — has raised concerns about the long-term serviceability of the vehicles.’
Shift in EU’s policy toward Taiwan – Justyna Szczudlik for Taipei Times 🇪🇺
Ryan and Righ want to get married in Taiwan — they can’t because of China’s same-sex marriage ban – The Guardian
Podcasts
The rise of Chinese Private Security Companies (PSCs and PMCs) – The Red Line 🍎
Recent Developments in Sino-Russian Relations: A Conversation with Dr. Elizabeth Wishnick – CSIS ChinaPower Podcast 🍎
China’s role in UN peacekeeping operations – CSIS Pekingology 🍎
The Documentary: Erasing Hong Kong – BBC World Service 🍎
Overige
China buitenland en defensie
Chinese officials struggle to build ties with Donald Trump’s campaign – FT: ‘While Cui [Tiankai] is viewed as a legitimate diplomat, he serves as an adviser to the Chinese People’s Institute of Foreign Affairs, which Wilder said was “not officially an intelligence collection organisation (but) is used by Chinese intelligence to gain access to international visitors of interest”.’ 🇺🇸
US, China commerce officials set for talks in Tianjin next week – SCMP 🇺🇸
Exclusive: US sees ‘limited’ opportunity for talks with China on nuclear arms – Reuters 🇺🇸
Chinese defence ministry urges US to substantively reduce its nuclear arsenal – Xinhua 🇺🇸
Washington is bezorgd over Pekings modernisering en uitbreiding van het Chinese nucleaire arsenaal.
China to transfer two ships and pier to Cambodian navy at Ream – RFA: ‘In return, analysts say it is likely that the two countries have reached an agreement giving the Chinese navy privileged access to the new base’ 🇰🇭
Philippines defence minister says Asean remains soft on China over maritime row, risks irrelevance – SCMP 🇵🇭
Philippines and Vietnam set to sign defence cooperation agreement – ABS-CBN 🇵🇭🇻🇳
Chinese defence ministry says China to manage differences with Philippines but patience ‘limited’ – Reuters 🇵🇭
China tells Philippines to ‘immediately withdraw’ from contested South China Sea atoll – SCMP 🇵🇭
Pro-China propaganda pivots, targets Philippine civil society as tensions mount – Rappler 🇵🇭
China and Singapore to hold joint maritime exercise – Xinhua: ‘The China-Singapore Exercise Cooperation 2024 is the first bilateral joint exercise held between the Chinese and Singaporean navies in China.’ 🇸🇬
Dat maakt de Singapore Armed Forces de enige strijdkrachten die in zowel China als Taiwan oefenen.
Beijing diplomat Liú Jiànchāo 刘建超 urges China and Japan to take long view on tense ties to manage friction – SCMP: ‘delegation of the Japan-China Friendship Parliamentarians’ Union’ 🇯🇵
Japanese politician gets ‘positive’ Chinese response on visa-waiver issue – Nikkei Asia 🇯🇵
South Korean defence intelligence official sold secrets to China for seven years – The Chosun Daily 🇰🇷
China says its Mekong dam did not discharge water downstream amid heavy flooding in Thailand – SCMP 🇹🇭
IAEA eager to deepen cooperation with China on peaceful use of nuclear technology – Xinhua
China economie
China’s embattled restaurants, embroiled in price war, struggle to stay afloat – SCMP
Local governments in China to ‘smash iron pots, sell the steel’ to stave off debt risk – SCMP
As it reins in wasteful investment, China frets over growth – Reuters
Opinion: China’s debt divide is hurting its economy – Robin Harding for FT: ‘local governments do almost all of the spending, but rely on the centre for revenue to an extent that is rare elsewhere in the world.’
China pilots government-funded housing renovation system in 22 cities – Caixin Global
China Resources Land 华润置地 posts record decline in its interim profit amid housing market torpor – SCMP
Prudential reports stalling growth in Hong Kong and China – FT
Chinese regional banks investment revenues surge even as lending falters – Reuters
China oil majors tighten investment while doling out record dividends – Nikkei Asia: ‘under mounting central government pressure to focus more on stock market performance and shareholder returns.’
Opinion: China’s squeeze on the aspiring classes will have an economic cost – Diana Choyleva in FT: ‘Xi’s strategy can succeed only if it doesn’t kill off the incentive of the well-educated middle class to get on in life.’
China binnenland
‘Northern frontier culture’: How China is erasing ‘Mongolia’ from Mongolian culture – The ASPI Strategist: ‘The Chinese Communist Party’s new official term, bei jiang wenhua, meaning ‘northern frontier culture’, eliminates reference to Mongolians’
Xi demands all-out efforts to carry out reform tasks – Xinhua: ‘The meeting reviewed and adopted a plan for central Party and state departments to implement major reform measures set in a key resolution adopted last month at the third plenum of the 20th CPC Central Committee, and a guideline on upgrading pilot free trade zones.’
Q&A on China reforms: What will a unified national market offer? – Xinhua
China issues white paper on energy transition – Xinhua
Extreme heat in China triggers power warnings and factory stoppages – Nikkei Asia
Hong Kong
Hongkong holt persvrijheid verder uit met veroordeling twee journalisten voor ‘opruiing’ – de Volkskrant
Two Hong Kong journalists from defunct media outlet Stand News found guilty of sedition – HKFP: ‘arguing that the outlet had sought to incite hatred against authorities’
‘marking the first such conviction of journalists in Hong Kong since the former British colony returned to Chinese rule in 1997.’
‘A point of no return’: the fall of Stand News, Hong Kong’s once leading online media outlet – Reuters
Hong Kong: Statement by the spokesperson on the conviction of former chief editors at Stand News – EU EEAS 🇪🇺
Spokesperson of the Chinese Mission to the EU Speaks on a Question Concerning the Hong Kong-related Statement of EEAS Spokesperson – Mission of the People’s Republic of China to the European Union 🇪🇺
Jury convicts 1, clears 6 over 2019 bomb plot in Hong Kong’s first UN anti-terror trial – HKFP
Taiwan buitenland en defensie
[China]’s Taiwan affairs official Sòng Tāo 宋涛 meets with KMT vice chairman Andrew Hsia 夏立言 – Xinhua 🇨🇳
KMT officials to attend business forums in China – Focus Taiwan 🇨🇳
林右昌31日訪美 將赴華府智庫演說並拜會FAPA總部 – 中央社 🇺🇸
DPP-functionaris gaat op bezoek aan de VS.
NTT and Chunghwa Telecom 中華電信 launch all-optical link between Japan and Taiwan – Nikkei Asia 🇯🇵
Taiwan delivers protective equipment to Haiti security forces – Reuters 🇭🇹
Missile exercise failures prompt military inspections – Taipei Times: ‘17 TOW 2A missiles were fired, but only seven hit their intended targets, prompting questions about the viability of the aging ordnance.’
‘More than half of the military personnel at the exercise had not handled the weapon system before’
Taiwan schandalen
Pan-Blue and pan-Green camps see wave of scandals and investigations – New Bloom
TPP leader Ko Wen-je 柯文哲 announces 3-month leave amid scandals – Focus Taiwan
Bad times for the TPP – Nathan Batto’s Frozen Garlic: ‘party ID for the TPP only fell from 11.5 to 8.4%. That’s not good, but it’s not catastrophic either. It’s also important to remember that the next local election is still more than two years away’
‘it has eight seats and the balance of power in the legislature. Critically, these are all party list seats. That means that TPP legislators don’t have the option of switching parties.’
Prosecutors seek detention of 3 in Core Pacific City corruption probe – Focus Taiwan: ‘in an escalation of a corruption case embroiling former Taipei mayor and Taiwan People’s Party (TPP) chairman Ko Wen-je’
Prosecutors request the detention of Taipei councillor Angela Ying 應曉薇 (KMT) over alleged corruption – Taipei Times: ‘Ying was arrested on Tuesday night at Taichung International Airport as she was about to board a flight to Hong Kong.’
Former vice premier Cheng Wen-tsan 鄭文燦 (DPP) released on NT$28 million [€790k] bail – Taipei Times
Cabinet spokesman Chen Shih-kai 陳世凱 (DPP) named new transportation minister – Focus Taiwan: ‘a role left vacant after Li Men-yen (李孟諺) resigned last week following the revelation of his extramarital affair’
Taiwan binnenland en economie
Taiwan to adopt global minimum tax – Taipei Times
Sports ministry plans under way, premier says – Taipei Times: ‘for teams to use the name Taiwan at international competitions in the nation’
President Lai family home to open as miners’ museum, DPP says – Taipei Times
Domestic carbon credit exchange platform to launch in October – Focus Taiwan