China News - 14 January 2022
MI5 warns MPs and peers of ‘Chinese agent’ trying to influence parliamentarians on behalf of Beijing. An interference alert from the security service informed the House of Commons speaker that lawyer Christine Ching Kui Lee "established links" for the Chinese Communist Party with current and aspiring MPs. MI5 said that activity "had been undertaken in covert coordination with the United Front Work Department [of the CCP], with funding provided by foreign nationals located in China and Hong Kong". BBC, The Guardian, The Sun, 13 January
China Research Group Chair Tom Tugendhat in The Times: “The ability to access parliament, to attend functions and to pick up gossip is worth something to the Ministry of State Security that oversees foreign activity for Beijing…. we must do what we can to protect ourselves from outside influence.”
University of Exeter Postdoctoral Research Fellow Martin Thorley unpacks Lee’s links to the Chinese party-state and her involvement in British politics in this Twitter thread:


Further analysis and comment:
Who is Christine Lee? The Chinese ‘agent’ who rubbed shoulders with David Cameron and Xi Jinping. Oliver Wright. The Times, 13 January
China denies interfering in UK politics after MI5 alert. BBC, 14 January
MI5 warning shows tone has changed when it comes to China. Dan Sabbagh. The Guardian, 13 January
International
UK and India launch trade talks 'worth billions'. Indian trade minister Piyush Goyal and his UK counterpart Anne-Marie Trevelyan said there could be a limited agreement in the next few months. The UK government hopes that the deal could almost double British exports to India, and boost total trade between the countries by £28bn per year by 2035. BBC, 13 January
China and France hold 22nd strategic dialogue in Wuxi. According to CGTN, Emmanuel Bonne, President Macron’s diplomatic counsellor, and Chinese Foreign Minister Wang Yi agreed to enhance practical cooperation and shoulder important international responsibilities. Chinese Vice-President Wang Qishan says France should guide other EU members towards a ‘correct understanding of China’. CGTN, SCMP, 14 January
Fear of war dips in Taiwan despite rise in US-China tensions over island. An annual poll finds that Taiwanese fear of conflict in the coming months has fallen 15 percentage points in the past year. The survey results also showed high levels of trust in the US coming to Taiwan’s aid in the event of hostilities. The Guardian, 14 January
Naval association rejects Taiwanese members after pressure from China. Washington-based Naval Attachés Association (NAA) rescinded an invitation for Taiwan to join the organisation, which includes officers from US allies, after China strongly objected. The NAA case was a rare example of Beijing forcing a group in the US to sever ties with the island. FT, 13 January
US navy warship to provide hypersonic challenge to China. The United States has revealed plans for a next-generation destroyer that will become the principal escort to protect aircraft carriers and amphibious assault ships, especially when they are deployed to the Indo-Pacific region. The Times, 13 January
US 'sends carrier strike group' to South China Sea. The Telegraph, 13 January
UK universities benefitting from China’s difficult relations with the US. PIE News, 13 January
South Korea’s supply chain reliance on China leaves it more exposed than the US, Japan: report. SCMP, 12 January
‘Frank and in-depth exchange’ results in China-India border agreement. SCMP, 14 January
Economy & tech
China looks to secure supplies as strains with US and its allies grow. China’s economic agencies recently singled out “security” as a priority for 2022, according to official releases. Authorities are pledging to secure the supplies of everything from grains to energy and raw materials, as well as the processes involved in the production and distribution of industrial parts and commodities. WSJ, 13 January
Global surge in electricity use could bring three more years of price rises. The International Energy Agency recorded the steepest ever increase in electricity demand last year, which warned that countries must make major changes to how they generate electricity. About half of the growth in electricity demand took place in China alone, where it rose by an estimated 10% compared with 2020. The Guardian, 14 January
Beijing unveils grand plan to grow digital economy as US moves forward with competition bill. The plan endorsed a target that would see the output of core industries in China’s digital economy account for 10 per cent of the country’s GDP by 2025 and China become a leader in 6G standards-setting. SCMP, 13 January
China's annual crude oil imports drop for first time in 20 years. Beijing has clamped down on the refining sector to curb excess domestic fuel production while refiners drew down massive inventories. Reuters, 14 January
Evergrande buys six months of breathing room as bondholders approve plea to defer payments. SCMP, 14 January
China’s local governments rush to embrace metaverse despite state media warnings. SCMP, 13 January
China focus
Xi Jinping’s job is safe but China’s leadership is being shaken up. Having completed a decade in power, Xi is likely to defy convention and remain in office. But throughout the rest of the hierarchy, huge changes are under way. The Economist, 14 January
Chinese courts introduce punitive damages in environmental lawsuits. Xinhua, 13 January
Beijing takes steps to reduce traffic, pollution during Winter Olympics. Reuters, 14 January
Long reads & opinion
China is watching Ukraine with a lot of interest. Biden’s handling of Putin may tell Xi Jinping how resolutely the US would defend Taiwan. Michael Schuman. The Atlantic, 13 January
Lithuania is learning the cost of standing up to China. Without EU backing, it may be forced to sit back down. Anthony Faiola. The Washington Post, 14 January
How democracy can defeat autocracy. Autocrats are on the defensive as popular protests mount - but democracy’s fate depends on leaders delivering results. Kenneth Roth. Foreign Policy, 13 January
China looks to the Western classics. Latin and Greek courses are proliferating in China, where students see Classics as a wellspring of wisdom that remains relevant regardless of hemisphere. Chang Che. SupChina, 13 January