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Kicked out of America! China Unicom Ordered to Stop All Business in the U.S.

Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that the U.S. Federal Communications Commission (FCC) voted 4 to 0 to revoke China Unicom’s subsidiary’s 214 license. The FCC cited national security concerns. The decision means China Unicom (America’s) Operations Limited must stop all services in the United States within 60 days. The company provides mobile services, leased lines, Internet access and cloud services in the United States. FCC Chair Jessica Rosenworcel said, “There is growing evidence that Chinese operators pose a threat to the security of our telecommunications networks.”  Rosenworcel also said that the FCC will conduct similar measures against Pacific Networks Corp. and its wholly-owned subsidiary ComNet. This is not the first time the United States has dealt with companies in the Chinese telecommunications industry. Last October, the FCC decided to revoke China Telecom Americas’ authorization to operate in the U.S. In 2019, the FCC also rejected China Mobile’s application to do business in the United States. The Chinese Ministry of Industry and Information Technology issued a statement saying that, the U.S. has revoked China Unicom’s license based on subjective speculation and suspicion without listing the specific illegal facts of the company.

Source: Sohu, January 28, 2022
https://www.sohu.com/a/519542752_639898

Briefings | | |   Information/Technology US-China Relations

Global Times Editorial: What Exactly Does America’s ‘Competition’ Mean?

China’s state-run media Global Times published an editorial commenting on the Biden Administration’s China Policy after Biden had taken over the White House for one year. Below in an excerpt from the editorial.

On Jan 19th, “Rosenberg, the senior director of China affairs at the White House National Security Council, made a special elaboration on the United States’ China policy. She said that the United States will strengthen its deterrence against China in the Taiwan Strait and the Indo-Pacific region to ensure victory in the competition with China. At the same time, it will strive to manage competition with China, maintain communication channels with China, and set up guardrails to restrain competition and manage potential risks.”

“We have heard this many times over the past year. ‘Competition’ is a key word repeatedly emphasized by the Biden administration in its relations with China. U.S. Secretary of State Blinken once proposed the ‘3C’ policy, that is, ‘competition, confrontation, cooperation.’ Among these ‘3Cs,’ ‘cooperation’ has been increasingly marginalized, and “competition” has become more and more prominent, dominating the C position. But what exactly does Washington mean by ‘competition’?”

“Rosenberg revealed that the United States is about to launch a so-called ‘Indo-Pacific Economic Framework’ with regional partners. Obviously, this ‘Indo-Pacific Economic Framework’ is aimed at China. It wants to create a small economic and trade circle that surrounds China but excludes China, and aims to poach the foothold of economic and trade cooperation between China and foreign countries (including China and the United States). Rosenberg specifically mentioned the Taiwan Strait, where the U.S. has continued its unabated actions. This is a provocation to China’s core interests and continues to undermine the political foundation of China-U.S. relations.”

“Rosenberg also said that the United States is committed to working with its allies to shape the strategic environment encircling China. As soon as the words were out, we immediately saw them in action. On the 20th, Japan and France held the ‘2+2’ talks between foreign ministers and defense ministers. On the 21st, Biden held online consultations with Japanese Prime Minister Fumio Kishida. On the same day, Britain and Australia held ‘2+2’ talks between foreign ministers and defense ministers. The three events have a common theme: ‘countering Chinese influence.'”

“Through ‘listening to the words and watching the deeds’ of the United States in the past two years, “it is not difficult for the Chinese to come to the judgment: In Washington’s mind, confrontation and containment are the essence, cooperation is an expedient measure, and competition is a discourse trap. The White House has changed owners, but its China policy has not changed. President Biden has repeatedly said that he does not want to mess up the U.S.-China relationship and does not want a conflict between the two countries; but the actual actions of the United States are constantly weakening the foundation of China-U.S. cooperation, while creating and accumulating the risk of Sino-U.S. conflict.”

Source: Global Times, January 20, 2022
https://opinion.huanqiu.com/article/46TyxitXGcW

Briefings | | |   US-China Relations

CCP Published its Propaganda about Xinjiang in Times Square, in Europe, and in Japan

On January 6, Xinhua News Agency posted an article that China has broadcasted “Discover Shihezi (a city in Xinjiang)” in Chinese and English on the electric billboard “China Screen” at Times Square in New York, 48 times a day for 7 consecutive days. In addition, on January 7, the Chinese Communist Party’s (CCP’s) propaganda machine posted the same video on the websites of the Paris-based Nouvelles d’Europe newspaper and Japan’s AFPBB News and its social media. The videos were in Chinese, English, French, and German. The videos claimed that Shihezi’s present-day “prosperity” is the result of more than 70 years of development under the CCP’s leadership.

A commentator called this the CCP’s global propaganda. It involved lying to Western audiences and to politicians by claiming a place where the CCP forcibly-immigrated Han people and committed genocide was actually a “beautiful” and “green city.” He also criticized Times Square’s  electric billboard and other Western companies for giving up moral standards in exchange for the CCP’s money.

in July 2011, Xinhua News Agency rented the biggest and best-located billboard at Times Square, a 60 inch by 40 inch screen, . Media said the rent could be US $300,000 to $400,000 per month.

Source: Radio Free Asia, January 12, 2022
https://www.rfa.org/cantonese/news/timesquare-01122022113703.html

Briefings | | |   Economy/Resources Geo-Strategic Trend Government/Politics US-China Relations

In the Past Three Years, Huawei Invested In Vain in 56 Chip Making Companies

Epoch Times reported that, right before the U.S. issued sanctions against Huawei, Huawei set up Hubble Investment, which, in the past three years, has invested in 56 chip companies. The entire country of China had also set off a vigorous movement to build chips at the same time, but it all ended in vain.

In May 2019, the United States banned Huawei from importing products if at least 25 percent of the components they contained were made in the U.S. On May 15, 2020, the U.S. escalated its sanctions. Any companies, including non-U.S. companies, should not sell any chips produced with U.S. technology and equipment without U.S. approval. Afterward, TSMC, the world’s leading dedicated semiconductor foundry, completely stopped supplying its chips  to Huawei

A month before the first U.S. sanction, Huawei established a wholly owned subsidiary, Hubble Investment, with registered capital of 700 million Yuan (US $110 million) in Shenzhen.

According to a market research company PitchBook Data, Hubble Investment has invested in 56 chip companies. The Chinese media Semiconductor Today reported Hubble is like a “wolf” in its chip investment, investing at a rate of nearly one company per month. Its aggressiveness escalated after the second time the U.S. issued sanctions against Huawei. Huawei increased Hubble’s registered capital to 1.7 billion yuan (US $268 million) in January 2020 and Hubble invested in 25 semiconductor-related companies in 2020 alone.

Hubble Investment also moved up the industry chain.

For example, in May 2019, Hubble invested in Radrock (Shenzhen) Technology, focusing on high-performance 4/5G RF front-end chips and WiFi PA products. In July 2019, Hubble invested in 3PEAK, producing high-performance, high-quality integrated circuit products. In August 2019, Hubble invested in SICC Co, producing silicon carbide substrate materials; and in October 2019, Hubble invested in TankeBlue Semiconductor Co., producing third-generation semiconductor SiC wafers.

Topology Research Institute reported that Hubble Investment covers the third-generation semiconductors, wafer-level optical chips, power management chips, clock chips, RF filters, and many other areas, where Huawei relies on the U.S. supplies.

However, there has not been much of a result from Huawei’s chip producing capability. By 2021, it had gradually run out of its chip storage. Hisilicon, which used to supply the high-end Kirin 9000 chips to Huawei, couldn’t do it anymore. Huawei introduced its P50 series mobile phone this year, with some phones equipped with Qualcomm’s Snapdragon 888 processor due to the lack of Kirin 9000 chips. Also, a lack of 5G RF equipment rendered the phones, even with the Kirin 9000 5G SoC installed, still unable to support 5G.

In 2020, not only did Huawei heavily invest in chips companies, but the entirety of China also had a chip investment wave. Chinese semiconductor companies raised nearly US $38 billion through public offerings, private equity, and asset sales, more than double the total for 2019. In the same year, more than 50,000 Chinese companies registered semiconductor-related businesses, four times the total of five years ago. These companies included those with no connection to chips at all, such as real estate developers, cement makers, and restaurants – all of which branded themselves as “chip companies” because the government promised tax breaks and funding for the chip industry.

However, there was no result from these investments. According to statistics from Chinese media in October 2020, six high-profile Chinese semiconductor projects with budgets each over ten billion Yuan (US $1.58 billion), Including Wuhan Hongxin and Jinan Quanxin, were stopped within a little over a year. Some never even produced a single chip.

Source: Epoch Times, January 15, 2022
https://www.epochtimes.com/gb/22/1/15/n13506884.htm

Briefings | | |   Economy/Resources US-China Relations

Global Times: Japan Signed New Agreement with the U.S. after the Australian Agreement

Global Times recently reported that the Japanese and American governments signed a cooperation research agreement on defense equipment after the “Security Consultative Committee” (2+2) meeting attended by the foreign affairs and defense cabinet officials of the two sides. The agreement is aimed at countering the development of new weapons such as hypersonic missiles that China and North Korea have advanced. The joint statement of the meeting issued by both Japan and the United States repeated some of the same information about many negative China-related issues, such as the human rights concerns related to Xinjiang and Hong Kong, the importance of peace and stability in Taiwan, the East and South China Sea issues, the Senkaku Islands being subject to the Japan-US Security Treaty, as well as other issues. This was the first Japan-US “2+2” meeting since Fumio Kishida took office as Prime Minister of Japan. It is worth noting that just one day before, Australian Prime Minister Scott Morrison held a video conference with Japanese Prime Minister Fumio Kishida and signed a historic defense and security cooperation agreement. Before that, Japan had only signed such an agreement with the United States. The Australian Agreement was viewed as a blatant interference in China’s internal affairs, against the backdrop of China’s rising military and economic power.

Source: Global Times, January 7, 2022
https://world.huanqiu.com/article/46IsIXTegrG

Briefings | | |   Defense/Military Geo-Strategic Trend US-China Relations

Global Times Commentary: Blinken Used Beautiful Words to Sell U.S.’ Strategic Malice

Below is an excerpt from a commentary published in China’s state media Global Times:

“U.S. Secretary of State Blinken delivered a speech on (December) the 14th in Indonesia. It was the first stop on the Southeast Asian tour to promote the United States’ ‘commitment to the security and prosperity of the Indo-Pacific.’ He once again hypocritically elaborated on the concept of a ‘free and open Indo-Pacific,’ claiming that the purpose of the United States in defending a rule-based order is not to suppress any country, but to protect the right of all countries to choose their own path and to ensure that they are free from coercion and intimidation. He also expressed that the United States hopes to avoid conflicts in the Indo-Pacific region.”

“Blinken’s words are empty lies. He has performed using the extreme that the Western politicians use, “noble vocabulary” to convey strategic maliciousness.”

“From the moment when the United States returned to the Asia-Pacific region, to the Indo-Pacific strategy currently in force, what the U.S. has totally been pursuing is a geopolitical plan. Washington has greatly increased its military presence in the South China Sea, expanded its visibility in this region, and intervened in the political process here. All of this is directed at China and is intended to suppress China’s rise.”

“The entire region needs to be able to manage the presence of the United States and make it as harmless as possible. This region must not be ‘dominated’ by the United States, because once that happens, all countries in the region will become tools and materials for serving the United States’ global hegemony.”

Source: Global times, December 14, 2021
https://opinion.huanqiu.com/article/45z9JHkC7rF

Briefings | | |   US-China Relations

Cui Tiankai: The United States Is Bound to Contain China, China Must Be Fully Prepared

According to the official website of the China Institute of International Studies, on December 20th, Cui Tiankai, the former Vice Minister of the Ministry of Foreign Affairs of China and former ambassador to the United States, attended the 2021 International Situation and China’s Foreign Affairs Conference jointly organized by the China Institute of International Studies and the China Foundation for International Studies . Cui delivered a special speech regarding the development of Sino-U.S. relations.

Cui Tiankai pointed out in his speech that Sino-US relations will remain tortuous and turbulent in the future, and China must be fully prepared for this. “The historical stage of the current Sino-U.S. relations status will continue for some time. The United States will not willingly accept the rise of a big country with a very different social system, ideology, cultural traditions and race.

Cui said that The United States is bound to do everything possible to suppress China. China must be fully prepared and not fight battles without full confidence, nor engage in emotional or exhaustive battles.

Source: Sina, December 22, 2021
https://news.sina.com.cn/c/2021-12-22/doc-ikyakumx5610514.shtml

Briefings | | |   US-China Relations

Hu Xijin: We Cannot Do Anything to Intel Right Now; We Will Retaliate in the Future

Chinese media discovered on December 21 (2021) that, on its official website, Intel Corporation of the United States publicly requested that its supply chain not use any labor or purchase any products or services from Xinjiang, China.  Hu Xijin, the former editor-in-chief of the Global Times, commented, “Intel dares to do this because it has very few Xinjiang products in its supply chain and its CPU is still in demand in China at the present time. It is therefore not too worried about retaliation from the Chinese side …”

Hu Xijin said that the Chinese must have both heart and vision. We have to fight tit for tat with the United States, but there is no need to get overly caught up in them. We need to focus more on the domestic agenda. For a business like Intel, let’s take out a small notebook and write down the bad things it does. The stronger China becomes, the better we will be able to retaliate against them.

Source: Sina, December 22, 2021
https://finance.sina.com.cn/chanjing/gsnews/2021-12-22/doc-ikyamrmz0440856.shtml

Briefings | | |   US-China Relations