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Nikkei Chinese: U.S. Surpassed China to Become Japan’s Largest Export Destination

Nikkei Chinese Edition recently reported that, for the first time in four years, the United States surpassed China as the top destination for Japanese exports in 2023. The United States economy currently appears strong, and Japan’s exports to the United States are recovering in the aftermath of the COVID-19 pandemic. Meanwhile, the Chinese economy is struggling, and Japanese exports to China are sluggish.

The 2023 trade statistics report released by the Japanese Ministry of Finance showed that the country’s total exports were 100.8865 trillion yen (around US$681 billion), exceeding 100 trillion yen for the first time and representing an increase of 2.8 percent over the previous year. Total imports were valued at 110.1779 trillion yen (around US$743 billion), a decrease of 7 percent. Japan’s trade deficit was 54.3 percent smaller than in 2022. Exports to the United States were 20.2668 trillion yen (around US$137 billion), a year-over-year increase of 11 percent. Exports to the European Union were 10.374 trillion yen (around US$70 billion), an increase of 10.9 percent year-over-year. Japanese automobile exports to the U.S. grew 35.5 percent year-over-year, driving overall growth. A weaker yen helped exports too.

Japan’s exports to China were significantly affected by China’s economic slowdown, a major component of which is rooted in China’s current real estate market slump. China’s unemployment rate is high, and willingness to consume within the country has been weakened.

Despite strong year-over-year growth, Japan’s future exports to the United States still face many risks, including potential slowdown in the U.S. economy. Moreover, China’s economy could be slow to recover, leading to slow export growth for Japan and continued trade deficits.

Source: Nikkei Chinese, January 26, 2024
https://cn.nikkei.com/politicsaeconomy/investtrade/54664-2024-01-26-05-00-10.html

Briefings | | |   Geo-Strategic Trend

Retired Military Leaders Saluted Zhang Youxia But Not Xi Jinping

The Chinese Communist Party’s Central Military Commission (CMC, 中共军委) held a cultural performance on January 29 for the retired military leaders who are in Beijing. Xi Jinping led CMC members including Zhang Youxia, He Weidong, Liu Zhenli, Miao Hua, and Zhang Shengmin to attend the event.

The China Central Television’s (CCTV’s) video revealed that, when Xi waved to the retired military leaders, only one saluted him. But those retired military leaders saluted the CMC’s Vice Chairman Zhang Youxia. Zhang also responded back with salutes frequently. CCTV quickly removed this scene.

In CCTV footage from previous years, Xi would enter the venue, shake hands one by one with the retired military leaders in the front row, and many retired military leaders in casual attire would salute him before shaking hands. This year, however, Xi did not shake hands with the retired military leaders; instead, he waved from a distance. Speculation from the public suggests that this change might have been due to the ongoing COVID pandemic.

Source: NTDTV, February 1, 2024
https://www.ntdtv.com/gb/2024/02/01/a103848268.html

Briefings | | |   Defense/Military Government/Politics

Artistically Shaping China’s Image Based on Three Principles

The China Social Science website posted a theoretical article, suggesting that “a beautiful and artistic image of China, organically integrated with profound Chinese wisdom, can better fulfill Beijing’s mission to be a great nation.” The article listed three “cultural principles” by which to craft an artistic image of China:

  • Values: “The image of Chinese people should be trustworthy and sincere.” This image not only comes from the traditional Chinese culture, but also from “the communist revolutionary cultural values and advanced socialist cultural values.”
  • Ethics: “China has developed an ethical concept that ‘family and home country are integrated as one.'” “Patriotism becomes the fundamental political and ethical spirit, giving rise to the individual ideal that one should ‘cultivate oneself, harmonize the family, govern the country, and settle the world.'”
  • History: “Chinese culture is diversified because the vast Chinese territory comprises multiple geographical units, leading to diverse economic forms and nurturing different cultures.”

Source: China Social Science, January 19, 2024
https://www.cssn.cn/skgz/bwyc/202401/t20240119_5729627.shtml

Briefings | | |   Economy/Resources Government/Politics

Xinhua: China Unveils “Thousand Groups Going Abroad” Initiative, Aiming to Boost Overseas Trade

As China’s exports continue to decline, the China Council for the Promotion of International Trade (CCPIT) announced a new initiative this year called “Thousand Groups Going Abroad.” The plan is to organize over 1,000 batches of business delegations to participate in overseas exhibitions, inspections, and negotiations, aiming to secure export orders and expand China’s overseas markets. The initiative will target China’s key export markets such as the Europe Union, the U.S., Japan, South Korea, ASEAN, and Latin America.

China organized approximately 900 overseas exhibitions in 2023.

Source: Xinhua, January 15, 2024
https://app.xinhuanet.com/news/article.html?articleId=a2b554b08f23afaff0f499798e1b9f74

Briefings | | |   @CS Economy/Resources Government/Politics

People’s Daily: Foster a Comprehensive Ongoing Approach to National Defense Education

People’s Daily published an article on conducting national defense education for the general public in China. The below paragraphs are translated excerpts from the article:

“Our army is the people’s army. Our national defense is the defense of the entire nation.

National defense education is comprehensive, long-term systemic work that emphasizes practical effectiveness and the public participation. Facing the current complex and challenging national security situation, it is essential to consistently regard national defense education as a strategic necessity.

Youth are the future of our country and thus the main focus of national defense education. It is crucial to incorporate national defense education into textbooks, classrooms, and student’s minds, sowing in young hearts the seeds of love for the Party, for the country, and for the military. We should leverage opportunities like military open days and military summer/winter camps to conduct effective national defense knowledge training.

Catering to the characteristics of the audience, national defense education should occur both online and offline, with both hardware and software being developed simultaneously. We should fully utilize local regions’ revolutionary culture (historical sites) and new technologies such as big data and artificial intelligence.

National defense education is not achieved through a single event; instead, it needs to be integrated into daily life and pursued regularly.”

Source: People’s Daily, January 21, 2024
http://paper.people.com.cn/rmrb/html/2024-01/21/nw.D110000renmrb_20240121_2-06.htm

Briefings | | |   Defense/Military Government/Politics

Survey: German Companies in China Face Stiff Competition, Geopolitical Risks, and Economic Headwinds

A survey by the German Chamber of Commerce Abroad found that 46% of German companies operating in China believe that their Chinese competitors will become leaders in their respective industries within the next 5 years. Some 37% of surveyed companies feel that innovativeness in the Chinese market makes doing business in China increasingly attractive, and 11% of German automotive companies in China view their Chinese competitors as already being the innovation leaders in their industry.

About 83% of German companies surveyed believe that China’s economy is declining, though 64% anticipate this downward trend being just a temporary 2-3 year slowdown. Some 42% of respondents expect positive developments in Chinese industry this year.

The investment outlook among surveyed companies was mixed – 54% think that China’s investment appeal is falling, while a similar percentage plan to increase investment in China over the next 2 years. Risks are top of mind, with about 37% of respondents reportedly taking action to mitigate geopolitical risks and some 20% taking action to mitigate risks related to China’s economy.

Source: German Chamber of Commerce in China, January 24, 2024
https://china.ahk.de/market-info/economic-data-surveys/business-confidence-survey-1

Briefings | | |   Economy/Resources

RFA: China Jailed More Journalists in 2023 Than Any Other Country

Radio Free Asia (RFA) recently reported on a study by The Committee to Protect Journalists (CPJ), an international human rights organization, saying that 44 journalists were imprisoned in China in 2023, more than in any other country. Out of the 44 imprisoned Chinese journalists, 19 were of the Uyghur ethnic group. According to the CPJ report, “censorship makes the exact number of journalists jailed there notoriously difficult to determine, but Beijing’s media crackdown has widened in recent years.” When the CPJ report was released, Jimmy Lai, one of the representatives of press freedom in Hong Kong and the former founder of Apple Daily, was on trial in Hong Kong facing accusations of anti-state crimes. He had been subject to detention in prison for more than 1,140 consecutive days.

The report pointed out that the Chinese government has a tendency to charge journalists with “working against the state.” In 2023, three-fifths of new cases brought against journalists in China involved charges of espionage and incitement, separatism, or subversion of state power. This trend of bringing anti-state charges against journalists reflects the Chinese government’s attitude towards freedom of speech — it wantonly uses the party-state judicial apparatus to directly punish those who use speech in a manner that it deems unfavorable. Criminal charges are often brought on the basis of speech or reporting alone.

It is worth noting that China’s amended Counterespionage Law, which took effect on July 1, 2023, raised concern among members of the press at the time. Since Chinese law has always been vague about what constitutes threats “related to national security and interests,” it is difficult for Chinese and foreign journalists operating in China to gain clarity and feel secure in the reporting work they do.

Sources:

RFA, January 19, 2024
https://www.rfa.org/mandarin/yataibaodao/renquanfazhi/wy-01192024115907.html

CPJ, January 18, 2024

2023 prison census: Jailed journalist numbers near record high; Israel imprisonments spike

Briefings | | |   Government/Politics Social Stability

Chinese Officials Disciplined for Reading “Politically Problematic” Books

Chinese media have reported that several recently-arrested provincial and municipal officials were accused of “reading books and magazines with serious political problems.” Such offenses have been cited alongside more common corruption charges such as acceptance of bribes. The “problematic books”  in question include publications and e-books of foreign origin. Government reports about officials accused of such behavior have been published on the websites of the Chinese Communist Party’s Central Commission for Discipline Inspection (CCDI) and China’s National Supervisory Commission.

One example concerns former Guiyang City deputy mayor Lin Gang, who was expelled from the Communist Party and from public office for “unlawfully seeking benefits for others, illegally accepting property, and confronting the organization’s scrutiny.” He was additionally accused of “not believing in Marxism-Leninism, believing in ghosts and gods, participating in superstitious activities, and reading e-books and magazines with serious political issues for a long time.” Other officials recently accused include a former water company deputy general manager, a former deputy secretary of the Guizhou Provincial Party Committee for Political and Legal Affairs, the former deputy governor of Guizhou Province, and a recently expelled Shanxi City deputy mayor. All have faced charges of possession or reading of “politically-problematic” books or magazines originating from outside of China.

Taiwan’s Central News Agency noted that calling out officials for reading questionable publications or e-books has historically been quite rare, although there have been a few prior such cases.

Source: Central News Agency (Taiwan), January 30, 2024
https://www.cna.com.tw/news/acn/202401300029.aspx

Briefings | | |   Government/Politics