China’s UN sustainability announcement raises questions about its commitment to climate change and global leadership, Jaguar Land Rover (JLR) could receive government support and the UK addresses labour challenges presented by both native and international workers in today’s Day in Trade.
Chinese sustainability goals
While China may be attempting to assert itself as a global leader on trade, its efforts on climate change have received a mixed response this week.
Yesterday (24 September) at the UN General Assembly in New York, Chinese president Xi Jinping announced plans to cut emissions by 7% and 10% of their peak by 2035.
However, this falls short of the 30% experts say is necessary to make a meaningful impact.
Kaysie Brown, associate director for climate diplomacy and governance at E3G, a climate thinktank, told the Guardian the target “falls critically short of what is needed”, and would undermine its effort to reach carbon neutrality by 2060, as well as taking a global leadership role on multilateral issues.
Xi suggested “some countries” weren’t following through on their climate commitments, and that the “international community should stay focused on the right direction”.
This sentiment was echoed by some experts in light of China’s new targets, with Bernice Lee, distinguished fellow at Chatham House, highlighting China’s substantial investment in clean energy (almost a third of the global total), and suggesting other countries will be influenced by its stance.
“My bet is that other countries will read the writing on the wall and recognise that China is fully committed, and be reassured as they seek to shift off fossil fuels.”
Andreas Sieber, associate director of policy and campaigns at climate pressure group 350.org, described the goals as “both underwhelming and transformative” when speaking to the FT, adding that it reflects a commitment to a path in which “cleantech defines economic leadership”.
Government stepping in for JLR
After the government intervened in the UK’s beleaguered steel industry earlier this year, reports suggest it is now also weighing up supporting the suppliers to auto manufacturer JLR, which has ceased production following a cyberattack.
The BBC reports that ministers are considering buying small car components, not only to support JLR but also the smaller firms in its supply chain, many of which have said they could go bust without its business.
Since a 1 September cyber attack, JLR has ceased production. Manufacturing sites in Solihull, Wolverhampton and Halewood would typically produce about 1,000 cars per day. The suspension of production is estimated to be costing the company around £50m per week.
The company confirmed the earliest that it could reopen would be 1 October, with some reports suggesting manufacturing may not begin again until November.
Compounding the firm’s financial woes, it was reported this week that because it had not negotiated an insurance package prior to the attack, it could be set to bear the full costs.
Soaring visa costs
Amid a global race to secure top performers across a range of critical science and technology professions, the UK government’s visa costs were found to be almost as expensive as new, higher US fees.
When factoring in the cost of settling with a family on a skilled worker visa, alongside possible tax incursions for workers whose employers shoulder the cost, the FT reports that visa costs almost equal the US$100,000 the US now levies for its own H-1B skilled visa.
The criticism followed the government’s recently tabled plans to drop visa fees for top talent in area like science and academia, specifically capitalising on the Trump administration’s aversion to taking on foreign workers.
A spokesperson said that for those at the top of their professions – “who have attended the world’s top five universities or have won prestigious prizes” – this could mean “cutting costs to zero”.
Another official told the FT:
“This isn’t about diluting our determination to bring down net migration but it’s about getting the brightest and best into Britain. There is unity across government on this.”
Workplace health woes
This discussion comes amid debates about how best to mobilise the UK’s native, and increasingly sick, workforce.
Alarm bells have been ringing for some time about the decline in workforce participation, particularly among young people who are economically inactive, in neither work nor education, nor seeking to be.
The British Chambers of Commerce has released a report offering some solutions for helping employers to support sick workers.
These include tax breaks for any health services that businesses provide to their workers, introducing wage subsidies to encourage younger people with long-term health problems back into work and support for managers from SMEs to train in mental health and neurodiversity.
BCC director general Shevaun Haviland told the FT that “businesses can’t carry more costs”, and, while many want to reverse the trend of workforce attrition, “the increasing cost and complexity of the landscape means many lack the resources to respond”.
The Fabian Society has also released a report earlier this month suggesting the government create a “national occupational health service” to tackle the problem using a tax levied on large employers.
While well-received by unions, businesses echoed Haviland’s points on the challenge of bearing more costs.
Other news in the headlines
· The BBC reported that 90% of counterfeit toy products seized at the UK border are knock-offs of the Chinese phenomenon Labubu
· Science minister and the government’s chief science adviser during the Covid-19 pandemic, Sir Patrick Vallance has weighed in on the UK drug price debate, arguing that the NHS will need to pay more for medicines to attract greater pharmaceutical investment
Yesterday in trade
· China has offered to forgo the ‘Special and Differential Treatment’ in received in trade negotiations as a developing country in the eyes of the WTO
· Trump criticised the UN, the EU and climate change policies during his UN General Assembly speech
· Farage criticism from Liberal Democrat leader Sir Ed Davey as the party’s conference wrapped up
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