China News - 20 July

International

Hong Kong’s security appointee signals resolve for tight control. Dong Jingwei is the highest-level Chinese security official to be appointed to a senior role in Hong Kong since Beijing imposed national security laws in 2020. This appointment comes alongside a proposed new national security law, Article 23, which will encompass espionage and treason among other offences not covered by the 2020 legislation. James Pomfret and Greg Torode. Reuters, 19 July

China complicit in Russia’s invasion of Ukraine, says MI6 chief. Sir Richard Moore says Xi’s regime has supported Putin diplomatically and amplified “Russian tropes” such as Nato being to blame. Moore has accused Xi’s government of being “absolutely complicit” in Russia’s illegal invasion. China has abstained from UN votes and signed a “no limits” partnership with Russia. Helen Davidson. The Guardian, 20 July

China imports record volumes of Russian oil in first half of 2023. China is importing record volumes of oil despite a weak economy as it takes advantage of cheap Russian crude to build stockpiles and export refined products. Andy Lin and Greg McMillan. FT, 20 July

Yellen says pending rules won’t “broadly disrupt” investment in China. Following her recent visit to Beijing, the US Treasury Secretary said that the new regulations will not be highly disruptive to trade between the two countries, but focus on national security concerns. The rules are expected to be published by the Biden administration later this summer. Rob Garver. Voanews, 19 July

Washington presses Taiwan presidential frontrunner on White House comments. At a recent campaign event, Lai Ching-te, Taiwan’s vice-president and presidential candidate for the ruling Democratic Progressive party in next year’s election, said that “when Taiwan’s president can enter the White House, the political goal that we’re pursuing will have been achieved”. Top Taiwanese officials are not allowed to make official visits to Washington. Demetri Sevastopulo and Kathrin Hille. FT, 19 July

Renewal of CDP’s China pact to sharpen focus on Italy’s energy assets. Casa Depositi e Prestiti (CDP) and China’s State Grid Corp are hoping to renew their agreement on corporate governance of their co-owned Italian power and gas grid company. However, the Italian government is bringing in new regulations limiting Chinese influence in Italian businesses. Giuseppe Fonte. Reuters, 19 July

Congressional panel probes US firms' investments in China. The House Select Committee on the Chinese Communist Party sent letters on Tuesday to GGV Capital, GSR Ventures, Walden International and Qualcomm Ventures, the investment arm of Qualcomm Inc, asking for information on their investments in China and setting an Aug. 1 deadline for the firms to respond. Reuters, 20 July

Belgian university disputes Chinese account of a meeting with top academic officials. The rector of a top Belgian university has denied he agreed to promote Chinese interests in Europe. Fu Cong, Chinese ambassador to the EU, met staff at Ghent University and held “in-depth” discussions on Europe’s perception of China. South China Morning Post, 20 July

Economy & tech

China’s semiconductor ambitions fuel European brain drain. More than 30,000 workers from European tech companies have moved to China in the last 20 years. In what looks like a brain drain, European companies have lost the most workers to Chinese firms such as Huawei or Siemens. Bloomberg, 19 July

China’s digital yuan transactions seeing strong momentum. Used predominantly for domestic transactions, transactions using the digital yuan hit 1.8 trillion yuan ($249.33 billion) at the end of June. This is an increase of over 100 billion yuan from last August. These numbers cement China’s role as a leader among countries that are developing their own central bank digital currencies. Rae Wee. Reuters, 19 July

China to lead ongoing innovation in 6G. The International Telecommunication Union approved a 6G vision framework last month. This provides a foundational document for the global 6G network. A key feature that distinguishes 6G from 5G is the ability to allow the interoperability of terrestrial networks with nonterrestrial technologies such as satellites. China Unicom is exploring early application scenarios from 2025. China Daily, 20 July

Fast fashion giant Temu accuses Shein of starting “war” over US markets. The standoff between Chinese ultra-fast fashion brands escalates with Temu filing a lawsuit claiming Shein created exclusive manufacturing contracts, accusing Shein of trying to “squeeze” it out of America. The Guardian, 19 July

Opinion & long-reads

Xi stresses building a beautiful China. The Chinese President is promoting the building of a beautiful China, accelerating modernisation while finding harmony with nature. In an ecological conference this week, Xi stated that China should support high-quality development with high-quality ecological protection. Xinhua, 19 July

Burnt out or jobless - meet China’s “full-time children”. Long working days and a dismal job market are forcing Chinese youth to make unusual choices. “Full-time children” are driven back to the comfort of home, taking a break from working “996” (9am-9pm, 6 days a week), or from tirelessly job hunting. Many of these young Chinese say this is only temporary. Sylvia Chang and Kelly Ng. BBC News, 18 July