China News 2 June 2020
International
Hong Kong
UK Parliament debating Hong Kong. Foreign Secretary Dominic Raab said the direct imposition of the security law by Beijing is a “clear violation” of the Sino British joint declaration. He said the UK would “not just look the other way when it comes to the people of Hong Kong.” Shadow Foreign Secretary Lisa Nandy said “the world is watching” Hong Kong. Parliament Live
Police ban Tiananmen vigil for first time in 30 years. Hong Kong and Macau, where smaller planned events have also been cancelled, are the only jurisdictions in China where such memorial services were previously allowed. FT, 1 June
Beijing will “fully direct” HK police. It will also establish new security agencies in the city. Jerome Cohen blog, 2 June
The detentions that serve as a warning to Hong Kong. The FT looks at the way Beijing uses vaguely defined security laws to encourage self censorship. It looks at the jailing of human rights activists, including Nobel prize winner Liu Xiaobo, who died in police custody; human rights lawyer Yu Wensheng, tried in secret last month; Uyghur rights academic Ilham Tohti, jailed for life; Canadians Michael Spavor and Michael Kovrig, jailed in retaliation for the arrest of Huawei’s CFO; and jailed rights activists Li Ming-che and Huang Qi. FT 1 June
Beijing rallies celebrities and institutions to support security law. Film star Jackie Chan endorsed the new law, along with university chancellors. However, some celebrities denied they had signed up. RTHK, HKFP, Taiwan News, 1 June
HK bankers, lawyers and professionals under pressure to back Beijing. The NY Times looks at growing pressure within HK businesses to voice support for Beijing. It notes the case of Cathay Pacific employees sacked for pro-democracy blogs. NY Times, 31 May
EU expresses “grave concern”, on Hong Kong and will “raise the issue in our continuing dialogue with China.” Statement, 29 May
State media warns UK not to ally with US on Huawei or face same fate as “foolish” Australia. The Global Times condemns the UK's idea of a “D10” group of democracies and warns: If the UK allies with the US against Huawei, that means taking sides between the two biggest economies and blindly following the US in a technological Cold War with China. In that case, the UK cannot expect China to treat it the same as before in terms of economy and trade. Britain should avoid being manipulated by the US and serving the latter's interests as foolishly as Australia. German Chancellor Angela Merkel said in January that she would advise against regarding China as a threat "simply because it is economically successful." It would be wise for European countries to consider this advice. It's in their interests to treat advanced technology fairly and rationally.” Global Times, 31 May
Recordings of internal W.H.O. meetings, reveal top officials frustrations about a lack of information from China in January. In the second week of January, WHO’s chief of emergencies, Dr. Michael Ryan, told colleagues it was time to “shift gears” and apply more pressure on China. “This is exactly the same scenario, endlessly trying to get updates from China about what was going on,” he said. “WHO barely got out of that one with its neck intact given the issues that arose around transparency in southern China.” AP, 2 June
China weighs risk US will go for ‘nuclear option’ and cut Beijing from the dollar payment system. The risk of a financial war, including being cut off from the US dollar system, is no longer “unthinkable” for China. If Washington were to sever China’s corporate and financial system from the US dollar payments system it could start a financial tsunami that would lead global finance into uncharted territory. SCMP, 1 June
Next G7 to welcome India, South Korea and Australia. The UK and other members said they would veto an invitation to Russia. The SCMP reports that “Trump’s suggestion to expand the group piggybacks on a British proposal to form a “D10” alliance of democracies to coordinate policy in the face of global concerns about China.” SCMP, 2 June
US will deny access to students with links to the PLA. Statement, 1 June
Cambodia Denies China’s Navy Granted Basing Rights in Cambodia. The Diplomat, 1 June
Pompeo says U.S. considering welcoming Hong Kong people. Reuters, 1 June
Chinese state media highlights US riots. Hu Xijin, the editor of the Global Times said “I want to ask Speaker Pelosi and Secretary Pompeo: Should Beijing support protests in the US, like you glorified rioters in Hong Kong?” The Global Times says “Poor, vulnerable hopelessly suffer in the US.” China’s Foreign Minister said: “Black lives matter and their human rights should be guaranteed.” Hua Chunying, a spokeswoman for China's foreign ministry, tweeted "I can't breathe." CNN, CGTN, Global Times, Bloomberg, 1 June
Economy / tech
Telefonica Deutschland picks Ericsson for 5G, citing security concerns. Telefonica Deutschland CEO Markus Haas said, “we have a special social responsibility to provide secure networks.” Germany is debating the role of Huawei. CDU Chairman of the Foreign Affairs Committee Norbert Röttgen welcomed the move, but said the government should now also legislate. Reuters, Twitter, 2 June
Huawei turns to mobile chip rivals to beat US pressure. As pressure grows on Huawei it is said to be in talks with MediaTek, the world’s second-largest mobile chip developer, and Unisoc, China’s second-largest mobile chip designer, in order to keep its consumer electronics business afloat. FT, 1 June
“Huawei hiring global genius youth amid US chip ban.” Global Times, 1 June
Tariffs on Hong Kong will have minimal effect. PIIE, 1 June
Nikkei Asian Review takes a detailed look at Beijing’s $2 trillion infrastructure and innovation package. Nikkei Asian Review, 1 June
China tells state firms to halt purchases of major U.S. farm products. China has told state-owned firms to halt purchases of soybeans and pork from the United States. Reuters, 1 June
De-listing Chinese companies plays straight into their hands. Harvard Professor Jesse Fried argues a new US law passed by the Senate will simply lead to Chinese firms delisting in the US and listing back in China, while enriching their managers. FT, 1 June
Events
“In Conversation with Tom Tugendhat MP”. Radix, 4 June, 3pm
“British policy towards China after Brexit.” Discussion with Richard Graham MP and Matthew Rouse. Video
The struggle for migrants workers rights in China. Oxford China Centre, 4 June
Longer reads and comment
Dominic Lawson: At last, we're showing some backbone. Daily Mail, 1 June
The Chinese Reassessment of Interdependence. “China today feels profoundly vulnerable to its dependence on the United States. Despite its massive size and scale, its leaders’ belief in its own insecurity remains powerful.” - PRC Leadership, 1 June
How is commercial aviation propelling China’s economic development? ChinaPower, 1 June
Shuli Ren: I Wish Hong Kong Were Just Another Chinese City. Bloomberg, 1 June
China delayed releasing coronavirus info, frustrating WHO. Associated Press, 1 June
If you found this summary useful, please do forward it to a friend or sign up.