China News - 18 October 2021

Event today - Banking on the Belt and Road: Join us for a discussion with experts from the AidData team as they break down China’s lending on the international stage. This virtual briefing will take place at 4pm BST and will be hosted by Tom Tugendhat MP. Register here.

International

UK says China is welcome to invest in non-strategic parts of economy. New international trade secretary Anne-Marie Trevelyan, leading Britain’s “global investment summit” this week, said China is welcome to carry on investing in non-strategic parts of the UK economy. Ministers hope that the investment summit will generate inward investment deals for the UK by bringing together some of the world’s top financiers. FT, 17 October

Top English private schools with board links to Chinese Communist Party. An investigation by The Times has revealed that leading English private schools operating in China are making tens of millions of pounds from franchises with various close ties to the CCP. CRG chair Tom Tugendhat commented: “British schools which open overseas branches need to be sure that the price they’re paying isn’t our values.” The Times, 18 October

Diplomats in last-ditch effort to bring world leaders to Cop26 table. The UK, the US and the EU are embarking on a frantic round of climate diplomacy in an attempt to bring key countries into a deal on greenhouse gas emissions before the Cop26 climate summit. The Guardian understands that Xi Jinping’s participation in person is still possible, and the UN said China still intended to participate. The Guardian, 15 October

Nato to expand focus to counter rising China. In an interview with the FT, secretary-general Jens Stoltenberg revealed a significant broadening of the western alliance’s objectives to include Beijing. FT, 18 October

China tested new space capability with hypersonic missile and fortified military airbases facing Taiwan. The launch in August of nuclear-capable rocket that circled the globe demonstrated an advanced space capability that took US intelligence by surprise. Satellite images by Planet Labs Inc also revealed three expanded and upgraded military airbases on China’s southeast coast. The Times, FT, The Telegraph, The Japan Times, Daily Mail, 16 October

China says Singapore ‘welcomes’ its bid to join CPTPP during phone talks on Friday. Singaporean Prime Minister Lee Hsien Loong told Xi Jinping in a call that Singapore "welcomes and supports" China's application to join the CPTPP, "which will benefit the prosperity and development of the region," a Chinese statement said. SCMP, NHK, Nikkei Asia, 16 October

Activists arrested in Greece over Beijing Olympic boycott demo. HKFP, Reuters, Politico, 17 October

With Beijing Games set to be held in empty stadiums as coronavirus lingers, IOC's Samaranch says Games about unity. SCMP, Reuters, 17 October

US lawmakers table new bipartisan bill to counter China's economic coercion. Axios, 16 October

China is launching equivalent of Royal Navy every four years. The Telegraph, 15 October

Chinese military condemns US and Canada over warships in Taiwan Strait. The Guardian, Reuters, Nikkei Asia, Al Jazeera, 17 October

Kishida’s offering to Japan war shrine angers China, South Korea. Bloomberg, NHK, 17 October

Economy & tech

China looks to lock in US liquefied natural gas in energy crunch. Major Chinese energy companies are in advanced talks with US exporters to secure long-term liquefied natural gas supplies, as soaring gas prices and domestic power shortages heighten concerns about the country's fuel security. Reuters, 17 October

Baillie Gifford criticised over China ties. Dame Helena Morrissey called for the City to review its practices in China after it was revealed that Baillie Gifford China holds a stake in BGI Genomics, which has been blacklisted in the US for “conducting genetic analyses used to further the repression of Uyghurs and other Muslim minorities”. The Telegraph, 17 October

China crackdown on Apple store hits holy book apps and Audible. Amazon’s audiobook service Audible and phone apps for reading the holy books of Islam and Christianity have disappeared from the Apple store in mainland China. SCMP, BBC, Daily Mail, 16 October

China’s central bank says spillover from Evergrande crisis ‘controllable’, but faces challenges from 'mismanagement' at certain firms as GDP growth slows. FT, NYT, Bloomberg, 18 October

China lags in important electric car technology despite rare earths advantage, says permanent magnets scientist. SCMP, 16 October

China focus

‘The time is now’: Xi Jinping calls on China to rally for common prosperity. Xi warned against government over-promising on social welfare amid a push to achieve "common prosperity" by mid-century, while demanding progress on a long-awaited property tax that could help reduce wealth gaps. SCMP, Reuters, 15 October

To firmly drive common prosperity. Xi Jinping (translated by Adam Ni). Neican, 18 October

Astronauts arrive at space station for China’s longest mission. The 90-day mission will set up equipment and test technology for future construction on the Tiangong station. The Japan Times, NPR, The Guardian, HKFP, CGTN, 16 October

Hong Kong’s ex-leader calls for boycott of Mayer Brown over Tiananmen statue dispute. HKFP, The Standard, Reuters, 18 October

Opinions & editorial

Boris Johnson has heavy lifting ahead if Cop26 is to succeed. Oliver Wright and Ben Webster. The Times, 16 October

China, coal and COP26: can the world’s biggest emitter give up its dirty habit? Those who helped fuel China’s growth fear for livelihoods, while power shortages create transition dilemma for Xi Jinping. Vincent Ni. The Observer, 17 October

Coal fires up an unlikely comeback ahead of Cop26. Jon Yeomans. The Sunday Times, 17 October

End to China’s estate market boom could spell trouble for the economy with repercussions far beyond China. Kevin Rudd and George Magnus. The Guardian, FT, 15 October

Despite the tough rhetoric, ministers are handing Britain's electric car production to China. Juliet Samuel. The Telegraph, 16 October

China's and Taiwan's duelling bids spell big opportunity for CPTPP. Toru Takahashi. Nikkei Asia, 17 October

Bellicose Xi tests West’s mettle over Taiwan. Edward Lucas. The Times, 15 October

LinkedIn’s unsustainable compromise in China. The Editorial Board. FT, 17 October

Longer reads

Beijing’s balancing act on China-US relations. Brian Wong. The Diplomat, 16 October

Has Interpol become the long arm of oppressive regimes? Josh Jacobs. The Guardian, 17 October

‘It was like having the Chinese government in the room with us’. China’s method for blocking sanctions regimes. Colum Lynch. Foreign Policy, 16 October

Will Europe ever really confront China? Stephen M. Walt. Foreign Policy, 15 October

Things Confucius never said. Mistaken and misrepresented quotes from China’s most famous philosopher. Sixth Tone, 16 October