Chinascope – Page 116

New Factions among Xi’s Loyalists

Before its 20^th National Congress, the Chinese Communist Party’s (CCP’s) internal fighting used to be among three groups. Each groip was led by a former or current CCP top leader, These were the loyalist group (led by Xi Jinping); the Shanghai clique (led by Jiang Zemin), and the Youth League clique (led by its spiritual leader Hu Jintao).

Since the CCP’s 20^th National Congress, Xi Jinping’s followers have dominated the key positions all across the political spectrum. Though they are all from Xi’s camp, they themselves have their own factions. Wu Guogang, advisor to the former CCP’s General Secretary Zhao Ziyang, observed that Xi’s people can be grouped into four factions (identified by locations where Xi had worked previously) and under another five groups.

The four factions are the Fujian (Province) faction, the Zhejiang (Province) faction, the Shanghai (Province) faction, and the Shaanxi (Province) faction. Xi had worked in the first three provinces. The last one, Shaanxi, was where Xi’s father Xi Zhongxun (习仲勋) started. Thus it was also considered a base for Xi’s loyalists.

For example, at the State Council, Li Qiang (李强) – who is anticipated to be the next Premier – is from Zhejiang; Ding Xuexiang (丁薛祥) – who is anticipated to be the next Executive Vice Premier – is from Shanghai; and He Lifeng (何立峰) – who is anticipated to be the next Vice Premier in charge of Finance – is from Fujiang，

Xi also used many officials from another five groups. These are officials are from the military and industrial sectors, officials related to Tsinghua University, officials related to the CCP’s Central Party School, officials connected to Xi’s wife Peng Liyuan, and officials from the security sector.

These factions and groups sometimes engage in political in-fighting among themselves.

Source: NTDTV, January 28, 2023
https://www.ntdtv.com/gb/2023/01/28/a103636555.html

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

Economy: Professors Suggested Taxing People’s Savings to Force Consumers to Spend

China is pushing to make consumer spending its next economic growth driver since its exports has slowed down and government infrastructure investment (mainly focused on housing and construction) has become ineffective.

Recently, an Economy professor from Sichuan Agricultural University published an article on how to get people to spend. He argued that it is difficult to get the high income groups and low income groups to spend more, so the focus should be on the middle income people. His suggestion was to impose a tax on the portion above 500,000 yuan (US$74,000) of people’s money in the bank.

In August 2021, another so-called “famous economist” Xu Hongbo from Wuhan University of Technology put forth a similar idea. A tax should be based on the total cash-equivalent of assets including bank savings, cash, gold (both gold reserve and gold jewelry), and money in the online payment accounts such as Alipay and Wechat. Assets below 1 million yuan would be exempt. Then 1 – 1.5 million and above would be taxed as follows: 1 percent for 1.5 to 2 million; 2 percent for 2 to 2.5 million; 3 percent would be for higher amounts, …, with 40 percent as the top tax rate.

Source: China Digital Times, January 27, 2023
https://chinadigitaltimes.net/chinese/692392.html

Hot Topics | | January 29, 2023 | Economy/Resources

Procuratorate: “The Weak Will Be Trampled by the Strong”

The Procuratorate (China’s term for the Public Prosecutor) at Yichuan County, Shaanxi Province posted the following message on its official Weibo account (Weibo is a social media in China): “Stop talking about showing pity for the weak. In this world, the weak are to be trampled by the strong. You are either to be trampled or you have to become the strong.”

This message has triggered hot discussions among the Chinese people.

Source: China Digital Times, January 19, 2023
https://chinadigitaltimes.net/chinese/692178.html

Hot Topics | | January 24, 2023 | Government/Politics

China Researcher: How Did China Beat the Western Countries in African Investment?

Guancha (The Observer) website is a media in China with a focus on international affairs. It published an interview with Ms. He Wenping, a researcher at the Institute of West Asia and Africa, Chinese Academy of Social Sciences (CASS), on the differences between China and the Western countries in their investments in Africa.

Ms. He said Africa has three shortcomings: poor infrastructure, lack of skilled people, and lack of money. China’s investments are focusing on these things, such as infrastructure projects and training local people. This includes the Luban Workshop – a number of vocational education classes – and industrial parks at local sites.

Regarding the Western countries’ saying that China is creating a “debt trap” in Africa, Ms. He said it was because they control the discourse power. China is making improvements with CGTN (a state-run English-language news channel based in Beijing) to have its own voice heard. CGTN’s programs are on YouTube and Tweeter and follow the international reporting standard. CGTN’s London station, U.S. station, and Africa station have local people as hosts and reporters. For example, the Africa station at Nairobi, Kenya’s capital city, has an “Africa Live” program with an African anchor and African reporters who go to hot spots to interview people every day. Thus some African scholars are following it every day.

Regarding differences between the West’s and China’s investment in Africa , Ms. He said that the West is telling the African countries what to do while China just treats them as partners. The West’s investments have strings attached but China’s do not. Biden held his U.S.-Africa summit in Washington, DC, while China always has its summit in Africa.

Source: Guancha, January 16, 2023
https://www.guancha.cn/HeWenPing/2023_01_16_676060.shtml

Briefings | | January 24, 2023 | Geo-Strategic Trend

Following the U.S., the Netherlands and Japan to Take Action on Chinese Chip Industry

Popular Chinese online news site Redian recently republished a Bloomberg report indicating that the Netherlands and Japan, home to major suppliers of semiconductor manufacturing equipment, are about to join a Biden administration-led effort to limit exports of the technology to China. Export controls in the Netherlands and Japan could be finalized as soon as late January, according to people familiar with the matter. Japanese Prime Minister Fumio Kishida and Dutch Prime Minister Mark Rutte discussed their plans with U.S. President Joe Biden at the White House earlier this month. “I am very confident that we will get there,” Rutte told Bloomberg in an interview on the sidelines of the World Economic Forum in Davos, Switzerland. However, the Netherlands and Japan’s restrictions may not go as far as the U.S. restrictions do, which not only limit the export of U.S.-made machines but also prevent U.S. citizens from working with Chinese chipmakers. Even so, once all three countries take action, China may find itself even less able to acquire the technology or expertise needed to manufacture the most advanced semiconductors. A spokesperson for the White House National Security Council declined to comment. The U.S. Commerce Department rules are opposed by some U.S. semiconductor companies but supported by bipartisan lawmakers. China said Biden’s new chip tech curbs will hurt its economic recovery.

Source: Redian, January 19, 2023
https://redian.news/wxnews/231251

Briefings | | January 24, 2023 | Geo-Strategic Trend Information/Technology

Economy: Chinese Researcher – People Should Work Throughout Their Entire Life

China’s aging problem has become severe. Dang Junwu, Deputy Director of the China Research Center on Aging, offered a solution that people should just keep working forever. According to Baidu, the China Research Center on Aging is the only national-level research institute specializing in the science of aging.

Dang said the following in a video: “We have entered an aging society. Once we are 60, we still have on average 27 years to live. How do we spend these 27 years? We should have the idea of ‘working throughout our entire life.’ (He who keeps working) does not want to simply enjoy a comfortable retirement; he actually takes pleasure in (working continuously ).”

Source: Aboluo Website, January 22, 2023
https://www.aboluowang.com/2023/0122/1857923.html

Hot Topics | | January 24, 2023 | Economy/Resources Government/Politics

Global Times: Biden Administration Extends China Chip Export Restrictions to Macau

Global Times recently reported that the United States has further tightened export controls on Chinese chips and chip manufacturing equipment, and has further extended the restrictive policies imposed on Mainland China to Macau. The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce published an “interim final rule” in the Federal Register, saying that the control measures announced in October last year also apply to the Macau Special Administrative Region. The announcement claimed that the restricted exports of chips and chip manufacturing equipment may be transshipped from Macau to other places in Mainland China, so the new measures include Macau in the scope of export restrictions. After the implementation of the measure, U.S. companies will need to obtain a license to export to Macau. Last October, without any prior warning, the U.S. Department of Commerce imposed the most extensive restrictions on chip-related exports to China in history. In addition to prohibiting the export of advanced chips, technology and equipment, it also prohibits “Americans” from supporting the “development or production’ of advanced chips in Chinese companies without permission.”

Source: Global Times, January 18, 2023
https://world.huanqiu.com/article/4BLNDLEqFe3

Briefings | | January 24, 2023 | Information/Technology US-China Relations

China’s New Energy Vehicle Growth Slowed after Subsidy Cancellation

Well-known Chinese news site Sina (NASDQ: SINA) recently reported that, according to the data just released by the China Passenger Car Association (CPCA), from January 1 to 15, the national new energy passenger car manufacturers wholesaled 187,000 units, a month-over-month decrease of 38 percent. The market retail sales reached 184,000 units, a month-over-month decrease of 33 percent. According to a report released by CPCA, on January 18, the growth of new energy vehicle sales has entered a bottleneck stage. After the discontinuation of the government’s new energy policy in 2023, sales growth will be a serious problem. At the same time, the prices of new energy models have increased too much in the early stage. Orders are decreasing and the price cuts of leading manufacturers such as Tesla have been aggressive, which has caused consumers to take a wait-and-see attitude. China’s new energy vehicle subsidies started in 2010. In that year, a total of 25 cities in three batches were selected to carry out demonstration and promotions of energy-saving and new energy vehicles. Since then, the industrialization process has started. In 2016, the subsidy policy entered the full application stage. Under the government subsidy policy dividends, the new energy vehicle market has achieved rapid development. Recently, Tesla China began to cut prices, which disrupted the market rhythm to a certain extent. After Tesla announced the price cuts, the number of new orders increased significantly, and the traffic at Tesla stores in many regions of the country increased significantly too. Some customers who originally planned to order other brands even cancelled their orders and turned to Tesla.

Source: Sina, January 20, 2023
https://finance.sina.com.cn/chanjing/cyxw/2023-01-20/doc-imyauhaw5442320.shtml

Briefings | | January 24, 2023 | Economy/Resources Information/Technology

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.