China News - 21 January 2022

International

UK foreign secretary calls on allies to “face down global aggressors” as UK and Australia deepen security ties. Liz Truss warned against adversaries that seek “to export dictatorship as a service around the world”, adding that China’s economic coercion of Australia was a wake-up call to other countries. At the annual Australia-United Kingdom Ministerial Consultation, the two nations signed deals to fund infrastructure in the Indo-Pacific region, with the British navy stepping up its presence as a counter to Beijing's influence. The Telegraph, Reuters, Independent, FT, 20 January

British MPs call for government to take further measures against China over treatment of Uyghurs. The House of Commons unanimously passed a motion calling on the Government to assess the “serious risk of genocide” in Xinjiang within two months and to place sanctions on perpetrators of this genocide, including Chen Quanguo. SCMP, 20 January

French parliament puts pressure on Macron by declaring Chinese treatment of Uyghurs a ‘genocide’. Politico, 20 January

Tesla’s expansion in Xinjiang ‘sets a poor example’, say US lawmakers. The Guardian, 21 January

Britain’s Hong Kong immigrants are showing a flair for protest. Many arriving under the British National (Overseas) visa scheme have been quick to stage in their adopted home the traditions of their old one. The Economist, 21 January

US wades into spat between China and Lithuania over Taiwanese office. Diplomats suggest changing name of de facto embassy in Vilnius to ease Chinese pressure on Baltic state. FT, 21 January

China’s threat to ‘punish’ Olympic athletes for free speech ‘very concerning’, Australia says. Australian sports minister Richard Colbeck says Australia opposes advisory on political comments from Beijing Winter Olympics committee. The Guardian, 21 January

Iran, China and Russia hold naval drills in north Indian Ocean. Reuters, 21 January

China, Russia block US bid to sanction North Korea at UN. Al Jazeera, 20 January

China warns US after tracking warship in South China Sea. The Guardian, 20 January

Economy & tech

Jack Ma’s Ant Group implicated in corruption scandal by Chinese media.
A documentary on state-run China Central Television alleged that private companies made “unreasonably high payments” to the brother of the former Chinese Communist party head of Hangzhou, an eastern city that is home to Ant Group’s headquarters, in return for government policy incentives and support with buying real estate. FT, 21 January

US lawmakers urge USTR to expand tariff exclusions on Chinese goods. A bipartisan group of more than 140 US lawmakers called on US Trade Representative Katherine Tai to immediately revive and expand a tariff exclusion process on Chinese goods to help US manufacturers. Reuters, 20 January

Evergrande offshore bondholders warn of legal action over lack of engagement.
International bondholders in Evergrande, the heavily indebted property group that is at the centre of a real estate crisis in China, have hired an offshore lawyer and warned of legal action if the company continues to refuse “substantive engagement” over its finances and restructuring plans. FT, The Guardian, 20 January

Chinese stocks rally in Hong Kong after Beijing cuts key rates. WSJ, 20 January

China’s internet watchdog says it has not issued a policy requiring vetting of investment deals at Big Tech firms. SCMP, 20 January

TikTok’s rocket revenue slows down as China tightens grip on big tech. City AM, 20 January

China focus

19th CCP Central Commission for Discipline Inspection (CCDI) releases communique. The CCDI vowed to increase efforts to deal with corruption behind the expansion of capital and platform monopolies and prevent the risks of local government hidden debt, signalling that the top leadership believes there are problems in these areas. Sinocism, Xinhua, 20 January

New Hong Kong barristers’ chief warns profession to stay out of politics. The newly elected leader of the Hong Kong Bar Association says that his profession should avoid politics and build closer ties to mainland China, as concerns grow about rule of law in the financial hub. The Guardian, Reuters, 21 January

‘Not sustainable’: Omicron tests China’s zero Covid policy as first cases detected. The Guardian, 21 January

Covid tracking records reveal struggles of Beijing migrant worker. Caixin, 20 January

Opinion & editorial

Christine Lee and foreign interference: what the UK can learn from Taiwan. Mariah Thornton. LSE Ideas, 20 January

The Communist Party revisits its egalitarian roots. Xi Jinping offers the stressed-out middle classes a dose of populism. Chaguan - The Economist, 21 January

China needs a new growth model, but that requires serious reform. The government must clearly define its role in the economy and financial markets. Eswar Prasad. FT, 20 January

Long reads

With Tonga in crisis, China will be all too happy to help. The tiny island nation could be driven further into Beijing’s embrace. Richard Lloyd Parry. The Times, 20 January

Observer now, beneficiary later: China and the unrest in Kazakhstan. China’s interests in Kazakhstan appear unaffected. As the Kazakhstani regime seeks economic growth and may tighten repression, Beijing’s importance could grow. Benno Zogg. The Diplomat, 21 January

Kingdom of Characters - when China got lost in transliteration. Jing Tsu’s fascinating history reveals how traditional Chinese script was a hindrance to progress in an age of globalisation. James Kynge. FT, 20 January

Can China create a world-beating AI industry? The Economist, 21 January