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China’s Residential Foreclosures Are Spiking

Chinascope recently reported that 200,000 people in China stopped making their mortgage payments (See:  http://chinascope.org/archives/28823).  On January 14, 2022, Professor Han Fuling from the School of Finance of the Central University of Finance and Economics posted on Weibo, “At the beginning of 2022, the four major banks sued 200,000 owners for defaulting on their mortgages.” Weibo has since removed the posting.  The four major banks are the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, and the Construction Bank.

Since the beginning of 2022, there has been more news about defaults and foreclosures of residential houses in China.

All Foreclosure Auctions are well-known online auction platforms in China.  As of January 30, 2022, 1.72 million court-ordered foreclosures of residential houses were placed on the auction list.

In 2017, the number of foreclosure houses was 9,000; in 2018 it was 20,000; in 2019, 500,000; in 2020, more than 1.2 million. As of mid-December 2021, foreclosure houses in China hit a record high at over 1.68 million.

Among them, Jiangsu Province ranked first with 209,900 units, Zhejiang ranked second with 179,300 units, and Henan, Guangdong, and Shandong ranked third, fourth, and fifth.

While these are cumulative numbers, not net annual increases, an unprecedented spike is happening in foreclosures of residential houses.

Source: Xinhua Daily Media Group, January 17, 2022

http://www.xhby.net/fc/xwzx/202201/t20220117_7388962.shtml

Propaganda: CCP Organized Chinese Olympics Athletes to Vow to Compete for Its Superior Leader

On January 25, Beijing organized over 170 athletes competing in the Beijing Winter Olympics Games to come to Tiananmen Square to make a vow. The vow was in the strong style of the Chinese Communist Party’s (CCP’s) propaganda that was rare to see in China these days but common during Mao Zedong’s era.

Their vow consisted of five sentences:

“For the sake of the motherland – rush, rush, rush (为了祖国冲冲冲)

To live up to the people’s expectations – fight, fight, fight (不负人民拼拼拼)

To repay the Superior Leader I will spare no effort (报答领袖豁出去)

Always compete for first place and never give up (永争第一不认怂)

Follow the (CCP’s) General Secretary to go to the future (跟着总书记一起向未来)”

Chinese netizens criticized that some sentences in the vow were so flagrant in order to please the communist party leader Xi Jinping and that nowadays, people can only see this style of communication in North Korea’s propaganda. Some state media avoided mentioning some sentences. Youth Daily  (a newspaper under the Shanghai Communist Youth League Committee) posted a title of the event with a blank page. CCTV reported the event, but its video cut out the third and fourth sentences.

The full vow can be seen here: https://twitter.com/GaoFalin/status/1486366103060336644?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1486366103060336644%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.secretchina.com%2Fnews%2Fgb%2F2022%2F01%2F28%2F996347.html

CCTV’s news video: https://www.youtube.com/watch?v=dVSzU0vXX4g

Source: Epoch Times, January 28, 2022
https://www.epochtimes.com/gb/22/1/28/n13535794.htm

Former Wuhan Municipal Party Secretary Ma Guoqiang Held Accountable for Covid-19 Epidemic, Made a High-Profile Comeback

According to the Sound of Hope radio network, on the second anniversary of the lockdown of Wuhan (due to the covid-19 outbreak), Ma Guoqiang, the former secretary of the Wuhan Municipal (Communist) Party Committee, who Xi Jinping dismissed for accountability (for the Wuhan Covid-19 Epidemic), made a high-profile comeback.

At the “two sessions” (the National People’s Congress and the People’s Political Consultative Conference) of Hubei Province on January 23, Ma Guoqiang was elected as the deputy director of the Standing Committee of the Provincial People’s Congress. “Beijing News,” “Caixin,” “Phoenix.com” and other official media have reported the news of Ma Guoqiang’s new appointment.

In 2020, Xi Jinping removed Jiang Chaoliang, then secretary of the Hubei Provincial Party Committee, and Ma Guoqiang, Secretary of the Wuhan Municipal Party Committee, to curb the loss of the regime’s reputation and credibility due to Wuhan’s covid-19 outbreak running out-of-control. Xi took the opportunity to replace the top positions with members of his faction to be in charge of Hubei.

Source: Sound of Hope, January 23, 2022
https://www.soundofhope.org/post/587362

Global Times Editorial: What Exactly Does America’s ‘Competition’ Mean?

China’s state-run media Global Times published an editorial commenting on the Biden Administration’s China Policy after Biden had taken over the White House for one year. Below in an excerpt from the editorial.

On Jan 19th, “Rosenberg, the senior director of China affairs at the White House National Security Council, made a special elaboration on the United States’ China policy. She said that the United States will strengthen its deterrence against China in the Taiwan Strait and the Indo-Pacific region to ensure victory in the competition with China. At the same time, it will strive to manage competition with China, maintain communication channels with China, and set up guardrails to restrain competition and manage potential risks.”

“We have heard this many times over the past year. ‘Competition’ is a key word repeatedly emphasized by the Biden administration in its relations with China. U.S. Secretary of State Blinken once proposed the ‘3C’ policy, that is, ‘competition, confrontation, cooperation.’ Among these ‘3Cs,’ ‘cooperation’ has been increasingly marginalized, and “competition” has become more and more prominent, dominating the C position. But what exactly does Washington mean by ‘competition’?”

“Rosenberg revealed that the United States is about to launch a so-called ‘Indo-Pacific Economic Framework’ with regional partners. Obviously, this ‘Indo-Pacific Economic Framework’ is aimed at China. It wants to create a small economic and trade circle that surrounds China but excludes China, and aims to poach the foothold of economic and trade cooperation between China and foreign countries (including China and the United States). Rosenberg specifically mentioned the Taiwan Strait, where the U.S. has continued its unabated actions. This is a provocation to China’s core interests and continues to undermine the political foundation of China-U.S. relations.”

“Rosenberg also said that the United States is committed to working with its allies to shape the strategic environment encircling China. As soon as the words were out, we immediately saw them in action. On the 20th, Japan and France held the ‘2+2’ talks between foreign ministers and defense ministers. On the 21st, Biden held online consultations with Japanese Prime Minister Fumio Kishida. On the same day, Britain and Australia held ‘2+2’ talks between foreign ministers and defense ministers. The three events have a common theme: ‘countering Chinese influence.'”

“Through ‘listening to the words and watching the deeds’ of the United States in the past two years, “it is not difficult for the Chinese to come to the judgment: In Washington’s mind, confrontation and containment are the essence, cooperation is an expedient measure, and competition is a discourse trap. The White House has changed owners, but its China policy has not changed. President Biden has repeatedly said that he does not want to mess up the U.S.-China relationship and does not want a conflict between the two countries; but the actual actions of the United States are constantly weakening the foundation of China-U.S. cooperation, while creating and accumulating the risk of Sino-U.S. conflict.”

Source: Global Times, January 20, 2022
https://opinion.huanqiu.com/article/46TyxitXGcW

Economy: 200,000 People in China Stopped Paying their Mortgage

Recently a message was widely discussed on the Internet. On January 14, Professor Han Fuling of the Central University of Finance and Economics obtained some “insider information” and posted it: When 2022 started, over 200,000 people had stopped making their mortgage payments and were sued by the four major banks in China. The next day, Professor Han posted a message from an attorney in Zhengzhou City, Henan Province: “So many people have stopped their mortgage payments. We were exhausted after sending (that many) attorney letters.”

Recently China’s real estate prices in certain cities have dropped. Many people lost their jobs last year. Thus, people may be unable or are unwilling to make their mortgage payments. However, China does not have a way to protest if individuals decide to go bankrupt. If the person defaults on his mortgage payment, he will not only lose his down payment, but he is still responsible for (and thus, has to pay) the financial loss to the bank. If the bank auctions off the house but can’t fully recover the money, then that the person still owes the bank.

Source: Radio Free Asia, January 21, 2022
https://www.rfa.org/mandarin/zhuanlan/jingmaorediansaomiao/econ-01212022154111.html

Pandemic: Eight Provinces and Municipalities in China Reported COVID-19 Cases

On January 25, eight provinces and municipalities in China reported COVID-19 cases, including Beijing, Henan, Hebei, Tianjin, Shanghai, Liaoning, Heilongjiang, and Xinjiang.

Beijing has seven high risk or medium risk regions. The Beijing government reported 15 infection cases on January 25. Xu Hejian, Vice Minister of the Propaganda Department of the Beijing Municipal Party Committee said, “The current pandemic situation in Beijing is serious and complicated.”

The Chinese Communist Party is known to hide the COVID-19 information. So, the actual infection situation is unknown.

Related postings on Chinascope:

Source: Epoch Times, January 25, 2022
https://www.epochtimes.com/gb/22/1/25/n13528036.htm

Economy: Beijing’s Foreign Exchange Settlement Surplus Is Due to Drop in Chinese Tourists Who Go Overseas

In January 2022, China’s State Administration of Foreign Exchange published data showing that the total foreign exchange settlement in 2021 had a surplus of US $267.6 billion, an increase of $110 billion from the $158.7 billion surplus in 2020.

Epoch Times pointed out that this surplus was mainly due to the drop in Chinese tourists’ spending overseas. In 2020, due to the COVID-19 pandemic, 20 million Chinese traveled abroad, a drop of 87 percent from a year earlier. Chinese tourists’ spending overseas was $116 billion. It was less than what the foreign tourists spent in China.

In 2021, an estimated 25.6 million Chinese went abroad. The total tourists’ spending difference has not been released, but in the first half of 2021, Chinese tourists’ spending overseas was US $44.4 billion less than what the foreign tourists spent in China. Following this trend, the annual tourists spending gap will be around US $100 billion. Therefore, China’s foreign exchange settlement surplus may just come from Chinese tourists spending less overseas.

Source: Epoch Times, January 25, 2022
https://www.epochtimes.com/gb/22/1/25/n13529285.htm

German Media: IOC Supports China’s Violation of Human Rights

As the Beijing Winter Olympics are approaching, the German media is paying more attention to China and is becoming more critical of China.

Norddeutscher Rundfunk (NDR), a public radio company based in Hamburg, criticized the International Olympic Committee (IOC) for playing dirty games and turning a blind eye to forced labor in China. The radio station reported that thousands of ethnic Uyghurs are being held in Xinjiang and the cotton used by the Olympic Committee’s sponsor, Anta sports, also comes from Xinjiang. The IOC has turned a blind eye to this fact. The Beijing Winter Olympics are controversial for a couple of reasons. For one thing, it hardly ever snows where this event is held. Ski areas and related construction projects are built in nature reserves. The second is the widespread concern about human rights in China, especially for the Uyghurs in Xinjiang. According to a months-long investigation by NDR and the German newspaper Süddeutsche Zeitung, the IOC plays a dual role here. On the one hand, IOC officials present themselves as supposedly politically neutral. On the other hand, they are in cahoots with the Chinese government and support China’s actions that undermine human rights.

Business Insider in Germany found multiple security vulnerabilities in China’s “My2022” application for the upcoming Olympics. The German Olympic Sports Federation is also concerned about the Chinese government’s surveillance. The University of Toronto’s Citizen Lab reported that all games participants and visitors are required to use the My2022 application. Users are expected to enter personal data, such as health forms and passport data. However, the Lab found major security vulnerabilities in its analysis, including access to sensitive data, such as travel itineraries and medical information. Voice messages and shared files were also not adequately encrypted.

Source: Radio France International, January 25, 2022
https://rfi.my/86zz