China News - 17 June 2021
Upcoming events:
Rescheduled: Briefing on PRC disinformation targeting the UK with three leading disinformation experts from the University of Oxford. 10am on Thursday 24 June. Register here.
New paper launch: NATO for Trade? Rethinking economic alliances with a rising China with Rob Atkinson (President of ITIF), Reinhard Butikofer MEP (Co-chair of European Greens) and Agatha Kratz (Rhodium Group). 5pm on Tuesday 28 June. Register here.
International
Hong Kong police arrest editor-in-chief of Apple Daily newspaper in morning raids. Hong Kong national security police have arrested the editor-in-chief and four other directors of the Apple Daily newspaper in early morning raids involving 500 officers, over their role in the publication of dozens of articles alleged to be part of a conspiracy to collude with foreign forces. It is the first use of the national security law directly against journalists. The Guardian, FT, 17 June
New Zealand looks to UK and EU to diversify market beyond China. New Zealand’s trade minister Damien O’Connor said the country would aim to agree free trade deals with the UK and EU this year in a bid to diversify its export markets amid rising tensions with China. But he also insisted Wellington would continue to expand its trading relationship with Beijing despite “ructions”. FT, 17 June
Edinburgh University’s China links ‘not a propaganda tool’. Principal Peter Mathieson said that Confucius Institutes, international language and culture hubs funded by the Chinese Communist Party, were too insignificant to be used for peddling influence. The Times, 17 June
Snubbing China’s Belt and Road Initiative could be disastrous, expert tells Mario Draghi. Italy risks provoking a “disastrous” economic boycott if it pulls out of China’s Belt and Road Initiative, according to an expert who helped arrange the deal. The Times, 17 June
China’s European investments in downward trend, 10-year low amid coronavirus pandemic, political tensions: report. The UK, which ranked as the third overall recipient of Chinese FDI in Europe, recorded a drop of 77 percent in inbound Chinese investment in 2020. SCMP, MERICS report, 16 June
China attempting to ‘seize control’ of multilateral organisations to ‘weaponise’ them, UK report says. China and other nations were attempting to “seize control” of strategically important international organisations so they could be “weaponised”, a new report by the UK parliament’s Foreign Affairs Committee said. SCMP, full report, 17 June
Influential German industry group BDI criticises China over new sanctions law. Reuters, 16 June
Morrison says Indo-Pacific must remain ‘secure and resilient’ in speech at OECD The Guardian, 16 June
U.S. needs ‘combat-credible’ forces to deter Chinese aggression, Ely Ratner says. Bloomberg, 16 June
China focus
Xi Jinping picks top lieutenant to lead China’s chip battle against US. Liu He has been tapped to spearhead the development of third-generation chip capabilities. Bloomberg, 17 June
First astronauts blast off for China’s new space station. Three astronauts were expected to dock with Tianhe, the main section of the Tiangong station, about six to eight hours later. The Guardian, 17 June
Taishan nuclear plant: China admits damage to fuel rods but said no radioactivity had leaked. BBC, 17 June
More China coal investments overseas cancelled than commissioned since 2017 - research. Reuters, 16 June
China to crack down on online fanclubs over child bullying concerns.The Guardian, 16 June
Economy & tech
Nuctech: After nixed X-ray machine deal, Canadian MPs call for banning Chinese state firms from security equipment contracts. A new committee report found there is no effective government strategy in place to manage security risks around China and federal procurement. National Post, 16 June
TikTok owner ByteDance’s annual revenue jumps to $34.3 billion. Gross profit rose 93% to $19 billion, with 1.9 billion monthly active users. WSJ, 17 June
Chinese ride-hailing giant Didi faces probe ahead of market debut, says report. BBC, 17 June
Blackstone strikes $3bn deal for office developer Soho China. It is Blackstone’s biggest bet so far on a recovering Chinese real estate market. FT, 16 June
Covid outbreaks in Chinese ports could cause global goods shortages. With 150 cases in Guangzhou city, shipping costs have spiked. The Guardian, 16 June
Longer reads & opinion
China Repackages Its History in Support of Xi’s National Vision. Some Chinese historians have criticised the new Chinese Academy of History’s methods, set up two years ago in the wake of Xi’s efforts to forge the “correct outlook on history” ahead of the party’s centenary. WSJ, 17 June
Gangs replace rules in the new global order. Joe Biden’s week of summitry reclaims US leadership of the west as the world returns to great power rivalry argues Philip Stephens, in the FT, 17 June
How Xi’s China came to resemble Tsarist Russia. The most accurate political comparison for today’s China is 19th century Russia, argues Jamil Anderlini in the FT, 17 June