China News - 1 August
International
Biggest hurdles to China's entry into trans-Pacific trade pact are political. The UK joined the Comprehensive Progressive Trans-Pacific Partnership at a meeting in Auckland earlier this month. Experts say that China should be able to meet the trans-Pacific trade pact standards, forcing members to make a politically uncomfortable decision on whether to let Beijing join a deal created to counter its growing influence. Lucy Craymer and Joe Cash. Reuters, 31 July
US seeks to deepen Tokyo-Seoul security links to boost Pacific deterrence. The White House is pushing for trilateral defence cooperation amid rising threats from China and North Korea. Washington wants each nation to agree to consult each other in the event of an attack. Demetri Sevastopulo, Kana Inagaki and Christian Davies. Financial Times, 1 August
EU to strengthen maritime cooperation with the Philippines as regional tensions rise. The head of the European Commission said that the EU is “concerned about the rising tensions in the Indo-Pacific” and that the “illegal use of force cannot be tolerated”. This statement comes amid the stepping up of geopolitical rivalry between the US and China in the region. Henry Foy. Financial Times, 31 July
“Absolute loyalty”: Xi Jinping turns anti-corruption focus to China’s military. Xi Jinping has started a new campaign to enforce party discipline. Senior Chinese officers in the nuclear weapons division come under scrutiny as Xi turns his anti-corruption focus to the military. It is likely that many of the PLA Rocket force will be investigated. Kathrin Hille and Edward White. Financial Times, 31 July
China ousts top generals from nuclear Rocket Force. General Li Yuchao, commander of the PLA Rocket Force and his deputy General Liu Guangbin disappeared from public view a few months ago with no official explanation. They have now been replaced by Wang Houbin and Xu Xisheng. Kathrin Hille. Financial Times, 31 July
Economy & Tech
Weak Chinese factory activity puts pressure on Beijing to support economy. China’s official manufacturing sector purchasing managers’ index came in at 49.3 for July, meaning that manufacturing activity contracted for a fourth consecutive month. The sputtering manufacturing recovery spurs calls for more concrete policy measures. William Langley and Joe Leahy. Financial Times, 31 July
State-backed support puts renminbi on course for the best monthly rise since January. Traders say that official limits on the exchange rate’s movement and indirect intervention from state banks buying up the currency has helped create a 1.5% increase against the dollar after 6 months of falls. Hudson Lockett and Cheng Leng. Financial Times, 31 July
As economic fears slam spending, China says it has plans to make goods cheaper. There is a new plan that features incremental measures aimed at improving both the supply of goods and consumer sentiment to try to get people to spend at pre-Covid levels. Some analysts are concerned that the piecemeal policy tweaks will do little to restore battered confidence. Mandy Zuo. South China Morning Post, 31 July
China curbs exports of drone equipment amid US tech tension. The Chinese Commerce Ministry announced export controls on some drone and drone related equipment saying it wanted to safeguard “national security and interests” amid escalating Chinese-US tension over access to tech. Reuters, 31 July
Words only go so far: Investors want property fixed before buying China. After all the excitement whipped up in China’s markets by the Politburo last week, foreign investors say policymakers’ words will have to be matched by substantive action to clean up an ailing property sector before confidence recovers. Summer Zhen and Carolina Mandl. Reuters, 31 July
Luxshare’s wins with Apple make it Foxconn's biggest challenger. Shenzhen based Luxshare Precision industry is doing increasing business with Apple as it is prepared to test “crazy” ideas in its factory. The Chinese contract manufacturer is the sole assembler of Vision Pro mixed-reality headset- the “most complex consumer device anyone has ever made”. Qianer Liu. Financial Times, 31 July
Opinion & long-reads
“I won’t be deterred”: Hong Kong activist Finn Lau vows to fight on despite arrest bounty. Lau has used his personal experiences to sound the alarm about the increasing threat of transnational repression. He believes the bounty is a consequence of the British government doing too little, too late. Geneva Abdul. The Guardian, 31 July
Japanese eateries in China fear ruin as Fukushima water discharge looms. 3 weeks after China has increased checks on Japanese food imports over radiation concerns, Japanese restaurants have started to worry about their future. Imports have since ground to a halt, more stringent Chinese checks have led to massive customs delays, and posts and hashtags saying Japanese food is radioactive have kept customers away. Martin Quin Pollard. Reuters, 31 July
Extreme rain in Beijing after typhoon turns roads into rivers and kills two. Despite the evacuation of tens of thousands from their homes, typhoon Doksuri has caused cars to be swept away and hundreds of people to be trapped inside their homes. A rescue patrol in Mentougou found two bodies. Liz Lee and Ethan Wang. Reuters, 31 July