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China Introduces New Housing Reform

The CCP recently introduced a significant “housing reform” program, outlining a dual-track system primarily focusing on affordable housing to resolve housing market issues. The policy, titled “Guiding Opinions on Planning and Constructing Affordable Housing,” emphasizes two goals:

  1. increasing the construction and supply of affordable housing in major cities, and
  2. limiting investment-oriented commercial housing.

The policy stipulates that 60% of the housing market be allocated to affordable, public rental, and low-cost housing (保障性住房, affordable housing), and 40% be designated as “improved housing” housing (改善性住房, commercial housing). The policy targets three main groups as recipients of affordable housing: low-to-medium-income earners, new graduates, and “talented persons” recommended by the government for housing. Affordable housing is restricted to one unit per applicant, and it is forbidden from being turned into commercial housing. The reform aims to repurpose unused land and commercial housing inventory.

Beijing will carry out the housing reform in cities with over 3 million residents. There are 35 such cities in China, including Beijing, and Shanghai.

Some have raised concern over potential consequences of this policy:

  • it may put additional pressure on China’s commercial real estate market, pushing more real estate developers to bankruptcy;
  • it may result in financial loss for Chinese investors, who are heavily invested in real estate; and
  • China’s local governments may not have sufficient money to fund the development of affordable housing.

Source: Epoch Times, November 10, 2023
https://www.epochtimes.com/gb/23/11/10/n14114014.htm

Briefings | | |   Economy/Resources Government/Politics

In China, Conversations in Taxis Are Monitored

A netizen recently shared an experience on a social media platform in China regarding a Beijing taxi ride — there was a notice posted in the taxi indicating that all conversations would  be recorded. The notice included a line of text saying “The Chinese Communist Party (CCP) is good” (probably as a reminder to the passengers not to criticize the CCP).

This incident sparked discussions among internet users. Some mentioned that taxis in many cities are conducting full-trip video recording. Some cited instances where verbal altercations between passenger and driver led to later driver reprimands.

In September 2018, Didi, China’s largest ride-hailing car servicer, announced that it would implement “safety reforms” under government pressure. China’s Ministry of Transportation led a joint investigation into Didi involving 10 departments of the government, including the CCP Central Political and Legal Affairs Commission and the Ministry of Public Security. Soon after, Didi began rolling out full-trip recording functionality for its ride-hailing service.

Source: Aboluo, November 11, 2023
https://www.aboluowang.com/2023/1111/1976870.html

Briefings | | |   @CS Social Stability

China Recalibrates “Belt and Road” Lending

AidData, a research lab at William & Mary’s Global Research Institute, released a new report titled “Belt and Road Reboot: Beijing’s Bid to De-Risk Its Global Infrastructure Initiative.” The report details how Beijing has recalibrated its financing of overseas development.

China remains the world’s largest source of international financing for infrastructure development, surpassing both the U.S. and the World Bank. The report outlines China’s strategies for mitigating risks in its lending portfolio. To address distressed debts, short-term measures include emergency lending to debtors and sweeping repayments from borrowers’ cash collateral. Meanwhile, China has been de-risking its overseas investment portfolio by outsourcing risk assessment to Western banks that have “stronger due diligence standards and safeguard policies.”

In the face of soft power challenges, Beijing has adapted its allocation of international aid and credit, emphasizing investment in countries where neither China nor the U.S. holds a dominant soft power advantage. Additionally, Beijing has doubled investment in regions where China has gained reputational favor at the expense of the U.S.

Source: AidData, November 6, 2023
https://www.aiddata.org/blog/belt-and-road-bounces-back

Briefings | | |   Economy/Resources Geo-Strategic Trend

Discipline Inspector: Diplomats Face High Risk of Being Turned by Foreign Forces

The latest issue of “China Discipline Inspection and Supervision” magazine recently published a signed article by Zhang Jiwen (张际文), the head of the Discipline Inspection and Supervision Team stationed at the Office of Chinese Communist Party’s (CCP) Central Foreign Affairs Working Committee. The CCP Central Foreign Affairs Working Committee is the highest CCP organ that oversees China’s foreign affair work, including the work at the Ministry of Foreign Affairs.

The article says that Chinese diplomatic and foreign affairs officials are the main workforce of foreign affairs work and are at the forefront of such work. They face a relatively high risk of being turned (i.e. recruited) or bribed by foreign forces.

Some commentators view this as a hint regarding what happened to Qin Gang (秦刚), China’s former Minister of Foreign Affairs.

Source: The Paper, November 4, 2023
https://m.thepaper.cn/newsDetail_forward_25180379

Briefings | | |   Government/Politics US-China Relations

Xi Jinping Received Representatives of “Fengqiao-Style Work”

{Editor’s note: The “Fengqiao experience” was a Mao-era practice from the 1960’s. It refers to a practice from China’s Cultural Revolution where masses of citizens would monitor and “reform” those who are labeled as class enemies. In the town of Fengqiao, Zhejiang Province, CCP cadres relied on grassroots mobilization of masses to “reform reactionary elements,” a practice which Mao promoted for nationwide adoption. Xi Jinping has been making efforts to revive this practice [1]}

The Chinese Communist Party’s (CCP’s) Central Political and Legal Affairs Commission has selected 104 work units nationwide as the role model for applying the “Fengqiao-Style Work Method.” On November 6, Xi Jinping met with representatives of the selected units at the People’s Great Hall in Beijing. He encouraged them to continue their efforts, adhere to and develop the “Fengqiao Experience” in the new era, and make greater contributions to advancing a safer China.

Aboluo commented that the meeting conveyed significant importance with attendees of all the key figures in China’s political and security apparatus: Cai Qi (member of CCP Politburo Standing Committee and real power holder second only to Xi Jinping), Li Xi (Party Secretary of the Central Commission for Discipline Inspection), Chen Wenqing (Secretary of the Political and Legal Affairs Commission), Wang Xiaohong (State Council member and Minister of Public Security), Wu Zhenglong (Secretary-General of the State Council), Zhang Jun (President of the Supreme People’s Court), and Ying Yong (Chief Prosecutor of the Supreme People’s Procuratorate).

Sources:
1. Chinascope, September 28, 2023
http://chinascope.org/archives/33305
2. People’s Daily, November 7, 2023
http://paper.people.com.cn/rmrb/html/2023-11/07/nw.D110000renmrb_20231107_1-01.htm
3. Aboluo, November 7, 2023
https://www.aboluowang.com/2023/1107/1974826.html

Briefings | | |   @CS Government/Politics

Ministry of State Security: Be a Firm Guardian of Financial Security!

China’s Ministry of State Security published an article to state that it will safeguard China’s financial security, and that others should do the same. Commentators suggested that the article indicates China is running out of options for sustaining its financial market and is looking to expand the police forces for support. The following is a translation of the article:

Financial security is an important part of national security. The maintenance of financial security is a major responsibility with strategic and fundamental importance concerning China’s overall economic and social development. To promote high-quality development of China’s financial industry, we must build a solid defensive perimiter for financial security and limit what financial risks we are willing to accept.

Some countries treat finance as a tool for geopolitical games, repeatedly acting as currency hegemon and [threatening others by] waving the “financial sanctions” stick. Some ill-intentioned people [within China] have tried to stir up turmoil and make money during the [resulting] chaos. There are not only people who short-sell Chinese assets when they anticipate China’s financial market will fall, but also people who advocate for the fall of the financial markets or who steal money from the financial markets. They have attempted to shake the confidence of the international community in investing in China and to trigger financial turmoil in China. These factors have brought new challenges to the maintenance of financial security under present circumstances.

State security organs should place greater importance on preventing and resolving financial risks; actively participate in the development of national security systems in the economic and financial fields; closely monitor, accurately predict and effectively prevent national security risks in the financial field; crack down on and punish illegal and criminal activity in the financial field that jeopardizes national security; act as a steadfast protector of financial security; and make contributions for the sake of national security to the advancement of high-quality financial development [of China] and high-level opening up. (Ministry of State Security)

Source: Sina, November 3, 2023
https://finance.sina.cn/2023-11-03/detail-imzthyww3984891.d.html?oid=%E8%B4%A2%E7%BB%8F%20%E6%97%A0%E9%94%99%E7%89%88%E7%BB%B4%E6%8A%A4%EF%BC%88kxys.vip%E7%94%B5%E6%8A%A5%EF%BC%9A@kxkjww%EF%BC%89.smb&vt=4&cid=76654&node_id=76654

Briefings | | |   Economy/Resources Government/Politics

Chinese Automakers to Produce Cars in Mexico

Chinese automakers are eyeing the American car market, making substantial investments in Mexico so that they can take advantage of geopolitical and trade agreement benefits. Since China faces high tariffs and restrictions on exporting cars to the U.S., Mexico’s strategic location and the USMCA trade agreement have made the country a favorable location for Chinese companies to produce electric vehicles (EVs) for export to the U.S.

Beijing’s strong support for China’s domestic electric vehicle industry, along with the prominence of Chinese company CATL as the world’s largest lithium battery producer, has positioned China as a major player in the EV market. Chinese automakers, such as JAC and Giant Motors, have already been assembling cars in Mexico for several years. Recently, Chinese companies Chery and Foton also began setting up factories in Mexico.

Source: Voice of America, November 1, 2023
https://www.voachinese.com/a/focusing-on-the-us-ev-market-chinese-companies-invest-heavily-in-mexico-20231031/7335006.html

Briefings | | |   @CS Economy/Resources Geo-Strategic Trend US-China Relations

Cities in Shandong Province to Consolidate Local Police Stations

Several regions, including Qingdao, Huangdao, Linyi, and Weifang cities, in Shandong Province, have recently announced the consolidation and merger of local police stations. Police stations are a key component of the Chinese Communist Party’s stability control (people control). The move to cut down police stations has sparked discussions among netizens, with some speculating that the move is motivated by local governments’ severe budget shortfalls.

Source: Epoch Times, October 30, 2023
https://www.epochtimes.com/gb/23/10/30/n14106030.htm

Briefings | | |   Government/Politics Social Stability