Editor’s note for May 9, 2023

Dear reader:

China’s relationship with Canada has taken another turn for the worse after Ottawa declared a Chinese diplomat, Zhào Wēi 赵巍, persona non grata. Beijing retaliated with a reciprocal expulsion of Jennifer Lynn Lalonde, a Canadian diplomat in Shanghai, and high dudgeon at the Foreign Ministry press conference today (English, Chinese).

Last week, Canada’s Globe and Mail newspaper reported that Zhao had, in 2021, sought to intimidate Michael Chong, a member of Canada’s parliament critical of Beijing’s Uyghur policies by gathering information on members of his family who live in Hong Kong.

Also getting worse: The position of information and consulting companies in China, as more information emerges about Chinese security agents’ raids on research firm Capvision.

The China Project’s CEO Bob Guterma was previously an executive at Capvision in Shanghai. The company, and many like it in China, have always dealt with enquiries from the authorities, but these were “almost welcome” because it meant there was some guidance as to how to deal with regulators.

But the Capvision investigation was the subject of a primetime TV news report, as we noted yesterday, which seems to indicate that the government wants to scare Chinese citizens off from speaking to firms like Capvision, and more importantly their clients who are often overseas consulting and investment firms.

The exact purpose of the initiative? Hard to say. It certainly conflicts with the government’s recent attempts to convince investors that China is completely open for foreign business. (Scroll down for a summary and links to new reporting on this story.)

Not getting worse, at least not this week: China’s relations with its South and Central Asian neighbors, which are the subject of our top story today. Scroll down for a summary or click through for details.

Our Word of the Day is: Expel diplomats (驱逐外交官 qūzhú wàijiāoguān)