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China to Censor TV Programs for Kids

China’s National Radio and Television Administration (NRFT) recently issued the “Regulations on Programs for Minors.” The regulations emphasized that the state supports and encourages the production of programs that “promote socialist core values” and “revolutionary culture and advanced socialist culture.”

The “Regulations” then also included a universal term that minors’ programs must not contain “contents that display violence, blood, terror, and abetting crimes or imparting criminal methods; nor should they contain sexual topics and graphical pictures other than health education.”

NRFT, the state censor, also emphasized that minors’ programs must not contain contents that “distort national history or national historical figures, or that distort, vilify, defame, or deny the deeds and spirit of heroic martyrs.” Nor should they “proclaim, beautify, or worship the countries, events, and characters that launched the war of aggression against China or carried out colonial rule.”

China’s leader Xi Jinping said at a “School Ideological and Political Theory Class Teacher Symposium” on March 18th that, in order to train the next generation that loves the party and loves socialist ideology, one must “start with the schools and start with babies.”

Radio Free Asia quoted from a Chinese student who is pursuing a doctor’s degree in the United States, “In fact, the trend began a long time ago. Kindergarten kids in China have to learn from Xi Jinping’s theory of ‘socialism with Chinese characteristics.’ The Chinese government is comprehensively revising the Chinese language and history textbooks so that they conform to the Communist Party’s political ideology. In the future, the nationwide language and history textbooks will be under the unified control of the government.”

Source: Radio Free Asia, April 3, 2019
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/nu-04032017101958.html

Briefings | | |   Government/Politics

Xi Jinping’s Speech Published on Qiushi

On April 1, Qiushi, the official theoretical journal of the Central Committee of the Chinese Communist Party, published Xi Jinping’s speech from 2013 given to the new members of the Central Committee, the most powerful 200 some communists in China. Other mouthpiece media such as People’s Daily and Xinhua News Agency also carried the speech in high profile.

In the speech, Xi emphasized what the so-called Socialism with Chinese characteristics is. “It is socialism and not other kinds (of “isms”). The basic principles of scientific socialism cannot be lost. If they are lost, it is not socialism.”

Xi also mentioned two historical periods. The first period usually refers to 1949 to 1978, when China was, for the most part, under Mao Zedong’ reign. The second period, 1979 through the present, refers to the post-Mao era of China. “It is necessary to evaluate the historical period before the reform and opening up correctly. (We should) not deny the historical period before the reform and opening up using the historical period afterwards, nor should we use the historical period after the reform and opening up to deny the historical period before the reform and opening up.”

The last section of the speech was on the two ideologies: socialism versus capitalism. “Facts have repeatedly told us that Marx and Engels’ analysis of the basic contradictions in the capitalist society is not outdated. The historical materialistic view that capitalism is inevitably dying and socialism is inevitably winning is not outdated. This is an irreversible general trend in the development of history, but the path is tortuous. The eventual demise of capitalism and the ultimate victory of socialism must be a long historical process. We must profoundly understand the self-adjusting ability of capitalist society, fully estimate the reality of the long-term advantage of Western developed countries in the economy, science, and military, and conscientiously prepare for all aspects of long-term cooperation and battles between the two social systems.”

Source: Qiushi, April 1, 2019
http://www.qstheory.cn/dukan/qs/2019-04/01/c_1124307480.htm

Briefings | | |   Government/Politics

Swedish Defense Research Agency Suspects Beijing of Cyber Espionage Activities

Analysts at the Swedish Defense Research Agency (FOI) believe that the Chinese government is conducting cyber espionage that targets Sweden as a means of gaining an economic advantage.

The analyst Johan Englund, who wrote the FOI report published on March 21, stated, “What I have found is that cyber espionage is one of several methods that China uses to achieve its strategic objectives. There are legal methods such as corporate acquisitions, research collaborations, and hiring foreign experts, but there is also illegal cyber espionage.”

According to the report, which is based only on open source research, Sweden’s open and innovative economy, as well as its advanced manufacturing sector, leave Sweden particularly exposed to cyber espionage activities from China.

The Swedish security police earlier warned that the activities of Chinese intelligence agencies in Sweden are one of the main threats to its national security.

Sources:
1. Sputnik News, March 25, 2019
http://sputniknews.cn/politics/201903251028015015/
2. FOI, China’s industrial cyber espionage, March 21, 2019
https://www.foi.se/rapportsammanfattning?reportNo=FOI%20MEMO%206698

Briefings | | |   Geo-Strategic Trend

China’s Industrial Profit Dropped Most Since 2011

According to the National Bureau of Statistics of China, the Chinese industrial profit in the first two months of this year shows a year-over-year reduction of 14 percent to 708 billion yuan (US$105 billion), the largest drop since 2011. The main reason is believed to be the weak demand both at home and abroad, resulting in a slowdown of the economy.

The world’s second-largest economy has been growing the slowest in nearly 30 years. The Chinese government has lowered its economic growth target this year from 6.6 percent to a range of 6.0 percent to 6.5 percent.

A National Bureau of Statistics official said in a statement that the profits of major industries such as automobile, petroleum processing, steel, and chemical industries have dropped significantly. These are the main contributors to the lower profit.

Source: Central News Agency, March 27, 2019
https://www.cna.com.tw/news/acn/201903270155.aspx

Briefings | | |   Economy/Resources

China’s Upcoming Personal Credit Investigation Report

Chen Yulu, deputy governor of the People’s Bank of China, recently said, “Many young women are looking for boyfriends. The future mothers-in-law often say, “I will take a look at the guy’s credit investigation report that People’s Bank produces.”

The Personal Credit Investigation Report (PCIR) should be correctly called the “financial credit information infrastructure database.” It includes five types of information: the basics such as “Who you are, where you live, and what you do”; credit information such as “Who you borrowed money from, and whether you have paid it back”; non-financial liabilities, including utility payments such as water and electricity; social security and medical insurance; and lastly, the records of how your credit report has been checked, by whom, and for what reason.

In other words, the PCIR put together by China’s central bank, with the assistance of a computer network and big data technology, faithfully recorded everyone’s everyday life activities and debt repayments, carrying many more details than even a credit agency’s investigations.

One should never underestimate this “economic identity card.” If you don’t pay back the money you owe on time, or if it is overdue, you may not even be able to apply for a credit card. The bank will not process your application for a car loan, a mortgage, a student loan, or consumer credit. Nor can you be a CEO or member of a company’s board of directors. The bank will also directly freeze your deposits and financial products. Even worse, if you are on the list of significantly “dishonest” or “untrustworthy” people, you may not be able to take the plane, ride the high-speed rail, and may even be limited from spending on big ticket items.

China is building a comprehensive network of personal credit information with no blind spot. The PCIR was put into a trial operation starting from November 2018 and the new and formal version will be launched in May of this year. With a fully connected network, a lot of detailed information could be queried. For individuals in China, it is less and less likely to live a private life or one hidden from the government.

Source: The World Journal, March 24, 2019
https://www.worldjournal.com/6193766

Briefings | | |   Information/Technology

Huawei Hired Two U.S. Firms to Deal with its PR Crisis

Huawei has contracted with two U.S. firms to conduct public relations lobbying and provide legal services in order to save its image. The two companies are Racepoint Global and Burson Cohn & Wolfe (BCW). On March 22, the Center for Responsive Politics, a non-profit, nonpartisan research group that tracks foreign government lobbying activities, publicized the Foreign Agents Registration Act registration (FARA) forms that the two companies completed on March 20 with the Department of Justice.

“BCW will develop a campaign to improve Huawei’s reputation in the U.S. by working with business partners, advisory council members, media outlets, people of influence, and ‘key opinion leaders’ with a budget of $160,000.”

“Racepoint similarly states it will visit with analysts, people of influence and media members and ‘draft content generation for the purpose of educating policymakers and legislators on client positions’ but will ‘have no direct contact with government officials.’”

“Huawei agreed to pay Racepoint $55,000 per month through September 2019. On top of that monthly retainer, Huawei agreed to pay ‘reasonable’ expenses and billing rates for individual team members of up to $320 per hour for the three managing directors. Racepoint’s contract also anticipates the potential of “talent,” “key opinion leaders,” and “celebrity” related costs.”

In the past years, Huawei has spent upwards of seven figures on lobbying efforts as reported under the domestic Lobbying Disclosure Act (LDA), according to the Center, but this is the first time that U.S. firms registered with the Department of Justice as the foreign agents for Huawei.

Source: Radio France International, March 24, 2019
http://rfi.my/3qYk.T
Center for Responsive Politics, March 22, 2019

US firms register as foreign agents of embattled Chinese telecom giant Huawei

Briefings | | |   US-China Relations

Due to Rising Costs, One More Foreign Company Leaves China

After South Korea’s Samsung, Japan’s Olympus, and Ricoh, another Japanese multinational company is following suit and withdrawing from China. According to the Securities Times, a subsidiary of the official People’s Daily, Epson China confirmed that it will close its manufacturing company in Shenzhen in March 2021. The factories that Epson will close down belong to Epson Precision (Shenzhen) Ltd., a watch manufacturer, established in 2011.

Although Epson confirmed that the closure of the Shenzhen factory won’t take place until two years later, the layoffs have begun. One employee told Securities Times that the factory of Shenzhen in Baoan district  has stopped recruiting and plans to lay off 1,700 people. The other Nanshan factory is still recruiting.

Radio Free Asia interviewed some Chinese netizens, who said that the retreat of large foreign-funded enterprises has something to do with the increase in operating costs. One interviewee said, “Overall, it has a lot to do with the increase in the cost of labor and land, as well as environmental costs. The corporate cost is still the major reason. As a result, some businesses have turned to Southeast Asian or Latin American countries.”

Another interviewee believes it is also due to the fact that the Chinese government attaches more importance to state-owned enterprises than to foreign and private enterprises. He believes that if China does not carry out structural reforms, the pace of withdrawal of foreign-funded enterprises will not stop.

Source: Radio Free Asia, March 22, 2019
https://www.rfa.org/mandarin/yataibaodao/jingmao/ql1-03222019092619.html

Briefings | | |   Economy/Resources

Philippine Foreign Minister Visits China and Praises the Communist Party’s One-Party Rule

In Beijing on Wednesday, March 20, visiting Philippine Foreign Minister Teodoro Locsin Jr. had a meeting with Chinese Foreign Minister Wang Yi. China’s Ministry of Foreign Affairs website then published an article that quoted Locsin’s words stated when he was at that meeting. Locsin said that not a single country like China has brought hope to the world and that China’s unique institutional advantages and one-party rule have enabled China to bring about development achievements that other countries have not matched. The leadership of the Chinese Communist Party has played an irreplaceable role. Historically, Western countries have oppressed developing countries through colonialism and imperialism. China’s “One Belt, One Road” initiative, while realizing its own development, has brought about the mutual prosperity of other countries.

After taking office in 2016, Philippine President Rodrigo Duterte has consistently criticized Western countries, especially the United States, for interfering with his bloody anti-drug campaign. The Philippine government accuses Western countries of attaching conditions when providing aid, such as demanding respect for human rights, while China does not attach any human rights conditions.

Source:
Website of China’s Ministry of Foreign Affairs, March 20, 2019
https://www.fmprc.gov.cn/web/wjbzhd/t1646923.shtml

Briefings | | |   Geo-Strategic Trend