Chinascope – Page 105

Xinhua: U.S. Becomes EU’s Largest Crude Oil Supplier

Xinhua recently reported that, as a “by-product” of the protracted Ukraine crisis, the European Union had to increase its energy dependency on the United States last year in order to make up for the huge energy gap caused by the sanctions on Russia. According to data released by Eurostat, the United States has replaced Russia as the largest crude oil supplier to the European Union, followed by Norway and Kazakhstan. As of December 2022, 18 percent of the EU’s imported crude oil came from the United States. This data represents a significant shift since, in the meantime, Russian crude oil accounts for 4 percent of total EU crude oil imports. However, many EU countries used to rely on Russia for energy. And the counterproductive effect of sanctions against Russia is becoming increasingly apparent. Energy shortages, soaring prices, and soaring living expenses have become common social problems. A senior official of the Russian government said that Russia has successfully transferred all oil exports affected by Western sanctions to “friendly countries”. Russian Deputy Prime Minister Alexander Novak said that Russia’s oil exports to India increased by about 22 times in 2022, but he did not disclose the specific amount. However, Russia’s oil and gas output is expected to drop this year amid Western curbs and fewer European buyers.

Source: Xinhua, March 29, 2023
https://bit.ly/3m0xhiv

Briefings | | April 16, 2023 | Geo-Strategic Trend

HKET: 43 Percent of Chinese Companies Downsizing in the Next 12 Months

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that, according to a survey report released by the consulting firm AlixPartners, 17 percent of Chinese companies have already laid off employees and 43 percent plan to lay off employees or stop recruiting in the coming year. AlixPartners interviewed more than 600 CEOs and senior management staff of Chinese companies. The results show that, as the economic downturn and geopolitical crisis intensify, business leaders want to properly deal with these challenges. Around 72 percent of the respondents are very much concerned about the business environment continuously being disrupted. However, 87 percent said they do not know where to start. China’s overall supply chain, from logistics to production, is facing unprecedented disruption, covering a wide range of industries. About 38 percent of the business leaders said they are reinventing their business operation models. Almost 99 percent of them recognized that they will need to make changes in the next three years in response to numerous internal and external disruptions. In addition to the supply chain and energy issues, business leaders are most worried about the resistance to innovation and the speed of technological development. Inflation and supply chain pressures are making it difficult for companies to maintain and grow profit margins, and the challenges are increasing. Prioritization of operational superiority and collaboration across departments and business areas is key for businesses to succeed and emerge stronger in the age of disruption.

Source: HKET, March 27, 2023
https://china.hket.com/article/3492018/

Briefings | | April 16, 2023 | Economy/Resources

Global Times: Australia and NATO Issued Ban on TikTok

Global Times recently reported that Australian media disclosed earlier that, on April 4th, Australian Prime Minister Albanese approved a ban on the use of TikTok on equipment within the Australian government, and notified the state and territory governments about the ban. They are expected to follow suit. The Australian government decided that the ban will target all government-issued equipment, citing a so-called “espionage risk.” The move is in line with Australia’s “Five Eyes” partners – the US, the UK, Canada and New Zealand. The Australian Federal Attorney General declared in a statement that this decision was made on the advice of intelligence and security agencies and that the ban will come into effect as soon as it is practical. TikTok denied there are security issues and said the app poses no risk to Australian users.

Earlier, Global Times also reported that two people familiar with NATO said that NATO officials sent a notice to all staff in the organization on March 31st, announcing the prohibition of downloading and using the short video social app TikTok on NATO-provided equipment on the grounds of so-called “security considerations.”

A Chinese Foreign Ministry spokesperson stated that China has always maintained that data security issues should not be used as a tool to generalize the concept of national security and unreasonably suppress companies from other countries.

Source: Global Times, April 4 and March 31, 2023
https://world.huanqiu.com/article/4CLwKcdRX1L
https://m.huanqiu.com/article/4CJMAljHzeB

Briefings | | April 11, 2023 | Geo-Strategic Trend Information/Technology

Huawei’s Net Profit Dropped 68.7 Percent Last Year

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that Huawei released its 2022 annual report. The report shows that Huawei’s global sales revenue was RMB 642.3 billion yuan (around US$93.5 billion), a year-over-year increase of 0.9 percent, and its net profit was RMB 35.6 billion yuan (around US$518 million), a sharp decrease of 68.7 percent year-over-year. In 2022, Huawei’s sales in the high-end smartphone market fell sharply by 44 percent year-over-year, and its share in the high-end smartphone market further dropped from 5 percent in 2021 to 3 percent. Regarding Huawei’s return to the 5G smartphone market, Huawei’s rotating chairman responded that the mobile phone business has been most affected by the U.S. sanctions, from the second in the world to “others.” Currently Huawei can only make 4G phones. To buy a Huawei 5G mobile phone, one would have to wait for permission from the U.S. Department of Commerce. Huawei also confirmed its strategy of not building cars, but helping car companies build good cars. According to Huawei’s CFO, in 2022, Huawei’s operations faced greater pressure. Overall, the operating performance was in line with expectations. At the end of 2022, Huawei’s asset-liability ratio was 58.9 percent and its net cash balance was RMB 176.3 billion yuan (around US$25.7 billion), showing a stable financial position.

Source: Sina, March 31, 2023
https://cj.sina.com.cn/articles/view/7501277582/1bf1c698e02001dxw4

Briefings | | April 11, 2023 | Economy/Resources Information/Technology US-China Relations

China’s People’s War to Be Used against Taiwan

From PLA Daily: China’s People’s War to Be Used against Taiwan:

China’s military newspaper published an article advocating that Mao Zedong’s people’s war should be applied to and used against Taiwan. The People’s Liberation Army Daily (PLA Daily) ‘s article of March 30, 2023, is viewed as a sign that Beijing has included both military and political considerations in its military reunification efforts against Taiwan.

The article stated that the people’s war is a strategy and it is also the method used in a just war for national independence, for the people’s liberation, and for national prosperity. It also generally adheres to the fundamental principle of defensiveness.

The article said that the integrity of the strategy and tactics of the people’s war emphasizes both military and non-military means leveraging each other as one holistic strategy of politics, economy, diplomacy, public opinion, and military forces.

The article expressed that the people’s war requires the mobilization of the whole country to overcome local deficiencies and disadvantages so as to defeat this “powerful opponent.”

The article also said that active defense is a product of the people’s war and it is also the fundamental requirement to carry out the war of justice effectively.

The article further stated that the people’s war strategy reminds the military of the political aspects that should be taken into account. In addition, it suggested that the protests that occurred in Hong Kong should be avoided in Taiwan.

According to analysts, Beijing has mentioned that the people’s war should be carried forward and based on active defense. China has always regarded the military reunification with Taiwan as a defensive operation because Beijing views Taiwan as China’s territory.

Source: The PLA Daily, March 31, 2023 http://www.81.cn/yw_208727/16213136.html

Briefings | | April 4, 2023 | Defense/Military Geo-Strategic Trend

Kindergartens Have Shut Down Due to a Drop in Population

The impact of the One-Child policy continues to surface in China. In 2022, 46.28 million children were in kindergarten, a decrease of 1.78 million in population from the previous year. This has also led to kindergarten closures. The number of kindergartens dropped from 2.94 million in 2021 to 2.89 million in 2022, a loss of 5,000. This is the first-time the number of kindergartens has decreased in the past 15 years.

Seeing that its One-Child policy has resulted in a big reduction in new-borns, the Chinese Communist Party (CCP) switched to a two-child policy, boosting the new baby population to 18.83 million in 2016 and over 17 million in 2017. But it didn’t last long and free fall came back quickly. The new-born population dropped to 15.23 million in 2018, 14.65 million in 2019, and 12.00 million in 2020.

Source: Sina, March 24, 2023
https://edu.sina.com.cn/l/2023-03-24/doc-imymyqqc8479107.shtml

Briefings | | March 29, 2023 | Economy/Resources

Top Officials Will Report Work to the CCP Central Committee and to Xi Jinping

Xinhua News Agency reported on March 2 that, “According to the relevant provisions of the Party’s Central Committee, members of the Politburo; the Secretaries of the Party’s Central Committee Secretariat; members of the CCP committees at the Standing Committee of the National People’s Congress, the State Council, and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC); and the Party Secretary of the Supreme People’s Court and the Supreme People’s Procuratorate shall report to the Party Central Committee and to General Secretary Xi Jinping in writing every year.”

All these officials are at the State level or Vice-State level. There are 24 members (including Xi Jinping) in the party’s Politburo, 7 Secretaries at the Secretariat, 10 members at the Congress’s party committee, 10 members at the State Council party committee, 12 members at the CPPCC party committee, one party secretary of the Supreme Court, and one party secretary of the Supreme Procuratorate. Excluding overlapping counts, a total of 57 officials will report to the CCP Central Committee and Xi Jinping.

Source: People’s Daily, March 3, 2023
http://politics.people.com.cn/n1/2023/0303/c1024-32635242.html

Briefings | | March 29, 2023 | @CS Government/Politics

The CCP Provided a Downgraded Reception for Former Taiwan President Ma Ying-jeou

Taiwan’s former President and former Kuomintang Chairman Ma Ying-jeou arrived in China on March 27 to worship his ancestors. Political observers take his reception in China as the Chinese Communist Party’s (CCP’s) countermeasure to Taiwan President Tsai Ing-wen’s trip to the U.S. at the same time.

Reports showed that the CCP provided a much lower level of reception to Ma than what he had expected:

The CCP called him “Mr. Ma Ying-jeou” instead of “President Ma Ying-jeou.”
Ma did not receive a “Presidential treatment” at the airport. Ma’s team expected to see Ding Xuexiang, member of the Standing Committee of the CCP Politburo, a state-level official to welcome Ma there. Instead, Chen Yuanfeng (陈元丰), Deputy Director of the State Councils’ Taiwan Affairs Office, a Deputy-Ministerial level official, came to meet Ma at the airport.
Ma planned to bring six secret service agents, each with a gun and a bulletproof jacket and Ma himself would wear another (the seventh) bulletproof jacket. However, Beijing only allowed Ma and his guards to carry 3 guns, 2 bulletproof briefcases, and 3 bulletproof jackets. (meaning Ma would not be able to wear one). Beijing also didn’t allow them to bring any radio and anti-listening bug devices with them.

A commentator pointed out that the CCP treated Ma not as a former president, but rather as a former provincial governor, since it wanted to downgrade Taiwan to the level of a province.

Source:
1. Liberty Times, March 27, 2023
https://news.ltn.com.tw/news/politics/breakingnews/4252848
2. China Times, March 23, 2023
https://www.chinatimes.com/realtimenews/20230323004426-260407?chdtv

Briefings | | March 29, 2023 | @CS Geo-Strategic Trend Government/Politics

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

The CCP’s Performing Arts Troupes in the U.S.