China News - 27 May 2022
International
Blinken says US is ready to strengthen diplomacy with China in 'charged moment for the world'. The US Secretary of State said the US is ready to strengthen diplomacy and increase communication with China "across a full range of issues" in the first broad articulation of the Biden administration’s policy toward Beijing on Thursday. The administration’s policy towards the world’s most populous country contained three words: invest, align and compete, Blinken said, adding that while the administration has devoted much of its resources to containing Moscow, Washington sees Beijing as a “long-term challenge”. CNN, The Guardian, 26 May
A forecasting model used by the CIA predicts a surprising turn in US-China relations. Politico, 26 May
Fiji joins US-led Indo-Pacific economic initiative on eve of Chinese visit. Fiji became the first Pacific island to join the US-led Indo-Pacific Economic Framework just days before China’s foreign minister lands in the country, giving the Biden administration a victory in its competition with Beijing over influence in the Pacific. Analysts have said Suva has been much more sophisticated in managing its relationship with China than other small nations in the region. FT, 27 May
China builds coalition to counter America’s ‘barbaric and bloody’ leadership. Just as US president Biden embarked on his Asia trip, Beijing began promoting its Global Security Initiative (GSI), a proposal for an alternative security order. The initiative is part of Beijing’s increasingly frantic efforts to oppose US-led blocs, which it blames for global conflict and tension. FT, 27 May
British weapons expert accused of cosying up to China. A scientist at the MoD-controlled security company Qinetiq from 2001-2018 and a visiting researcher at the Institute of Shock Physics at Imperial College, gave a lecture at a conference in China dedicated to discussing “a new chapter in the development of artillery, shells and missiles”. It was attended by leading figures in the Chinese weapons industry, according to Unherd. CRG co-chair Tom Tugendhat said: “This case raises serious concerns about the integrity of our military secrets and the level of cooperation between a British expert and a potentially hostile state.” UnHerd, The Times, 26 May
US bill would bar Google, Apple from hosting apps that accept China's digital yuan. Republican senators want to bar US app stores including Apple and Google from hosting apps that allow payments to be made with China's digital currency, amid fears the payment system could allow Beijing to spy on Americans. Reuters, 27 May
Political prisoners are packing Hong Kong’s jails. The number of political prisoners in Hong Kong has soared as a result of the government’s crackdown on pro-democracy protests. According to a new report, 73% of custodial sentences between 2020 and 2022 were handed out to people aged 30 or younger. The Economist, 27 May
Hong Kong judicial independence under systematic attack, legal figures warn. The Guardian, 26 May
China plans to veto North Korea sanctions after missile test. The Times, 26 May
Economy & tech
China industrial profits fall as lockdown pain spreads; tech shares surge. Industrial profits dropped 8.5 per cent in April compared with the same period a year earlier, the measure’s worst fall since March 2020. Meanwhile, Hong Kong’s Hang Seng Tech Index gained as much as 4.9%, the most in a week, with Alibaba and Baidu rallying by at least 13% each. FT, Caixin, 27 May
China’s semiconductor heartland woos foreign investors as US pushes for decoupling. Jiangsu province - home factories of Taiwan Semiconductor Manufacturing Co and SK Hynix - is set to host an online seminar to entice foreign semiconductor firms to partner up with local counterparts. SCMP, 26 May
More Chinese developers ask for more time to pay back bonds. Caixin, 26 May
China focus
Rumours emerge of disharmony within China’s leadership. In recent days rumours have spread — not least through Chinese-language media abroad — of divisions in the party and high-level opposition to Xi Jinping career plans. However, evidence of a rift between Xi and Premier Li Keqiang remains thin, with Li being pushed to the fore because of China’s current economic troubles. The Economist, 27 May
China school textbook pulled after illustrations spark racism, porn uproar. A state-owned Chinese educational publisher was forced to recall a set of elementary school math textbooks after its illustrations were widely criticised for being ugly, pornographic and covertly pro-American. Bloomberg, 26 May
Senior Beijing city health official sacked amid capital’s Covid battle. SCMP, 26 May
Many young Chinese choose graduate school over a grim job market. The Economist, 27 May
Opinion & long reads
Frustrate China’s plans – while we still can. We have to get serious about why Beijing wants to buy British firms, and apply greater scrutiny. David Frost. The Telegraph, 27 May
China has a limited window to salvage ties with Europe. Working to de-escalate the war in Ukraine would be a good start. Minxin Pei. Nikkei Asia, 27 May
China’s intergenerational divide. Older intellectuals find young Chinese childish, nationalist and scary. Chaguan. The Economist, 27 May
‘Buying in the UK was a way to bring our Chinese family together’. Freedom to buy in London means happiness and a place to practise t’ai chi, says Shing-Tung Chau. Melissa York. The Times, 27 May