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CNA: China Changes Names of 30 Places Along Indian Border

Primary Taiwanese news agency Central News Agency (CNA) recently reported on the territorial dispute between China and India.

“The territorial dispute between China and India has intensified. After India recently reaffirmed its sovereignty over Arunachal Province in southern Tibet, the Chinese Ministry of Civil Affairs announced another batch of 30 names to be used for locations in southern Tibet.

Indian Prime Minister Modi visited Arunachal Pradesh, a province known in China as ‘South Tibet.’ He presided over the opening ceremony of the Sela Tunnel (the world’s longest bi-lane tunnel). This triggered dissatisfaction and protests in China.”

The Chinese Ministry of Civil Affairs announced name changes in the Chinese and Tibetan languages for these 30 places. “It also listed the name category, administrative region, and longitude and latitude for each location. Most of these 30 locations are located on mountain peaks and rivers, and only 11 of them are residential areas.”

“Prior to this, China issued three batches of official name changes for locations in southern Tibet. … However, this batch made the most changes.”

The Indian government immediately issued a statement refusing to accept the name changes, emphasizing that the relevant areas were part of India’s “indivisible” territory. A Chinese Foreign Ministry spokesperson then responded that southern Tibet is part of China’s territory and that the name changes “are completely within the scope of China’s sovereignty.”

Source: CNA, March 30, 2024
https://www.cna.com.tw/news/acn/202403300217.aspx

RFA: Fiji Asks Chinese Police to Leave the Country

Radio Free Asia (RFA) recently reported that Beijing’s influence in the South Pacific is growing as China increases its investment and diplomatic relations in the region. This situation has caused concern in Fiji. Fijian Prime Minister Sitiveni Rabuka stated recently that he has asked the Chinese police stationed in his country to leave, and that he will review the police cooperation agreement signed with China. He said that the judicial systems and police investigation methods of the two countries are not the same, and that he is uneasy about China’s deployment of public security in the Fiji police force.

Fiji is retaining its police cooperation agreement with China for the time being, allowing senior police officers to continue to receive training in China. The agreement will be under review, however. Rabuka said Chinese diplomats have accepted his decision.

China’s recent investment in the Solomon Islands has attracted attention across the region, and leaders of many South Pacific Island countries are worried that China’s growing influence will lead to the erosion of their democracy and values. Rabuka reminded leaders of relevant countries to be vigilant and consider the price they will have to pay for accepting Chinese investment. Fiji’s decision will likely lead neighboring countries to examine their options in the geopolitical tussle between the United States and China. It appears that China’s policy of using economic aid to promote influence has begun to show cracks.

Source: RFA, March 29, 2024
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/ec-03292024033831.html

Lianhe Zaobao: China Bans Government Use of Intel and AMD Chips

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that China is reportedly phasing out the use of U.S. chips and operating systems for government computers.

Following official procurement standards released last year, Chinese officials are winding down the use of Intel and Advanced Micro Devices (AMD) components in government computers and servers. At the same time, China is also trying to eliminate the Microsoft Windows operating system and foreign-made database software in favor of domestic software. State-owned enterprises are required to complete the transition to domestic technology by 2027.

China’s Ministry of Finance and the Ministry of Industry and Information Technology released seven government procurement standards on December 26 last year. They clearly required that the Communist Party and government agencies at or above the township level comply with the standard of “safety and reliability.” On the same day, China’s Information Security Evaluation Center announced the first list of “safe and reliable” processors and operating systems. All of the recommended processors and operating systems are produced by Chinese companies, including Huawei and Phytium.

In the context of the China-US technology war, China has continuously encouraged government agencies to use domestically produced tech products in recent years. In 2022, government agencies and state-owned enterprises were asked to replace foreign-brand computers with domestic equipment. Mandates for equipment replacement at that time did not include hard-to-replace components such as processors, however. In addition to computers, China is also requiring employees in government agencies and state-owned enterprises to switch to domestically produced mobile phones. As of December last year, at least 10 provinces, including Beijing, Tianjin, Zhejiang, Guangdong, and Jiangsu, had implemented such requirements.

Source: Lianhe Zaobao, March 24, 2024
https://www.zaobao.com.sg/news/china/story20240324-3209230

Xinhua: U.S. and Japan Plan Largest Upgrade of Security Alliance in Over 60 Years

Xinhua recently reported that the United States and Japan are planning to counter China by implementing the biggest upgrade to their security alliance since they signed a security treaty in 1960. According to five people familiar with the matter, U.S. President Joe Biden and Japanese Prime Minister Fumio Kishida will announce plans to reorganize the U.S. military headquarters in Japan during Kishida’s visit to the United States in April. The goal is to strengthen combat planning and joint military exercises.

Currently, the Japan Command of the U.S. Forces, based at Yokota Base, does not have command authority over the U.S. Navy’s Seventh Fleet or the Marine Corps stationed in Okinawa. The command of these forces lies with the U.S. Indo-Pacific Command in Hawaii. It is expected that after the planned upgrade, command authority of the aforementioned forces will still be retained by the Indo-Pacific Command, but authority of the Japan Command will increase. It will gain more authority in U.S.-Japan joint military exercises, intelligence sharing, supply dispatching, and coordination with the Unified Operations Command of Japan’s Self-Defense Forces.

In recent years, the United States and Japan have been promoting military cooperation between the two countries, publicly stating that the move is aimed at countering China. U.S. Defense Secretary Austin claimed in June of last year that the U.S. and Japan were working hard to further modernize military relations in order to prevent China’s so-called “coercive behavior.”

Source: Xinhua, March 25, 2024
http://www.news.cn/mil/2024-03/25/c_1212345412.htm

CNA: China’s Personal Income Tax Revenue Fell Significantly in First Two Months of 2024

Primary Taiwanese news agency Central News Agency (CNA) recently ran a story on statistics released by China’s Ministry of Finance. According to the data, Chinese tax revenue during the first two months of 2024 saw a year-over-year decrease of four percent, and personal income tax revenue suffered a significant reduction of 15.9 percent.

“Personal Income Tax Revenue Decline” quickly became a hot topic on Chinese social media, with more than 170 million topic views on Weibo. In online discussion boards, consensus has emerged among a majority of netizens that the driving reasons behind the decline in personal income tax revenue are lowered wages and widespread layoffs.

In China, generally speaking, those with an annual salary of less than RMB 100,000 yuan (US$14,000) do not need to pay personal income tax. Some experts pointed out that China’s post-COVID economic recovery in 2023 was not as strong as expected, and some companies reduced or did not pay year-end bonuses to employees. In addition, some foreign trade companies have seen business volume fall and staff salaries reduced.

Chinese government officials are optimistic regarding the rest of the year, expecting personal income tax revenue for the whole of 2024 to increase by about 6.3 percent compared with 2023.

Source: CNA, March 22, 2024
https://www.cna.com.tw/news/acn/202403220330.aspx

Lianhe Zaobao: South Korean Direct Investment in China Drops Sharply

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported on data released by South Korea’s Ministry of Finance showing that South Korea’s 2023 new direct investment in China dropped by 78.1 percent year-over-year, falling to US$1.87 billion. This is the largest decline in South Korean direct investment in more than 30 years, and it is the first time since 1992 that China has failed to rank among South Korea’s top five destinations for investment. The manufacturing sector  led the decline in investment.

The declining numbers reflect China’s changing role in South Korea’s economy as Washington seeks to reduce Beijing’s influence on global supply chains. The United States is about to replace China as South Korea’s largest export destination, importing products ranging from semiconductors to automobiles. South Korean companies have extensive exposure to key sectors in the U.S. and have been seeking to increase investment there to take advantage of the United States’ market scale and  government subsidies.

According to statistics from the Korea International Trade Association, China’s imports from South Korea last year were US$162.5 billion, a sharp drop of 18.8 percent from the previous year. This led to a US$18 billion trade deficit between South Korea and China, the first trade deficit seen during the 31 years since the establishment of diplomatic relations between China and South Korea.

Source: Lianhe Zaobao, March 15, 2024
https://www.zaobao.com.sg/realtime/world/story20240315-3160390

RTI: Japanese Company Bridgestone Closes Shenyang Factory

Radio Taiwan International (RTI) recently reported that Bridgestone, Japan’s largest tire manufacturer, announced the closure of its factory in the Chinese city of Shenyang. The company also plans to terminate the production and sales of commercial vehicle tires in China during the first half of 2024. The Bridgestone Group has been operating in China for more than 20 years. Bridgestone closed its tire factory in Huizhou, Guangdong Province at the end of 2021 and transferred production capacity and equipment to Shenyang.

Japan was the first country to have foreign businesses enter China during the modern era. In recent years, foreign companies, including many from Japan, have withdrawn from the Chinese market. Experts have said that Japan is a “weathervane” for foreign investment in China, and that foreign business withdrawals from China are now accelerating. This is quite inconsistent with the Chinese government’s messaging around business-friendliness. Since last year, world-renowned companies including Japan’s Canon, SONY, Toshiba, Nikon and South Korea’s Samsung have withdrawn from China, affecting tens of thousands of Chinese employees.

Source: RTI, March 15, 2024
https://www.rti.org.tw/news/view/id/2199093

Lianhe Zaobao: Moody’s Downgrades Vanke’s Rating to Junk Status

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that international rating agency Moody’s has downgraded Chinese real estate giant Vanke’s credit rating to junk status. Moody’s warned of further downgrades in the future.

The downgrade reflects Moody’s expectation that Vanke’s credit metrics, financial flexibility and liquidity buffers will weaken over the next 12 to 18 months. The company’s contracted sales are declining amid a prolonged downturn in China’s housing market, and uncertainty over financing channels is increasing day by day.

The move by Moody’s may further weaken the world’s confidence in China’s real estate market. Vanke is usually recognized as the third largest real estate company in China, and it was one of the few developers in China with an investment-grade credit rating. Vanke is known to have strong government backing.

Currently, S&P Global Ratings and Fitch Ratings still maintain a non-junk rating for Vanke. Chinese regulators reportedly met with financial institutions to ask major banks to step up financing support for Vanke and called on bondholders to discuss debt repayment extensions with Vanke. However, not long ago, Vanke was rejected after seeking permission from insurance companies to defer debt repayments.

Source: Lianhe Zaobao, March 12, 2024
https://www.zaobao.com.sg/realtime/china/story20240312-3143019