China News - 8 January 2021
New report shows UK Government bought £150m of PPE from Chinese firms linked to Uyghur human rights abuses. The Health Department paid £122m to Winner Medical, which uses cotton produced by a supplier that works in Xinjiang and has ties to a paramilitary group (XPCC) accused by the US of using forced labour. Contracts were awarded to Winner as late as May. The Telegraph, 7 January
Hong Kong government reported to be “investigating” the possibility of prosecuting Danish parliamentary politicians and demanding their extradition. HK authorities want to prosecute the two Danish MPs who facilitated Ted Hui’s escape from Hong Kong to Denmark. Danish foreign minister Jeppe Kofod told the newspaper that “Danish politicians can and shall naturally meet with whoever they want, without fear of reprisals. The government utterly defends that right.” Politiken, The Local, 7 January
China’s government has told the country’s media to censor reporting on an antitrust probe into tech group Alibaba. The FT reports that the move by authorities to exert control over the media coverage shows that the issue has become a matter of national political sensitivity in China. “This directive is severe and unusual,” said Xiao Qiang, a research scientist at the University of California at Berkeley School of Information. FT, 7 January
US: Trump admin on China: US ambassador to United Nations will visit Taiwan, Mike Pompeo says, angering China. Trump administration officials are also expected to discuss a proposed expansion of an executive order banning U.S. investment in blacklisted Chinese companies. SCMP, Reuters, 7 January
Chinese Embassy in US claims treatment of Uyghur women is promoting gender equality in widely condemned tweet. Twitter, 7 January
EU-China deal: SCMP reports that China tried to punish European states for Huawei bans by adding eleventh-hour rule to EU investment deal. Draft text shows Beijing looked to withhold telecoms sector benefits to firms from countries with restrictions on Chinese telecoms companies. The clause was struck-through by EU negotiators. SCMP, 8 January
Hong Kong
Imprisoned HK pro-democracy activist Joshua Wong rearrested for violating Beijing's controversial security law. The Telegraph, 7 January
Chinese Embassy publishes remarks on the UK’s response to arrest of 53 people in Hong Kong, says UK is “interfering”. Chinese Embassy in the UK, 7 January
China watch
China places 11m under lockdown after outbreak in northern city. More than 100 new Covid cases have been detected in the northern city of Shijiazhuang, and officials have banned all residents from leaving the city. Reuters, BBC, CNBC, 7 January
Beijing sees coldest temperatures in over 50 years. The resultant spike in demand for electricity means that Beijing has fired up its only remaining coal power plant for the first time since 2017. Sixth Tone, Reuters, 7 January
CCP doubles down on “united front” efforts, with aim of targeting Chinese abroad to rally support. The update of a 2015 regulations said work must be done to contain “Taiwan-independence forces” and better safeguard China’s core interests among Chinese citizens overseas. SCMP, 7 January
China jails former top banker for life for taking £10m bribes in second major graft case in a week. Hu Huaibang is a former party secretary and chairman of the China Development Bank. The Telegraph, 7 January
Economy & tech
Second Chinese coronavirus vaccine said to be effective. The recently released results from a trial in Brazil for the Sinovac vaccine show a 78% efficacy rate. NYT, 8 January
Strong global demand for Chinese goods has created container shortage.
Chinese EV startup Nio aims to become the Tesla of China, becoming the world’s 4th most valuable automaker. China’s biggest automaker, SAIC, is also aiming to boost sales by 14% this year. CNBC, Bloomberg, 7 January
China’s rapid recovery puts global dollar hegemony in doubt. Citi says the yuan could touch strongest in almost 30 years. Bloomberg, 7 January
Longer reads & opinion
The Economist leader: How to deal with China. All democracies are struggling to reconcile the conflicting objectives of doing business with a huge and vibrant economy, and protecting national security and human rights. The Economist, 9 January
Matthew Pottinger exits, but his China strategy is here to stay. Even though Pottinger’s name was largely unknown to the public, his influence on U.S. foreign policy will be felt for years to come. Washington Post, 7 January
Congress is moving to block goods made with the forced labour of Uyghurs. The US has led the way with initiatives like the Uyghur Forced Labour Prevention Act. But 88% of China’s textiles and clothing are produced for domestic consumption. The Economist, 8 January
The Long Trail of British China Policy. RUSI Newsbrief (£), 7 January 2021
Chaguan: Cynicism explains a flawed new EU-China commercial pact. Ask European envoys if the EU erred by agreeing to a deal now, and they are divided. The Economist, 9 January
‘Global Britain’: The UK in the Indo-Pacific. Unlike France, Germany, and the Netherlands, the UK has not announced an official Indo-Pacific strategy. The Diplomat, 7 January
Comment: Sad to say, but Trump and Covid combined have made a mockery of supposed Western superiority. We once thought that China would learn to become more like us. Alas, our incompetent Covid response may force us to become more like them. The Telegraph, 8 January
Analysis: China is desperate to control the narrative of Covid-19's origin - whatever the cost. The Telegraph, 6 January