CRG Weekly: CCP agent in Westminster, HSBC, Team GB warnings
News from the China Research Group
Upcoming event: The CPTPP, UK and China. We will be hosting trade experts Wendy Cutler, Vice President at the Asia Society Policy Institute, and David Henig, co-founder of the UK Trade Forum, this Thursday 20 January to discuss the benefits for the UK of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and whether China may also be allowed to join. This virtual event will be chaired by Andrew Bowie MP. Register here.
The UK must abandon “democratic defeatism” if it’s to stand up to China. Writing in The New Statesman, CRG Chair Tom Tugendhat submits the case for fortifying old alliances and building new ones in order to protect the international rules-based order.
MPs warned against ‘political interference’ by Chinese agent
On Thursday, MI5 issued an interference alert to British MPs about Christine Ching Kui Lee, a solicitor who runs who runs the British-Chinese Project. Lee has been accused of “facilitating financial donations to serving and aspiring politicians” on behalf of foreign nationals based in Hong Kong and China. Her interference activities include donating more than £420,000 to a former minister.
Lee’s involved in British politics has been on the security services’ radar for some time. This week she was linked formally by MI5 to the Chinese Communist Party’s United Front Work Department, a department geared towards coopting politicians and public groups to support and promote the Chinese Communist Party’s foreign policy goals.
The fact that Lee had made headway in infiltrating the office of a British elected representative shows that new laws to counter state threats, soon to arrive in Parliament, are long overdue. Security minister Darren Hinds’ assurances of a review to examine the ties Lee forged with establishment may shed more light on the ways in which hostile countries are trying to interfere with British politics and wider society.
This very public warning from MI5 also demonstrates a willingness on the part of security services to publicly address concerns about CCP malign activity on British shores. It’s important that we are able to have an honest, open debate about the nature of the Beijing regime in order to counter actions that harm our interests.
Analysis and commentary:
Tawdry tale of Chinese ‘spy’ in Westminster shows life isn’t all le Carré. Tom Tugendhat. The Times
MI5 warning shows tone has changed when it comes to China. Dan Sabbagh. The Guardian
MI5 warning on lawyer ‘sends a clear message to China’s allies in UK’. Vincent Ni. The Guardian
This Twitter thread from University of Exeter Postdoctoral Research Fellow Martin Thorley - who recently wrote a dissertation on CCP influence in the UK - unpacks Christine Lee’s links to the Chinese party-state and her involvement in British politics.
In brief
MPs called for the UK government to consider sanctioning HSBC after it was revealed biggest bank bought £2.2 million of shares in Xinjiang Tianye, a chemicals and plastics company and subsidiary of Xinjiang Production and Construction Corps (XPCC). XPCC and associated individuals have been subject to US and EU sanctions.
Team GB athletes have been offered temporary phones by the British Olympic Association because it fears the authorities could install spyware to extract private information or track future activity. Pressure group Global Athlete has urged athletes to not discuss human rights due to safety concerns.
Indian trade minister Piyush Goyal and his UK counterpart Anne-Marie Trevelyan said there could be a limited trade agreement in the next few months. The UK government hopes that the deal could almost double British exports to India, and boost total trade between the countries by £28bn per year by 2035.
Lithuania’s foreign minister Gabrielius Landsbergis called on the EU to stand up to China over harassment of European companies which use Lithuanian-made components. A poll showed that Lithuanians overwhelmingly oppose Vilnius’ policy on China, which has included bolstering ties with Taiwan.
Beijing demanded that the British government protect its proposed £750 million embassy in London from “harassment” after warnings it will be targeted by human rights campaigners. Tower Hamlets Council is considering naming the roads surrounding the embassy Tiananmen Square, Uyghur Court, Hong Kong Road and Tibet Hill.
Beijing is on high alert as China's first Omicron cluster edges closer weeks before the Olympics. Tianjin, located just 80 miles southeast of Beijing, is testing its entire population of 14 million people after Omicron was detected in at least two local residents.
Peng Jingtang, a general who led China’s anti-terrorism special forces in Xinjiang, has been named as the new chief of the People’s Liberation Army’s garrison in Hong Kong as Beijing toughens its rule in the international business hub.
China and France held their 22nd strategic dialogue in Wuxi, Jiangsu province. Emmanuel Bonne, President Macron’s diplomatic counsellor, and Chinese Foreign Minister Wang Yi agreed to enhance practical cooperation and shoulder important international responsibilities.
China and the Gulf Cooperation Council (GCC) issued a joint statement calling for the establishment of a strategic partnership and the promotion of free trade agreement talks.
The president of crisis-hit Sri Lanka asked China to restructure its debt repayments as part of efforts to help the South Asian country navigate its worsening financial situation.
China's State Council urged faster implementation of key 14th five-year plan investment projects as fresh Covid outbreaks add to economic headwinds.
Beijing unveiled a grand plan to grow its digital economy, endorsing a target that would see the output of core industries in China’s digital economy account for 10 per cent of the country’s GDP by 2025 and China become a leader in 6G standards-setting.
Taiwanese chip firm TSMC expects strong growth to accelerate in coming years due to booming semiconductor demand, as the tech giant reported a record quarterly profit and said it plans to spend at least a third more than last year.
The Premier League won a £156 million High Court battle with its former Chinese rights-holder.
Weekend reads
China GDP: five things to watch ahead of Xi’s push for a third term. Beijing has sought to balance economic stability, fiscal discipline and property sector reform. Tom Mitchell. FT
We must make more of renewed UK alliance. Australia and the United Kingdom are renewing their partnership for a competitive era and now must plot for the long-term. Rory Medcalf. The Australian
China applies brakes to Africa lending. Beijing has signalled a more cautious approach amid warnings that several African countries could struggle to repay debts. Kathrin Hille and David Pilling. FT
How the Chinese language got modernized. Faced with technological and political upheaval, reformers decided that Chinese would need to change in order to survive. Ian Buruma. The New Yorker