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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

CCP Reduces Functions of China’s Central Bank

China’s State Council recently announced an adjustment to the structure and responsibilities of China’s central bank, the People’s Bank of China:

  1. The State Council Financial Stability and Development Committee and its office will no longer be retained. Its responsibilities will be transferred to the office of the Chinese Communist Party’s (CCP’s) Central Financial Committee. The Secretariat of the State Council Financial Stability and Development Committee, previously located within the People’s Bank of China, will be transferred to the office of the CCP’s Central Financial Committee.
  2. The daily supervisory responsibilities for financial holding companies and other financial groups will be transferred to the China Banking and Insurance Regulatory Commission.
  3. The responsibilities for establishing and improving the basic system for the protection of financial consumers will be transferred to the China Banking and Insurance Regulatory Commission.

The People’s Bank of China will reduce 30 administrative positions and 6 leadership positions at the bureau level. After these adjustments, the People’s Bank of China will have 20 internal institutions, with 714 administrative positions and 87 leadership positions at the bureau level.

Chinese news website Aboluo published an article saying that analysts believe this move reflects Xi Jinping’s increasing centralization of power in the CCP’s Central Committee over the State Council, diminishing the role of Premier Li Qiang. Also, the China Banking and Insurance Regulatory Commission is believed to be under the control of Xi’s confidant He Lifeng.

Sources:
1. China Government website, October 13, 2023
https://www.gov.cn/zhengce/202310/content_6908743.htm
2. Aboluo, October 14, 2023
https://www.aboluowang.com/2023/1014/1965621.html

Briefings | | |   Economy/Resources Government/Politics

Xi Jinping Might Have Ended the CCP’s Central Civilization Committee

New Tang Dynasty TV reported that the Chinese Communist Party’s (CCP’s) Central Civilization Committee (中央精神文明建设指导委员会), established in April 1997, has quietly disappeared. This organization was founded during the era of former CCP head Jiang Zemin. On paper, it served as a policy-making body to oversee the nation’s “spiritual and ideological development.” Its actual role was to direct ideological messaging and propaganda within the country. One of its major functions was to suppress Falun Gong, a practice of mind-and-body Buddhist-based exercises.

The committee’s member organizations included several key bodies such as the CCP Central Discipline Inspection Commission, the Central Propaganda Department, the Central Organization Department, the Central Political and Legal Affairs Commission, and the State Council General Office. The first Director of this committee was Ding Guangen, a member of the CCP’s Politburo and head of the CCP Central Propaganda Department. Subsequent directors were all members of the Politburo, including prominent figures from the Jiang Zemin era such as Li Changchun, Liu Yunshan, and Wang Huning. Following the 20th National Congress, Xi Jinping’s confidant, Cai Qi, assumed the position of director.

On October 11 the Hong Kong newspaper Ming Pao reported changes to the official website of the Central Civilization Committee. The organization listed as owning the website changed from the Central Civilization Committee to the Central Propaganda Department and the Central Civilization Office. Additionally, the full name of the Central Civilization Office was changed from “Central Spiritual Civilization Development Steering Committee Office” to “Central Spiritual Civilization Development Office,” with the “Committee” part omitted. The article noted that Cai Qi has never publicly used the title of director of the Central Civilization Committee even though he was in charge of it.

The disappearance of this committee shows how Xi Jinping is moving away from Jiang Zemin’s legacy. The CCP’s National Propaganda and Cultural Work Conference, held in Beijing on October 7 and 8 introduced the concept of “Xi Jinping’s Cultural Ideology” for the first time. This marks a new approach in the CCP’s methodology for exercising influence over culture and ideology to control the minds of the Chinese people.

Source: NTDTV, October 11, 2023
https://www.ntdtv.com/gb/2023/10/11/a103803561.html

Briefings | | |   @CS Government/Politics

Another Chinese Official Charged with Data Fraud

Sun Shutao, former vice chair of the Shandong Provincial Committee of the Chinese People’s Political Consultative Conference (CPPCC), was recently expelled from the Chinese Communist Party and public office for falsifying economic data. This event follows the similar expulsion of former Jiangsu deputy party secretary Zhang Jinghua in May.

The Central Commission for Discipline Inspection (CCDI) charged Sun with falsifying data so as to achieve personal advancement. He was also charged with engaging in transactions for power, sex, and money. The CCDI stated that Sun illegally accepted huge amounts of property (i.e. bribes).

Mainland Chinese media noted that Sun is the third official who has been publicly charged with data falsification. Before Zhang Jinghua, official Kong Lingdong of Qinghai province was charged in September 2022.

The Chinese government has a reputation for data falsification. In March, National Bureau of Statistics director Kang Yi vowed to crack down on the phenomenon, announcing a zero-tolerance policy for falsification.

The expulsions of Sun, Zhang and Kong indicate the Chinese government’s stance on the manipulation of data for political advancement. Despite periodic crackdowns, however, there are fundamental political incentives in place that encourage such data falsification; the practice remains widespread as officials face intense pressure to meet economic targets.

Source: Central News Agency (Taiwan), October 9, 2023
https://www.cna.com.tw/news/acn/202310090254.aspx

Briefings | | |   Government/Politics

CCP Media Praises “Community of Common Destiny for Mankind”

{Editor’s note: The “Community of Shared Human Destiny” is a political framework promoted by the Chinese Communist Party (CCP) to advance foreign-policy goals, i.e. increasing the CCP’s power to influence other international players and its ability to dominate in the realms of economics, security, and geopolitics. [2]}

Xinhua reported that China’s State Council Information Office recently released a white paper titled “Working Together to Build a Community of Shared Human Destiny: China’s Proposals and Actions.” The article said that “this year marks the 10th anniversary of China’s proposal” of the concept. The article stated that over the past decade, the idea of a “Community of Shared Human Destiny” has formed into a scientific and theoretical system, and that this concept “is superior to the idea of ‘Universal Values’ promoted by a select few Western countries. It aligns with the trend of the times, advocates for global cooperation, and promotes the development of the international order in a more just and equitable direction.”

Sources:

[1] Xinhua, September 28, 2023
http://www.news.cn/world/2023-09/28/c_1129891341.htm

[2] “Community of Common Destiny”, Wikipedia, retrieved October 7, 2023
https://en.wikipedia.org/wiki/Community_of_Common_Destiny

Briefings | | |   Geo-Strategic Trend Government/Politics

Telegram to Collaborate with Tencent

In September, the instant messaging app Telegram and its partner, the TON Foundation, announced a collaboration with Chinese company Tencent (owner of the popular Chinese social media app WeChat). It will transform Telegram into a “super app ecosystem” similar to WeChat. Telegram boasts 800 million active users, including many from China who use it to circumvent the Chinese Communist Party’s (CCP’s) Internet censorship. Industry experts caution that this partnership may pose risks to user privacy and financial information. A commentator stated that Telegram, previously a platform independent of the CCP’s authority, is now controlled by Tencent, indicating that the CCP is working to eliminate the information platform as a threat to its rule.

During Hong Kong’s anti-extradition protest, many protesters used the Telegram app to discuss strategy and communicate information about gatherings.

Source: Radio Free Asia, September 29, 2023
https://www.rfa.org/mandarin/Xinwen/4-09292023113707.html

Briefings | | |   Government/Politics Information/Technology

State Security Ministry Reveals Recruitment Techniques Used by Foreign Spy Organizations

Beijing continues its anti-spy propaganda campaign targeting the Chinese people. On its WeChat account, the Chinese Ministry of State Security discussed five internet-based techniques that it says are used by foreign intelligence agencies to appeal to Chinese people, attempting to recruit them as potential spies or luring them to provide secret information. People’s Daily republished the article. The five points are:

  • Online personal loans
  • Online dating
  • Online jobs (potentially part-time)
  • Online research and paper authoring
  • Online hobby groups

Source: People’s Daily, September 25, 2023
https://wap.peopleapp.com/article/7211990/7055012

Briefings | | |   Government/Politics