China Articles - July 3, 2022
Friends,
This week ended with determinations by the G7 and NATO to recognize the PRC as a threat to the international order and counter the malign activities of the Chinese Communist Party.
In the 28-page G7 Leaders Statement the PRC was mentioned 14 times, denouncing Beijing’s human rights record, aid to Russia, aggression in the South China Sea and threats against Taiwan.
NATO released its new Strategic Concept and for the first time declared:
“China’s stated ambitions and coercive policies challenge our interests, security and values. Allies will work together to address the systemic challenges posed by China to Euro-Atlantic security. They remain open to constructive engagement, with a view to safeguarding the Alliance’s security interests and building reciprocal transparency.”
“Russia and China are developing a strategic partnership and are at the forefront of an authoritarian pushback against the rules-based international order.”
Needless to say, Beijing was not pleased.
On a separate note, I recently finished Nicholas Mulder’s new book, The Economic Weapon: The Rise of Sanctions as a Tool of Modern War. Mulder describes how our modern conception of economic sanctions arose during the First World War and was adapted by the League of Nations as its primary tool to deter aggression, and when that failed, a tool of punishment against aggressors. As we consider the scope and scale of economic “sanctions” being employed today, I found this to be an excellent book in providing some degree of clarity on how we “weaponized” commercial and economic relations and why we consider them preferrable to armed conflict.
Thanks for reading!
Matt
MUST READ
1. Matthew Pottinger on Flipping the U.S.-China Paradigm on its Head
Bob Davis, The Wire China, June 26, 2022
Matt Pottinger played a crucial, behind-the-scenes role in the Trump administration’s break with decades of bipartisan agreement about engagement with China.
…
Question: What did you think the paradigm was and what needed to be shifted?
Answer: The most important assumption that had underlined a quarter-century of our policy towards China was the idea that through trade we could liberalize not only China’s economy, but its society and even its politics. That comes through in the speeches of President Bill Clinton, and in the speeches of senior members of the Bush administration, including Bob Zoellick. It also came through in some of the rhetoric and policy documents of the Obama administration. It was the idea that through engagement we could change China and reassure China that we are not a threat.
The evidence, though, really mounted over the course of those 25 years that China would, in fact, work very hard to subvert U.S. power and influence — first within China, then regionally, and then globally. I thought that we were behaving as though we were blind and deaf to the reality of the Chinese Communist Party’s ambitions, its hostility to the end-state that we were trying to achieve, and its resourcefulness in working to achieve its ambitions globally.
2. 'My career is finished, my friends are in prison and I’m an alien in my city'; life after Hong Kong’s Apple Daily
Norman Choi, The Guardian, June 24, 2022
Norman Choi if the now shutdown Hong Kong newspaper, Apple Daily, describes life under the new reality of Hong Kong.
3. G-7 unveils $600B plan to combat China’s global reach
Jonathan Lemire and Karl Mathiesen, Politico, June 26, 2022
European Commission President Ursula von der Leyen said the aim was to present a “positive powerful investment impulse to the world to show our partners in the developing world that they have a choice.”
4. ‘An Invisible Cage’: How China Is Policing the Future
Paul Mozur, Muyi Xiao and John Liu, New York Times, June 26, 2022
By examining over a hundred procurement documents, the New York Times details how anyone who falls afoul of the Chinese Communist Party could be subjected unrelenting surveillance.
5. Ideological Security as National Security
Tang Aijun translated by Jude Blanchette, CSIS, June 10, 2022
In Washington, scholars, experts, and policymakers still debate whether the United States and China are in an ideological competition. There is no such debate in Beijing. As Xi declared in 2016, “Hostile Western forces have always regarded China’s development and growth as a threat to Western values and institutional models. They have not for a moment ceased their ideological infiltration of China.”
Authoritarianism
6. Second rights activist faces state subversion charges in secret trial
Guo Rui, South China Morning Post, June 24, 2022
7. China’s Marxism majors prosper amid labour market woes
Sun Yu, Financial Times, June 29, 2022
8. ‘Digital handcuffs’: China’s Covid health apps govern life but are ripe for abuse
Cheng Leng, Financial Times, June 28, 2022
9. Shanghai’s Covid Lockdown Legacy: Confusion, Despair, Departure
Natasha Khan, Cao Li, Shen Lu and Stella Yifan Xie, Wall Street Journal, June 25, 2022
10. Some media blocked from covering Xi's handover anniversary visit to Hong Kong
Anne Marie Roantree and Jessie Pang, Reuters, June 29, 2022
11. China proposes rules to regulate private pension investment via mutual funds
Reuters, June 25, 2022
12. She was loved for standing up to China. She may die in jail
Chan Ho-him, Financial Times, June 23, 2022
13. Brain drain: Hong Kong political crackdown sparks scholar exodus
Frances Cheung and Takeshi Kihara, Nikkei Asia, June 26, 2022
14. Under pressure from Beijing, Hong Kong’s schools become more patriotic
Theodora Yu, Washington Post, June 22, 2022
15. “Top Gun: Maverick” shows Hollywood can survive without China’s film market
Adario Strange, Quartz, June 28, 2022
Environmental Harms
16. Flu epidemic risks sweeping China left vulnerable by zero-Covid fixation
Sun Yu, Financial Times, June 23, 2022
17. Chinese state-owned company accused of endangering rare orang-utans
Oliver Telling, Financial Times, June 19, 2022
18. The ‘ESG’ Scam Rates Slave-Using Chinese Firms Higher Than Clean American Energy Producers
Chuck Devore, The Federalist, June 28, 2022
That a firm in China that relies on slave labor for key portions of its supply chain has a better social score than an American firm that pays landowners who freely sell them their mineral rights betrays an upside-down ethic where freedom is slavery and ignorance is strength. Of course, that hasn’t stopped 174 institutional owners from investing in Xinyi Solar, among the largest being JP Morgan, Invesco, and Vanguard.
COMMENT: As established today, ESG (Environmental, Social and Governance) metrics tend to push capital away from jurisdictions that require transparency and the rule of law and encourage capital to flow to jurisdictions where neither of those can be found.
Foreign Interference and Coercion
19. In Russia’s War, China and India Emerge as Financiers
Clifford Krauss, Alexandra Stevenson and Emily Schmall, New York Times, June 24, 2022
20. BRICS summit: Members push for global clout amid Ukraine war
Vikas Pandey, BBC, June 22, 2022
21. Xi Slams Sanctions for “Weaponizing’ World Economy at BRICS Open
Bloomberg, June 22, 2022
22. After Biden's pivot to Asia, China feels the chill
Yun Sun, Politico, June 23, 2022
23. Xinjiang Law Shows Reach—and Limits—of U.S. Economic Power
Nathaniel Taplin, Wall Street Journal, June 27, 2022
24. Pope’s Wariness of U.S.-Dominated World Shapes His Russia, China Stances
Francis X. Rocca, Wall Street Journal, June 23, 2022
25. G7, NATO leaders to ratchet up pressure on Russia, keep eye on China - U.S. officials
Andrea Shalal and Humeyra Pamuk, Reuters, June 22, 2022
26. U.S. accuses five firms in China of supporting Russia's military
Alexandra Alper, Reuters, June 29, 2022
27. Chinese Media Quote Zelensky Selectively
Baiyu Ceng, Doublethink Lab, June 19, 2022 – ORIGINAL IN CHINESE
28. China looks to Bongbong Marcos to revive oil exploration talks
DJ Yap and Tina G. Santos, INQUIRER, June 27, 2022
29. Pakistan may cede Gilgit Baltistan to China to pay off its mounting debts: Report
India TV News, June 24, 2022
White House Briefing Room, June 28, 2022
Human Rights and Religious Persecution
31. Xi Jingping’s Vision for Xinjiang
Jude Blanchette, CSIS, Jun 13, 2022
32. Red Flags for Forced Labor Found in China’s Car Battery Supply Chain
Anna Swanson and Chris Buckley, New York Times, June 20, 2022
33. Hong Kong plunges lower in global human rights index
Helen Davidson, The Guardian, June 22, 2022
34. Companies braced for chaos as Xinjiang import ban starts in US
Pak Yiu, Financial Times, June 28, 2022
35. G7 pledges to counter ‘state-driven censorship’ and help protect journalists
Owen Churchill, South China Morning Post, June 23, 2022
Industrial Policies and Economic Espionage
36. Nearly One in Four European Firms Consider Shifting Out of China
Bloomberg, June 20, 2022
37. Owner of Britain's biggest microchip factory denies it will move operations to China
Matt Oliver, The Telegraph, June 27, 2022
38. US pact boosts South Korea’s ‘definite need’ to cut China rare earth reliance
Kim Bo-eun, South China Morning Post, June 28, 2022
39. Profits at Foreign Firms in China Plunge Despite Easing in Covid
Bloomberg, June 26, 2022
40. China's economy didn't bounce back in the second quarter, China Beige Book survey finds
Evelyn Cheng, CNBC, June 28, 2022
41. The rise of China’s VC-industrial complex
The Economist, June 27, 2022
Lucy White, This is Money, June 27, 2022
43. Cover Story: How Bad is China’s Manufacturing Exodus?
Yang Jinxi, Qu Yunxu, Du Zhihang and Denise Jia, Caixin Global, June 27, 2022
44. China Built Your iPhone. Will It Build Your Next Car?
Will Knight, WIRED, June 27, 2022
45. China’s Property Slump Is a Bigger Threat Than Its Lockdowns
Bloomberg, June 22, 2022
Cyber & Information Technology
46. As China shuts out the world, internet access from abroad gets harder too
Stephanie Yang, Los Angeles Times, June 23, 2022
47. Swedish court upholds ban on Huawei sale of 5G gear
Supantha Mukherjee, Reuters, June 22, 2022
48. China Probes Operator of Nation’s Biggest Academic Database
Raffaele Huang, Wall Street Journal, June 24, 2022
49. China is trolling rare-earth miners online and the Pentagon isn’t happy
Jessica Lyons Hardcastle, The Register, June 28, 2022
50. Lindy Cameron speech at Tel Aviv Cyber Week
Lindy Cameron, National Cyber Security Centre, June 28, 2022
51. The Surprising Reason Your Amazon Searches Are Returning More Confusing Results than Ever
Christopher Mims, Wall Street Journal, June 25, 2022
Military and Security Threats
52. Analysis: Never mind China's new aircraft carrier, these are the ships the US should worry about
Brad Lendon, CNN, June 25, 2022
53. UK calls for extra vigilance on China ahead of Nato summit
Peter Walker, The Guardian, June 28, 2022
54. China says it tested missile-interception system
Reuters, June 19, 2022
55. Analysis: Europe sees China through a Russian lens, and Beijing is not happy
Simone McCarthy, CNN, June 29, 2022
56. China denies building naval bases but fear of its military reach grows
Kathrin Hille, Financial Times, June 19, 2022
57. China wants own security company to protect assets in Pakistan
Adnan Aamir, Nikkei Asia, June 28, 2022
58. Beijing Is Still Playing the Long Game on Taiwan
Andrew J. Nathan, Foreign Affairs, June 23, 2022
59. Japan Is Getting Real on Security After Ukraine
William Sposato, Foreign Policy, June 29, 2022
60. Silicon Twist
Ryan Fedasiuk, Karson Elmgren and Ellen Lu, CSET, June 29, 2022
61. Exploring the opportunities and challenges of research engagement with China
Fioan Quimbre, Peter Carlyon, Livia Dewaele and Alexi Drew, Rand, 2022
62. Best Bosom Friends: Why China-Russia Ties Will Deepen after Russia’s War on Ukraine
Andrea Kendall-Taylor and David O. Shullman, CSIS, June 22, 2022
One Belt, One Road Strategy
63. U.S. and G-7 Allies Detail Infrastructure Plan to Challenge China
Alex Leary and Tarini Parti, Wall Street Journal, June 27, 2022
Opinion Pieces
64. Why I expected more from the UN human-rights chief
Rayhan Asat, Atlantic Council, June 18, 2022
65. Why China is not rising as a financial superpower
Ruchir Sharma, Financial Times, June 20, 2022
66. Now Is the Time to Expose Chinese Corruption
Nate Sibley, Wall Street Journal, June 26, 2022
67. China can turn debt trap of its own making into historic opportunity
Minxin Pei, Nikkei Asia, June 24, 2022
68. Can You Blame Poor Countries Like Mine for Turning to China?
Dorothy Wickham, New York Times, June 27, 2022
69. China's Lessons from Russia's War
Kevin Rudd, The Wire China, June 26, 2022