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CCP Central and Local Governments Both Talk About Living Under Tight Budgets

As the Chinese economy continues to show signs of fatigue, the Chinese Communist Party (CCP) Central and local organs are both talking about the need to tighten budgets.

The public communique of China’s National Financial Work Conference in Beijing on December 22 mentioned the term of “living under a tight budget” six times:

  • “adhere to the party and government offices’ living under a tight budget,”
  • “enhancing the quality and efficiency of work is to implement the living under a tight budget,”
  • “form the concept of living under a tight budget, establish a system to live under a tight budget,”
  • “rigorously implement the living under a tight budget,” and
  • “strengthen the supervision of living under a tight budget.”

At the local level, Zhejiang Province, Jiangsu Province, and Xiamen City of Fujian Province have all introduced regulations or issued directives requiring party and government offices to “live under a tight budget.”

Source: Epoch Times, December 23, 2023
https://www.epochtimes.com/gb/23/12/23/n14142236.htm

Briefings | | |   Economy/Resources Government/Politics

Nikkei Asia: Putin Told Xi the Ukraine-Russia War Will Last for Five Years

Nikkei Asia’s Senior Correspondent, Katsuji Nakazawa, has suggested that there are reports indicating Russian President Putin said to Chinese President Xi Jinping that Russia “will be fighting in Ukraine for at least five years” during Xi’s visit to Moscow in March of 2023.

Nakazawa views the rumored exchange as Putin’s assurance to Xi that Russia would eventually prevail in the war despite unfavorable circumstances. Despite this assurance, China started hedging its position soon after Xi’s meeting with Putin in March. Facing domestic economic challenges and potential international sanctions, China dispatched a “peace delegation” to Europe within two months of the China-Russia summit.

Putin felt that Xi had started to abandon him. To keep China on Russian’s side, Russia shared information about then-Chinese Foreign Minister Qin Gang during the visit of Russian Deputy Foreign Minister Rudenko to Beijing on June 25. This led to the sudden removal of Qin Gang from his position in the Chinese government.

Source: Epoch Times, December 27, 2023
https://www.epochtimes.com/gb/23/12/27/n14144987.htm

Briefings | | |   Government/Politics

Head of China’s Aircraft Carrier Programs Sentenced to 13 years for Massive Bribery

Hu Wenming has been sentenced to 13 years in prison and fined 5 million RMB (US$ 700,500) for accepting bribes and abusing his power. Hu was the chairman of the board of directors of China State Shipbuilding Corporation Limited (CSSC) as well as the secretary of the company’s Chinese Communist Party committee.

From 2001-2020, Hu took advantage of his positions to unlawfully accept nearly 60 million RMB (US$ 8.4 million) in bribes related to projects, business deals, promotions, etc. He also caused major losses to state-owned assets during a corporate restructuring from 2013-2015.

In May 2020, Hu was put under disciplinary review for suspected violations. Investigators raised concerns about Hu potentially leaking state secrets, but this was not mentioned during trial. The Shanghai court found that Hu’s actions constituted “accepting bribes” and “abuse of power by a state-owned company officer.” His bribes were extremely large and his favoritism caused particularly significant asset losses, meriting punishment. Mitigating factors included: attempted bribes, recovering some losses, confessing crimes, actively returning stolen goods, and having other statutory/discretionary lenient circumstances.

After participating in earlier aircraft carrier construction in Liaoning Province, Hu was appointed in 2017 to be chief commander overseeing development of China’s first domestically built aircraft carrier in Shandong Province.

Source: Radio France International, December 26, 2023
https://rfi.my/AD0h

Briefings | | |   Government/Politics

Xi Urges Politburo Members to Report Issues Objectively, Not Just the Positives

At a recent Chinese Communist Party’s (CCP) Politburo meeting, General Secretary Xi Jinping emphasized the need for top leaders to “maintain high political sensitivity and unity under the centralized leadership of the CCP’s Central Committee.” He warned about “transforming non-political risks into political ones” and called for “objective and timely reporting of issues.” The CCP Politburo is a top decision-making body of the Chinese Communist Party, consisting of 24-members.

Xi said that members should uphold the authority of the CCP Central Committee, strengthen the “Four Awarenesses,” “Four Confidences,” and “Two Upholds.” Amid complex domestic and international environments, leaders must “grasp the strategic initiative” and “enhance foresight to see essence through phenomenon and understand situations politically.”

He stressed the importance of preventing and resolving political risks, promptly blocking various hidden dangers from turning into political ones. Leaders should “reflect real-life situations objectively, not just reporting good news.” Xi stated that members should adhere to “high-quality development over blind expansion, seek practical results rather than falsified data, and build long-term foundations instead of damaging finances.”

Source: Central News Agency (Taiwan), December 23, 2023
https://www.cna.com.tw/news/acn/202312230031.aspx

Briefings | | |   Government/Politics

People’s Daily Addresses Heavy Mobile Phone Usage in Armed Police

People’s Daily ran a report on heavy mobile phone usage within the armed police unit in Hengshui City, Hebei Province. The piece, titled “Exploring ‘Proper Usage’ of Mobile Phones in Military Camps,” covered efforts to direct soldiers who spend a lot of time watching short entertaining videos or playing video games on their cell phones. Several stories were reported about inspiring soldiers to use their time well in furthering the communist party’s goals.

The Political Instructor of an armed police company noticed that soldiers’ mobile phone usage was heavy, with members of the company watching short videos, playing games, or consuming news. The instructor showed the soldiers several “meaningful” and “inspiring” videos that appeared on his own video feed, e.g. a video titled “Why did the 38th Army of the Volunteer Army become the ‘Best Army’?” (the “Volunteer Army” refers to Chinese forces deployed against US and UN forces during the Korean War) and “Explaining the Ins and Outs of the Israeli-Palestinian Conflict.” The instructor contrasted these videos with the pop-entertainment videos appearing on the soldiers’ own video feeds, saying that only such “meaningful” and “inspiring” content could leave a deep impression in their minds. Soldiers thus started to watch such genres of video that the instructor recommended.

In another military unit, a soldier shared a picture of his camp life and forgot to blur out the face of his commanding officer (which was considered to be leaking a military secret). Seeing the soldier’s affinity for posting on social media, the commanding officer encouraged the soldier to create reports for the military unit on social media so as to cultivate a “positive” image for the unit.

Source: People’s Daily, December 21, 2023
http://military.people.com.cn/n1/2023/1221/c1011-40143905.html

Briefings | | |   Government/Politics Information/Technology

Wang Huning’s Directive: Manipulate Taiwan’s Election Through Fragmented Grassroots Infiltration

Top Chinese government official Wang Huning reportedly held a meeting in Beijing in early December to coordinate efforts to intervene in Taiwan’s upcoming presidential election, which is scheduled for January 13, 2024. A number of different Chinese government departments and agencies were reportedly assigned specific tasks with the aim of subtly influencing Taiwan’s presidential election without attracting international scrutiny. Agencies with representatives attending the meeting include the CCP’s Department of Propaganda, the Department of Taiwan Affairs, the Ministry of Defense, the Ministry of National Security, and the CCP’s United Front Work Department.

The key strategy of China’s cognitive warfare against Taiwan has been to present voters with a “choice between war and peace.” Although Xi Jinping recently stated in public that China does not have plans to attack Taiwan in 2027 or 2035, Beijing still wants Taiwanese voters to feel that there is a threat of war if Taiwan refuses to peacefully integrate with Mainland China.

Beijing’s layered, multi-channel information campaign aims to manipulate Taiwanese public opinion while avoiding the most overt forms of interference that could provoke international condemnation.

The shift from overt influence strategies of the past to a more subtle, distributed approach may reflect China’s current economic weakness, which limits its ability to spend large amounts of money on influence campaigns. Beijing’s continued efforts to influence the politics of Taiwan despite current economic headwinds demonstrates the importance that China places on its Taiwan unification objective.

One specific tactic employed by Beijing is to offer visits or discounted tours in China for Taiwanese representatives from the media, businesses, and government. Local officials are taken on exchanges and given discounted tours with the hope that Beijing can win influence and change these representatives’ perceptions and voting behavior. Other tactics includes using China’s propaganda departments to amplify Beijing’s criticisms of Taiwan’s Democratic Progressive Party (DPP) government, as well as distorting media reports coming out of Taiwan before disseminating them through Chinese social media to sway public opinion.

Taiwan has implemented safeguards against electoral interference, and analysts say that China’s influence / incentives may have limited impact on voting behavior. However, the high-level coordination led by a senior Chinese leader demonstrates the priority Beijing places on covertly intervening in the Taiwanese democratic process to serve its political agenda of asserting control over the island.

Source: Voice of America, December 8, 2023
https://www.voachinese.com/a/china-keeps-interfering-in-taiwan-s-elections-ignoring-biden-s-warnings-20231208/7389984.html

Briefings | | |   Government/Politics

China’s State Council: Directive on Merging Domestic Trade and International Trade Together

China’s economy faces a shrinking market, both in terms of exports and on the domestic front. China’s State Council General Office issued a notice on “Several Measures to Accelerate the Merging of Domestic Trade and International Trade Together” on December 11, 2023, with the intention of allowing companies that are facing hard times in their primary market to seek opportunity in the other market.

The notice mentioned policies such as consolidating the domestic and international trade standards; advancing the uniformity of domestic and international trade products in production line, standards, and quality; supporting foreign trade enterprises in expanding the domestic market; supporting domestic trade enterprises in expanding the international market, etc.

Source: China government website, December 11, 2023
https://www.gov.cn/zhengce/content/202312/content_6919596.htm

Briefings | | |   Economy/Resources Government/Politics

Official Media on Chinese Economy: Maintain High Vigilance against Black Swan Events

The Chinese Communist Party’s Central Economic Work Conference listed real estate as a key area for risk prevention. State media stated that high vigilance is needed to guard against black swan events and gray rhino events that could destabilize the economy.

A commentary in the China Economic Daily said that the conference made clear arrangements to resolve risks around real estate, local debt, small banks, and illegal finance. According to the article, the goal is to hold the line against systemic risks while supporting development. This requires caution, preparation, and deeper consideration of potential troubles to guard against economic “rhino” events.

The article said that China faces many challenges – deep economic contradictions, accumulating risks, and an unfavorable global context. “In order to ensure smooth modernization, we must adhere to [the principle of] high-quality development and security.”

The Central Economic Work Conference emphasized stability through steady progress. More policies aim to stabilize expectations, growth, and employment. China will continue proactive fiscal policy and prudent monetary policy.

The commentary stressed that strong bottom-line thinking is indispensable. China must be cautious as when “walking on thin ice” and must “think of danger during times of peace.” It must estimate difficulties fully and be stable in coordinating resolution of local debts.

Source: Central News Agency (Taiwan), December 17, 2023
https://www.cna.com.tw/news/acn/202312170102.aspx

Briefings | | |   Government/Politics