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Chinese Military Attaché Tails Taiwanese Vice President-Elect in Czechia

Several vehicles followed Taiwanese Vice President-elect Ms. Hsiao Bi-khim during a visit to Prague in March. A Chinese Military Attaché, holding a diplomatic passport and working for the military department of the Chinese Embassy in Prague, was driving one of the vehicles. The Czech Ministry of Foreign Affairs is reportedly “handling” the matter, which is “not yet resolved;” the Czech government has summoned the Chinese ambassador and is considering designating the individual involved as persona non grata, potentially leading to his expulsion from the country.

Czech media outlet Seznam Zpravy reported that several vehicles were seen following Hsiao’s police motorcade when she arrived in the Prague city center. At an intersection, one of the trailing vehicles ran a red light, almost crashing into her convoy. The Czech police stopped the vehicle and found that the driver held a diplomatic passport of the People’s Republic of China. He worked for the military department of the Chinese Embassy in Prague. The Chinese military diplomat denied that he had been following Ms. Hsiao, claiming that he was just going to a nearby Chinese restaurant for a meal. Nevertheless, reports pointed out that the car had been following her all the way to her hotel.

Ms. Hsiao Bi-khim’s visit to Prague was part of a tour of the Czech Republic, Poland, and Lithuania in March.

Source: China Times (Taiwan), April 6, 2024
https://www.chinatimes.com/cn/realtimenews/20240406000948-260408

Briefings | | |   Geo-Strategic Trend

China’s Banks Ask Employees to Return Bonuses

As China’s economy slides downward and banks strive for survival, several banks have asked their employees to return bonuses and subsidies.

Taiwan’s Central News Agency cited a Securities Times post on WeChat saying that several Chinese banks are reclaiming performance bonuses “totaling nearly 100 million yuan (US$ 13.8 million). The China Merchants Bank, Bohai Bank, and Bank of China together accounted for a total of 89.48 million yuan.”

“In 2022, more than half of the approximately 40 listed banks disclosed such bonus reclamations in their annual reports. For example, China Merchants Bank reclaimed a total of 58.24 million yuan in 2022, and 43.29 million yuan in 2023.”

Source: Central News Agency (Taiwan), April 3, 2024
https://www.cna.com.tw/news/acn/202404030315.aspx

Briefings | | |   Economy/Resources

China and Thailand to Carry Out Joint Moon Exploration

On April 5th, China’s National Space Administration and Thailand’s Ministry of Higher Education, Research and Innovation jointly signed a “Memorandum of Understanding on Cooperation for Exploration and Peaceful Utilization of Outer Space” as well as a “Memorandum of Understanding for Cooperation on an International Lunar Research Station.”

Xinhua reported that “China and Thailand will establish joint committees and working groups to strengthen cooperation in the fields of space exploration, space applications, building space capacity. This will be done through joint space projects, scientific exchange programs, personnel training plans, data and information exchange, and organization of joint thematic workshops and scientific seminars.”

“China’s Chang’e-7 mission [planned for 2026] will reportedly carry a ‘Global Space Weather Monitoring’ device developed by Thailand. This will be the first time a Thai scientific instrument enters deep space from Earth orbit. China’s Chang’e-8 mission [planned for 2028] provides opportunities for international collaboration, with the ability to carry payloads of 200 kilograms. Thailand has submitted several applications regarding lunar surface robots and scientific payloads. The applications are currently being processed.”

“China has already signed space cooperation agreements with more than 10 countries and international organizations.”

Source: Xinhua, April 5, 2024
http://www.xinhuanet.com/20240405/8b67999f500143a0825a9609a5283f91/c.html

Briefings | | |   Geo-Strategic Trend Information/Technology

CCP Uses Ma Ying-Jeou’s China Trip to Promote Its Agenda

Taiwan’s former President Ma Ying-jeou of the Kuomingtang party is leading a group of Taiwanese youths to visit China. On April 4th they participated in a ceremony to commemorate the Yellow Emperor, an ancient Chinese cultural hero known as “the origin of Chinese people,” in the Yellow Emperor’s hometown in Shaanxi Province.

People’s Daily reported that Ma’s Taiwanese youth group had their hearts filled with “a sense of pride and admiration” through participating in various activities in mainland China. “From watching drone performances to test-driving the latest new-energy vehicles, from experiencing advanced artificial intelligence technology to witnessing century-spanning projects like the Hong Kong-Zhuhai-Macao Bridge, they have personally experienced the economic development and technological progress of the mainland.” The report said that “some Taiwanese youths proudly call themselves fans of China’s products.”

According to Taiwanese newspaper Liberty Times, sources have revealed that the anticipated meeting between Xi Jinping and Ma Ying-jeou will be deliberately postponed from April 8th to April 10th. This is being done in order to “counter” several meetings that will be held in the U.S. on April 10th-11th. On April 10th, U.S. President Biden will meet with Japanese Prime Minister Fumio Kishida in Washington DC, with planned discussion on security, regional situations, and the importance of Taiwan Strait security. Philippine President Macapagal-Arroyo will arrive in the U.S. on April 11th, and the three parties will then engage in a US-Japan-Philippines trilateral summit, undoubtedly touching on issues regarding the South China Sea.

Senior national security officials in Taiwan pointed out that the CCP usually summons Ma whenever the global democratic community prepares to confront the CCP’s authoritarian regime. Ma’s recent talk of “One China” and “Taiwan is not a country” seem to have paved the way for the upcoming “Xi-Ma meeting.” Ma’s trip relates to Xi Jinping’s agenda of “unification” of Taiwan, as well as to the theme of supporting Chinese manufacturers that are under U.S. sanction.

According to Radio France International (RFI), Ma stated on January 9th (a few days before Taiwan’s last Presidential election) that “you must trust Xi Jinping” regarding cross-strait relations. He claimed that Xi has no intention of unification [of Taiwan and Mainland China]. He also said that the Taiwanese people would be able to accept unification [if it came to that]. RFI reported that Ma’s remark caused a wide range of public criticism, forcing the Kuomintang’s presidential and vice-presidential candidates, Hou Youyi and Zhao Shaokang, to quickly distance themselves from Ma.

Sources:
1. People’s Daily, April 6, 2024
http://tw.people.com.cn/n1/2024/0406/c14657-40210412.html
2. Liberty Times, April 6, 2024
https://news.ltn.com.tw/news/politics/breakingnews/4632782
3. Radio France International, January 12, 2024
https://www.rfi.fr/cn/台湾/20240112-台媒聚焦马英九回答-为何不要求中国放弃武统还要相信习近平

Briefings | | |   Geo-Strategic Trend Government/Politics

China’s CRRC Drops Out of Bidding After EU Subsidy Probe

On February 16th, the European Union announced a subsidy investigation against China Railway Rolling Stock Corporation (CRRC). CRRC Qingdao Sifang Locomotive & Rolling Stock Co., Ltd. was suspected of relying on state subsidies to submit a bid with an undue advantage in the tender for electric trains in Bulgaria. The Bulgarian tender was for the purchase of 20 electric trains and maintenance for the next 15 years, with a total value of approximately 610 million euros (660 million US dollars).

On March 26th, the European Commission stated that CRRC withdrew its bid, and that because of the CRRC’s withdrawal, the EU will terminate the investigation.

Thierry Breton, the EU’s Internal Market Commissioner, said “In just a few weeks, our first investigation under the Foreign Subsidy Regulations has already produced results.”

The European Union has recently intensified its scrutiny of Chinese companies that may receive state subsidies to gain bidding advantages. Ursula von der Leyen, President of the European Commission, announced an investigation in September of last year into Chinese government subsidies potentially causing “artificially depressed” prices for Chinese electric vehicles hitting the European market.

Source: VOA, March 27, 2024
https://www.voachinese.com/a/china-withdraws-from-balgaria-tender-20240326/7543652.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Xinhua Commentary: Pacific Island Countries Should Not be Anyone’s “Backyard”

Xinhua News Agency published a commentary regarding a statement by Linda Thomas-Greenfield, the U.S. ambassador to the United Nations. Thomas-Greenfield made the following statement in an interview on April 1st:

“[The U.S. is] not trying to force countries to choose between us and China. What we’re doing is giving them a choice to make. Many countries will say we’re forced into these relationships because we don’t have other choices. We’re giving them those other choices. And those other choices mean having the U.S. have their backs, having the U.S. standing with them side by side as they address some of the challenges that China is forcing upon them.” [2]

Xinhua called the statement “not only illogical but also a misrepresentation of the facts.” It stated that the Pacific Island countries have the political wisdom to make their own decisions. Below are some translated excerpts from the commentary:

“In recent years, the U.S. has been aggressively promoting the “Indo-Pacific strategy,” from the AUKUS (security partnership among the US, UK, and Australia), to the QUAD (quadrilateral security dialogue among the US, Japan, India, and Australia), and further to the “Blue Pacific Partnerships” initiative (involving the US, Australia, Japan, New Zealand, and the UK). The United States has gone to great lengths in creating various “circles” to contain China, enticing and utilizing Pacific Island nations as a crucial part of its containment strategy. However, the United States underestimates the political wisdom of the Pacific Island countries in discerning the current situation, as well as their determination to pursue an independent and autonomous development path.”

“In April 2022, China signed a government-to-government security cooperation framework agreement with the Solomon Islands. In July 2023, China and the Solomon Islands formally established a comprehensive strategic partnership based on mutual respect and common development in the new era. During the 2024 Boao Forum for Asia Annual Conference, President Lionel Aingimea of Nauru stated that, as a Pacific Island nation and a developing country, Nauru supports “building bridges” rather than “erecting walls” and hopes to construct a more integrated and closely-connected world.”

“Fiji Prime Minister Frank Bainimarama recently stated that China’s assistance to Pacific Island nations has played an important role in regional development.”

“The various slanders and smears by the U.S. against China’s pragmatic cooperation with Pacific Island nations will only expose the U.S.’ domineering attitude of judging others by its own standards. Pacific Island nations are independent sovereign states and not anyone’s “backyard.”

Sources:

Xinhua, April 4, 2024
http://www.xinhuanet.com/world/20240404/7934d20bdc9c476c81c1035425ffdc4a/c.html

CSIS, April 1, 2024
https://www.csis.org/analysis/us-ambassador-united-nations-linda-thomas-greenfield-us-diplomacy-pacific-islands

Briefings | | |   Geo-Strategic Trend US-China Relations

China Makes Progress on eVTOL Aircraft Development

China has made progress in development of electric Vertical Take-Off and Landing (eVTOL) aircraft. China views the eVTOL platform as a revolution in aviation. “Similar to the transition from gasoline cars to electric cars on the ground, [a transition] from gasoline-powered helicopters to eVTOL aircraft [is occurring],” said Xie Jia, Senior Vice President of Fengfei Aviation Technology, Shanghai.

On October 10, 2023, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration of China jointly issued an “Outline for the Development of a Green Aviation Manufacturing Industry (2023-2035)” proposing that, by 2025, eVTOLs will achieve pilot operation. The outline further proposes that, by 2035, new types of general aviation equipment characterized by unmanned, electric, and intelligent features will achieve commercialization and large-scale application.

In October 2023, China had its first flight of a 2-ton eVTOL in Shanghai. The aircraft, the M1, was developed by the Future Wing Company in Shanghai. The vehicle became China’s first independently-developed and domestically-produced 2-ton eVTOL. Production was domestic in all three core areas: electric systems, flight control systems, and composite materials. The M1 has a composite wing configuration with 20 rotors, a maximum payload of 500 kilograms, seating for 5 people, a cruising speed of 200 kilometers per hour, and an intended range of 250 kilometers. It can meet short-distance air travel needs within and between cities, shortening travel time from 2-3 hours to around 30 minutes.

In March of 2024, the eVTOL “Shengshi Long” took off from Shenzhen and landed at the Zhuhai, both in Guangdong Province, covering a distance in 20 minutes that would have taken 3 hours by car. This was the world’s first public demonstration of an eVTOL flight that traveled over water and between cities. The aircraft was developed by Shanghai Fengfei Aviation Technology Co., Ltd., with a takeoff weight of 2 tons, seating for 5 people, a cruising speed of up to 200 kilometers per hour, and 100 percent domestic production of its core modules.

Sources:
1. People’s Daily, October 31, 2023
http://sh.people.com.cn/n2/2023/1031/c176738-40623560.html
2. People’s Daily, March 2, 2024
http://ent.people.com.cn/n1/2024/0302/c1012-40187361.html

Briefings | | |   Information/Technology

Ministry of State Security Creates Short Film to Warn Chinese Companies of Spying by Foreign Consulting Firms

Beijing recently held the China Development Forum, where Xi Jinping met in person with representatives of  foreign companies on March 27th and showed an open attitude toward those companies. On March 28th, however, the Chinese Ministry of State Security released a short film warning the Chinese people to be vigilant about foreign consulting companies’ potential theft of sensitive information in key areas.

The ministry’s WeChat account posted the film under the title “Beware! ‘Secret’ Investigations Conceal National Security Risks.” The film charged that, in recent years, “foreign espionage and intelligence agencies” have conducted espionage operations, and that the movie was based on real cases.

The movie lasts about 8 minutes and 22 seconds and is divided into 4 segments for broadcast. It reveals how “foreign espionage and intelligence agencies” instructed “overseas investigative consulting companies” to take advantage when Chinese companies seek overseas investment. These consulting companies conduct comprehensive investigations on the company to “obtain core data and national secrets” resulting in “losses to national security and interests.” They use methods such as enticing company personnel to answer sensitive questions, accessing sensitive information beyond the scope of their work, and filming sensitive files related to core products.

The Ministry of State Security reminded the Chinese people about China’s “Counter-Espionage Law” and its “Regulations on Management of Foreign-Related Investigations,” emphasizing that “national security is everyone’s responsibility.” Citizens who discover “suspicious situations that endanger national security” should immediately call to make a report.

Source: Central News Agency (Taiwan), March 28, 2024
https://www.cna.com.tw/news/acn/202403280311.aspx

Briefings | | |   Government/Politics