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Xi Jinping Inspects “Chips” Industry: “In the Past, by Tightening Our Belts, We Built Two Bombs and One Satellite!”

On April 26, while visiting the Wuhan Fiber Home Technologies Group, Xi Jinping said, “The optical communications industry is very important. To build a nation that is an Internet power, we need to accelerate the pace and quickly occupy some commanding heights.”

“In the past, by tightening our belts and gritting our teeth, we built ‘two bombs and one satellite!’” Xi said, (referring to a Mao-era weapons development program), “This was because we made the best use of the socialist system — we concentrated our efforts to get great things done. The next step is to do the same with science and technology. We must abandon fantasy and rely on ourselves.”

On the morning of the April 26, Xi Jinping went to the Wuhan Xinxin Integrated Circuit Manufacturing Co., Ltd. to look at the integrated circuit production line. Xi said, “in order to realize the ‘bicentennial goal (by 2050),’ we must overcome difficulties on our own so as to have some major core technologies. We have unprecedented opportunities and are facing unprecedented challenges.”

Source: Xinhua, April 26, 2018

Chinese Academician of Engineering Ni Guangnan Discusses the Lesson China Has Learned from the China-U.S. Trade Dispute

Will the United States launch a cold war of science and technology against China? Recently, in China, due to trade disputes between China and the United States, in many circles, independent innovation in the area of science and technology has become a topic of intense discussion. Why must China have the core technology of the information industry? Where is the road for China’s semiconductor chips? On April 30, a reporter from the Global Times conducted an exclusive interview of Ni Guangnan, an academician from the Chinese Academy of Engineering. Ni stated that China should learn this lesson: Do not expect the U.S. to sell its core technologies. The interview follows:

Global Times: The topic of Chinese chips has sparked an upsurge. The speed of the financing and launching of the project has accelerated significantly. How do you see this phenomenon? Any suggestions?

Ni: This is definitely a very good phenomenon. It shows that, from the government to the enterprises, they have all determined to break through.

In the international chip industry, the monopoly of oligarchs has long been formed and it is very difficult for small businesses to survive. In the end, ones developed chips might become useless. When it is necessary to break the monopoly, China cannot rely entirely on market laws; otherwise we cannot enter. Our country has always had the advantage of concentrating its efforts on doing big things. This advantage should be used well. After all, our investment is still too small compared to the international oligarchs in the chip industry.

Global Times: Why do we have to make our own chips and operating system? Many countries in the world do not have these core technologies.

Ni: It depends on what the goal of our country is. If it feels that it is enough to be a big country on the Internet, then we do not need to pursue any core technology. However, our goal is to become an Internet powerhouse. If we do not develop our own core technology, other countries will not let us catch up.

In short, about some things, if we feel they are inevitable, then early determination is better than late determination. Using the Beidou system as an example, we decided to develop it more than a decade ago. Now the Beidou system is very useful. If we had determined to engage in chip manufacturing more than a decade ago, we might already have our own chips and we wouldn’t be stuck with their sanctions.

Source:, May 2, 2018

Chinese Government Orders Expansion of Soybean Cultivation as a Political Task

In recent days, many provinces and cities in the northeastern region have issued emergency notices requesting the expansion of soybean planting areas. “(We should) treat the expansion of soybean planting area as the primary political task for current agricultural production.” At present, relevant documents in Heilongjiang Province and Changchun City of Jilin Province have been deleted from the official website.

According to the documents obtained by the Economic Observer Online reporter, on April 29, the Agricultural Committee of Heilongjiang issued an “Emergency Notice to Expand the Soybean Planting Area of the Province.” It stated that “the central government issued a directive asking our province to increase the soybean planting area by 5 million acres this year.” The task was assigned to a total of 15 cities, regions and agricultural forestry departments in the province.

Another document on April 28 from the Agricultural Committee of Changchun City, Jilin Province was the “Notice on Releasing the Soybean Planting Area of the Province in 2018.” The document requires the task of planting soybeans in the province be assigned to the city. It is to be fully completed and the project is to be effectively implemented.

The notice in Changchun City stated that “the relevant counties (cities) must take the initiative, actively shoulder the responsibility, and take the expansion of the soybean planting area as the primary political task for current agricultural production.”

Source: Economic Observer Online, May 3, 2018

Zhu Chenghu: China and the United States Will Compete in Three Areas

Major General Zhu Chenghu, former deputy director of the Institute of Strategic Studies, National Defense University of China, wrote an article commenting on the competition between China and the U.S. In the article, he stated:

“The pattern of Sino-U.S. relations is based on a comparison of power between China and the U.S. The overall trend regarding Sino-U.S. power is the contrast between China’s rise and the United States’ relative decline. At present, this trend remains the same. Moreover, for a long time into the future, it will not change.

“We can see that Trump’s series of international claims, including the forthcoming North Korea-U.S. talks and the launch of a tough policy involving Taiwan, are all preparing for a second term. Therefore, during this period of time, Sino-U.S. relations are not very pessimistic. That is because Trump is a businessman who cares about interests the most. There are too many interests to be exchanged between China and the United States. However, seven years ago, the author expressed a not so optimistic view about Sino-U.S. relations. Now, from a long-term perspective, it is even less optimistic. The showdown between China and the United States is the general trend. Judging from this, the future competition between China and the United States may be concentrated in the following three main areas.

“First, the Taiwan issue will become very prominent. “For the settlement of the Taiwan issue, China has far more means than it had in the past and the current leaders’ determination is much stronger than it was in the past.

“Second, there are both apparent and insidious issues in the security field.“ In addition to considerations about Taiwan, the more important security issue is the Korean peninsula. In this regard, everyone can calm down and maintain one’s cool. This is an issue in which no one can get a result from talks. With regard to the highly regarded DPRK-U.S. summit meeting, the difficulties that the two sides actually have to overcome are unimaginable. The main goal of Trump’s gesture is still to prepare for the general election.

“The last issue is the South China Sea. At present, there is only so much that the United States military can show. We have yet to see further provocations. However, there is a hidden problem in the field of security that cannot be ignored: the arms race between China and the United States.

“The Chinese are often not willing to use the term but this is an objective reality. Since the 1996 Taiwan Strait crisis began, an arms race has been going on between China and the United States. In this regard, China must choose its direction and focus on its key points. That is, China has enough means available so the United States will not dare to intervene in the conflict in the Taiwan Strait. There is no reason for China to compete with the United States to seek superiority. This is also impossible.

“Third, actions behind the scenes in the financial sector are the most worrisome problem.

“The most important thing for Sino-U.S. competition in the financial sector is the internationalization of the renminbi. What Americans worry about the most right now is not the trade issue.

“The internationalization of the renminbi is a fundamental challenge to the United States. Therefore, on this issue, China must make enough ideological preparations. Also, in the process of expanding China’s overseas interests, it needs to be adequately prepared. This is a challenge involving geo-strategic patterns and will exist for a long time.”

Source:, April 12, 2018

A Look at the Global Times’ Editorials on the Trade War with the United States

• 社评:如果美国都亏了,世界还有谁是赚的2018-04-05
• Editorial: If Even the United States Has Been Losing Money, Then Who Else Is Making Money? 04/05/2018

• 社评:中国重拳回击,美方带着痛苦反思吧2018-04-04
• China Fights Back with Heavy Fists; Let the U.S. Reflect on Its Pain 04/04/2018

• 社评:反击美方新攻势,专找它的七寸打2018-04-04
• Counterattack the U.S. New Offensive Move; Hit It Where It Hurts the Most 04/04/2018

• 社评:立威被北京戳破,华盛顿应该反思2018-04-04
• Beijing Pricked the (U.S.) Power Display; Washington Should Rethink (Its Actions) 04/04/2018

• 社评:美企在华分公司是美出口统计灯下黑2018-04-03
• U.S. Export Statistics Overlooked the Sales at the China Branches of U.S. Companies  04/03/2018

• 社评:中国报复美加征关税落下实锤2018-04-02
• China Punches Back against U.S. Customs. Tariffs are at the Center of the Target 04/02/2018

• 社评:华盛顿有“知识产权遭侵犯”妄想症2018-03-30
• Washington Is Paranoid about “Infringements on Intellectual Property Rights” 03/30/2018

• 社评:加拿大被揪耳朵上台为美国捧哏2018-03-30
• Canada Was Forced to the Stage to Sing with the United States 03/30/2018

• 社评:美方作用力越大,中方反作用力越强2018-03-28
• The Greater the U.S. Forces, the Stronger the Chinese Counter Forces 03/30/2018

China Review News: The Philippines Sets an Example for ASEAN Countries of How to Balance China-U.S. Relations

China Review News, one of China’s state controlled media in Hong Kong, published an article to propose that the countries of ASEAN (The Association of Southeast Asian Nations) should follow the Philippine’s example in balancing China-U.S. relations, which is to lean towards China. The article said, “Southeast Asian countries are under increasing pressure due to geopolitical competition between China and the United States. They must choose between China’s economic advantages and the U.S. security umbrella. However, the Philippines may be showing other countries the way out of this dilemma.”

The article referred to a New York Times publication to emphasize the point. It said, “So far, Duterte’s strategy (for the Philippines) and its results have shown other countries a “way out” if they have the political courage and domestic support to emulate the Philippines.” “The Philippines suddenly changed from a staunch American ally to a more independent and neutral position between the United States and China. So far, the Philippines has benefited from better relations with China. At the same time, it has maintained military relations with the United States, although its relations are not as firm as they were previously.”

Source: China Review News, April 5, 2018

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