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Xi Jinping: The People May Overturn the Government If the Taiwan Independence Issue Is Not Handled

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that Chinese President Xi Jinping delivered several unscripted messages during the summit with the visiting Taiwanese Kuomintang (KMT) Chairman Hung Shiu-chu in Beijing. When Xi expressed his determination to counter the idea of an independent Taiwan, he advised that “the Chinese people would overturn the government” if the Communist Party did not handle this independence issue. Xi mentioned that both the Mainland and Taiwan share the same traditional Chinese culture and he had high confidence in this shared cultural background. He also said China is very proud of its economic growth in the recent decades and is willing to share the fruits of this growth with Taiwan. Xi mentioned the goal of eliminating poverty in the Mainland by 2020 and that the improvements in the people’s living conditions should be at the “Nobel Prize winning level.”

Source: United Daily News, November 2, 2016
http://udn.com/news/story/10482/2062897

Briefings | | |   Geo-Strategic Trend

China Quietly Held the Central Hong Kong and Macao Working Conference

One of Hong Kong’s major pro-Beijing newspapers, Ming Pao, recently reported that it seems the central government secretly held the Hong Kong and Macao Working Conference from July 11 to July 12. There was no official report on this typically important conference before or after the event. The information was unintentionally leaked via the websites of the Bureau of Security Monitoring and the Bureau of Quality Supervision and Administration of Beijing’s Haidian District. These two bureaus were involved in the logistics of the Conference and reported some details in their running status news on their websites. There was no official report on any activity of President Xi Jinping for July 11. The Central Hong Kong and Macao Coordination Team leader Zhang Dejiang and his deputies – Li Yuanchao and Yang Jiechi, Director of the Hong Kong and Macao Office – Wang Guangya, as well as Zhang Xiaoming (Director of the Liaison Office of the Central Government in Hong Kong) and Hu Chunhua (Guangdong Provincial Party Secretary) all made no mention in public media of any activities during those two days in July. China has central government level working conferences for Taiwan, Tibet and Xinjiang – to discuss major policies and strategies in these regions. This was the first time to have one for Hong Kong and Macao.

Source: Ming Pao, October 26, 2016
http://news.mingpao.com/pns/dailynews/web_tc/article/20161027/s00012/1477504758888

Briefings | | |   Geo-Strategic Trend Government/Politics

Germans Are Apprehensive about Chinese Acquisitions of German Companies

Well-known Chinese news site Sina recently published two articles on the rapid growth rate of the number of acquisitions Chinese companies have been making in Germany. Recent statistics show that, as of the present time, Chinese buyers have acquired around 200 German companies. The acquisitions are mainly in the automobile, mechanical manufacturing, electronics, and injection molding industries. The German economy was slowing down after 2011 and that provided the opportunity for the Chinese to buy financially troubled German companies. The German Ministry of Economic Affairs has recently been asked to protect the domestic high-tech companies from having unwanted buyers acquire them, especially those from non-EU countries. Germany recently proposed a set of EU-level investment screening rules. Any EU government would be allowed to block any acquisition seeking over a 25 percent stake in a company. The rules also add more restrictions if the investor is state-subsidized or state-owned, or if the investor is from a country that has market-entry restrictions against German investors. Not long ago, the Chinese government established a new strategy called, “Made in China 2025,” which is behind all these Chinese acquisitions. The new strategy is apparently modeled after the German “Industrial 4.0” strategy.

Source: Sina, October 23, 2016
http://finance.sina.com/gb/usstock/sinacn/20161023/17271513368.html
http://finance.sina.com/gb/economy/sinacn/20161023/21031513533.html

Briefings | | |   Geo-Strategic Trend

BBC Chinese: Former General Proposed Reunification of Taiwan by Force

BBC Chinese recently reported that Wang Hongguang, former Deputy Commander of the Nanjing Military Region, wrote a strategy paper proposing that the Mainland military initiate preparations for an armed invasion for the reunification of Taiwan. Wang stated that, after she took office, newly elected Taiwanese President Tsai Ing-wen refused to mention the “One China Principle.” Instead, she repeatedly said things like, “Taiwan will not yield to China’s pressure.” According to China’s Anti-Secession Law, one of the conditions for an armed invasion is “the disappearance of the possibility of a peaceful reunification.” Wang declared that the Mainland will never “swallow the bitter fruit” of an independent Taiwan. However, analysts in Taiwan expressed their belief that it’s very unlikely the Mainland will conduct any meaningful military attacks any time soon, since China just started its military reforms at the beginning of the year, changing seven “military regions” to five “military theaters.” Major changes like this will require significant readjustments in organization, tactical strategy, and equipment. Given the size of the Mainland military, the adjustments will not be completed and the military will not be ready for war until after 2020.

Source: BBC Chinese, October 21, 2016
http://www.bbc.com/zhongwen/simp/china/2016/10/161021_taiwan_china_military

Briefings | | |   Defense/Military Geo-Strategic Trend

UDN: Kim Jong-un Did Not Show Up for North Korean Party Anniversary

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that North Korean dictator Kim Jong-un did not attend any of the traditional ceremonies that were held on October 10 for the 71st Anniversary of the North Korean Workers’ Party. None of the North Korean official news media reported Kim’s whereabouts for that day. In the past years, the nation typically had a Report Conference of the Central Party Assembly one day before the Anniversary Day. However, this year there has been no mention of it so far. Labor News, the official newspaper of the Workers’ Party, did report that, on the Anniversary Day, some high ranking officials presented flowers in Kim’s name at the Fairview Hill Sun Palace. North Korea just completed a nuclear test in September and between October 10 and October 15, South Korean is having a joint military exercise with the United States.

Source: United Daily News, October 11, 2016
http://udn.com/news/story/6809/2016618

Briefings | | |   Geo-Strategic Trend

BBC Chinese: Russia is to Sell India S-400 Missiles

BBC Chinese recently reported that officials from the Kremlin announced that Russia and India are about to reach a major agreement for India to obtain S-400 air defense missile systems. The S-400 is the most advanced air defense system Russia has. Russian President Vladimir Putin and Indian Prime Minister Narendra Modi are expected to sign the deal at the BRICS Leadership Summit held in India. Currently the S-400 air missile defense system is being deployed in Syria, where Russia is supporting the Assad government. The two countries are also planning to discuss wider topics, especially trade relations. More agreements may be signed in the future. During the Cold War, Russia and India used to be close allies. Since 2000, they have had routine annual leadership talks.

Source: BBC Chinese, October 14, 2016
http://www.bbc.com/zhongwen/simp/world/2016/10/161014_india_russia_missile

Briefings | | |   Geo-Strategic Trend

People’s Daily: China’s and Russia’s Militaries Join Forces to Oppose U.S. Deployment of “THAAD” in South Korea

At an October 11 China and Russia joint briefing on the anti-missile issue, the military representatives of both countries agreed that the United States unilaterally developing a multi-level missile defense plan would undermine the global strategic balance and regional security and stability. Both countries agreed to deepen anti-missile cooperation.

Military expert Meng Xiangqing pointed out that China and Russia have repeatedly issued joint statements on the issue of the United States’ deployment of anti-missile systems. However, this is the first time that both countries held a joint briefing to show their stance. Meng Xiangqing believes that this briefing releases three signals: First, it shows that China and Russia’s position in opposing the U.S. deployment of the “THAAD” anti-missile system in South Korea is consistent. Second, it is an opportunity to urge the United States and South Korea, in a strong statement, to change their decision. At the same time it is to warn the international community and urge the international community to pay more attention to the damage and instability that “THAAD” has brought to the Korean Peninsula and Northeast Asia. Third, both countries issued contents about further cooperation in opposing the “THAAD” anti-missile system, including that the two armed forces will conduct a second anti-missile exercise in 2017.

Source: People’s Daily, October 14, 2016
http://military.people.com.cn/n1/2016/1014/c1011-28777828.html

Briefings | | |   Defense/Military Geo-Strategic Trend

Why Kim Jong-un is not Afraid of China’s Sanctions

Well-known Chinese online military news site Folk Military recently posted a commentary analyzing why North Korea’s dictator Kim Jong-un is not worried about China’s sanctions under the UN resolution. The Chinese government sponsors Folk Military. This commentary is the first government-backed article that has publicly criticized Kim Jong-un and has not been removed based on government censorship. The author expressed the belief that Kim is still overwhelmed by the false impression of domestic political control established over generations of dictatorship. Furthermore, China has largely provided life support for North Korea and the Chinese supply hasn’t really been cut. However, the article warned that the current attitude Kim is displaying against China is endangering his support from China and the Chinese leadership. Chinese President Xi Jinping especially may not be willing to give him too much time to wake up.

Source: Folk Military, September 24, 2016
http://www.folkw.cn/a/20160924/4177.html

Briefings | | |   Geo-Strategic Trend