China News - 4 August
International
China says it is willing to keep talking with the US on foreign minister visit. Although no date for a visit has been set, China has confirmed that it is “willing to maintain communications” on a possible future trip by Wang Yi to Washington. Laurie Chen and Albee Zhang. Reuters, 3 August
US raises concerns over China’s counter-espionage push. Washington is worried that the “normalisation” of counter-espionage activities will ban the transfer of information that it sees as related to national security. This could result in foreign companies being punished for regular international business. Daphne Psaledakis and Humeyra Pamuk. Reuters, 3 August
US sailors charged with passing military secrets to China. Jinchao Wei and Wenheng Zhao have been charged separately for sending images of an amphibious assault ship and providing sensitive military data to Chinese intelligence. Joe Miller and Demetri Sevastopulo. Financial Times, 3 August
China’s top officials gather in Beidaihe, signalling the start of summer break for leaders. Xi Jinping, along with other Politburo members have stepped out of the spotlight for a few days. Their annual summer break usually lasts around 10 days. Beidaihe is a coastal resort on Bohai Bay about 300 km east of Beijing. Xinlu Liang. South China Morning Post, 3 August
China hopes Niger will find a “political resolution” to the coup. China’s foreign ministry believes that Niger and other regional countries have the wisdom and capability to find a “political resolution” to the current situation. Laurie Chen. Reuters, 3 August
Economy & Tech
UK chip sector cannot “recreate Taiwan in South Wales” says tech minister. Britain’s semiconductor industry must focus on niche manufacturing and designs rather than try to challenge international rivals in the chipmaking sector, according to tech minister Paul Scully. Cristina Criddle. Financial Times, 3 August
Joe Biden urged to limit US investments in Chinese stocks and bonds. The president has been advised by the head of a US congressional committee to widen forthcoming limits on investments in China to cover stocks and bonds as well, saying that not doing so would “fail to address the bulk of the security threat” posed by Beijing. Demetri Sevastopulo, Kana Inagaki and Henry Foy. Financial Times, 3 August
Chinese deal activity in US slumps to lowest level in 17 years. Geopolitical tensions and national security concerns curb enthusiasm for merger and acquisition investments with Chinese companies. Chinese investment in the US has only reached $221mn this year, compared to $3.4bn at this time last year. Thomas Hale. Financial Times, 4 August
What are superconductors and why are scientists sceptical about the LK-99 “breakthrough”? South Korean researchers claimed that they had developed a superconductor, LK-99, and that it works at room temperature. Laboratories across the world have tried to recreate it to no avail, now wondering if their initial scepticism was well founded. Ling Xin. South China Morning Post, 3 August
China asks public to inform on obstacles to private sector. The CCP has unveiled its latest show of concern over the private sector. It now asks citizens to call out problematic behaviour that is holding back entrepreneurs. Martin Ritchie and Colum Murphy. Bloomberg, 3 August
Canada Goose sees weak Q2 as choppy US demand douses China rebound. Canada Goose Holdings forecast current-quarter sales below Wall Street estimates, with shares going down 7%. However, the company’s Asia Pacific segment jumped 52.2% in the first quarter as a result of tourism opening up again in China. Deborah Mary Sophia. Reuters, 3 August
Smart-toilet market will be a measure of China’s economic resilience. Goldman predicts that China’s smart-toilet adoption levels should rise from 4% in 2022 to 11% in 2026. Smart-toilets are a product of intimate cultural and technological complexity so are a proxy for middle-class consumer spending. Leo Lewis. Financial Times, 3 August
Opinion & long-reads
Rights groups call on Laos to release lawyer held after fleeing China. 68 human rights groups have signed a letter calling on the Laos government to release Lu Siwei, a Chinese former human rights lawyer. Lu was detained while trying to board a train to Thailand, where he then planned to catch a flight to the US to join his family. He is still being held at Laotian immigration detention, despite being told that he would be deported to China. Amy Hawkins. The Guardian, 3 August
Flooded rivers and trapped residents test China’s disaster response. Typhoon Doksuri has broken Beijing’s 140 year rainfall record, with as much rainfall as is normally seen in a year. State media said rescuers from around China have been helping with Zhuozhuo’s floods, but some are still waiting for official approval to operate on the ground. Liz Lee, Ryan Woo, Ethan Wang. Reuters, 3 August
“Intensified, decelerated, cooled”: 4 takeaways from China’s July factory data. Official manufacturing purchasing managers’ index remained in contraction for the fourth month in a row. Andrew Mullen. South China Morning Post, 3 August