Chinascope – Page 138

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 | | October 17, 2022 | Geo-Strategic Trend

TSMC’s Third-Quarter Net Profit Surged 80 Percent

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the foundry giant TSMC (Taiwan Semiconductor Manufacturing Company) released its third-quarter financial report. Data showed that TSMC’s revenue in the third quarter surged and its profit margin increased significantly. TSMC’s net profit increased by 80 percent compared with the same period last year, setting a new record. From the perspective of revenue sources, TSMC’s smartphone business revenue in the third quarter increased by 25 percent to 41 percent month-over-month, and its high-performance computing (HPC) business revenue increased by 4 percent to 39 percent. From a regional angle, revenue from North American customers accounted for 72 percent of total revenue, up from 64 percent in the second quarter. Revenue from Mainland China accounted for 8 percent, down from 13 percent in the previous quarter. The main figures in TSMC’s third quarter financial report were significantly higher than expected, indicating strong market demand for advanced process products. While delivering dazzling performance, TSMC announced that it would lower its full-year capital expenditures to US$36 billion. This is considered an important signal of a slowdown in the semiconductor market. Experts expressed the belief that the semiconductor industry may decline in 2023, but it will still be a year of revenue growth for TSMC. TSMC is Apple’s primary chip supplier for its cutting-edge mobile devices.

Source: Sina, October 13, 2022
https://finance.sina.com.cn/jjxw/2022-10-13/doc-imqqsmrp2483888.shtml

Briefings | | October 17, 2022 | Information/Technology

CNA: British Government Officially Gave Notice to Remove Huawei by 2027

Primary Taiwanese news agency Central News Agency (CNA) recently reported that the British government issued an official notice on October 13 to 35 domestic broadband and mobile network operators, as well as to the Chinese telecom giant Huawei that Huawei must completely remove Huawei equipment from the UK’s 5G public network by the end of 2027. The ban also includes 1.) an immediate halt to the installation of Huawei equipment on 5G networks and 2.) the complete removal of Huawei from facilities important to national security by January 28, 2023, and 3.) the refusal to install any Huawei products affected by U.S. sanctions on full-fiber networks. In a notice to Huawei, the UK Digital Ministry explained the reasons for the ban. Huawei is headquartered in China and its business is controlled on the Chinese end. The Chinese government and related actors have carried out and are expected to continue to carry out cyber-attacks on the UK. The Chinese government and related actors continue to seek to exploit weaknesses in telecommunications service equipment and networks in order to undermine their security. Chinese laws such as the National Intelligence Law allow the Chinese government to require Chinese companies and their employees to engage in activities “harmful to the UK.” Also, in terms of law enforcement practices, the Chinese government may even ask Huawei employees to cooperate with the Chinese government. The Chinese government’s authority under the statute means Huawei’s equipment could be secretly embedded with malicious functions. The UK Telecommunications (Security) Act, which went into effect in November last year, gave the UK government new powers to impose stricter controls on high-risk telecom service providers based on national security concerns.

Source: CNA, October 13, 2022
https://www.cna.com.tw/news/aopl/202210130365.aspx

Briefings | | October 17, 2022 | Geo-Strategic Trend Information/Technology

North Korea Fired More than 40 Missiles This Year

North Korea fired a short-range ballistic missile into the waters off its eastern coast on October 14, the latest in a series of recent North Korean launches.

South Korea’s Joint Chiefs of Staff said the missile was launched from the Sunan area near the North Korean capital Pyongyang. Reuters said this was at least North Korea’s 41st ballistic missile launch this year.

North Korea stated that its recent string of missile tests, including an intermediate-range ballistic missile that flew over Japan last week, was in response to the joint military exercises by South Korea and the United States.

North Korea’s latest launch in the early hours of Friday also drew Japan’s attention. The Japanese government said the missile is believed to have fallen outside Japan’s exclusive economic zone, about 370 kilometers from the coast.

Source: Epoch Times, October 13, 2022
https://www.epochtimes.com/gb/22/10/13/n13844834.htm

Briefings | | October 13, 2022 | Geo-Strategic Trend

Possible Methods for the CCP to Interfere on Taiwan’s Election

Taiwan will hold its election on November 26. Included will be local public service positions, the mayor, county executive, city and county council members, and others.

Su Ziyun, Director of the Defense Strategy and Resources Studies, Institute for National Defense and Security Research, told the Epoch Times that the U.S. has confirmed that the Chinese Communist Party (CCP) has interfered in a number of other countries’ elections. The CCP spent at least several billion dollars to intrude directly or indirectly in other countries’ political operations, using agents such as the Confucius Institute.

Su thinks that the CCP has three methods to interfere in Taiwan’s election this year. One, spread specific information, via their agents in Taiwan, to shift voter’s minds. Two, force Taiwan business people who are doing business in China to state publicly that they support certain candidates. Three, use Taiwan’s local associations, such as agricultural and fishery associations, temple systems, and whatever they can, to impact the support for local candidates.

Source: Epoch Times, October 9, 2022
https://www.epochtimes.com/gb/22/10/9/n13841851.htm

Briefings | | October 13, 2022 | Geo-Strategic Trend Government/Politics

CCP Requested Foreign Diplomat’s Missions in Hong Kong to Hand in Building Floor Plans

According to Financial Times, in the past few months, China’s Ministry of Foreign Affairs requested foreign diplomat’s missions in Hong Kong to submit their real estate information, including floor plans. The Chinese Communist Party (CCP) also wants to collect and review their leases and/or sales contracts.

Diplomats from these foreign countries are concerned that the CCP’s request will jeopardize the security of their buildings and their properties.

Source: Radio France International, October 4, 2022
https://www.rfi.fr/cn/港澳台/20221004-中国据报要求驻港外交使团提供所有房产资料

Briefings | | October 13, 2022 | Geo-Strategic Trend

Several Countries Are Taking Action against China’s Police Stations on Their Land

After a report revealed that the Chinese Communist Party (CCP) has established police service stations and conducted police operations in foreign countries, some of these countries started conducting investigations. In some other countries politicians have put on pressure for action to be taken.

Safeguard Defenders, a human rights organization in Spain, reported in September that the CCP has extended its police operations overseas. It has set up at least 54 police service stations in 30 countries, including the U.S. (New York), France (Paris), Canada (Toronto), Spain (Madrid), and elsewhere. Their main mission is to hunt for those Chinese who stole money and went overseas. “Rather than using legal forms of international cooperation, they have resorted to pressuring targets to return. In fact some 230,000 people have been involved for a little over year.”

These police service stations have physical locations and phone numbers so that people can call and provide information. Beijing claimed that its purpose was to provide ID services or China’s driver’s license renewal to Chinese citizens overseas.

However, some countries where Beijing has conducted these police operations, feel this is a violation of their sovereignty.

Ireland’s Foreign Affairs Ministry officials have expressed concern to the Chinese Embassy and are consulting within the entire government as to how to resolve this issue.

The Ministry of Interior in Spain started its investigation.

In the U.S., Jim Bank (R), Chairman of the Republican Study Committee, Michael Waltz (R), Mike Gallagher (R), along with 18 other House Representatives, wrote a letter to Secretary of State Blinken and Secretary of Justice Garland, stating, “There should be no room for the Chinese government to exercise extraterritorial law enforcement unilaterally on U.S. soil.”

On October 4, the Canadian House of Commons committee on relations between Canada and the People’s Republic of China held a hearing on this issue. Weldon Epp, a China lead with Global Affairs Canada, stated at the hearing, “The activity that’s being alleged (about the police service stations) would be entirely illegal, totally inappropriate and would be the subject of very serious representations.”

Sources:
1. Scribd.com
https://www.scribd.com/document/599145539/Banks-Waltz-Gallagher-letter-to-Austin-Blinken-about-CCP-police-arm-in-NYC?secret_password=Rnjt1JQ6WoEg4gW1d91F
2. Epoch Times, October 10, 2022
https://www.epochtimes.com/gb/22/10/10/n13842597.htm
3. Epoch Times, October 9, 2022
https://www.epochtimes.com/gb/22/10/9/n13841856.htm
4. Epoch Times, October 11, 2022
https://www.epochtimes.com/gb/22/10/11/n13843260.htm

Briefings | | October 13, 2022 | @CS Geo-Strategic Trend Government/Politics

China’s State Outlet Re-emphasized Zero-Covid Policy

Despite speculation that, after the 20th Chinese Communist Party’s Congress coming up in a week, the government may relax stringent Covid controls and reopen to the world, a recent article in the state mouthpiece dashed many people’s hopes.

An article titled “Enhancing Confidence and Patience in the Current Epidemic Prevention and Control Policy,” appeared in People’s Daily on October 10. It claimed that “China’s current epidemic prevention and control policy fits the national conditions, and is scientific and effective.”

The article then went on to say that as long as victory is not achieved, one cannot speak lightly of success. The multiple different sub-strains of the new Omicron mutant currently found in China are not less transmissible and pathogenic than the previously prevalent Omicron strain, The latest strain still poses a great threat to the elderly and to patients with underlying diseases. The article urged, “It is for this reason that we must remain vigilant about the spread of the epidemic and increase our confidence and patience in our epidemic prevention and control policies.”

While most countries around the world have announced the end of the Corona virus epidemic and have returned to a normal economic and social life, Chinese authorities still adhere to a strict zero-Covid policy. The article that was published emphasized, “We have the conditions and ability dynamically to achieve a zero number of Covid cases.”

Source: Deutsche Welle, October 10, 2022
https://p.dw.com/p/4Hztn

Briefings | | October 11, 2022 | Government/Politics

China’s Reaction to Trump’s Election Win

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

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