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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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The Paper: Indian Nuclear Submarine Successfully Fired a Missile for the First Time

Well-known new Chinese news site The Paper recently reported that India has successfully launched a ballistic missile from its first domestically produced Destroyer-class nuclear submarine, hitting a target area in the Bay of Bengal with very high accuracy. This shows that the India’s nuclear submarine officially has the ability to launch ballistic missiles from a submerged state. India has become the sixth country in the world after the United States, Russia, China, France and the United Kingdom to have nuclear strike and counterattack capabilities on land and from the sea and air, enhancing its “trinity” nuclear deterrence capability, while also bringing more instability to the already-complex situation in South Asia. As an important platform for sea-based nuclear forces, nuclear submarines have the advantages of self-sufficiency, endurance, and high raid power. They can stay away from bases and go deep into enemy-controlled areas for long-term patrol and for surveillance activities, which can effectively make up for the lack of range of submarine-launched ballistic missiles. However, India currently has only one strategic nuclear submarine capable of using submarine-launched ballistic missiles. It also has the lowest number of missiles in the world. According to the plan of the Indian Navy, five nuclear submarines are part of its strategic plan. The sea-based nuclear force has always been a weak link in the construction of India’s nuclear force system. This is a major technical challenge for India due to the high technical reserve required to launch missiles from nuclear submarines. This recent success shows that India has made significant progress in the construction of sea-based nuclear forces. However, the number, technical level and range of missiles that are among India’s strategic nuclear submarines are far behind those of the world’s leading nuclear powers.

Source: The Paper, October 22, 2022
https://www.thepaper.cn/newsDetail_forward_20396208

Briefings | | |   Geo-Strategic Trend

Apple Suspended Adoption of Chinese Flash Memory Chips

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that Apple appears to have suspended plans to use YMTC (Yangtze Memory Technologies Co., Ltd.) flash memory chips in its products. Apple had previously confirmed that it was testing NAND Flash chips imported from China’s YMTC in iPhones. Apple’s decision came after the U.S. government imposed a new round of export controls on Mainland China’s tech industry on October 7. Multiple sources said Apple had completed a months-long certification for longevity before the U.S. government announced it would impose stricter export restrictions. Earlier, Apple noted that it did not consider the use of Yangtze memory chips in phones sold outside of China, and said all user data stored on the flash memory chips used by the company was “fully encrypted.” At present, YMTC is the largest domestic NAND Flash supplier in China, and its mass-produced 128-layer NAND Flash chips are also China’s most advanced NAND Flash chips. Apple initially planned to use YMTC NAND Flash chips starting this year because its chips are at least 20 percent cheaper than those from other major rivals, A source from a top supply chain executive said that the reason for Apple’s suspension of the plan to adopt YMTC chips this time was that YMTC actively proposed to Apple to “exit Apple’s supply chain.” It is because it does not want to continue to stimulate the sensitive nerves of the United States at this sensitive time.

Source: NetEase, October 17, 2022
https://www.163.com/dy/article/HJT1F7040511838M.html

Briefings | | |   Information/Technology US-China Relations

China Places Airplane Order with Airbus Despite Big Airline Losses

After ordering 292 Airbus planes in July, China added another 40 planes in September, making the order total 332 planes for US $42.1 billion. The orders were placed by China Southern Airlines, Air China, and China Eastern Airlines.

However, China’s civil aviation industry has accumulated a loss of nearly 300 billion yuan (US $41 billion) since the COVID pandemic, with a loss of 108.9 billion yuan (US $15 billion) in the first half of this year alone. There are 12 Chinese airlines whose total assets are lower than their total debts.

The ordered Airbus planes are the A320NEO series plane, a narrow-body mainline airliner. China has manufactured its own narrow-body mainline airliner, the C919, and started selling it overseas.

Source: Epoch Times, October 15, 2022
https://www.epochtimes.com/gb/22/10/15/n13846316.htm

Briefings | | |   Economy/Resources Geo-Strategic Trend

Concerns about Using China-made Security Scanning Equipment in Strasbourg, France

Three members of the European Parliament, Bart Groothuis, Nathalie Loiseau, and Reinhard Bütikofer, sent a letter to Strasbourg, France regarding the use of China-made baggage scanning equipment at the Strabourg airport. They asked for an independent investigation to see if the technology of the manufacturer Nuctech  caused spy risk. Groothuis also expressed concern that the airport may have to rely on a Chinese company for innovation, maintenance, and technical support.

Nuctech is a partially state-owned security inspection products company in China. Its products include X-ray scanning materials and sensors for use at ports and airports. The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) put China on its blacklist in 2020.

The Strasbourg Airport signed a contract with French distributor DETEKT’IN in early October, in which DETEKT’IN will supply and maintain Nuctech’s equipment at the airport.

Some other French airports, such as Bordeaux, have already used Nuctech’s equipment.

Source: Epoch Times, October 15, 2022
https://www.epochtimes.com/gb/22/10/15/n13846264.htm

Briefings | | |   Geo-Strategic Trend

Chinese Violence: Its Diplomats Dragged Protesters Inside Its Consulate to Beat Them

On Sunday, China’s consul-general and other staff members of the Manchester Consulate in England attacked protesters outside their facility and dragged a man inside their compound so they could beat him. As the situation heated up, China continued its wolf warrior approach and lodged representations to the U.K. to demand the protection of its diplomats.

On Sunday, a group of Hong Kong activists held a peaceful protest outside the Chinese Consulate. In response to their peaceful protest, a group of men, wearing masks, came out of the consulate gate and started beating them. The consulate staff members even dragged one protester inside the consulate grounds to assault him further. U.K. police intervened and pulled the man out.

The victim, Bob Chan, explained, “I was pulled inside and was beaten up.”  He had injuries to one of his eyes, and pain in his head and back. He said, “The worst is that near my spine there are some internal injuries and it still hurts when I sit down.”

Scenes of the attack were videotaped and widely viewed online. The British were shocked by the Chinese diplomats’ actions.

British Foreign Secretary James Cleverly told Sky News that the episode was “absolutely unacceptable” as the protests were “peaceful and legal.” James pointed out, “They were on British soil.”

British Foreign Office summoned Chinese charge d’affaires Yang Xiaoguang on Tuesday. “Today we have made our view clear to the Chinese authorities: the right to peaceful protest in the UK must be respected,” said foreign office minister Zac Goldsmith.

China countered toughly.

Chinese Foreign Ministry spokesperson Wang Wenbin said at the media conference on Wednesday that China lodged representations to the UK. “We hope that the UK will earnestly fulfill its responsibility and take effective measures to strengthen the protection of the premises and staff of Chinese embassy and consulates in the UK,” Wang said.

Zheng Xiyuan, China’s consul-general at Manchester, who was videotaped for coming to the protesters, kicking the banner, and pulling Bob’s hair, told Sky News that he was at the demonstration “peacefully.” “He (Bob Chan) was abusing my country, my leader, I think it’s my duty,” said Zheng.

In a letter sent to Greater Manchester Police, Zheng stated the banners featured a “volume of deeply offensive imagery and slogans,” including a picture of the Chinese president Xi Jinping with a noose around his neck. He also stated that he was disappointed police didn’t do more to help the consulate and claimed his staff were under attack.

Sources:
1. Radio France International, October 19, 2022
https://www.rfi.fr/cn/国际/20221019-中国称就驻英领馆港人被打事件向英方-提出交涉
2. Radio Free Asia, October 18, 2022
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/al-10182022082738.html
3. Sky News, October 20, 2022
https://news.sky.com/story/chinese-consul-general-defends-actions-after-being-seen-pulling-protesters-hair-in-manchester-12724934
4. Global Times, October 19, 2022
https://www.globaltimes.cn/page/202210/1277465.shtml

Briefings | | |   @CS Geo-Strategic Trend Government/Politics

Global Times Accused the U.S. of Four Major Sins in Manipulating Cyber Hegemony

China’s state-run media Global Times published an article recently accusing the U.S. of dominating cyberspace and launching cyber attacks. The article said,“In June 2022, Northwestern Polytechnical University issued a ‘Public Statement’ claiming that it had suffered a cyber attack from overseas. In September, it was found that a cyber attack against Northwestern Polytechnical University came from the National Security Agency (NSA) Specific Intrusion Operations Office (TAO). The cyber hegemony by the United States originated in cyberspace, covered the world, and spread to the whole globe. Its cyber attacks have long been systematic. The cyberspace seems peaceful. However, on the other end of the Internet, there are countless ‘tentacles’ of the United States waiting to seize secrets. The United States has been manipulating cyber hegemony and creating troubles.”

The article enumerated “four major sins” by the U.S. in manipulating cyber hegemony.

1. The United States has established a large and professional cybersecurity intelligence agency to pave the way for cyber intrusions.

”On September 5, 2022, the ‘Investigation Report on the Discovery of NSA Cyber Attacks by Northwestern Polytechnical University (Part 1)’ jointly issued by the National Computer Virus Emergency Response Center of China and 360 Companies mentioned that the NSA’s subsidiary The Specific Intrusion Operations Office (TAO) was behind the cyberattacks on China’s Northwestern Polytechnical University. “

“The TAO, composed of more than 2,000 military and civilian personnel, is recognized as the cyber warfare force with the highest level of combat in the world.”

2. The United States conducts cyber attacks on other countries and steals secrets from other countries.

“In recent years, the TAO has launched tens of thousands of network attacks on China, controlling tens of thousands of network servers, Internet terminals, network switches, telephone switches, routers, firewalls, and more, and has stolen no less than 140GB of information and data.”

3. By combining public opinion hegemony with cyber hegemony, the United States creates a protective shell for its cyber attacks.

4. The United States tramples on the cyber sovereignty of other countries and arbitrarily infringes upon the Internet human rights of other countries’ citizens.

Source: Global Times, September 29, 2022
https://opinion.huanqiu.com/article/49qsYllip9g

Briefings | | |   US-China Relations

China to Build More Coal-fired Power Plants

According to mainland Chinese media, the National Development and Reform Commission, the government’s macroeconomic management agency, held a meeting in September to ensure the supply of coal, pushing the newly added capacity of coal-fired electricity generating units to a total of 165 million for the coming two years. It is widely believed that the main problem is a serious power shortage that will come in the winter and summer of next year.

Coal-fired power generation dominates China’s thermal power generation. According to the official data, as of August this year, coal-fired power accounted for 85.4 percent of the country’s 1.3 billion kilowatts of installed capacity. Coal-fired power is also the most important supporting source in China’s current power system. By the end of 2021, 1.11 billion kilowatts of coal power provided 60 percent of the country’s electricity generation capacity and supported over 70 percent of the peak load of the power grid.

In April last year, to achieve the carbon peaking and carbon neutrality goals, the Chinese authorities proposed the strict control of coal power projects. Many places in China were experiencing power shortages during the winter of 2021. The government had to reverse its policy direction, and approve more coal power projects.

During the summer of this year, extreme high temperatures and dry weather reduced the amount of hydroelectric power generation, further highlighting the role of coal power. From January to August of this year, China approved 31.98 million kilowatts of new coal power projects, a significant increase of 413 percent in approved capacity over the same period last year.

Source: Central News Agency, October 14, 2022
https://www.cna.com.tw/news/acn/202210140241.aspx

Briefings | | |   Economy/Resources

CNA: Taiwan Ranked Richest in Asia and Fifth Globally

Primary Taiwanese news agency TheCentral News Agency (CNA) recently reported that the financial services company Allianz just released its Allianz Global Wealth Report 2022. The Report shows Taiwan’s per capita net assets amounted to 138,220 euros (approximately US$134, 363), surpassing Japan and Singapore to rank first in Asia and 5th in the world (after the United States, Switzerland, Denmark and Sweden). The latest report, compiling data for 2021, analyzes the asset and debt positions of nearly 60 countries, indicating 2021 may be the last year of substantial economic growth, and 2022 will be a turning point, with the world likely to undergo a “dramatic shift.” The report also highlights that Asia is richer than Europe. The total financial assets of private households in China are estimated at 32 trillion euros, accounting for 14 percent of the world’s total financial assets. Japan is at 16 trillion euros. China and Japan are second only to the United States’ 103 trillion euros. Asia has overtaken Europe as the second richest region after the U.S. However, the Report bluntly says 2022 will be a turning point. At the beginning of the year, the Russian-Ukrainian war stifled the recovery after the epidemic and turned the world upside down, fueling soaring inflation, and governments of various countries resorted to monetary tightening policies to curb inflation. In addition, the war also deepened the energy and food crises. The report argues that monetary tightening is squeezing the economy and markets after the value of household financial assets hit a record high for three years in a row. “in real terms, households will lose ten percent of their wealth.”

Source: CNA, October 14, 2022
https://www.cna.com.tw/news/afe/202210140102.aspx

Briefings | | |   Geo-Strategic Trend