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Kyodo News: More than 40 Percent of Japanese Companies to Adjust Their Supply Chains

According to Kyodo News, the results of a survey show that more than 40 percent of the 96 Japanese companies that are recognized by the Japanese government as possessing critical technologies are adjusting their supply chains, including parts procurement and their supply networks. They are promoting the diversification of production bases and suppliers away from China.

The survey targeted 150 companies, all of which are listed companies that possess security-related technologies in the field of information and communication. Japan’s “Foreign Exchange and Foreign Trade Law” stipulates that foreign investors need to submit an application in advance when making capital contributions into these firms, whose stocks have been adopted by the Nikkei Index. Among the 96 that responded, 42 companies, or 44 percent, have implemented and discussed the diversification of their supply chains away from China and into Southeast Asia and India.

The Japanese government calls for the overseas production bases to be moved back home as a part of mitigating “China risks.”

Source: Kyodo News, December 30, 2020
https://china.kyodonews.net/news/2020/12/b1ea80573e7c-4.html

Briefings | | |   Geo-Strategic Trend

India “Informally” Asked Airlines not to Bring Chinese Passengers

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, according to multiple Indian media sources, the Indian government has informally asked all airlines not to fly in any Chinese customers. This includes domestic airlines as well as foreign airlines. Currently there are no direct flights between China and India, but most Chinese travelers come from Europe. Some airlines asked the Indian government to provide them something in writing so that they can offer some official proof when cancelling legitimate customers’ flights. This appears to be a strong retaliatory response from India to China. At the beginning of December, China banned travelers from the UK, Russia and China, citing temporary pandemic related concerns. In the meantime, around 1,500 Indian seamen were stuck in the Chinese port of Jingtang for months since the ships were not allowed to disembark the sailors or to leave the port.

Source: NetEase, December 28, 2020
http://mp.163.com/article/FUUV83DK05503FCU.html

Briefings | | |   Geo-Strategic Trend

BBC Chinese: British Public Opinion on China Has Changed Drastically

BBC Chinese Edition recently reported, based on a newly released survey report which polled 13 European country residents on British public opinion, that, during this time of the pandemic, the people in Britain have changed their minds significantly about China. The report was published jointly by the Central European Institute of Asian Studies (CEIAS) and the Chatham House. According to the report, currently 62 percent of the British people surveyed have a “negative” impression of China. This number is only behind Russia and North Korea. This is also the highest number among the 13 European countries. In the meantime, over 68 percent of the people polled said China’s image has gotten worse in the past three years. The worsening Chinese image may result mostly from the pandemic. However, the situation and the wide reports on Hong Kong and Xinjiang have also played an important role. The pressure in the UK to take a more hawkish stance against China has not been so strong for a long time. During the pandemic, Liu Xiaoming, the Chinese ambassador to Britain, said earlier at an online press conference, “China has not changed. The responsibility for the difficulties between China and UK rests solely with the United Kingdom.

Source: BBC Chinese, January 1, 2021
https://www.bbc.com/zhongwen/simp/world-55498296

Briefings | | |   Geo-Strategic Trend

Xinhua: UK Faces Major Challenges Even under the New Agreement with EU

Xinhua recently reported that the British government finally reached an agreement with the European Union, leaving the “No-Deal Brexit” cloud behind. However, the Brits may have several tough challenges ahead of them. At the top of the list of troubles is Scotland being unhappy with the new agreement and the call for Scotland’s independence has intensified. The second major issue is the agreement’s lack of coverage of financial services. Britain is currently the world’s largest net financial service exporter. Forty percent of its financial services serve the EU, including banking, finance, insurance and telecommunications. It appears the EU may not allow the UK to keep the EU single market benefits without assuming obligations. The third big problem for Britain is the difficulties it has on trade agreements with other countries. Other than Japan and Canada, the British government has made little progress with key trade partners like the United States, Australia and New Zealand. Simultaneous talks are still on-going but moving very slowly. According to the British Office for Budget Responsibility (OBR), in the next 15 years, the British economic growth may be four percent less than would be the case if it stayed within the EU.

Source: Xinhua, December 26, 2020
http://www.xinhuanet.com/world/2020-12/26/c_1126911308.htm

Briefings | | |   Geo-Strategic Trend

LTN: Over 10 Million Chinese Emigrated in 2019

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, according to the newly released IOM (International Organization for Migration) global report, in 2019, around 10.7 million people from China emigrated to foreign countries. China ranked number three in the world, after India and Mexico. The Report indicated that, in 2019, over 40 percent of the world’s immigrants came from Asia, mainly India, China, Bangladesh and Pakistan. Most Chinese emigrants moved to the United States, Japan, Canada and Australia. By the end of 2019, there were over three million Chinese immigrants living in the U.S., the second largest number after Mexico, which has major illegal immigration issues. Education is the primary driver for the Chinese immigrants, whose average age got consistently younger over the past ten years. New York immigration lawyer Guo Jin explained that, from his experience, a lot of Chinese parents simply could not accept their kids getting brainwashed.

Source: LTN, December 26, 2020
https://news.ltn.com.tw/news/world/breakingnews/3393193

Briefings | | |   Geo-Strategic Trend Social Stability

RFA Chinese: Hong Kong Experiencing Unprecedented Wave of Emigration

Radio Free Asia Chinese Edition recently reported on multiple statistics that showed that Hong Kong is currently facing an unprecedented wave of emigration. In the past two years, more and more Hong Kong residents planned to emigrate. However, with the introduction of the Hong Kong National Security Law, those plans are now actually turning into reality. In May, inquiries on Canadian immigration, HSBC offshore accounts, Citibank overseas accounts, as well as BNO (British National Overseas) passports have skyrocketed. Right now, the Hong Kong police are issuing a record-high number (during the pandemic months)  of Certificates of No Criminal Record, which is usually the last required step for emigration. Most of the people leaving are middle class residents. The wealthiest need more time to sell tied-up local real-estate and the low-income residents cannot afford the emigration costs. The first major emigration wave came after Hong Kong’s return to China, when most of those emigrating did so based because of a lack of confidence; many families only sent members like children overseas. This new round sees more situations of complete families fleeing. The biggest concern is still the worry about children being brainwashed.

Source: RFA Chinese, December 17, 2020
https://www.rfa.org/mandarin/yataibaodao/gangtai/ac-12172020005741.html

Briefings | | |   Geo-Strategic Trend Social Stability

Kwongwah Daily: The U.S. Sponsored Mekong Dam Monitor Plan

Kwongwah, which is Malaysian-based, is the world’s oldest privately owned Chinese daily newspaper. It recently reported that the U.S. State Department sponsored the Mekong Dam Monitor Plan, which it just introduced. The Mekong River, also known as the Lancang River in China, is 4,350 kilometers in length and flows southward through Myanmar, Laos, Thailand, Cambodia and Vietnam. The Plan will use satellites to track the Chinese dam water level of the Lancang River in the upper Mekong, as well as the water levels of the dams in the downstream countries. The Plan will also collect data on surface humidity in the region and the natural water flow volume of the Mekong River. All data will be shared with the general public. Scientists working on the Plan explained that the Chinese dams are carefully designed to maximize the power generation to supply Eastern China. Monitoring data showed the design did not consider the impact on the downstream countries. That impact affects a total population of 60 million people, who depend heavily on the Mekong for fishing and agriculture. China disagreed with this assessment. Sun Yat-sen, the founder of the Republic of China, established Kwongwah Daily 110 years ago.

Source: Kwongwah Daily, December 14, 2020
https://bit.ly/3nAcdLs

Briefings | | |   Economy/Resources Geo-Strategic Trend US-China Relations

Wang Yi Said any Issues between China and the U.S. Can Be Discussed, including Taiwan

China Review News Agency published a “Quick Commentary” in which it stated that, on the 7th, State Councilor and Foreign Minister Wang Yi held a video exchange with a delegation from the US-China Business Council’s Board of Directors. He put forth five suggestions on promoting the healthy and stable development of Sino-US relations, including opening up dialogues at all levels and strengthening communication. He expressed that any question can be raised at the negotiation table, including strategic, overall, and long-term issues. Discussions could also start on specific issues to seek breakthroughs and solutions.

He pointed out that the new US government will come to power on the 20th of next month. Therefore, this is an opportunity for China and the United States to reverse or ease the tense relations from the past three years. In addition to Wang Yi, Cui Tiankai, the Chinese Ambassador to the United States, and Fu Ying, the former Deputy Minister of Foreign Affairs, also recently sent out messages to promote talks, calling for the promotion of Sino-US relations to be put back on track.

Wang Yi pointed out that any issue between China and the United States can be brought to the table for discussion. His attitude seemed quite proactive and open, showing that the Chinese side is confident and determined. He pointed out that any issue could be discussed, including Taiwan and that, in recent years, the Trump administration has frequently played the “Taiwan card.” As part of the U.S. policy to contain China and decouple from China, the Taiwan Strait is most likely to become a tipping point for China and the United States, and communication and control are urgently needed.

Many people expect that the new US government will not easily let go of the “Taiwan card,” but they do not rule out the gradual adjustment of policies under pressure from China. In the past, between 2005 and 2008, in the late Bush administration, China and the United States once formed a situation of joint control and containment of “Taiwan independence.” Now, China has more strength and determination to crack down on any external intervention and crack down on the separatist activities of those who favor “Taiwan independence.”

China’s side has taken the initiative to send out messages and appeals to promote talks, and it is also preparing for the opening of dialogues at all levels between China and the United States. Biden’s victory did bring a turning point for returning Sino-US relations to the right track and a resumption of dialogue between the two sides can be expected. Enhancing communication will make it possible for both sides to manage differences and to expand the convergence of interests effectively, which will be beneficial to the stability of the situation across the Taiwan Strait. [Editor’s note: This report, which was on a number of major Chinese media websites on Dec. 8, 2020, shows how confident Wang Yi is on Biden’s victory and on the Biden administration’s cooperation. This report can be no longer be found online but has been archived.

Source: http://news.stnn.cc/hk_taiwan/2020/1208/810846.shtml

Briefings | | |   Defense/Military Geo-Strategic Trend Government/Politics US-China Relations