China News - 18 December 2020
This is the final daily newsletter of the year. We will resume after the holiday break on 5 January 2021.
International
EU revives hopes of last-minute investment deal this year with China. China said talks with the European Union on a bilateral investment deal are in the final stages, citing progress between negotiators as they push for an agreement before a year-end deadline. SCMP reports that the deal, in the making since 2013, has the backing of German Chancellor Angela Merkel and French President Emmanuel Macron. The FT report includes detail around terms of an agreement; the EU is seeking to improve market access for European companies by enshrining sector-by-sector commitments. China is seeking to guarantee rights to invest in parts of the EU economy, notably the energy sector. Bloomberg, FT, SCMP, Twitter thread (analysis by Noah Barkin), 18 December
British Army wants Cold War plan for China. The chief of the defence staff, General Nick Carter, said the West needs to devise a long-term strategy to defend itself against Beijing’s expansionism akin to that adopted at the outset of the Cold War. Carter made the comments in his annual lecture to the Royal United Services Institute. The Times, 18 December
Major new Pentagon 2021 maritime strategy has Beijing’s South China Sea activities in its sights. The Pentagon has warned that US maritime forces will become more forceful in responding to acts of aggression, expansionism, and breaches of international law, citing China and Russia in particular as “determined rivals”. SCMP, The Guardian, 18 December
Australian cabinet reshuffle sees new trade minister and China critic in defence. Andrew Hastie, previously barred from visiting China, was appointed assistant defence minister. Dan Tehan has been named as new trade minister. Reuters, 18 December
Coronavirus: UK ambassador to China marks bond with Wuhan amid pandemic observances and university ceremony. The British ambassador to China officiated the opening of new Chinese headquarters in Wuhan for Manchester Metropolitan University on Tuesday. SCMP, 17 December
China a no-show at joint military safety meeting with US, as planned bilateral discussion falls through. WSJ, 18 December
Chinese journalist, Du Bin, who documented communist history is detained in Beijing. He has worked as a freelance photographer for the NYT. NYT, 18 December
US set to add around 80 additional Chinese companies and affiliates to blacklist, including SMIC. Reuters, 18 December
US Treasury seeks to water down Trump’s Chinese securities ban. FT, 18 December
China watch
China to vaccinate 50 million people for Lunar New Year, with second batch of doses administered by 5 February. SCMP, 17 December
Xi's thinking guides Chinese military toward modernization by 2035. Xinhua, 18 December
China to provide financial support to key foreign companies. Companies operating in key areas, including medical equipment and auto manufacturing, will be eligible for financial support. Bloomberg, 17 December
Economy & tech
Alibaba says its technology won't target Uyghurs, will remove from ethnic tag from facial recognition. BBC, 18 December
Huawei to build 200 million euro network equipment plant in NE France, marking its first factory in Europe. Xinhua, Reuters. Samsung works its way into European 5G race to fill Huawei gap. Reuters, 18 December
Deepmind shows need for deep pockets to pay for AI, using up £1.6bn in capital. The Times, 18 December
Longer reads & opinion
UK and China: how the love affair faded. Patrick Wintour in The Guardian, 18 December
How Britain will counter China’s wolf-warrior diplomacy. On a D10, T12 and more. James Forsyth in The Spectator, 17 December
Did universities export more to China in 2019 than any other sector? Department for Education and Cambridge Econometrics data suggests that higher education exports to China in 2019 were worth £4 billion. HEPI, 18 December
As the face of China’s foreign policy, the belt and road will survive debt and coronavirus. With no fixed goalposts, recent setbacks to projects that fall under its umbrella can be woven into the narrative of China’s march towards greater engagement with the world. SCMP, 18 December
Analysis: Xi sees Alibaba and Tencent as rising threats to power. Nikkei Asia, 17 December
The influence environment. New ASPI report on the role of WeChat in dividing Chinese-language media in Australia. ASPI, 17 December
Party Committees in the Private Sector: Rising Presence, Moderate Prevalence. Macro Polo, 16 December