Chinascope – Page 124

Only 40 Percent of China’s Movie Theaters Are in Operation due to the Covid Lockdown

Affected by the Covid lockdown, the proportion of Chinese cinemas in operation fell to a new low. Netease Entertainment, an online media covering entertainment news, reported that only 41.7 percent of China’s cinemas are in business compared to the ratio of 59.70 percent a month ago on October 25. The total number of operating cinemas is 5178, the lowest in the past six months.

Caixin.com reported that many theaters continued being inoperable due to the Covid lockdown and the national box office revenue for the week of Nov. 21-27 was RMB 112 million (NT$482 million), down 45.63 percent from the previous week.

Only 14 cinemas remain in operation in Beijing, which used to be a big box office contributor as China’s first-tier city. Now more than 90 percent of Beijing’s theaters are closed. Cinemas in Tibet, Xinjiang, Qinghai, Ningxia and Chongqing are completely shut down; Inner Mongolia, Heilongjiang, Jilin, Liaoning, Shanxi, Hebei and Henan all see less than 50 percent of their cinemas in operation.

Source: Central News Agency (Taiwan), November 28, 2022
https://www.cna.com.tw/news/acn/202211280318.aspx

Briefings | | November 29, 2022 | Economy/Resources

Chinese Newspaper Global Times: UK Government Unreasonably Suppressed Chinese Companies Again

Global Times, a Chinese newspaper under the People’s Daily, recently reported that the British government asked a number of departments to stop installing surveillance cameras related to China in sensitive buildings, citing security risks. The Cabinet Office of the British government stated in a written request submitted to Parliament that it was asking all departments under its jurisdiction to prohibit these installations, “given the threat to the UK, and the increasing capability and interoperability of these systems, we need additional controls.” The UK government’s new rules, which apply to surveillance camera equipment made by companies subject to Chinese security regulations, include instructing departments to disconnect such equipment from core computer networks and consider removing it entirely. This is not the first time the UK has cracked down on Chinese surveillance products. Chinese Foreign Ministry Spokesperson Mao Ning said at a press conference in response to this matter that China firmly opposes some people’s generalization of the concept of national security and their unreasonable suppression of Chinese companies. Ne also said that in addition, the Chinese government will firmly safeguard the legitimate rights and interests of Chinese companies.

Source: Global Times, November 25, 2022
https://world.huanqiu.com/article/4AcXuQ7XIFv

Briefings | | November 28, 2022 | Geo-Strategic Trend Information/Technology

RTI: U.S. Broadened Bans on New Chinese Communications Equipment Imports

Radio Taiwan International (RTI) recently reported that the U.S. Federal Communications Commission (FCC) just issued a broadened ban on new telecommunications equipment from Chinese companies such as Huawei and ZTE, citing “unacceptable risk” to US national security. The FCC said it had passed a final rule prohibiting the sale or import of equipment deemed to pose a national security risk to the United States. This is the latest blow to Chinese telecommunications equipment makers. Jessica Rosenworcel, chairwoman of the FCC, circulated the proposed measure to three other commissioners who will give their final approval next month. She said these new rules are an important part of our ongoing efforts to protect the American people from national security threats involving telecommunications. The FCC follows the requirements of the Safety Equipment Act of 2021, which was signed into law by President Biden last November. The following Chinese companies, Huawei, ZTE, Dahua Technology, Hangzhou Hikvision Digital Technology, and Hytera Communications will all be impacted by this ban. The measures would effectively disallow these companies from selling new devices in the U.S. and will also expand and update the FCC’s “covered list” of prohibited products to prevent private entities from bringing products from these Chinese companies into the United States as well. Huawei declined to comment on this matter, while ZTE did not immediately respond to a request for comment.

Source: RTI, November 26, 2022
https://www.rti.org.tw/news/view/id/2151714

Briefings | | November 28, 2022 | Information/Technology US-China Relations

RFA Chinese: Tencent Launched another Round of Layoffs

Radio Free Asia, Chinese Edition, recently reported that sources said that Chinese tech giant Tencent Holdings has begun a new round of layoffs in its video streaming, gaming and cloud computing divisions. This round of layoffs affects three of Tencent’s six business units. It is difficult to determine the size of the layoffs. China’s tech sector continues to feel the effects of regulatory crackdowns and the Zero Covid government policies that have slowed China’s economic growth. Earlier this year, Tencent had already cut staff along with other well-known tech companies such as the Alibaba Group. Tencent management said they were focused on cutting costs and have closed non-core businesses in some areas. The Shenzhen-based company is eyeing global expansion to offset slowing growth in China. Tencent is recalibrating its mergers and acquisitions strategy, focusing more on buying majority stakes in mostly overseas game companies. Market analysts expressed the belief that Tencent will report flat or slightly smaller revenue for its third quarter. Tencent declined to comment on the matter.

Source: RFA Chinese, November 15, 2022
https://www.rfa.org/cantonese/news/tencent-11152022065627.html

Briefings | | November 21, 2022 | Economy/Resources Information/Technology

Apple Factory in Shanghai Stopped Hiring Workers

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that Shanghai Pegatron, known as Apple’s second largest foundry (after Foxconn), issued an announcement on October 15th that it would suspend recruitment. Pegatron has always been the main force in manufacturing iPhone Plus models. The reporter visited Pegatron’s Shanghai Apple factory in person, and the recruitment interview office was empty. The security guard at the factory gate explained, “The factory is not that busy right now, and recruitment has stopped.” According to sources, Apple cut 70 percent and 90 percent respectively of the orders from two of its suppliers in China. At the same time Apple asked at least one component supplier to stop production immediately. The recent sharp reduction in working hours has caused dissatisfaction among many employees, since their income has been reduced substantially and they can only get a base salary. As the largest iPhone OEM, Zhengzhou Foxconn accounts for half of the world’s iPhone assembly work. Foxconn also lowered the company’s performance forecast for the fourth quarter, due to the Zero Covid government policy. Apple has been spreading its supply chain around the world to manage risk. This year, the number of factories from the United States and South Korea increased significantly. In particular, the number of American suppliers has increased from 54 to 85.

Source: Sina, November 15, 2022
https://finance.sina.cn/tech/csj/2022-11-15/detail-imqqsmrp6279086.d.html

Briefings | | November 21, 2022 | Information/Technology US-China Relations

Lianhe Zaobao: Moody’s Risk Management Unit Closed its China Operations

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that Moody’s has closed the risk management unit of its China operations, thus cutting about 100 jobs. People familiar with the matter said Moody’s Analytics closed its offices in Beijing, Shanghai and Shenzhen after discussing operational efficiency and profitability. However, Moody’s credit rating business will continue. Wall Street is now grappling with China’s strict Zero Covid government policy, volatile markets and state intervention. Morningstar had cut its staff in China earlier this year too. In response to inquiries, a Moody’s spokesperson said that, as announced on the most recent earnings call, Moody’s is taking steps to align its global workforce with current and anticipated economic conditions. Moody’s continues to maintain a strong presence in China and make constructive contributions to China’s sustainable growth and the further development of the Chinese domestic market. As a rating agency, Moody’s said Beijing’s support for its domestic real estate sector is not enough to eliminate the pessimistic outlook.

Source: Lianhe Zaobao, November 18, 2022
https://www.zaobao.com.sg/realtime/china/story20221118-1334459

Briefings | | November 21, 2022 | Economy/Resources US-China Relations

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.