China News - 21 July 2022
Today’s newsletter is the last before the newsletter pauses for summer recess. You can follow all the major UK-China news and analysis over the summer by subscribing to our weekly newsletter (published every Friday afternoon).
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International
UK-China
Business Secretary intervenes in tech acquisition by Chinese company from University of Manchester. Kwasi Kwarteng issued a Final Order under the National Security and Investment Act preventing the acquisition of intellectual property by Beijing Infinite Vision Technology. The deal would have enabled the Chinese firm to acquire intellectual property relating to vision sensing technology. The Business Secretary deemed that the technology has dual-use applications and could be used to build defence or technological capabilities which may present a national security risk to the UK. Gov.uk, The Telegraph, 20 July
UK Government grants development consent for the new Sizewell C. The decision means the French energy giant EDF can now try to raise funding for the project from private investors, after ministers moved to cut out the Chinese state-backed nuclear specialist CGN, which currently has a stake in the project. The Times, 20 July
UK bank seeks investors for stalled Chinese-backed London development. A UK bank is trying to sell the first phase of a stalled Chinese-backed development at London’s Royal Docks at a low asking price, sources with knowledge of the matter told Caixin. The real estate project, with an initially estimated investment of £1.7 billion, was launched by then-London Mayor Boris Johnson and Hong Kong-based Advanced Business Park (China) Holdings Group Co. Ltd. (ABP) in 2013. Caixin, 21 July
China ride-hailing giant Didi fined $1.2bn after probe. On Thursday, the Cyberspace Administration of China (CAC) said that it had found "conclusive evidence" against the company. The CAC investigation concluded that Didi had illegally collected millions of pieces of user information over a seven-year period starting June 2015, and carried out data processing activities that seriously affected national security. BBC, 21 July
HSBC installs Communist party committee in Chinese investment bank. HSBC has become the first foreign lender to install a Chinese Communist party committee in its investment banking subsidiary in the country, according to two people familiar with the decision. The committees serve a dual purpose as a workers’ union and the means by which a party representative is installed within a company’s top ranks, sometimes in a director or management role. FT, 21 July
Ukraine war forcing China to rethink ‘how and when’ it may invade Taiwan, CIA chief says. Appearing at the Aspen Security Forum, CIA director Bill Burns played down speculation that Chinese president Xi Jinping could move on Taiwan after the 20th Party Congress this year. He said that China is believed to have observed from Ukraine that “you don’t achieve quick, decisive victories with underwhelming force.” The Guardian, 21 July
China seen as better than EU in completing African projects, survey finds. China holds a substantial lead over the EU concerning perceptions about decision-making and timely completion of projects in Africa, according to a new poll of more than 1,000 policymakers on the continent. SCMP, 21 July
China slams Czechs over Taiwan visit as ties continue to unravel. China slammed the Czech Republic for hosting a Taiwanese legislative delegation, deepening the erosion of ties between Beijing and one of its formerly staunchest European Union allies. Bloomberg, 20 July
Biden says Pentagon does not support Pelosi visit to Taiwan. FT, 21 July
World's oldest male giant panda in captivity dies in Hong Kong zoo. BBC, 21 July
Economy & tech
US export controls on China’s premier chipmaker failing. SMIC, China’s largest foundry, has slowly been catching up to TSMC, Samsung, and various western foundries in process technology, according to a new report. The foundry has now quietly released and started mass production of their 7nm process node, with US export controls supposed to be restricting licenses for any equipment which can be used on technologies more advanced than 14nm. SemiAnalysis, 20 July
China orders 300 million more tonnes of coal to be mined a year. The approval for coal-fired power gathered momentum in the fourth quarter of last year after China began suffering nationwide power shortages, according to a report from Greenpeace East Asia. The Times, 20 July
TikTok’s global expansion stumbles as executives leave and concerns flare over data security. David Ortiz, the New York-based leader of TikTok’s monetisation product, wrote on LinkedIn on Tuesday that his role was “being eliminated in a much larger reorganisation effort”. SCMP, 20 July
TikTok owner spends record $2.14 million on US lobbying. Bloomberg, 21 July
Baidu unveils new self-driving taxi in China. It says its new model, the Apollo RT6, has the the road skills of a driver with 20 years' experience. BBC, 21 July
China focus
Home prices fall in nearly half of Chinese cities from two years ago. House prices have declined in almost half of the 70 monitored large and medium-sized Chinese in the past two years, according to data released by the National Bureau of Statistics. Yicai, 20 July
Chinese city Zhengzhou sets up bailout fund as mortgage boycott spreads. FT, 20 July
Shanghai puts 8,000 hospital beds in reserve for COVID-19 resurgence. SHINE, 20 July
Long reads & opinion
China reckons with its first overseas debt crisis. The Belt and Road Initiative has seen a surge in loans going bad, prompting Beijing to issue countries with emergency credit. FT, 21 July
Rivals within reason? US-Chinese competition is getting sharper - but doesn’t necessarily have to get more dangerous. Kevin Rudd. Foreign Affairs, 20 July
Suspicious of TikTok? You’re not alone. The Chinese app is known for its aggressive data collection – but it is a fool’s errand to prove that it is a threat to the west. Alex Hern. The Guardian, 20 July
China’s collapsing global image. Josh Kurlantzick. Council on Foreign Relations, 18 July