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China Considers Anti-Foreign Sanctions Law

Xinhua News Agency reported that, on July 7, the Standing Committee of the National People’s Congress (NPC) of China was deliberating the “Anti-Foreign Sanctions Law (Draft).”

A spokesperson of the Standing Committee was quoted as saying that “certain Western countries, out of a need for political manipulation and ideological bias, have grossly interfered in China’s internal affairs on issues related to Xinjiang and Hong Kong, and have imposed ‘sanctions’ on China in accordance with their own laws.”

The spokesperson said that, many people proposed that it was necessary for the country to enact a special anti-foreign sanctions law to provide “strong legal support and protection for China to counter discriminatory measures from foreign countries in accordance with the law.”

In addition, the Standing Committee of the NPC also proposed in one report to “enrich the legal ‘toolbox’ to deal with challenges and prevent risks, considering the sanctions and interference.”

In recent years, China and Europe and the United States have been engaged in battles of sanctions against each other over Xinjiang and Hong Kong. Following China’s imposition of the national security law on Hong Kong, the U.S. sanctioned 14 vice chairmen of the National People’s Congress, as well as Hong Kong and the Macau Affairs Office Director Xia Baolong, Hong Kong Chief Executive Carrie Lam, and a couple of senior Hong Kong officials, among others. In retaliation, China sanctioned former U.S. Secretary of State Mike Pompeo and a group of “anti-Beijing” Members of Congress by banning them from entering China, Hong Kong and Macau.

Source: Central News Agency, June 8, 2021
https://www.cna.com.tw/news/acn/202106080034.aspx

For a Third Time, Hungary Vetoed EU’s Criticism of China on Hong Kong

On June 7, German Foreign Minister Heiko Maas, in his annual speech to German diplomats, criticized Hungary without naming it. “We can’t let ourselves be held hostage by the people who hobble European foreign policy with their vetoes. If you do that then sooner or later you are risking the cohesion of Europe. The veto has to go, even if that means we can be outvoted.”

Hungary is seen by the media as a Trojan horse that China planted into Europe. It has become the spokesman for China in the EU and has repeatedly prevented the body from condemning human rights in China, putting Europe under the risk of being divided. After Hungary used its veto three times within two months to prevent the EU from issuing statements on Hong Kong’s national security law and electoral reform, German Foreign Ministry of State Secretary Miguel Berger tweeted against Hungary. “Hungary again blocked an EU statement on Hong Kong. Three weeks ago it was on the Middle East. Common foreign and security policy cannot work on the basis of a blocking policy.”

Asked to comment on the Friday veto, the Hungarian government’s media office said EU sanctions on China were “pointless, presumptuous and harmful.” Hungary blocked an earlier EU statement in April criticizing China’s new security law in Hong Kong, thereby undermining the bloc’s efforts to confront Beijing’s curbing of freedoms in the former British colony.

Berger’s tweet raises concern because it is unusual for a member state to criticize another member state publicly over diplomatic issues, reflecting the fact that other EU countries, especially large ones like Germany, are getting closer to the bottom of their tolerance for Hungary. Some member states and the EU may already be thinking of taking action against Hungary.

Three weeks ago, Josep Borrell, the EU High Representative for Foreign Affairs and Security Policy, complained about Hungary’s obstruction and warned that the other 26 member states may issue their own joint statement on Hong Kong. Maas called on the EU to stop making decisions on foreign action by unanimity. Because the EU’s foreign policy decisions are made by unanimous vote, any member state can boycott them, making it difficult for the EU to speak out in a unified voice.

The EU said it would investigate Hungary for violating democratic values. The European Court of Justice said that Hungary’s public displeasure with the EU and its request to dismiss the accusation of serious violations of democratic values against Hungary was rejected. Next, Hungary will be investigated by the European Court of Justice and, if it is found to be in serious violation of democratic values, it will be subject to economic and political penalties .

Source: Radio Free Asia, June 9, 2021
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/cl-06092021142842.html

CNA: Three U.S. Senators Visited Taiwan

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, according to the American Institute in Taiwan (AIT, the de facto Embassy of the United States in Taiwan), three U.S. Senators will be visiting Taiwan on June 6. The visit intends to discuss topics on the U.S.-Taiwan relationship and regional security. Senator Ladda Tammy Duckworth (D), Senator Daniel Scott Sullivan (R) are members of the Senate Armed Services Committee, and Senator Christopher Andrew Coons (D) is a member of the Senate Foreign Affairs Committee, the Chairman of the Senate Ethics Committee, a member of Senate Committee on Appropriations, and a co-sponsor of the Taiwan Assurance Act (also known as the Taipei Act).  The Taiwan Ministry of Foreign Affairs said these U.S. senators are all long-term supporters of Taiwan, and they are prioritizing the visit to Taiwan to demonstrate their firm bi-partisan support of Taiwan in the U.S. Senate. This is the first international visit that the Senate Armed Services Committee planned to have, after the breakout of the Covid-19 Pandemic last year. The whole U.S. Senate visiting group includes ten people. A meeting with Taiwanese President Tsai Ing-wen is part of the schedule. [Editors Note: According to DW, the U.S. was expected to give 750,000 doses of COVID vaccine to the island. Taipei had accused China of blocking it from making a deal to procure doses from a German firm, but Beijing denied the accusation.]

Source: CNA, June 5, 2021
https://www.cna.com.tw/news/firstnews/202106055008.aspx
DW: June 6, 2021
https://www.dw.com/en/us-senators-visit-taiwan-in-trip-that-may-irk-china/a-57790467

COVID Is Shutting Down the Taiwanese Chip Making Industry

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the COVID pandemic is spreading in Taiwan, impacting various world-class chip suppliers in the semiconductor industry. The latest bad news came from King Yuan Electronics (KYEC), which is the world’s largest semiconductor packaging and testing company. The company announced a 48-hour suspension of operations due to a widespread group COVID infection affecting 45 workers. KYEC services major downstream chipmakers like MediaTek (Taiwan), NVIDIA (USA) and STMicroelectronics (Switzerland). Currently, Taiwan is the world’s number one provider of foundry as well as packaging & testing. It is also the world’s number two IC design provider. The Taiwanese semiconductor industry is currently the second largest in size, only after the United States. In the meantime, Malaysia, another major chip packaging & testing country, already closed down the entire country and manufacturing lines are keeping only 10 to 20 percent of their labor, just to keep the machines powered, with zero production output.

Source: Sina, June 6, 2021
https://news.sina.com.cn/s/2021-06-05/doc-ikqcfnaz9279554.shtml

No Major Chinese Cellphone Manufacturer Plans to Use Huawei’s HarmonyOS

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that Huawei just announced its mobile phone operating system HarmonyOS will replace Android and will challenge Google. However, none of the major Chinese domestic mobile phone heavyweights, such as Xiaomi, Oppo and Vivo plan to use HarmonyOS. It’s worth noting that Android is an open-source system and anyone can use it. What Huawei cannot use is the Google suite of applications (such as Gmail), which do not have a large share of the Chinese market. To the Chinese mobile phone manufacturers, the important part of a mobile device operating system is its ecosystem. The Mobile device hardware profit margin for these manufacturers is extremely narrow. Software and related services provide their primary profitable income, and Huawei’s new HarmonyOS has a very limited number of apps. Also, in the past, Huawei took a very competitive approach in dealing with other domestic manufacturers. The mobile vendors are very hesitant to rely heavily on Huawei. In fact, Google has been a lot more neutral than Huawei when developing business relationships with the Chinese manufacturers. Huawei used to promise not to enter the mobile phone market – then it became the world’s second largest mobile phone maker, crushing all domestic competitors.

Source: NetEase, June 4, 2021
https://3g.163.com/dy/article_cambrian/GBJVC2ET0511DT6P.html

Two New Zealand MPs Resigned Due to Ties with Beijing

On May 26, news website Politik revealed that the resignations of two former MPs in New Zealand in 2020 had been orchestrated after the National and Labour party leadership received security briefings over growing concerns about their links to Beijing.

On May 27, in a personal column in the New Zealand Herald, Matthew Hooton, political adviser to Todd Muller, who was leader of the New Zealand National Party in 2020, confirmed that their departure was the result of the intervention of intelligence agencies.

Yang Jian, an MP from the National party and Huo Raymond, an MP from the Labour party resigned last July within 11 days of each other. Yang had served as MP for 10 years and Huo had served for seven years. During their terms as MP, they were frequently spotted participating in the events that the Chinese consulate or the United Front Department had organized. In 2017, two weeks before New Zealand’s September 2017 general election, Financial Times and Newsroom.co.nz reported that Yang has been teaching at a Chinese military institution for over 15 years. However, he did not disclose the teaching experience in his citizenship application. In 2019, Yang accompanied the leader of the National Party and met with Guo Shengkun, China’s secretary of Political and Legal Affairs.

In 2017, Anne Marie Brady, a Chinese scholar at the University of Canterbury, New Zealand, published the report called, “Magic Weapons.”  The report listed a number of encounters that Yang and Huo had with Beijing’s United Front organization in New Zealand. The report mentioned that both Yang and Huo openly supported the Belt and Road initiative. Huo set up the Belt and Road Research Association in New Zealand and named himself as the Chairman. Huo organized a fund-raising banquet for the current Mayor of Auckland and raised over US$188,000. The participants were mostly Chinese. One of the items auctioned during the fund raising was the book Xi Jinping Talks about Governance Theory. Xi Jinping had signed the book. A Chinese buyer paid 150,000 New Zealand dollars (US$109,000) for the book. In addition, Huo once prevented New Zealand from inviting the Dalai Lama to visit. He told New Zealanders that the Dalai Lama was a separatist and a slave owner. In September 2019, he also introduced Beijing’s “New and Old Tibet” exhibition to New Zealand.

Source: Epoch Times, May 31, 2021
https://www.epochtimes.com/gb/21/5/31/n12987469.htm

Chinese Generations Y and Z Caught Between “Involution” and “Lying Down”

Involution (内卷Nei Juan) and Lying Down (躺平 Tang Ping) have become buzzwords among Generations Y (born in the 1990’s) and Z (born in 2000) in China. One refers to “excessive competition” while the other one indicates “dropping out of competition.” Both of them reflect the frustration of China’s younger generation towards the fierce competition in society.

On Weibo, there are over 1 billion views on topics related to “Involution.” In 2020, “Involution” became one of the “top ten buzzwords” in China. Involution came from Clifford Geertz who used it to describe the agricultural process in which many centuries of intensifying wet-rice cultivation in Indonesia had produced greater social complexity without significant technological or political change. Generations Y and Z in China use it to describe their feeling of powerlessness when faced with competition. If they don’t work hard and don’t compete, they will fall behind or end up dropping out; they are repressed and unable to make a breakthrough. What they are facing is unlike the1990’s or early 2000 when China’s economy was taking off. That was the time when their parents benefited. Generations Y and Z missed that window. Meanwhile they have also found that their parents or employers do not understand them very well.

In April 2021, six months after the word “Involution” gained popularity, Lying Down (躺平 Tang Ping) appeared. It is a way that those in the younger generation show their resistance to “Involution.” “Lying Down” means that Generations X & Y withdraw from the competition by giving up what they think is meaningless. The state media quickly expressed concern and even condemned the words. Guangming Daily pointed out that “Lying Down” is disadvantageous to economic and social development. The society needs the younger generation to bring “creative contributions” when China’s economic development is facing challenges such as an aging population. Nanfang Daily criticized that it is shameful to “Lie Down” and not making an effort. Other media call it an irresponsible attitude towards their parents and tens and millions of tax payers. The official media reports are merely there to maintain social stability. They had to allow the younger generations to release their frustrations, but many people will undoubtedly regard “Lying Down” as a social problem.

Source: BBC, June 2, 2021
https://www.bbc.com/zhongwen/simp/chinese-news-57304453

Chinese Customs Announced List of Unqualified Imports, Naming H&M and Nike

On June 1, China’s General Administration of Customs announced a list of unqualified imported children’s products. Swedish clothing brand H&M and U.S. sports brand Nike are on the list for using hazardous materials. H&M and Nike were targets of a boycott in China after Chinese netizens unearthed old statements from the brands stating that they had taken a stand against cotton sourced from the northwestern Chinese region of Xinjiang over concerns about reports of forced labor involving the Muslim Uyghur minority.

The official website of the General Administration of Customs (GAC) of China reported the quality of some imported children’s products investigated over the past year, involving 81 batches of imported children’s products in five categories: clothing, toys, toothbrushes, shoes, and pacifiers and bottles. Among them, ten brands including H&M, Nike, MUJI, ARCELO BURLON, Bonton, GAP, GU, mikiHOUSE, STORY LORIS, and ZARA allegedly failed to pass the standard for rubbing color fastness, or the ability to sustain the original color of dyed fabrics when rubbing. GAC claimed there is a risk that dyes or harmful substances may be absorbed by the human body through the skin, mouth and other health hazards.

Source: Central News Agency, June 1, 2021
https://www.cna.com.tw/news/acn/202106010379.aspx