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Beijing News: CADA Estimated Major Loss in China’s Automobile Market

Beijing News reported that China Automobile Dealers Association (CADA) recently submitted to the Chinese government an emergency market study named “Urgent Report on the Current Financial Difficulties and Risks of Closure Faced by Car Dealers.”

The Report indicated that, in recent times, CADA has received reports from a large number of member companies that the drastic changes in the Chinese domestic automobile market brought by the continued price war and other factors have left automobile dealers in a quagmire and facing the outstanding problem of extremely tight capital liquidity. CADA estimated in the first eight months, the price war caused the overall retail sales of the new car market to lose a total of RMB 138 billion yuan (around US$19.7 billion). The Report also mentioned that, at present, car dealers are experiencing large-scale losses in new car sales. They are generally operating with cash flow deficits and rapidly increasing risk of capital chain disruption. Car dealers are struggling for their survival, and the overall discount rate for the new car market reached 17.4 percent in August.

CADA called on the government to pay extra-close attention to the current financial difficulties and shutdown risks faced by the automobile dealership sector, and decisively adopt phased financial relief policies and measures to effectively prevent the occurrence of systemic landslide failures. The association especially called for more supportive and flexible loans from financial institutions.

Source: Beijing News, September 23, 2024
https://www.bjnews.com.cn/detail/1727081393129918.html

Briefings | | |   Economy/Resources

Chinese Scholars’ Deleted Article Condemns ‘Patriotic’ Violence After Japanese Boy’s Murder

The stabbing death of a Japanese schoolboy in Shenzhen sparked controversy in China. Two Chinese scholars, Zhao Hong and Chen Bi, published an article condemning violence under the guise of “patriotism” and urging people to speak up against such acts. However, their article was quickly deleted.

The scholars drew parallels to a similar attack on a Japanese school bus in Suzhou less than three months prior. They argued that attributing these killings to “frenzied populism” or “irrational hate education” does not justify or excuse such barbaric acts.

The article emphasized that defending savagery and brutality desecrates civilization and life. It called for severe punishment of violent crimes and criticized silence as tacit approval of violence and disregard for victims.

The authors expressed concern over the misuse of “patriotism” to justify crimes, from harassing people wearing kimonos to attacking innocent children. They stressed that remembering historical Japanese aggression should not lead to more killings and brutality.

The article advocated for not tolerating violent propaganda under the banner of patriotism and warned against using hatred to commemorate history. It urged people to maintain common sense and conscience as weapons to defend civilization.

The scholars noted the current hostile online environment in China towards Japan and the difficulty in expressing dissenting views. They concluded by stating that remaining silent in the face of such tragedy makes everyone complicit.

Source: Central News Agency (Taiwan), September 23, 2024
https://www.cna.com.tw/news/acn/202409230197.aspx

Briefings | | |   Geo-Strategic Trend

China Prepares for Future Conflicts Starting with Children’s Education

China is intensifying its national defense education, starting from primary school through university, according to a recent report by French newspaper Libération. This move aims to instill discipline and patriotism in the younger generation, preparing them for potential future conflicts.

The revised national defense education law introduces a tiered approach:

– Primary school students will receive basic defense awareness
– Middle school students will learn fundamental knowledge and skills
– High school and university students will undergo mandatory military training

The People’s Liberation Army (PLA) will collaborate with the education department to conduct military drills, including shooting exercises, in high schools and universities. PLA branches are set to establish a presence in educational institutions across the country.

Reports indicate that some schools in Guangxi and Fujian provinces have already organized exercises using automatic rifles and rocket launchers. Even kindergarteners are being exposed to military culture through visits to army camps.

Universities are taking it a step further by conducting practical training with advanced equipment like drones and rocket launchers. The government is actively encouraging graduates in fields such as chemistry, missile technology, radar, and weapons engineering to join the PLA.

While China maintains a largely voluntary conscription system, this new approach mirrors the public military education systems seen in Russia and North Korea, incorporating mandatory training.

These developments, along with the PLA’s new recruitment guidelines adopted in May 2023, suggest that Xi Jinping’s regime is focusing on “preparing for war.” The national defense education reform is part of a broader strategy, which includes recent laws on anti-espionage and foreign investment, demonstrating Beijing’s comprehensive approach to addressing potential security threats.

Source: Radio France International, September 24, 2024
https://rfi.my/Az9e

Briefings | | |   Defense/Military

Chinese Universities Push Undergrads Towards Postgraduate Studies Despite Oversupply Concerns

In a surprising trend, Chinese universities are actively encouraging their undergraduate students to pursue postgraduate degrees, even as concerns mount over an oversupply of postgraduates and rising youth unemployment rates.

Recent reports indicate that several institutions across China have been holding “graduate school motivation meetings” aimed at inspiring students to apply for advanced degrees. This push comes despite a growing phenomenon where some universities are experiencing a “reversal,” with postgraduate students outnumbering undergraduates.

At Taizhou University’s Marxism School, officials emphasized that future secondary school teachers will primarily need postgraduate qualifications. Meanwhile, the School of Electrical Power at Shenyang Institute of Engineering urged students to consider postgraduate studies as a means to enhance their competitiveness in the job market.

Taking this trend a step further, the vice president of Shandong Taishan University called for mobilizing all undergraduate students to view postgraduate education as a significant opportunity for personal development. The university plans to create a “positive graduate school ecology” through various motivational activities and personalized guidance for aspiring postgraduate students.

To support this initiative, universities are offering an array of incentives, including financial aid, mentorship programs, specialized guidance, and improved study environments for those pursuing advanced degrees.

However, this aggressive promotion of postgraduate education raises questions about its long-term impact on China’s job market and educational landscape, particularly in light of the country’s already high youth unemployment rate and the existing oversupply of postgraduates in certain fields.

As this trend continues to unfold, it remains to be seen how it will affect China’s education system and labor market in the coming years.

Source: Central News Agency (Taiwan), September 22, 2024
https://www.cna.com.tw/news/acn/202409220178.aspx

Briefings | | |   Economy/Resources

Chinese Naval Ship Displays Cannons Near Malaysian Oil Platform

The Chinese Communist Party (CCP) uses its “Internet Army” to publish articles promoting its political positions. A recent article posted on Chinese platform Net Ease stated that a Chinese Frigate ship had recently intimidated Malaysia.

“There’s been another incident in the South China Sea, but this time it’s not the Philippines — it’s Malaysia.” The article stated that Malaysia had been “secretly engaged in ‘stealing oil’ in the South China Sea.”

“However, in Chinese waters, you can’t just do as you please,” the article said. “The People’s Liberation Army responded swiftly, dispatching a 1,000-ton 053H3-class frigate and Coast Guard vessels to the area, with the frigate’s main guns on display. This was China’s practical response: any actions that infringe on China’s rights in the South China Sea will be met with a strong counterattack.”

Source: Net Ease, September 19, 2024
https://www.163.com/dy/article/JCDVNPIR05568UZV.html

Briefings | | |   Geo-Strategic Trend

China’s Sees Lower-Than-Usual Mooncake Sales During Mid-Autumn Festival

The Mid-Autumn Festival is a Chinese festival where people celebrate by eating mooncakes. The holiday is usually China’s peak season for gift-giving. This year, the market for mooncakes in mainland China is particularly sluggish. According to the China Bakery and Confectionery Industry Association, mooncake sales are projected to decline by 2 billion yuan (US$ 280 million) compared to last year. Some market analysts have labeled this as the “coldest Mid-Autumn Festival in history.”

An article on Yahoo Finance listed three reasons for this to happen:

  1. With the mainland economy struggling, corporate gift-giving this year has completely dried out, especially in the four major “gift-giving industries”: real estate, construction, building materials, and finance. These sectors have realized that “relying on mooncake gifts isn’t bringing in business.”
  2. Family gift-giving has also decreased significantly due to reduced consumer spending power. In an environment of consumption downgrade, consumers are opting for lower-priced, homemade mooncakes with simpler packaging.
  3. Also young people are increasingly seeking healthier diets, and traditional mooncakes, which are high in oil and sugar, are viewed as unhealthy.

Source: Yahoo Finance, September 16, 2024
https://hk.finance.yahoo.com/news/史上最冷中秋？月餅滯銷-市場盤點三大終極原因-042821633.html

Briefings | | |   Economy/Resources

Chinese Ambassador to the U.S. Lays Down Four “Red Lines” That U.S. Should Not Cross

According to the website of the Chinese Embassy in the U.S., China’s Ambassador to the U.S. Xie Feng delivered a keynote speech at the Vision China event on Sep 12. He stated that China has drawn four “red lines” [that the U.S. should not cross]. These particularly sensitive areas for the CCP are:

  • Taiwan,
  • (China’s record on) democracy and human rights,
  • (China’s institutional) path and system, and
  • (China’s) right (to economic development).

Xie said that, among these, the Taiwan question is the “most paramount in China-US relations and must not be crossed.”

He stated that “the notion of ‘democracy versus authoritarianism’ is a fallacy. China’s political system and development path are non-negotiable, and the legitimate rights of the Chinese people to have a better life must not be deprived.”

Radio France International reported that Xie also remarked that the attempt to completely decouple China and the U.S. is a “fantasy,” and viewing each other as new Cold War rivals is the “greatest strategic misjudgment of the 21st century.” He warned that a conflict between China and the U.S. would be an “unbearable burden for the world.”

He stated that “no conflict, no confrontation” is the bottom line for both sides to uphold.

Source: Radio France Internation, September 13, 2024
https://www.rfi.fr/cn/中国/20240913-中国对美划出四道红线-台湾，人权，制度与发展权

Briefings | | |   US-China Relations

Lianhe Zaobao: The Philippines Does Not Plan to Withdraw U.S. Typhon Missiles

According to Singapore’s primary Chinese language newspaper Lianhe Zaobao, Philippine International Security Advisor Eduardo Ano stated that The Philippines currently has no plans to withdraw the Typhon medium-range missile system deployed by the United States in the northern Philippines. He said the Philippine authorities plan to purchase medium-range missiles in the future and currently use the Typhon system for military training. Reuters also reported earlier that, although China clearly opposes the deployment of intermediate-range missile systems by the United States in the Philippines, the U.S. currently has no plans to immediately remove the Typhon system. Ano said there is no specific timetable, and the decision will be made by a panel of officials from the Philippines and the United States.

Satellite images show the Typhon system stays at Laoag International Airport in Ilocos Province, northern Philippines, close to the Taiwan Strait and facing the South China Sea. Ano said “we need to understand how to operate the system because we intend to purchase this type of equipment in the future.” China’s Foreign Ministry expressed serious concern earlier over the Philippines’ plan to maintain the Typhon system. Ano responded that: “we know what is in the best interests of the country and therefore no one has the right to dictate to us, especially when it comes to the deployment of missile launchers.”

In April, the US military deployed the latest land-based Typhon Weapons System the Philippines for military exercises with the Philippines. The system can be equipped with the Standard 6 Supersonic Missile with a range of 450 kilometers as well as the Tomahawk cruise missile with a maximum range of over 1,600 kilometers, which is enough to hit targets in China.

Source: Lianhe Zaobao, September 20, 2024
https://www.zaobao.com.sg/realtime/world/story20240920-4796861

Briefings | | |   Defense/Military Geo-Strategic Trend