Skip to content

Briefings - 362. page

Global Times: South Korea Suffered Worst Smog in History

Global Times recently reported that, for the past few weeks, South Korea’s capital region has been suffering from the “worst smog in history.” On March 6, South Korean President Moon Jae-in asked his relevant government departments to get in touch with the Chinese government immediately for an emergency discussion on a response plan. The talk aims to minimize the impact of the smog from China, such as establishing a joint smog early alarm system. In addition, all three South Korean major political parties had an emergency meeting and decided to legalize the fact that smog is a national disaster. The spokesperson from the Chinese Ministry of Foreign affairs commented that it is uncertain whether the smog originated from China or not. It is important to take a scientific approach to determine the cause of the smog. However, China is happy to cooperate with South Korea on that effort.

Source: Global Times, March 7, 2019
http://world.huanqiu.com/exclusive/2019-03/14484704.html?agt=61

Briefings | | |   Geo-Strategic Trend Social Stability

Chinese Investment in Europe Fell Sharply

Chinese investments in EU countries are experiencing a sharp decline for the second year in a row. The combined value of completed Chinese FDI transactions in the EU fell to EUR 17.3 billion in 2018, down 40 percent from 2017 levels (EUR 29.1 billion). This represents the lowest investment level since 2014.

According to a report that the German think tank The Mercator Institute for China Studies (MERICS) and the U.S. consulting firm Rhodium Group jointly published on March 6, after the peak of EUR 37.2 billion in 2016, Chinese investments in the EU dropped to EUR 29.1 billion in 2017 and dropped further down to EUR 17.3 billion in 2018.

“The lion’s share of Chinese investment in the EU’s 28 member countries continued to go to the three biggest economies in Europe—the UK (EUR 4.2 billion), Germany (EUR 2.1 billion) and France (EUR 1.6 billion)—which received 45 percent of China’s investments in Europe.”

Despite the decline in Europe, Chinese investment in Germany has risen. Compared with 2017, China’s investment in Germany in 2018 increased by EUR 400 million. This includes China Tiancheng Pharmacy Ltd.’s acquisition of German competitor Biotest, and Ningbo Jifeng Auto Parts’ purchase of German auto parts supplier Grammer.

An important reason for the overall decline in Chinese overseas M&A is that China has continued strict capital controls and tightened liquidity, making it difficult for companies to transfer funds abroad. That European countries have increasingly strict controls over acquisitions has also increased the difficulty for Chinese companies to complete acquisitions. European countries are expected to exert stricter controls over acquisitions.

However, in the near term, the recent expansion of the US investment screening regime and the continued US–China tensions, may also boost Chinese investment in Europe.

Source: Radio France International, March 6, 2019
http://rfi.my/3kdC.T

Briefings | | |   Geo-Strategic Trend

Global Times: Huawei Suing the U.S. Government Is a Righteous Counterattack

China’s state-rum media Global Times published an editorial to support Chinese telecommunication equipment maker Huawei because it is suing the U.S. government. The lawsuit claims that the ban on the use of Huawei products by all government agencies in the United States based on the U.S. “National Defense Authorization Act of 2019” (NDAA) is unconstitutional. Huawei said that the US government has been smearing Huawei, but has never provided any evidence to support its allegations that Huawei threatens cybersecurity.

The article stated, “This is a counterattack Huawei made because of the United States’ escalating pressure and persecution.  … Because the U.S. harbors ulterior motives and has an obvious political purpose in suppressing Huawei, Huawei’s prosecution is not a radical move even from the Western perspective. It has a very solid reason.

The article continued, “As long as Huawei can prove that its equipment is indeed advanced and clean, and it has done its best to dispel people’s doubts. Then if it wins the lawsuit, it shows the failure of the US government; if it loses, the prestige of the US judicial system will be swept away.”

“We support Huawei in hiring the best and most famous lawyers in the Western world to form a “dream team” for justice. Through this lawsuit, the world will see how rude and vicious the U.S. government is in suppressing the Chinese companies Huawei, ZTE, and others. As everyone knows, the U.S. crackdown on these companies reflects Washington’s loss of rationality towards China’s rise.”

“American public media institutions have concealed the truth and acted in concert with the government’s persecution.”

Source: Global times, March 7, 2019
http://opinion.huanqiu.com/editorial/2019-03/14488999.html?agt=61

Briefings | | |   US-China Relations

NJ Lawmakers Oppose Sale of Princeton’s Westminster Choir College to Beijing-Owned Company

The century-old, Princeton-based Westminster Choir College, a well-respected music school, may soon be sold to a Chinese government-owned company named “Beijing Kaiwen Education Technology,” a former a steel company with no track record of music education.

New Jersey State Assemblymen Hal Wirths and Parker Space introduced a resolution, ACR 222, which calls upon the state legislature to oppose the sale because it “could jeopardize the security of United States citizens.”

With the multitude of world-class scientists, researchers, and institutions located in Princeton, the law makers are concerned that the Chinese government may be using the guise of academia to infiltrate the choir college for nefarious purposes, including the collection of United States intelligence and intellectual property theft.

“The question is, do we want a hostile communist dictatorship gaining footholds in strategic academic and scientific areas of our country?” asked Wirths. “Absolutely not!”

On June 21, 2018, the Rider University Board of Trustees announced that it had signed a US$40 million purchase and sale agreement for the transfer of the choir college to Kaiwen Education.

Source: Oriental Daily News (online), March 5, 2019
https://hk.on.cc/hk/bkn/cnt/amenews/20190305/bkn-20190305134124433-0305_00972_001_cn.html

Briefings | | |   US-China Relations

Nanjing Military District Accelerates 5G Pilot Application in Military-Civilian Integration

On February 26, 2018, Nanjing Military District Commander Li Bin visited Unicom (Jiangsu) to learn about the application results of Unicom (Jiangsu) in new technologies and new fields such as big data, cloud computing and the Internet of Things. Li Bin had exchanges on how to promote the application of 5G technology in military-civilian integration.

Commander Li Bin said that 5G will not only change society but will also shape future wars. The widespread application of new combat warfare such as unmanned reconnaissance, unmanned vehicles, and autonomous combat will rely on the 5G ultra-high-speed information transmission. Both the military and local civilians should implement the concept of the integration of military and civilian development; they should strengthen cooperation in the areas of mobilization, construction of new quality militia, dynamic management of the militia, and mobilization of auxiliary decision-making zones; and they should actively explore the in-depth use of information technology in the field of national defense mobilization.

Source: jstv.com, February 27, 2019
http://news.jstv.com/a/20190227/1551254341392.shtml

Briefings | | |   Defense/Military

Xi Jinping on Social Science and Works of Art and Culture

Social science and the works of art and culture relate to the theoretical foundation and propaganda vehicles of the Chinese Communist Party’s ideology. During the ongoing sessions of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), Chinese president Xi Jinping told the conference attendees that social science and art should focus on socialism with “Chinese characteristics.”

According to Xinhua News Agency, Xi said that, without a soul, a country and a nation cannot stand. Works of culture and the arts, philosophy, and social science belong to the work of casting for souls. It plays an important role in the new era of developing socialism.

Xi Jinping advised that philosophy and social science research should be based on the great practice of socialism with Chinese characteristics and should put forward creative and original theories.

Xi emphasized that this year is “the 70th anniversary of the founding of the New China.” It is necessary to present China’s historical achievements and the theoretical and cultural advantages of socialism with “Chinese characteristics”.

Source: Central News Agency, March 4, 2019
https://www.cna.com.tw/news/acn/201903040320.aspx

Briefings | | |   Government/Politics

CBIRC: China Faces High Financial Risks

Wang Zhaoxing, Vice Chairman of the China Banking Insurance Regulatory Commission (CBIRC) spoke recently about financial risks. Wang said that, to prevent and resolve financial risks, it is necessary to be ready for a good fight as well as to be prepared for a protracted war. He indicated that China should always focus on the following five major risk areas.

First, China should continue to increase its efforts to dispose of the non-performing assets of banking institutions and, at the same time, to control the growth of new non-performing loans.

Second, China should beware of the liquidity risks of small and medium-sized bank insurance institutions during economic downturns and financial market fluctuations.

Third, China should continue to watch out for shadow banking activities such as regulatory arbitrage, “passageway business,” and increased leveraging that includes inter-bank investments, interbank financial management, entrusted loans, and “passageway trust loans.”

Fourth, China should continue to focus on real estate financial risks and implement prudent lending standards for real estate development loans and personal mortgage loans. In particular, it should impose strict control over speculative real estate development and personal loans, and prevent major problems related to real estate financial risks.

Fifth, China should continue to coordinate among other government departments in the disposal of local government debts, especially the disposal of hidden debts of local governments.

Source: The State Council Information Office, February 25, 2019
http://www.scio.gov.cn/xwfbh/xwbfbh/wqfbh/39595/39902/zy39906/Document/1647716/1647716.htm

Briefings | | |   Economy/Resources