China News 27 April 2020
Welcome to the first China Research Group news summary. This one is longer than these will normally be, as it looks a little further back in order to recap. We hope you find it useful - if you do, please tell friends about us.
International
EU criticises Chinese state disinformation around coronavirus. A report for the European External Action Service concludes that: “Despite their potentially grave impact on public health, official and state-backed sources from various governments, including Russia and – to a lesser extent – China, have continued to widely target conspiracy narratives and disinformation both at public audiences in the EU and the wider neighbourhood.” The report notes “significant evidence of covert Chinese operations on social media.” EEAS Report.
Beijing pressuring Brussels over report. The New York Times reported that Beijing had put pressure on the EU to tone down the report, which it says originally stated: “China has continued to run a global disinformation campaign to deflect blame for the outbreak of the pandemic and improve its international image.” The FT reports that China’s Foreign Ministry warned the EU the report would make China “very angry”. New York Times, 24 April, Reuters 25 April & FT, 26 April.
The Commission says the NYT article is not correct, but Bart Groothuis, an MEP from the Netherlands ruling VVD party, has written asking for an explanation. Politico, 27 April.
Hong Kong protests resume after arrests. Riot police have broken up a “singing protest” at a shopping mall. RTHK, 26 April. A judge in Hong Kong has been criticised for his sympathetic comments towards a man who stabbed three people at a pro-democracy "Lennon Wall". He described the man, who attacked the three with a meat cleaver, as a “victim” of recent protests. BBC 25 April. The US and UK have condemned the arrest of Hong Kong’s leading pro-democracy activists. Guardian, 19 April. Pro-democracy leader Martin Lee has written about his arrest. Washington Post, 21 April.
China’s consulate in Canada has criticised Alberta Premier Jason Kenney for “interfering in China’s internal affairs.” Kenney tweeted his support for jailed Hong Kong democracy activist Martin Lee. China’s consulate stated that “openly advocating for the rioters can only undermine the rule of law, which is not in Canada’s own interests.” Relations have deteriorated following Canada’s detention of the CFO of Chinese telecommunications giant Huawei, and China’s arrest of two Canadian nationals. National Post, 22 April.
France summons Chinese envoy after coronavirus 'slur'. The French foreign office summoned the Chinese ambassador, to express disapproval about Chinese diplomats’ claims that France had left its older citizens to die. Guardian, 15 April.
Swedes shut China-backed Confucius schools as relations sour. Times, 21 April.
China pressed the German government to make positive statements about China’s coronavirus handling. The story by Die Welt was previously denied. Die Welt, 26 April.
Tensions in the South China Sea. The Philippines has protested against China’s claims on its territory. AP, 22 April. The US and Australia are conducting joint naval exercises after China built bases on two artificial reefs, and after the sinking of a Vietnamese ship. Sydney Morning Herald, 22 April.
Economy & tech
China threatens to stop Australian imports over calls for coronavirus inquiry. China’s ambassador to Australia has raised the prospect that Chinese citizens will stop importing wine and beef from Australia if the government and opposition continue to push for an inquiry into the origin of the global coronavirus outbreak. Cheng Jingye said that Chinese tourists and students might also stop going to Australia. He stated: “Some politicians here claim the virus originated in Wuhan, China, which is not the case.” Australian Financial Review, 26 April & Canberra Times 27 April.
China-backed owner of Imagination Technologies plans to re-list chip designer. The Chinese state-backed owner of Imagination Technologies has said it plans to return the UK chip designer to the public markets, after moves to appoint four Chinese board directors to UK company were dropped. Culture secretary Oliver Dowden had previously demanded a meeting regarding the plans. FT, 23 April & FT, 7 April.
EU advises on Chinese interference in research. The European Commission has published guidelines on protecting universities & research organizations from foreign interference. The guidelines mainly concern China.
China launches digital yuan: “anti-bitcoin”. The Economist reports on the launch of the “digital yuan”, the worlds first state-backed cryptocurrency. China’s four largest commercial banks began internal tests this month. The city of Suzhou will give some to government employees next month. The Economist reports that “China’s version will be a centralised currency, rather like the anti-bitcoin. Officials will be able to track all digital cash in circulation” Economist, 23 April.
US may shut three Chinese telecoms firms. The Federal Communications Commission said it may shut down the U.S. operations of three state-controlled Chinese telecommunications companies, citing national security risks. Reuters, 24 April
Japan is introducing a subsidy to reshore production chains from China. Nikkei Asian Review, 21 April.
Africa / China relations. Foreign Policy magazine reports on sceptical responses to China’s coronavirus diplomacy, including calls from African nations for debt relief from China. Foreign Policy, 20 April.
EU competition Commissioner suggests EU countries should buy stakes in companies to stave off Chinese takeovers. FT, 12 April.
Bloomberg reports on US efforts to remove Huawei communications equipment. Bloomberg, 22 April
Can China reform its economic model? In the FT, Michael Pettis argues that it will be impossible to scale back the role of the state in China’s economy: “Until demand is rebalanced, only expanding the government sector and increased debt can guarantee high levels of growth.” FT, 26 April
US Senator Tom Cotton has suggested Chinese students should not be allowed to study sciences in the US. Fox News, 26 April
Wuhan has been declared coronavirus free. The last recovered patients have left hospital. South China Morning Post, 26 April
Long reads
H.R. McMaster, “How China Sees the World. And How We Should See China,”
The Economist: Is China Winning? (last week) and A pandemic of Power Grabs (this week)
Max Hastings review of “Has China Won? The Chinese Challenge to American Primacy” by Kishore Mahbubani (Sunday Times, 26 April)
Center for Strategic and International Studies report on China’s trillion dollar Belt and Road programme.
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