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CCP Muted Li Qiang’s Statement That China’s Economy Cannot Take Strong Medicine

On June 25, Chinese Premier Li Qiang delivered a speech at the 2024 World Economic Forum regarding China’s economy. According to Singapore’s Lianhe Zaobao, Li Qiang emphasized the importance of addressing both immediate and fundamental issues in China’s economy, drawing an analogy from traditional Chinese medicine. He likened the Chinese economy to a patient recovering from a serious illness, stating that “according to Chinese medicine theory, this is not the time to apply strong medicine; instead, precise and gradual treatment is needed to slowly restore the foundation.”

Chinese state media, including Xinhua News Agency, only quoted Li’s phrase “restore the foundation” without mentioning the critical point about not “applying strong medicine.” The economic platform Gelonghui briefly published a report titled “Li Qiang: The Chinese Economy Cannot Apply Strong Medicine Now,” but it was quickly deleted.

Commentators noted that Li Qiang’s remarks indirectly acknowledged that the Chinese economy is in a severe and desperate condition and that Beijing may not have the ability to fix it.

Source: VOA, June 28, 2024
https://www.voachinese.com/a/china-s-censors-appear-to-delete-premier-s-strong-treatment-theory-20240628/7677019.html

Two Incidents of Foreigners Being Stabbed in China Occurred in June

In June, two incidents of foreigners being stabbed in mainland China occurred. Chinese authorities claimed both were “isolated incidents,” but some analysts believe this is due to the Chinese Communist Party (CCP) fostering and encouraging anti-foreign sentiment among the public.

On June 10, four teachers from Cornell College in Iowa, USA, were stabbed by a 55-year-old local man named Cui while at Beishan Park in Jilin City, Jilin Province. The attacker has been arrested, and the four teachers have returned to the United States. On June 24, at a school bus station in Suzhou City, Jiangsu Province, a Japanese woman in her thirties and her son were stabbed by a 52-year-old unemployed man named Zhou while waiting for another child to return home from school. A Chinese woman, Hu Youping, who tried to stop the attack, was stabbed multiple times by the assailant and unfortunately died later.

At the time of the Suzhou incident, numerous anti-Japanese comments appeared online, with some even praising the assailant’s actions as patriotic. To preserve its international image, the CCP removed the anti-Japanese comments and shifted the media narrative from “Chinese person stabs Japanese mother and child” to “Chinese person bravely saves Japanese mother and child.”

Source:
1. Epoch Times, June 26, 2024
https://www.epochtimes.com/gb/24/6/26/n14277745.htm
2. Radio Free Asia, June 28, 2024
https://www.rfa.org/mandarin/yataibaodao/shehui/hx-06282024045244.html

Foreign Assistant Professor Fired for Commenting on China’s Top Leader

Dr. Björn Alexander Düben, a German assistant professor at Jilin University in China, was dismissed and asked to leave the country within two weeks after an interview with Voice of America. His comments in the interview on China’s foreign policy, particularly regarding Xi Jinping’s visit to Europe. This lead to his sudden dismissal immediately after the interview. Düben, who holds advanced degrees from LSE and Oxford, has worked at the Jilin Univerity for 9 years. He was given the choice to resign or face disciplinary action. After resigning, he was told to leave China in two weeks (by May 30) and warned that he would be denied re-entry in the future. This incident highlights concerns about strict speech control and the arbitrary nature of legal contracts in China.

Source: VOA, June 28, 2024
https://www.voachinese.com/a/dr-d%C3%BCben-s-expulsion-for-engaging-with-foreign-media-06282024/7677656.html

Lianhe Zaobao: China’s Marriage Registrations Declined in the First Quarter

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, according to statistics just released by China’s Ministry of Civil Affairs, the number of marriage registrations nationwide in the first quarter of this year was 1.969 million, a decrease of 178,000 couples compared with 2.147 million couples in the same period in 2023. The decline is significant, and it shows that the “compensation effect” after Covid-19 has gradually faded, and the number of marriage registrations is expected to continue to decline this year. He Yafu, a demography expert who has long tracked Chinese marriage registration data, said that due to the decline in the population of childbearing age, the number of marriage registrations in China has continued to decline for nine consecutive years since peaking in 2013. However, in the long term, due to the decline in the young population and changes in fertility concepts, the downward trend in China’s fertility rate and number of births will be difficult to fundamentally change unless strong fertility support policies are implemented in the future to address this challenge. The current Chinese economic environment is blurring the future of the young generation and is having an impact on their planning.

Source: Lianhe Zaobao, June 17, 2024
https://www.zaobao.com.sg/realtime/china/story20240617-3938825

LTN: China’s Financial Industry Asks Employees to Give Up Deferred Bonuses

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, since Chinese leader Xi Jinping launched the “Shared Prosperity” campaign, several companies in China’s financial industry have implemented strict new restrictions on their senior employees to coordinate with the Xi’s policies. The era of high salaries for Chinese financial workers is coming to an end. China’s largest financial groups have asked senior employees to forego deferred bonuses and, in some cases, return salary from several years ago to comply with a pre-tax annual pay cap of RMB 2.9 million yuan (around US$399,047). Some mutual fund managers are also facing pressure to return non-compliant wages from previous years. Chinese state-owned financial institutions such as China Merchants Group, China Everbright Group and CITIC Group have conveyed the above guidance to employees in some of their departments in recent weeks, people familiar with the matter said. Highly paid financial workers, including investment bankers and fund managers, have been denounced by Beijing as “hedonistic” for their extravagant lifestyles and are among the groups hardest hit by Xi Jinping’s “shared prosperity” campaign. It is unclear at this moment how many financial institutions are subject to the guidance. The incomes of most of the high-ranking financial managers are from deferred bonuses.

Source: LTN, June 27, 2024
https://news.ltn.com.tw/news/world/breakingnews/4719200

CNA: Chinese AI Companies Restricting Services Due to Chip Shortage

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, affected by the U.S. chip export ban, Chinese technology companies have reported chip shortages leading to insufficient computing power. These companies are restricting artificial intelligence (AI) related services. This reliance on chip imports may put China’s technology industry at a disadvantage in the AI competition. China’s semiconductor industry may have found a way to produce advanced chips for 5G smartphones, but it has yet to make chips powerful enough to run AI applications. For example, in order to avoid insufficient computing power, China’s short video and live broadcast platform Kwai had to limit the number of users to test its text-generated video model Kling. Kwai uses Nvidia’s A800 chips to train it AI models. AI startup Moonshot that was recently valued at US$3 billion, also warned its users of their popular chatbot that their computing power may be insufficient during peak hours. Companies such as Alibaba, Baidu and ByteDance that offer large-scale language model applications are telling their enterprise customers who need heavy use to wait in line. All above-mentioned companies declined to comment on this matter.

Source: CNA, June 28, 2024
https://www.cna.com.tw/news/aopl/202406280418.aspx

China Intensifies Anti-Espionage Measures with New Regulations and Nationwide Efforts

On July 1, 2024, China implemented new regulations clarifying law enforcement procedures for its Anti-Espionage Law, which was revised a year ago. The new rules grant national security agencies permission to inspect smartphones and other electronic devices.

The revised Anti-Espionage Law, effective since July 2023, broadened the definition of espionage and allows for the investigation of activities related to “national security and interests.” Under suspicion of espionage, authorities can examine personal belongings and electronic devices.

China has detained at least 17 Japanese citizens since 2014 under this law, with 5 still in custody. In March 2023, a male executive from Astellas Pharma’s Chinese subsidiary was detained and later arrested in October.

Local governments are also strengthening anti-espionage efforts. Several provinces and municipalities held national security meetings in May and June 2024, focusing on preventing infiltration by hostile forces and enhancing surveillance using big data.

The education sector is increasing anti-espionage propaganda, with national security staff visiting schools to discuss security issues, including risks associated with advanced technologies like AI.

China’s revised law requires citizens to report suspected espionage activities and offers rewards for significant contributions, with some individuals receiving over 100,000 yuan. The country is establishing a mechanism for citizens to expose and report espionage activities.

Source: Nikkei Chinese, July 1, 2024
https://zh.cn.nikkei.com/china/cpolicssociety/56013-2024-07-01-10-52-20.html

China Grapples with Anti-Foreign Sentiment Following Attacks on Foreigners

Recent attacks on American and Japanese citizens in Jilin and Suzhou have sparked heated discussions on Chinese social media platforms. The Suzhou incident, which resulted in the death of a Chinese national, led to a surge in anti-Japanese sentiment.

Chinese social media platforms have begun intervening to curb nationalist rhetoric. Some commentators believe the Suzhou incident could have far-reaching effects on China’s economy and foreign investment.

The attack in Suzhou, where a Japanese mother and child were assaulted, resulted in the death of a Chinese bus attendant who tried to prevent the attack. Online discussions following the incident ranged from praising the attacker as a national hero to questioning the loyalty of the deceased attendant.

Former Chinese media professional Zhao Lanjian noted a proliferation of anti-Japanese videos online, many created by young people openly expressing radical views. He suggested these groups might be organized and tacitly approved by authorities.

In response to the controversy, major Chinese social media platforms like Tencent, Douyin, NetEase, and Baidu have taken steps to moderate extreme content and suspend accounts promoting xenophobia.

Political scholar Wu Zuolai observed that nationalism has long been used by Chinese authorities to garner public support and divert attention from social issues. He noted that the recent escalation in anti-Japanese sentiment could have serious economic consequences, potentially affecting foreign investment and job opportunities in China.

The Chinese government has expressed regret over the Suzhou incident and pledged to protect foreigners in China, but some Japanese media outlets have criticized the response as inadequate.

Source: Voice of America, July 2, 2024
https://www.voachinese.com/a/china-cracks-down-on-online-anti-japan-comments-20240702/7682219.html