China News - 27 September 2021

NEW REPORT: Today, we’ve published a major new paper laying setting out the next steps for the UK’s relationship with China, with endorsements from two former UK foreign secretaries. Read the full paper here.

The Times has covered our recommendations for a “Domesday book” tracking Chinese influence on Britain’s universities and research institutions here. China Research Group Chair Tom Tugendhat in the Thunderer column: “We have to assess which partnerships and engagement with China best serve our national interest in light of Xi’s ambitions."

International

Ministers close to deal that could end China’s role in UK nuclear power station. The government could announce plans to take a stake in Sizewell C power station as early as next month. That would be likely to result in China General Nuclear (CGN), which currently has a 20% stake in Sizewell, being removed from the project. The Guardian, 26 September

China frees Canadians Michael Spavor and Michael Kovrig after Huawei boss released. Meng Wanzhou, CFO of Huawei, left Canada on Friday night after reaching a deal with the US Department of Justice to drop an extradition request for her. Hours later, Canadian Prime Minister Justin Trudeau announced that the two Canadians detained in China on spying charges were to be released from prison and flown out of the country. BBC, FT, The Guardian, 25 September

China's power crisis moves from the factory floor to homes. The crackdown on power consumption is being driven by rising demand for electricity and surging coal and gas prices as well as strict targets from Beijing to cut emissions. Bloomberg, The Japan Times, 26 September

British frigate sails through sensitive Taiwan Strait. HMS Richmond took a detour from the Queen Elizabeth carrier strike group to link up with the Vietnamese navy. The move is likely to anger Beijing amid heightened tensions between China and Taiwan. Reuters, Taiwan News, 27 September

China’s Xi warns of ‘grim’ situation with Taiwan, urges opposition party to seek ‘unification’. In a congratulatory letter to Eric Chu — the newly elected leader of the Beijing-friendly Kuomintang (KMT) party — Xi said the Chinese Communist Party and the KMT should collaborate under a “shared political basis.” HKFP, 26 September

Quad countries vow to work for freedom in region. At their first in-person summit, leaders of the US, Japan, India and Australia vowed to work together for a free and open Indo-Pacific region. The so-called Quad group of nations also agreed to move ahead on a joint plan to provide Covid-19 vaccines around Asia and launched a climate initiative pledging to "decarbonise at pace". BBC, The Guardian, 25 September

China aiding Myanmar armed groups in their COVID-19 fight. The Diplomat, 24 September

New WHO team to restart investigation into Covid origins, including lab hunt. The Times, 27 September

China focus

Exclusive: China has taken reciprocal countermeasures against UK Parliament's ban on ambassador, source says. There are no further details. Global Times, 24 September

China’s Xinjiang crackdown reaps millions of dollars in assets for the State. Xinjiang courts have been selling off property and company shares once belonging to jailed Uyghur business owners. WSJ, 24 September

China says it will reduce abortions for 'non-medical purposes'. The Government says clampdown is aimed at improving women’s reproductive health, but it comes amid anxiety about the nation’s falling birth rate. Reuters, 27 September

Taking to the streets to teach China’s gay migrants about safe sex. Sixth Tone, 25 September

Economy & tech

Imagination’s designs on a London listing face hurdles. Imagination Technologies’ staff are quitting the chip specialist in droves amid concerns over deals the company has signed with Chinese chip makers. The Telegraph, 26 September

Chinese tech moguls pledge support for Xi Jinping’s ‘common prosperity’ drive at the World Internet Conference. The CEOs of Alibaba, Xiaomi and Qihoo 360 showed up at the conference to pledge support for government initiatives. SCMP, 26 September

Tesla, Intel, Qualcomm CEOs keen to support China’s digital transformation, strengthen ties as Xi pledges cooperation. SCMP, 26 September

China goes on an intellectual property offensive. Foreign businesses in China are becoming key targets in a growing number of intellectual property lawsuits filed by Chinese companies. As Chinese companies have become more protective of their own IP rights, the number of IP-related lawsuits filed in China in 2020 was more than three times the figure for 2016. FT, 26 September

China declares all cryptocurrency transactions illegal. The clampdown comes as China’s central bank has been testing its own digital currency. The price of Bitcoin dropped on the news. NYT, The Times, 25 September

Chinese cities seize Evergrande presales to block potential misuse of funds. FT, 26 September

Longer reads & opinion

In a troubled U.S.-China relationship, moments of pragmatism emerge. James T. Areddy and Andrew Restuccia. WSJ, 26 September

China is a declining power—and that’s the problem. Hal Brands and Michael Beckley. Foreign Policy, 24 September

Global Britain needs new friends without alienating old allies. Anand Menon. FT, 25 September

Why China crushed its tech giants. Wired, 27 September

Xianzi: The #MeToo icon China is trying to silence. Zhaoyin Feng and Tessa Wong. BBC. 27 September

Time’s up for the super rich in Xi’s China. Richard McGregor. The Times, 26 September

The tarnishing of Evergrande’s ‘belt brother’ Xu Jiayin. Vincent Ni. The Guardian, 25 September

What’s next for poverty reduction policies in China? Brookings, 25 September