China News - 23 November 2020
International
China’s Chamber of Commerce warns Britain against blocking Chinese companies. China’s Chamber of Commerce in the UK for Chinese businesses warned that Britain risks losing billions of pounds of investment and thousands of jobs unless it reverses its hostility to China, representing the most stark public intervention yet. The influential lobbying group also said there could also be a consumer backlash against British companies such as Jaguar Land Rover and Burberry, which are heavily reliant on China’s middle-class customers. Wenjian Fang, chairman of the group said, “If you continue to bar Chinese companies, the UK itself will suffer from lack of support or co-operation from China.” The Times, CityAM, 22 November
Joshua Wong and fellow campaigners on trial over Hong Kong protests, face up to five years in jail. Mr Wong, Ivan Lam and Agnes Chow appeared in court on Monday. Mr Wong said he expected to go to jail, possibly facing five years behind bars. As the alleged offences took place before China enacted a harsh national security law in June, they avoid a potential life sentence. BBC, The Guardian, FT, 23 November
UK should tilt foreign policy to Indo-Pacific region, Policy Exchange report says. Policy Exchange’s Indo-Pacific Commission report has been endorsed by foreign politicians and diplomats including Shinzo Abe, Stephen Harper and Scott Morrison. It argues that, since the early 2010s, the UK has been too narrowly focused on trade with China and failed to see the rise of Asia as an epochal transformation driven by many contributions, and not just China. The Guardian, full report, 22 November
World’s powerful nations must not force allies into ‘binary choices’, Scott Morrison says, speaking to Policy Exchange. The Guardian, 23 November
UK sourced PPE from factories secretly using North Korean slave labour. The Guardian uncovered evidence that the British government sourced PPE from factories in China where hundreds of North Korean women have been secretly working in conditions of modern slavery. The Guardian, 19 November
UK raises pressure on China with aircraft carrier deployment to Asia in 2021. Nikkei Asia, 23 November
Australia demands China explain why it has been singled out on trade restrictions. The Guardian, 23 November
Australia spends $500,000 to strengthen tech ties with Quad allies amid China tension. The Guardian, 23 November
New Zealand’s newly appointed foreign minister vows to speak truth to China. FT, 22 November
US
Biden set to choose Antony Blinken as Secretary of State. Blinken is seen as a defender of global alliances, and the NYT reports that Blinken will seek to coalesce sceptical international partners into a new competition with China, according to people close to the process. Biden is also expected to pick Jake Sullivan as National Security Adviser, Linda Thomas-Greenfield as UN ambassador and Michele Flournoy as Defense Secretary. NYT, 23 November
US drafts new list of 89 Chinese firms with military ties; would restrict them from purchase of US goods and technology. Reuters, 23 November
Head of Tibet government-in-exile visits White House for first time in six decades. The Guardian, U.S. Navy admiral makes unannounced visit to Taiwan, Reuters reports. Beijing has vowed to respond. Reuters, 23 November
China watch
Beijing warns of crackdown on misconduct after bond defaults, saying it will show “zero tolerance”. Regulators are investigating after one of China’s largest coal companies missed a Rmb1bn debt payment, amid a string of state-owned enterprise debt defaults. FT, 23 November
Alibaba CEO calls new Chinese competition rules 'necessary', striking supportive tone after Ant IPO collapse. Nikkei, 23 November
China looks to become third country to launch successful unmanned probe to the moon. Reuters, 23 November
Economy & tech
Hackers 'try to steal Covid vaccine secrets in intellectual property war'. State-sponsored hackers from China, Russia, Iran and North Korea are engaged in concerted attempts to obtain trial results early and seize sensitive information about mass production of drugs. The Guardian, 23 November
Hungary could receive up to one million doses of Chinese coronavirus vaccine: foreign minister. Reuters, 23 November
Elon Musk says Tesla’s Chinese rival ‘stole’ both Tesla and Apple’s code. The Times of India, 22 November
Huawei isn’t giving up on the UK; redoubles efforts to reverse ban. Quartz, 20 November
Wish reveals $1.7bn revenue as it seeks $25bn IPO. Wish is a popular ecommerce platform which facilitates the sale of cheap Asia-produced goods to the West. FT, 22 November
Saudi Aramco hints at future yuan bonds in potential coup for China, opening door to shift from dollar. Nikkei Asia, 23 November
Longer reads & opinion
Britain’s arms-buying splurge is only the start, with big questions around the UK’s recently announced defence plans. Edward Lucas in The Times, 23 November
Xi’s aim to double China’s economy is a fantasy; growth is constrained by demography and the politics of debt. Michael Pettis in the FT, 22 November
RCEP: A guide to the world’s largest trade deal. Asia House, 23 November
China targets Muslim scholars and writers with increasingly harsh restrictions. NPR, 22 November
Rivals spy weakness in HK’s status as Asia’s prime financial centre, with Singapore and Tokyo poised for opportunity. But Leo Lewis argues that market access to China still remains an irresistible advantage. FT, 22 November
Royal Society for Asian Affairs Event - Hong Kong: From Protest to Perdition? Where next for One Country Two Systems? 2pm, Friday 27 November. Register here.
The week ahead
Monday
3:15pm: Defence sub-committee hears oral evidence on foreign involvement in the Defence supply chain, including from Elisabeth Braw. Watch live.
Tuesday
President-elect Joe Biden set to announce his picks for cabinet appointments.
China’s Foreign Minister Wang Yi arrives in Tokyo for first visit since Suga became PM in September, with potential for discussion on the Senkaku Islands.
11:30am: Oral questions to FCDO ministers, likely to include questions on Hong Kong. Watch.
2:30pm: Foreign Affairs Committee hears oral evidence on the FCDO’s role in blocking foreign asset stripping in the UK.
Wednesday
Carrie Lam delivers delayed annual policy address to the Legislative Council in Hong Kong, with all major government proposals set to pass after pro-democracy legislators were removed.
Afternoon debate on UK-Japan comprehensive economic partnership agreement in House of Commons.
UK Chancellor Rishi Sunak delivers spending review from 12:30pm.
Friday
Taiwan announces GDP data.