International
Boris Johnson promises measures to protect UK technology base. At Prime Minister’s questions Richard Drax MP noted France’s root-and-branch review of its defence supply chain and asked: “given concerns that China is buying up defence-related companies that are going bust during the pandemic. Does my right hon. Friend think it might be wise to consider doing the same thing here in addition to rowing back from his plans to allow Huawei to roll out 5G?” The Prime Minister said: “I am sure there is a legal term for imputing to me a policy that I have not yet announced, but my hon. Friend is right to be concerned about the buying up of UK technology now by countries that may have ulterior motives, and we are certainly introducing measures to protect our technological base. He will be hearing a lot more about that in the next few weeks.” Hansard, 20 May
White House publishes new "Strategic Approach to the People's Republic of China." It says: “Guided by a return to principled realism, the United States is responding to the CCP’s direct challenge by acknowledging that we are in a strategic competition and protecting our interests appropriately.” White House, 21 May
Chinese Foreign Ministry denounces U.S. officials' congratulations on Taiwan leader's inauguration. Xinhua reports the Chinese government saying the US is violating agreements signed in 1978. It quotes the government: "We'd like to warn the U.S. side that 'Taiwan independence' has no way out. Indulging and supporting such forces is doomed to fail… China will take necessary countermeasures against the above-mentioned erroneous moves of the United States.” Xinhua, 20 May
Poll finds UK public cautious on China. A regular YouGov daily poll asked: “Do you see China becoming a superpower as more of a threat or an opportunity for Britain, or neither?” 47% said “threat”, 11% “opportunity”, and 22% neither. YouGov, 20 May
“Cambridge University is kowtowing to China.” Charles Moore explores how British universities relationships with the Chinese government have influenced their output. The Spectator, 21 May.
Belgium confirms inquiry into Malta-China spy threat. Guardian, 21 May
State media says Australia “giant kangaroo that acts as the dog of the US.” There is speculation about further trade retaliation by China against Australia. An opposition spokesman criticised the Australian government for “demonising the Chinese and their system of governance". Guardian, 20 May and Guardian 21 May
“China’s New Outbreak Shows Signs the Virus Could Be Changing.” Bloomberg reports cases in northern China are taking longer to show symptoms and longer to recover, according to Qiu Haibo, one of China’s top critical care doctors. Bloomberg, 20 May
Pompeo: treatment of Hong Kong activists makes it difficult to say it remains ‘highly autonomous’ from China. The US has delayed an assessment it is legally required to make until after the National People’s Congress to see what the Chinese government does on Hong Kong. The Washington Post says “An explosive summer of discontent is brewing in Asia's financial capital.” It quotes pro-democrat lawmaker Claudia Lo: "We are now at the end of Hong Kong as we know. [Beijing is] telling Hong Kong people that it can do anything it wants, at whatever cost, and that it couldn't care less about the consequences." Reuters, Washington Post, The Hour, 20 May
Beijing’s secret extradition request for Uighur dissident in Turkey. Axios, 20 May
Beijing’s African port ready for aircraft carriers. Times, 19 May
Wuhan bans the eating of wild animals after coronavirus outbreak. The city will buy out livestock farmers who raise exotic livestock. Mirror, 21 May
“China has much to lose from a Joe Biden presidency”. In the FT Janan Ganesh argues that Beijing’s efforts to woo allies count on unattractive American leadership. FT, 20 May
“China’s Communist party will survive Covid-19.” Jamil Anderlini writes that “Mr Xi’s construction of a vast techno-security state makes it very difficult to imagine any kind of grassroots organised resistance… Nonetheless, China’s spike in unemployment is a serious concern for its leaders.” FT, 21 May
U.S. to sell Taiwan $180 million worth of torpedoes. Reuters, 21 May
Consultative Conference & National People’s Congress set to open. China’s two annual meetings are getting underway. Around 3,000 delegates are expected to pass China’s first civil law code. Reuters, 21 May. Guardian, 20 May. NY Times, 20 May. FT, 21 May. Opening Footage
Economy / tech
China Has a New $1.4 Trillion Plan to Overtake the US in Tech. .In the master plan backed by President Xi Jinping himself, China will invest an estimated $1.4 trillion over six years to 2025, calling on urban governments and private tech giants like Huawei Technologies Co. to deploy fifth generation wireless networks, install cameras and sensors and develop AI software that will underpin technologies from autonomous driving to automated factories and mass surveillance. Japan Times, 21 May & Bloomberg, 20 May
High-Tech Push Boosts China’s Chipmakers. Shares in Chinese semiconductor firms have gone up as investors bet these companies will benefit from Beijing’s quest for high-tech self-reliance. WSJ, 20 May
Politics Haunts TSMC’s US Fab Plan. A look at commercial and political reasons for TSMC’s investment in the US. EETimes, 19 May
Senator Josh Hawley has called for the US to leave the WTO. Axios, 20 May
Court case threatens to shake up $100bn in Chinese dollar bonds. FT, 20 May
Japan Defense Ministry probing hack of next-gen missile data. The Japanese Defense Ministry is investigating a possible leak of details of a new state-of-the-art missile in a large-scale cyberattack on Mitsubishi Electric Corp. Japan Times, 21 May
Long reads
In search of wise statecraft on China - Patrick Cronin, The Hill, 20 May
“Containing China will be complicated” - Elbridge Colby and A. Wess Mitchell, WSJ, 7 May
China’s military is asking for an even bigger budget. Here’s why. Inkstone, 20 May
“Chinese Embassy Gets Briefly Suspended From Twitter; Insists 'Free Speech Must Be Honored' On Platform Banned Across China” Techdirt, April 2020
Playing with fire: Italy, China, and Europe. Brookings Institute, May 2020
Events
Friday: Don’t Look Now: China’s New Crackdown on Liberty in Hong Kong - with Martin Lee and Dennis Kwok - Heritage
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