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Geo-Strategic Trend - 102. page

China State Media Says Military Exercise over Taiwan not Impossible

On August 18, 2020, the Chinese Communist Party mouthpiece China Central TV reported that, at the end of U.S. Secretary of Health Azar’s visit to Taiwan, the Eastern Theater District of the People’s Liberation Army (PLA) announced that it had organized actual combat exercises in the Taiwan Strait and on the northern and southern sides of the Taiwan Strait and made it clear that it was a necessary action for the current security situation across the Taiwan Strait and the maintenance of national sovereignty.

The state media claimed that, as a result of the China military “showing its muscles,” the United States immediately announced the withdrawal of the USS Ronald Reagan from the East China Sea.

“Today it is an exercise in the Taiwan Strait and on the north/south sides of the Strait. Tomorrow it is not impossible to carry out a large exercise around Taiwan Island or even an exercise over the Taiwan Island. The strength, confidence, and determination of the People’s Liberation Army will determine that once the ‘reunification by force’ is triggered. ‘The first battle’ will be the ‘final battle.’”

Source: The Paper Times, August 18, 2020
https://m.thepaper.cn/wap/v3/jsp/newsDetail_forward_8779848

China Reports Continued Growth of “Belt and Road” Projects

According to its state media People’s Daily, from January to July, China made 423.65 billion yuan (US$61.23 billion) in non-financial direct investments overseas, a year-over-year decrease of 2.1 percent. The value of newly signed foreign contracted projects was 855.67 billion yuan (US$123.66 billion), an increase of 4.3 percent. The completed business turnover was 491.26 billion yuan (US$71.0 billion), 10.5 percent lower than the same period last year. 159,000 workers were dispatched for foreign contracts. At the end of July, 644,000 Chinese workers were still abroad.

From January to July, China’s non-financial direct investment in “Belt and Road” countries totaled US$10.27 billion, a year-over-year increase of 28.9 percent, accounting for 17 percent of total outward investment in the same period. The contract value of newly signed projects in “Belt and Road” countries amounted to US$67.18 billion, and a completed turnover of US$40.43 billion.

Outward direct investment was sent mainly to leasing and business services, manufacturing, and wholesale and retail industries. Leasing and business services increased 18.1 percent and wholesale and retail investment 43.2 percent. The newly signed contracts in construction, petrochemical, and water conservancy construction projects have shown high growth.

Source: People’s Daily, August 21, 2020
http://paper.people.com.cn/rmrb/html/2020-08/21/nw.D110000renmrb_20200821_2-01.htm

Lianhe Zaobao: Mainland Banks in HK Complied with U.S. Sanctions

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that large Chinese state-owned banks operating in Hong Kong have taken actions to comply to the latest U.S. sanctions of the top Hong Kong government officials, including the top Mainland official dispatched to Hong Kong to oversee the implementation of the new Hong Kong National Security Law. Those large Chinese banks which conduct a good amount of U.S. business stayed very conservative on allowing the opening of accounts by those who were sanctioned, including even the city’s Chief Executive Carrie Lam – at least one bank completely stopped such service. Foreign banks in Hong Kong also tightened up reviews on their customers’ accounts. Experts expressed the belief that these cautions were taken to safeguard the channels to obtain U.S. dollars and the banks’ international network. According to data that Bloomberg released, by the end of 2019, the four largest Chinese state-owned banks had a total U.S. dollar-based financing volume of $1.1 trillion. The banks and the Hong Kong government declined to comment on this matter.

Source: Lianhe Zaobao, August 14, 2020
http://http//www.uzaobao.com/bolg/20200814/76481.html

LTN: U.S. Businesses Consider Leaving Hong Kong

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, according to a member survey that the American Chamber of Commerce conducted in Hong Kong, around 53 percent of its members are considering leaving Hong Kong in the future, either near-term or mid-term. The survey was designed specifically to measure the impact of the Hong Kong National Security Law and the U.S. sanctions that followed. The survey sampled a total of 154 member companies of the Chamber. Most (55.84 percent) of the members recognized the long-term competitiveness of the Hong Kong based U.S. companies to be the top priority to evaluate. According to undisclosed sources, after the new law and the new U.S. sanctions, most of the “high net-worth individuals” in Hong Kong have not yet moved their money out of the city. They are still observing and evaluating the changes on local asset prices and the potential long-term business environment under the Mainland’s control. However, many of the wealthy people have completed the preparation work for a swift money move, such as opening off-shore bank accounts, obtaining overseas passports, and other means.

Source: LTN, August 13, 2020
https://ec.ltn.com.tw/article/breakingnews/3259577

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

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

Samsung Closed Its Last PC Factory in China

Voice of America (VOA) Chinese Edition recently reported that, on August 1, Samsung announced  that it is closing its last personal computer manufacturing factory in China – Samsung Electronics Suzhou Computer. Over 800 employees may see their contracts end. The Suzhou factory was established in 2002. It is Samsung’s only laptop manufacturing factory in the world. Last year, Samsung closed its last cellphone manufacturing factory in China and moved to Vietnam. That closure had a major economic impact locally. Now Samsung has only two factories left in China. One makes LCD displays and the other makes DRAM memory chips. Experts pointed out that, in the past two years, with the trade war, the coronavirus pandemic, and the worsening U.S.-China relations, the global supply chain is rapidly moving out of China and moving to countries such as Vietnam, India and Mexico. The trend is especially clear for companies from the United States, Japan, South Korea and Europe. At the same time, China’s low labor cost advantage has been weakening as well.

Source: VOA Chinese, August 1, 2020
https://www.voacantonese.com/a/samsung-to-halt-production-at-its-last-computer-factory-in-hina/5526722.html

Global Times: India to Increase Troops along India-China Border

Global Times recently reported that, according to Indian media quoting anonymous sources, India plans to send 35,000 more troops to strengthen its military presence along its border with China. The reasoning behind the decision is that the Indian government found the probability of quickly reducing the tension between the two countries is getting lower. Although some recent negotiations cooled down the situation, yet there are still plenty of issues left that have not been resolved. This new decision of adding troops is expected to add a greater burden to India’s tight defense budget as well. Some Indian military leaders said it has been more than a couple of weeks with no improvements on the ground. A full disengagement between the two armies was not achieved. In the meantime, the Indian government just announced new trade sanctions and investment restrictions against China.

Source: Global Times, August 1, 2020
https://world.huanqiu.com/article/3zHoxhkYVWf