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Sixteen Chinese Auto Makers Signed a Letter of Commitment

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, after experiencing a fierce price war started by Tesla, the Chinese auto industry ushered in an important moment. Witnessed by relevant government agencies, the China Association of Automobile Manufacturers (CAAM) and 16 auto companies signed the “Letter of Commitment to Maintain a Fair Market Order in the Auto Industry.” These 16 auto companies, including Tesla China, account for more than 90 percent of the Chinese auto market share. The Letter of Commitment requires auto companies not to disturb the order of fair competition in the market with abnormal prices, and at the same time not to exaggerate and falsely advertise. Tesla was the first to start a price cut frenzy. CAAM said the Commitment ensures that all parties will abide by industry rules and regulations, standardize marketing activities, maintain a fair competition order, and not disrupt the market’s fair competition order with abnormal prices. It also requires all parties to “carry forward the core values of socialism,” actively fulfill social responsibilities, and take active roles in stabilizing the economic growth, strengthening market confidence and preventing risks. Industry insiders expressed the belief that the Letter of Commitment is also a normative measure by the Chinese government against this year’s large-scale price war and unfair competition among car companies.

Source: Sina, July 7, 2023
https://finance.sina.com.cn/nextauto/2023-07-07/doc-imyzurcf9154228.shtml

Fiji Renamed Taiwan Representative Office under Pressure from Beijing

The Fiji government, under pressure from Beijing’ changed the name of Taiwan’s Representative Office in its country from “The Republic of China (Taiwan)” to “Taipei.”

The previous Fiji government had a closer relationship with China. Under China’s pressure, on March 15 it renamed the Taiwan representative office to “Taipei Trade Office in Fiji.” It later signed a secret treaty with China on police exchanges, which allowed China to station a police force in this Pacific island country. A pro-democracy multi-party joint government took power earlier this year after the general election. The new government restored the Taiwan office’s original name from “Trade Mission of the Republic of China (Taiwan) to the Republic of Fiji.’  However, 3 months later the Fiji government reverted it back to “Taipei Trade Office in Fiji.”

Zhou Jian, China’s Ambassador to Fiji, expressed that China appreciated Fiji for following the “one China” principle. He said that he had successfully convinced the Fiji government to rename the Taiwan office.

Fiji also faced a strong backlash from China after its new Prime Minister started to consider stopping the police exchange treaty with China.

Source: Voice of America, June 22, 2023
https://www.voachinese.com/a/fiji-changes-taiwan-diplomatic-mission-name-back-to-trade-office-20230622/7148002.html

Xi Jinping Struggles to Get Officials to Follow His Urge to Move to Xiong’an

NTDTV  reported that, although Xi Jinping appears to have the dominant power in China, he is having a hard time getting officials to join his Xiong’an (雄安) initiative.

Xi raised the idea of developing the Xiong’an New Area (雄安新区) in 2017. It is located about 100 kilometers (60 miles) southwest of Beijing and 50 kilometers (30 miles) east of Baoding City, Hebei Province. Xiong’an wll serve two purposes: one, it will be a development hub for the Beijing-Tianjin-Hebei economic triangle, and two, it will be, a place to absorb the non-capital-city-related functions from Beijing to reduce Beijing’s overgrowing size. Several years have passed, Xiong’an’s development has still not fully taken off. One reason is that people, especially those who have power or connections, do not want to leave Beijing to move to Xiong’an.

Xi re-kicked off the Xiong’an efforts this year. In May, Xi visited Hebei Province and chaired a meeting to coordinate the Beijing-Tianjin-Hebei development. At the meeting, Xi urged that landmark projects be moved  out of Beijing and  enterprise’ headquarters and their second- and third-tier subsidiaries, as well as startup companies, be reallocated to Xiong’an. At another Xiong’an conference meeting on May 10, Xi said, “(Companies and institutes) cannot decide whether to move on their own preference. If they need to move, they must move. They cannot do the move on the surface but return back (to Beijing) in reality.”

However, Xi’s harsh words didn’t result in much movement. From June 7 to 9, Hebei Provincial Party Secretary Ni Yuefeng and Governor Wang Zhengpu went to Beijing to visit central government’s agencies, Chinese Communist Party (CCP) Central Committee’s departments, and enterprises, to ask them to set up more projects in Xiong’an.

On June 30, Xi Jinping chaired a CCP Politburo meeting to review “The Opinion on Several Policies and Measures on Develop Xiong’an New Area with High Standard and High Quality.” The meeting stressed to “continuously push landmark projects to Xiong’an.”

On July 3, Cai Qi, CCP Politburo Standing Committee member, held a meeting with the Capital City Planning and Development Committee. The meeting asked its committee member organizations to “take the lead in implementing the (move-to-Xiong’an) plan and supporting the work to help Beijing.”

These repeated efforts from Xi, Cai Qi, and Hebei provincial leaders showed that officials in Beijing are silently resisting Xi’s call to move to Xiong’an.

Source: NTDTV, July 4, 2023
https://www.ntdtv.com/gb/2023/07/04/a103742825.html

Chinese Article: Shanghai Increased Social Security Contributions, Making It Hard for People to Live

An article was circulating among Chinese websites regarding the Shanghai government’s increasing its mandatory social security contribution. The author said that the Shanghai government announced the average wage of urban employees in Shanghai in 2022 was 12,183 yuan (US$1,681) per month, and therefore it increased the mandatory minimum social security contribution to 7,310 yuan per month.

The author discussed two points. First, Shanghai’s average salary was 9,339 yuan in 2019. The newly announced 2022 figure was an increase of over 30 percent from 2019. This 30 percent salary increase was unheard of to many people in Shanghai, especially during this period in which China suffered a 3-year lockdown and economy stalk due to COVID. The authorities might just hike up the salary number in order to impose a higher minimum social security contribution, which is based at 60 percent of the salary.

Second, this increased social security contribution put self-employed people in the position of further struggling to make ends meet. The newly increased social security contribution requires self-employed people to pay at least 2,595 yuan from their own pockets (24 percent of the minimum contribution for the retirement fund and 11.5 percent for healthcare insurance). That is nearly 300 yuan more from a year ago. The author then argued that 47.5 percent of these self-employed people have a monthly income less than 8,000 yuan, out of which, they have to pay the 2,595 yuan for their social security contribution and probably 2,000 yuan for rent, leaving only 3,400 yuan (a very low amount) for daily expenses, not to mention that the government might take income taxes from them as well.

Source: Creaders.net, June 30, 2023
https://news.creaders.net/china/2023/06/30/2622002.html

Chinese Researcher Proposed New Study on Modifying Human Genes

Chinese scientist He Jiankui (贺建奎) might rile the ethics of medical practitioners for the second time.

He shocked the world when he created the first gene-edited babies in 2017 and the Chinese government boasted that he was the “new giant in the world of genetics.” However, the international community heavily criticized him for violating medical ethics. The Chinese government turned around and put him in prison for three years.

On June 29 this year, He tweeted about a new proposal for gene editing in human embryos and claimed that this research was to prevent the Alzheimer’s disease. The document he attached to the tweet said the study would first genetically edit mouse embryos and later human fertilized egg cells or fertilized eggs.

His new proposal has once again raised concerns among scientists and medical ethicists worldwide.

Source: Epoch Times, July 3, 2023
https://www.epochtimes.com/gb/23/7/3/n14027624.htm

Fall of Beijing Official: Heavy Charges for Reading Publications on Political Issues

Former director of the Beijing City’s State-owned Assets Supervision and Administration Commission, Zhang Guilin, has been expelled from the Chinese Communist Party (CCP) and dismissed from his public office.

According to the CCP’s Central Commission for Discipline Inspection and the National Supervisory Commission, the decision to expel Zhang Guilin was made by the Beijing Municipal Committee, with the approval of the Beijing Municipal Commission for Discipline Inspection and the Beijing Municipal Supervisory Commission.

The justification for his expulsion includes weak political consciousness, possession and reading of books and publications on serious political issues, violations of the eight-point austerity rules issued by the central government, acceptance of gifts and consumption cards that may affect the impartial execution of official duties, failure to report personal matters truthfully, involvement in illicit sexual activities and bribery, interference in and intervention with government procurement projects, and exploitation of his position to seek benefits for others and illegally accept[ng property from others.

However, the official announcement does not specify the details of Zhang Guilin’s possession and reading of books and publications on serious political issues.

Based on the definition provided in the “Disciplinary Regulations of the Chinese Communist Party,” publications with serious political issues include those that openly advocate bourgeois liberalization, oppose the four cardinal principles, oppose the party’s decisions on reform and opening up, and engage in unwarranted criticism of the central policies, damage the party’s unity, defame or slander party and state leaders, or distort party and military history. These are evidently more sensitive content, and party members who violate these regulations face severe consequences.

Cases involving books and publications related to political issues are not common, as stated by the Chinese Communist Party’s disciplinary authority. Similar charges were made against Wang Xiaoguang, former deputy governor of Guizhou Province, when he was expelled in 2018. In another case involving Sun Zhengcai, former party secretary of Chongqing, Wu Dehua, former member of the Yubei District Standing Committee, was accused of purchasing and reading books and publications that had serious political issues.

Source: Central News Agency (Taiwan), June 28, 2023
https://www.cna.com.tw/news/acn/202306280029.aspx

Fear of Scandal Exposures: 70 percent of CCP Officials Suffer from Cyberphobia

According to an article on the WeChat public account, “Chang’an Street Governor” by the Beijing Daily, a survey conducted by the “People’s Forum” magazine several years ago showed that about 70 percent of Chinese Communist Party (CCP) officials experienced cyberphobia. They were anxious and uneasy due to concerns about work-related mistakes or negative incidents being exposed, which could affect their future careers. Those who were most worried were propaganda officials and top leaders responsible for public opinion.

The article states that, with the advent of the era of mobile communication, this fear has only increased. From leaders in various organizations to grassroots employees, they fear public opinion, scrutiny, controversy, and accountability. Rather than facing the risks of the spotlight, they prefer to maintain a low profile and navigate their way through in silence.

As a result, CCP officials who are fearful and apprehensive about online public opinion often find themselves at a loss, leading to the proliferation of chaotic situations.

The article provides examples of different reactions by officials. Some try to avoid the situation altogether, adopting an ostrich-like attitude out of fear of being implicated. Others respond slowly, missing the opportunity to handle crises in a timely manner. Some officials adopt a wait-and-see approach, hoping that time will eventually diminish the intensity of the issue. There are those who give inconsistent information, creating confusion and contradictory statements. Some officials rigidly stick to prepared statements without engaging in meaningful communication with the public. Others deliberately conceal their mistakes, preferring to hide or distort information.

Furthermore, officials tend to respond selectively to public concerns. They avoid addressing the core issues and instead focus on trivial matters or on offering empty words.

Source: Central News Agency (Taiwan), July 4, 2023
https://www.cna.com.tw/news/acn/202307040049.aspx

Hong Kong Security Chief: Article 23 Legislation Encompassing Espionage and Cyber Crimes

In an interview published today by Ta Kung Pao, Hong Kong Police Commissioner Chris Tang Ping-keung discussed the upcoming legislation regarding article 23 of the Basic Law. Tang stated that the legislation would take into account the recent situation in Hong Kong and the national security risks faced by the city from China.

He emphasized that individuals who pose a threat to China’s national security continue to engage in various forms of advocacy, infiltration, and collusion with foreign forces. Online platforms are frequently used to incite actions that endanger national security.

Tang noted that, in recent years, Hong Kong has experienced acts of “soft subversion” and that online discourse and publications can easily escalate tensions in society.

He also highlighted the significance of espionage risks and mentioned that intelligence agencies from other countries have openly expressed their intention to recruit secret agents from different nations and organizations globally, in order to gather sensitive information about China.

Therefore, the Hong Kong government is examining areas not covered by the existing national security law and current legislation, such as espionage activities and gaps related to online platforms. The aim is to develop effective and pragmatic measures and provisions to enhance the mechanisms for safeguarding national security.

Tang stated that, among the seven categories of behaviors that should be legislated under Article 23 of the Basic Law, the Hong Kong national security law covers two: secession and subversion of the central government in Beijing. However, the existing local laws only cover certain aspects, indicating the need for further improvement.

Chief Executive Carrie Lam previously stated that the legislation for the article should be completed no later than next year.

Source: Ta Kung Pao (Hong Kong), July, 3, 2023
https://epaper.tkww.hk/a/202307/03/AP64a1dc49e4b068c215b9cd55.html