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China News - 6 September 2021

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China News - 6 September 2021

Sep 6, 2021
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China News - 6 September 2021

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This newsletter is a little longer to cover key developments from the past month. It will resume in the usual format tomorrow.

As always, we would like to hear your feedback about how the newsletter can improve - you can get in touch by replying to this email or directly on office@chinaresearchgroup.org.

International

UK climate envoy arrives in China. Alok Sharma has arrived in Tianjin for talks with Chinese officials, including Xie Zhenhua. Ahead of COP26, they will discuss China’s plans for an enhanced 2030 emissions reduction target. Reuters, 6 September

Taliban declare China their closest ally. China is the Taliban’s “principal partner” in the international community, a Taliban spokesman told an Italian newspaper La Repubblica, in its strongest signal yet of diplomatic priorities. The Telegraph, 4 September

Climate-above-all plea by US fails to stir China. During talks with US climate envoy John Kerry, China's Foreign Minister Wang Yi warned that the worsening relationship could hamper future co-operation on climate issues. "It is impossible for China-US climate co-operation to be elevated above the overall environment of China-US relations," he said. BBC, 3 September

Michael Spavor: Canadian jailed for 11 years in China on spying charges. It has now been 1,000 days since Michael Kovrig and Michael Spavor were detained in China. CBC, 5 September

Taiwan says 19 Chinese warplanes entered air defence zone. The defence ministry said 19 aircraft including fighters and nuclear-capable bombers entered its so-called air defence identification zone (ADIZ) on Sunday. BBC, 6 September

German ambassador to China dies only days after appointment. Politico, 6 September

Lithuania withdraws Chinese envoy in row over Taiwan. China demanded that Lithuania withdraw its ambassador in Beijing after Taiwan announced the new mission in Vilnius would be called the ‘Taiwanese Representative Office’. Reuters, 3 September

Australian Senate passes bill banning imports made using forced labour. The Guardian, 23 August

US spy agencies publish 'inconclusive' report on Covid origins, failed to resolve internal debate between agencies. The Guardian, 28 August

UK-China news

Hong Kong: 65,000 apply for BNO visa over five months. New figures show that the Home Office received a further 30,600 applications from April to June. More activists were sentenced to jail time last week for their role in anti-government protests. The Times, 1 September

Chinese broadcaster CGTN returns to British screens. CGTN was also fined £200,000 in August for failing to comply with UK broadcasting rules. SCMP, The Spectator, 6 September

Britain’s universities hire planes to fly in China students. More than 50 UK universities have together chartered four flights to bring in 1,200 Chinese students in time to start their degrees next month. The Times, 29 August

UK private schools face curbs on China links in Beijing’s education crackdown. Chinese authorities are tightening restrictions on foreign influence in the education system and looking to halve the number of children educated privately. FT, iNews, 5 September

Labour says a new £5bn PPE contract must not go to Xinjiang firms that use forced workers. The Guardian, 22 August

China focus

Over the past month, crackdowns and new regulatory measures have continued as part of Xi’s push for ‘common prosperity’:

  • Xi calls for wealth redistribution and clampdown on high incomes. State media reported that a meeting of the Chinese Communist party’s Central Financial and Economic Affairs Commission, chaired by Xi, had emphasised the need to “regulate excessively high incomes and encourage high-income groups and enterprises to return more to society”. FT, 18 August

    China’s tech giants pour billions into Xi’s vision of ‘common prosperity’. Alibaba announced that it will invest $15.5bn into “common prosperity” initiatives; Tencent said it would double the money it is putting towards social initiatives. CNBC, 3 September

  • 'Xi Jinping Thought' introduced into national curriculum. The education ministry said it will incorporate Xi’s ideology into the national curriculum, from primary schools to graduate programmes, at the start of the new school year. The Guardian, 1 September

  • Children's online gaming cut to three hours a week. The National Press and Publication Administration ordered gaming companies to ensure that online gamers under the age of 18 will only be allowed to play for an hour from 8-9pm on Fridays, weekends and holidays. SupChina, 31 August

  • Anti-corruption watchdog cracks down on entertainment industry. The Chinese government took steps to rein in celebrity worship and talent shows, after the Cyberspace Administration criticised the “chaos” of fan clubs. NYT, 27 August

  • Plans to cap the cost of renting a home in cities. The Chinese government said rent in cities should not rise by more than 5% a year. Reuters, 1 September

  • Tightened competition rules for internet groups. The State Administration for Market Regulation released draft rules that banned unfair competition among internet companies and could come into force this year. FT, 17 August

  • Steps to regulate brutal '996' work culture. In a joint statement, China's top court and labour ministry detailed 10 court decisions related to labour disputes, many involving workers being forced to work overtime. BBC, 2 September

  • New rules on algorithms. The Cyberspace Administration of China said companies should not set up algorithm models that entice users to spend money in a way that may disrupt public order. Reuters, 27 August

  • Reports of planned bans US IPOs for data-heavy tech firms. WSJ, 27 August

  • Ride-hailing platforms ordered to rectify problematic operations. Global Times, 2 September

  • China to create new stock exchange for SMEs in Beijing. Xi’s announcement is part of ongoing push to develop onshore capital markets. FT, 2 September

Key analysis:

Analysis: Profound transformations. An article penned by a virtually unknown blogger and shared across state media has prompted speculation that China is on the brink of a new political movement. China Media Project, 1 September

Long read - the Chinese control revolution: the Maoist echoes of Xi’s power play. The Chinese leader is extending the party’s dominance over civil society. The flurry of activity has many of the hallmarks of a new political era. FT, 6 September

The super-rich, ‘sissy boys’, celebs – all targets in Xi’s bid to end cultural difference. Rana Mitter. The Guardian, 5 September

Economy & tech

China’s dodgy-debt double act: The agonies of Huarong and Evergrande. The heavily indebted Evergrande has warned of the risk of default over liquidity problems, highlighting debt stresses in China. WSJ, The Economist, 4 September

China crisis for chip maker Arm. For more than a year, Arm has been trying to wrestle back control of its Chinese venture from Allen Wu, a 17-year company veteran who has been accused of abusing his position for his own financial gain. The Telegraph, 4 September

Didi: China ride-hailing giant halts plan to launch in UK. The company’s plans to launch have been pushed back at least 12 months. The Telegraph, 23 August

CCTV watchdog criticises Hikvision Uyghur response. Britain’s independent Surveillance Camera Commissioner published letters exchanged with Hikvision after increased scrutiny over its business in Xinjiang. Business Insider, 6 August

UK's Newport Wafer Fab now under Chinese ownership. The UK’s national security review is yet to conclude. In August, a UK-based consortium publicly announced that they would be willing to act as a “white knight” if the Nexperia purchase was blocked. The Register, The Guardian, 17 August.

Italian authorities investigate sale of drone company to China. Six managers of an Italian company that makes military-grade drones for Nato have been reported to prosecutors after a lengthy investigation by financial crimes police. This thread by Devin Thorne highlights the role of CRRC, which also acquired UK-based Dynex Semiconductor.

Longer reads & opinion

The Guardian view on anti-Chinese suspicion: target espionage, not ethnicities. The Guardian, 10 August

'Why trying to buy British will leave you seeing red': What happened when our writer tried to boycott China. This is Money, 2 September

Britain’s China doves push back against ‘flag-waving’ rhetoric on Beijing. SCMP, 5 September

China, Semiconductors, and the Push for Independence - Part 1. A deep dive into the choke points that may block China’s plans to develop supply chain sovereignty in semiconductors. Chinese Characteristics, 17 August

Podcast: Adam Tooze on understanding China’s rise in historical context. Sinica, 19 August

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China News - 6 September 2021

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