China News - 2 August
International
Joint statement of the People’s Republic of China and Georgia on establishing a strategic partnership. During the Chengdu FISU World University Games in China Georgian Prime Minister, Irakli Garibashvili, and Xi Jinping exchanged views on bilateral relations and international and regional issues. The two countries decided to elevate bilateral relations to a strategic partnership. Xinhua, 31 July
Joe Biden to ask Congress to fund Taiwan arms via Ukraine budget. The Office Management and Budget will include the funding for Taiwan in an effort to accelerate the provision of weapons. If passed, Taiwan will get arms through the US taxpayer-funded system “foreign military financing”. Demetri Sevastopulo and Felicia Schwartz. Financial Times, 2 August
China wants to mobilise entire nation in counter-espionage. The State Security Ministry said that China should encourage its citizens, and make it “normal” to join counter-espionage work. This follows an expansion of China’s counter-espionage law that took effect in July. The law has raised concern among international businesses as foreign companies in China could be punished for regular business activities. Ryan Woo. Reuters, 1 August
Taiwan boosts counter-espionage effort after suspected China infiltration. Taiwan’s military vowed to step up counter-espionage efforts as authorities investigated several serving and former military officers suspected of spying on behalf of China. Reuters, 2 August
Former top State Department China official joins Eurasia Group. The US State Department’s former top China policy official, Rick Waters, has joined the Eurasia Group after nearly 30 years as a diplomat. Michael Martina. Reuters, 1 August
Australian lawmakers recommend potential WeChat ban on government devices. A senate committee investigating how foreign powers use social media to interfere in Australia has recommended new rules and restrictions for social media platforms. TikTok and WeChat pose “unique national security risks”. Lewis Jackson. Reuters, 1 August
England thrash China to last 16. England beat China 6-1 in the Women’s World Cup. Emma Sanders. BBC Sport, 1 August
Economy & Tech
Tech cold war: South Korea pivots from China to US. Korea’s Trade Minister, Ahn Duk-geun, has said that Beijing’s policy to “arbitrarily interfere with business” is driving Korean companies to reduce their exposure to China. Washington is courting chipmakers and battery manufacturers to loosen ties with their opposing market. Christian Davies. Financial Times, 1 August
China’s overseas investment in metals and mining set to hit record. China has already invested $10bn into the mining and metals sector this year. The investments have spanned Africa, Asia and South America, which reflects Xi’s ambitions of economic self-reliance as he seeks to fortify China against the impact of rising geopolitical tensions with the US. Edward White. Financial Times, 1 August
China’s steel sector invests $100 billion in coal-fired plants despite overcapacity and carbon promises. Provincial governments have approved a huge number of new emissions-intensive steel plants. By the time these plants are fully operational around 2025, their carbon emissions will be roughly equal to the entire emissions of the Netherlands according to CREA. Yujie Xue. South China Morning Post, 1 August
Chinese developer’s cancelled share placement fuels property sector woes. One of China’s biggest property developers, Country Garden, has abruptly abandoned a $300mn share placement. This sent its stock down 10%. Thomas Hale and Cheng Leng. Financial Times, 1 August
China pledges financing support for small firms amid weak economic recovery. Chinese ministries, regulators and the central bank will encourage financial institutions to offer urgent, targeted and diversified support to some small and medium enterprises. Ellen Zhang and Ryan Woo. Reuters, 1 August
Opinion & long-reads
The “Over-exposed” report creates a new model of assessment for the solar industry and its supply chains to identify exposure to state-imposed forced labour in the Uyghur region. Sheffield Hallam University have published a follow-up report to their ground breaking 2021 research into Uyghur forced labour in solar supply chains. Sheffield Hallam University
China’s new Patriotic Education Law reveals Xi’s deepest fears for the future. The new law codifies existing practices, but now expands its scope to include Hong Kong, Taiwan, Macau and the internet. This indicates that the CCP feels its biggest vulnerabilities are youth, cyberspace and control of territories outside of mainland China. Kathy Huang and Kay Zou. The China Project, 1 August
“If I left, I’d have to go without a word”: how I escaped China’s mass arrests. An adaptation of Waiting to be Arrested at Night: a Uyghur Poet’s Memoir of China’s Genocide. Tahir Hamut Izgil. The Guardian, 1 August
11 killed in Beijing as heavy rains hit city for a fourth day. More than 52,000 people have been evacuated, 11 have been reported dead and 26 are missing as a result of Typhoon Doksuri. The Guardian, 1 August