China News - 6 July 2021
International
Chinese-owned firm acquires UK’s largest semiconductor manufacturer. Nexperia, owned by China’s Wingtech, announced on Monday that it had taken 100% control of Newport Wafer Fab, the UK’s largest producer of semiconductors. The transaction could help China secure more automotive semiconductors amid the global chip shortage and further strengthen its chip supply chain. Tom Tugendhat expressed his concern about the deal not being reviewed under the National Security and Investment Act thus far. The Guardian, CNBC, The Telegraph, Nikkei Asia, 5 July
Chip shortage puts brake on UK new car sales despite jump from 2020. FT, 5 July
Xi tells Macron, Merkel he hopes to expand cooperation with Europe. In a three-way video call, Xi also expressed the hope that Europeans can play a more active role in international affairs, achieve strategic independence and offer a fair, transparent and unbiased environment for Chinese companies. All three leaders expressed optimism that an EU-China investment agreement would be approved soon. Merkel told reporters one “positive development” from Monday’s call was that Xi signalled China’s willingness to cooperate with the EU in Africa. Reuters, SCMP, Xinhua, 5 July
British Ambassador to China says UK creating new foundations for prosperity and stresses need for multilateralism. In a panel discussion at the World Peace Forum in Beijing, Dame Caroline Wilson also stressed that global leadership is about effecting change, rather than establishing authority. GOV.UK, 5 July
How a peace forum in China became an international war of words. Representatives of the UN’s Big Five sparred in front of hundreds of students, academics and diplomats at a conference in Beijing. SCMP, 5 July
China to invest in Ukraine after Kiev drops complaint over Uyghur abuses. China has agreed an investment deal with Ukraine just weeks after Beijing allegedly pressed Kiev to withdraw its support for an investigation into human rights abuses. The Chinese ministry of commerce said the agreement would cover road, bridge and rail projects. The Times, 6 July
Pro-Beijing heavyweights appointed to vetting body. Three pro-Beijing heavyweights were on Tuesday appointed as non-official members of a powerful new panel that will decide who gets to sit on the Election Committee, or take part in Legco and chief executive races. RTHK, 6 July
Hong Kong police arrest nine suspected of terrorist activities. Reuters, 6 July
Hong Kong police say mourning officer’s attacker is like backing terrorism. The Guardian, 5 July
China watches Afghanistan anxiously as the US withdraws. Beijing is ready to co-operate with the Taliban to prevent chaos across its western border, diplomats say. FT, New York Post, 6 July
American flights over South China Sea decline with a shift in focus, says report. A Beijing think tank says the US military last month turned its attention to the East China Sea and was also diverted by Russian drills near Hawaii. SCMP, 6 July
New Zealand MP breaks ranks with Ardern government to criticise China over human rights. The Guardian, 6 July
Australia denies using ‘plants’ to undermine China’s Covid vaccine rollout in Pacific. The Guardian, 6 July
Economy & tech
Didi probe heightens regulatory risks for Chinese IPOs in US. Shares in Chinese internet companies fell yesterday after the news that a Chinese regulator ordered Didi and two other Chinese companies that recently listed in the US removed from domestic app stores. The events have cast doubt over a multibillion-dollar pipeline of planned New York listings by Chinese companies, as Beijing starts to wield wide-ranging legislation to secure vast troves of data viewed as vital to its national security. FT, WSJ, The Times, 6 July
Didi cybersecurity review expected to set precedent for future ‘national security’ probes into data collection. SCMP, 5 July
Hong Kong defends privacy law after Big Tech raises concerns. The Hong Kong government is proposing changes to the city’s privacy laws, including imposing a one-year jail term and a maximum fine of one million Hong Kong dollars ($128,731) for offenders who disclose personal data without consent. But an industry group says technology giants may pull out of the city over fears that they could become liable for user content. BBC, Al Jazeera, HKFP, 6 July
Sinopec says it has started building China’s largest carbon capture project. The Chinese state-owned oil and gas producer said that it had started building a carbon capture, utilisation and storage (CCUS) project in east China, the largest of its kind in the country, as part of the refiner’s goal to be carbon-neutral by 2050. SCMP, Reuters, 5 July
China defaults threaten an eerily calm $12 trillion bond market. Bloomberg, 5 July
China beats Google to claim the world's most powerful quantum computer. New Scientist, 5 July
Longer reads & opinion
China’s Belt and Road should stop financing new coal power. Ending the fuel’s use would help meet climate commitments and foster co-operation with western nations. Gu Bin. FT, 5 July
The tech Cold War’s ‘Most Complicated Machine’ that’s out of China’s reach. A $150 million chip-making tool from a Dutch company has become a lever in the U.S.-Chinese struggle. Bryan Derballa. NYT, 5 July
This is Europe’s plan to crush China’s battery power. With a gigafactory under construction and new R&D deals signed, Northvolt could help Europe gain an edge, and create the battery of the future. Margaret Taylor. Wired, 6 July
When will China rule the world? Maybe never. Bloomberg, 5 July
Analysis: Two of China’s Belt and Road projects reveal a flaw in the G-7’s new global financing plan. Alvin Camba. Washington Post, 5 July
The Chinese Communist Party and the people. John Fitzgerald. ASPI: The Strategist, 6 July
China goes on the defensive as Covid vaccine diplomacy backfires. The Times, 5 July
Chinese universities face a tricky route to the top. James Chin. Times Higher Education, 4 July
Can China’s fishing villages make a comeback? Wang Songzi. Sixth Tone, 5 July