Skip to content

Military: Huanqiu Report: “PLA Warships Appeared Near the U.S. Coast”

Huanqiu reported that the U.S. Department of Defense revealed, on September 12, that China’s warships appeared near the U.S. coast. The U.S. posted a picture which showed that, on August 30, the U.S. Coast Guard patrol ship USCGC Bertholf was conducting “close surveillance” of Chinese naval vessels entering international waters in the U.S. exclusive economic zone near the Aleutian Islands. The Chinese vessels included a Type 055 destroyer, a Type 052D destroyer, and a replenishment ship.

Though Huanqiu quoted a Chinese military expert as stating that “this might be a routine ocean-going training exercise and that there is no offensive implication,” the hottest comments in this article by the Chinese netizens overwhelmingly suggested that they view it as an answer to the U.S. naval ships sailing in the South China Sea. While Beijing claims the waters there to be China’s waters, the international community does not.

Some of the comments were:

“China’s freedom of navigation has begun, and the U.S. needs to get used to it!”

“Right, we should knock on the U.S. door to see if the American Empire is home.”

“Do unto others as you would have them do unto you! You Yankees can sail freely, why can’t China sail freely? This is the best answer to you Yankees.”

“It is to provoke (confrontation). So what!”

“It’s just free sailing. Chinese warships are brave adolescents who like to wander around to any location in their own territory. So what if you don’t like it?”

Source: Huanqiu, September 14, 2021
https://world.huanqiu.com/article/44l3rQZKpOG

Leadership: Fantasia Holdings, a Business of Zeng Qinghong’s Niece, Is in Trouble

Zeng Baobao, the niece of Zeng Qinghong, owns Fantasia Holdings. Zeng Qinghong is a retired Chinese Communist Party (CCP) top official. He is former CCP head Jiang Zemin’s right-hand man, the Vice President of China, and a CCP Politburo Standing Committee member. He is still believed to have considerable political influence in China. Many media have reported him as heading a CCP faction that is against Xi Jinping.

Zeng Baobao established Fantasia Holdings in 1996. The company went IPO in Hong Kong in 2009. Its main business is real estate development.

Recently, Citibank and Credit Suisse gave a zero loan value to Fantasia’s notes, meaning that their private wealth management customers can no longer use Fantasia’s notes as collateral for loans. On September 14, S&P Global Ratings announced a negative outlook on the company and affirmed a “B” rating, as the company’s large foreign debt maturity will weigh on its financials.

Many real estate companies in China are facing cash flow problems. However, the fact that Fantasia Holdings is facing trouble may also carry a political message. It may mean that Zeng Qinghong is likely to be in bad shape. He is not able to save his family’s company.

Sources:
1. Liberty Times, September 7, 2021
https://ec.ltn.com.tw/article/breakingnews/3663843
2. Sina, September 15, 2021
https://finance.sina.com.cn/roll/2021-09-15/doc-iktzqtyt6156639.shtml

September 15, 2021, Pandemic Report: COVID Spreading in China

On September 10, Beijing announced that there were two COVID-19 cases in Fujian Province. From then until the end of September 13, that is within 4 days, Fujian Province reported a total of 139 cases. The Chinese Communist Party (CCP) is known for hiding the details about the actual spread of COVID in China, so the real number of infections is unknown.

The infection in Fujian Province started in Putian City and quickly spread to Quanzhou City and Xiamen City. Many children have been infected. Among the 85 positive cases in Putian City, 36 are students. The number includes 8 kindergarteners and 28 elementary school students.

Related postings on Chinascope:

Source: China News Service, September 15, 2021
http://www.fj.chinanews.com/news/fj_zxsj/2021/2021-09-15/490072.html

U.S.-China Relations: Huanqiu’s Editorial on the U.S.-Taiwan Connection

Huanqiu published an editorial regarding two developments in U.S.-Taiwan relations. The first was a report that the U.S. is considering Taiwan’s proposal to rename Taiwan’s representative office in Washington from the “Taipei Economic and Cultural Representative Office” to the “Taiwan Representative Office.” The second development was that senior U.S. officials had an in-person meeting with the Taiwan Foreign Minister in Annapolis, MD, which is a one hour drive away from Washington, DC.

Huanqiu’s editorial said,

“The U.S. side is well aware that this is not a trivial matter, and they are now in the stage of releasing information and testing the reaction of mainland China.

What is there to test? They want to push the matter to the tipping point of a showdown. Mainland China has no choice but to meet the challenge and prepare for a showdown with them.

If the U.S. changes the name of the Taiwan Representative Office, the mainland’s diplomatic response will not be lower than our response to Lithuania at all. It can fully expected that China will recall its Ambassador from the U.S.

Having only a diplomatic response is obviously not enough. If the U.S. and Taiwan rename Taiwan’s office, they have violated the red line of (China’s) Anti-Secession Law. Mainland China needs to take severe economic and military measures to combat the arrogance of the U.S. and Taiwan. The mainland should apply severe economic sanctions against Taiwan or even impose an economic blockade, depending on the situation.

Militarily, mainland warplanes should fly over the sky of the Taiwan island and include Taiwan’s airspace as part of the People’s Liberation Army’s (PLA’s) cruising patrol. This is a step that mainland China must take sooner or later, and the office renaming will provide a sufficient reason for the mainland to assert its sovereignty over Taiwan. We expect that the Taiwanese military will dare not stop the PLA warplanes from flying over Taiwan. If they dare to open fire, let us deliver a decisive and devastating blow to the ‘Taiwan independence’ forces without hesitation.

Actually, the Taiwan issue is a willpower contest. Since Beijing has declared that Taiwan is China’s core interest, we will act resolutely to guard this bottom line of our national interest and pay any price for it.

It seems that sooner or later, a big, earth-shaking storm will come to the Taiwan Strait. Even if the U.S. and Taiwan retreat their foot this time, their foot will cross the line the next time. Now we need to get ready to ‘break their legs’ in the Taiwan Strait at any time.”

Source: Huanqiu, September 12, 2021
https://opinion.huanqiu.com/article/44k3twGoFQh

Indian Scholar on China’s Promised Aid to Afghanistan

Not long ago, Chinese Foreign Minister Wang Yi announced that China has decided to provide Afghanistan 200 million yuan (US$31 million) worth of food, winter supplies, vaccines and medicine. China also promised, when security and other conditions are in place, to help build projects there to improve people’s livelihood and to support Afghanistan’s peaceful reconstruction and economic development.

Nandan Unnikrishnan, an Indian political scientist and honorary member of the Observer Research Foundation in New Delhi, India, said, “People just forget that in 1996 and 2001, respectively, China and the Taliban (a group banned in Russia) reached an agreement on the exploitation of mineral resources. So, this is not the first time for China.”

During the period of the Taliban’s rule from 1996 till 2001, China and the Taliban had some low level economic and technical cooperation. Some accounts suggest that after the US’ cruise missile attack on Afghani militant bases, Beijing reached out to the Taliban to offer Chinese support in the form of access to a missile computer guidance system. As the Taliban strengthened its hold over the country, Beijing signed a military pact in 1998 to train Afghan (and therefore Taliban) pilots. Then in 1999 they signed an economic cooperation agreement.

Source: Sputnik News, September 12, 2021
https://sputniknews.cn/politics/202109121034450249/
Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA), September 03, 2021
https://idsa.in/issuebrief/beijings-strategic-moments-taliban-jpanda-030921

Think Tank Report Points to Widened North-South Gap

On September 8, the Academy of National Development and Strategy at Renmin University of China (RUC), RUC’s School of Economics, and China Chengxin Credit Ratings, jointly issued a special report on China’s macro economy. The report states that the gap between economic development in the north and in the south of China continues to widen and has “reached a point that cannot be ignored.”

The report mentions three areas of imbalance: manufacturing, investment, and R&D and innovation.

The secondary (manufacturing) industry in the North has been stagnant over the past decade. The years between 2012 and 2020 saw zero nominal growth of that sector in northern China.

Although southern China’s consumption, investment and import and export growth are all higher than in Northern China, the main issue is investment. By 2017, investments in the North had plateaued. The gap in exports between the two regions is alarming. At present, 80 percent of the country’s exports come from the South, and the North accounts for only 20 percent.

The North also lags behind in R&D and innovation. A decade ago, the R&D funding, manpower and number of projects in the South was about twice as much as in the North. Now the gap has enlarged so it is about 3 or 4 times as much.

Over the past 10 years, southern China has registered a speedier industrial development. Twenty years ago, the number of large size industrial enterprises in the South was 1.56 times as much as the number in the northern region. Now the difference has widened to 2.65 times as much.

Source: Central News Agency, September 10, 2021
https://www.cna.com.tw/news/acn/202109100255.aspx

Xinhua: Wang Yi Attended the First Meeting of Foreign Ministers of Afghanistan’s Neighbors

Xinhua recently reported that, on September 8, Chinese State Councilor and Minister of Foreign Affairs Wang Yi attended the first meeting of Afghanistan’s neighboring foreign ministers. Wang said Afghanistan today stands at the crossroads of history. China, as a neighbor, should seize the critical time window of the transition and exert a positive influence on the changes in the situation. China agreed to institutionalize the Afghan Neighboring Foreign Ministers’ Meeting. The first meeting was chaired by the foreign minister of Pakistan. The foreign ministers or deputies of Iran, Tajikistan, Uzbekistan, and Turkmenistan also attended the meeting. Right before the meeting, Dai Bing, Chargé d’affaires of the Permanent Mission of China to the United Nations, said at the UN Security Council that the evolution of the Afghanistan issue shows that foreign military intervention will eventually end in failure. The hastily and disorderly withdrawal of a certain country’s troops from Afghanistan has caused Kabul to fall into chaos and turmoil, leading to a major humanitarian disaster.

Source: Xinhua, September 8, 2021
http://www.news.cn/mrdx/2021-09/09/c_1310177719.htm

State-owned Enterprises Ordered to Migrate to State-owned Cloud Services

China’s national data security law went into effect on September 1, 2021. Just days before it became effective, the China State Council’s State-owned Assets Supervision and Administration Commission (SASAC) for Tianjin issued a directive mandating state-owned enterprises in Tianjin to accelerate data migration from cloud services of tech companies like Alibaba and Tencent to the state-owned infrastructure. Currently, Alibaba, Huawei, and Tencent dominate the cloud computing market in China.

In a directive dated August 12, 2021, Tianjin’s SASAC directed state-owned enterprises in Tianjin not to build new data centers, or purchase servers and other storage hardware. State-owned enterprises cannot renew or sign new contracts with cloud platforms owned by Huawei, Alibaba, Tencent, China Unicom, China Mobile, and China Telecom. Data stored in these platforms must be migrated to cloud platforms controlled by SASAC within two months of the expiration of existing contracts, with the final deadline being at the end of September 2021.

Section 3(3)(1) on page 7 of the SASAC directive reads, “The data of state-owned enterprises are state assets and must be put under state-owned assets supervision and administration…”

Since early 2021, local SASACs have started local state-owned cloud platform projects. The essence of “state-owned cloud” is to shift from a cloud platform hosted by a third party to a state-owned cloud built and operated by local state-owned enterprises. In March 2021, Tianjin state-owned cloud started operation, with three state-owned enterprises, including Tianjin Communications Group and Tianjin State-owned Capital Investment and Operation Co., Ltd. In March, the SASAC of Zhejiang Province also initiated a project that included a state-owned cloud platform. In April, SASAC of Sichuan Province officially kicked off its state-owned cloud platform.

Sources:

Lianhe Zaobao, September 4, 2021
http://www.haozaobao.com/shiju/20210904/99713.html

State-owned Assets Supervision and Administration Commission of Tianjin, August 12, 2021
http://www.d1net.com/uploadfile/2021/0827/20210827062000825.pdf

Yicai, September 7, 2021
https://www.yicai.com/news/101166263.html