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Briefings - 66. page

China-Russia Eastern Gas Pipeline Transmitted 20 Billion Cubic Meters of Gas in 2023

China Oil and Gas Pipeline Network Corporation announced that, as of early December, the China-Russia Eastern Gas Pipeline has transmitted over 20 billion cubic meters this year, reaching a historical high. It has transmitted over 50 billion cubic meters of gas since its inception on December 2, 2019.

The China-Russia Eastern Gas Pipeline is the third long-distance cross-border pipeline supplying natural gas into China, following the Central Asian pipeline and the China-Myanmar pipeline. China’s portion of the pipeline starts from Heihe City in Heilongjiang Province and extends south to Shanghai, with a total length of 5,111 kilometers.

Source: Xinhua, December 15, 2023
http://www.news.cn/energy/20231215/2b453f6a1bcc4699abb398bd35a45acc/c.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

People’s Daily Claims U.S. Spends $1.5 Billion to Train Journalists to Write Negative Reports about China

People’s Daily quoted European scholar Jan Oberg stating that the U.S. has spent $1.5 billion to train Western journalists to write negative reports about China. Oberg said that the U.S. Congress passed a bill to spend such money five years ago.

Oberg claimed, “Now, those of us who have been to China or live here as Westerners see the complexity and vastness of China and can understand it from China’s perspective, resulting in different opinions. However, some Americans are different; they urgently need ‘enemies.'”

Oberg also stated that he did not see any threat to the U.S. in China’s foreign policy. He mentioned that China has not sailed warships off the coast of California or Florida; instead, it is the West that has “surrounded” China with naval vessels.

The article did not provide detailed information about who Oberg is.

Source: People’s Daily, December 19, 2023
http://world.people.com.cn/n1/2023/1219/c1002-40142558.html

Briefings | | |   US-China Relations

China’s State Council: Directive on Merging Domestic Trade and International Trade Together

China’s economy faces a shrinking market, both in terms of exports and on the domestic front. China’s State Council General Office issued a notice on “Several Measures to Accelerate the Merging of Domestic Trade and International Trade Together” on December 11, 2023, with the intention of allowing companies that are facing hard times in their primary market to seek opportunity in the other market.

The notice mentioned policies such as consolidating the domestic and international trade standards; advancing the uniformity of domestic and international trade products in production line, standards, and quality; supporting foreign trade enterprises in expanding the domestic market; supporting domestic trade enterprises in expanding the international market, etc.

Source: China government website, December 11, 2023
https://www.gov.cn/zhengce/content/202312/content_6919596.htm

Briefings | | |   Economy/Resources Government/Politics

Chinese Money Flows into Gold

Gold demand in China continues to rise, supporting high international gold prices. Chinese spot prices have exceeded international benchmarks since August 2023. Reasons for the high demand from China include economic concerns like the Chinese real estate slump and devaluation of the yuan, as well as global instability resulting from deteriorating Chinese foreign relations and wars abroad.

Chinese demand for gold reach 789 tons in 2022, making up 20% of global demand. Increasing purchases by Chinese individuals are lifting prices. Gold ETF holdings are up 27% since the end of 2022 as investors seek stability.

China’s economy is showing signs of slowdown. Both the manufacturing and property sectors are struggling, and heavy corporate debts are threatening operations. The yuan hit 15-year lows against the US dollar in September 2023, sparking speculation that China has limited gold imports to defend its currency.

Chinese investors distrust the yuan amid uncertainty, buying gold as a “stateless currency” and inquiring about offshore real estate, e.g. Japanese properties. Inquiries from China, Hong Kong and Taiwan to one Japanese real estate agency rose 40% between January and November of 2023.

Ongoing gold inflows and foreign property investment reflect persistent economic unease. But with policy stimulus now improbable, the poor outlook on growth may remain until issues around housing, the yuan, and debt show improvement. For the foreseeable future, Chinese demand for gold looks set to keep international prices elevated.

Source: Nikkei, December 15, 2023
https://zh.cn.nikkei.com/china/ceconomy/54310-2023-12-15-08-38-33.html

Briefings | | |   Economy/Resources

China: Negative Commentary on Economy is a National Security Risk

China’s Ministry of State Security recently published an article saying that economic security is the foundation of national security. It said that economic threats must be dealt with to promote China’s economic recovery and “high-quality development [of the economy]. The article accused foreign critics of fabricating false narratives about China’s economy to undermine market confidence and impede growth. It vowed to crack down on illegal activities that jeopardize economic security.

Meanwhile, social media platforms like Weibo are instructing bloggers to avoid pessimistic comments about China’s economy or face severe punishment. Some users were notified that downplaying the economy has become a “red line” that risks heavy penalties if crossed. This reflects the CCP’s heightened sensitivity to dissent and its effort to control public discourse about economic issues.

The article tied economic security to the national security concepts emphasized by Xi Jinping. It blamed foreign actors for creating “discourse traps,” manufacturing false narratives about China’s economic decline. The article did not address concerns about how China’s own policies have contributed to the trend of economic decoupling between China and global economy.

By framing economic commentary as a national security issue rather than just economic analysis, the CCP is severely restricting speech within China. Self-censorship by firms like the China International Capital Corporation (CICC) and social media platforms show the chilling effect of this new policy. Some Chinese netizens have noted that, ironically, the act of banning negative comments about the economy may itself be damaging to perceptions about the Chinese economy and business environment.

Source: Voice of America, December 15, 2023
https://www.voachinese.com/a/china-s-ministry-of-state-security-says-badmouthing-china-s-economy-endangers-national-security-20231215/7399543.html

Briefings | | |   Social Stability

Official Media on Chinese Economy: Maintain High Vigilance against Black Swan Events

The Chinese Communist Party’s Central Economic Work Conference listed real estate as a key area for risk prevention. State media stated that high vigilance is needed to guard against black swan events and gray rhino events that could destabilize the economy.

A commentary in the China Economic Daily said that the conference made clear arrangements to resolve risks around real estate, local debt, small banks, and illegal finance. According to the article, the goal is to hold the line against systemic risks while supporting development. This requires caution, preparation, and deeper consideration of potential troubles to guard against economic “rhino” events.

The article said that China faces many challenges – deep economic contradictions, accumulating risks, and an unfavorable global context. “In order to ensure smooth modernization, we must adhere to [the principle of] high-quality development and security.”

The Central Economic Work Conference emphasized stability through steady progress. More policies aim to stabilize expectations, growth, and employment. China will continue proactive fiscal policy and prudent monetary policy.

The commentary stressed that strong bottom-line thinking is indispensable. China must be cautious as when “walking on thin ice” and must “think of danger during times of peace.” It must estimate difficulties fully and be stable in coordinating resolution of local debts.

Source: Central News Agency (Taiwan), December 17, 2023
https://www.cna.com.tw/news/acn/202312170102.aspx

Briefings | | |   Government/Politics

CNA: China’s iPhone Ban Expands

Primary Taiwanese news agency Central News Agency (CNA) recently reported that a growing number of Chinese government agencies and state-owned companies are ordering employees not to bring iPhones and other foreign-brand phones to work. The spread of such unprecedented bans is likely to lock out companies like Apple and Samsung from parts of the world’s largest mobile phone market.

In the past couple of months, several state-owned enterprises and several government agencies in at least eight Chinese provinces (including in wealthy coastal provinces) have instructed employees to start bringing only Chinese-brand mobile phones to work. The situation has intensified significantly from September, when only a handful of agencies in Beijing and Tianjin began requiring employees to leave foreign devices at home.

It is unclear exactly how many Chinese government agencies have issued such directives banning foreign phones. The eight province-level governments involved so far are Zhejiang, Guangdong, Jiangsu, Anhui, Shanxi, Shandong, Liaoning and Hebei.

This new round of bans has seen much more extensive and synchronized action, marking a significant acceleration of the Chinese authorities’ shift away from dependence on U.S. technology. The ban could cause a quick and direct hit to Apple’s market share in China. For Apple, which uses China to produce most of its devices, the Chinese market accounts for about 1/5 of its revenue.

An Apple spokesperson declined to comment on the new bans. China’s State Council Information Office and the Cyberspace Administration of China, which oversee cybersecurity, also did not respond to the requests for comment.

Source: CNA, December 16, 2023
https://www.cna.com.tw/news/acn/202312163001.aspx

Briefings | | |   Information/Technology US-China Relations

India’s Largest Stock Exchange Surpasses Hong Kong

The combined market capitalization of stocks listed on India’s largest stock exchange, the National Stock Exchange of India (NSE), has surpassed that of listings on the Hong Kong Stock Exchange (HKSE). Shanghai-based Chinese financial news site East Money recently reported that, as optimism about India’s economic prospects grows, the NSE is now the seventh largest stock exchange in the world.

According to the World Federation of Exchanges (WFE), the total market capitalization of stocks listed on NSE was US$3.989 trillion as of the end of November, while the total market capitalization of stocks listed on the HKSE was US$3.984 trillion. In terms of total market value of listed stocks, the NSE currently ranks behind the New York Stock Exchange, Nasdaq Stock Exchange, Shanghai Stock Exchange, Euronext, Tokyo Stock Exchange, and Shenzhen Stock Exchange.

India’s main benchmark stock index NSE Nifty 50 hit another high recently. The index has gained nearly 16 percent so far this year and is on track for its eighth straight year of gains.

India currently has the world’s fastest-growing large economy. Despite global economic headwinds, India’s economic growth this year is expected to reach 6.3 percent this year, according to the International Monetary Fund (IMF). International ratings agency S&P Global recently said in a report that India will remain the world’s fastest-growing economy for at least the next three years. By comparison, Hong Kong’s benchmark Hang Seng Index has fallen 18 percent so far this year. The index is on track for this year to be its fourth straight year of losses, the worst among major Asia-Pacific stock markets.

Source: East Money, December 12, 2023
https://finance.eastmoney.com/a/202312122930706147.html

Briefings | | |   Geo-Strategic Trend