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Japanese Embassy in China Received 1 Million Harassing Phone Calls

During the two months following the start of wastewater discharge by Tokyo Electric Power’s Fukushima Daiichi nuclear plant, the Japanese embassy in Beijing has received approximately 1 million harassing phone calls from within China. The Japanese government asked China to address the situation as it was interfering with the embassy’s normal operations, but the problem persists.

The embassy investigated the calls and found that over 40,000 of them were made on August 25th, the day after discharge into the Pacific Ocean began. The volume of harassing phone calls decreased by the end of August. At present, the embassy is still receiving about 10,000-15,000 such calls per day.

Most of the calls involve verbal abuse, silence, or explicit threats against Japan or the Japanese embassy (e.g. threatening to “blow up [the embassy]”). The embassy documented malicious phone numbers and reported them to China’s public security authorities.

At a Japan-China relations forum on October 20th, Ambassador Hideo Tarumi acknowledged the harassing calls and said “rationality” was needed to advance bilateral relations.

Chinese law stipulates that frequent harassing calls interfering with normal life can incur legal liability.

Source: Kyodo News, October 27, 2023
https://china.kyodonews.net/news/2023/10/80198c16ac64.html

Briefings | | |   Geo-Strategic Trend

Sing Tao: Nomura Re-examines Its China Strategy

Primary Hong Kong news media Sing Tao News Group recently reported that leading Japanese securities firm Nomura is re-examining its Shanghai joint venture strategy as its business losses in China continue to worsen. The firm’s subsidiary Nomura Orient International Securities (NOIS) has followed the lead of Morgan Stanley and Goldman Sachs in terms of its shrinking footprint in China: management reorganization and layoffs have occurred, and many employees have resigned. In the meantime, Nomura has cut loose about 10 Hong Kong-based investment bankers, including some who focused on China-related deals. The Hong Kong layoffs were announced very recently and affected both junior and senior bankers, including managing directors and executive directors. Kenji Teshima, chairman of Nomura’s China Business Committee, said that now is a good time to review and re-evaluate the business.

China’s Zero Covid restrictions during the pandemic seriously affected the business’ expansion during that time. More recently, the market environment has undergone major changes that affect Nomura’s operation in China. The profitability of NOIS has continuously deteriorated since its establishment at the end of 2019.

According to available documents, the losses of NOIS more than doubled last year. Although the organization’s client list and assets under management continued to grow, successive years of losses have caused concerns among Nomura’s partners. Moreover, many department heads working for NOIS have resigned since the beginning of this year, including the heads of wealth management, compliance and risk management.

Source: Sing Tao, October 26, 2023
https://std.stheadline.com/realtime/article/1960012/

Briefings | | |   Economy/Resources Geo-Strategic Trend

Opinion: Chinese Youth Have No Opinions, They Just Follow CCTV Ideology

A a post on Chinese website Zhihu argued that Chinese youth do not have opinions of their own; their opinions are solely based on what the Chinese Communist Party’s mouthpiece China Central Television (CCTV) has taught them. The posting was removed by internet censors. The following translation is based on a copy of the post published to Twitter:

In the Russia-Ukraine War, why do most Chinese people support Russia? In the Israel-Hamas conflict, why do most support Hamas? In pandemic control, why did most people support the zero-COVID approach? The conclusion is the same in all cases: most people are “the New Youth” or “the CCTV Youth.” They believe whatever is said on CCTV. In reality, they don’t [really] support Russia, Palestine, or the zero-COVID approach; they’re simply supporting the CCTV’s news broadcast.

[Back in 2022] these people supported the zero-COVID policy and even had a full-scale online fight against those who suggested alternatives such as “coexistence with the virus.” But when CCTV announced that zero-COVID controls would be lifted and society would open up, what happened? Nothing! The zero-COVID policy supporters held no protests, they did not argue in favor of the policy, and they did not have any inclination to fight for it. There was no resistance at all. Those people did not dare to have an opinion [different from what was on CCTV]. So, in reality, China does not have pro-Russia camp, a pro-Hamas camp, or a zero-COVID camp; these positions are all temporary. The only dominant camp is the “CCTV Youth” camp.

Source: Twitter @zhanglifan, October 22, 2023

Briefings | | |   @CS Geo-Strategic Trend

China Alienates Israel: Picking Sides by Bloc, Not by Country-Level Relationship

Zhang Ping, a Chinese scholar living in Israel, posted a tweet on X about why China has chosen not to condemn Hamas, alienating Israel following the start of the Israel-Hamas war. China made this decision despite good relations between Israel and China in the past.

Zhang Ping said that the world’s nations are now bifurcating into two blocs: the China-Russia-Iran camp, and the opposing camp led by the U.S. and its allies (including Israel). This bloc-based logic is now guiding China’s strategy for international relations.

In the past, China’s modus operandi was something like “which camp you belong to doesn’t matter; what matters is whether our relationship is good.” Recently, however, China’s operating principle has changed to “our relationship does not matter; what matters is which camp you belong to.” According to Zhang Ping, this shift in attitude started during the Russia-Ukraine War and has further developed during the recent Israel-Hamas war. Both Israel and Ukraine had good relations with China in the past. However, once conflicts arose, China chose to use bloc membership as its guiding principle, being unwilling to support either Ukraine or Israel.

During the time of globalization prior to these recent wars, individual relationships between countries held more weight [in Beijing’s eyes] than did bloc allegiances. This enabled countries, including Israel and Australia, to engage with China despite their being U.S. allies. Both Israel and Australia provided strategic port access to the Chinese, with Israel even allowing China a certain amount of control over two of its largest strategic ports in Haifa and Ashdod. Now, however, China will not support these countries no matter how good their past relations have been, as they belong to the Western camp rather than the Chinese camp. Meanwhile, European nations relied on Russia for their energy needs in the past, whereas the West has unified against Russia following the Russian invasion of Ukraine in 2022.

Source: Twitter @pingzhang632, Oct 17, 2023

Briefings | | |   @CS Geo-Strategic Trend US-China Relations

Chinese Authorities Detain Employee of Japanese Rare Metal Company

Chinese authorities have detained two Chinese nationals, one of whom was employed by Nippon Kinzoku, a Japanese metal trading company. The other detainee worked for a Chinese state-owned enterprise. Both companies are engaged in the rare metal businesses. {1}

The arrests may have been motivated by suspicion that the detained individuals have leaked technical information related to rare earth metals. Beijing regards such metals as a strategic resource and is tightening its control over export of the metals as well as associated technical knowledge. {2} Such metals are crucial for powering electric vehicles.

These recent detentions may result in increased pressure on the companies in question.

Sources:
{1} Kyodo News, October 23, 2023
https://china.kyodonews.net/news/2023/10/2d08f984450d.html

{2} Chinascope, October 24, 2023

Lianhe Zaobao: China Further Restricts Export of Graphite Products

Briefings | | |   Economy/Resources Geo-Strategic Trend Government/Politics

Mitsubishi Motors to End Car Production and Sales in China

The Japanese Mitsubishi Motors Corporation announced on October 24th that it will end production of vehicles in China, and that it will end car sales in China once the company’s existing inventory is depleted. The company’s decision was driven by the rapid rise of local Chinese electric vehicle (EV) companies (negatively impacting Mitsubishi’s own EV car sales) as well as the downturn in sales of Mitsubishi’s gasoline cars.

Mitsubishi’s board of directors has finalized the withdrawal from China; the company’s 2023 fiscal year statements will include a 24.3 billion yen (approx $172 million) special loss from the departure. Going forward, Mitsubishi intends to focus its resources on the market in Southeast Asian.

Mitsubishi launched a new Outlander hybrid vehicle in China in December 2021 but sales fell short of expectations. From January to August 2022, Mitsubishi’s sales in China almost halved, dropping 47.6% year-over-year. Besides Mitsubishi, other Japanese automakers are also lagging in terms of EV sales within China. Local giant BYD and Tesla dominate China’s EV market. Research firm MarkLines stated that in 2022, Chinese automakers accounted for 51% of passenger car sales within China, while Japanese automakers had only an 18% share of the market.

Mitsubishi’s joint venture GAC Mitsubishi Motors and its plant in China’s Hunan Province, which produced gasoline vehicles, stopped production in March. Mitsubishi will sell its shares in the joint venture and dissolve the partnership, though Mitsubishi’s other joint ventures in China will continue engine production.

Source: Kyodo News, October 24, 2023
https://china.kyodonews.net/news/2023/10/db6e9f1790e0.html

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: China Further Restricts Export of Graphite Products

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that Beijing has expanded the list of Chinese-made graphite-based materials that are subject to export controls. Such products are used in the production of electric vehicle batteries, and may not be exported from China without permission.

The updated graphite export controls were published by the Chinese Ministry of Commerce and the General Administration of Customs of China. The measures “optimize and adjust the temporary export control of certain graphite products.” The controls newly included three “highly sensitive” graphite products in a dual-use export control checklist.

Spheroidized graphite, which was previously subject to temporary controls, was included in the updated list. Graphite products subject to export controls now include artificial graphite materials of high purity (99.9+ percent purity), high strength (flexural strength 30Mpa), and high density (1.73 grams per cubic centimeter), as well as derivative products of these materials. Also restricted is natural flake graphite and its derivatives (including spheroidized graphite, expanded graphite etc.).

According to the U.S. Geological Survey, China is currently the world’s largest producer of graphite, accounting for 67 percent of the world’s natural graphite supply. A spokesperson for China’s Ministry of Commerce said that “China, as the world’s largest producer and exporter of graphite, has long firmly fulfilled its non-proliferation and other international obligations and implemented export controls on specific graphite items in accordance with the need to safeguard national security and interests.”

Source: Lianhe Zaobao, October 20, 2023
https://www.zaobao.com.sg/realtime/china/story20231020-1444412

Briefings | | |   Economy/Resources Geo-Strategic Trend

China Rushing to Buy Up Wheat Via Foreign Trade

Chinese stock market news site Stock Star recently reported that China is scouring the world for wheat, with annual imports on track to hit a record high as recent heavy rains have damaged domestic crops. Wheat traders say that China has ordered large quantities of wheat in October, buying from a number of major exporters including the United States, Canada and France. The current buying spree follows high-volume wheat purchases from Australia earlier this year.

Growing wheat demand from China is adding uncertainty to supply chains that are increasingly vulnerable to war and protectionist trade policies. Chinese imports totaled a record 9.96 million tons last year as the agricultural sector shifted to use more wheat as animal feed and Chinese citizens ate more bread. China is currently competing with Egypt to become the world’s largest Wheat importer. Chinese overseas procurement volume in the first eight months of 2023 has reached 9.56 million tons, of which more than 60 percent came from Australia.

China’s summer wheat output fell by 0.9 percent this year to 134.53 million tons, the first decline in seven years. Continued rains have caused the quality of 30 million to 40 million tons of wheat to deteriorate as this year’s crops near harvest, making the grains suitable for livestock feed but unsuitable for human consumption. Much of China’s recent buying activity has resulted from these weather problems.

Source: Stock Star, October 12, 2023
https://wap.stockstar.com/detail/IG2023101300008165

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