China News - 9 December 2021

International

UK joins diplomatic boycott of Beijing Winter Olympics. Britain said on Wednesday it will join the United States, Canada and Australia in a diplomatic boycott of the Games, with Prime Minister Boris Johnson confirming that no ministers or officials are expected to attend. The withdrawal drew a stern rebuke from Beijing, which said Johnson was trying to smear the Games and that British ministers had not been invited. Reuters, BBC, The Guardian, 8 December

Boycotting Winter Olympics is the right move. China Research Group co-chair Alicia Kearns explains why it would have been unthinkable for the UK to lend its support to the CCP’s “prize propaganda performance.” The Times, 9 December

Truss stresses importance of alliances and common values in first major foreign policy speech. The foreign secretary set out her international policy vision at Chatham House on Wednesday, emphasising that the UK is “determined to work with our friends to form a network of liberty” in a global battle for economic influence. Alongside seeking new free trade agreements, Truss mentioned the need to build new partnerships with low- and middle-income countries to counter China’s dominance of the development finance landscape. Gov.uk, 8 December

Uyghur Tribunal due to announce findings on whether China’s actions in Xinjiang amount to genocide. Ahead of the verdict in London, the BBC have released an interview with Erbakit Otarbay, who gave evidence to the tribunal as one of an estimated one million Kazakhs, Uyghurs and other ethnic minorities held as part of a mass incarceration programme. BBC, 9 December

EU threatens China with WTO action as reports of Lithuanian trade blockade escalate. The EU is investigating complaints from Lithuanian exporters that the country was ‘wiped’ from the Chinese customs system due to the Baltic nation’s efforts to strengthen ties with Taiwan. Beijing has also told multinationals to sever ties with Lithuania or face being shut out of the Chinese market, a senior government official and an industry body told Reuters. SCMP, Reuters, 9 December

Jimmy Lai among three Hong Kong democracy activists convicted over Tiananmen vigil. Lai, the 74-year-old owner of the now-closed pro-democracy Apple Daily newspaper, was found guilty of unlawful assembly charges on Thursday alongside former journalist Gwyneth Ho and prominent rights lawyer Chow Hang-tung. BBC, The Guardian, The Telegraph, 9 December

US to blacklist Chinese AI company SenseTime over Xinjiang ahead of IPO. The US Treasury will place SenseTime, the Chinese artificial intelligence company that specialises in facial recognition software, on a list of “Chinese military-industrial complex companies”. FT, 9 December

China to ‘reconsider’ bilateral relations if Japan takes action on Taiwan. SCMP, 9 December

New Zealand faces growing challenge from Chinese nationalism, defence report warns. The Guardian, 9 December

Taiwan strikes diplomatic blow with deal to send pangolins to Prague Zoo. The Times, 8 December

Economy & tech

Evergrande defaults for first time as China debt strains spread. The property giant’s long-term foreign-currency issuer rating was cut to restricted default at Fitch Ratings, which cited missed dollar bond interest payments whose grace period expired earlier this week. The downgrade may trigger cross defaults on Evergrande’s $19.2bn of dollar debt. Bloomberg, 9 December

China ‘can’t avoid’ tough negotiations on state-owned enterprises and subsidies at WTO, trade ambassador says. The world’s second largest economy should treat rising foreign concern over subsidies and the prominence of SOEs in the economy with a more rational and open attitude, Li Chenggang said on Wednesday. Li stressed the need for China to take part in creating new international trade rules, while also strengthening domestic reforms. SCMP, 9 December

More companies in Asia seek carbon offsets after COP26. Asia's demand for carbon offsets is picking up as more companies in global supply chains, IT and banking sectors seek to lower their carbon footprint following the November Glasgow Climate Pact, the head of Asian exchange T-RECs.ai said. Reuters, 9 December

China’s yuan strengthens as trade surplus hits US$72 billion in November amid robust export growth. SCMP, 8 December

China's sky-high factory inflation slows amid price crackdown. Reuters, 9 December

China focus

Xi Jinping wants lawyers in China to ‘follow and embrace’ the Communist Party’s leadership. He also said the party should strengthen its “political guidance” of lawyers, with observers saying the remarks suggest there could be a further tightening of control over the legal profession. SCMP, 9 December

China's southern megacities warn of water shortages during East River drought. Authorities are asking citizens to reduce water consumption, with rainfall between January to October this year down by a quarter compared to average levels over the last decade, according to the Guangzhou government. Reuters, 9 December

Tutoring is back, and it’s free for everybody. Following government moves aimed at ending inequality in education, Beijing is trying to make sure wealthy families don't get ahead with private lessons by giving away after-school tutoring classes for free. SupChina, 8 December

Opinion & editorial

Cai Xia on why China’s one-party system holds back the country. Dictatorship undermines China’s development. It should move to a constitutional democracy, says a former member of the Chinese Communist Party. The Economist, 9 December

China’s indebted property sector highlights a fading economic revival. Xi Jinping’s mission is not only to control the housing bubble, but to rein in untethered industries and foreign capital. Phillip Inman. The Guardian, 8 December

Opinion: China policy will test Germany’s coalition. Olaf Scholz will have to move beyond Angela Merkel’s faith in change through trade. FT, 8 December

Long reads

Decoding Xi Jinping. How will China’s bureaucrats interpret his call for “common prosperity?”. Yuen Yuen Ang. Foreign Affairs, 8 December

Shein: the Chinese company storming the world of fast fashion. Jonathan Eley and Eleanor Olcott. FT, 9 December

China in the WTO – 20 happy years and (at least) one unfulfilled promise. Beijing has lived up to many of its accession commitments, but forced technology transfer lives on. Jacob Gunter. MERICS, 8 December

ASEAN running out of time to recast role as buffer in US-China great power competition. Shuxian Luo. Brookings, 8 December

How China censored Peng Shuai. Chinese propaganda officials have tried to shape the global discussion of the tennis player’s accusations, but their top-down strategy has largely stumbled. NYT, 8 December