China News - 17 November 2021
International
Cyber attacks on the UK hit new record - with COVID vaccine research prime target. A review by the National Cyber Security Centre found that a number of the incidents were linked to hostile states, declaring that China was a "highly sophisticated" operator in cyberspace with a proven interest in the UK's commercial secrets. In the 88-page document, the NCSC said: “how China evolves in the next decade will probably be the single biggest driver of the UK's future cyber security.” Sky News, 17 November
Nvidia bid for Arm: UK orders competition investigation. Nadine Dorries, the digital and culture secretary, has ordered the UK competition watchdog to launch a 24-week “phase 2” investigation into the takeover of the Cambridge-based chip designer Arm by its US rival Nvidia on public interest grounds, citing competition and national security concerns. Gov.uk, The Guardian, 16 November
UK reaffirms commitment to reforming UN Security Council. Through a statement delivered by Ambassador James Roscoe at the Security Council reform General Assembly debate, the UK expressed support for the expansion of the Security Council in both permanent and non-permanent categories and the creation of new permanent seats for India, Germany, Japan and Brazil, as well as permanent African representation. Gov.uk, 16 November
Biden administration to announce diplomatic boycott of Beijing Olympics, report says. Citing several sources familiar with the plans, The Washington Post reported that US President Joe Biden is set to approve a formal recommendation that neither the president nor any other US government officials are to attend the Beijing Winter Olympics 2022. Washington Post, Independent, 16 November
EU shelves Taiwan trade upgrade amid high-wire balancing act on China. According to the South China Morning Post, the European Union has postponed a confidential plan to upgrade its trade ties with Taiwan amid concerns among certain parliamentarians that relations with Beijing could deteriorate further. SCMP, 17 November
China's EU envoy says no flexibility on Taiwan, sanctions, trade. Reuters, 16 November
US commerce chief sees Indo-Pacific economic framework early next year. Reuters, 17 November
China must pick up phone for backing on CPTPP, Australia says. Al Jazeera, 17 November
Naomi Osaka expresses ‘shock’ over missing Chinese tennis star Peng Shuai. The Guardian, 17 November
Summary: Biden-Xi meeting
Whilst Monday’s virtual summit between Joe Biden and Xi Jinping did not necessarily herald a thaw in bilateral relations, it established a dialogue that can be built on and has already signalled substantive breakthroughs in areas such as nuclear proliferation and easing restrictions on journalists. BBC China Correspondent Stephen McDonell has been covering them in this Twitter thread:
Politico’s China Watcher also provided a special edition summary of the key takeaways from the meeting, which you can read here.
Economy & tech
China's key industries could hit peak coal use by 2024. The four industrial sectors that make up more than 86% of total coal consumption and more than 70% of total carbon emissions in China - power, steel, cement and coal chemical production - could hit peak use of the dirty fossil fuel around 2024, a government researcher said on Wednesday. Reuters, 17 November
Australian PM says 63 areas of technology are critical to national security. Scott Morrison said on Wednesday more than 60 areas of technology were critical to the national interest and promised millions of dollars in funding to keep strategic rivals from controlling industries from cyber security to medicine. Reuters, 17 November
Chinese corporate bond defaults likely to continue to increase in 2022, Moody’s says. Offshore corporate bond defaults rose 28% in the first three quarters of 2021 as highly indebted property developers and enterprises owned by regional and local governments struggle to access new funding after a multi-year borrowing spree. SCMP, 17 November
Eleven British firms chosen by Alibaba's Tmall to pitch during world's 'biggest shopping event' Single's Day. This is Money, 16 November
Secretive Chinese committee draws up list to replace US tech. Bloomberg, 16 November
Hong Kong AmCham president resigns over city's quarantine rules. Reuters, 16 November
China focus
Beijing condemns 'money worship', corruption of reform era in key document. China's ruling Communist Party slammed the "money worship", "extreme individualism" and corruption that emerged in the four decades since the country opened up, calling for stronger party leadership and moral discipline in a key resolution released on Tuesday. Reuters, 16 November
Number of newlywed couples in China drops amid concern over falling birth rates. The latest data from the Civil Affairs Ministry shows that the number of couples marrying in China fell by nearly 20 per cent this year, suggesting an accelerated decline in the country’s rapidly falling birth rate. The Times, 16 November
Coronavirus: China tightens entry rules for Beijing ahead of Winter Olympics. SCMP, 17 November
Chinese newsgroups warned of penalties for internet information violations. SCMP, 17 November
Guanyu Zhou becomes first Chinese F1 driver after signing for Alfa Romeo. BBC, 16 November
Opinion & editorial
Chinese threat calls for Five Eyes expansion. As Beijing eyes Taiwan and cosies up to Russia, the intelligence alliance needs the help of Japan. Roger Boyes. The Times, 16 November
Talks between Xi Jinping and Joe Biden do not herald a thaw. The two presidents spoke about managing dangerous tensions, but an ice age looms. Chaguan - The Economist, 16 November
Biden-Xi summit highlights tensions – and desire for cooperation. While the depth of division remains clear, the two leaders showed willingness to move in positive direction. Vincent Ni. The Guardian, 16 November
Western brands aim for the sky in Xi Jinping’s China. Brooke Masters. FT, 17 November
Long reads
Germany can learn from Japan’s China strategy. Berlin should import policies from another economic power that has had to balance economic priorities, national security interests, and the defence of democratic values in its relationship with China. Noah Barkin. Foreign Policy, 16 November
China’s content manipulation reaches new frontiers. Through a combination of industrial scale and technological clout, the CCP is increasing the reach of its influence operations. Sarah Cook. The Diplomat, 16 November
Erasing life itself: Apportioning blame for the Uyghur atrocities in Xinjiang. Ruth Ingram. The New Arab, 16 November
For Chinese men, starting a family now comes at a price. Women have long paid a steep penalty for starting a family, but this used to be offset, at least partially, by a “fatherhood premium.” Those days are over. Xu Qi. SixthTone, 17 November