China News - 12 November 2020
Hong Kong: UK government declares a “clear breach of the legally binding Sino-British Joint Declaration". Dominic Raab issued a statement this morning, saying “Beijing’s imposition of new rules to disqualify elected legislators in Hong Kong constitutes a clear breach of the legally binding Sino-British Joint Declaration”. He added that “China has once again broken its promises and undermined Hong Kong’s high degree of autonomy”. This is China's third breach of the Sino-British Joint Declaration since 1997; the first was declared by the UK in 2016 after the apparent abduction of a British citizen, and second with the introduction of the National Security Law in June 2020.
Raab’s statement added that the UK “will hold China to the obligations it freely assumed under international law” and Minister Nigel Adams confirmed in Parliament that the UK has summoned the Chinese ambassador to express its concerns. Hong Kong’s pro-democracy lawmakers resigned en masse yesterday in protest against Beijing’s growing control over the local legislature, one of the last remaining centres of dissent in the Chinese city. The move has been widely condemned, with statements from the EU, Germany, the UK and Australia, while the US has threatened fresh sanctions. UK Foreign Secretary's statement, The Times, NYT, The Guardian
UK Parliament: Watch live as Minister Nigel Adams responds to Layla Moran’s Urgent Question and other MPs’ questions on Hong Kong from 10:30.
Today’s leaders: “Democracy in Hong Kong is now nothing more than a charade” in The Telegraph, “the ousting of pro-democracy lawmakers from the legislative council is another grim moment for the region” in The Guardian and The Times calls for Biden to join the fight for liberty in Hong Kong.
Reaction as National Security and Investment Bill published in full. The British government will get new powers to block takeovers and corporate deals that threaten national security, according to proposed legislation published on Wednesday that covers potentially sensitive sectors such as defence and energy. The Times also covers a new Henry Jackson Society report which finds that 115 UK firms have been partly or wholly acquired by Chinese-owned companies in the past decade, of which more than a third key industries identified in the Chinese government’s “Made in China 2025” strategy. The Times, Full bill and policy papers, 12 November
The Times leader on the NSI Bill: Hard Sell. “While the new vigilance to Chinese influence among MPs is welcome, ministers should beware that decision-making does not become politicised”.
More reaction: The complexity of the proposed bill means “a bright tomorrow is dawning for British merger and acquisition advisers and political lobbyists” writes Lex. “Britain's new rules to protect from hostile takeovers must be handled with care” in The Telegraph.
Southeast Asian leaders begin 37th ASEAN summit today. High on the summit’s agenda will be tensions in the South China Sea, where Chinese ships have been embroiled in periodic standoffs with vessels from Vietnam, Malaysia and Indonesia. The Diplomat, 12 November
China and 14 other Asian nations set to sign world’s biggest free trade deal. The Regional Comprehensive Economic Partnership, which includes countries stretching from Japan to Australia and New Zealand, aims to reduce tariffs, strengthen supply chains with common rules of origin, and codify new e-commerce rules. India withdrew from negotiations last year. Bloomberg, 12 November
Chinese Foreign Ministry says Australia knows what’s needed to improve ties. To improve ties, “first of all, Australia has to stop making irresponsible remarks,” Wei Jianguo, a former vice commerce minister, said Wednesday. “Second, you have to import Chinese products based on WTO principles, especially 5G and digital products, rather than using security grounds at will.” Bloomberg, 12 November
Suga and Biden agree security treaty applies to Senkaku Islands. Nikkei Asia, 12 November
Australia appoints new spy chief known for hawkish views on China. AFR, 12 November
China watch
Xi to attend BRICS summit, APEC economic leaders' meeting and G20 summit via video link. Xinhua
Alibaba's Singles Day sales top $74 billion as Chinese consumers flex spending power domestically. Reuters
Economy & tech
TikTok remains in jeopardy in the US. Today is the deadline for when ByteDance, TikTok's Chinese parent company, must unwind a 2018 acquisition that effectively created TikTok. The Committee on Foreign Investment in the US has the ability to extend the deadline by 30 days, but has not yet done so. Axios, Reuters, 12 November
Down $290bn, China tech investors wargame worst-case scenarios. “The Wild West era of policy arbitrage -- taking advantage of weak regulations over the sector -- has come to an end,” said John Dong, a securities attorney at Joint-Win Partners in Shanghai. Bloomberg, 12 November
China wants self-driving tech in half of new cars by 2025, doubling previous target in new plan to encourage local companies. Nikkei Asia, 12 November
Longer reads & opinion
Podcast: Who Runs that Place? The West intends to be more circumspect in dealing with China. But Isabel Hilton asks: who takes the decisions in Beijing, how are they made and how resilient is the system there? BBC, 9 November
The impossible balance: the challenge of balancing career and family in China. China Media Project
The makeup of the CCP elite. A new dataset that visualises the key characteristics of elite CCP government officials. China Data Lab