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Briefings - 110. page

Fact Check: Beijing Gave Money to Attract Countries to Switch Diplomatic Ties from Taiwan to Itself

On March 27, China’s Foreign Ministry spokesperson Mao Ning claimed that China didn’t use money to influence or, in fact, to buy diplomatic relations with Honduras. Honduras cut its ties with Taiwan (the Republic of China) and established relations with Beijing (the People’s Republic of China) on March 26. Mao further claimed that there were no preconditions for Panama or any other country when they established relations with China in the past few years.

Radio Free Asia, however, did a fact check and found that Beijng’s claim was false. RFA concluded, “The People’s Republic of China has indeed set preconditions for establishing diplomatic relations with China and has provided a large amount of economic and non-economic assistance and incentives to attract countries if they would break off diplomatic relations with Taiwan.”

For example, Costa Rica established relations with Beijing in 2007. China committed to provide US$30 million in cash within two years of the establishment of diplomatic relations and an additional US$100 million to be delivered through China’s regular “turn-key” program.

Panama established relations with Beijing in 2017. Since then, China has provided US$1.86 billion in infrastructure and other investments to Panama. Beijing also donated US$143 million to Panama after establishing their relationship. It didn’t disclose the donation because it didn’t want to give the impression that “they pay a price (for countries) to break off from Taiwan.”

The Dominic Republic established relations with Beijing in 2018. From 2019 to now, China has provided US$490 million in infrastructure and other investments to the Dominic Republic. The research estimated that Beijing provided US$3 billion in financial aid to the country. China also donated US$30 million in 2021.

During the year when El Salvador established diplomatic relations with Beijing in 2018, Beijing provided El Salvador more than 3,000 tons of rice and pledged US$150 million in aid.

Immediately after the establishment of diplomatic relations in 2021, China pledged to donate one million doses of COVID vaccine to Nicaragua. In addition, Beijing reportedly provided an unspecified amount of supplies to the Nicaraguan police riot squad, where the Nicaraguan police force is led by the father-in-law of Daniel Ortega, the dictatorial President of the country.

It is not clear how much Beijing provided to Honduras to get it to switch sides. Reuters reported that before switching to Beijing, Honduras asked Taiwan for US$2.5 billion in aid which its Foreign Minister Eduardo Enrique Reina called “not financial aid” but a “negotiated refinancing mechanism.”

Source: Radio Free Asia, April 21, 2023
https://www.rfa.org/cantonese/news/factcheck/internationalrelations-04212023141728.html

Briefings | | |   @CS Economy/Resources Geo-Strategic Trend

The Overtime Phenomenon in China

Working overtime has become a common phenomenon in China. IT companies even have the “996” work style (work from 9 am to 9 pm for 6 days a week). An Internet article provided an analysis of the “China-style overtime.” It said that according to China’s National Bureau of Statistics, Chinese workers work on average 2,272 hours a year (or 9.2 hours per day). It listed eight characteristics of this “China-style overtime.”

  1. Overtime is usually forced though it may be called “voluntary.”
  2. Overtime usually applies to all employees (and therefore people won’t benefit from it since it is required of everyone).
  3. Overtime workers’ hours are usually unpaid or insufficiently compensated.
  4. Overtime in many instances occurs over a long term and is of a high intensity.
  5. Overtime can just be a formality and the work is not efficient.
  6. Overtime is a result of management’s lack of capability or low efficiency.
  7. Overtime sometimes is a vehicle to please the upper management or to suppress subordinates.
  8. Overtime may morph into a test of an employee’s obedience.

Source: China Digital Times, April 24, 2023
https://chinadigitaltimes.net/chinese/695261.html

Briefings | | |   Economy/Resources

Why Do Countries Choose Renminbi in Bilateral Trade?

Recently some countries such as Russia, North Korea, and Brazil agreed to the use of Renminbi (RMB) jn settlements in bilateral trade with China. Economist Yin Hetian gave three reasons for their decision:

The first is a political reason: Countries such as Pakistan, Laos, Cambodia, North Korea, and Iran receive financial support from Beijing. For this reason, they feel they are compelled to accept the RMB when exporting to China. However, there is not much for China to gain in this, since these countries “suck China’s blood.”

 

The second is the discounted goods from China. Russia and Brazil provide energy resources to China and have a trade surplus over China. China sells them goods of daily necessities, which they can also buy from other countries using the U.S. dollar. Therefore, China must sell its goods at a discount.

The third is China’s US dollar reserve. Those countries feel comfortable about the RMB because of China’s foreign reserve of 3 trillion US dollars. They put their dollar reserve in a different format: holding the RMB which links to China’s dollar reserve. If China’s dollar reserve is gone, then no one will want to take RMB.

Source: China News Center, April 24, 2023

失去庞大美元外汇储备支持 人民币在国际上就是废纸；说人民币能够取代美元的大外宣实际上是在害中国只有习近平不懂罢了

Briefings | | |   Economy/Resources Geo-Strategic Trend

Suicide Cases Are More Frequent In China

Suicide cases have been reported more frequently as the political and economic environments continue to deteriorate in China under the Chinese Communist Party’s (CCP’s) rule.

On April 25, a male from Linyi City, Shandong Province bought a knife at a convenient store and then cut his own throat right there.

On April 23, a man jumped out of a shopping mall in Shanghai and died. His body also hit and injured a woman who was shopping at the mall.

On the same day, two 5th grade girls from Xiangtan City, Hunan Province jumped out of a high building.

On April 20, three people came to a tourist site in Shifang City, Shandong Province and drank poison to commit suicide.

On April 4, four people from different provinces gathered at Zhangjiajie, Hunan Province, a famous mountainous site in China, took poison and then jumped off the cliff.

Source: Aboluowang.com, April 27
https://www.aboluowang.com/2023/0427/1894748.html

Briefings | | |   Social Stability

China Pilot Project: Paying Salaries with Digital Currency

China has been piloting the use of a digital currency issued by the state. Recently Changshu City, Jiangsu Province announced that, starting in May, it will make the salary payments for people working in the public sector in digital currency. The first pilot city to do so was Taichang City, also in Jiangsu Province, in July of last year. China has also started piloting digital currency and a digital wallet in 26 regions among 17 provinces.

Some people feel that digital currency can help prevent bribery or improper income. However, there are concerns about privacy and whether the government can use it as a weapon to suppress the people it wants to target.

Sources:
1. China.com, April 25, 2023
http://news.china.com.cn/2023-04/25/content_85251374.shtml
2. Central Network Agency, April 22, 2023
https://www.cna.com.tw/news/acn/202304220117.aspxApril 22, 2023

Briefings | | |   Economy/Resources

Chengdu Demolished Its 40-Billion-Yuan Green Way to Change the Land Back to Grow Crops

China used to call for a “green environment (绿化)” and promoted “turning farmlands back into forests (退耕还林).” However, it has now made    a 180 degree turn to stress growing more crops, or to “turn forests back to farmlands (退林还耕),” as it faces a shortage in its food supply both domestically and internationally.

Chengdu residents complained that some portions of the green beltway surrounding the city, which the city spent 40 billion yuan (US$ 6 billion) on  building has since been demolished and replanted with wheat. Even some parks have  been changed in order to grow crops, whereas the parks were once a big selling point for the nearby apartments.

A researcher also reported that village officials have been forced to take land back in order to grow crops. In some mountain areas, the local government encouraged peasants to build orchards. However, after people put all their savings into planting fruit trees, the government is now asking them to cut all the trees to grow crops.

Source: Epoch Times, April 25, 2023
https://www.epochtimes.com/gb/23/4/25/n13980976.htmi

Briefings | | |   Economy/Resources

Hainan Releases Rules for Overseas Higher Education Institutions, Limiting them to STEM and Agriculture Programs

China has issued regulations allowing foreign universities and vocational schools to establish independent schools in the Hainan Free Trade Port, but only in the fields of science, engineering, agriculture, and medicine, and they must offer courses on the Chinese constitution and the country’s situation. The rules, jointly issued by the Ministry of Education and the Hainan provincial government, allow foreign institutions that have an independent legal personality to set up schools in the region. Unlike existing Sino-foreign cooperative schools, foreign universities and vocational schools are not required to collaborate with Chinese educational institutions to establish schools in the Hainan Free Trade Port. Other organizations or individuals inside and outside China can participate in education by providing resources such as land, buildings, and funds. In terms of governance, the decision-making body of the school, which includes the president of the school, the head of the party organization, and representatives of faculty and the public, is represented by the foreign higher education institution.

According to the regulations, the school should provide courses on the Chinese constitution, law, civic morality, and the country’s situation, as well as comply with China’s public welfare principles and not harm China’s national sovereignty, security, and social public interests. The regulations also require the introduction of foreign high-level education institutions with good academic reputations and high international visibility, as well as with advantages in the fields of science, engineering, agriculture, and medicine, and whose graduates have good employment quality and positive industry evaluations. The school should have Chinese Communist Party activities in accordance with relevant national regulations. The regulations went into effect on March 24, 2022.

Source: Central News Agency (Taiwan), April 23, 2023
https://www.cna.com.tw/news/acn/202304230097.aspx

Briefings | | |   Economy/Resources

China Fully Implements Unified Property Registration; Property Tax Likely on the Horizon

China has announced that it has completed the unified registration of real estate. This means that from urban housing to rural homesteads and from real estate to natural resources, all real estate property rights within China’s national territory have been registered in a unified manner. However, concerns have been raised that the unified registration system may facilitate the government’s accurate knowledge of property ownership information, becoming a basis for determining the tax rate and collection of “property taxes.” It is an indication that the introduction of property taxes may be getting closer.

The goal of the unified registration system is based on the Civil Code of China, with the “Interim Measures for Real Estate Registration” as the core, as well as the supporting implementation rules, operating norms, local regulations, and other aspects of the real estate unified registration system. The reform task of “four unifications” for registration agencies, registration books, registration bases, and information platforms have been accomplished.

According to statistics, over the past decade, China has issued more than 790 million real estate ownership certificates. The unified registration system is expected to provide basic data support for the collection of property taxes and facilitate the government’s accurate grasp of property rights information. However, some Chinese financial, real estate, and public figures believe that the move will improve the operability of property tax collection, indicating that the introduction of property taxes may be getting closer. Property taxes have been viewed as a variable affecting China’s housing market and a burden on homeowners.

Source: Central News Agency (Taiwan), April 25, 2023
https://www.cna.com.tw/news/acn/202304250327.aspx

Briefings | | |   Economy/Resources