International
UK will control Chinese takeovers and monitor university projects. The Times reports that “Downing Street is pressing for legislation to make it mandatory for British companies to report attempted takeovers that could give rise to security risks.” It says, “The prime minister also wants “academic partnerships” and research projects to be included under the rules amid concern about links between British universities and Chinese companies.” Businesses will have to report the takeover if there is a risk that it could give a foreign company or hostile state the power to undermine Britain’s national security through disruption, espionage or by using “inappropriate leverage”. At present government collects no data on individual firms’ university investments. Times, 8 June & Written Answer
Pressure grows on HSBC to withdraw China support. The Sunday Times reported that MPs from the China Research Group have “written to the bank urging it to drop support for the laws”. Labour and the Liberal Democrats have also written. In the FT Patrick Jenkins contrasts corporate “double standards” on China. Sunday Times, 7 June. FT, 8 June
HSBC lobbying U.K. government not to block Huawei. Telegraph, Reuters, 6 June
China threatens to pull plug on new British nuclear plants, National Security Committee signs off new China stance. China’s ambassador to the UK, Liu Xiaoming, told business leaders that abandoning Huawei could undermine plans for Chinese companies to build nuclear power plants. China General Nuclear Power Corporation hopes to build its own nuclear reactor at Bradwell in Essex.
The Sunday Times also reported that the National Security Council (NSC) has signed off plans to work with Britain’s Five Eyes intelligence partners to build western alternatives to Huawei. It notes a vigorous debate within the cabinet. It says that Huawei has hired five public affairs companies to make its case inside and outside government. Sunday Times, 7 May & Twitter thread on Bradwell
Boris Johnson plans to end reliance on Chinese technology by forming a pact with UK's 'Five Eyes' intelligence partners. Mail on Sunday, 7 June
British businessman tells of methods used to extract forced confession in China. Mail on Sunday, 7 June
On the Marr show on Sunday US Senator Rick Scott claimed “we have evidence that communist China is trying to sabotage us or slow it down.” BBC, 7 June
Beijing tries to scupper tourism to Australia. The Chinese Ministry of Culture and Tourism released on Friday a statement warning its citizens not to travel to Australia due to a "significant increase" in racism against Chinese and Asian people. Global Times, Sydney Morning Herald, 6 June
PLA practice high altitude mobilisation amid China-India tensions. Global Times, 7 June
UK bids to become ASEAN Dialogue Partner. The UK would gain access to ASEAN Summits and ministerial meetings. Twitter, 6 June & FCO Statement, 6 June
China’s hypersonic cruise missile sees technological breakthrough. Global Times, 8 June
Economy / tech
Former head of MI6 warns of IP theft from UK universities. In the Telegraph Liam Halligan quotes from an interview with Richard Dearlove, who says: “We've been very lax in allowing Chinese graduates to study in subject areas where, in my view, there is now an organised rip-off of intellectual property, which certain individuals are busy shipping back to the Chinese state.” Sunday Telegraph, 7 June
Huawei
Huawei “has entered a state of war” says founder. Ren Zhengfei told staff in 2018 that the company was in a battle with the US and they should "surge forward, killing as you go, to blaze us a trail of blood". WSJ, 6 June
Huawei plans media blitz in UK as 5G decision looms. BBC, 8 June
Huawei stockpile of US chips to run out. Caixin, 4 June
$140 Billion at Stake for Hong Kong Tycoons Backing Security Law. Bloomberg, 6 June
Prestigious U.K. Schools Push On With Plans to Open in China. Bloomberg, 07 June
China’s exports drop off as global slowdown hits the economy. FT, 7 June & Reuters, 7 June & Asia Times, 7 June
Some Economists Question Strength of China’s Labor Market. Official statistics suggest the unemployment rate has barely ticked up since the start of the pandemic, but the data fail to account for large parts of the population. WSJ, 7 June
Jaguar Land Rover borrow £556 million from Chinese banks. Reuters, 5 June
Romania abandons plans for Belt and Road joint nuclear energy project. SCMP, 8 June
Longer reads and comment
A new Cold War has begun. Robert Caplan - Foreign Policy, 7 June
Yes, America Is in a Cold War With China - Mike Gallagher, WSJ, 7 June
China Hails Its Virus Triumphs, and Glosses Over Its Mistakes. NY Times, 6 June
The Soured Romance Between China and Corporate America. WSJ, 5 June
Linda Lew: Coronavirus pandemic shows global consequences of China’s local censorship rules. “WeChat, China’s most popular messaging app, censored 516 keyword combinations directly related to Covid-19 between January 1 and February 15.” SCMP, 7 June
Has COVID-19 Changed How China’s Leaders Approach National Security? ChinaFile, 3 June
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