International
China secretly sends enough gear to Russia to equip an army. Shanghai H Win has sold hundreds of thousands of bullet proof vests and helmets to Russia. Despite Beijing's calls for peace, China is delivering enough militarily useful equipment to Russia to have a material impact on Putin's war. The sale of dual-use tech, which has both civilian and military uses, exploits a loophole in Western sanctions. Sarah Anne Aarup, Sergey Panov and Douglas Busvine. POLITICO, 24 July
Disappearance of Xi favourite Qin Gang adds to confusion on Chinese diplomacy. With Qin out of public view for a month, analysts, diplomats and officials are trying to make sense of his absence. Qin’s last public meetings were on June 25, according to the foreign ministry’s website. The ministry blamed “health reasons” for his absence from a south-east Asian regional meeting this month. FT, 24 July
Chinese base in Cambodia nears completion in challenge to US naval power. Satellite images taken by US company, BlackSky, show a nearly completed pier that is similar to the Chinese military base in Djibouti. The Pentagon believes that China is building a facility in Cambodia to boost their naval power. Both China and Cambodia have denied that the Chinese military will have access. Demetri Sevastopulo. Financial Times, 24 July
China sends a spy ship to watch allied war games in Australia. 12 nations including Britain, America, France, Germany and Japan have joined Australia for Talisman Sabre 2023. This is the biggest gathering of troops in Australia since the Second World War. Bernard Lagan. The Times, 23 July
Ongoing detention of Cheng Lei without verdict “damages China’s standing” worldwide according to Australian journalist’s partner. Cheng has been detained since 2022 over national security-related accusations, but is still waiting for a verdict. An Australian official said the Australian government “will continue to advocate for her at the highest level”. Daniel Hurst. The Guardian, 24 July
China warns Japan on NATO. The Chinese embassy in Tokyo said that NATO’s plans to expand into the Asia-Pacific violates UN rules. China hopes that Japan’s interactions with NATO would refrain from actions that undermine trust among countries in the region. Ryan Wo. Reuters, 24 July
High-level Chinese delegation to visit North Korea- KCNA reports. Li Hongzhong, CCP politburo member, will take part in celebrations marking the 70th anniversary of the end of the Korean War. Although North and South Korea technically remain at war, this is the anniversary of 27 July 1935 when the armistice was signed. This will be the first official visit since Pyongyang shut its borders for Covid. Jack Kim. Reuters, 24 July
Economy & tech
China to step up policy adjustments amid tortuous recovery. The politburo pledges to “intensify macroeconomic policy adjustments, focus on expanding domestic demand, boosting confidence and preventing risks, and continuously promote the improvement of economic operations”. This follows the slow post-Covid economic recovery. Ellen Zhang and Kevin Yao. Reuters, 24 July
Chinese stocks rise as Beijing promises action to boost economy. FT, 24 July
China C.bank issues draft rules on its data security management. Beijing is tightening its grip on data usage and security amid rising geopolitical tensions. The central bank will establish a system of accountability for data security and punitive measures for violations, seeking to manage all data processing activities. The full plan will be published in August. Reuters, 24 July
Chinese property stocks fall despite Dalian Wanda avoiding default. The group raised $320mn through the partial sale of a subsidiary, and repaid a $400mn bond that had been due on Sunday. However, this repayment failed to boost the sector as shares fell in other property businesses including Country Garden. Thomas Hale, Cheng Leng, Hudson Lockett and Chan Ho-him. Financial Time, 24 July
Chinese e-commerce giant Alibaba claims solid effort to cut emissions in past financial year as it seeks carbon neutrality by 2030. Measures including low-carbon offices and encouraging consumers to adopt a greener lifestyle (such as Alibaba’s Carbon88 ledger platform), has helped the company to reduce 22.9 million tonnes of carbon emissions over the past financial year. Iris Deng and Yujie Xue. South China Morning Post, 24 July
What comes next as China’s tech crackdown winds down. The CCP has sent clear signals that it is ready to lift some restrictions, with caveats, on the trillion-dollar tech sector. The government wants to use the tech industry to restore their domestic economy and counter US efforts to hamper Chinese development. Zheping Huang, Jane Zhang and Sarah Zheng. Bloomberg, 24 July
Huawei to roll out 5.5G equipment. Next year Huawei will launch a set of commercial 5.5G network equipment and kick off the 5.5G era for the tech industry. Huawei claims it will improve network performance by 10 times, and will feature 10-gigabit peak downlink speeds. Ma Si. China Daily, 20 July
Opinion & long-reads
China’s new scientists: The emerging leaders behind Beijing’s drive for technological self-reliance. Yu Jie. Chatham House, 24 July
Beijing offers love, but Chinese entrepreneurs aren’t buying it. After a three year crackdown on private companies, the 31 point guidelines supposedly offered new private enterprise opportunities. One businessman said that Beijing had lost nearly all of its credibility, and if they want to change then they should return the fines imposed on private companies previously. Li Yuan. The New York Times, 22 July
The new Pacific trade deal is a huge win for Brexit Britain - and a crushing blow for Beijing. Beijing’s hopes of joining this major Asian trade bloc are remote owing to Australia’s vocal opposition, and the UK’s position as gatekeeper. John MacDonald. Telegraph, 24 July