China News - 8 July 2021

Tomorrow: Assessing the UK’s 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

China’s gene giant harvests data from millions of women. A Chinese gene company selling prenatal tests around the world developed them in collaboration with the country's military and is using them to collect genetic data from millions of women for sweeping research on the traits of populations, a Reuters review of scientific papers and company statements found. BGI says it stores and re-analyzes left-over blood samples and genetic data from the prenatal tests. Reuters, The Guardian, 7 July

PM orders review purchase of semiconductor producer by Chinese-owned firm. Boris Johnson has overruled his ministers to order a review into a Chinese-backed takeover of Britain’s biggest microchip factory. The Prime Minister told MPs that he has asked the National Security Adviser, Sir Stephen Lovegrove, to assess the £65m sale. Kwasi Kwarteng, the Business Secretary, had previously declined to intervene, saying the deal had been “considered thoroughly” and was an economic matter for the Welsh government. The Telegraph, The Guardian, BBC, The Times, FT, New Statesman, 7 July

Allowing the sale of Britain’s biggest chip manufacturer to China is a mistake. Beijing, Brussels and Washington know that semiconductors – already in short supply – are key to sovereignty. Why don’t we? Tom Tugendhat in The Telegraph, 7 July

UK must match rhetoric with action on China’s treatment of Uyghurs, say MPs. In a new report by the Foreign Affairs Committee, titled Never Again: The UK's Responsibility to Act on Atrocities in Xinjiang and Beyond, it calls on efforts to support members of the Uyghur diaspora in order to support the “survival of Uyghur culture”. It also calls for a diplomatic boycott of the 2022 Winter Olympics. The Telegraph, The Times, The Guardian, 8 July

EU starts work on rival to China’s Belt and Road Initiative. According to draft EU Council conclusions seen by POLITICO, European governments want the Commission to spend the next nine months coming up with a list of "high impact and visible projects" to rival Beijing's scheme. Politico, 8 July

European Parliament to call for non-binding Beijing Winter Olympic boycott and sanctions on Hong Kong leaders over Apple Daily closure. But Greece’s Prime Minister Kyriakos Mitsotakis will attend the Beijing Winter Olympics in February, breaking ranks with other EU members. SCMP, 8 July

White House says it does not support Taiwan independence. Taiwan News, 8 July

National security law: UN rights official calls on Beijing to allow fact-finding mission to Hong Kong. SCMP, 7 July

China focus

China considers closing loophole used by tech giants for US IPOs. The China Securities Regulatory Commission is leading efforts to revise rules on overseas listings that have been in effect since 1994. Once amended, the rules would require firms structured using the so-called Variable Interest Entity model to seek approval before going public in Hong Kong or the US. Bloomberg, 7 July

Economic thought of Xi Jinping to be immortalised in newly established research centre. The announcement follows last month’s establishment of the Xi Jinping Research Centre for the Rule of Law, and the Xi Jinping Thought on Diplomacy Research Centre last year. SCMP, 7 July

WeChat deletes Chinese university LGBT accounts in fresh crackdown. Reuters, BBC, 8 July

Economy & tech

Uber faces Chinese challenge as Didi hits UK roads. Didi, the Chinese taxi-hailing app, is to launch in Britain within weeks as it takes on US rival Uber. The Beijing-headquartered business has secured its first licences in Salford and Sheffield and is stepping up preparations to start carrying customers. The Telegraph, 8 July

China’s rival to Boeing and Airbus set to join battle for the skies. China’s first passenger jet is nearing approval to start commercial flights. FT, 7 July

Biden faces green dilemma in push to build US rare earths capacity. Attempts to reshore rare earths processing in the US are facing backlash over the pollution. FT, 8 July

Longer reads & opinion

Policy brief: Mapping China’s semiconductor ecosystem in global context: Strategic dimensions and conclusions. SNV, 30 June

Cover story: How China bought Cambridge. The Spectator, 8 July

FT View: Didi listing provides a cautionary tale. FT, 8 July

Xi Jinping’s totalitarian regime cannot coexist with the democratic world. Ambrose Evans-Pritchard in The Telegraph, 7 July

Comment: Only a full boycott of Winter Olympics will hurt China. The Times, 8 July