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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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

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

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

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French Chamber of Commerce Called for Removing Excessive Covid Restrictions

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the “French Embassy in China” posted in Chinese Weibo and pointed out that China’s Zero Covid policy has had an impact on French companies in China, who provide 570,000 jobs in China. French companies very much welcome the recent 20 measures to optimize the Covid control framework announced by China on November 11, which will greatly reduce the negative impact of pandemic prevention on economic activities and people’s lives. However, the French Chamber of Commerce in China has noticed that since the policy was first announced, the actual implementation results have not met the expectations of French companies in China. The Chamber of Commerce called on the Chinese government to truly implement the 20-measure policy and remove unnecessary and excessive covid restrictions. The Chamber of Commerce reiterated that French companies hope to see a clear strategy formulated in the near future to get out of the Zero Covid policy as soon as possible. China still plays a pivotal role for French companies and a transparent, predictable and fair business environment is essential. The announcement issued by the Chamber indicated that the three major obstacles are: severely restricted Chinese domestic business travel, international travel between China and France is still being restricted, and there is a more and more serious trend of restricting local business activities within a city. The French Embassy Weibo received massive comments from Chinese netizens, mainly to support the Embassy. Some thanked the French for the posting since the Chinese government typically don’t delete Embassy content to control speech.

Source: NetEase, November 25, 2022
https://www.163.com/dy/article/HMVR6U2K0534B9EY.html

Briefings | | |   Economy/Resources Geo-Strategic Trend Social Stability

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 | | |   Economy/Resources

China’s State TV Deletes Footage of Maskless World Cup Audience

China’s draconian COVID-19 control measures have led to nationwide street protests. The ongoing World Cup contributed to Chinese people’s anger as the state TV broadcasted the larges crowds who were in the game audience and who wore no mask. Now, Beijing is even cutting out close-ups of unmasked soccer fans in Qatar.

Agence France-Presse reported that during the live broadcast of the group stage match between Japan and Costa Rica, the sports channel of state broadcaster CCTV (China Central Television) Sports replaced close-ups of unmasked fans waving flags with images of individual players, officials or long shots of the stadium.

As tens of millions of people in major cities including Beijing, Guangzhou and Chongqing are still under some form of lockdown, the images of a happy and raucous maskless World Cup audience presents a stark contrast, angering Chinese netizens.

On November 22, a WeChat post questioning whether “China is on the same planet as Qatar” was swiftly removed from the cyberspace.

Source: Central News Agency (Taiwan), November 27, 2022
https://www.cna.com.tw/news/acn/202211270231.aspx

Briefings | | |   Social Stability

CCP Political and Legal Affairs Committee: Resolutely Crack Down on Disruption of the Social Order

On November 28, two days after the outbreak of nationwide protests against the zero-COVID policy, the Chinese Communist Party’s (CCP’s) Political and Legal Affairs Committee (PLAC) held a plenary session emphasizing the need to “resolutely crack down on the infiltration and sabotage activities of hostile forces, and resolutely crack down on illegal and criminal acts that disrupt the social order.”

Chen Wenqing, the new head of the PLAC, presided over the meeting.  Wang Xiaohong, the Minister of Public Security, Zhou Qiang, the president of the Supreme People’s Court, and Zhang Jun, the president of the Supreme People’s Procuratorate also attended. As the four are the leaders of China’s judiciary authorities, the meeting was considered to be the CCP’s response to the protests.

This meeting called for strengthening the “combat spirit” and accelerating the construction of a higher level of “a safe China under the rule of law.”

This meeting stressed the need promptly to channel and resolve conflicts and disputes and to help solve the practical difficulties of the people. It also asked “resolutely to combat the infiltration and sabotage activities of hostile forces, resolutely to combat illegal and criminal acts that disrupt the social order, and effectively to maintain the general stability of society.”

Source: Central News Agency (Taiwan), November 29, 2022
https://www.cna.com.tw/news/acn/202211290383.aspx

Briefings | | |   Social Stability

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 | | |   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 | | |   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 | | |   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 | | |   Information/Technology US-China Relations