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US-China Relations - 2. page

Global Times: China Will Not Hesitate to Strike Back

On January 11, China’s State media Global Times issued the second editorial responding to the January 9, 2021, U.S. Secretary of State Pompeo’s lifting of all restrictions on the official interactions with Taiwan. Global Times issued its first editorial on January 10.

Global Times complained that, “The American establishment is watching from the sidelines and Pompeo and his cohorts are doing whatever they want with Sino-US relations, without any restraints.”

The editorial stated that Pompeo’s moves on Taiwan lack strong support and many want to see the moves fail. “We [China] must turn the final ten days of struggle into a closure that defines a clear bottom line and show to the U.S. and Taiwan the grave consequences when they hit the bottom line.”

The editorial stressed that China must hit back hard. Otherwise, “the Biden Administration will mistakenly believe that the room for pressure on China may be further expanded. The Sino-U.S. relations in the next four years will have a very unfavorable start for China.”

Source: Global Times, January 11, 2021
https://opinion.huanqiu.com/article/41TJNf78eEB

Global Times: Count-down of Taiwan’s Final Days

On January 10, 2021, China’s State media Global Times published an editorial in response to the U.S. Secretary of State Pompeo’s announcement on January 9, 2021, that lifts self-imposed restrictions on the U.S.-Taiwan relationship in terms of interactions between diplomats, service members, and other officials of the United States and their Taiwanese counterparts. 

Entitled “Pompeo may have started the count-down of Taiwan’s final days,” the Global Times editorial stated, “Pompeo once again is frantically digging holes and placing mines for Sino-US relations and the Taiwan issue. This is a criminal, structural sabotage to cross-strait peace and the bottom-line stability of Sino-US relations. The extent of its severe consequences is unpredictable.”

The editorial believes Pompeo’s announcement indicates two uncertainties: whether Biden will implement this policy and whether Pompeo will make further big moves such as Pompeo’s surprise visit to Taiwan before stepping down.

“Whether [we should] push the Biden Administration to abolish the crazy decision of the last days of the current U.S. Administration or prevent Pompeo and others from taking actions beyond the bottom line at the last minute, Beijing must clearly and resolutely oppose the U.S. extreme provocations and be determined to fight head-on.” 

 “Beijing needs to send a strong signal that the United States must stop before it is too late. It must let the United States and Taiwan’s Democratic Progressive Party authorities know that if they dare to let Pompeo visit Taiwan before the end of his term, Beijing’s response will be overwhelming.”

The editorial continued with a threat to Taiwan saying, “The last few days of the current U.S. administration may also be the last few days of the existence of the Taiwan Democratic Progressive Party.”

The editorial stated that Biden is “worried that the Trump administration may do stupid things including the use of atomic bombs in the last few days.” “If they had a sudden showdown on the Taiwan issue, it would be equivalent to throwing an atomic bomb into world peace. We must give the most severe punishment to those that destroy peace.”

Source: Global Times, January 10, 2021
https://opinion.huanqiu.com/article/41SWawR9QGt

 

Xi Jinping Orders PLA to Be Ready for War at Any Given Time

The recent military orders that Beijing introduced appear to suggest that China might be preparing to launch a war in the South China Sea or Taiwan or against U.S. military targets. On January 4, Xi Jinping signed the first Central Military Commission order of 2021. That order stressed that the PLA should use Xi’s thought as the guide while strengthening the party’s leadership in the military. It stated, “Focus on preparations for war.” “Comprehensively improve real time combat training and the ability to win,” and the PLA must practice combat training to ensure it is ready to fight at any time. Prior to this, there were two other orders that went into effect on January 1: “Regulations on Military Logistics” and the Amendment to the “National Defense Law.” In the Amendment to the “National Defense Law,” it gave legal grounds to launch a war if China feels that there is threat to its national interest.

Coincidentally, on January 4, the same day that Xi signed the first military order, U.S. Secretary of State Pompeo and Billingslea, the Special Presidential Envoy for Arms Control, published a joint opinion paper urging Beijing to come clean on the nuclear weapons threat and buildup. It warned that the U.S. has the knowledge of Beijing nuclear development despite Beijing’s secrecy about its activities. It called for China’s transparency and for it to join the U.S. and Russia in crafting a new arms control agreement. In the opinion paper, it stated that “over the past four years, the Trump administration has awakened the world to the China challenge. Beijing’s two-decades-long asymmetric arms race is a core part of that challenge. It endangers the American homeland, our strategic positions in the Indo-Pacific, and our allies and partners. It is of concern to all peace-loving nations. We’ve briefed allies, partners and even the highest levels of the Russian government on China’s nuclear buildup.”

Source:
1. Xinhua, January 4, 2021
http://www.xinhuanet.com/politics/leaders/2021-01/04/c_1126944155.htm
2. Newsweek, January 4, 2021
https://www.newsweek.com/chinas-nuclear-madness-opinion-1558342

NYSE Delists China Telecom, China Mobile and China Unicom?

Well-known Chinese news site NetEase (NASDAQ: NTES) reported on New Year’s Day that the New York Stock Exchange (NYSE) officially announced it will suspend trading of the stocks of China Telecom, China Mobile and China Unicom (Hong Kong) from January 7 to January 11, and delisting these three stocks has started. The action is to comply with the executive order President Trump signed in November, which was to ban investment in companies related to the Chinese military. The executive order does not allow U.S. investors to buy the stock of the companies that made it to the list that the Pentagon provided. This event is a sign that the United States is upping its game on the economic sanctions against China. It is expected that more Chinese companies will be forced out of the U.S. stock market in the future.

On January 5, Singapore’s primary Chinese newspaper Lianhe Zaobao reported that the NYSE decided to stop the delisting process of the three Chinese companies. This was right after the Chinese Ministry of Commerce’s statement on the willingness to take the “necessary steps” to counter the delisting. The report did not explain why the NYSE changed its mind.

Again on January 5, the BBC Chinese Edition reported that the NYSE decided to change its opinion for the second time and would continue the delisting of the three Chinese telecommunications giants. The new announcement said the decision was made based on the latest detailed instructions from the Department of the Treasury. This sudden and unexpected change caused stock market volatility.

China Mobile is China’s largest telecommunications provider with 946 million customers. It also has the world’s largest mobile network and customer population. China Telecom is China’s second largest telecommunications provider, with 346 million customers. The U.S. FCC withdrew China Telecom’s license to operate in the U.S. on December 10. China Unicom, also serving Hong Kong, is China state-owned and is the world’s fourth largest telecommunications company.

Sources:
(1) NetEase, January 1, 2021
https://www.163.com/dy/article/FV8NGKTD0534TJBN.html
(2) Lianhe Zaobao, January 5, 2021
https://www.zaobao.com.sg/realtime/china/story20210105-1113936
(3) BBC Chinese, January 5, 2021
https://www.bbc.com/zhongwen/simp/world-55545795

DHS Warns Businesses about Security Risks on Data Services and Equipment from China Linked Firms

On Tuesday December 22, the U.S. Department of Homeland Security issued a business advisory to American businesses warning them of the risks associated with the use of data services and equipment from firms linked to the People’s Republic of China (PRC).

According to Acting Secretary of Homeland Security Chad F. Wolf, “For too long, U.S. networks and data have been exposed to cyber threats based in China which are using that data to give Chinese firms an unfair competitive advantage in the global marketplace.”  “Practices that enable the PRC government to gain unauthorized access to sensitive data – both personal and proprietary – put the U.S. economy and businesses in the position of having a direct risk of exploitation. We urge businesses to exercise caution before entering into any agreement with a PRC-linked firm.”

This advisory highlights the persistent and increasing risk of PRC government-sponsored data theft due to newly enacted PRC laws that can compel PRC businesses and citizens – including academic institutions, research service providers, and investors – to take actions related to the collection, transmission, and storage of data even though these actions run counter to principles of U.S. and international law and policy.

The advisory lists six types of situations that pose risks to U.S. businesses or individuals when engaging in data sharing with PRC firms or entities: data centers owned or operated by PRC firms; foreign data centers built with PRC equipment, joint ventures, legally acquired data augmenting illicitly acquired data, software and mobile device applications owned or operated by PRC firms, fitness trackers and other wearable electronic devices.

The advisory recommended that “businesses and individuals that operate in the PRC or with PRC firms or entities should scrutinize any business relationship that provides access to data— whether business confidential, trade secrets, customer personally identifiable information (PII), or other sensitive information. Businesses should identify the sensitive personal and proprietary information in their possession. To the extent possible, they should minimize the amount of at-risk data being stored and used in the PRC or in places that PRC authorities can access.”

In particular, DHS provides a list of examples of the types of data that should be considered particularly sensitive:

1. Technology and other data in connection to export-controlled products.
2. Intellectual property, including trade secrets, relating to emerging technologies identified in China 2025 and other PRC plans.
3. Biotech, genomic data, and medical test data.
4. Personally-identifiable and other sensitive information.
5. Geolocation data.

Source: U.S. Department of Home Security, December 22, 2020
https://www.dhs.gov/news/2020/12/22/dhs-warns-american-businesses-about-data-services-and-equipment-firms-linked-chinese

Global Times: MSCI to Remove Seven Chinese Stocks from Its Indexes

Global Times recently reported that the world’s largest stock index company MSCI announced that, after the market closes on January 5, it will remove seven Chinese companies from its indexes. Earlier, S&P Dow Jones Indexes and FTSE Russell already made similar moves. This is following U.S. President Donald Trump’s having issued an executive order to ban U.S. investment in 31 military-tied Chinese companies. The impacted stocks hold a share of 0.04 percent in the MSCI ACWI Investable Market Index and 0.28 percent in the Emerging Market Index. China says this shows the U.S. hegemony in capital markets. (Editor’s note: MSCI indexes are often used to allocate elements in major U.S. funds automatically, such as pension funds and other retirement funds).

Source: Global Times, December 17, 2020
https://finance.huanqiu.com/article/418PjinqXwF

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

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