China News - 12 March 2021
Yesterday, we published a new paper: ‘The UK’s strategic options: Belt and Road’, written by Eyck Freymann. In the face of a potential China-led geopolitical bloc and likely US pressure on the UK to oppose the BRI, the UK must develop and debate its menu of strategic options: ‘contain’, ‘hedge’, or ‘join and balance’. All involve difficult trade-offs. Read here, or check out the summary on Beijing to Britain.
International
China’s regulators weigh levying record fine on Alibaba. The WSJ reports that Alibaba will see softer treatment than Ant, as long as it disassociates itself from Jack Ma. But antitrust regulators are still considering levying a record fine against Alibaba, exceeding that of the $975m Qualcomm paid in 2015. Relatedly, Bloomberg reports that Tencent is seen as the next target for increased supervision. WSJ, Bloomberg, 11 March
You should quit Hong Kong’s top court now, UK judges are told. Lord Reed, president of the UK Supreme Court and one of ten British judges on the Hong Kong bench, has indicated to The Times that a decision will be made soon. Shadow foreign secretary Lisa Nandy is one of those who has called for the ten judges to step down. The Times, 12 March
Beijing’s move to change Hong Kong electoral rules condemned. Japan’s foreign ministry said Japan “cannot overlook” the resolution passed by the NPC. The US State Department on Thursday called the move a “direct attack” on the city’s autonomy. Australian foreign minister Marise Payne on Friday also expressed serious concern. SCMP, FT, Reuters, 12 March
Hong Kong activists urge EU not to ratify new deal with China. The Guardian, 11 March
EU moves closer to sanctions for human rights violations in 6 countries. The first tranche of the EU’s human rights sanctions is likely to include one Chinese official involved in its policies in Xinjiang. Politico, WSJ, 11 March
Friday Quad summit: Vaccines and a cooperative approach to 5G on the agenda. Reuters reports that India is likely to block its mobile carriers from using telecom equipment made by Huawei. SCMP, Reuters, 12 March
Canadian men detained in China to face trial ‘soon’ as hopes of diplomatic deal dim. The Guardian, 11 March
FCDO publishes new Great Britain-China Centre framework agreement. Gov UK, 11 March
China watch
China turns its back on Bangladesh BRI coal projects, in a sign of steps towards a sustainable BRI. FT, 12 March
China’s goal of productivity growth faster than the overall economy hinges on rural education, innovation. SCMP, 12 March
Economy & tech
WEF advises China to rethink fintech regulation without killing innovation. A new report argues the country need a new regulatory model for financial businesses. Caixin, 11 March
Pakistan blocks China’s TikTok after complaint over ‘indecent content’. SCMP, 12 March
Longer reads & opinion
Chaguan: Why the internet has not freed China. Commercial competition in the entertainment has exploded. The Economist, 11 March
To maintain tech supremacy the US must avoid copying China’s ‘military-civil fusion’. While government and business will have to collaborate to an intimate degree, they should never run off together. FT, 11 March
A confident China seeks to insulate itself from the world. The pursuit of self-sufficiency is well underway. The Economist, 11 March
China’s jaded techies find a hero in Elon Musk. China is having its techlash moment. NYT, 12 March
The polar policies in China’s new five-year plan. The inclusion of Arctic and Antarctic policies in the new FYP highlights their emerging importance. The Diplomat, 12 March