China News - 14 July 2021

International

Threat to UK from hostile states could be as bad as terrorism, says MI5 chief. The chief of MI5 is to warn that the activities of China, Russia and other hostile states could have as large an impact on the public as terrorism, marking a significant shift in emphasis from the UK’s domestic spy agency. The Guardian, BBC, Reuters, 14 July

U.S. warns businesses connected to China’s Xinjiang region run ‘high risk’ of violating law. The updated advisory strengthens previous U.S. warnings to companies by highlighting potential violations of U.S. law if their operations are linked even “indirectly” to the Chinese government in Xinjiang. CNBC, Washtington Times, Politico, Reuters, 13 July

Blinken calls out China in meeting with ASEAN bloc ministers. Secretary of State Antony Blinken emphasized the U.S. rejection of China's "unlawful maritime claims" in the South China Sea in a virtual meeting with foreign ministers of the Association of Southeast Asian Nations (ASEAN) bloc. Reuters, 14 July

US vows to work with Australia to oppose China’s ‘unfair’ trade practices. The European Union is set to join as a third party if the dispute between Australia and China moves to the next stage at World Trade Organization. The Guardian, 13 July

China’s chip imports soar in June as manufacturers build up supply amid global shortage. Chips remain the largest product category imported by China. The country spent a total of US$38 billion on semiconductor imports in June, almost double the cost of its crude oil shipments in the same month. SCMP, 13 July

Chinese chipmakers prioritise domestic orders as capacity tightens. Some large industry players, including Huahong Group, have reportedly cancelled overseas orders to give priority to domestic companies, as global chip supplies fall short. Global Times, 13 July

Japan mentions Taiwan stability in defence paper for first time. Growing military tension around Taiwan, as well as economic and technological rivalry between China and the United States, raises the prospect of crisis in the region, Japan said in its annual defence white paper. Reuters, Japan Times, NYT, CNN, 13 July

Prime Minister Jacinda Ardern embraces NZ's inclusion in the 'Indo-Pacific' area. Interest NZ, 14 July

Turkey's Erdogan, China's Xi discuss Uyghurs. Reuters, 13 July

Germany launches ‘space command’ to counter Russian and Chinese supremacy. The Telegraph, 13 July

Hong Kong

‘Patriots’ only: foreign passport barrier to top job in Hong Kong. Candidates to become Hong Kong’s next chief executive — and the committee that vets them — will have to declare whether they or their spouses hold passports issued by any country other than China in an effort to ensure the process is “patriotic”. The Times, 13 July

Biden warning on Hong Kong spells fresh headache for HSBC. President's push to counter China's pro-democracy crackdown will make lender's operations in the US and Hong Kong harder to maintain. The Telegraph, 13 July

Beijing denies foreign firms at risk in Hong Kong. RTHK, 13 July

Hong Kong actor Jackie Chan says he wants to join the Chinese Communist Party. HKFP, Independent, 13 July

China focus

China bans pro-democracy candidates in Macau elections. The move mirrors the crackdown in Hong Kong and comes despite pledges the territory would have high levels of autonomy. The Guardian, 13 July

Chinese counties to ban unvaccinated adults from public facilities. Soon, only people with at least one shot of a COVID-19 vaccine will be able to visit hospitals and take public transport. Sixth Tone, RADII, 13 July

To improve governance, China ups control over its grassroots. A new document released by the Communist Party’s Central Committee and State Council vows to strengthen the authority of rural townships and urban subdistricts and place them under the more direct leadership of the party. Sixth Tone, 14 July

Extreme weather: Greenpeace warns of China climate risk. Al Jazeera, 14 July

Man in China reunited with son abducted 24 years ago. The Guardian, BBC, 13 July

Economy & tech

Rise in China’s imports and exports eases fears over global growth. In June alone, the country's imports and exports went up 22 percent year on year to 3.29 trillion yuan, marking an increase for the 13th month in a row. The Guardian, NYT, WSJ, 13 July

Global investors’ exposure to Chinese assets surges to $800bn. Holdings of Chinese stocks and bonds have surged to more than $800bn as investors bought assets in the country at a record pace in spite of souring relations between Beijing and the international community. FT, 14 July

Guangdong plans to build regional data centre in Shenzhen with coverage of Hong Kong and Macau. SCMP, 13 July

Longer reads & opinion

Hong Kong ‘doxing’ crackdown stirs further fears for business. Critics say data privacy law shake-up will cut access to information and hamper social media groups. Tabby Kinder. FT, 13 July

At the nexus of military-civil fusion and technological innovation in China. The interdependence of China’s innovation strategy with its military-civil fusion system enables it to leverage the global research and networks of the country’s own companies and universities Audrey Fitz. China Power - The Diplomat, 14 July

China locks up Xinjiang’s Uyghur businessmen; ‘In their eyes, we are all guilty’. Eva Xiao. WSJ, 14 July

Biden’s Asia policy should pivot to digital. Bobby Ghosh. Bloomberg, 13 July

Why Pakistan-China relationship will become even more crucial. Tridivesh Singh Maini. Modern Diplomacy, 14 July

Power of symbolism: The swim that changed Chinese history. James Carter. SupChina, 14 July