China News - 22 October 2021

COP26 event: Experts agree that without big reductions in China's emissions, the world cannot win the fight against climate change. What are the challenges ahead for Beijing in decarbonisation and what role can the UK play in moving things forward? Join Amber Rudd, Isabel Hilton, and Alex Wang for a crucial discussion ahead of the COP26 summit in Glasgow. Register here.

International

Biden says US will defend Taiwan if China attacks. His comments were an apparent departure from the long-held US position of "strategic ambiguity", although a White House spokesman later told some US media outlets that his remarks did not signify a change in policy. BBC, FT, The Guardian, The Telegraph, 22 October

Britain warns China against dangerous military moves around Taiwan. Britain's defence minister called on China to find a peaceful way to settle its dispute with Taiwan, warning that Chinese incursions into the Taiwanese air defence zone were dangerous and could spark conflict. Reuters, Daily Express, 21 October

US official says China’s attempt to sway United Nations EU-Taiwan vote harms the international community. SCMP, Nikkei Asia, 21 October

UK, US and EU voice objections to Hong Kong’s disqualification of opposition district councillors. The US, Britain and the EU accused the Hong Kong government of stripping Hongkongers’ democratic rights after 16 democratically elected district councillors were ousted from their positions because of ‘invalid oaths’. Foreign Secretary Liz Truss said: “The Hong Kong SAR Government must uphold freedom of speech and allow the public a genuine choice of political representatives.” SCMP, HKFP, Reuters, The Standard, NHK, 21 October

More nations at UN line up to criticise China’s Xinjiang moves. A cross-regional statement delivered by France on behalf of 43 countries, including Turkey, Eswatini and Liberia, criticised Beijing for its detainment of Uyghurs in the western region of Xinjiang and called on China to “allow immediate, meaningful and unfettered access to Xinjiang for independent observers”. Bloomberg, Reuters, GOV.UK, CGTN, Al Jazeera, 21 October

German defense minister warns Europeans: Don’t detach from NATO. Annegret Kramp-Karrenbauer said that trying to operate militarily without the US is the “wrong way to go” and that “the big task now is also to recognise that the question of how to deal with China is much more than the question of national interests.” Politico, 21 October

Pentagon tests hypersonic weapons as Biden admits he is ‘worried’ by China’s arsenal. Independent, The Economist, 21 October

Japan and China’s view of each other deteriorates as perceptions of threat grow. SCMP, 21 October

China is taking on the US in its own backyard with billion-dollar investment across Latin America. The Telegraph, 21 October

China’s national security threatened by Australian lobster smuggling, says Hong Kong’s new customs chief. HKFP, 21 October

Celtics games are pulled in China after Enes Kanter’s pro-Tibet posts. NYT, WSJ, BBC, The Guardian, HKFP, Nikkei Asia, 21 October

Economy & tech

Evergrande shares rise on report of bond interest payment. Shares in the embattled Chinese property giant opened up 6% in Hong Kong after Chinese media reported it had made an US$83.5m interest payment before a crucial deadline. BBC, FT, SCMP, NYT, 22 October

Huawei, SMIC suppliers received billions worth of licenses for U.S. goods. Suppliers to Chinese telecoms giant Huawei and China's top chipmaker SMIC got billions of dollars worth of licenses from November through April to sell goods and technology despite being on a US trade blacklist. Reuters, Bloomberg, 21 October

China needs Big Tech to grow but companies should avoid ‘winner takes all’. Big Tech companies in China should not expand at the cost of smaller businesses, state-run media said, providing additional clues on Beijing’s next steps after embarking on an almost year-long regulatory crackdown. SCMP, 21 October

China is not targeting the private economy with its regulatory crackdown, official says. Caixin, 21 October

China to pursue digital trade expansion under new five-year plan as cross-border data flow restrictions remain in place. China is seeking to step up the development of digital trade amid questions that efforts might be impeded by the country’s restrictions on cross-border data flows. SCMP, 21 October

Chinese regulators nudge Didi toward Hong Kong listing. WSJ, Reuters, 21 October

China focus

After Xi Jinping unveils China’s first 5 national parks, goals set for nationwide network. Regions across the country will be encouraged to establish national parks, says the head of China’s research institute for such protected areas. The plans follow Xi’s emphasis on Beijing’s biodiversity drive at the COP15 summit last week. SCMP, CGTN, 21 October

China rejects ‘living with Covid-19’ model even as spikes get ‘more common’. A strategy that has succeeded in containing the country’s outbreaks presents considerable logistical and economic challenges as the inevitability of further cases and a waning of vaccine antibody levels beg the question of how long China should persist with it. SCMP, 22 October

Xi to attend commemorative meeting marking 50th anniversary of restoration of People's Republic of China's seat in UN. Xinhua, 22 October

At least 3 dead, over 30 injured in Shenyang gas explosion. SixthTone, The Telegraph, RTHK, SCMP, 21 October

Opinions & editorial

The World Bank needs a new age of transparency. Recent controversies point to the importance of scrutiny and credibility in getting critical work done. Gillian Tett. FT, 21 October

It’s time to crackdown on human rights abuse and corruption. Chris Bryant and Iain Duncan Smith. The Times, 22 October

Boris Johnson’s green jobs won’t make Britain rich. The reason we don’t have many long-lasting green jobs is because we don’t make the kit. Emma Duncan. The Times, 22 October

Chaguan: the confidence of China’s Communist Party is striking. The Economist, 21 October

When Biden and China's Xi meet, leverage will be everything. Susan Thornton. NYT, 21 October

CPTPP members must be wary of China's attempt to join trade pact. Deeper trade and investment ties with Beijing are a double-edged sword. Kristen Hopewell. Nikkei Asia, 21 October

Longer reads

How Hong Kong’s elite turned on democracy. Beijing’s bludgeoning of the pro-democracy movement in Hong Kong would not have been possible without the enthusiastic help of willing collaborators. Timothy McLaughlin. The Atlantic, 20 October

Hong Kong’s media under siege. Angeli Datt. The Diplomat, 21 October

The US-China tariff failure of 2019. Kaiser Kuo. SupChina, 21 October

What China’s hypersonic test launch reveals about the global arms race. A new defence system-busting weapon could change the balance of power. FT, 21 October

Huawei should dissolve, disperse and seed China’s high-tech future. The Economist, 22 October

Is Russia starting to sour on China? A prominent Russian analyst thinks the high point of Sino-Russian cooperation has passed. Yuan Jiang. The Diplomat, 22 October