China News - 7 June 2022
International
China secretly building PLA naval facility in Cambodia, Western officials say. China is secretly building a naval facility in Cambodia for the exclusive use of its military, with both countries denying that is the case and taking extraordinary measures to conceal the operation, Western officials told the Washington Post. The new base will reportedly be on the northern portion of Cambodia’s Ream Naval Base on the Gulf of Thailand, raising China’s military influence near the Malacca Strait, the main channel between the Indian and Pacific oceans and another key chokepoint for global trade. The Washington Post, The Times, 6 June
National Security Bill: Home Office lays out foreign interference deterrents. An updated foreign interference offence is to create a more challenging operating environment for, and to deter and disrupt the activities of, foreign states who seek to undermine UK interests. The Home Secretary told MPs yesterday that the UK had cause to "strengthen visa screening of Chinese academics and researchers in sensitive areas of research... and step up engagement with higher education research sectors to alert them to the threat and risk of Chinese espionage." Home Office, Beijing to Britain (via Twitter), 7 June
EU lawmakers push to designate human rights conditions in Xinjiang as ‘genocide’. European lawmakers are pushing to designate alleged human rights abuses against Uyghurs and other ethnic Muslims in Xinjiang as “genocide” in a resolution set to reach the Parliament this week. The motion enjoys the support of four of the biggest parties in the European Parliament, the SCMP understands, meaning it appears likely to succeed. SCMP, 7 June
Chinese microchip company boss accused of spying and stealing trade secrets. ASML, the Dutch company whose equipment is used to manufacture cutting edge semiconductor circuits said Zongchang Yu, a former employee, had transferred trade secrets to a company supported by the Chinese Communist Party. Mr Yu, the company's chief executive, is wanted in California on charges that he stole technology from ASML, the world’s only manufacturer of extreme ultraviolet lithography machines. The Telegraph, 6 June
Top economist urges China to seize TSMC if US ramps up sanctions. “If the US and the West impose destructive sanctions on China like sanctions against Russia, we must recover Taiwan,” said Chen Wenling, chief economist at the China Center for International Economic Exchanges. The research group is overseen by the National Development and Reform Commission, China’s top economic planning agency. Bloomberg, 7 June
Crisis-hit Sri Lanka needs $5 billion, help from China for essentials. Sri Lanka will need $5 billion over the next six months to ensure basic living standards, and is renegotiating the terms of a yuan-denominated swap worth $1.5 billion with China so as to fund essential imports, the prime minister said on Tuesday. Reuters, 7 June
China's top diplomat says new, old China-Japan problems intertwined. Reuters, 7 June
Kuomintang chairman pitches his party as stabilising presence between Beijing and Taipei. SCMP, 7 June
Economy & tech
US gave investors 'green light' on blacklisted Chinese companies. Just ahead of a deadline last Friday for US investors to cease trading in the stocks and bonds of companies officially linked to the Chinese military, the Washington agency charged with enforcing the ban quietly notified investors that they would not be punished for holding onto such securities. Nikkei Asia, 6 June
China allows tech trio to resume business after cyber probe. Chinese authorities are allowing Full Truck Alliance and Kanzhun to sign up new users again almost a year after both companies were entangled in cyber security investigations alongside ride-hailing group Didi. FT, 6 June
Buffett-Backed BYD jumps ahead of Tesla in battery metal push. The Chinese electric-car maker has charged into direct mining of lithium with deals in Sichuan, Indonesia, Argentina and Chile and a shopping spree in Africa. Caixin, 7 June
Elliott Associates sues LME for $456 million in nickel debacle. Caixin, 7 June
Long reads & opinion
Taiwan: preparing for a potential Chinese invasion. Xi Jinping’s ambitions and the modernisation of China’s military are prompting growing fears about an attempt to annex the island. Kathrin Hille and Demetri Sevastopulo. FT, 7 June
Ukraine war deepens China’s mistrust of the west. The conflict in Europe has entrenched the differences between Beijing and the US and its allies. Vincent Ni. The Guardian, 6 June
Past experience crucial for China-UK future. Liu Xiaoming (former Chinese ambassador to the UK). China Daily, 7 June
Archive Collection: 100 years of China in international politics. Evelyn Goh. Chatham House, 6 June
Event: Can the UK stay scientifically competitive in a multipolar world? A discussion on 9 June hosted by Onward featuring Tom Tugendhat MP and Jeremy Quin MP. Details here.