German Chancellor Olaf Scholz is planning a trip to China
News Briefing for Tuesday, October 11, 2022
Hereโs what else you need to know about China today:
German Chancellor Olaf Scholz is planning a trip to China for November 3โ4, his first visit to the nation as German leader since taking office last December. Heโll also be the first G7 leader to visit China since the start of the COVID pandemic.
Decoupling with China was โnot an optionโ for EU firms, the blocโs trade commissioner Valdis Dombrovskis said per Reuters: โThe EU should continue engaging with China with pragmatism and without naivety. Our trading relationship needs more balance and reciprocity.โ
- On the other hand, in a speech critical of Beijing, Jeremy Fleming, the chief of Britainโs cyber-intelligence agency, said that Beijingโs aggressive stance seeks to โshape the global tech ecosystem.โ
The chip wars are heating up after the U.S. announced new restrictions on semiconductor exports to China, a move intended to โkneecapโ the Asian giantโs push to develop cutting-edge technologies.
- In order to comply with the new rules, KLA Corp, a U.S.-based chips manufacturing company, will stop offering some of its services to China-based customers, including South Korea’s SK Hynix, which has factories in the cities of Wuxi and Chongqing, and plans for a fab in Dalian.
- Meanwhile, Chinaโs top EV makers, including NIO, XPeng, and Li Auto, are all moving to make their own chips.
- Read more about the U.S. chip curbs to China today from the Wall Street Journal and Foreign Policy, or see this commentary by Paul Triolo and Kendra Schaefer published last week on The China Project.
The U.S. government has removed Wuxi Biologics, a leading Chinese pharmaceutical contract manufacturer, โfrom a list of entities that U.S.-based firms need to jump through extra hoops to trade with.โ Wuxi Biologics makes ingredients that go into AstraZenecaโs COVID-19 vaccine.
CATL, Chinaโs leading battery producer, has announced that it expects to report net profit for the first three quarters of up to 18 billion yuan ($2.52 billion), an increase of 132% year-on-year. See todayโs Business briefs from the Chinese media, with more links and info on:
- A secondary listing in Hong Kong for BOSS Zhipin.
- A new push for rural infrastructure.
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