Britain’s sizzle – Huawei’s bumps – hypes and leaks.
Hello, and welcome to China Influence Monitor, a weekly newsletter published by CEPA and Coda Story and edited by me, Edward Lucas. We track the westward footprint of China’s influence operations, and point you towards this week's best (and worst) coverage.
In this issue: Huawei’s bumpy week and what role CCP members play in Western businesses. But first to Britain, where China is grabbing decision-makers’ attention
China is rocketing up the agenda in London, with mounting worries ranging from military security to influence operations. China is now a “chronic challenge” according to defence chiefs. Awkwardly this comes just as the country is distracted by Brexit, and waiting to see how hawkish the new US administration will be.
- The most pressing worry is energy. The China General Nuclear Power Group is considering pulling out of the planned Sizewell C nuclear power station, leaving a huge hole in the country’s energy strategy (due to be outlined on Monday).
- Then there’s Hong Kong. The crackdown in the ex-colony means 600,000 people may move to Britain under a resettlement program that opens in January, a survey suggests. The mainland authorities are furious about the scheme, saying it breaches previous agreements. Expect more rows.
- China’s also complaining about Britain’s ban on Huawei and a new security and investment bill, now going through parliament, which aims to stop Chinese firms buying up British high-tech firms.
- A new report by the researcher Adrian Zenz, detailing how hundreds of thousands of Uyghurs and other minorities are forced to pick cotton in the western region of Xinjiang (a label that many regard as pejorative) prompted government condemnation and calls for a boycott. Three big British retailers — Marks and Spencer, Next and Tesco — said their products sourced from China did not use raw cotton from the region.
Why this matters. All this stokes Britain’s enthusiasm for (and credibility in) the proposed D-10 — a grouping of the world’s top ten democracies. Boris Johnson’s government has invited India, South Korea and Australia to attend the G7 summit next year, “to advance shared interests and tackle common challenges.” Translation: deal with China.