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Xinhua Commentaries on U.S. “Security Concerns” over Chinese Products

Amidst recent concerns within the U.S. and other Western countries over security threats posed by Chinese electric cars, cranes, 5G equipment, and apps (e.g. TikTok), the official Chinese state news agency Xinhua has published commentaries saying that such concerns are “nothing but baseless excuses to suppress China.”

Xinhua published an article titled “The American Political Spectacle: No More Pretending! Spilling the Beans! American Politicians Have Been Speaking Blunt Truths Recently.” The article said: “Not long ago, Raimondo (U.S. Commerce Secretary) inadvertently revealed a ‘shocking secret’ during a televised interview. She attacked Chinese-made smart cars (EV), claiming they can ‘constantly collect data’ and send it back to China, ‘like iPhones on wheels.’ Something about this statement doesn’t seem right. Netizens exclaimed, ‘It is confirmed that Apple phones monitor the world!’”

Another article titled “Abusing ‘National Security’ Is a Poison to Global Development and Security” hinted that China may retaliate by restricting U.S. products within China over “security concerns”: “When some countries label Chinese products and equipment as ‘unsafe,’ they seem to forget that Chinese people may also worry about whether such countries’ own equipment poses a threat to Chinese national security. Tesla, an American company, is all over the streets of China; is it also collecting sensitive data in China? With over a hundred million users in China, can Apple’s iPhones unknowingly transmit Chinese users’ data back to the U.S.? U.S. Commerce Secretary Raimondo claimed that ‘Beijing can shut down three million Chinese cars driving on American roads simultaneously.’ Shouldn’t China also worry that Washington could simultaneously shut down millions of Apple phones owned by Chinese users? If these devices are deemed unsafe, does it imply that China also needs to take equivalent precautionary measures, ultimately leading to mutual decoupling, with each [party] seeking self-preservation?”

Sources:
1. Xinhua, March 18, 2024
https://app.xinhuanet.com/news/article.html?articleId=aa7f401b5cd60612370be7ecb7aff923
2. Xinhua, March 16, 2024
https://app.xinhuanet.com/news/article.html?articleId=86aa9d6962ef2cb9fac651da50511c1d

China’s Shifting Strategy: Overseas Investment in the Electric Vehicle Industry

A report from the American think tank Rhodium Group suggests that China likely set a new record in outward direct investment in the EV industry last year. This year, China’s overseas investment in EV will remain strong, but will shift from primarily investing in the battery sector to manufacturing electric cars in Europe, Latin America, and Asia. This shift will aim to appeal to host countries’ demand for high value-added investment and job creation in exchange for market access.

So far, Chinese EV manufacturers have focused mainly on auto exports rather than on overseas production. The volume of Chinese car exports surged in 2022-2023, triggering an EU anti-subsidy investigation into Chinese EV imports. As a result, BYD announced plans to build a car factory in Hungary. This move would bypass potential anti-subsidy tariffs that the EU might impose.

Chinese EV manufacturers realize that the EU welcomes direct investment even though it might block direct auto exports from China. Unlike the U.S., which would strictly scrutinize Chinese EV production on U.S. soil, EU member states compete with each other to provide incentives for Chinese companies. The Rhodium Group anticipates that the EU’s investigation into Chinese EVs will encourage direct investment by the Chinese electric car industry in the EU.

China is also attempting to circumvent U.S. restrictions by investing in US trade agreement partners such as Morocco and Mexico.

Source: Deutsche Well, March 14, 2024
https://p.dw.com/p/4dVjM

RFI: Chinese EVs Flooding Europe, Will Challenge Core German Industries

Radio France Internationale (RFI) reported that “Chinese goods are pouring into European markets, and the first wave of repercussions for German industry has begun to take shape.” Below are some key points from the report:

Within China, sales of electric vehicles (EVs), consumer goods, and industrial products have stalled. State-owned enterprises are facing overcapacity. China’s plan [to alleviate the overcapacity] is to flood the European market with these products.

Products from China no longer just involve steel batteries and solar panels, which dominated the market for years with unparalleled prices. The mechanical engineering industry is another area where China has over-invested, and Chinese goods are now putting greater pressure on European manufacturers. It is said that Chinese manufacturers can produce around 50 million cars annually, but domestic demand may only be as much as 23 million vehicles. China plans to export the surplus to the rest of the world.

In terms of technical specifications, Chinese cars are at least comparable to most German cars, but they are often much cheaper in terms of price. “In the near future, a wave of industrial products may spread from China to Germany.” This is a harbinger for serious issues potentially facing Germany’s core automotive industry. Businesses and policymakers must find new answers to address these challenges.

Source: Radio France Internationale, March 15, 2024
https://rfi.my/AQv7

Miles Yu Refutes Wang Yi’s “Four Questions” Blasting the US

On March 7, 2024, at the press conference of the Second Plenary Session of China’s 14th National People’s Congress, Chinese Foreign Minister Wang Yi raised four questions challenging the United States. On March 9, 2024, Miles Yu, former Chief China Adviser to the U.S. State Department, refuted Wang Yi’s questions point by point.

  • Wang’s Question #1: “If the United States always says one thing and does another, where is the credibility of [its being] a great power?”

Yu: There is credibility because the U.S. follows international norms, while the Chinese Communist Party (CCP) is self-absorbed and delusional. The CCP’s credibility has long been lost. It has become isolated internationally, turning into a source of risk and conflict. Domestically, everyone is thinking of escaping out of China or lying flat (not doing work anymore). There is no credibility for the CCP.

  • Wang’s Question #2: “If the United States becomes nervous and anxious at the mention of ‘China,’ where is the confidence of [its being] a great power?”

Yu: The American people, the Chinese people, and the whole world are pleased to hear the word “China,” but they become nervous and anxious when they hear “CCP,” because the CCP is an enemy of freedom. “Why does the CCP become nervous and anxious at the mention of the ‘United States,’ which represents freedom and democracy? Where is the confidence of your glorious party?” Yu countered.

  • Wang’s Question #3: “If the United States only seeks its own prosperity and does not allow other countries to develop legitimately, then where is international justice?”

Yu: The development of the CCP is not legitimate and goes against international justice.

  • Wang’s Question #4: “If the United States insists on monopolizing the high-end of the value chain and only allows China to remain at the low end, then what of fair competition?”

Yu: The CCP uses the mechanism of international fair competition to undermine the principle of fair competition, endangering the global free trade system. Not only is the United States vigilant, but the entire global market economy system is also actively working to prevent the CCP’s anti-market behavior and policies.

Source: Epoch Times, March 9, 2024
https://www.epochtimes.com/gb/24/3/9/n14198330.htm

Xi Jinping: Improve Military Strategic Capabilities In Emerging Fields

Xinhua News Agency published a report following a speech by Xi Jinping on March 7 addressing the need for “comprehensive enhancement of the military strategic capabilities in emerging fields.”  The speech was given during the Second Plenary Session of China’s 14th National People’s Congress at a meeting with a delegation of the People’s Liberation Army (PLA) and the Armed Police Force.

Xi Jinping emphasized the importance of focusing on the “construction of military strategic capabilities,” including plans for strategy and implementation, in emerging fields. “[China should] coordinate the preparations to conduct maritime military struggles, safeguard [Beijing’s] maritime rights, interests, and economic development, and enhance maritime strategic capabilities. [China should] optimize the layout of aerospace and advance China’s aerospace system. [China should] construct a defense system for cyberspace and enhance the country’s ability to safeguard network security. [China should] intensify efforts to coordinate major projects in intelligent science and technology.” Xi also stressed the need for innovation and self-reliance.

The Xinhua report mentioned that Zhang Youxia, Vice Chairman of the Chinese Communist Party’s Central Military Commission, presided over the meeting. He Wei-dong, another Vice Chairman, along with Liu Zhenli and Zhang Shengmin, members of the Central Military Commission, attended the meeting. The article did not mention the name of Miao Hua, who is also a member of the Central Military Commission.

Source: Xinhua, March 7, 2024
https://h.xinhuaxmt.com/vh512/share/11922399

Net Ease: China’s Water Cannon Injures Filipino Admiral, Renders Filipino Ship Inoperable

Chinese Internet portal NetEase has published a commentary claiming victory following an incident on March 5 when China’s maritime police used high-pressure water cannons against a Filipino boat, causing injuries to several Filipino crew members and damaging the ship. The Filipino boat was on a resupply mission for Filipino troops stationed at the disputed Second Thomas Shoal, a submerged reef in the South China Sea that is claimed by several countries including China and the Philippines.

The Associated Press reported that the Chinese water cannons shattered the windshield glass of the Filipino boat’s cockpit, resulting in four injuries. The NetEase article bragged that Filipino Admiral Alberto Carlos, who was aboard the resupply boat, was among those injured in the incident, adding that Adm. Carlos is Commander of the Philippines’ West Theater and calling him a “big fish” (i.e. an important person in the Philippines’ military).

From the NetEase article: “The Chinese Coast Guard ship fired a high-pressure water cannon at the supply ship where Carlos was, instantly shattering the glass in the cockpit of the Philippine supply ship. The situation in the Philippine ship’s cabin was chaotic. Four Filipino personnel were bleeding and injured, including Adm. Carlos. Subsequently, Chinese water cannons swept across the superstructure of the Philippine ship, destroying external equipment including communication antennas, causing serious damage to the Philippine ship.”

According to the NetEase article, a U.S. Morpheus-class littoral combat ship was in nearby waters during the incident. “The U.S. ship tried to enter the Second Thomas Shoal to assist the Philippine ship. However, not far from the Littoral Combat Ship, a PLA Navy warship and a carrier-based helicopter were on patrol, and so the U.S. ship dared not to act rashly.” The article also commented that, although the U.S. has signed a Mutual Defense Treaty with the Philippines, the Biden administration dared not take real actions to help the Philippines; it only offered lip service.

There have been several previous incidents involving clashes between the Chinese Coast Guard and the Philippine military, including another incident with a water cannon in August 2023 and an incident in February 2023 when the Chinese maritime police used a laser against a Philippine boat, temporarily blinding one Philippine soldier.

It is not clear whether the NetEase article is just an individually-authored piece or if it was written at the behest of orders from the CCP. The article appears to be written by an individual journalist, but the Chinese Communist Party has a long-standing practice of writing articles and then letting its fans (members of the “fifty-cent” party) publish the articles in their name, packaging the articles as “public opinion.”

Sources:

NetEase, March 9, 2024
https://m.163.com/dy/article/ISQ2OUKI05561T48.html

Associated Press, March 6, 2024
https://apnews.com/article/south-china-sea-philippines-disputed-second-thomas-shoal-5fec2d298151891d79cc077ff02f3a74

CNA: Chinese Overseas Democracy Activists Hold Conference on Blueprints for Democratic China

Taiwan’s Centra News Agency report that Chinese overseas democracy activists Wei Jingsheng, Wang Dan, Wang Juntao, and others convened the “First Overseas Chinese National Consensus Conference” in Washington, D.C. to discuss blueprints for a democratic China following a future collapse of the Chinese Communist Party (CCP). The two-day conference on March 2 and 3, and on March 4 the group released a “Declaration of the First National Consensus Conference on China’s Democratic Movement.” The declaration enumerated a 10-point consensus on future democratic processes.

The declaration stated: “At this critical moment, people concerned about China’s democratization should seriously study the Chinese situation and the experiences and lessons of various countries in the world and propose plans and approaches for rebuilding a constitutional political system in China.” The declaration emphasized that “overthrowing the tyranny of the CCP” and “establishing a free, equal, just, and harmonious civil society” must be the first step towards democratic nation-building in China.

Source: Central News Agency (Taiwan), March 5, 2024
https://www.cna.com.tw/news/acn/202403050211.aspx

China Among Largest Foreign Direct Investors in Indonesia’s New Capital City

In 2019 Indonesian President Joko Widodo ratified a motion to move Indonesia’s capital city from Jakarta to the new planned city of Nusantara, which is currently under construction and is to be inaugurated in 2024. China has become one of the biggest foreign investors in this new “smart city,” focusing mainly on infrastructure and industrial projects. The Nusantara Capital Administration has held investment forums and conferences in Beijing, Shanghai, and Shenzhen, to attract China’s money. Widodo said in October 2023 that in two years Beijing would bypass Singapore to become the country that contributes most to Indonesia in terms of foreign direct investment.

Research published by the University of Kentucky in 2021 showed that China had already invested in “smart cities” in Southeast Asia countries such as Malaysia, the Philippines, Thailand, and Myanmar.

Source: Voice of America, March 6, 2024
https://www.voachinese.com/a/china-to-invest-in-indonesia-new-capital-20240305/7514971.html