China News - 19 July 2021
International
US sanctions Chinese officials over Hong Kong democracy crackdown. The sanctions were imposed on Friday on seven Chinese officials over Beijing's crackdown on democracy in Hong Kong. The sanctions, posted by the US Treasury Department, target individuals from China's Hong Kong liaison office. Reuters, CNN, Al Jazeera, 16 July
Companies in Hong Kong fear being crushed between China and US. US business groups say a Biden administration warning about the risks of operating in Hong Kong has made life harder for them. FT, 18 July
China wants a chip machine from the Dutch. The US said no. Beijing has been pressuring the Dutch government to allow its companies to buy ASML Holding NV’s marquee product: a machine called an extreme ultraviolet lithography system that is essential to making advanced microprocessors. But ASML hasn’t sent a single one because the Netherlands—under pressure from the US—is withholding an export license to China. WSJ, Global Times, 17 July
Tencent snaps up British video game developer Sumo in £919 million deal. It is the second major deal involving a British video game company over the past year, with shareholders in Sheffield-based Sumo set to receive a 43% premium to the last share price. Tencent is the world's second-largest videogame group by revenue after Sony. Reuters, 19 July
Military chief reveals secret new role for special forces against China and Russia. Britain’s special forces will take on a new covert mission against China and Russia as they shift their focus to countering “big state adversaries”, a senior military chief has revealed. The Times, Daily Express, 17 July
US plots spy base in UK to counter space threats from Russia and China. Current plans are for the first base to be operational by 2025. iNews, The Guardian,17 July
Glasgow University urged to cut ties with Chinese college linked to Uyghur surveillance. Glasgow University has a joint undergraduate college with China’s University of Electronic Science and Technology of China (UESTC), from where some graduates go on to work for the Xinjiang-linked China Electronics Technology Group Corporation (CETC). The Times, 18 July
Yellen says China trade deal has ‘hurt American consumers’. The Treasury secretary said an agreement made by the Trump administration, which remains under review, had failed to address fundamental problems between the two countries. NYT, 16 July
Tensions remain high as hopes dashed for breakthrough in China and India stalemate. A military build-up continues ‘like never before’ on both sides of the 2,100-mile border despite high-level talks. The Guardian, 18 July
China takes firm stand against regime change in Syria. Wang Yi made the remarks in a meeting with Syrian President Bashar al-Assad as part of his second visit to the Middle East this year. SCMP, 19 July
Blast that killed Chinese workers in Pakistan was a terrorist attack, officials say. NYT, 19 July
China brings its navy drills closer to home to focus on core issue: Taiwan. SCMP, 19 July
Chinese ambassador to South Korea in hot water over 'political interference'. The Korea Times, 18 July
Pentagon drones ‘8 to 14 times’ costlier than banned Chinese craft they are set to replace. FT, 18 July
China focus
China is keeping its borders closed, and turning inward. Zero tolerance for the virus, combined with rising nationalism, breeds isolationism. The Economist, 17 July
China’s health authorities criticise bans on the unvaccinated. China’s top health authority criticised a series of coercive local vaccine mandates on Friday, stressing that inoculation against COVID-19 should be “voluntary.” Sixth Tone, 17 July
China markets the remains of Anbang empire for $5.2bn. FT, 18 July
Economy & tech
US needs Japan and Korea to counter China tech, says ex-Google CEO. In an online interview, Schmidt, now chair of the National Security Commission on Artificial Intelligence, said China was closing in on the US in certain areas of AI and quantum computing — faster than his previous estimate of “a couple of years”. FT, 18 July
Ericsson warns of China retaliation following Sweden’s Huawei ban. Revenues generated in China in the second quarter fell from SKr4.1bn ($470m) a year ago to SKr1.5bn, causing Ericsson’s overall group sales to drop for the first time in three years. FT, 16 July
The failure of China’s microchip giant tests China’s tech ambitions. Tsinghua Unigroup, a would-be microchip champion, is facing bankruptcy, representing a setback in China’s quest for semiconductor self-reliance. NYT, 19 July
China’s Xiaomi overtakes Apple in the global smartphone market. CNBC, 16 July
How China is helping to dampen global inflation. WSJ, 17 July
Longer reads & opinion
China's already spending billions on overseas investments. Does it need to fund security, too? The death of nine Chinese workers in a bus explosion in Pakistan has underscored the security risks attached to China's overseas projects. Nectar Gan. CNN, 19 July
Society: The Sponge Revolution. The CCP is undertaking of the biggest park-building initiatives in history. Eyck Freymann. The Wire China, 19 July. How nationalism is making life harder for gay people in China. The Economist, 17 July.
Energy: Carbon market faces slow burn to success in China. Katrina Hamlin. Reuters, 19 July. How Serbia became China’s dirty energy dumping ground. Vuk Vuksanovic. Foreign Policy, 16 July
Tech: In the New China, Didi’s data becomes a problem. WSJ, 18 July. Where does China’s digital currency stand? China Power - The Diplomat, 17 July. China knows the power of 5G. Why doesn’t the US? Foreign Policy, 17 July
Comment: Lithuania leads way in standing up to China. Edward Lucas. The Times, 19 July. China is worried about a post-U.S. Afghanistan. Foreign Policy, 16 July. Opinion: Civilised nations’ efforts to deter Russia and China are starting to add up. George F. Will. Washington Post, 16 July