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Briefings - 272. page

Tencent’s Stock Tumbled after Trump Banned WeChat

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, as soon as U.S. President Trump officially signed the executive order to ban WeChat (in 45 days), the stock price of WeChat’s owner, Tencent, instantly suffered a free fall of 10 percent on the Hong Kong Stock Exchange (HKSE). The loss of market value was the equivalent of HK$500 billion (around US$64.5 billion). In the meantime, the bad news also brought down SMIC (China’s largest chip maker) by over ten percent, Alibaba by six percent, and Xiaomi by five percent. These were all happening with the background of Mike Pompeo’s repetitive mention of the so-called Clean 5G Network plan on August 5. This is part of the U.S. effort to remove Chinese-made “untrusted” apps from the U.S. digital networks. The Chinese Ministry of Foreign Affairs expressed its strong opposition to these unfair political moves designed solely to sustain the U.S. monopoly in the high-tech industry. The new U.S. executive orders are directly against market rules and are a threat to the safety of the global supply chain.

Source: Sina, August 7, 2020
https://finance.sina.com.cn/stock/hkstock/marketalerts/2020-08-07/doc-iivhuipn7334222.shtml

Briefings | | |   Information/Technology US-China Relations

China Encourages College Graduates to Join the Army

In July, China’s Ministry of Education issued a notice requiring students at local schools and colleges to watch a promotional video and a mini film that the Recruitment Office of the Defense Ministry produced.

The government has also recently adjusted its conscription system. Beginning in 2020, China will increase the frequency from “one conscription and one retirement every year” to “two conscriptions and two retirements every year.” The recruitment process, conducted once in each half of the year, will target college graduates.

For quite a long time, China’s troops came mainly from rural areas. After China initiated the recruitment from universities and colleges years ago, more and more students have enlisted in the army. Li Baoyang, a researcher from Sun Yat-sen University in Guangzhou, believes that China’s urbanization process has made college graduates the main source of recruits. “Especially since the start of the 21st century, China’s rural areas have basically been ‘empty nests,’ and there are very few young and middle-aged populations. Now, the rural areas are generally dilapidated, and there are few soldiers to recruit.”

People’ Liberation Army (PLA) Daily, the newspaper for the Chinese military, once reported that Shanghai ranked top in the country in recent years in terms of the proportion of college graduates who enlisted. Nationwide, the percentage of enlisted college students has soared from 17 percent in 2006 to 90 percent in 2018.

A number of incentive policies have also been introduced throughout the country to attract college students to the army. Soldiers receive preferential considerations when applying for government jobs. They also receive a subsidy after two years of service. State-owned enterprises also reserve 15 percent of their positions for retired college student soldiers. In recent years, the authorities have relaxed the recruitment standards. In 2014, the minimum height for male recruits nationwide was reduced from 162 cm to 160 cm, and the weight limit rose from 25 percent to 30 percent exceeding the standard.

In 2020, the population of college graduates will reach 8.74 million, another record high. At the same time, the epidemic and the prolonged economic slowdown have diminished the labor demand. With the serious imbalance in supply and demand, college graduates are facing unprecedented pressure looking for jobs. Joining the army may be an attractive choice. The number of Chinese college students who signed up to join the army last year reached 1.24 million, close to 15 percent of the total graduates.

Source: Radio Free Asia, August 10, 2020
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/hc-08102020134352.html

Briefings | | |   Defense/Military

Huawei Faces Kirin Chip Reserve Shortage Due to U.S. Sanctions

On August 7, at the “2020 China Info 100 Summit,” Yu Chengdong, CEO of Huawei’s consumer business, admitted that, due to U.S. sanctions, Huawei will not be able to produce new powerful chips. Huawei’s flagship mobile phone Mate40 will be released next month. The Kirin 9000 chip will be the last high-end Kirin chip and Huawei will stop its production after September 15. Chinese media said in May of this year that the key chips that Huawei has stocked could last for two years. However, on August 7, Yu said that, because of the sanctions, the inventory of chips will be insufficient to meet the demand. The sales of Huawei mobile phones this year is therefore expected to be lower than last year. Yu also acknowledged that the upcoming Mate40 will not be accepted in the west because it cannot connect to the Google series of services. That is because of Google’s withdrawal of Huawei’s Android license last year.

In addition, the US, the U.K., and Australia announced sanctions this year; Huawei is prohibited from participating in the 5G networks in their countries. New Zealand also rejected a wireless communications company’s decision to use Huawei equipment. Japan’s Yomiuri Shimbun reported that Japan will follow the U.S. to extend the exclusion of products from Chinese telecommunications equipment manufacturers including Huawei and ZTE.

Source: Epoch Times, August 7, 2020
https://www.epochtimes.com/gb/20/8/7/n12314739.htm

Briefings | | |   Information/Technology

Censorship and Surveillance at Australian Universities

Recently a number of controversial incidents involving restriction on freedom of speech have been reported on Australian university campuses. Scholars have criticized Australian universities for catering to Beijing and for suppressing academic freedom and freedom of speech. The Australian reported on August 7 that the Australian Federal Minister of Education Dan Tehan will launch an investigation into the university’s speech and academic freedom environment.

Below is a list of some recent incidents:
1. On July 31, the University of New South Wales twitter account shared a link to an article that expressed concerns about the human rights situation in Hong Kong. A few hours later, this post was deleted due to pressure from Chinese students. The incident was exposed and drew considerable criticism. On August 5, the President of the University admitted that deleting the tweet was a mistake and that, “There is no excuse for mistakes. … We clearly reaffirm our previous commitment to freedom of speech and academic freedom.” However in a separate university statement published in Chinese, the wording was different. The Chinese statement read, “Due to the misleading content, the school has deleted this tweet. We are deeply disturbed by the trouble this incident has caused to you. Thank you all for your understanding.”

The University of New South Wales has 16,000 foreign students from China. They account for 25 percent of the total students; 68.8 percent of foreign students; and they contribute 22 percent of the university’s income. The University of New South Wales is reported to have launched a “Torch Innovation Precinct” project with China which includes a training program for PLA scientists.

2. On August 5, the Sydney Morning Herald reported that a professor from the School of Engineering at Charles Darwin University used the wording “Chinese Wuhan COVID-19 virus outbreak” in an assignment. It caused dissatisfaction among many Chinese students. After the Chinese students filed complaints, the school apologized and the professor changed the wording of the homework.

3. A Chinese student studying in Melbourne and her family members in China were harassed and the officers from State Security in China warned them against the student’s organizing events on campus and being outspoken about her position on Hong Kong and COVID 19.

4. Another Chinese student, Kevin, who did not want his real name to be used due to security reasons is currently studying for a graduate degree at the University of Sydney. He said that there are roughly three types of surveillance on campus: one is the embassy’s direct surveillance; the second is from fellow students; the third is from the local Chinese media because the CCP has infiltrated them. The media employees would take photos, conduct online searches, and indirectly assist the CCP in conducting overseas surveillance. Kevin said he felt afraid because he has to deal with this kind threat overseas.

Source: Radio Free Asia, August 7, 2020
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/jt-08072020143222.html

Briefings | | |   Geo-Strategic Trend

China Opens its First Military Hospital Train

China News reported that on August 6, China opened the Xinqiao Hospital train, the first military hospital train in China. The train consists of boxcars that serve purposes such as a command center, medical care, surgical emergency, intensive care, and medical technical support. It is the equivalent of a mobile hospital with the capacity to load 500 wounded personnel and it can carry out surgical first aid, intensive care, virtual treatment, and other medical services during transportation. There are two dedicated railroad lines for the hospital train which are located on the east side of Xinqiao university hospital. The railroad lines connect to the national railroad network through the nearby Chongqing (Sichuan province)–Guiyang (Guizhou province) Railway. The Xinqiao Hospital train will be used as a hospital train and carry out corresponding medical training. In wartime or military operations, however, it will perform strategic support and emergency rescue tasks. It will also deliver medical support and services to the country  and to regions along the belt and road areas.

Source: Chinanews, August 7, 2020
http://www.chinanews.com/gn/2020/08-07/9258882.shtml

Briefings | | |   Defense/Military

CCP Members Are the Backbone of ByteDance

Epoch Times reported on August 4, 2020, that it had obtained an internal list of the Communist Party committee members at ByteDance headquarters in Beijing. ByteDance is the parent of TikTok.

Among the members is Zhang Fuping, Secretary of ByteDance’s CCP Committee and ByteDance’s Chief Editor. The internal list shows that Zhang Fuping joined the CCP in 2013.

As Chief Editor, Zhang Fuping is responsible for all of the contents of ByteDance and TikTok.  In April 2018, at an internal CCP training session that Zhang chaired at ByteDance on guiding public opinion, he stated that, “[We] must stay true to the main responsibility of the enterprise and absolutely not allow the Internet to become a platform for the transmission of harmful information and rumors.”

In September 2019, Zhang Fuping presided over an opening ceremony for the Ministry of Public Security in which online police were launched to be able to monitor, through special TikTok accounts, the user’s activities on TikTok. These online policemen came from over 170 national, provincial, and regional online police organizations. Zhang Hongye, Deputy Director of the Online Security Department under the Ministry of Public Security, stated that the purpose of these special accounts was to take advantage of TikTok to enhance the government’s capacity to maintain social stability.

According to the internal list that Epoch Times obtained, the ByteDance headquarters’ CCP committee has 138 members. Of the 138, most were born in the 1990s and are young and energetic. They all are in corporate management or professional and technical positions and are the backbone responsible for the company’s operations.

Source: Epoch Times, August 4, 2020
https://www.epochtimes.com/gb/20/8/4/n12306881.htm

 

Briefings | | |   Government/Politics

Has China Developed a Nuclear Missile Early Warning System?

Kyodo News Agency learned on August 2 that a nuclear missile expert from the People’s Liberation Army (PLA) said that China has an early warning system that can detect nuclear missiles before they land and can use nuclear weapons to counterattack. The expert pointed out that at present only the United States and Russia possess this technology. If the claim is true, China will enhance its nuclear combat capability and change the world’s strategic balance.

The early warning system is the key to high-end missile defense (MD) technology, composed of manmade satellites and maritime radar, used for detecting the launch of ballistic missiles. China has always been opposed to the United States’ missile defense development.

Yang Chengjun (杨承军) is a retired officer who served for years in Chinese military’s nuclear missile forces, also known as the PLA Rocket Forces. He is also widely known as a security expert in the National Security Commission of the Chinese Communist Party (CCP). Yang’s article, titled, “It is inappropriate to hype up nuclear-related issues on the Internet,” was published in a government magazine, Motherland (祖国)” (electronic version on May 12). It states that the Chinese military has an early warning system that can detect nuclear missile attacks within minutes after their launch and conduct a nuclear counterattack before they land. He emphasized that China’s comprehensive nuclear combat capability is not inferior to the United States or Russia.

The system is said to be able to detect nuclear missiles in three stages: the initial stage after launch, the intermediate stage of cruising beyond the atmosphere, and the final stage of returning to the atmosphere. If a counterattack can be carried out within a few minutes, it implies that China has mastered the technology to use early warning satellites to detect heat sources during launch. China is believed to be developing this technology.

Source: Kyodo News Chinese, August 2, 2020
https://china.kyodonews.net/news/2020/08/73db29416aa3.html

Briefings | | |   Defense/Military

Serbia Purchases China’s Missile Defense System

Serbia has purchased a new generation of medium-range radar-guided surface-to-air missiles from China. The move is considered the latest sign of deepening cooperation between Beijing and Belgrade.

According to Reuters report on August 3, “the purchase of the FK-3 missile defense system was included in the state-run arms company Jugoimport SDPR’s annual report, submitted to the state Business Registers Agency last week and seen by Reuters.”

The FK-3 is an export version of China’s latest generation of HQ-22 medium-range air defense missiles, which first appeared at the 2016 Zhuhai Air Show.

“Jugoimport SDPR said it made 163 import deals with 31 countries for $620.3 million in 2019. The weapons purchases included armed drones from China and Europe’s first known purchase of the FK-3.”

The FK-3 air defense missile, which Serbia purchased has a maximum range of 100 kilometers and a shooting height of 50 meters to 27,000 meters. The source said that Serbia has purchased 3 sets of FK-3 systems.

“In late June, Serbia’s air force received six CH-92A combat drones armed with laser-guided missiles, the first such deployment of Chinese unmanned aerial vehicles in Europe.”

China’s state media Global Times said that this drone is mainly used for reconnaissance and surveillance, but it also has certain strike capabilities.

The Serbian military traditionally uses the technology of the former Soviet Union. In recent years, Belgrade has purchased MiG-29 fighter jets, missiles, helicopters, tanks and armored personnel carriers from Russia.

China has been pumping money into Balkan countries, mainly on soft loans, infrastructure and energy projects. Beijing sees Serbia as part of its “One Belt, One Road” initiative and an important springboard to enter the Balkans.

In April last year, the Chinese government stated that, under the framework of the “One Belt, One Road,” the cooperation between the two countries achieved remarkable results. In the past six years, until 2019, the bilateral trade volume increased by 55.7 percent; the number of tourists from China to Serbia has also increased significantly. 2018 saw more than 100,000 Chinese tourists; the total contractual value of infrastructure construction projects of Chinese-funded enterprises exceeded US$5 billion. In recent years, China’s construction in the western Balkans and issuance of preferential loans in the name of promoting the development of infrastructure has attracted widespread international attention. The European Union expressed its concern that Southeast European countries in the western Balkans might suffer from China’s “debt trap diplomacy.”

Source: Voice of America, August 3, 2020
https://www.voachinese.com/a/serbian-purchase-missile-defence-system-shows-ties-deepening-china-20200803/5528464.html

Briefings | | |   Geo-Strategic Trend