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PLA Struggles with Redundant Grassroots Officers

A People’s Daily article revealed that the People’s Liberation Army (PLA) is overloaded with “grassroots officers” (i.e. low-level officers).

The article described the story of Liu Ziyao, a Platoon Leader at a certain Air Force unit. After graduating from a military academy, Liu started as a platoon leader and led his platoon to win a collective third-class merit. Four years ago, Liu met the requirements for promotion, but all positions at the next level – Deputy Company Commander – were fully staffed. Thus, Liu had to stay at the level of platoon leader. Soon, a new platoon leader was assigned to his platoon; the platoon now has has two platoon leaders managing the twenty-some members. This led to internal friction [within the platoon].

Some long-time platoon leaders eventually lose their sense of initiative and enthusiasm for their work, the article said.

Last year, the Chinese Air Force implemented measures to develop its “grassroots officers.” The most important adjustment was the recommendation of outstanding platoon leaders for internships related to other positions such as Company Political Instructor (指导员) or Battalion Staff Officer (营参谋). Liu Ziyao has become an “intern Political Instructor” for a company was able to gain experience in that position.

Another “grassroots” platoon leader interned as a battalion staff officer, then later interned at a staff position in the headquarters, and eventually becoming a full-fledged staff officer.

Source: People’s Daily, July 26, 2024
http://military.people.com.cn/n1/2024/0726/c1011-40286059.html

Nikkei Chinese: Honda Scales Back in China

Nikkei Chinese Edition recently reported that Honda plans to cut 30 percent of gasoline vehicle production capacity in China, the world’s largest auto market. The company will reduce capacity by about 500,000 vehicles, equivalent to 10 percent of Honda’s global production, through plant closures and other measures.

In China, there is currently an excess supply capacity as production capacity by domestic automobile companies has expanded faster than demand. Moreover, there has been a large flow of very low-priced Chinese into the Southeast Asian market, where Japan has an advantage; sales competition has become increasingly fierce.

Honda had been increasing its investment in China since the 1990s. China thus became Honda’s its largest production base worldwide. Now, Japanese automakers have reached a turning point in their confrontation with China over dumping of low-priced cars, and Honda is reducing its scale in China for the first time.

According to Nikkei, all Japanese automakers and suppliers have followed the trend of “adjusting” their businesses in China. Nissan closed its gasoline vehicle plant in Jiangsu Province in June, reducing annual production capacity in China by 10 percent, with further closures of factories under consideration. Hino Motors is exiting its engine production business in China. Meanwhile, Nippon Steel is also planning a significant reduction in its production capacity within China.

Source: Nikkei Chinese, July 25, 2024
https://cn.nikkei.com/industry/icar/56235-2024-07-25-09-31-44.html

Vietnam Proposes South China Sea Continental Shelf Delimitation to UN

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, according to the Ministry of Foreign Affairs of Vietnam, Vietnam has submitted a proposal to the United Nations Commission regarding delimitation of territory within the South China Sea, proposing use of suboceanic continental shelf limits as the delimitation.

The Chinese Ministry of Foreign Affairs Spokesperson said in a press conference that “Vietnam submitted the proposal to the UN Commission unilaterally,” and “its relevant claims cover parts of China’s Nansha Islands and infringe on China’s territorial sovereignty and maritime rights and interests. China firmly opposes this move and has lodged stern representations with Vietnam. According to the rules of the UN Commission on Limits of Continental Shelf, if there is a dispute, then no consideration will be given. So the UN Commission will not review or determine the cases filed by Vietnam. Such actions are in fact meaningless and will only intensify conflicts.”

In the meantime, Vietnam also submitted a note of objection to the United Nations in response to the Philippines’ submission on the outer continental shelf delimitation of the South China Sea. China has also opposed the Philippines’ proposal.

Source: Sina, July 18, 2024
https://finance.sina.com.cn/jjxw/2024-07-18/doc-incepxfy8687524.shtml

Lianhe Zaobao: Malaysia and Thailand Apply to Join BRICS

Singapore’s primary Chinese language newspaper Lianhe Zaobao reported that Malaysia and Thailand have recently expressed interest in joining the BRICS group of nations, led by Russia and China.

Last month, the Malaysian government stated that it would start the application process to join BRICS. Since the other BRICS members are very different from Malaysia, the Malaysian government’s decision to apply to join BRICS has led to heated debate among Malaysia’s political parties, with some questioning whether joining the BRICS would bring meaningful benefits to the country. Malaysia’s Prime Minister later stated to Congress that the primary benefit of joining BRICS would be expansion of Malaysia’s economic and trade network.

Thailand formally submitted its application to join BRICS last month. It is worth noting that Thailand is also in the process of applying to join the Organization for Economic Cooperation and Development (OECD) led by the United States and European countries.

In addition to Malaysia and Thailand, Indonesia and Vietnam are also considering joining BRICS.

BRICS is a cooperation mechanism established by Brazil, Russia, India and China in 2009. South Africa joined the group in April 2011. In January this year, the BRICS expanded to include Egypt, Iran, the United Arab Emirates and Ethiopia. There are more than 40 other countries who also intend to join.

Source: Lianhe Zaobao, July 25, 2024
https://www.zaobao.com.sg/news/sea/story20240725-4360331

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

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

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

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