China News - 7 July 2021
Next event: Towards an Indo-Pacific Strategy. Join Claire Coutinho MP, Sophia Gaston, and Michael Auslin for a discussion on the UK’s tilt to the Indo-Pacific. How can the UK successfully deepen its engagement with the world’s most dynamic region whilst managing China’s increasing power and international assertiveness? Friday 9 July, 5-6pm. Register here.
International
Chinese premier Li Keqiang meets with UK business leaders. In a meeting organised by the China-Britain Business Council, Li reportedly spoke about the inevitability of further opening up in China’s economy and stressed that UK businesses in China would be treated fairly. Quartz, Sky News, Bloomberg, Xinhua, 6 July
British chipmaker Newport Wafer Fab acquired by Wise Road Capital, a little-known Chinese venture capital fund. The five-year-old Chinese private equity fund is emerging as a front runner in acquiring semiconductor operations across Asia and Europe. SCMP, 6 July
Britain must improve BN(O) visa scheme to protect vulnerable Hong Kong youths, says UK Home Affairs Committee. Wednesday's report said that many young pro-democracy activists fleeing Hong Kong were most likely estranged from their families, meaning those who were born after 1997 cannot apply for the scheme. HKFP, BBC, 7 July
Banks accused of Beijing-backed ‘asset grab’ as Hongkongers in UK denied access to pension savings. Those seeking refuge - and a new life - in the UK after a crackdown in the city say they are being denied access to their MPF pension savings built up over many years. HKFP, 4 July
Japan vows to defend Taiwan alongside the US if China invades the island. Deputy prime minister Taro Aso reportedly said a 'major problem' in Taiwan could also pose a threat to the Japanese city of Okinawa. Daily Mail, The Times, 6 July
Germany arrests suspected double agent accused of spying for China. According to a press release from the prosecutor’s office, the man allegedly supplied the Chinese secret service with information for almost a decade, starting in 2010. Politico, DW, ABC, 6 July
EU starts work on rival to China’s Belt and Road Initiative. European governments want the European Commission to spend the next nine months coming up with a list of "high impact and visible projects" to rival Beijing's scheme. Politico, 7 July
Xi Jinping urges countries to confront ‘technology blockades’ in swipe at US. The Chinese president told a virtual gathering involving political parties of 160 nations that any country stopping another’s development must be opposed. The Guardian, 7 July
China trying to ‘cut Australia out of the herd’ with diplomatic freeze, US warns. White House coordinator for the Indo-Pacific Kurt Campbell says Beijing’s targeting of Australian exporters has only intensified Canberra’s ties with the US. The Guardian, 7 July
Asian disparities reflect difference in quality of Covid vaccines. Contrasting fortunes of Singapore and China highlight how the efficacy of jabs is key to reopening. FT, 6 July
Beijing 2022 Winter Olympics: UK government and royals should boycott games over Uyghur 'genocide', says Labour. Sky News, 7 July
Strongest evidence yet suggests natural origins for Covid, say scientists. The Telegraph, 6 July
China focus
Alleged assault on scientists overshadows China’s space race success. An alleged attack on two eminent scientists by a Chinese aerospace executive and Communist party official after he had been drinking has sparked a wave of public anger and threatens to embarrass Beijing. FT, 6 July
Tibet monks jailed with no apparent evidence of wrongdoing. Four men were jailed for up to 20 years after a violent raid on a monastery in 2019, says Human Rights Watch. The Guardian, 6 July
China commits to raising retirement age as pension shortfall looms. Caixin, 6 July
China's WeChat deletes university LGBT accounts. Reuters, US News, 7 July
How China is addressing its waste problem.Lombard Odier, 6 July
Economy & tech
China’s technology giants have wiped out a combined $831 billion since their February peaks. Beijing’s expanding crackdown on the sector is fuelling investor concern that the selloff is far from over. Bloomberg, 7 July
Chinese regulators suggested Didi delay its U.S. IPO. Ride-hailing giant, under pressure to reward shareholders, pushed ahead with NYSE listing despite concerns of China’s cybersecurity watchdog. WSJ, 5 July
Weibo, state firm plan to take China’s Twitter private. Reuters, Al Jazeera, CNBC, 6 July
China busts chip smuggling operation from Hong Kong amid semiconductor supply crunch. SCMP, 7 July
Longer reads & opinion
As China rises, Britain and Australia need closer security ties. China Research Group chair Tom Tugendhat discusses the need to plan a new future for British and Australian cooperation. Foreign Policy, 6 July
The power vacuum in Afghanistan left by the US and the UK will draw Beijing's watchful gaze. China’s leaders will be keen to ensure that fault lines don’t emerge in its flagship Belt and Road Initiative and there are signs that bilateral partnerships are extending beyond infrastructure deals. Tom Tugendhat. CityAM, 7 July
The Telegraph view: We cannot afford to lose critical technology companies. A Chinese bid to buy the UK's leading silicon chip manufacturer is a strategic concern. 6 July
What Didi got wrong. The ride-hailing app won the Chinese cab wars. Its next logical step turned out to be a huge mistake. James Palmer. Foreign Policy, 6 July
The Didi clampdown marks a sea change in the politics of global investment. For Beijing ‘data security’ now trumps the old desire to have its tech firms seen as global champions. Nils Pratley. The Guardian, 6 July
For China’s business elites, staying out of politics is no longer an option. Li Yuan. NYT, 6 July
Time to confront China’s ‘counterterrorism’ claims in Xinjiang. China Power - The Diplomat, 6 July
Hong Kong gets its Great Firewall, one brick at a time. Tim Culpan. Bloomberg, 6 July
Stubborn optimism about China’s economy. The Economist, 3 July