China News - 6 December 2021

International

MI5’s head of hostile states counterintelligence calls overhaul of Official Secrets Act. In an exclusive interview with The Telegraph, ‘Director K’ said new laws were needed to “disrupt what is increasingly damaging activity” waged against the UK by hostile states, including Russia and China. She explained that China’s threat was “chronic” rather than acute and issued a warning to British strategic companies not to sell out to Chinese firms. The Telegraph, 3 December

Hong Kong

Hong Kong visa scheme extension to be voted on by MPs. A group of 27 Tory MPs have signed CRG committee member Damian Green’s amendment to the Nationality and Borders Bill, calling for the visa scheme to be expanded to all 18 to 25 year olds. However, a government source told The Times that the government could not back the amendment in its current form as expanding the scheme to anyone who has a parent who qualifies for the BN(O) scheme would open it up to too many people. The Times, 6 December

Sham election will make Hong Kong ‘just another Chinese city’. Five years on from the territory’s last legislative elections, exiled activist Nathan Law has urged Hong Kongers to boycott or cast blank votes in this month’s new “patriots only” election, the first held under the strictures of a sweeping national security law imposed by Beijing. The Sunday Times, 5 December

‘Anonymous boss’ offering £10,000 bounty threatens exiled Hong Kong activists. The Metropolitan Police has launched an investigation after messages from an anonymous individual, appearing to offer £10,000 for the addresses of dissidents living in the UK, were posted on the popular Chinese messaging app WeChat last week. The Telegraph, 4 December

Hong Kong children ‘turned away by some popular British schools’ as enrolments hit record high. SCMP, 5 December

President Xi lures Commonwealth with military diplomacy. Military officers from Commonwealth countries who might once have earned their stripes at British military colleges such as Sandhurst are joining China’s foreign training programmes in record numbers. Several African nations, including Ghana, Uganda and Tanzania, have opened “politico-military schools” sponsored by China. The Times, 4 December

China seeks first military base on Africa’s Atlantic Coast, US intelligence finds. Classified American intelligence reports suggest China intends to establish a military installation in Equatorial Guinea, a move that would give Beijing its first permanent naval presence in the Atlantic Ocean. WSJ, 5 December

Reliance on China’s tech makes EU weak, says Finnish prime minister. Sanna Marin said she was concerned that crucial elements of infrastructure such as schools, hospitals and transport systems were increasingly powered by technology developed outside the EU, leaving weaknesses that could be exploited by hostile countries. The Times, 6 December

Solomon Islands may switch diplomatic ties from China to Taiwan amid unrest, says provincial leader. Daniel Suidani, the leader of the Solomon Islands’ most populous province, said that it would be in the Pacific island nation’s best interests to affiliate itself with Taiwan because of shared democratic values if the prime minister is ejected by a no-confidence vote on Monday. The Telegraph, 4 December

BBC has invested more than £150million in Chinese state-owned companies accused of links to human rights violations. Daily Mail, 5 December

UK takes part in French naval exercise to counter ‘emerging threats’. The Guardian, 5 December

Europe hesitant over calls to boycott Beijing Winter Olympics. SCMP, 5 December

Chinese mining groups scour Afghanistan for minerals and metals. FT, 5 December

Economy & tech

Inflation to rip as Omicron infects global supply chains. Chinese ports have been shutting down for just one Covid case under the country’s zero-tolerance policy; experts expect a similar approach for the Omicron variant. The Sunday Times, 5 December

China's quantum leap plunges West into a race to protect its secrets. In recent months, Chinese researchers have unveiled a series of quantum computing and communication breakthroughs that are likely to lead to large-scale theft of encrypted data. The Telegraph, 3 December

Evergrande shares plummet 12% as it edges closer to default. After warning that it might not be able to meet repayments with $82.5m due on Monday, the property giant appears headed for restructuring. The Guardian, Reuters, 6 December

Alibaba finance chief to step down in company restructuring. Alibaba’s longtime finance chief Maggie Wu is stepping down as the Chinese ecommerce giant shakes up its organisation to reverse slowing growth and halt the fall of its share price to a five-year low. FT, SMCP, 6 December

China’s regulator soothes nervous markets over Chinese stocks’ delisting woes after global sell-off. SCMP, 5 December

Beijing wants to turn Macau from a casino den into a tech base for the Greater Bay Area. SCMP, 3 December

Companies in Shanghai take first steps to trade data like stocks. Sixth Tone, 3 December

China focus

China’s touts its ‘whole process democracy’ as the superior model. Beijing is stepping up its attempts to portray its system as representative and effective as the State Council Information Office on Saturday released a white paper titled "China: Democracy That Works". Xinhua, SCMP, The Times, 4 December

China’s population to peak in 2021 as demographic turning point has already arrived, according to Trip.com boss. James Liang, executive chairman of online travel platform Trip.com Group and a renowned demographics expert, said the number of births across China fell 20% to about 10 million in 2021, while the number of deaths could be more than 10 million this year. SCMP, 4 December

Beijing ‘modified’ the weather to create clear skies for centenary celebration – Tsinghua study.The Guardian, 6 December

China tightens control of religion, with focus on national security. SCMP, 6 December

Opinion and editorial

The China conundrum: how to act tough but still get its nuclear plants. Dominic O’Connell. The Times, 3 December

China is faltering, but the world is not feeling the effects. The link between the country’s growth and other economies started to loosen before the pandemic. Ruchir Sharma. FT, 6 December

In sex and hypocrisy, no one beats Beijing. Few dare take on China over its silencing of the tennis star Peng Shuai. Dominic Lawson. The Sunday Times, 5 December

It isn’t smart to let unregulated AI toys get kids’ data. Elisabeth Braw. The Times, 6 December

Clear ambition is required if Europe is to rival China’s Belt and Road. The EU’s ‘Global Gateway’ infrastructure plan risks faltering without proper funding and explicit aims. Martin Sandbu. FT, 5 December

Long reads

Annual Asia Power Index. The 2021 edition - which covers four years of data - is the most comprehensive assessment of the changing distribution of power in Asia. Lowy Institute, 4 December

My wife was 'disappeared' by China's elite – now I want to expose their corruption. Desmond Shum risked everything to leave Beijing. Now, he is pulling back the curtain on the Communist Party underworld. Juliet Samuel. The Telegraph, 4 December

Beijing’s strategic blueprint is changing as tensions grow. The CCP has constructed a strategy that is predicated on both passively absorbing and actively acquiring technology from abroad. Ryan Fedasiuk and Emily Weinstein. Foreign Policy, 3 December

A New York film festival showcases independent Chinese film. Quan Zhang. SupChina, 4 December