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Chinese MSS: Retired Cadres Plotted “Death Squads” to Topple Regime

The China’s Ministry of State Security (MSS) website revealed that in 2016 it uncovered and foiled a plot by a retired school official in Yunnan province to “violently overthrow the government.” The official, surnamed Su, had posted anti-government rhetoric online for years before contacting members of a “foreign hostile organization” to purchase weapons and recruit “death squads” for what he called the “Benghazi Project of China.” Su planned to carry out violent operations to subvert state power. China’s state security organs reportedly identified and arrested all those involved while the plot was still in early stages of planning.

The MSS said this case reflects the threat of “color revolutions” (referring to revolutions in post-Soviet states attempting to establish Western-style liberal democracy) and other attempts by “hostile forces” to undermine China’s political system and Chinese Communist Party leadership. “Political security is the foundation of national security,” it emphasized.

Source: Central News Agency (Taiwan), August 15, 2023
https://www.cna.com.tw/news/acn/202308150324.aspx

Briefings | | |   Social Stability

Chinese Automakers Now Dominate Half of Russian Car Market

Central News Agency (Taiwan) reported that Chinese automakers’ market share in Russia has surged to 52%, making Russia the largest overseas market for Chinese cars. This growth in market share follows the suspension of exports to Russia by automakers from many other regions, a reaction to Russia’s invasion of Ukraine. Chinese brands have taken advantage of this situation, filling the void left by foreign auto firms.

In July, China’s Chery sold 17,735 cars in Russia, up 4.2 times from the same period last year. Geely sold 8,800 new cars in Russia, and several other Chinese brands also made the top 10 in terms of sales volume in Russia.

The report noted that, due to import tariffs and other factors, Chinese cars retail in Russia at much higher prices than they sell for in China. Chinese cars are still competitive in the Russian market, however, as the Chinese brands have been able to deliver value by focusing on a small number of models with high product strength.

The Russian market is only one facet of the recent, dramatic increase in Chinese automobile exports. In the first half of this year, China’s automobile exports to all regions increased by 76.9% annually, surpassing Japan as the world’s top auto exporter.

Source: Central News Agency (Taiwan), August 15, 2023
https://www.cna.com.tw/news/acn/202308150387.aspx

Briefings | | |   Geo-Strategic Trend

Senior Wanda Executive Arrested for Corruption

Chinese media Jiemian reported that Liu Haibo, the senior vice president of real estate giant Wanda Group, has been arrested for reasons yet to be announced. According to a Wanda insider, the main reason behind the arrest is related to internal corruption within the company, and the amount of money involved is huge. In addition to Liu Haibo, a number of others from Wanda Group have also been taken away.

Liu Haibo graduated from Beijing University of Aeronautics and Astronautics in July 1991, and he joined Wanda Group in 2010. He served in a number of senior positions, including assistant president, executive deputy general manager of the development department, general manager of the development department, regional general manager, group chief vice president, and senior vice president. He has been in charge of Wanda Group’s investment business for a long time.

The news of Liu Haibo’s arrest has sent shockwaves through the real estate industry. Wanda Group is one of the largest real estate companies in China, and its involvement in corruption is a major blow to the industry. It remains to be seen what charges will be brought and what the full extent of the corruption is, but the news is sure to have a negative impact on Wanda Group’s reputation and business prospects.

Source: Central News Agency (Taiwan), August 8, 2023
https://www.cna.com.tw/news/acn/202308080256.aspx

Briefings | | |   Economy/Resources

China Continues Campaign Against Healthcare Sector Corruption, 10 Arrested in a Week

A report from Taiwan’s Central News Agency reported that a crackdown on corruption in China’s medical industry is continuing, with at least 10 more people in the field investigated in the past week. The most recently investigated include hospital directors and CCP secretaries. This brings the total number of people investigated to at least 159 since the beginning of the crackdown.

The report cited a case in which a hospital director pocketed a 16 million yuan in kickbacks after importing a linear accelerator at an inflated price. It also described how pharmaceutical companies are trying to gain a higher market share by infiltrating hospitals through various channels, and how the expectation of large kickbacks is squeezing medical suppliers and sales agents. According to one industry insider, average kickbacks to hospital insiders is 20% to 30%, while sales staff have been squeezed, receiving only very small commissions. This situation comes about because there is typically more than one supplier to a given hospital department for the same product, and the department will choose to purchase the product from the company that offers the highest kickback.

Some pharmaceutical companies have used the pretext of sponsoring scientific research funds and academic conferences to transfer illegal benefits. The industry insider said that some high-level hospital officials drive luxury cars or fly business class when traveling. They are often invited to meetings and travel often “while ordinary people have to face the high cost of medical care.”

The report said that the current medical corruption crackdown is targeting the key links of production, supply, sales, use and reimbursement in the medical field, and pharmaceutical companies have also become a central focus of the campaign.

The National Health Commission of China and the country’s disciplinary inspection and supervision organs have held video conferences to mobilize and deploy efforts in addressing medical corruption nationwide. The meetings stressed the need to “increase the intensity of discipline and law enforcement, focus on leading cadres and key post personnel, persist in investigating bribery, concentrate forces to investigate and deal with corruption cases in the medical field, and form a ‘deterrent'”.

The crackdown on medical corruption is a major initiative by the Chinese government to improve the quality of healthcare and reduce the financial burden on patients. It is a sign that the government is serious about addressing the problem of corruption in the healthcare sector.

Source: Central News Agency (Taiwan), August 8, 2023
https://www.cna.com.tw/news/acn/202308080307.aspx

Briefings | | |   Social Stability

China’s Granary Region Suffers Severe Flooding, Food Security at Risk

The remnants of Typhoon Doksuri caused severe flooding in China’s northeastern provinces of Heilongjiang and Jilin, known as the country’s “breadbasket.” The flooding has killed at least 14 people and displaced tens of thousands more. It has also damaged or destroyed millions of hectares of crops, raising concerns about food security for China’s 1.4 billion people.

The flooding is the latest in a series of natural disasters to hit China’s agricultural sector in recent months. In May, heavy rains in Henan province caused widespread damage to wheat crops. In June, a drought in northern China took a toll on corn and soybean plantings.

The Ministry of Agriculture and Rural Development has warned that the flooding in Heilongjiang and Jilin could have a “serious impact” on China’s agricultural production. The ministry said that the flooding has damaged or destroyed about 10 million hectares of crops, and that it could take several years for the region to recover.

The flooding is also a major blow to China’s efforts to achieve self-sufficiency in food production. China is the world’s largest producer of wheat, and it is among the largest producers of corn and soybeans, but the country still needs to imports significant amounts of these crops to meet domestic demand. This year’s flooding could lead to increased food imports, which would put a strain on China’s economy.

The Chinese government said that it is taking steps to mitigate the impact of the flooding, including providing relief to those affected and investing in infrastructure to help prevent future disasters. It remains to be seen how the flooding will impact China’s food security in the long term.

Source: Voice of America, August 7, 2023
https://www.voachinese.com/a/deadly-floods-hit-china-s-major-grain-producing-region-fueling-food-security-concerns-20230807/7214602.html

Briefings | | |   Economy/Resources

Beijing City Passes Anti-Terrorism Measures

The Beijing Municipal People’s Congress Standing Committee has voted to pass implementation measures for the “People’s Republic of China Anti-Terrorism Law.” The measures will come into effect on January 1, 2024. The passed measures cover a wide range of activities in daily life, including renting a car, renting a homestay, buying gasoline, and sending a parcel.

For example, the passed measures require that people who rent a car must be identified and their information must be registered. Postal and express companies must also conduct security inspections of parcels and register parcels information. Gas stations must identify people who buy gasoline and record the amount of gasoline bought and the purpose for which it is used.

The measures also require that people who rent a homestay be identified and that people who take the Beijing subway must undergo security checks. Drone owners must register their drones with the government and must update their registration information if they sell, transfer, damage, scrap, or lose their drone or if it is stolen.

Under the new measures, Internet service providers must take measures to prevent the spread of information that contains terrorist or extremist content. If internet service providers find information that contains terrorist or extremist content, they must immediately stop transmitting it, save the relevant records, delete the relevant information from the web, and report the incident to the public security organs or relevant departments of the government. Internet service providers that provide information on the sale of goods or accommodation, instant delivery, or car rental must provide technical assistance to the public security organs and national security organs in accordance with the law to prevent and investigate terrorist activities.

Source: Central News Agency (Taiwan), July 30, 2023
https://www.cna.com.tw/news/acn/202307300108.aspx

Briefings | | |   Social Stability

University of Erlangen–Nuremberg Suspends Cooperation with China Scholarship Council

University of Erlangen–Nuremberg has become the first German university to suspend cooperation with the China Scholarship Council (CSC). The university cited concerns about the potential risk of espionage by Chinese students as the reason for the decision.

The CSC is a Chinese government agency that is responsible for providing scholarships to Chinese students who want to study abroad. The agency has been accused of using its scholarships to control Chinese students who study abroad.

In 2022, a report by the German newspaper Die Zeit found that the CSC was requiring Chinese students who studied in Germany to sign agreements that prohibited them from criticizing the Chinese government or participating in political activities. The report also found that the CSC was requiring Chinese students to maintain contact with the Chinese embassy in Germany and to return to China after completing their studies.

The CSC has denied allegations that it has engaged in censorship and control. The agency said that its scholarships are designed to help Chinese students gain the skills and knowledge they need to succeed in the global economy.

The suspension of cooperation between University of Erlangen–Nuremberg and the CSC is a sign of the growing tensions between Germany and China. The two countries have been at odds over a number of issues, including trade, human rights, and the South China Sea. The suspension of cooperation is likely to have a significant impact on German-Chinese relations. The university is one of the most prestigious in Germany, and it is a major center for research and innovation.

Source: Deutsche Welle, July 29, 2023
https://p.dw.com/p/4UXSZ

Briefings | | |   Geo-Strategic Trend

CCP Military Probes Procurement Fraud Over 6 Years, Possibly Targeting Dissidents

The Chinese Communist Party’s (CCP) military has been investigating arms procurement cases discovered during the past six years. The investigation is focused on irregularities such as lack of integrity and leaked secrets. Some people have questioned whether this anti-corruption campaign is being used as a tool for purging dissidents.

The Equipment Development Department (EDD) of the Central Military Commission (CMC) has issued a notice calling on the public to provide clues regarding irregularities and disciplinary violations in the Chinese military’s arms procurement process. The scope of the investigation includes conduct failures, formation of gangs or cliques, use of individual circumstances for personal gain, leakage of secrets, and supervisory failures.

As of 2019, the EDD has emphasized “strict regulation of the order of bidding and procurement management.” It also set up a supervision team for each equipment procurement project to oversee the bidding process, implemented audio and video recordings of the negotiation and inquiry sessions, and  opened channels for the military’s bidders to report problems.

Some people have questioned whether the current anti-corruption campaign is a tool for purging dissidents. Commentators have pointed to the death of Wu Guohua, a former deputy commander of the People’s Liberation Army (PLA) Rocket Force, who died in Beijing on July 4 at the age of 66. His obituary was dated July 25, 21 days after his death.

There has been some speculation that Wu’s death may have been related to corruption and leakage of secrets involving several senior members of the PLA’s Rocket Force. Some have even speculated that Wu committed suicide. However, there have been no confirmed reports regarding Wu’s cause of death.

In addition, Hong Kong’s South China Morning Post (SCMP) reported that Li Yuchao, commander of the Rocket Force, Liu Guangbin, deputy commander of the Rocket Force, and Zhang Zhenzhong, a former deputy commander of the Rocket Force and current deputy chief of the CMC’s Joint Staff Department, were removed from their posts in March and under investigation for corruption.

The CCP’s new anti-corruption drive has led to the ouster of several former and current senior commanders of the Rocket Force. The Rocket Force is the fourth-largest branch of China’s army, and is in charge of nuclear missiles and other highly-destructive weapons.

Source: Central News Agency (Taiwan), July 30, 2023
https://www.cna.com.tw/news/acn/202307300084.aspx

Briefings | | |   Defense/Military