China News - 7 August

International

US despatches warships after China and Russia send joint naval patrol near Alaska. The flotilla’s “highly provocative” proximity to Alaska was a “historical first” according to retired naval captain, Brent Sadler. In response, the US despatched four navy warships and a reconnaissance aeroplane. Maya Yang. The Guardian, 6 August  

Philippines and US accuse China of illegally targeting supply ships. A Chinese coast guard ship blocked and water cannoned the second of two boats chartered by the Philippine military. This incident stopped the boat from unloading food, water and fuel supplies “in wanton disregard of the safety of the people on board and in violation of international law”. Kathrin Hille. Financial Times, 6 August

China’s embassy to Russia criticises treatment of citizens at the border. Five Chinese citizens were refused entry into Russia. After hours of examination they had their visas cancelled, as the destination shown on their visas did not match their actual destination. The Chinese embassy described their treatment as inconsistent with overall friendly relations between the two countries. David Kirton. Reuters, 5 August

China to send special envoy to Saudi Arabia for Ukraine talks. Li Hui, the Chinese Special Envoy for Eurasian Affairs, will visit Jeddah for international discussions on the peaceful settlement of the Ukraine crisis. A spokesperson at the Chinese foreign ministry said “China is willing to work with the international community to continue to play a constructive role in promoting a political solution to the crisis in Ukraine”. Reuters, 4 August

Australia calls for China to end trade curbs as barley tariffs lifted. Australian authorities have used the CCP’s decision to drop anti-dumping tariffs on barley imports to call for the end of all remaining trade restrictions as commercial ties between the two edge towards normalisation. Dominique Patton and Lewis Jackson. Reuters, 4 August

China to relax internal migration rules to kickstart economy. The ministry of public security has announced plans to lower the bar for obtaining an urban hukou (household registration). Beijing wants local governments in small and medium cities to cancel hukou restrictions in an attempt to make it easier for people to settle and spur much-needed economic growth. Amy Hawkins. The Guardian, 4 August

Economy & Tech

Shift to net-zero grid threatens dependence on China, warns battery tsar. Professor Pam Thomas, chief executive of the Faraday Institution, said the UK needed “sovereign capabilities” and supply chains of its own, so that it is less vulnerable to a geopolitical crisis. China is at the global forefront of research and battery production capacity. Matt Oliver. Telegraph, 6 August

Chinese economists told not to be negative as rebound falters. Authorities have told multiple local brokerage analysts and researchers at leading universities and think-tanks to avoid speaking negatively in public about deflation. Sun Yu. Financial Times, 6 August

Biggest Chinese mutual funds near limits on offshore investment. Some of China’s mutual funds are seeking higher returns elsewhere in the world against a backdrop of slowing domestic growth. China’s Qualified Domestic Institutional Investor scheme allows banks to bypass the country’s strict capital controls and buy securities abroad. The total quota has risen from $87bn to $166bn over the last decade. Cheng Leng and Thomas Hale. Financial Times, 6 August

Bertelsmann Investments to plough $700mn into Chinese start-ups. One of Germany’s biggest venture capital funds plans to invest in China’s “very impressive” entrepreneurial talent over the next three to five years. Laura Pitel. Financial Times, August 5

Opinion & long-reads

China releases eight-part documentary showing its ability to attack Taiwan. “Chasing Dreams” was created to mark the 96th anniversary of the People’s Liberation Army. The documentary is about the military’s readiness to attack Taiwan, and shows soldiers pledging to die attacking the island if required. Louise Watt. Telegraph, 6 August

In Niger, China’s path to stability may diverge from Western security priorities. The CCP already has vast economic interests in the Sahel region, which is increasingly being ruled by military regimes. Observers predict that China is unlikely to do much beyond supporting existing mechanisms to solve regional security threats. Jevans Nyabiage. South China Morning Post, 6 August

What caused the record rainfall in Beijing and northern China? Typhoon Doksuri has caused record-breaking rainfall of an unusually long duration. 1,003mm of rain was recorded over three days in the province of Hebei, a figure normally seen over a year and a half. Large amounts of vapour were lifted by a low-altitude wind causing heavy rainfall across northern China. Ethan Wang and Ryan Woo. Reuters, 4 August

Anger in China over plans to use cities as “moat” to save Beijing from floods. Ni Yuefeng, the Communist party secretary for Hebei, suggested that the city of Zhuozhuo and other flood-hit areas near the capital should be used as a “moat”. Chinese social media users have reacted angrily to these comments. Amy Hawkins. The Guardian, 4 August