China News - 9 August
International
Lawmakers want US to address security concerns about Chinese cellular modules. Mike Gallagher, chair of the House China Select Committee, and Raja Krishnamoorthi raised concerns over medical equipment, vehicles and farm equipment being controlled remotely by China if they are made with Chinese cellular modules. David Shepardson. Reuters, 8 August
Chinese hackers accessed Japanese defence secrets “for years”. According to US intelligence officials, Chinese military hackers have compromised Japanese networks for a prolonged period of time. Partly as a result of continued pushing from the US, the Japanese authorities have announced a tenfold increase in their cybersecurity spending and will quadruple the number of specialist personnel. Gavin Blair. The Times, 8 August
German airport operator Fraport nudges up outlook, sees huge 2024 China boost. Matthias Zieschang, Frankfurt airport’s finance chief, has forecasted a “huge and significant” increase in Chinese passengers next year. He expects capacity to reach up to 90% of pre-pandemic levels (it is currently at 40%). Anna Mackenzie. Reuters, 8 August
Economy & Tech
Could China spy on us through our electric cars? The electronic control unit in electric cars is a cellular internet of things module (CIM). This controls everything from the cameras and audio to geolocation capability and the engine. Most importantly it is the gateway for information to get in and out of the car. UK MPs and ministers are rightly concerned. Charles Parton. The Spectator, 7 August
China’s plan to rule the world through its smart devices, FCC urged to act. The increased use of CIMs in EVs has prompted concerns in Congress. A letter from the House Select Committee on Strategic Competition between the US and CCP is pushing for solutions to address a potential security risk. Shaun Waterman and Didi Kirsten Tatlow. Newsweek, 8 August
EU struggles to “de-risk” trade with China. Although Brussels labelled China a “systemic rival” in 2019, Chinese goods coming into the EU almost doubled between 2018 and 2022. China continues to be the largest supplier of goods to the EU for the first half of this year. Valentina Romei. Financial Times, 8 August
China exports see biggest drop for three years. According to official figures, exports fell by 14.5% in July compared to last year, while imports dropped 12.4%. These figures raise concerns that China’s economic growth could continue to slow this year. Faarea Masud. BBC News, 8 August
Cross-border debt boom aids China’s efforts to widen renminbi use. Sales of renminbi-denominated “panda” bonds by foreign issuers have surpassed the 2021 record reaching Rmb75bn ($10.4bn) in China this year. Renminbi-denominated “dim sum” bonds have also topped Rmb320bn in Hong Kong. Hudson Lockett and Cheng Leng. Financial Times, 8 August
China’s Country Garden missed bond payments as turmoil grips property sector. Country Garden, China’s largest private developer, has missed interest payments on two international bonds and is battling to stave off a liquidity crisis. Due in February 2026 and August 2030, the $500mn bonds were already trading at distressed levels on reports of $22.5mn in missed coupon payments. Thomas Hale, Hudson Lockett, Cheng Leng and Kaye Wiggins. Financial Times, 8 August
Opinion & long-reads
Britain’s Chinese student diaspora should not live in fear. The author is a dissident Chinese student studying law in the UK. Chinese students are haunted with fear and apprehension for the growing CCP influence among Chinese students in British universities. Many students are deeply committed to Chinese culture and heritage but are concerned with the level of CCP influence and monitoring of their actions. Lyndon Li Shixiang. Financial Times, 8 August
Why China should tread carefully around French interests in Africa and the Pacific. During China-France discussions in Beijing last month, Chinese Vice Premier He Lifeng hoped that France “will stabilise the tone of friendly cooperation” with the EU. Emanuele Scimia. South China Morning Post, 8 August