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US Circuit Court Ruled that Falun Gong Practitioners Can Sue Cisco for Supporting the CCP

On July 7, a three-panel decision from the US Ninth Circuit Court gave Falun Gong practitioners a green light to sue Cisco System, Inc. for its action in designing the Internet censorship network used by the Chinese Communist Party (CCP).

The CCP carried out its Golden Shield project (金盾工程) from 2003 to 2006 to build the Internet censorship and monitor system used against the Chinese people. The system, known colloquially as “The Great Firewall of China,” not only blocks people inside China from visiting websites that the CCP does not want people to go to, but also monitors people’s actions on the Internet. Cisco, in order to get bigger access to the Chinese market, helped the CCP to design this censorship system; China lacked the sophisticated skills needed to develop the system on its own.

At a Congressional hearing in 2008, Cisco admitted to its involvement in developing the system. Its Vice President admitted that Cisco’s internal presentation included an official statement from the Chinese government on combating hostile elements, including religious organizations. Cisco also stated in the same or related PowerPoint presentations that the CCP would carry out a crackdown campaign against Falun Gong, describing the project as a lucrative opportunity for the company.

In 2011, Falun Gong practitioners brought a lawsuit against Cisco and two of its former executives, CEO John Chambers and China Vice President Fredy Cheung, for assisting the CCP in tracking and persecuting Falun Gong practitioners.

In 2014, a local district court rejected the case.

On July 7 of this year, the US Ninth Circuit Court of Appeals reversed the district court’s decision and reinstated all claims under the Alien Tort Statute against Cisco.

Source:
1. NTDTV, July 8, 2023
https://www.ntdtv.com/gb/2023/07/08/a103745483.html
2. Minghui, July 10, 2023
https://www.minghui.org/mmh/articles/2023/7/10/462850.html

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

Chinese Researcher Proposed New Study on Modifying Human Genes

Chinese scientist He Jiankui (贺建奎) might rile the ethics of medical practitioners for the second time.

He shocked the world when he created the first gene-edited babies in 2017 and the Chinese government boasted that he was the “new giant in the world of genetics.” However, the international community heavily criticized him for violating medical ethics. The Chinese government turned around and put him in prison for three years.

On June 29 this year, He tweeted about a new proposal for gene editing in human embryos and claimed that this research was to prevent the Alzheimer’s disease. The document he attached to the tweet said the study would first genetically edit mouse embryos and later human fertilized egg cells or fertilized eggs.

His new proposal has once again raised concerns among scientists and medical ethicists worldwide.

Source: Epoch Times, July 3, 2023
https://www.epochtimes.com/gb/23/7/3/n14027624.htm

Briefings | | |   @CS Information/Technology

China’s Efforts to Silence Unfavorable Financial News

Le Monde, a French newspaper reported that China has been trying to hide any bad news about its financial data from the world. China’s central bank, People’s Bank of China, established a Chinese credit rating company, Dagong Global Credit Rating Co, Ltd in 1994, to “serve” both the domestic market and the world. In 2013, Dagong merged with Russia’s credit rating company RusRating and a small U.S. rating company Egan-Jones Ratings, to form Universal Credit Rating Group (UCRG) (世界信用評級集團). To build its reputation, UCRG hired former French Prime Minister de Villepin to chair its advisory board and former Australian Prime Minister Kevin Rudd to serve on its advisory board.

In 2010, UCRG was banned from practicing in the U.S. because it refused to comply with the transparency rules of the U.S. Security Exchange Commission (SEC). The European Securities and Markets Authority (ESMA), however, gave Dagong a green light in 2013. Part of the reason was that in the wake of the Greek debt crisis, the E.U. was happy to see a Chinese competitor enter the credit rating market which the British and American agencies dominated.

People soon saw that Dagong served as a strategic pawn for China to enter the European market. In 2018, Dagong was fined in China for corruption and collusion with the evaluated companies. In April 2019, the state power (the communist regime) directly took over the management of Dagong. The ESMA waited another seven months to exclude Dagong from the European market.

Beijing then adopted a new strategy. That is, to publish laws to control what information it feeds to the world. It introduced a data security and protection law in 2021, restricting the freedom of multinational companies to transfer information with their Chinese subsidiaries. It introduced and implemented cross-border data transfer regulations in 2022 to make it impossible for users to access Chinese corporate information databases, such as Tianyancha (天眼查), from abroad. Its new counter-espionage law, which will take effect on July 1, makes it possible to criminalize any exchange of information with foreigners and foreign organizations and companies.

Source: Radio France International, June 20, 2023
https://rfi.my/9dhS

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

Worker Strikes Have Increased in China

China Labor Bulletin, a non-government organization based in Hong Kong, reported that it has counted 140 worker strikes in China from January to May, the highest number in the past seven years. One cause was that companies, struggling with reduced orders for their products, have been unable to pay workers’ salaries or their severance pay when laying people off. Many of the strikes have taken place in China’s manufacturing centers in Guangzhou, Shanghai, Jiangsu, and Zhejiang provinces.

Source: Liberty Times, June 15, 2023
https://ec.ltn.com.tw/article/breakingnews/4334834

Briefings | | |   @CS Economy/Resources Social Stability

China’s Mortgage Crisis Paralyzes Construction as Majority of Unfinished Buildings Remain Unfinished

It has been a year since the wave of unfinished construction projects hit China. Most affected developments have remained unable to resume work or meet delivery dates. Both citizens and banks have lost confidence in developers’ ability to address the issue. The Chinese government has not disclosed the nationwide count of unfinished projects. A survey revealed completion rates of about 56 percent in South China and 40 percent in North China, while Southwest and Central China had rates of only 15 percent and 16 percent, respectively. Henan Province had the lowest rate at 11 percent.

Xu Shirong, a professor at Taiwan’s National Chengchi University sees the unfinished building crisis as a political problem. Local influential figures engage in real estate transactions and development, attracting funds from banks under the influence of local governments. Xu believes relief measures have been aimed at reducing losses for upper-class developers who have influence on public policy.

The crisis emerged in 2019 due to increased government regulations leading to liquidity problems for real estate companies. Homeowners stopped making mortgage payments, triggering a financial crisis. Relief funds were introduced, but developers faced challenges in obtaining them, particularly when some were asked to repay loans. Only a few developers secured financing support from the “16 Financial Measures” policies.

The allocated relief funds of 400 billion RMB ($62 billion) are considered inadequate to address the crisis. Real estate prices have dropped significantly, and banks face risks when holding collateral. The motivation to buy houses has decreased due to factors such as the U.S.-China tech war and the pandemic’s impact on the economy. Commercial properties are difficult to rent out, affecting the sale of residential properties.

Developers’ promotions have not yielded expected results and people lack confidence in unfinished buildings due to their poor quality and a lack of confidence in real estate market policies. Local governments rely on real estate for their economies, and unresolved unfinished projects could burden their finances and create imbalances in urban development.

Source: Voice of America, June 20, 2023
https://www.voachinese.com/a/majority-of-china-s-stalled-residential-projects-yet-to-resume-20230620/7144861.html

Briefings | | |   @CS Economy/Resources

China’s Police Shared Experiences on Conducting Operations Overseas

Recently overseas media reported that Chinese police from Qingtian County, Zhejiang Province published their “successful” experiences in conducting operations in other countries. The article was published in the second issue of the Zhejiang Police College Publication in 2019.

There are 330,000 Chinese from Qingtian County who live in 128 foreign countries and regions. These diasporas have established 314 diasporas associations.

The police experience article talked about their work of combining “one concept, two overall plannings, three collaborations, four major mechanisms, and five areas of governance.”

“Two overall plannings” included the planning for domestic and overseas,words, two battlefields. Domestic planning – visit the relatives (inside China) of the overseas “stability maintenance” targets (usually the political activists/dissidents whom the Chinese Communist Party (CCP) views as a threat to its rule in China). Overseas planning – send working groups abroad to meet with the Chinese diasporas.

“Three collaborations”: One is to collaborate with Chinese embassies and consulates and  them to reach out to local Chinese diaspora groups. Two is to collaborate with the leaders of diaspora associations – Qingtian police has established regular collaborative mechanism with 230 Chinese diaspora associations and maintained regular contacts with 150 influential diaspora leaders. Three is to collaborate with the people who were the former police officers or relatives of former police officers.

The article also talked about strengthening the party’s leadership, including expanding the party organization’s reach to the overseas Chinese diaspora associations and establishing a party structure inside the Chinese diaspora associations via the party organs at China’s embassies and consulates.

The Qingtian police created a “Police-Diaspora Station” service center. Its online system started operation in 2018. The Qingtian police led the efforts, with Chinese diaspora associations participating in and providing offices. The service center has organized video conferences, information sharing sessions, regular meetings, and timely service. It created 15 sub-centers in 11 countries including Spain, Italy, and France.

The “four major mechanisms” includes establishing a “grid-management” mechanism, with larger diaspora associations as the base, and diaspora leaders, diasporas who are party members, and overseas police liaisons as the expanding points, to manage the diaspora communities. It has “successfully” handled 15 cases of a few diasporas’ protests against the CCP or its leader’s visit.

The “five areas of governance” listed anti-Falun Gong as its first area. It quoted that Qingtian police guided the “World Chinese Diaspora Anti-Cult Association in Spain” to protest the Shen Yun performance held in Barcelona in 2014.

Source: Epoch Times, May 25, 2023
http://cn.epochtimes.com/gb/23/5/25/n14003947.htm

Briefings | | |   @CS Geo-Strategic Trend Government/Politics US-China Relations