China News - 12 May 2022
International
Hong Kong cardinal Joseph Zen arrested under China's security law. 90-year-old Cardinal Zen, one of the Catholic Church's most senior members, is one of four people detained for being associated with a now-defunct organisation that helped Hong Kong protesters in financial need. Zen, Cantopop singer and Canadian citizen Denise Ho, veteran barrister Margaret Ng and scholar Hui Po-keung were arrested. They are accused of colluding with foreign forces - an offence under Hong Kong’s national security law - and could face life in prison. BBC, HKFP, 11 May
Foreign agent scheme omitted from UK national security bill. Plans to require lobbyists, PR firms and other professionals in the UK to register their work for Russia, China or any other foreign country have been unexpectedly left out of the national security bill published on Wednesday. Insiders said key decisions about what activities would have to be registered had yet to be taken, meaning the foreign agent scheme will have to be introduced via a government amendment to the bill. The Guardian, 11 May
Inquiry into sale of Perpetuus Group to Chinese investors. Business Secretary Kwasi Kwarteng has written to the Competition and Markets Authority instructing them to conduct an in-depth Phase 2 investigation of the proposed acquisition of the Perpetuus Group by Shanghai Kington Technologies and others on national security grounds. Perpetuus is a group of UK companies active in the functionalisation of graphene and other nanomaterials, which have a range of strategic applications. Gov.uk, The Times, 12 May
A former Chinese Ambassador’s trenchant comments on Ukraine war attract notice. In a highly unusual move, career diplomat Gao Yusheng spoke openly about how disastrous the war has been for Russia, but his comments have since been quietly deleted. Gao argued the country has been in a “continuous, historical process of decline” since the demise of the Soviet Union. The Diplomat, 12 May
China ‘already owns land’ for Solomons bases. Two potential sites for Chinese military bases in the Solomon Islands are already owned by Chinese interests, including a port near Honiara that could accommodate an aircraft carrier, a new report reveals. The Australian, 11 May
Chinese CCTV cameras have hidden microphones that could be used to spy on public. The Telegraph, 11 May
Japan pursues greater Five Eyes intel-sharing amid China concerns. Nikkei Asia, 12 May
Biden eyes new ways to bar China from scooping up data. Reuters, 12 May
China focus
China’s forgotten Premier steps out of Xi’s shadow as economic fixer. For years, President Xi Jinping has sidelined China’s second most powerful political figure, Premier Li Keqiang. Now, Li is re-emerging as a force in his own right, a potential pragmatic counterbalance atop the Chinese government that hasn’t been seen for nearly a decade. WSJ, 11 May
Shanghai posts falling Covid-19 infections and deaths. The city is getting closer to its goal of only finding new cases among people already in “closed off management”, with the drastic citywide lockdown and innumerable mass tests possibly taking the city towards recovery from the current outbreak. SCMP, 12 May
China attacks ‘irresponsible’ WHO criticism of its zero-Covid policy. FT, 11 May
Economy & tech
Chinese taxi app Didi shelves plans for major overseas expansion. Didi has told staff it has put plans for major international expansions on hold until at least 2025 and cut half its UK employees amid pressure from Beijing on one of its most prominent tech companies. The ride-hailing giant is urging shareholders to vote to delist from the New York Stock Exchange to help it wrap up its cybersecurity probe from Beijing and list on another exchange, possibly in Hong Kong. The Guardian, SCMP, 12 May
Toyota cuts output due to Shanghai Covid lockdown. Toyota said that profits slumped by a third in the first three months of the year as China’s zero-Covid policy and a shortage of semiconductors hit production. The Shanghai lockdown also means that it will suspend operations of 14 production lines at eight factories in Japan from Monday to Saturday next week. The Times, 12 May
Southeast Asian exporters step up as China locks down. Caixin, 11 May
China’s Premier urges fiscal, monetary policies to boost economy. Bloomberg, 11 May
Opinion & long reads
Why is China afraid of a 90-year-old Catholic bishop? The very simple answer: he is a threat to the Chinese Communist regime. Mark Simon. The Washington Post, 11 May
Can Xi Jinping vanquish Covid without crushing China’s economy? In a crucial political year, a series of open-ended lockdowns have heaped more pressure on struggling businesses. Sun Yu and Tom Mitchell. FT, 12 May
China’s faltering “zero COVID” policy: politics in command, economy in reverse. Jeremy Mark and Michael Schuman. Atlantic Council, 11 May
Xi Jinping’s legitimacy malaise is bad news for Cross-Strait relations. Taiwan may be his only chance to secure a legacy-defining victory. Anthony Toh Han Yang and Jonghyuk Lee. The Diplomat, 11 May