China News - 19 July 2022

International

China asks European leaders to meet Xi in November. Top European leaders have been invited to meet Chinese President Xi Jinping in Beijing in November but have yet to decide whether to accept. The SCMP’s Finbarr Bermingham reported that there was “heated debated” in Paris about whether European leaders should meet Xi. The trips would mark a return to Beijing for Western European leaders following almost three years of a zero-Covid policy that has prevented in-person diplomacy. SCMP, 18 July

Beijing says report it invited European leaders to meet Xi is 'fake news'. Reuters, 19 July

UK Modern Slavery Act: transparency in supply chains. Following a House of Lords debate on Baroness Stroud's amendment to the Procurement Bill, proposing a requirement for full disclosure in UK supply chains, the government confirmed that it will publish a blacklist of companies which are disbarred from public contracts on grounds of modern slavery. Arise (via Twitter), 18 July

US Senate to vote on slimmed-down China semiconductor bill. The legislation is expected to include $52 billion in subsidies for the industry and a tax credit for companies that manufacture semiconductors in the US. Congressional leaders had hoped to authorise that funding as part of the wider $250 billion US Innovation and Competition Act, but other measures designed to confront China’s growing technological power have now been dropped. Reuters, 19 July

European Council agrees a more concerted approach to the challenges posed by new digital technologies. To enhance the EU’s Digital Diplomacy in and with the US, the EU will soon open a dedicated office in San Francisco. The European Council stressed the importance of capacity building and the strategic promotion of technological solutions and regulatory frameworks that respect democratic values and human rights. European Council, 18 July

Nancy Pelosi to visit Taiwan next month. Nancy Pelosi plans to visit Taiwan next month to show support for Taipei, in what would be the first trip by a Speaker of the US House of Representatives to the country in 25 years. FT, 19 July

China demands US cancel potential arms sale to Taiwan. Nikkei Asia, 19 July

China, Vietnam agree to strengthen inter-party exchanges. People’s Daily, 18 July

Economy & tech

Chinese worth $48 billion want to leave — but will Xi let them? Some 10,000 wealthy Chinese are looking to leave with the second-largest predicted wealth outflow for a country this year. The big question hanging over them is whether Xi Jinping’s government will let them leave. Bloomberg, 19 July

TikTok owner ByteDance explores self-designed chips. ByteDance is looking into designing its own chips for its own use in specialised fields, joining a slew of Chinese internet giants focused on semiconductors as Beijing tries to become more self-sufficient in the critical technology. CNBC, 18 July

SoftBank halts work on Arm’s London IPO following political turmoil. The Japanese tech investor has paused a plan for a dual primary UK-US listing for the chip designer after Boris Johnson’s government collapsed earlier this month. FT, 18 July

China bond defaults hit US$20 billion in 2022, more than double last year’s total. SCMP, 19 July

China close to setting up iron ore trading giant. Caixin, 19 July

Long reads & opinion

Why did MI5 name Christine Lee as an 'agent of influence'? Gordon Corera. BBC, 19 July

Mortgage strikes threaten China’s economic and political stability. Worsening meltdown in the country’s property market is at the heart of a problem that comes at a precarious time for the CCP. Martin Farrer and Vincent Ni. The Guardian, 19 July

China’s cyber isolationism has severe security implications. The country can’t go it alone on internet security. Tim Culpan. Bloomberg, 18 July

Experts see challenges, opportunities for restricting Chinese military access to AI chips. Jon Harper. CSET, 18 July