Geo-Strategic Trend - 97. page

Radio Free Asia (RFA) Chinese Edition recently reported that Swedish technology company Micro Systemation AB (MSAB) announced its plan to leave the Hong Kong market and will no longer provide technical solutions to the Hong Kong Police and other Hong Kong government agencies. MSAB made its name in Hong Kong by assisting the police department in unlocking phones. MSAB also intends to leave the entire Chinese market. The company explained that the decision was made based on the fact that the U.S. dropped Hong Kong’s special status. It would rather not risk the possibility of suffering a U.S. sanction. MSAB’s technology resulted in some recent arrests of Hong Kong pro-democracy activists, so the company is facing heavy criticism. At the same time, Canadian financial asset management company BMO and the Denmark retirement fund management company Akademiker Pension also announced plans to leave the Chinese investment market, including Hong Kong.

Source: RFA Chinese, September 24, 2020
https://www.rfa.org/cantonese/news/htm/hk-evacuate-09242020072640.html

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that President of the Philippines Rodrigo Duterte said in his UN speech that The Hague International Arbitration Tribunal’s 2016 South China Sea award cannot be challenged or downplayed. The Philippines is strongly against any attempt to destroy the Tribunal’s Ruling. Duterte did not name China in his speech. China did not honor the Tribunal’s award. However, the Duterte government took a pro-China approach when it came to power in 2016 with the hope of building a better relationship with China. The Philippines largely put The Hague’s South China Sea award on hold since then. In the past several months with the Covid pandemic, the Duterte government has started to lean towards the United States. Experts expressed the belief that the foreign policies of the Philippines are apparently changing.

Source: Lianhe Zaobao, September 23, 2020
http://www.uzaobao.com/cngov/2020-09/2378336.html

The Canadian Security Intelligence Service (CSIS) investigation shows that at least 15 Canadian scholars participated in Beijing’s “Thousand Talents Program.” They included experts in quantum computing, electronic engineering, vaccines, chemistry and artificial intelligence.

Professor Margaret McCuaig-Johnston of the University of Ottawa believes that this number is substantially underestimated. She said that all major Canadian universities have many research projects in which they are collaborating with China, including artificial intelligence, robotics, and quantum optics. These are areas of great interest to the Chinese military. China will pass the Canadian academic research results to the military whether in the open or privately through these collaborating scholars.

Gu Ming (a pseudonym), who once served for years as a senior executive in the Canada-China Society of Science and Technology (CCSST), told Radio Free Asia that more than two decades ago, the Chinese government established overseas bases and deployed Chinese Communist Party (CCP) organizations to learn or steal Western technology. There are CCP branches in well-known Canadian universities such as the University of Toronto and the University of British Columbia. CCSST is one of the liaison organizations. “These people (in CCSST) are here to do research and study for a Ph.D. They were paid by the state, and there are CCP branches there. China uses these associations to contact foreign research institutions and senior research scholars. Then they either invite the scientific and technologically talented to do research in China or they buy the scholar’s knowledge. If they can’t buy the knowledge they need, they try to steal it. To put it bluntly, China started employing this strategy more than 20 years ago.”

The Canadian authorities are well aware of the situation. For example, the Conference Board of Canada published a report in 2016, claiming that the “Thousand Talents Program” provides salary, research funding and other incentives to participants, who the carry out research and other activities in Chinese and overseas universities. In recent years, after discovering evidence of technology transfers, the Canadian Security Intelligence Service has discussed (this issue) with universities and other research institutions, expressing its concerns about the “Thousand Talents Program” and other foreign recruitment plans.

Source: Radio Free Asia, September 21, 2020
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/lf-09212020161552.html

Caroline Wilson, the newly appointed British ambassador to China, will take office this month. Before leaving for Beijing, the senior diplomat posted a photo on her Twitter account. In the photo, she and the Chinese ambassador to the UK held a book that glorifies the head of the Chinese Communist Party, Xi Jinping. The tweet raised questions about whether she could promote and safeguard British values and interests.

Wilson said on her twitter account: “Valuable meeting with @AmbLiuXiaoMing before heading to Beijing. We can and must work for ambitious UK-China collaboration, on climate, health, trade, and also engaging on trickier topics too. I look forward to supporting a mature, positive UK-China relationship, in line with UK values.” The book The Governance of China, which Xi Jinping authored, presents the official party line for the Chinese government.

Wilson’s tweet and photo soon attracted hundreds of comments. Only a few comments praised her as “the best candidate for this absolutely critical position.” The vast majority of netizens believed that this tweet was extremely untimely.

“UK values in this particular book? Good luck …”

“Ah, the little book of Chairman Xi. Just the perfect analogy to the little red book of Chairman Mao.”

“Some individuals still don’t understand the CCP; good luck trusting the CCP.”

“British values and Xi Jing Ping Thought. Round peg in a square hole.”

“Hardly imagine this can happen to the new ambassador when the whole world is condemning #CCP for its move in suppressing human rights in #HongKong and #Xinjiang. #TakeDownTheCCP”

“Why not change with George Orwell’s “1984” with it? it’s a completely forbidden No entry sign in mainland china now.”

Nathan Law, one of the student leaders during the 79-day Umbrella Movement in 2014 in Hong Kong, now living in London following the National Security Law that Beijing enacted, commented, “This looks terrible. Accepting ‘Xi’s speech’ from this awful ambassador — I see it as an insult to the democratic values that we all share. Stop helping the CCP to spread its propaganda and infiltrate the democracies. This is an extremely bad move from the new British Ambassador.”

Roger Garside, a former British diplomat and author of Coming Alive: China After Mao“ said, “As a former British diplomat myself, who served twice in Beijing, I am appalled by this behavior of our Ambassador-designate to the PRC… It goes beyond anything I have witnessed from a British diplomat.”

Garside summed up the reaction to Wilson’s tweet as a “stream of well-deserved outrage.”

Source: Voice of America, September 18, 2020
https://www.voachinese.com/a/uk-ambassador-china-stirs-uproar-photo-promoting-xi-jinping-20200918/5589689.html

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the Canadian Minister of Foreign Affairs, François-Philippe Champagne, commented in an interview with the Globe and Mail on Canada’s Free Trade Agreement with China. He concluded that there is no value in continuing the negotiation and so Canada has given up on the process. The negotiation started four years ago when Prime Minister Justin Trudeau visited China. Champagne expressed the belief that the current political conditions are not suitable for further discussions. Prime Minister Trudeau has been under heavy domestic criticism for giving up too many of Canada’s principles in exchange for China’s business opportunities. Earlier, Champagne described China’s style of pushing foreign relationships as “arbitrary” and “coercive.” (Editor’s note: Sina’s report did not mention that, in the same interview with the Globe and Mail, Champagne stated Canada’s first priority is to bring home Michael Kovrig and Michael Spavor. In in June, in retaliation for Canada’s detention of Huawei’s CFO Meng Wanzhou, the Chinese Communists charged the two Michaels with espionage.)

Source: Sina, September 19, 2020
https://news.sina.cn/2020-09-19/detail-iivhvpwy7616303.d.html

The Kuomintang originally planned that Wang Jin-pyng, the former legislator, would lead a delegation to Xiamen of Fujian province to participate in the Straits Forum on September 16. However, Li Hong, a CCTV host of “Across the Strait” commented that Wang’s visit to the mainland was “to seek reconciliation.” The statement triggered criticism of the Kuomintang in Taiwan. Johnny Chiang, the Kuomintang chairman demanded an apology from Li Hong. Although Li later on responded that she meant that the visit was to seek “peace” not “reconciliation,” [Editor’s note: “和” in Chinese carries multiple meanings including reconciliation, harmony or peace] she was unable to quell all parties’ doubts. On September 14, the Kuomintang announced that, for the first time since the Straits Forum started 12 years ago, it would not participate in the “Straits Forum” as a political party; however, each party member could decide for himself whether to participate.

China has hosted the “Straits Forum” since 2009. In the past, the chairman of the National Committee of the Political Consultative Conference would attend the opening ceremony. For the past 11 years, the Kuomintang sent a vice chairman to lead a delegation. Hung Hsiu-chu personally led a delegation when she was the Chairman. This year Johnny Chiang was elected the Chairman of the party without a Vice Chairman so Wang Jin-pyng, former legislative member, was selected to attend the “Straits Forum.”

Source: Radio Free Asia, September 14, 2020
https://www.rfa.org/mandarin/yataibaodao/gangtai/hx-09142020085643.html

The Australian National University’s (ANU) Chinese Investment in Australia (CHIIA) database reported the total investments from China in 2019 were 2.5 billion Australian dollars (US$ 1.8 billion). This was about half of the 4.8 billion Australian dollars (US$ 3.5 billion) invested in 2018.

The inflow of Chinese money reached its peak of nearly 16 billion Australian dollars (US$ 11.7 billion) in 2016, and has since fallen sharply. Most industries saw dramatic declines in 2019, including real estate, mining and manufacturing. Investment in agriculture declined, but the construction and financial industries rebounded slightly.

ANU professor Peter Drysdale, head of the CHIIA database project, reckoned that there were a multitude of factors behind the plunge.

As Chinese companies are increasingly focusing on developing markets and Beijing is trying to prevent capital outflows, in 2019, foreign direct investment from China fell by nearly 10 percent globally. The decline in Australia was even more severe, partly because of the end of the mining boom (which brought a lot of money from China).

Professor Drysdale added that the government’s new regulatory barriers have also pushed away Chinese investors. In recent years, China’s investments in Australia have attracted heated political debates. The Australian Federal Government has generally strengthened its review of foreign investment. Earlier this year, the Treasurer of Australia, Josh Frydenberg, introduced new restrictions to prevent overseas companies from targeting troubled Australian assets due to the economic impact of the coronavirus pandemic.

The largest transaction that CHIIA recorded in 2019 was Mengniu Dairy’s acquisition of Bellamy, an Australian infant formula manufacturer, at 1.5 billion Australian dollars (US$1.1 billion). Last month, Frydenberg blocked Mengniu’s acquisition of the Australian company Lion Dairy and Drinks, claiming the deal was “contrary to their national interest.”

The political relationship between Australia and China has also turned increasingly hostile. The two countries have seen a series of issues, including foreign infiltration, Australian journalists harassed in China, cyber espionage, trade, Hong Kong issues and the COVID-19 outbreak. Professor Drysdale expected a further decline in Chinese investments in Australia in 2020.

Source: Australian Broadcasting Company Chinese, September 14, 2020
https://www.abc.net.au/chinese/2020-09-14/chinese-investment-in-au-takes-nosedive/12661168