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Briefings - 111. page

Seniors to the Rescue of China’s Housing Market

The Chinese government is attempting a variety of measures to rescue the sinking housing market. There was a story that banks in Nanning city of Guangxi province have increased the age ceiling for mortgage applicants to 80, and shortly afterwards, banks in Beijing raised the limit to 95.

A local newspaper, Beijing News reported that a branch of the Bank of Communications allows the mortgage applicants to be as old as 95 years of age, with the condition that the applicant’s children guarantee the loan and that the borrower’s pension and the monthly income of the guarantor are at least twice the monthly mortgage payment.

A researcher at the Bank of China said the banks’ practice of extending the age of applicants for mortgages reflects the changing demand for housing from a population that is aging. The policy is aimed to help “stimulate demand” in the current sluggish housing market in China.

Source: Central News Agency (Taiwan), February 19, 2023
https://www.cna.com.tw/news/acn/202302190156.aspx

Briefings | | |   Economy/Resources

China’s New Military Reserve Personnel Law May Be Part of Possible Preparation for Invading Taiwan

The Taiwanese news site NewTalk recently reported that China is about to take the first step in preparation  for invading Taiwan by force. China’s Reserve Personnel Law  passed by the National People’s Congress at the end of last year, will come into effect on March 1. Some netizens pointed out that the law expands the age limit for reserve service to men between the ages of 18 and 60, which shows that China’s intent to  move against Taiwan is becoming more and more obvious. Due to the implementation of the new law and the abolition of the old law, some veterans (under the age of 60) who have already retired from the original reserve age may be included in the registration of reserve personnel again. In the previous reserve service regulations, the maximum ages for regular reserve officers for various ranks were between 35 to 55 years old. The new law expands this range to between 45 to 60 years old. The old law’s maximum ages for reserve professional and technical officers for various ranks were between 50 to 60 years old. The new law now expands this range to between 50 and 60 years old for senior officers, 55 years old for medium ranks and 45 years old for lower ranks. The new law also requires loyalty to the motherland, the Communist Party, and the socialist system.

Source: NewTalk, February 8, 2023
https://newtalk.tw/news/view/2023-02-08/856517

Briefings | | |   Defense/Military

Global Times: Computing Power Is Becoming a New Engine for Digital Economic Growth

Global Times recently reported that computing power, like water and electricity, has become a necessity in our lives. China is accelerating its integration into all fields of the economy and society. The processes of implementing real-life application scenarios such as smart manufacturing, smart city, smart medical care, and driverless cars, are all inseparable from the support of massive computing power. Computing power has gradually become a new engine for digital economic growth. Last February, the National Development and Reform Commission, the Central Cyberspace Affairs Commission, the Ministry of Industry and Information Technology, and the National Energy Administration officially launched the national “East Data West Compute” program which consists of eight National Computing Power Hub Nodes in the Beijing-Tianjin-Hebei, Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and in the Chengdu-Chongqing, Inner Mongolia, Guizhou regions, and in the planned ten National Data Center Clusters. The “East Data West Compute” program guides the intensive computing power demand from the east to the west in an orderly manner. It also enables the cross-region flow of data elements and it also promotes the rapid development of the digital economy and the artificial intelligence industry with a national integrated computing power network. Recently, the Shanghai Data Center has started dividing high volume business data and distributed non-realtime computing loads to the Inner Mongolia Computing Hub, which has the advantages of a low electricity price and natural low temperature cooling. The program promotes an east-west balanced resource structure of domestic data centers to establish a clustered, integrated layout from a national perspective to improve efficiency.

Source: Global Times, February 16, 2023
https://finance.huanqiu.com/article/4BjecqI2uhL

Briefings | | |   Information/Technology

CNA: China Plans to Scrutinize the CATL Battery Contract with Ford

Primary Taiwanese news agency Central News Agency (CNA) recently reported that China will scrutinize the latest contract between Ford Motor Co. and Chinese battery leader CATL to ensure China’s core technology doesn’t fall into Ford’s hands. Given the sensitivity of the contract and the current tensions between China and the United States, top Chinese officials have called for strict scrutiny of the contract. Ford announced, not long ago, that it will invest US$3.5 billion to set up an electric vehicle battery factory in Michigan with the assistance of CATL. According to the contract, CATL will approve the provision of technology and technical assistance required by Ford to produce lithium iron phosphate batteries in Michigan. Republican Senator Marco Rubio has asked the Biden administration to review Ford’s contract to use Chinese technology for the battery plant. A spokesman for Democratic Senator Joe Manchin said that Manchin has voiced serious concerns about the reliance on China for the auto supply chain and that Ford must answer some serious questions before Senator Manchin can fully evaluate the partnership. A Ford spokesman said that, to the best of his knowledge, Chinese government officials were not involved in this deal. Contemporary Amperex Technology Co. Limited (CATL), is a Chinese battery manufacturer. In 2021 it had a global market share of 32.6 percent . It is the biggest lithium-ion battery manufacturer for EVs in the world.

Source: CNA, February 17, 2023
https://www.cna.com.tw/news/aopl/202302170338.aspx

Briefings | | |   Information/Technology US-China Relations

China Lost Its Status as the Largest Trading Partner of the U.S.

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, according to data released by the US Department of Commerce, last year, China lost its position as the largest trading partner of the U.S. It was replaced by the European Union. In 2022, U.S. imports rose sharply, and the foreign trade deficit reached a record high. According to the U.S. Department of Commerce, the U.S. imported $537 billion in products from China in 2022, lower than the U.S. imports of $553 billion from the European Union. However, overall U.S. imports from China increased from the previous year’s $505 billion in 2021. China’s loss of its status as the largest trading nation of the United States has been blamed largely on Covid-19, as well as the diversification of U.S. supply sources. Particularly supplies from other Asian countries have increased. In the meantime, data shows that the trade dependence between China and the United States remains high. In 2022, the total import and export volume of the two countries broke the historic record again after three years, reaching $690.5 billion. During the same period, the U.S. deficit with China expanded by eight percent to $382.9 billion, the second highest in history after 2018. In 2022, U.S. businesses and consumers had strong demand for foreign-made goods and services, and international trade was recovering from the pandemic. China has not benefited significantly from this recovery.

Source: NetEase, February 9, 2023
https://www.163.com/dy/article/HT6175KF0553LKHX.html

Briefings | | |   US-China Relations

Around 10,000 Wuhan Retirees Took to the Streets

On February 8, around 10,000 retirees in Wuhan City, Hubei Province gathered at the municipal building to protest the city’s newly published “Employee Medical Reform” plan.

The plan, effective on February 1, will significantly cut the medical insurance benefits of Wuhan’s 2 million retirees. In the past, the government paid each retiree 286 yuan per month for medical spending , but the new plan only pays 83 yuan, a 70 percent cut. The new plan adds a 500 yuan deductible before any insurance payout. It appears that each person can be reimbursed 4,000 yuan a year, but the reality is only 1,300 yuan. Moreover, many medicines are no longer covered by the insurance.

A WeChat discussion showed that people have demanded that the Wuhan Mayor fix the issue by February 8; otherwise they will hold a large gathering on February 15. If there is no resolution by the end of the month, the retirees will demand that the mayor be impeached.

Police came to the site, but didn’t crack down on the protest. There are unofficial reports that the mayor met with the protesters in the afternoon and later on the city put the new plan on hold.

Source: Aboluo, February 8, 2023
https://www.aboluowang.com/2023/0208/1864549.html

Briefings | | |   Economy/Resources Government/Politics Social Stability

LTN: India Again Blocked Nearly 200 Chinese Apps and Websites

Major Taiwanese news network Liberty Times Network (LTN) recently reported that India has ordered the blockade of 232 apps and websites, most of them linked to China. This underscores tensions between the two countries after years of border clashes. According to a source familiar with the matter, the Indian Federal Technology Ministry has ordered the removal of 138 betting and gambling apps and 94 credit services. The order came from the Interior Ministry, which oversees domestic affairs including national security. The source asked not to be identified because the full content of the order has not been made public. The blocked apps, including several from India, are suspected of transferring data to China. India’s central bank has also tightened digital lending regulations after finding some apps allegedly breached norms and harassed customers. Indian domestic laws allow the government to block public access to content for reasons such as national security interests. Last year, India banned multiple Chinese applications such as Alibaba and Tencent’s WeChat. India also banned the use of Tik Tok. In the meantime, India is also moving to restrict Chinese companies in other areas and is considering restricting Chinese cell phone makers from selling devices below 12,000 Rupees, a blow to a number of brands, including Xiaomi.

Source: LTN, February 8, 2023
https://ec.ltn.com.tw/article/breakingnews/4204452

Briefings | | |   Geo-Strategic Trend Information/Technology

China’s Marriage Registration Declined for Eight Consecutive Years

Well-known Chinese news site Sina (NASDQ: SINA) recently reported that, in 2021, the number of marriage registrations in China dropped to 7.636 million couples. This meant there had been a decline for eight consecutive years. In addition, the age of each first marriage has been significantly delayed. In 2021, the average age of the first marriage of those in Anhui Province was 31.89 years old for males and 30.73 years old for females. The reasons for the decline in the number of marriages are: first, the decline in the number of young people, second, there are more men and fewer women in the marriageable population, third is the high cost of raising children, fourth is the high cost of marriage, fifth is fierce social competition and employment pressure, and lastly, the younger generation’s perception of marriage has changed. Economists suggested the following to tackle the situation. First, increase the supply of residential land in big cities and provide housing subsidies for families with children; second,reduce the costs of childbirth, childcare, and education; third, establish a social support system that is gender-equal and child-friendly; fourth, relax the conditions for adoption and placement; fifth, lower the legal age of marriage to 18; and sixth, protect single women’s reproductive rights. The suggestion of lowering the legal age of marriage to 18 years old resulted in intense discussions and controversies online, and one time even ranked at the top of the national hot search. Currently, the legal age of marriage in China is 22 for men and 20 for women. It is lower than Japan, the U.S., India, Germany, France, Canada, and even Mexico. The ultra-low birth rate and the rapid shrinkage of the young population have become major challenges facing Chinese society.

Source: Sina, February 8, 2023
https://finance.sina.com.cn/money/smjj/smdt/2023-02-08/doc-imyeyxpn6454987.shtml?cref=cj

Briefings | | |   Social Stability