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Beijing Appointed National Security Advisers for Macau

On December 3, according to China’s official Xinhua News Agency, China’s central government decided to establish a national security affairs advisor and three national security technical advisors to be on a Committee for Safeguarding the National Security of the Macao Special Administrative Region (SAR). Beijing actually made this decision on November 30 in its reply to the Chief Executive of Macau.

The reply also said that the head of the Liaison Office of the Central Government in the Macau SAR in Beijing will take the position of national security advisor and that staff members in the Liaison Office will fill the positions of technical advisors. The Liaison Office works as Beijing’s representative in Macau.

The national security affairs adviser will be in charge of “supervising, guiding, coordinating, and supporting the Macao SAR in the function of safeguarding national security.” The duties of the national security technical adviser shall include “assisting the national security affairs adviser” and advising on matters pertaining to the duties and functions of the office of the Committee for Safeguarding the National Security of the Macao SAR.

In addition, the reply mentioned that the national security affairs adviser shall sit in on meetings of the Committee, and the national security technical advisers shall sit in on meetings of the office of the Committee.

The Hong Kong National Security Law that passed last year also provided for the establishment of a “Committee for Safeguarding National Security.” The Chief Executive would chair the Committee. His duties would include analyzing and assessing the situation of the HKSAR’s national security, planning relevant work, formulating policies, promoting the development of legal systems and implementation mechanisms, and coordinating major operations. The Committee in Hong Kong also has a national security advisor that Beijing appointed. The advisor would attend its meetings and provide advice on related matters.

Source: Xinhua, December 3, 2021
http://www.news.cn/gangao/2021-12/03/c_1128126706.htm

Local Government Debts Reached a New High; Half of New Debts Are to Pay Off Old Debts

China’s debts have continued to soar, with the latest official figures showing that local government debts surged in the first 10 months of the year, reaching a record high of 30 trillion yuan (US$ 4.7 trillion). A more concerning phenomenon is that nearly half of the new debts were not injected into the economy but were used to pay off old debts.

On Tuesday November 23, China’s Ministry of Finance released the latest data on local government bond issuance. From January to October this year, China issued a total of 6.49 trillion yuan (US$ 1.0 trillion) in local government bonds, up 6 percent from the same period last year and hitting a record high. Among them, 2.8 trillion yuan (US$ 0.44 trillion) was issued to refinance bonds, an increase of 75 percent compared to the same period last year. In other words, the increase in local bond issuance this year is mainly due to the issuance of refinancing bonds.

In addition, as of the end of October this year, the balance of local government debt was about 29.7 trillion yuan (US$ 4.7 trillion). From January to October this year, Guangdong surpassed all other provincial governments in bond issuance. The total amount issued was 589.4 billion yuan (US$ 92.2 billion).

Source: Radio Free Asia, November 23, 2021
https://www.rfa.org/mandarin/yataibaodao/jingmao/ac-11232021044123.html

The Fourth World Media Summit

The “United Front” is both a strategy and an ecosystem of the Chinese Communist Party (CCP).  It is a guided or CCP-controlled group charged with advancing both China’s domestic control and its international influence. The media represent an important front. Beijing’s “World Media Summit” is an annual platform to influence overseas media.

According to China’s official Xinhua news agency, the fourth World Media Summit was held in Beijing on November 22. Huang Kunming, a member of the Political Bureau of the CCP Central Committee and head of Central Propaganda Department, attended the plenary session and read the CCP Chair Xi Jinping’s congratulatory letter and delivered a keynote address.

Huang pointed out that Xi Jinping’s congratulatory letter fully affirmed the achievements of the summit and placed great expectations on the global media to shoulder their social responsibilities and promote the building of a “community of human destiny in a better way.”

Huang told the media “to adhere to objectivity, truthfulness, and scientific and rational judgment; to oppose rumors and bias, and to be responsible in disseminating public information.” Huang then went ahead with the party line: “The CCP and the State have made historic achievements and have made important contributions to the peaceful development of the world.”

Xinhua news agency hosted this year’s summit. Nearly 400 Chinese and foreign guests from more than 260 media and institutions in nearly 100 countries and regions attended the meeting online and in person.

Source: People’s Daily, November 23, 2021
http://paper.people.com.cn/rmrb/html/2021-11/23/nw.D110000renmrb_20211123_4-04.htm

Nepali Secret Document Details Chinese Intelligence Officials’ Role against MCC

Nepal, a country that borders Tibet, is giving consideration to joining the U.S. Millennium Challenge (MCC) aid program. Local media have recently exposed a classified report from Nepal’s national security authorities that revealed that  China’s Ministry of State Security (MSS) has a long history of intelligence espionage and would stop at nothing to thwart the program.

Khabarhub, a Nepali English language media, revealed the classified report on November 12. “Khabarhub obtained the document on the condition of confidentiality and anonymity. It covered in detail the Chinese intelligence apparatus, its modus operandi inside Nepal, and the people involved in it.” “The report also included details about intelligence officials working as diplomats, journalists, and even businessmen.”

“The document states that China is ‘playing a role’ in souring Nepal’s relations with third countries, particularly with the United States, and is currently actively propagating, lobbying and spending against the MCC.”

“The 50-page confidential intelligence document also details all of China’s intelligence priorities, objectives, networks, and individuals in Nepal. Many details of the past are also mentioned in the document.”

“Nepali security forces have concluded that the Chinese intelligence officials’ top priority is to invalidate MCC at any cost. The security authorities have also concluded that the Chinese intelligence agency is actively involved in lobbying against MCC and is disseminating disinformation.”

“Nepali security and intelligence officials warn that the rapid advance and increased Chinese intelligence volume could even play a role in changing Nepal’s political position.”

“Lately, besides gathering intelligence, the Chinese are actively influencing and spending money on Nepali politicians, journalists and even businessmen.”

The report also identifies a Chinese national, Ning Lin, a name at the top of the security authorities’ list of those involved in crafting anti-MCC rhetoric in Nepal. Lin, (also known as “Oscar Ning”), a Chinese intelligence agency (MSS) official, carries two passports and is said to have come from the Chinese province of Hubei.

Source: Khabarhub, November 12, 2021

Nepali security authorities identify a Chinese intelligence agency official involved in anti-MCC propaganda

India Says China Is its No. 1 Security Threat

On Thursday, November 11, multiple Indian media reported that  the Indian government told the country’s Supreme Court  that the Indian military needs to expand the roads along the India-China border to meet the need to transport the army’s current state-of-the-art BrahMos supersonic cruise missiles and other military equipment. Earlier India’s Chief of Defence Staff Gen Bipin Rawat told a forum that China has become India’s number one security threat.

The move came after India unveiled an INR120 million strategic project to connect four pilgrimage sites in North Akhand with a 900-kilometer highway. The government on Thursday petitioned the Supreme Court to revise the plan, as Attorney General K. K. Venugopal reportedly claimed that local terrain conditions were harsh and that the 5.5-meter-wide road was insufficient to transport the 12.8-meter-long BrahMos missile and its launcher. If the Indian military cannot transport the device and other heavy mechanical equipment to the northern border of India and China, it will be difficult for India to respond in the event of war.

The BrahMos missile is the most advanced long-range supersonic missile of the Indian military. Rawat said that the Indian military has prepared for “any misadventure.” “If a Galwan [Editor: referring to the place of a previous clash] were to happen again, it would not be in our hands; it is up to the Chinese. They can carry out a Galwan again but should they do it, they will get in the same coin they got last time.”

Source: Radio Free Asia, November 13, 2021
https://www.rfa.org/mandarin/Xinwen/7-11132021171839.html

China Bans State-owned Entities from Virtual Currency Mining

The National Development and Reform Commission (NDRC), China’s top economic policy agency under the State Council, recently issued a press release, which requested local governments to punish virtual currency mining activities and to investigate the mining activities that involve state-owned entities.

In late September, NDRC and other cabinet agencies issued a notice on regulating virtual currency mining.  Virtual currency mining projects were forbidden from participating in the electricity market, and the projects that were already in the electricity market were to withdraw.

In July, China’s central bank, the People’s Bank of China (PBOC), issued a “Risk Alert on Preventing Virtual Currency Transactions.” The notice warned that institutions should not provide business venues, commercial exhibitions, marketing, promotion, payment and other services for virtual currency-related activities. Financial institutions were not to provide virtual currency-related services directly or indirectly to customers.

China is a major cryptocurrency mining country. About 70 percent of the world’s bitcoin mining takes place in China. Some of these “miners” had already considered leaving after the authorities showed their determination to eliminate virtual currency mining.

Source: Central News Agency, November 13, 2021
https://www.cna.com.tw/news/acn/202111130086.aspx

Chinese Ambassador Gave Speech to a United Front Work Department-controlled Organization

On Saturday November 13, the annual meeting of the National Association for China’s Peaceful Unification (NACPU) was held in San Francisco. Chinese Ambassador to the United States Qin Gang delivered a speech using video conferencing. Qin said that the United States is “manipulating” the Taiwan issue and attempting to “contain China using Taiwan,” a move that seriously endangers peace and stability across the Taiwan Strait. He urged the United States to adhere to the one-China principle, properly handle the Taiwan issue, and prevent the Taiwan issue from leading to conflict and confrontation between the United States and China.

The NACPU is a U.S.-registered umbrella organization with branches in multiple cities including Washington DC, New York, and Houston. In mainland China, there is a corresponding government-controlled China Council for the Promotion of Peaceful Reunification (CCPPR, 中国和平统一促进会), a senior Chinese Communist Party leader is almost always its head. The U.S.-based NACPU and its branches routinely carry out the tasks of mobilizing the local Chinese American community and advancing Beijing’s agenda on the Taiwan issue at the federal, state, and local governments.

In October 2020, the U.S. State Department issued a statement, “The Designation of the National Association for China’s Peaceful Unification (NACPU) is a Foreign Mission of the PRC.” It said, “The United Front Work Department (UFWD) is the Chinese Communist Party’s  (CCP’s) organ that is tasked with co-opting and neutralizing threats to the party’s rule and spreading its influence and its propaganda overseas. The CCP regards this party apparatus as a ‘magic weapon’ to advance Beijing’s policies.”

“… the Department of State designated a UFWD-controlled organization – the National Association for China’s Peaceful Unification (NACPU) – as a foreign mission of the PRC under the U.S. Foreign Missions Act. The goal of this action is to shine a light on this organization and make clear that its messages come from Beijing, as we did when, in August, we designated the Confucius Institute’s U.S. Center (CIUS) as a foreign mission.”

The recent speech by Qin Gang to the NACPU annual meeting is a recent example of Beijing’s message to this organization.

Source: Radio Free Asia, November 14, 2021
https://www.rfa.org/mandarin/Xinwen/4-11142021115124.html

German Technologies Used in Chinese Warships

ARD Fernsehen, a German TV station, reported that one of its investigative programs, “The Munich Report” and the German newspaper Welt am Sonntag (“World on Sunday”) discovered the role that German technology has been playing on Chinese warships.

German manufacturers have developed and even built a sizable portion of the engines that power the Chinese Navy’s warships. The MTU Friedrichshafen, a manufacturer of internal combustion engines, and MAN, the French subsidiary of Volkswagen, are involved. One can find detailed information about the German engine and turbine manufacturer’s supplies to China in the publicly accessible database of the Stockholm International Peace Research Institute (SIPRI). MTU is said to have been a regular supplier of China’s most advanced Brigadier III class destroyers until at least 2020. The supply comes through the circuitous route of licensed production in China. MAN and MTU assured the Munich Report and Welt am Sonntag that they have always complied with export control regulations. According to MTU, the business of delivering submarine components to China “completely stopped” after the Song-class submarines were equipped. The company “has never signed a contract with the Chinese Ministry of Defense or armed forces itself.” The engines installed in the Brigantine III-class destroyers, as SIPRI calls them, do not require an export license because they are so-called dual-use goods. That is, the engines can also be used for civilian purposes.

This year, the Chinese Navy is putting more of its Brigantine III-class destroyers into service. The most recent is the destroyer Kaifeng, which was unveiled in July on the 100th anniversary of the founding of the Chinese Communist Party (CCP).

MTU and MAN can claim that their deliveries are permitted. The EU imposed an arms embargo on China after the Tiananmen massacre in 1989, but the embargo’s binding effect is limited. Sebastian Rossner, a Cologne-based lawyer and export expert, told Germany’s ARD public broadcaster, “Because the EU arms embargo on China was not formally decided in accordance with the European treaties, certain exports of ship engines may also be permissible (if intended for the Chinese navy).” He added, “If you want to change this, the EU must either amend the Dual-Use Regulation or formally impose an arms embargo.”

Source: Radio France International, November 7, 2021
https://rfi.my/7tZR