Good evening. It’s no secret that the business community in China has been suffering recently. But now that Beijing is signaling an end to the various “crackdowns” of the past few years, many observers say permanent damage has been done. From an entrepreneur exodus to capital flight, our cover story this week examines whether the CCP can win back its “capitalist class.” Elsewhere, we have infographics on Hua Hong Semiconductor, China’s second largest chipmaker; an interview with Mike Gallagher, the congressman and chairman of the new Select Committee on China; a reported piece on China’s mRNA blockade; and an op-ed from Yun Sun on the recent positive trajectory in U.S.-China relations. If you’re not already a paid subscriber to The Wire, please sign up here.
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The Fear Factor
The Chinese Communist Party and China’s private sector have always had a hot-and-cold relationship. But after intense crackdowns on private business in recent years, Beijing is now hoping to woo back its “capitalist class” quickly to help it stave off economic and geopolitical headwinds. As Isabella Borshoff reports this week, that might be tricky: many experts say the current environment represents a step change from previous swings, especially since China’s wealthy have been eyeing the exit and planning their exodus for years.
The Big Picture: Hua Hong’s Legacy
Business is booming at Hua Hong Semiconductor, China’s second largest chipmaker, even as tech export controls by Western countries present major challenges to the industry. This week’s infographics by Eliot Chen look at the legacy chip maker’s long history, influential investors, and prospects competing against global chipmaking giants.
A Q&A with Mike Gallagher
Congressman Michael Gallagher is a Republican who represents Wisconsin’s 8th congressional district and chairs the Select Committee on China, a new body aiming to analyze various military, national security, and economic policy issues related to China. Before joining Congress in 2017, he served on active duty in the United States Marine Corps. In this week’s Q&A with Katrina Northrop, he talks about preventing Taiwan’s future from becoming Ukraine’s present; developing a framework for selective decoupling; and reminding people that the U.S. is the good guy.
Illustration by Kate Copeland
China’s mRNA Blockade
Three years ago, China had high hopes the pandemic could be a launchpad for its domestic pharmaceutical industry. But as Grady McGregor reports, that didn’t quite happen.
Is the recent positive trajectory in U.S.-China relations temporary and tactical in nature? Or sustainable and strategic in essence? In this week’s op-ed, Yun Sun offers an examination of the reality behind the recent developments.
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