China News - 28 July 2021

International

British aircraft carrier under China's gaze as it enters South China Sea. Britain's aircraft carrier entered the South China Sea on Tuesday night, as defence sources said Beijing will be watching from the air and beneath the water. China is holding military drills in two navigation restriction areas in the South China Sea region. The Telegraph, Global Times, 28 July

US defense secretary comments on UK’s Indo-Pacific tilt. US Secretary of Defense Lloyd Austin delivered an address to Singapore's International Institute for Strategic Studies on Tuesday. After he was asked about the UK’s Indo-Pacific tilt, Austin called the tilt a “balancing act” and noted that there are areas in which “the UK can be more helpful in other parts of the world”, while also emphasising the importance of working with allies. Transcript, IISS video, FT, 27 July

Johnson may block Chinese takeover of UK’s largest computer chip maker. Boris Johnson may block a Chinese-owned company from purchasing the UK’s largest producer of semiconductors, a senior government adviser has suggested. Former Australian PM Tony Abbott spoke at an event at Policy Exchange and also penned a comment article in The Telegraph, saying “it would be most unwise, for instance, to sell technology businesses to Chinese interests because – in the end – every Chinese business is subject to the direction of the Beijing government, in a way that no Western country’s businesses are.” The Guardian, The Telegraph, The Times, 28 July

Beijing clampdown on education, tech unsettles investors. European shares were caught out by the overnight sell-off in Asia, while the Nasdaq Golden Dragon China Index, which follows the 98 biggest US-listed Chinese stocks, fell by almost 15% in the last two trading sessions following a series of crackdowns by Beijing. Chinese tech stocks also plunged in Hong Kong. The sell-off slowed on Wednesday. The Times, BBC, FT, 27 July

China meets Taliban for talks after US withdrawal from Afghanistan. China’s foreign minister has met a Taliban delegation, pledging its support for Taliban’s role in Afghanistan’s reconstruction but demanding that it cuts ties with the East Turkestan Islamic Movement. The Times, SCMP, 28 July

BBC calls on Chinese government to stop attacks on journalists following harassment in Henan. The Independent, The Guardian, 27 July

Uyghurs and Tibetans locked out of Airbnb in China's latest crackdown on ethnic minorities. The Telegraph, 28 July

Morocco authorities arrest Uyghur activist at China’s request. The Guardian, 28 July

Hong Kong police warnings of terrorist threat met with scepticism. Analysts say talk of a violent underground movement is likely over-exaggerated. FT, 28 July

British Home Office to investigate deportation of Chinese sailors after WW2. 2,000 Chinese merchant sailors were forcibly repatriated after World War Two. BBC, 27 July

Hong Kong is having its best Olympics ever. The city has won two medals. Vice, 28 July

Vince Cable and Nigel Farage on China. Former Lib Dem leader Vince Cable said calling Xinjiang genocide is “hyping” the language. GB News, 27 July

China focus

Evergrande’s tumultuous week renews fears of liquidity crisis. Over the past week, a flurry of ominous developments related to Evergrande’s access to financing have wiped billions of dollars off the company’s market value. FT, 29 July

Kris Wu: Why a superstar sparked China's sexual consent debate. BBC, 28 July

Economy & tech

Ban Chinese firm from working on UK nuclear power stations, ministers told. Tory MP Sir Iain Duncan Smith and Labour peer Baroness Kennedy wrote to say that the UK should make an “urgent clarification” about the status of CGN’s involvement. The Telegraph, The Times, 27 July

Chinese investor exits Czech media company. Broadband TV News, 28 July

China building second nuclear missile base, satellite images reveal. The Times, 28 July

Longer reads & opinion

Wang Huning: the man behind Xi Jinping. Although Wang Huning has mostly remained in the shadows, his long out-of-print 1991 book on American politics has been resurrected in the wake of increasing Sino-American tensions. The Spectator, 28 July

Trade secrets: US and China face bumpy ride as talk of decoupling intensifies. FT, 28 July

Comment; he first water war is uncomfortably close. China has turned itself into a master of hydropolitik. Roger Boyes. The Times, 27 July

Comment: There are more important things than doing good business with China. FAZ (DE), 27 July