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Huang Qifan Pitches Government Buyup of Residential Housing Following Further Fall in Real Estate Prices

A video of Huang Qifan has been circulating in China, generating some heated discussion. Huang expressed his view that the Chinese government should buy up residential housing following a potential drop in real estate prices. Huang is the former mayor of Chongqing and former Vice Chairman of the Financial and Economic Committee of China’s National People’s Congress.

Recently, the Chinese government suggested splitting residential housing into two categories: Commercial Housing, which people would be allowed to buy and sell, and Government Subsidized Housing, which would be owned by the government. This latter category, ineligible for purchase or sale by the public, would be leased out by the government to people in financial need.

In the video of Huang, he stated that housing prices in China have already fallen 10 to 20 percent over the past couple of years. If prices were to fall another 30 percent this year then the total drop in price would be 40 to 50 percent down from the peak. When this happens, he said, the government could “take the opportunity” to buy up these apartments. Cities could use 5 trillion yuan (US$ 700 billion) to buy up such apartments and then lease them out as the Government Subsidized Housing. He said that housing prices would then rise back up over the subsequent five to ten years, and this would be an excellent way for the government to “save the housing market.” He argued that the government would not lose any money (it would actually make money), and it would avoid needing to spend money on building out Government Subsidized Housing.

Huang went on to argue that there is no moral problem with his proposed plan of action. In his analysis, the proposed approach has many benefits: it “solves the supply of the Government Subsidized Housing,” saves the real estate market, resolves extra housing capacity (i.e. reduces oversupply of housing), saves real estate companies and banks, and “balances social debts.”

Huang also proposed an approach for bringing down housing prices in China: by tightening the money supply and loan activity, the government could cause many house foreclosures. When the share of foreclosed housing reaches a certain proportion, housing prices in the market more broadly would fall.

An article on the Aboluo  website criticized Huang’s argument. The article reasoned that the “base housing price” from five years ago was 50 percent of recent peak in housing prices, and that the general public had benefited greatly from this rise in real estate asset prices. If the government were to let housing prices fall by 50 percent, the public (which is heavily invested in real estate) would take a big monetary loss. Following Huang’s plan, the government would then buy the housing at the base price (a 50 percent discount from peak prices) and would reap financial gains after waiting for another five years to pass, seeing their investment double in value. The Aboluo article argued that those investment gains should belong to the general public, not to the government — by following Huang’s plan, the government would not be “expanding the pie” of the housing market, but would rather be cutting the pie in half and taking half for itself.

Source: Aboluo, January 8, 2024
https://www.aboluowang.com/2024/0108/2001131.html#google_vignette

Wang Huning on Building “Christianity With Chinese Characteristics”

Xinhua reported that the 11th National Congress of Chinese Christianity was held in Beijing from December 20 to 21. Wang Huning, a member of the Chinese Communist Party’s Politburo Standing Committee and Chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), met with members of the leadership of the national Christian congress.

Wang Huning stressed “adherence to the sinicization of Christianity in China, following the principles of being independent [from Western Christianity] and self-managed, and providing doctrinal interpretations that align with contemporary China’s development, socialist core values, and traditional Chinese culture. [Chinese Christians] must adhere to comprehensive and strict governance of religious practice, conduct religious activities in accordance with laws and regulations, and build a team of religious professionals who are politically reliable, knowledgeable in religion, morally influential, and capable of playing a crucial role at critical time.”

Source: Xinhua, December 24, 2023
http://www.news.cn/mrdx/2023-12/24/c_1310756999.htm

Australian Court Delivers Landmark Verdict: CCP United Front Work Member Convicted of Foreign Interference

In November 2020, the Australian police charged former Liberal Party member Di Sanh “Sunny” Duong, also known as Yang Yisheng, with violating the “Foreign Interference Laws”: Duong was accused of preparing or planning foreign interference activities. On Tuesday, December 19, 2023, an Australian court ruled that the charges were substantiated. This marks the first such verdict under foreign interference laws enacted in 2018. Duong may face up to 10 years in prison.

According to the Australian Broadcasting Corporation (ABC), prosecutors informed the court that Duong had maintained regular contact with Chinese intelligence agencies and attempted to influence then Federal Minister Alan Tudge to further the goals of the Chinese Communist Party (CCP).

Born in Vietnam, Sunny Duong, 68 years old, is a well-known businessman in the Australian Chinese community. He serves as the chairman of the Oceania Cambodia Vietnam Chinese Association and holds various leadership positions in Chinese community organizations in the Australian state of Victoria. He is believed to be associated with the China Council for the Promotion of Peaceful National Reunification, which is controlled by the CCP’s United Front Work Department.

ABC’s report stated that prosecutor Patrick Doyle SC told the jury that Duong’s actions couldn’t be compared to the espionage seen in spy novels or 007 movies. He said that Duong’s actions were rather a “subtle form of interference,” emphasizing that the motivation was to gain influence [for the CCP].

A secret recording showed that Sunny Duong told a colleague, “What I do won’t be reported in the media, but Beijing knows what I’m doing.”

Source: Voice of America, December 19, 2023
https://www.voachinese.com/a/australia-court-finds-melbourne-man-guilty-of-foreign-interference-121923/7404075.html

CCP Pilots Ethnic Interpenetration Policy in Xinjiang

The Xinjiang Daily reported on December 14, 2023 that the Ili Kazakh Autonomous Prefecture in Xinjiang has enacted “Regulations on Promoting Interaction, Communication, and Integration among Various Ethnic Groups.” Consisting of 19 articles, the legislation aims to commingle diverse ethnic groups together. This would serve as a pilot implementation of the “ethnic interpenetration” policy endorsed by the Chinese Communist Party in 2014.

Critics pointed out that forcing various ethnic groups to live and mix together plays to the CCP’s policy of eliminating minority ethnic cultures and implementing more complete control populations living in China. For example, when members of the Han ethnic group (the majority population in China) are imported to Xinjiang and mixed with the Uighur ethnic group, the Han people’s acceptance of CCP culture will naturally manifest itself in daily life and thereby reduce the religious and cultural cohesion of the Uighur people.

Per the CCP’s ideology, forcible mixing of different ethnicities and cultures is used to foment conflicts between those cultural and ethnic groups. This aids the CCP in “inciting struggle among the people,” e.g. provoking conflicts between the Han and Uighur ethnicities. The resulting instability and incohesion makes it easier for the CCP to implement control.

Such ethnic interpenetration policies also enable the CCP to more conveniently organize intelligence operations and strengthen surveillance over minority ethnic groups.

Source: Radio Free Asia, December 22, 2023
https://www.rfa.org/mandarin/zhuanlan/yehuazhongnanhai/gx-12222023161033.html

Sing Tao Daily: At Least 30 Generals Involved in Rocket Force Corruption Case

China recently announced the removal of nine senior generals of the People’s Liberation Army (PLA) from the National People’s Congress for their involvement in the Rocket Force’s corruption case. Three Lieutenant Generals were among the indicted: former Air Force Commander Ding Laihang, and former Commanders and Commisar of the Rocket Force Li Yuchao and Zhou Yaning.

Hong Kong-based Sing Tao Daily reported that the involved people also include former Defense Minister General Li Shangfu and General Wei Fenghe, as well as over 30 generals, and many more officers at the divisional level and above.

Source: Sing Tao Daily, December 31, 2023
http://tinyurl.com/4bnss7r7

Guangming Daily: China and Latin America’s Activities in 2023

Guangming Daily, a major mouthpiece of the Chinese Communist Party’s (CCP), reviewed the development in the relationships between China and Latin American countries in 2023:

In 2023 there were many high-level exchanges between China and Latin American countries. Leaders from ten countries paid visits to China: Brazil, Honduras, Argentina, Chile, Colombia, Venezuela, Barbados, Suriname, Cuba, and Uruguay. President Xi Jinping met with the Presidents of Mexico and Peru in San Francisco, USA. China established diplomatic relations with Honduras, elevated bilateral relations with Venezuela to the status of “all-weather strategic partnership,” with Colombia and Nicaragua to “strategic partnerships,” and with Uruguay to “comprehensive strategic partnership.” China also deepened its cooperation with Cuba under the banner of “building a shared destiny.”

The Chinese Communist Party (CCP) held exchanges with Latin-American political parties. [Representatives of] many Latin-American political parties attended the high-level dialogue between the CCP and the world’s political parties in March, 2023; China and Cuba held their fifth communist theory conference in Beijing in April; and China held the third China-Latin America Poverty Reduction and Development Forum in July.

From January to October 2023, trade between China and Latin America reached 2.835 trillion yuan (US$ 390 billion), a 6 percent increase from the same period during the previous year. Chinese companies actively invested in Latin America, particularly in the fields of new energy and the digital economy. On May 11, China and Ecuador signed a free trade agreement. From May 30 to June 2, China and Peru held their fifth round of negotiations for the upgrade of the China-Peru Free Trade Agreement. On July 4, China and Honduras launched negotiations for a free trade agreement. On August 31, China signed a free trade agreement with Nicaragua, making Nicaragua China’s fifth free trade partner in the Latin American region. In addition, China initiated free trade agreement negotiations with El Salvador last year, and negotiations with Uruguay are also underway.

Honduras joined the Belt and Road Initiative (BRI) in 2023; it is the 22nd Latin American country in the BRI circle. Countries like Cuba, Argentina, Chile, and Uruguay signed specific cooperation plans with China. Latin American nations actively participated in the third BRI Cooperation Summit Forum, with the President of Chile attending the forum three times consecutively. By September 2023, China implemented over 200 infrastructure projects in Latin America, including roads, railways, light rails, schools, hospitals, sports venues, bridges, tunnels, airports, ports, and power facilities.

China and Latin American countries, all being developing nations, collaborated extensively in addressing international issues, global challenges, and promoting the reform of the global governance system. Close coordination between China and Brazil supported Argentina in joining the BRICS family (Editor’s Note: this article was written before Argentina officially announced that it would not join BRICS). Latin American countries actively supported the “Three Major Global Initiatives” (Editor’s Note: this refers to Xi Jinping’s Global Development Initiative, Global Security Initiative, and the Global Civilization Initiative), with several countries joining the “Friends of the Global Development Initiative” group. China and Latin American countries actively consulted and reached broad consensus in addressing hot issues such as the Ukraine crisis and the Israel-Palestine conflict. China supported Brazil’s bid for the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change in 2025, and advocated for the establishment of a “Climate Compensation Fund” for vulnerable economies in Latin America.

Source: Guangming Daily, December 26, 2023
https://news.gmw.cn/2023-12/26/content_37051988.htm

China Faces Food Supply Risks

China is intensifying efforts to address food security concerns. Following recent discussions at the Central Economic Work Conference and the “San Nong” (agriculture, rural areas, farmers) work conference, Xi Jinping stressed that the local party and government organs share “joint responsibility for food security.”

China has officially claimed that its supply of staple foods exceeds 100 percent self-sufficiency and is “absolute secure.” However, “staple foods” typically refer to only rice and wheat. China still imports significant amounts of other essential grains including corn, sorghum, and legumes. A report from the Rural Development Institute of the Chinese Academy of Social Sciences has warned of a potential grain gap of 130 million tons by the end of the “14th Five-Year Plan” period (2021-2025), with a cereal gap of about 25 million tons. A report from the China Macroeconomic Forum last year indicated that “more than one-third of all food [consumed in China] is now reliant on imports.” China’s food self-sufficiency rate has declined over the past 20 years, dropping from 93.6 percent in 2000 to the current rate of 65.8 percent. The rate for soybeans was 62.4 percent in 2000 and has since fallen to 16.6 percent.

China’s network of food imports is dependent on a few countries, primarily the United States. Beijing no doubt sees this as a geopolitical risk. To diversify imports, China seeks to “enhance cooperation” with over 140 countries.

China’s second strategic worry is the vulnerability of the sea-based food transportation routes on which it relies. As of 2023, the majority of food imported to China traveled through the Suez Canal and the Strait of Malacca (which connects the Indian Ocean with the South China Sea). Transport through the Suez Canal is currently disrupted by Houthi military activity in the Red Sea, forcing ships bound for China to travel a much longer route circumnavigating Africa. A sea blockade at the Strait of Malacca would cause further delays or disruption to China’s food import network.

Source: Voice of America, December 26, 2023
https://www.voachinese.com/a/7412613.html

Where Did China’s Newly-Printed Money Go?

A posting on social platform X discussed why the record high of 28 trillion yuan (US$4 trillion) currency that China issued in 2023 didn’t lead to the expect result of boosting economy:

The excess currency, primarily intended to circulate through loans, encountered a lack of demand. Individuals and businesses refrained from borrowing, causing the money to passively flow back, resulting in passive deleveraging. Traditionally, a significant portion of loans flowed into real estate which would drive up development and consumption. But this time the reduced demand (and the dismal projected return) for property purchases and land acquisitions led to idle funds in commercial banks. Consequently, most of the 28 trillion yuan were returned to China’s central bank. The government became the primary borrower, with local governments issuing new city investment bonds to replace old bonds approaching maturity. The total amount of investment bonds issued by city governments in China now exceeds 65 trillion yuan.

Source: Twitter, @TheXiangYang