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Forty-Eight Taiwan’s Retired Generals Involved in Beijing Espionage Case

The District Prosecutor’s Office in Kaohsiung city of Southern Taiwan has indicted former retired navy Rear Admiral Xia Fuxiang (夏复翔) and former Kuomintang (KMT) legislator Luo Zhiming (罗志明) for their involvement in introducing retired military generals to visit China and receive United Front ideology, with the aim of developing spy organizations in China. The number of retired officers introduced over the past six years reached 48, with 13 missions and 194 trips.

The retired generals involved in this espionage case came from all military branches, with ranks of lieutenant colonel or higher. Major General Guan Benkun (官本鲲), former senior official of the National Security Council, was invited to China 10 times, while Chen Shengwen (陈盛文), former head of Heng Shan Military Command Center, visited nine times. Even high-ranking naval officers, including the former Vice Commander-in-Chief, former Chief of Operations, former Lieutenant General Commander of the Department of Corrections, and former Vice Admiral of the Naval Command, have been invited to mainland China.

The indictment reveals that these retired generals claimed that China used the visits to promote “one country, two systems,” “armed reunification,” “peaceful reunification,” and other content with the intention of turning them against Taiwan. Moreover, Beijing collected intelligence on Taiwan’s missile defense, military buildup, defense technologies, as well as the personalities of defense officials and military leaders.

The indictment suggests that restrictions on retired military personnel visiting China were relaxed during Ma Ying-jeou’s presidency, following former KMT Chairman Lien Chan’s ice-breaking trip to China, enabling high ranking officers to visit China. This has given the Chinese Communist Party a window of opportunity to engage in United Front work.

Source: Radio Free Asia, March 30, 2023
https://www.rfa.org/mandarin/yataibaodao/gangtai/hx1-03302023115918.html

Briefings | | |   Defense/Military

Former Senior Diplomat’s Comment “No One Will Stand Up for China” Gets Shut Down

Cai Xia, a former professor at the Central Party School of the Chinese Communist Party (CCP) who now lives in exile in the United States, tweeted on March 27 about Fu Ying, who served as China’s vice foreign minister from 2010 to 2013 and is now director of the Center for Strategic and Security Studies at Tsinghua University. Cai tweeted that Fu recently posted an article on WeChat commenting on U.S.-China relations. Fu urged the Chinese to think clearly: “If China and the United States break up or go their separate ways, will any country side with China? What do we really want? What should we do?”

Fu Ying stated that there are talks in China that the United States is declining. “Whether the United States is declining or not is the United States’ own concern. China cannot make the decision on whether the US is declining and repeating the belief that the US is in decline will not make it a reality. China has its own problems to focus on and should not expend all its energy on criticizing the United States. It is unnecessary for both nations to belittle each other continuously. Instead, China and the United States need to resolve their respective issues and cooperate with one another to benefit the world. This is the hallmark of great powers.” Fu concluded the article by expressing her hope that China and the United States can reconcile their differences and work together.

Fu’s comment was deleted shortly after it was posted. Fu’s WeChat page said, “This content is not viewable due to a violation.”

‘Source: Liberty Times (Taiwan), March 27, 2023
https://news.ltn.com.tw/news/world/breakingnews/4252829

Briefings | | |   US-China Relations

China’s Academic Databases Close the Door to Foreign Scholars

The University of California, San Diego library told Voice of America that it received notice on March 17 from the administrator of the China National Knowledge Infrastructure (CNKI) that it would be unable to access some databases as of April 1. Other affected libraries include the City University of Hong Kong Library, the Institute of Chinese Literature and Philosophy at Academia Sinica in Taiwan, and at least a dozen other research institutions.

Founded in 1999, CNKI is the largest academic database in China. It contains Chinese government reports, academic journals, and papers from 1915 to the present, covering a wide range of fields, including politics, economics, humanities and social sciences, and science and technology. For researchers who do not have physical access to Chinese libraries, the resources provided by the CNKI are particularly important to their research.

Donald Clarke, a professor at George Washington University Law School, said in his tweet, “It is unfortunately China that is by far the most active in decoupling — the most recent example being the closing of foreign access to many important CNKI databases.”

Steve Tsang, director of the China Institute at the School of Oriental and African Studies at the University of London, told Voice of America (VOA) that “CNKI has not indicated which databases may never be reopened. He added that researchers outside China could still access these resources by visiting research institutions in China.

“That means, however, that they have to be vetted by Chinese academic institutions before they can be accepted as visiting scholars. Under Xi’s rules, all these institutions are under the leadership of the Chinese Communist Party (CCP).” Tsang noted this, suggesting that the CCP hopes to influence how foreign academics portray China by controlling information.

Perry Link, a U.S.-based China scholar, says this reflects the mindset of the Chinese leadership. “Chinese Communist Party spokesmen often accuse the United States of having a ‘Cold War mentality. In today’s information age, there is nothing more indicative of Cold War thinking than preventing the free flow of government reports and academic papers across borders,” Link told VOA.

Source: Voice of America, March 28, 2023
https://www.voachinese.com/a/china-academic-database-slashes-foreign-access-20230328/7025597.html

Briefings | | |   US-China Relations

Saudi Aramco Announces Two Investments in China

According to Chinese state media, on March 28, Xi Jinping spoke by telephone with Crown Prince and Prime Minister Mohammed bin Salman of Saudi Arabia claiming that China-Saudi Arabia relations are now at their best ever and that China is willing to work with the Saudi side so that the two countries support each other firmly on issues concerning their core interests. According to the Saudi Press Agency, Saudi Crown Prince and Prime Minister Mohammed expressed appreciation for China’s support for “efforts to develop good neighborly relations.”

On March 26, Saudi oil giant Saudi Aramco announced that it had joined forces with China’s North Industries Group (Norinco) and the Panjin Xincheng Industrial Group to build a large integrated refinery and chemical complex in Panjin city of Liaoning Province. The three parties will jointly fund the establishment of Huajin Aramco Petrochemical Company (HAPCO), with Aramco, Norinco and Panjin Xincheng holding 30 percent, 51 percent and 19 percent respectively. The joint venture will include an oil refinery with a daily processing capacity of 300,000 barrels and a chemical plant with an annual capacity of 1.65 million tons of ethylene and 2 million tons of paraxylene. Construction will begin in the second quarter of 2023 and is expected to be fully operational in 2026. Aramco will supply up to 210,000 barrels of crude oil per day to the venture.

Earlier this month, Saudi Aramco reported annual profits of $161 billion in 2022, the highest annual profit ever recorded by a global energy company. Norinco is China’s largest producer of military equipment.

On March 27, Saudi Aramco signed another definitive agreement to acquire a 10 percent stake in Rongsheng Petrochemical Company Limited (Rongsheng Petrochemical) based in Hangzhou, Zhejiang Province for 24.6 billion yuan ($US 3.6 billion). Under the agreement, Aramco will supply 480,000 barrels of crude oil per day to Rongsheng Petrochemical’s subsidiary Zhejiang Petrochemical Co. The two sides plan to cooperate in trading, refining, chemical production, crude oil storage and technology licensing. The deal is expected to be completed by the end of 2023.

In addition to the above two agreements, on March 26, the Guangdong provincial government and Saudi Aramco signed a memorandum of cooperation proposing a framework for cooperation in exploring investment opportunities in a number of areas, including energy cooperation, research and innovation, industrial projects, financial cooperation, and talent exchange.

Source: Deutsche Welle, March 28, 2023
https://p.dw.com/p/4PMof

Briefings | | |   Geo-Strategic Trend

European Media Expose “Loyalty Contracts” for Chinese Students Studying Abroad

A joint investigation by Deutsche Welle and the German media outlet CORRECTIV reported that Chinese students studying in Germany are being closely monitored by the Chinese authorities. Those who receive scholarships from the China Scholarship Council (CSC) are required to sign an agreement and report to the Chinese embassy. Those who violate the agreement will be punished. According to the report, several German universities have already established cooperation with the CSC, and one Chinese student who signed the agreement said he was afraid to participate in demonstrations in Germany, while other Chinese students also expressed fear of surveillance by the Chinese authorities.

The China Scholarship Council is a unit directly under the administration of the Chinese Ministry of Education and is responsible for organizing, funding and managing Chinese citizens studying abroad and foreign citizens studying in China. The majority of Chinese students currently studying abroad with government support are receiving  scholarships provided by the CSC, which covers the study and living expenses of Chinese students admitted to overseas universities. Overseas institutions that cooperate with the CSC accept Chinese students with government scholarships, and all costs are covered by the Chinese side, without taking away from the foreign school’s own research funds. Therefore, this kind of cooperation is welcomed by overseas institutions, and some of them even provide special quotas for Chinese students with government scholarships. In recent years, the students with government scholarships have tended to be in the fields of science and technology, and some European institutions have found that some Chinese students have military backgrounds, which has increased the suspicion that European countries have toward Chinese students.

Besides Germany, countries such as Sweden have also discovered agreements between Chinese students and the CSC, and some universities have even terminated their cooperation agreements with China as a result. The agreements signed between the students and the Chinese authorities mainly stipulate that the students must return to China to serve for two years after graduation, that the scholarship recipients must have two Chinese citizens as guarantors, that the guarantors who are permanent residents of China should take a single trip abroad not exceeding three months, and that the spouse should not act as a guarantor. If the scholar violates the agreement, the guarantors are jointly and severally liable.

The agreement also stipulates that, during the period of study, the signatory “shall not engage in any activities detrimental to the interests and security of the motherland,” “shall obey the guidance and management of the embassy or consulate abroad during the period of study,” and “shall report regularly on the progress of study and research.” The agreement is not terminated until the signatory returns to China after two years of service.

The agreement requires the scholar not to interrupt his or her studies without cause, or the sponsor, who lives in China, will be liable for the compensation. The agreement came to light earlier this year when a Chinese student at Lund University in Sweden was advised to discontinue his studies due to poor academic performance. The student was concerned that discontinuing his studies would cause his family trouble because of the agreement he had signed with the Chinese authorities. Following reports in the Swedish media, leading universities such as Lund University and Uppsala University in Sweden said that, following reports in the Swedish media, in the future they would stop cooperating with the CSC.

Source: Voice of America, March 18, 2023
https://www.voachinese.com/a/agreement-of-loyalty-exposed-20230318/7011347.html

Briefings | | |   Geo-Strategic Trend

China’s Local Government Finances Are under Severe Pressure

Statistics from China’s Ministry of Finance show that from January through February of this year, the public budget revenue of local governments was RMB 2.38 trillion, an annual growth rate of only 2 percent; national tax revenue decreased compared to the same period last year. Revenue from the sale of state-owned land use rights was 562.7 billion yuan, down 29 percent from the same period last year.

A professor at Shanghai University of Finance and Economics said that local governments have been in financial trouble for a long time and that the three-year epidemic has deepened the crisis. The economic slowdown has reduced local government revenues and property market adjustments have caused a sharp decline in local government finances. Some local governments are in financial distress.

This year’s central government work report mentioned that, “Some grassroots governments have large deficits.” The budget report emphasized the requirements of living a tight life and keeping a firm grip on budget management, asset allocation, and government procurement.

Source: Central News Agency (Taiwan), March 21, 2023
https://www.cna.com.tw/news/acn/202303210283.aspx

Briefings | | |   Economy/Resources

Official Media on Xi Jinping’s Visit to Russia: China Should Say Four “Don’ts” to the West

During Chinese President Xi Jinping’s visit to Russia, the official Xinhua News Agency published a commentary saying that Western countries were worried about the Chinese leader’s trip to Russia and that China needed to say four “don’ts” to the U.S. and the West.

“Don’t make irresponsible remarks about the normal interactions between sovereign states.” The article said, “Friendship and cooperation between China and Russia are growing. Since 2013, the top leaders of China and Russia have met 40 times; Chinese leaders have visited Russia eight times. Whether the United States and the West like it or not, whether there is a crisis in Ukraine or not, normal contacts between the two countries should not be interrupted.”

“Don’t compare China-Russia relations with those between small groups of U.S. allies.” He added, “The U.S. is stuck in the Cold War mentality, drawing in one faction and isolating the other, forming various alliances and coterie. China and Russia,however, are not allies. It makes no sense for the U.S. and the West to tie China and Russia together at every turn.”

“Don’t undermine China’s efforts to promote peace talks on Ukraine.” The article boasted, “China has recently brokered a successful resumption of diplomatic relations between Iran and Saudi Arabia, two of the Middle East’s oldest enemies. This has drawn waves of praise from the international community and made the United States envious and jealous. It is now worried that the Ukraine issue will be turned around in the same way.”

“Stop using the Ukraine crisis as an excuse to attack and sanction China. The writer criticized, “The U.S. has the military, financial and technological hegemony to slander and oppress China. The Russia-Ukraine conflict is another ‘China containment card’ in the hands of the U.S., which links China and Russia and labels them as authoritarian states and an axis of evil in an attempt to tarnish China’s image. The U.S. has also sanctioned some Chinese companies for suspected support of terrorism.”

Source: Central News Agency, March 21, 2023
https://www.cna.com.tw/news/acn/202303210125.aspx

Briefings | | |   US-China Relations

SARS Whistleblower Died; the Authorities Banned Public Mourning

Jiang Yanyong, a retired Chinese military doctor known as the “whistleblower” of the 2003 SARS epidemic, died Saturday at the age of 91 at the People’s Liberation Army General Hospital in Beijing (also known as the 301 Hospital)  after he had contracted pneumonia and other illnesses that led to heart and lung failure.

A friend of Jiang Yangyong in Beijing told Radio Free Asia that the authorities had told Jiang’s family to keep his funeral low-key. “No public funeral, no public mourning or flower baskets, and no media interviews.” Wreaths or elegiac couplets must be given to Jiang’s wife, who will then submit them to the authorities for approval. The bureau has even written a eulogy for him.

Because of his exposure of the SARS epidemic in China in 2003, as well as his call for the authorities to correct the name of the 1989 student movement, from 2003 until the end of his life, Jiang’s personal freedom was constantly restricted . He also publicized his experience of saving the lives of students who were shot during the 1989 Tiananmen massacre.

During the 2019 sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference (CPPCC), Jiang wrote letters to Chinese President Xi Jinping and the NPC, asking them to redress the 1989 student movement.

The friend said that after writing the letters in 2019, Jiang was again placed under house arrest. “He was checked and not allowed to see outsiders. We couldn’t even see him, and his home phone was cut off. Even his son couldn’t contact him. Dr. Jiang was mentally hurt and his mood was negative. He suffered from Alzheimers in his later years. He wanted to go out to see a doctor, but the guards would not let him. Recently he contracted pneumonia and was admitted to the 301 Hospital.”

Source: Radio Free Asia, March 14, 2023
https://www.rfa.org/mandarin/yataibaodao/huanjing/gt2-03142023045039.html

Briefings | | |   Social Stability