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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 CCP’s Performing Arts Troupes in the U.S.

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Insider Explains Why Long Article Praising Xi Was Removed

During the Third Plenary Session of the 20th Chinese Communist Party (CCP) Congress, Xinhua News Agency published an article titled “Reformer Xi Jinping.” The article was over ten thousand words in length. After publication, the article was quickly taken down, even before the end of the plenary session (see Chinascope’s briefing on the matter here). There are some unofficial reports suggesting that the article was seen as subtly critical of Xi Jinping and that Li Shulei, the Minister of the CCP Central Propaganda Department, had ordered its removal. Insiders said that the article referenced Deng Xiaoping throughout, portraying Xi as following in Deng’s path to further deepen Deng’s reforms. Critics said that the article’s author was subtly promoting Deng as the “sole legitimate” figure who drove China’s “reform and opening up,” with Xi being merely a follower. Xi, however, views himself as a great leader, with stature similar to that of Mao Zedong and higher than that of any other CCP leader.

Articles praising Xi or promoting “Xi Jinping thought” still dominate the top spots on CCP-controlled state media platforms.

Source: Epoch Times, July 26, 2024
https://www.epochtimes.com/gb/24/7/26/n14299045.htm

Briefings | | |   Government/Politics

CCP Attempts to Recruit Taiwanese Internet Celebrities to Produce “Cross-Strait Unification” Propaganda

Recently there has been a heated discussion in Taiwan about the Chinese Communist Party (CCP) targeting Taiwan’s Internet celebrities so as to influence Taiwan youth and politics.

A well-known Taiwanese internet celebrity with millions of followers, “Porter King,” stated that the “Cross-Strait Youth Association of China” will sponsor 10 groups of Taiwanese Internet celebrities for free trips to mainland China this summer to film videos. Taiwanese artist Ho Yi-chi mentioned that she received an invitation from a Beijing-based film production company last week to participate in a short film project, and that the project was related to politics. The “Beijing Ciguang Film and Media Company” proposed a bold plan to “construct a new type of cross-strait relationship” by preparing to invite Taiwanese artists and internet celebrities to “form a party and participate in Taiwanese elections.” It plans to establish the “Taiwan Harmony Party (台湾拥和党).” The plan is to hold an inaugural meeting in Taipei in July 2024, with the goal of participating in the 2026 local and mayoral elections in Taiwan by leveraging the high popularity of these internet celebrities and artists. Their minimum goal is to win one mayor and ten councilors.

In February this year, the Financial Times reported that the CCP’s United Front Work Department began hosting Taiwanese youth for trips to mainland China, hoping they would start producing short videos for TikTok and YouTube. The goal was to “foster patriotism” among Taiwanese youth (loyal to mainland China) and to “encourage them to join efforts to promote cross-strait unification.”

On June 18, Taiwan Premier Su Tseng-chang said that, more so than military and economic threats posed by mainland China, “the biggest threat is cultural invasion.” He expressed his “hope that the public will strengthen their inner defenses.” He emphasized that “the government certainly respects freedom of speech and internet autonomy, but it is absolutely necessary to issue very clear warnings when appropriate.”

Source: BBC, June 20, 2024
https://www.bbc.com/zhongwen/simp/chinese-news-69131401

Briefings | | |   @CS Geo-Strategic Trend

Philippines Resupplies its Soldiers on Second Thomas Shoal After Reaching Temporary Agreement with China

China and the Philippines have clashed multiple times at the disputed Second Thomas Shoal (仁爱礁). Earlier this month, the two parties reached a “temporary arrangement” enabling the Philippines to resupply the soldiers it has stationed on a ship grounded at the Second Thomas Shoal. The details of the temporary agreement have not been made public.

China’s Foreign Affairs Ministry spokesperson state “three principles” regarding the agreement:

  1. The long-term grounding of a Philippine “warship” on the Second Thomas Shoal infringes on China’s sovereignty. China still demands that the Philippines tow away the vessel and restore the shoal to its original unoccupied and unconstructed state.
  2. Before the Philippines tows away the “grounded” warship, if the Philippines needs to provide living supplies to the personnel on the ship, China is willing to allow the Philippines to carry out supply operations on humanitarian grounds. This would be permitted after prior notification to China and on-site verification, with China monitoring the entire process.
  3. If the Philippines transports large quantities of construction materials to the ship, attempting to build permanent structures and outposts, China will resolutely block such actions in accordance with the law.

Philippine Foreign Affairs Department spokesperson said that Beijing’s characterization of the agreement was distorted.

On July 27, 2024, the Philippines conducted a supply operations to the “grounded” warship. China’s Foreign Affairs Ministry’s spokesperson stated that, under the temporary arrangement reached between China and the Philippines, the Philippines supply operation was conducted with prior notice to China; upon on-site verification by China, China confirmed that only humanitarian living supplies were being transported, and China allowed the passage. The Philippines, however, stated that it had not sought China’s approval, and that China’s Coast Guard had not in fact stepped on the Philippines vessel to inspect its cargo.

Sources:
1. VOA, July 28, 2024
https://www.voachinese.com/a/philippines-says-china-mischaracterised-south-china-sea-resupply-mission-deal-20240728/7715929.html
2.  China’s Ministry of Foreign Affairs website, July 22, 2024
https://www.fmprc.gov.cn/fyrbt_673021/202407/t20240722_11457472.shtml
3.  China’s Ministry of Foreign Affairs website, July 27, 2024
https://www.fmprc.gov.cn/fyrbt_673021/202407/t20240727_11461676.shtml

Briefings | | |   Defense/Military Geo-Strategic Trend

Top Jewelry Store Chow Tai Fook Sees Retail Value Drop 20 Percent, Closes 180 Stores in China

On July 24, Chow Tai Fook Jewlery Group Limited released its unaudited key operating data for the three months ending June 30, 2024. The data show that Chow Tai Fook’s overall retail value for the period April to June of this year decreased by 20.0 percent year-on-year, with retail value in the mainland Chinese market down by 18.6 percent and the in the Hong Kong and Macau markets down by 28.8 percent.

In the first quarter of its 2025 fiscal year (April to June 2024), Chow Tai Fook opened 85 new jewelry stores and closed 176 stores in the mainland Chinese market, resulting in a net decrease of 91 stores. It had a net decrease of 89 stores in the mainland market in the previous quarter. This means that in the first half of this year, Chow Tai Fook has closed a total of 180 jewelry stores in mainland China.

Another Chinese jewelry giant, Luk Fook Holdings, announced on July 19 that the group’s overall retail value in the first quarter of its 2025 fiscal year dropped by 18 percent year-on-year, and that overall retail revenue has decreased by 23 percent year-on-year. Luk Fook Jewelry’s net store count decreased by 108 stores in mainland China.

Source: Epoch Times, July 24, 2024
https://www.epochtimes.com/gb/24/7/24/n14297931.htm

Briefings | | |   Economy/Resources

CCTV: Singapore Diplomat – The Era of Western Domination of the World Is Coming to An End

Recently, many Chinese news websites published a video clip said to be an excerpt of a speech delivered by Kishore Mahbubani at Harvard University. Mahbubani was a Singaporean diplomat and geopolitical consultant once serving as Singapore’s Permanent Representative to the United Nations. In the video, Mr. Mahbubani said:

“I can tell you this, as someone who travels to 30 or 40 countries a year, when I come to the United States and I go to my hotel room in Charles Hotel and turn on the television, I feel that I’ve been cut off from the rest of the world. And literally, the insularity of the American discourse is actually frightening. This is true of the New York Times, this is true of the Washington Post, (and) this is true of the Wall Street Journal. There is an incestuous self-referential discourse among these newspaper journalists and so on so forth. And they reference each other’s perspectives and end up misunderstanding the world.

Because you know the one key point I emphasize is that the era of Western domination of world history was a 200-year aberration. It’s coming to an end. And as a result of it you’ve got to learn to understand non-Western perspectives in the world. And it’s actually quite frightening that in many ways I find American intellectuals behind intellectuals including in Serbia where I just was or Greece or Istanbul. They are much more aware of what’s happening in the world than most American intellectuals are. I don’t know how to solve that problem.”

Source: CCTV, July 20, 2024
https://news.cctv.com/2024/07/20/ARTIIP93CxffUaK0xnqkwwi7240720.shtml

Briefings | | |   Government/Politics

China Facilitates Reconciliation of Fatah, Hamas, and Other Palestinian Factions in Beijing

At the invitation of China, senior representatives from 14 Palestinian factions held reconciliation talks in Beijing from July 21 to 23. They signed the “Beijing Declaration on Ending Division and Strengthening Palestinian National Unity.” Chinese Foreign Minister Wang Yi attended the closing ceremony. Foreign Ministry spokesperson Mao Ning stated that “The most significant consensus from the talks was achieving major reconciliation and unity among all 14 factions. The most core outcome was the reaffirmation that the Palestine Liberation Organization (PLO) is the sole legitimate representative of the Palestinian people.”

Wang Yi met Hamas political leader Ismail Haniyeh and Fatah Deputy Chairman Mahmud Alul on July 21 and July 23, respectively.

Commentaries pointed out that Beijing has once again intervened to save Hamas, allowing it to survive and to continue to play a significant role in the future Palestinian government, posing a long-term threat to Israel.

The U.S. State Department reiterated that the United States has designated Hamas as a terrorist organization and that it believes Hamas should not be involved in Gaza’s post-war governance.

Israel’s Foreign Minister Yisrael Katz made a post on the X platform saying “Hamas and Fatah signed an agreement in China for joint control of Gaza after the war. Instead of rejecting terrorism, Mahmoud Abbas embraces the murderers and rapists of Hamas, revealing his true face. In reality, this won’t happen because Hamas’s rule will be crushed, and Abbas will be watching Gaza from afar. Israel’s security will remain solely in Israel’s hands.”

Sources:
1. Xinhua, July 24, 2024
http://www.news.cn/mrdx/2024-07/24/c_1310782573.htm
2. Aboluo, July 24, 2024
https://www.aboluowang.com/2024/0724/2083006.html
3. X Platform, Yisrael Katz’s account @Israel_katz,
https://x.com/Israel_katz/status/1815670709378560503

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

Nippon Steel Exits Joint Venture with Baosteel, Signaling Shift in China Strategy

Nippon Steel Corporation, Japan’s largest steelmaker, announced on July 23rd that it would withdraw from its joint venture with Chinese steel giant Baosteel. The decision came as Japanese automakers struggle with sales in China due to the rising popularity of Chinese electric vehicles. Nippon Steel likely foresees difficulty in increasing its own sales volumes. After exiting the joint venture with Baosteel, Nippon Steel’s steel production capacity in China will decrease by 70%, with Nippon resources focused on the US and India going forward.

In 2004, Nippon Steel, Baosteel, and ArcelorMittal established a joint venture to manufacture and sell automotive steel sheets. The 20-year agreement expires in late August of this year, prompting Nippon Steel’s decision to dissolve the partnership.

Nippon Steel’s current annual steel production capacity in China is about 3.6 million tons, with the joint venture with Baosteel accounting for 70% of that figure. Nippon stated that its initial goal of supporting Japanese automakers’ local production through steel supply has been achieved. Meanwhile, the competitive landscape has changed as Chinese steel companies have improved their technical capabilities.

Starting just after the 1978 Japan-China Peace and Friendship Treaty, Nippon Steel has been a contributor to the modernization of China’s steel industry, providing Japanese technology and expertise in China. At the Chinese government’s invitation, Nippon Steel supported the construction of Shanghai’s Baoshan Iron and Steel Plant.

Source: Kyodo News, July 23, 2024
https://china.kyodonews.net/news/2024/07/bde5daef8687.html

Briefings | | |   Geo-Strategic Trend

China’s Birth Rate Dilemma: Quanzhou’s Controversial Three-Child Policy Push

China’s population has experienced negative growth for two consecutive years, making “rescuing the birth rate” a top priority. A population policy document from Quanzhou, Fujian Province, called for its Chinese Communist Party (CCP) members and officials to have three children, raising public concerns about “undercover coercion to have children.” The Quanzhou Health Commission later explained that the document was still in the internal review stage and was mistakenly published due to staff oversight.

Since the implementation of China’s three-child policy in 2021, local measures to support the policy have garnered attention. The leaked document from Quanzhou outlined work arrangements for implementing the policy, including a call for CCP members, government agencies, state-owned enterprises, and public institutions to take the lead in having three children.

The approach echoes a directive given in 1980, when the Communist Party urged members to have only one child, marking the beginning of China’s one-child policy era. The Quanzhou Health Commission clarified that the document was still in draft form and not yet officially released.

Quanzhou, an economically prominent city in Fujian Province, has seen significant growth, with its public budget revenue exceeding 100 billion yuan in 2023.

As China faces population decline, boosting birth rates has become a government priority. The National Healthcare Security Administration reported that four provinces and cities have included assisted reproductive technology in medical insurance coverage since 2023.

Source: Central News Agency (Taiwan), July 21, 2024
https://www.cna.com.tw/news/acn/202407210065.aspx

Briefings | | |   Economy/Resources