China News 5 May 2020
International
US spy planes could be pulled from Britain as US conducts major Huawei review. An inter-agency review will look at the impact of the UK’s 5G decision on many aspects of US security activity in the country, from the thousands of US troops in the country to air and intelligence operations. The UK and US governments will today start negotiating a UK-US Free Trade Agreement. Telegraph, 5 May
"With the US, Germany and the EU should decouple from China”, says Axel Springer CEO. In an essay in Welt Am Sontag Mathias Döpfner wrote that Europeans must choose to integrate with the west or China, But can’t do both. “You can deepen the traditional transatlantic alliance, despite Trump, with the explicit and closer involvement of a post-Brexit England and associated countries such as Canada, Australia, Switzerland and the democratic part of Asia. Or opt for closer economic ties to China, which are always also political ties.” He wrote, “Germany and Europe, together with the USA, should decide to consistently disconnect from China… It’s late, but not too late. It would be expensive, but not too expensive…. The corona recession marks a new, shockingly low starting point anyway. A unique opportunity to correct a mistake.” Die Welt, 3 April & Key quotes in English
Internal Chinese report warns Beijing faces Tiananmen-like global backlash over virus. Reuters, 4 May
Intelligence claims PRC played down crisis to hoard medical supplies. According to AP, a US Department of Homeland Security intelligence report concludes that the Communist Party changed its export and import behaviour outside of the “normal range” early on in the crisis, downplaying the severity of the crisis internationally to hoard medical supplies. AP, 4 May.
The Daily Telegraph reports on the “milk tea alliance” meme uniting people from smaller Asian countries online. Daily Telegraph, 3 May
Hongkongers’ support of pro-democracy shops ‘violates’ the free market, says Beijing. 46 Hong Kong protesters are seek refuge in Canada. Hong Kong Free Press, 4 May & Globe and Mail, 3 May
US Deputy National Security Advisor Matt Pottinger speaks in Chinese about how Li Wenliang "embodies the May 4 spirit." VOA Twitter, 4 May and English Text
Economy & tech
“Economic Prosperity Network” - US initiative to remove global supply chains from China. "We’ve been working on (reducing the reliance of our supply chains in China) over the last few years but we are now turbo-charging that initiative," said Keith Krach, undersecretary for Economic Growth at the State Department. The US is pushing to create an alliance of "trusted partners" dubbed the "Economic Prosperity Network," one official said. Reuters, 4 May
Internal Market Commissioner warns EU industrial supply-lines must be bolstered. EU Commissioner Thierry Breton says the Coronavirus pandemic reveals weaknesses in the bloc’s supply chain for commodities such as batteries and medicines. FT, 5 May.
China testing new rocket and stealth bomber. China is to debut a new rocket this week, leading to its first Mars rover later this year. The country is also testing its new stealth bomber, the H-20. Spaceflight Now, and The Times, 4 April
“Imagination Previews Shifting Views Prior to UK Hearing”. EE News reports on pre-hearing documents prepared by current executives of Imagination Technologies ahead of today’s Foreign Affairs Committee questioning. EE News, 5 May.
Business alarmed by deterioration in Sino-Australian relations. FT, 5 May.
Long reads
China’s domestic chip making. Some firms are getting subsidies worth 40% revenues to hit domestic production targets in '“made in China 2025” Georgetown Center for Security and Emerging Technology
“China Medical Supply Chains and Broader Trade Issues.” Congressional Research Service
Events
Foreign Affairs Committee to question Imagination Technologies. The UK Foreign Affairs Committee is taking evidence from former and current executives of UK chip maker Imagination Technologies today, in its ongoing inquiry into the FCO’s role in blocking foreign asset stripping in the UK. Parliament live from 2.30pm.
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