China News - 16 December 2021
International
Lithuania pulls diplomats from China as row deepens over Taiwan ties. According to people familiar with the situation, the Chinese government had demanded Lithuania’s remaining diplomats in Beijing hand in their IDs to have their diplomatic status lowered. The move raised concern in Vilnius that the officials could lose diplomatic immunity, putting their safety at risk if they remained in China. British foreign secretary Liz Truss criticised the "unacceptable pressure" by Beijing. FT, The Telegraph, 15 December
Xi and Putin cement partnership in face of Western pressure. "China and Russia should increase their joint efforts to more effectively safeguard the security interests of both parties,” Chinese state-run media quoted Xi as saying during a virtual meeting. According to a Kremlin aide, Xi also pledged to support Russian demands for guarantees that Nato will not expand any further into eastern Europe. Reuters, FT, The Times, 15 December
Beijing criticises UK for creating ‘second-class citizens’ with Hong Kong visa scheme. “In flagrant violation of its international commitment, the UK tries to turn many Hong Kong residents into ‘second-class citizens’ in the UK and reap benefit from this,” foreign ministry spokesperson Zhao Lijian said after new figures showed almost 90,000 people have applied from the former British colony to resettle in the UK. The Guardian, 16 December
Hackers backed by China seen exploiting security flaw in internet software. Microsoft warned that the involvement of hackers whom analysts have linked to nation-states underscored the increasing gravity of the flaw in Log4j software, a free bit of code that logs activity in computer networks and applications. WSJ, CNN, 15 December
Taiwan opposition clings on for political relevance as voters shun Beijing. The KMT is pinning its hopes on four referendums to reinvigorate its political fortunes. FT, 16 December
Pentagon worries about Chinese buildup near India. China’s buildup of new airports and highways near the border fit the pattern of Chinese regional aggression seen elsewhere in the Indo-Pacific region, according to a senior US defence official. Foreign Policy, 16 December
Germany sends warship through South China Sea for first time in 20 years. The Times, 15 December
US sanctions Chinese drugmakers amid addiction epidemic. The Guardian, 16 December
Japan PM Kishida says he has no plan to visit Beijing Olympics. Reuters, 16 December
China focus
Fretting about data security, China's government expands its use of 'golden shares'. The Chinese government has been expanding its practice of taking minority stakes in private companies beyond those specialising in online news and content to firms possessing large amounts of key data, two people with knowledge of the matter said. Reuters, 16 December
Combative Global Times editor Hu Xijin retires. Hu became a leading voice of strident nationalism with millions of social media followers. Bloomberg, 16 December
Omicron’s arrival in China is set to strand workers for the Lunar New Year. The Washington Post, 16 December
Economy & tech
Kaisa offshore investors in talks to buy group’s distressed loans; Evergrande sued by domestic creditors. International investors in Kaisa are in talks to buy up to $1bn of the Chinese property developer’s distressed loans from mainland banks, in a push to gain information about its opaque restructuring process as the sector reels from the collapse of Evergrande. Meanwhile, Chinese creditors have sued property giant Evergrande for more than $13bn in allegedly overdue payments as Beijing scrutinises the company’s assets. FT, 16 December
Semiconductor troubles cloud Beijing’s efforts for self-sufficiency as US mulls tougher sanctions. One major challenge for China is homemade equipment, which is technologically far behind imported equipment, according to experts. SCMP, 15 December
China chipmaker’s major shareholder said to reject rescue plan. Bloomberg, 15 December
Apple blocks mainland Chinese users from seeing some geographic information on its Compass app. Under Chinese law, foreign organisations must acquire a licence from the State Council and the Chinese military to carry out surveying and mapping activities. SCMP, 15 December
Lombard Odier: Alibaba, Tencent and Chinese tech stocks are good value with policy conditions priced in. SCMP, 16 December
SenseTime plans Hong Kong IPO relaunch Monday, sources say. Reuters, 16 December
Opinion & editorial
The downfall of Evergrande foreshadows a difficult decade for China – and for Xi Jinping. If the Chinese Communist Party doesn’t handle the property giant’s default carefully, the economic and political consequences could be seismic. George Magnus. The New Statesman, 15 December
How the Olympics boycott saga is a proxy battle for global influence. The diplomatic boycott of the Winter Olympics could backfire if only a few other countries follow suit and Beijing spins the narrative to its advantage. Ahmed Aboudouh. The Independent, 15 December
The UK’s political attack against China and Russia will only deteriorate global cyberspace. Fang Xingdong. Global Times, 15 December
The West needs to understand that China's people are not a monolith. Nothing boosts hyper-nationalist sentiment more than outside condescension. Brian Wong. Nikkei Asia, 15 December
Long reads
Why are China’s paid internet trolls so bad at Twitter? China’s state-linked influence operations get very little engagement. Josh A. Goldstein. Foreign Policy, 15 December
Hong Kong's jailed, exiled democrats lament Sunday election. James Pomfret. Reuters, 16 December
Will Germany depart from the Merkel Model on China? Beijing will have a say. Lily McElwee. The Diplomat, 15 December
Digital currency, VR, and green tech at 2022 Winter Olympics in Beijing. Jess Pottinger. RADII, 16 December