China News - 3 August
International
US formally invites new Chinese foreign minister Wang Yi to Washington. The invitation was given during a meeting at the State Department between US Assistant Secretary for East Asia and Pacific Affairs, Daniel Kritenbrink, and the Director General of North American and Oceania Affairs at China’s Foreign Ministry, Yang Tao. Simon Lewis, Humeyra Pamuk and David Brunnstrom. Reuters, 1 August
Taiwanese presidential hopeful William Lai to stop in US during Paraguay trip. Taiwan’s Vice President, William Lai Ching-te, will stop in the US when he attends the inauguration of the Paraguay President next week, Taiwan’s Presidential Office has confirmed. Minnie Chan. South China Morning Post, 2 August
Eyeing China in the Pacific, US studies explosives to make missiles fly further. Officials want to change the mix of chemicals fueling missiles and rockets to gain an advantage in the Pacific. The Pentagon is looking at a retrofit that could extend the ranges of some current weapons by 20%. Mike Stone. Reuters, 2 August
Solomon Islands newspaper pledged to promote “truth about China’s generosity” in return for funding. The Solomon Star denies accusations of “giving away” its freedom by accepting thousands of dollars’ worth of equipment. The paper received nearly $140,000 in funding and in return pledged to promote China’s “true intentions to help develop” the Pacific Islands country. Charley Piringi. The Guardian, 2 August
Economy & Tech
Chip innovators join forces with government to steer future of semiconductor sector. Experts working at semiconductor firms will meet with Technology Minister Paul Scully at Imperial College London, as part of the first meeting of the Semiconductor Advisory Panel. The group will harness domestic semiconductor strengths, ensure the secure supply of chips and protect UK national security. GOV.UK, 3 August
US targets two China-based firms over forced labour practices, Department of Homeland Security says. Camel Group Co. Ltd., a battery manufacturer, and Chenguang Biotech Group Co. Ltd., a spice and extract manufacturer have been banned as part of an effort to eliminate forced labour practices in the American supply chain. Jasper Ward and Ryan Woo. Reuters, 2 August
House committee quizzes BlackRock and MSCI on China investments. The US House of Representatives China committee has accused BlackRock and MSCI of profiting from investments that support the Chinese military and undermine key American values and national security. Demetri Sevastopulo, Chris Flood and Harriet Agnew. Financial Times, 1 August
China proposes tighter limits on children’s use of tech. The proposed Cyberspace Administration of China rules require device makers, operating systems and apps to create a new function “minor mode” that will set time limits and curfews on usage. It will also create an age-based classification system for content. Ryan McMorrow, Nian Liu and Qianer Liu. Financial Times, 2 August
Tech shares fall as China mulls child smartphone limits. Shares in big Chinese tech companies fell on Wednesday, and Thursday morning. Shares of Alibaba closed more than 3% lower in Hong Kong, and Bilibili close to 7%. Annabelle Liang. BBC News, 3 August
Opinion & long-reads
Beijing must start spending to secure China’s economic future. To stop a problem becoming a crisis, the government needs to intervene. The danger is a deflationary spiral, and the danger is real as no sector in China is well placed to spend more. Robin Harding. Financial Times, 2 August
Why China is not as powerful as the West might think. Xi Jinping’s economic policy is less and less convincing to Western companies. Politicians are realising this too. Stuart Lau and Phelim Kine. POLITICO, 3 August
The end of China’s economic miracle. How Beijing’s struggle could be an opportunity for Washington. Adam S Posen. Foreignaffairs, 2 August
How can the West best tackle the threat from China? First, it must stop panicking. The greatest threat to us from China is our own muddled, panicked state of mind, crediting a false level of coherence to Beijing. Kerry Brown. The Guardian, 2 August