China News - 7 December 2021
International
US announces diplomatic boycott of 2022 Winter Olympics in Beijing. The White House is looking to send a clear message that the human rights abuses in China mean there cannot be "business as usual," White House press secretary Jen Psaki said Monday. The UK, Canada, and Australia have said they were considering their positions. BBC, CNN, FT, 6 December
China attacks US diplomatic boycott of Winter Games as ‘travesty’ of Olympic spirit. The Guardian, 7 December
Block Chinese takeover of lithium miner, ministers told. Jiangxi-headquarted Ganfeng Lithium is on the cusp of securing enough support from investors in Bacanora Lithium to take control of the London-based business for £285m. A government source said ministers are monitoring the deal and that they could choose to intervene at a later stage on national security grounds, although nothing is expected imminently. The Telegraph, 6 December
British Chamber of Commerce in China calls on Beijing to improve market reforms, resume flights. With tight restrictions on international travel the top concern for British firms operating in China, the Chamber revealed on Tuesday that a large proportion of British companies have yet to return to pre-pandemic levels of revenue and optimism. SCMP, 7 December
EU will propose new trade weapon to counter China’s economic coercion. The anti-coercion instrument will target states that try to “interfere in the legitimate sovereign choices” of the EU or one of its 27 member states by applying or threatening to apply measures affecting trade or investment, according to a draft proposal seen by the South China Morning Post, and could result in countries accused of economic bullying being shut out of lucrative parts of EU market. SCMP, 6 December
Lithuania asks EU for ‘strong reaction’ to Chinese pressure. Politico, 6 December
Solomon Islands PM survives no-confidence vote after weeks of protest. Prime Minister Manasseh Sogavare has defended his government’s decision to establish diplomatic relations with China, accusing “agents of Taiwan” of attempting to destabilise the government. The Guardian, 6 December
Japan to boost army and 'capability to strike enemy bases' amid growing tensions with China. Prime Minister Fumio Kishida said the security environment around the country was 'quickly becoming more severe'. The Telegraph, 6 December
China urges Southeast Asia to join united front against new cold war. SCMP, 5 December
Microsoft seizes 42 websites from a Chinese hacking group. NYT, 6 December
Canada’s ambassador to China steps down after Huawei crisis ends. Bloomberg, 6 December
Economy & tech
Beijing frees up $188 billion for banks in second reserve ratio cut this year. The People's Bank of China (PBOC) said it would cut the amount of cash that banks must hold in reserve, releasing 1.2 trillion yuan ($188 billion) in long-term liquidity in a bid to improve the flow of credit to small businesses. The Chinese Communist party’s politburo pledged to maintain a proactive fiscal policy and “flexible” monetary policy in the coming year. Reuters, The Guardian, The Telegraph, 6 December
China property stocks rise as Beijing tries to ease Evergrande turmoil. FT, 7 December
China increasingly obscures true state of its economy to outsiders. A new data-security law has made it harder for foreign companies and investors to get information, including about supplies and financial statements. WSJ, 6 December
Semiconductor links across Taiwan Strait face political headwinds. Analysts warn that the strained cross-strait and US-China relations could bring more uncertainty to global supply chains as speculation about what could happen next is expected to rise this week when Taiwan attends the first of two US-hosted Summits for Democracy. SCMP, 6 December
London nickel market tightens as China lifts imports. Reuters, 6 December
China unveils state-owned logistics giant to improve competitiveness globally. Global Times, 6 December
China’s five-year green development plan for industrial sector lacks road map, analysts warn. SCMP, 6 December
China focus
Politburo holds meeting on 2022 economic work, anti-corruption, party discipline inspection. The meeting, chaired by Xi Jinping, acknowledged that 2021 has been a milestone for both the Party and the nation, citing China's “calm and effective responses to global changes and a pandemic, the accomplishment of the daunting task of reform and development, and the securing of a good start to the 14th Five-Year Plan.” Xinhua, 6 December
Small steps for “Xi Thought”. The appearance in headlines of the phrase “Xi Jinping Economic Thought” (习近平经济思想), a shortened form of the Chinese leaders legacy political phrase in a key policy area, indicates that the CCP is moving towards the formal introduction of the potent “Xi Thought” - putting Xi on par with Mao. China Media Project, 6 December
Doubts over China’s vaccine efficacy stoke anxiety both at home and abroad. Despite dispensing 2.5 billion doses, recent outbreaks raise uncertainty over Sinovac and Sinopharm jabs. FT, 7 December
Hong Kong’s biggest pro-democracy party rejects supporting ‘patriots-only’ election. HKFP, 7 December
Opinion & editorial
Democracy conference is about much more than democracy. This week’s summit is not just about protecting democracy at home and abroad. It’s also about how open societies will defend themselves in the future against existential technological threats. Farah Stockman. NYT, 6 December
Will Evergrande force China into a policy shift? The policy priority is shifting from regulatory tightening to supporting economic growth. Robert Armstrong. FT, 7 December
Xi Jinping sails China’s economy into a shoal. WSJ, 6 December
Ties that bind Kazakhstan to China are starting to unravel. Raffaello Pantucci. Nikkei Asia, 7 December
Long reads
Beijing briefing: The year of the tiger. In the first instalment of a new column, Yu Jie looks at what the next 12 months hold in store for China. Chatham House, 6 December
The EU is finally putting its money where its mouth is on China. Luke McGee. CNN, 6 December
China’s legal blockade: the 3 ways China blocks access to lawyers. Safeguard Defenders, 7 December
FOCAC 2021: China’s retrenchment from Africa? Yun Sun. Brookings, 7 December