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The Paper: British Retail Giant Tesco Exits China

Well-known new Chinese news site The Paper recently reported that the British retail giant Tesco just announce the sale of a 20 percent stake in Gain Land to China Resources Group (also known as CRC). Gain Land is a joint venture between Tesco and CRC. This 275 million pound deal marked the final exit for Tesco in leaving the Chinese market. From the beginning, Tesco’s Chinese venture did not do well. It changed its strategy later and partnered with CRC to continue with its 135 branch stores. Tesco has been retreating from major overseas markets, including Japan, the United States, and South Korea. It is also looking at exiting Thailand and Malaysia. Tesco plans to focus its business on Europe. The company said that the income from the Chinese CRC deal will be used for day-to-day operations.

Source: The Paper, February 26, 2020
https://www.thepaper.cn/newsDetail_forward_6166629

Briefings | | |   Geo-Strategic Trend

BBC Chinese: Key Hong Kong Freedom Movement Leaders Detained

BBC Chinese recently reported that Hong Kong police just detained Hong Kong Next Digital Group founder Jimmy Lai Chee-ying, former HK Legislative Council Member and former Democratic Party Chairman Yeung Sum, as well as Lee Cheuk-yan, who is a former HK Legislative Council Member and current General Secretary of the Hong Kong Confederation of Trade Unions. The Hong Kong government accused them of participating in an unauthorized gathering. Both Lee and Yeung said to the media that they were mentally prepared for the arrest and that the people of Hong Kong have the right to demonstrate, which does not need police approval. Lee also pointed out that there were a large number of people in the demonstrations. It is hard to understand why he was singled out. The Police claimed there was no political intent behind these arrests. All three gentlemen are currently on bail, pending court hearings in May. None of them were the initiators of the freedom demonstrations.

Source: BBC Chinese, February 28, 2020
https://www.bbc.com/zhongwen/simp/chinese-news-51670403

Briefings | | |   Geo-Strategic Trend

Mongolia President Visited China and Was Quarantined after Returning Home

The President of Mongolia, Khaltmaa Battulga visited Beijing and met Xi Jinping on February 27, 2020. Battulga is the first foreign head to visit China after the coronavirus outbreak in China in January. Battulga, along with his Foreign Minister Tsogtbaatar Damdin and delegation met Xi Jinping and Li Keqiang. Battulga donated 30,000 sheep to China.

Right after the delegation returned to Mongolia on February 28, the whole group was quarantined as a measure to prevent coronavirus infection.

Source: Apple Daily, February 28, 2020
https://tw.appledaily.com/international/20200228/RARYOD2TG4NY6QNOWR3SMUK5EE/

Briefings | | |   Geo-Strategic Trend Social Stability

PLA Aircraft Flew Near Taiwan on February 28

On Friday afternoon, February 28, a number of China’s People’s Liberation Army (PLA) aircraft flew over the sea southwest of Taiwan, Taiwan’s Ministry of National Defense said.

An unspecified number of Chinese H-6 bombers flew over the region before entering the Bashi Channel between Taiwan and the Philippines. Soon after entering the Bashi Channel, the bombers returned to an unspecified base through the same route, the ministry said.

Since President Tsai Ing-wen (蔡英文) won re-election in January 2020, China has carried out an increasing number of drills near Taiwan .

On Feb 9 and Feb 10, China also dispatched Chinese J-11 fighters, KJ-500 early warning and control aircraft, and H-6 bombers on flight missions near Taiwan, the ministry said.

On Feb 10, several Chinese aircraft briefly crossed the median line of the Taiwan Strait and entered Taiwan’s airspace, but retreated to the western side of the line after Taiwan military dispatched F-16s and other military aircraft to meet them and issue radio warnings, the ministry said.

On Feb 12, the U.S. dispatched two B-52 Stratofortress bombers flying off Taiwan’s east coast, while an MJ-130J Commando II multi-mission combat transport plane flew over the Taiwan Strait.

On Feb 16, the U.S. sent the USS Chancellorsville south through the Taiwan Strait.

Source: Taipei Times, March 1, 2020
http://www.taipeitimes.com/News/taiwan/archives/2020/03/01/2003731871

Briefings | | |   Defense/Military Geo-Strategic Trend

PLA Ordered 1.4 Million Bullet Proof Vests

Apple Daily, a media based in Hong Kong, reported that the People’s Liberation Army (PLA) opened a bid for suppliers to provide 1.4 million bullet proof vests, including 930,000 general vests and 467,000 vests with enhanced functions. The price may be up to 13.4 billion yuan (US $1.92 billion).

Currently the PLA army has 13 armies, with 850,000 soldiers. This order, being the largest bullet proof vest order, will give an average of 1.65 bullet proof vests per person.

Some analysts thinks this was the PLA’s deterrence to Taiwan.

Also, China revealed its second 075-class amphibious assault ship at the Zhonghua Shipyard in Shanghai. This type of ship is designed for “military actions against Taiwan.”

Source: Apple Daily, February 26, 2020
https://tw.appledaily.com/international/20200226/2RLO6JRQWZ2JZWNI2WXZKAZPXU/

Briefings | | |   Geo-Strategic Trend

China Threatened Czech Republic That Its Companies Will Be Punished if Czech Senate Speaker Visits Taiwan

On January 10, China’s Embassy in the Czech Republic, sent a letter to the Czech President’s Office, stating that, if the Czech Senate Speaker Jaroslav Kubera visited Taiwan, Czech companies operating in mainland China, such as Volkswagen subsidiary Skoda Auto or lender Home Credit Group, would be punished.

Kubera died unexpectedly on Jan. 20, before his trip took place.

The letter stated, “Czech companies whose representatives visit Taiwan with Chairman Kubera will not be welcome in China or with the Chinese people.”

“Czech companies who have economic interests in China will have to pay for Chairman Kubera’s visit to Taiwan. China is the largest foreign market for many Czech companies like Skoda Auto, Home Credit Group, Klaviry Petrof and others.”

The Czech president’s spokesman confirmed the letter had been received but did not comment on its contents.

Source: Reuters, February 19, 2020
https://www.reuters.com/article/us-china-czech-taiwan/china-threatened-to-harm-czech-companies-over-taiwan-visit-letter-idUSKBN20D0G3

Briefings | | |   Geo-Strategic Trend

Carrie Lam Plans to Use Coronavirus Containment to Boost the Establishments’ Position in Upcoming Election

Apple Daily reported that it obtained a copy of a report that Hong Kong Executive Carrie Lam sent to Beijing. In the report, Lam mentioned that the coronavirus containment could be used to create a favorable environment for the establishment in the upcoming Legislative Council election in September.

The report said:

From the election politics, the Hong Kong Special Administrative Region (SAR) hopes to obtain citizens’ recognition and support by using the effective control of the epidemic in order to create a favorable environment for the establishment. Therefore, we are requesting the Central government to continue to assist the Hong Kong SAR to solve two urgent issues:

1. Allow specified mask and protective equipment manufacturers to continue to deliver supplies to Hong Kong and provide machinery and raw materials to Hong Kong manufacturers who set up local mask production lines.

2. Allow the SAR government to discuss with the Hubei Provincial / Wuhan Municipal government to arrange for Hong Kong people stranded in the local area to return to Hong Kong in batches.

If the Central government can support the completion of these two works, the Hong Kong SAR could retain its administrative reputation and also let the Hong Kong people feel the central government’s care under the ‘one country, two systems’ structure. (We) believe it will be a rare opportunity to change the situation before the Legislative Election in September.

Hong Kong’s Establishment (pro-Beijing group) suffered a big loss in the District Council elections last year because the SAR government took a hardline position against the Hong Kong protests and refused to respond to the public’s demands.

Source: Apple Daily, February 23, 2020
https://hk.appledaily.com/local/20200223/AUBAU7W7CNESCJQTRZAS5MN7RY/

Briefings | | |   Geo-Strategic Trend Social Stability

RTHK: Japan Strengthens Approval Process on Foreign Investments

Radio Television Hong Kong (RTHK, the top government-owned broadcasting organization of Hong Kong) recently reported that Japan plans to strengthen its review and approval process of foreign investments significantly. It will do this in 12 key categories, including national defense, nuclear, air and space, public services, natural gas, network security, and telecommunications. Foreign investments that will take a one percent or more stake in Japanese companies in these categories will require a review and approval first. The criteria used to be ten percent. There are around 400 to 500 publicly listed Japanese companies fitting the criteria. The Japanese government plans to announce the official list of companies in April. In the meantime, the Japanese congress is planning to pass a new law tightening up reporting requirements on foreign investments in national security related companies. Analysts expressed the belief that Japan is concerned that China is trying to obtain critical technologies. The Japanese Deputy Prime Minister pointed out that the new law is to address certain concerns on national security, but it is also designed to welcome more investments. The new approval process is expected to take effect in May.

Source: RTHK, February 21, 2020
https://news.rthk.hk/rthk/ch/component/k2/1509965-20200221.htm?spTabChangeable=0

Briefings | | |   Geo-Strategic Trend