China News - 25 November 2021

International

UK seeks to counter China’s influence with new development investment arm. Liz Truss, UK foreign secretary, will launch the British International Investment (BII) on Thursday, a body that will leverage private capital to invest in countries across Asia, Africa and the Caribbean, offering an alternative to Chinese loans. Under plans for the BII, the UK will mobilise at least £9bn of investment a year by 2025, which would include partnering with capital markets and sovereign wealth funds to scale up financing and help the private sector move in. FT, 24 November

China blocked from funding nuclear power stations by Boris Johnson. China will be cut out of involvement in developing new nuclear power stations, Boris Johnson confirmed yesterday, saying that a potential adversary could have no future role in Britain’s “critical national infrastructure”. The government is walking away from a 2016 deal that saw Chinese state firm CGN invest £6bn for a 33.5% stake in the Hinkley Point C plant. Johnson also suggested that the plan to allow CGN to own and operate its own plant in Bradwell had been abandoned. The Times, 25 November

EU set to renew sanctions on Chinese officials for alleged Xinjiang abuses. The European Union is set to approve a renewal of sanctions on Chinese officials on December 7 after member states’ ambassadors give the go-ahead ‘without discussion’. SCMP, 24 November

German coalition seals deal for new government, new tough-talking China policy. The coalition agreement text contains more than a dozen references to China, adopting a strong tone on seeking China’s cooperation ‘on the basis of human rights’ where possible. SCMP, 25 November

Lithuania urges Europe to brace for ‘coercion’ from Beijing. Lithuania will adapt to "short-term" economic pain dealt by China over its moves to enhance ties with Taiwan, foreign minister Gabrielius Landsbergis said on Wednesday, while urging Europe to brace against Beijing's economic "coercion" by getting more involved in the Indo-Pacific. Reuters, 25 November

Hostile states will be ‘greatest risk’ to 5G network - Irish government report. The report did not make specific references to countries that pose a threat to Ireland’s telecoms sector but did refer to hacking groups such APT 10, which is run by the Chinese Ministry of State Security. The Times, 24 November

Why are China and Russia strengthening ties? Weeks after sailing warships around Japan’s main island, the Chinese and Russian militaries have sent bomber flights into Japanese and South Korean air defence zones, forcing Seoul to scramble its fighter jets in response. Al Jazeera, 25 November

Solomon Islands protesters burn parliament and Chinese shops in protest against strengthening ties with Beijing. The Times, NYT, 24 November

Chinese official accused of sexual assault played key role in setting up Beijing 2022 Olympics. WSJ, 24 November

Australia considers diplomatic boycott of Beijing Winter Olympics, report says. Reuters, 25 November

Economy & tech

US restricts trade with a dozen more Chinese technology firms, citing national security concerns. Eight Chinese-based technology firms were added to the so-called "Entity List" for their alleged role in assisting the Chinese military's quantum computing efforts and acquiring or attempting "to acquire US origin-items in support of military applications". BBC, FT, CNBC, 25 November

China emissions fall as economy buffeted by property downturn. Carbon dioxide emissions in China have fallen for the first time since last year’s lockdown, the latest signal the property sector downturn and energy shortages have hit industrial demand in the world’s second-biggest economy. FT, 25 November

China regulator seeks to avoid US delistings of Chinese firms. Chinese authorities are working with US counterparts to prevent Chinese companies being delisted from US stock exchanges, a Chinese regulatory official said on Thursday, following complaints of a lack of access to audit working papers for US-listed Chinese companies. Reuters, 25 November

Beijing says it will introduce new measures to stabilise trade. China's vice commerce minister Ren Hongbin said on Wednesday the government will introduce a new round of measures to stabilise conditions for struggling smaller exporters. Reuters, 24 November

JP Morgan boss ‘regrets’ making joke about Chinese Communist party. BBC, FT, The Guardian, 24 November

Beijing suspends Tencent from updating existing apps or launching new apps: report. SCMP, 24 November

China focus

Nationalistic war film smashes Chinese box office records. A nationalistic blockbuster set during the Korean War has racked up hundreds of millions of dollars in ticket sales and become the highest-grossing film ever in China, according to box office data. Yahoo, 25 November

China starts clinical trials of mRNA vaccines as Covid booster shots. Caixin, 25 November

China boosts Earth-observation abilities with 2 Gaofen satellite launches. Space.com, 24 November

Opinion & editorial

Building big must become a priority if the West is to compete with China. Simon Nixon. The Times, 25 November

The US and China are already at war. But which kind? The fact that war can be fought in so many ways in the 21st century might reduce the need for actual military conflict. Gillian Tett. FT, 24 November

The West is now losing the modern space race. China and Russia are developing technology that could damage the free world’s economies. Con Coughlin. The Telegraph, 25 November

The South China Sea should be of concern to Europe. Jonas Parello-Plesner. EU Observer, 25 November

Long reads

The Chinese Dream: China's Challenge to Global Britain. The UK is not taking seriously the threat China poses to national security, stability and prosperity. David Martin Jones and M.L.R. Smith. Cieo, 24 November

Global banks have bet on ‘big bang’ in China but will it pay off? World’s biggest financial institutions hope to profit from Beijing’s move to loosen regulations after years of setbacks. Tabby Kinder. FT, 24 November

Analysis: China seeks to spin Peng Shuai’s #MeToo allegation into an ideological dispute. Vincent Ni. The Guardian, 25 November

China’s circumvention of trade remedies – and how to respond. The global trade system needs a new and updated set of tools, which start from and require the US to coordinate with its allies and partners. Emily de la Bruyère. Hinrich Foundation, 23 November

In the Russian Arctic, China treads on thinning ice. Lukas Wahden. LSE IDEAS, 24 November