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Briefings - 263. page

Xi Jinping Held a Flag Presentation Ceremony for the Police Force

On August 26, to symbolize his control over the police force, Xi Jinping held a flag presentation ceremony for the police force at the Great Hall of the People in Beijing. This is the first time that the Chinese Communist Party (CCP) designed a flag for the police force.

At the ceremony, Xi made four requests to the police force: Be loyal to the CCP, serve the people, enforce the law fairly, and strictly respect discipline.

The police officials at the ceremony took a group vow: “Be loyal to the CCP, serve the people, enforce the law fairly, and strictly respect discipline. Stay firm and pure, let the party rest assured, be willing to make sacrifices, and be able to fight and win.”

Source: Xinhua, August 26, 2020
http://www.xinhuanet.com/politics/leaders/2020-08/26/c_1126416270.htm

Briefings | | |   Government/Politics

Xinhua: More on “United Front Work” in the Private Sector

Because of the recently placed emphasis on United Front Work, Xinhua reported on the fact that the Chinese Communist Party (CCP) just had a National United Front Work Conference to discuss the Domestic Private Sector. Wang Yang, a member of the Standing Committee of the Political Bureau of the CCP Central Committee and the Group Leader of the Central United Front Work Leadership Group, attended the Conference. CCP General Secretary Xi Jinping delivered a written speech requiring the Party to strengthen the relationship with the domestic private sector companies and to “direct” them to stay “politically aware.” The targeted group includes business owners in Hong Kong and Macau. Taiwanese investors and other foreign investors were not mentioned. This is the first Communist Party official document describing the “United Front Work” strategy for the private sector in over 40 years. The strategy also mentioned the task of encouraging “politically sound” private business owners to join the Communist party.

Sources:
(1) Xinhua, September 16, 2020
http://www.xinhuanet.com/politics/2020-09/16/c_1126502287.htm

(2) RFI Chinese, September 16, 2020
https://bit.ly/3iSYZag

Briefings | | |   Government/Politics

On Twitter: UK Ambassador Holds a Book Promoting Xi Jinping

Caroline Wilson, the newly appointed British ambassador to China, will take office this month. Before leaving for Beijing, the senior diplomat posted a photo on her Twitter account. In the photo, she and the Chinese ambassador to the UK held a book that glorifies the head of the Chinese Communist Party, Xi Jinping. The tweet raised questions about whether she could promote and safeguard British values and interests.

Wilson said on her twitter account: “Valuable meeting with @AmbLiuXiaoMing before heading to Beijing. We can and must work for ambitious UK-China collaboration, on climate, health, trade, and also engaging on trickier topics too. I look forward to supporting a mature, positive UK-China relationship, in line with UK values.” The book The Governance of China, which Xi Jinping authored, presents the official party line for the Chinese government.

Wilson’s tweet and photo soon attracted hundreds of comments. Only a few comments praised her as “the best candidate for this absolutely critical position.” The vast majority of netizens believed that this tweet was extremely untimely.

“UK values in this particular book? Good luck …”

“Ah, the little book of Chairman Xi. Just the perfect analogy to the little red book of Chairman Mao.”

“Some individuals still don’t understand the CCP; good luck trusting the CCP.”

“British values and Xi Jing Ping Thought. Round peg in a square hole.”

“Hardly imagine this can happen to the new ambassador when the whole world is condemning #CCP for its move in suppressing human rights in #HongKong and #Xinjiang. #TakeDownTheCCP”

“Why not change with George Orwell’s “1984” with it? it’s a completely forbidden No entry sign in mainland china now.”

Nathan Law, one of the student leaders during the 79-day Umbrella Movement in 2014 in Hong Kong, now living in London following the National Security Law that Beijing enacted, commented, “This looks terrible. Accepting ‘Xi’s speech’ from this awful ambassador — I see it as an insult to the democratic values that we all share. Stop helping the CCP to spread its propaganda and infiltrate the democracies. This is an extremely bad move from the new British Ambassador.”

Roger Garside, a former British diplomat and author of Coming Alive: China After Mao“ said, “As a former British diplomat myself, who served twice in Beijing, I am appalled by this behavior of our Ambassador-designate to the PRC… It goes beyond anything I have witnessed from a British diplomat.”

Garside summed up the reaction to Wilson’s tweet as a “stream of well-deserved outrage.”

Source: Voice of America, September 18, 2020
https://www.voachinese.com/a/uk-ambassador-china-stirs-uproar-photo-promoting-xi-jinping-20200918/5589689.html

Briefings | | |   Geo-Strategic Trend

RFA Chinese: Around 1,700 Japanese Applied for Government Aid to Leave China

Radio Free Asia (RFA) Chinese Edition recently reported that the Japanese government’s aid program to assist Japanese companies to leave China is gaining in popularity. The first batch of approved applicants consisted of nearly 90 companies. However, by the end of July, the program received almost 1,700 applications in the second batch. It appears Japan is moving its industrial supply chain out of China. The Japanese government added a supplemental budget of US$2.07 billion to its 2020 budget in order to sponsor Japanese manufacturers moving their supply chain out of China and back to Japan or somewhere else. The second batch of applications totaled US$16.57 billion. Experts expressed the belief that, right now, the CCP virus is serving as a wake-up call for many governments around the globe that restructuring their industrial supply chain is an urgent task. On the other hand, the steady increase in the cost of investing in China is also emerging as an important factor motivating companies to consider leaving China. According to a study that the Japan External Trade Organization conducted, China’s cost index was 80 in 2019, Vietnam was 74, and baseline Japan was 100.

Source: RFA Chinese, September 14, 2020
https://www.rfa.org/mandarin/yataibaodao/jingmao/ql2-09142020062444.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Canada Gave up on Free Trade Agreement Negotiation with China

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the Canadian Minister of Foreign Affairs, François-Philippe Champagne, commented in an interview with the Globe and Mail on Canada’s Free Trade Agreement with China. He concluded that there is no value in continuing the negotiation and so Canada has given up on the process. The negotiation started four years ago when Prime Minister Justin Trudeau visited China. Champagne expressed the belief that the current political conditions are not suitable for further discussions. Prime Minister Trudeau has been under heavy domestic criticism for giving up too many of Canada’s principles in exchange for China’s business opportunities. Earlier, Champagne described China’s style of pushing foreign relationships as “arbitrary” and “coercive.” (Editor’s note: Sina’s report did not mention that, in the same interview with the Globe and Mail, Champagne stated Canada’s first priority is to bring home Michael Kovrig and Michael Spavor. In in June, in retaliation for Canada’s detention of Huawei’s CFO Meng Wanzhou, the Chinese Communists charged the two Michaels with espionage.)

Source: Sina, September 19, 2020
https://news.sina.cn/2020-09-19/detail-iivhvpwy7616303.d.html

Briefings | | |   Geo-Strategic Trend

CCP to Strengthen United Front Work in Private Companies

The CCP General Office recently introduced a document entitled, “Opinions on Strengthening the United Front Work in the Private Economy in the New Era.” It is the first document on the united front work of the private economy that the CCP has issued since 1978, the start of China’s reform and opening up. It shows that private enterprises are playing a more decisive role in the overall economy. It also shows that, in dealing with the trade conflicts between China and the U.S., the CCP feels the urge to integrate the power of private enterprises with the imposition of the party’s management and control over them.

According to the document, the private economy is China’s “important economic foundation.” Private entrepreneurs are “our own people” and have always been “an important force that the party must unite and rely on in order to serve the long-term in exercising governance.” In the document, it asked that the private entrepreneurs always be politically sensitive and continuously be guided to increase their “political, ideological, and emotional identity” with the party. Meanwhile, the party must actively recruit party members among private entrepreneurs, build and manage a database of talent pools, and develop those private entrepreneurs who will follow the party without deviation. Private entrepreneurs are encouraged to participate in the national strategic discussions and the belt and road initiatives but they need to protect the country’s national interests consciously. It requires that the Private entrepreneurs shall not engage in activities including forums, seminars, lecture halls, salons, and other activities without advanced registration.

For 40 years since the start of China’s economic reform and opening up, the many startup companies in China, such as those that follow, have brought it to the world’s stage: Huawei, Bytedance, Tencent, Alibaba and others. Private enterprises in China contribute over 50 percent of business taxes, make 60 percent of investments, own 70 percent of the patents, hire 80 percent of the workforce and account for 90 percent of the total companies in China.

Source: BBC Chinese, September 16, 2020
https://www.bbc.com/zhongwen/simp/chinese-news-54175379

Briefings | | |   Government/Politics

Taiwan Kuomintang Cancels Visit to the “Straits Forum” over CCTV Host’s Statement

The Kuomintang originally planned that Wang Jin-pyng, the former legislator, would lead a delegation to Xiamen of Fujian province to participate in the Straits Forum on September 16. However, Li Hong, a CCTV host of “Across the Strait” commented that Wang’s visit to the mainland was “to seek reconciliation.” The statement triggered criticism of the Kuomintang in Taiwan. Johnny Chiang, the Kuomintang chairman demanded an apology from Li Hong. Although Li later on responded that she meant that the visit was to seek “peace” not “reconciliation,” [Editor’s note: “和” in Chinese carries multiple meanings including reconciliation, harmony or peace] she was unable to quell all parties’ doubts. On September 14, the Kuomintang announced that, for the first time since the Straits Forum started 12 years ago, it would not participate in the “Straits Forum” as a political party; however, each party member could decide for himself whether to participate.

China has hosted the “Straits Forum” since 2009. In the past, the chairman of the National Committee of the Political Consultative Conference would attend the opening ceremony. For the past 11 years, the Kuomintang sent a vice chairman to lead a delegation. Hung Hsiu-chu personally led a delegation when she was the Chairman. This year Johnny Chiang was elected the Chairman of the party without a Vice Chairman so Wang Jin-pyng, former legislative member, was selected to attend the “Straits Forum.”

Source: Radio Free Asia, September 14, 2020
https://www.rfa.org/mandarin/yataibaodao/gangtai/hx-09142020085643.html

Briefings | | |   Geo-Strategic Trend

Chinese Investments in Australia Plummeted in 2019

The Australian National University’s (ANU) Chinese Investment in Australia (CHIIA) database reported the total investments from China in 2019 were 2.5 billion Australian dollars (US$ 1.8 billion). This was about half of the 4.8 billion Australian dollars (US$ 3.5 billion) invested in 2018.

The inflow of Chinese money reached its peak of nearly 16 billion Australian dollars (US$ 11.7 billion) in 2016, and has since fallen sharply. Most industries saw dramatic declines in 2019, including real estate, mining and manufacturing. Investment in agriculture declined, but the construction and financial industries rebounded slightly.

ANU professor Peter Drysdale, head of the CHIIA database project, reckoned that there were a multitude of factors behind the plunge.

As Chinese companies are increasingly focusing on developing markets and Beijing is trying to prevent capital outflows, in 2019, foreign direct investment from China fell by nearly 10 percent globally. The decline in Australia was even more severe, partly because of the end of the mining boom (which brought a lot of money from China).

Professor Drysdale added that the government’s new regulatory barriers have also pushed away Chinese investors. In recent years, China’s investments in Australia have attracted heated political debates. The Australian Federal Government has generally strengthened its review of foreign investment. Earlier this year, the Treasurer of Australia, Josh Frydenberg, introduced new restrictions to prevent overseas companies from targeting troubled Australian assets due to the economic impact of the coronavirus pandemic.

The largest transaction that CHIIA recorded in 2019 was Mengniu Dairy’s acquisition of Bellamy, an Australian infant formula manufacturer, at 1.5 billion Australian dollars (US$1.1 billion). Last month, Frydenberg blocked Mengniu’s acquisition of the Australian company Lion Dairy and Drinks, claiming the deal was “contrary to their national interest.”

The political relationship between Australia and China has also turned increasingly hostile. The two countries have seen a series of issues, including foreign infiltration, Australian journalists harassed in China, cyber espionage, trade, Hong Kong issues and the COVID-19 outbreak. Professor Drysdale expected a further decline in Chinese investments in Australia in 2020.

Source: Australian Broadcasting Company Chinese, September 14, 2020
https://www.abc.net.au/chinese/2020-09-14/chinese-investment-in-au-takes-nosedive/12661168

Briefings | | |   Geo-Strategic Trend