FirstFT: Zero-Covid anger erupts in China

Protests in Shanghai escalated last night as police struggled to disperse large crowds who gathered as part of a nationwide movement against President Xi Jinping’s zero-Covid policy.

The unrest, which represented one of the most brazen challenges to the Chinese Communist party’s authority in decades, began on Saturday night and centred on a road named after the Chinese city of Urumqi, where a deadly fire on Thursday killed 10 people.

That incident in Xinjiang’s capital fuelled outrage on social media and prompted a series of vigils across the country, with people blaming coronavirus restrictions for the tragedy — allegations that the authorities denied.

After clearing the demonstration in the early hours of yesterday morning, crowds returned in the afternoon. People continued to gather through the night, occasionally clashing with police and shouting anti-government slogans. Students across the country held rallies over the weekend, including one last night at the elite Tsinghua University in Beijing.

“Even people who supported the [zero-Covid] policies have started to recognise something is wrong” — a woman protester in Shanghai

The CCP has had to contend with much larger demonstrations in recent years, notably the mass pro-democracy protests in Hong Kong that brought millions of people on to the territory’s streets in 2019.

In terms of its national scope and direct challenge to party authority, however, the gathering movement is unprecedented since the 1989 Tiananmen Square protests. People at Saturday’s Shanghai protest chanted openly for the party and Xi to “step down”.

Five more stories in the news

1. Global inflation likely to have peaked, data indicators suggest The pace of headline price growth is set to slow in the coming months after global inflation hit a record 12.1 per cent in October. While this suggests that pressure is easing, inflation is likely to remain high in the coming year.

2. Crypto fraud jumps by a third in UK The amount of reported financial losses involving cryptocurrencies rose to £226mn, a 32 per cent increase from the same period a year earlier, according to police data, as the industry faces continued fallout from the collapse of Sam Bankman-Fried’s FTX exchange.

3. Spain risks falling short on EU recovery funds promise, says Catalonia Natàlia Mas, the top economic official in the region’s administration, has called on the central government to use €140bn in funds to reverse deindustrialisation, arguing it risks squandering a chance to boost growth by putting too much emphasis on small projects.

4. EU tries to settle differences over Russian oil price cap Brussels is racing to finalise a proposed price ceiling on Russian oil shipments after member states clashed over the level of the cap and whether to link it to a wider round of sanctions. The commission is pushing for a maximum of $65 a barrel, but hawkish governments argue it would be ineffective because the price is close to what Russia already gets.

5. UK house-buying demand drops 44% Demand from home hunters has almost halved in the wake of Liz Truss’s September “mini” Budget, according to property portal Zoopla, as higher mortgage rates pushed prospective buyers to turn to the rental market instead.

The day ahead

G7 justice ministers meet The gathering takes place in the capital of Germany, which currently holds the group’s presidency, and will focus on ways to prosecute alleged Russian war crimes in Ukraine. (Reuters)

EU economic hearing European Central Bank president Christine Lagarde speaks at a hearing before the Committee on Economic and Monetary Affairs of the European parliament in Brussels, which is set to focus on inflation as a global challenge and the tightening of monetary policy.

Lord Mayor’s Banquet Rishi Sunak addresses the formal meal in Guildhall, London. The prime minister is set to use this year’s speech, which traditionally focuses on Britain’s foreign affairs, to outline an “evolutionary approach” to handling Russia and China. (Guardian)

Labour to challenge PPE contracts A list of parliamentary written questions by Angela Rayner, deputy leader of the UK’s main opposition party, will be published, piling pressure on the government to justify awarding contracts worth more than £200mn for personal protection equipment to a company linked to Tory peer Baroness Michelle Mone.

Scottish ambulance strikes About 1,700 members of GMB Scotland’s ambulance service begin a 26-hour walkout calling for an improved pay offer. (GMB Scotland)

FT Crypto and Digital Assets Summit Join industry leaders, policymakers, regulators, institutional investors and more at our Crypto and Digital Assets Summit: Winter Edition to discuss insights on the market and ways to build resilience in the face of volatility. Register for a digital pass here.

Cyber Monday Many online retailers, particularly in the US, will offer post-Thanksgiving holiday ecommerce deals days after Black Friday, which traditionally launches the Christmas shopping period.

Fifa World Cup The football tournament in Qatar continues with matches between Cameroon and Serbia, South Korea and Ghana, Brazil and Switzerland, as well as Portugal and Uruguay.

What else we’re reading

The UK government should stop doing stupid stuff It would be wonderful if it could start doing sensible stuff, but one must keep one’s hopes in check. For starters, it should not consider regulatory changes unless they will clearly be for the better, writes Martin Wolf.

Can Europe keep the lights on? Ever since Russia’s invasion of Ukraine, governments have been worrying about how they will provide heat and power to their citizens this winter. Our latest interactive looks at how countries can avoid blackouts in the months to come.

Seven days that could unravel the global oil market As western countries prepare to impose a price cap on Russian crude — one of the strongest responses yet to president Vladimir Putin’s invasion of Ukraine — many of the industry’s norms are being undermined. How disruptive might the measures be?

Get ready for a net zero business backlash More than a third of the largest companies now have corporate net zero vows, but enforcement has been difficult due to a lack of robust rules. Now, the UN is pushing to tighten corporate rules and crack down on dishonest climate accounting — and some boardrooms are shuddering.

Privacy at work How much noise is too much in the office? As workers have returned to their desks following a pandemic-driven boom in working from home, managing sound levels has become an art — and a science.

Wine

As you stock up for the holiday season, take note of Jancis Robinson’s handpicked list of the top whites (and one rosé) to enjoy during this year’s festivities.