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Leadership: Central Security Bureau’s Leadership Change

Recently, Xi Jinping appointed Zhou Hongxu (周洪许) as the Director of the Central Security Bureau (中央警卫局). Coming from the position of Deputy Chief of Staff of the Northern Theater Army, Zhou is the first Central Security Bureau’s head appointed from outside instead of being promoted from within.

Cheng Xiaonong, an expert on China issues, wrote a lengthy article to explain the importance of the Central Security Bureau to the Chinese Communist Party’s (CCP’s) top leader and how appointment of the bureau’s director works.

The Central Security Bureau is best known for its role in the political coup in 1976 after Mao Zedong died. At that time, Marshall Ye Jianying, Prime Minister Hua Guofeng, and Security Chief Wang Dongxing joined forces and ordered the guards of the Central Security Bureau to arrest the “Gang of Four,” including Mao’s wife Jiang Qing. This coupe ended the disastrous Cultural Revolution in China, and thus was praised as a heroic action.

Cheng explained the inside operation of the CCP system. There is only one ultimate TOP LEADER of the CCP system, who may or may not hold the highest official title. For example, then paramount leader Deng Xiaoping let his subordinates Hu Yaobang and Zhao Ziyang hold the highest CCP’s position – General Secretary of the CCP.

The TOP LEADER secures his power via effectively monitoring/controlling other officials.

He uses three key units of the CCP General Office (中央办公厅) to carry out the control: the Confidential Bureau (机要局), the Health Services Bureau (保健局), and the Central Security Bureau (警卫局).

The Confidential Bureau serves confidential documents and manages the confidential phone systems. Ministers and officials above the ministerial level, have a four-digit-number confidential phone, which is called the “red phone” due to its red case. There is also a “39” phone system, since those phones have their numbers start with “39” and then five digits afterward. The “39” phones are installed at Zhongnanhai, the Great Hall of the People, the Diaoyutai Hotel, and the Yuquanshan Guest House. The Confidential Bureau monitors both the red phones and the 39 phones.

The Health Service Bureau provides personal health care to the few top CCP officials, including health checkups, daily medication, and treatment plans in case of illness. This bureau directly reports to the TOP LEADER and many times only the TOP LEADER knows the real health problem of the other officials. For example, Mao Zedong knew that his Prime Minister Zhou Enlai had cancer but didn’t tell Zhou; Mao also decided not to conduct a cancer treatment operation for Zhou.

The Central Security Bureau is responsible for the safety of the TOP LEADER. The unit also assigns personal security guards to other high-ranking officials.

Though staff members from these three units are assigned to serve individual officials, they report back to their own bureau, so their true loyalty stays within the bureau but not with the official they are serving. They are the eyes and ears of the TOP LEADER to monitor other officials’ actions.

Therefore, the head of the Central Security Bureau is very important to the TOP LEADER. When a new top leader takes power from the incumbent, he will naturally want to replace the director, but he may wait for a few years before doing it. One reason is that if he does it immediately, it shows he does not trust the incumbent leader and creates tension. The other reason is that he may need time to find someone that he can truly trust.

From 1978 to 1994, Deng Xiaoping used Yang Dezhong (杨德) as the Director of the Central Security Bureau. Deng also took the three key units out of the CCP General Office and put them under the Central Military Commission, which he directly controlled. There are three top leadership titles in China, Deng had the title of Chairman of Central Military Commission and gave the other two, CCP General Secretary and President of China, to others.

Jiang Zemin inherited all the powers after Deng passed away. Jiang held all three big titles and moved the three units back under the CCP General Office. From 1994 to 2007Jiang installed his loyalist You Xigui (由喜) as the head of Central Security Bureau.

The next leader, Hu Jintao, took the top office in 2002, though Jiang still had the real power. It took Hu five years, that is, not until 2007, was he able to replace Jiang’s man You Xigui by his own person Cao Qing (曹清).

When Xi Jinping took over in 2012, Xi kept Cao to show his respect and trust to Hu. After more than two years, Xi was ready to replace Cao. He disclosed the information to the New York Times and the BBC that the Central Security Bureau used his “air force one” to smuggle ivory from Africa, and then used that excuse to move Cao out. Xi promoted Wang Shaojun (王少军) to the Director position from 2015 to 2019.

In 2018, Xi appointed Chen Denglv (陈登铝) as the Deputy Director and Political Commissar of the Central Security Bureau. Chen was an outsider appointee, coming from the position of the Political Commissar of the 91st Division of the 31st Group Army in Zhangzhou, Fujian Province. Xi worked in Fujian from 1985 to 2002 and the 31st Group Army is considered Xi’s loyalist army. Chen ran the Central Security Bureau from his Deputy Director position after Director Wang left. The director position was vacant from 2019 until the recent  appointment of Zhou Hongxu.

Xi’s appointing outsiders as both the Director and Deputy Director of the Central Security Bureau had two risks: One, the bureau’s internal officials might see little hope for promotion. Two, the bureau’s current staff might worry whether Xi would get more outsiders to replace them. These do not help Xi to control the Central Security Bureau so that he can monitor other officials.

Despite these risks, Xi still chose outsiders rather than an internal promotion. This indicates that the officials of the Central Security Bureau might have been involved in CCP in-fighting, that CCP in-fighting is active, and that Xi is worried about the Central Security Bureau’s loyalty to him.

Source:  Epoch Times, July 17, 2021
https://www.epochtimes.com/gb/21/7/17/n13095911.htm

LTN: Washington Pressured Netherlands to Ban Selling Lithography Systems to China

Major Taiwanese news network Liberty Times Network (LTN) recently reported that the U.S. Biden administration is putting pressure on the Netherlands not to sell lithography systems to Chinese semiconductor companies. The Netherlands’ ASML is the world’s top lithography systems manufacturer primarily for machines to produce computer chips. Even though China urged ASML to sell its EUV lithography system, the Dutch government still retained the export license of ASML EUV. So far, not even one has fallen into the hands of the Chinese Communist Party, even though ASML’s CEO Peter Wennink said that export restrictions may backfire. Less than a month after Biden took office, his national security advisor Jacob Sullivan and his Dutch counterparts discussed the “close cooperation” between the two countries on advanced technologies. Sullivan’s top priority is to continue to restrict ASML’s business with China. The Chinese communists hoped to provide domestic chipmakers with US$150 million EUV lithography systems so that Huawei and other Chinese semiconductor companies can reduce their dependence on foreign suppliers.

Source: LTN, July 17, 2021
https://ec.ltn.com.tw/article/breakingnews/3607159

The U.S. military Rarely Dispatched 25 F-22s to Western Pacific

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the Hawaii-based U.S. Pacific Air Force Command said that it will deploy approximately 25 F-22 Raptor fighter jets to Guam and Tinian to participate in an exercise named Pacific Iron 2021. Ken Wilsbach, commander of the U.S. Pacific Air Force said the U.S. has never deployed so many Raptor fighters in the Pacific Air Force combat area. The F-22 is a fifth-generation fighter with stealth combat capabilities and is one of the most advanced fighters in the world. Dispatching over 20 F-22 fighters is an unusually large-scale deployment. Analysts expressed the belief that this is a “strong deterrent signal” sent by the United States to its “potential adversary” China. A typical F-22 deployment includes six to twelve fighters. The U.S. Pacific Air Force is demonstrating that they can deploy the same or more fifth-generation fighters than are in China’s entire current inventory in a short period of time. The Chinese Air Force now has about 20 to 24 fifth-generation fighters in service. Today, the U.S. military has around 180 F-22s.

Source: Sina, July 17, 2021
https://news.sina.com.cn/c/2021-07-17/doc-ikqcfnca7442564.shtml

RFA Chinese: Canada Requires Universities to Pass National Security Assessments

Radio Free Asia Chinese Edition recently reported that the Canadian government announced that university researchers must pass a national security risk assessment when applying for government funding. This is to prevent intellectual property resources from falling into the hands of foreign governments or their agents. The Canadian Security Intelligence Service (CSIS) has previously warned on many occasions that organizations or persons with ties to China and Russia are trying to steal intelligence from Canada. An Australian report pointed out that, under the Chinese People’s Liberation Army, Canada has become the third most popular destination for scientists. Ottawa’s new policy is a good start. Unfortunately, the effect may be limited because, if these university researchers fail to get funding from Ottawa, they can still get it from other sources like Chinese institutions or companies, such as Huawei. Human Rights Watch, an international organization, pointed out that some university researchers deliberately failed to look into the source of funding or partners. The Canadian Minister of Innovation, Science and Industry, Francois-Philippe Champagne said that Ottawa’s new policy aims to protect intellectual property rights, and he is not worried that China may be unhappy with the required security reviews.

Source: RFA Chinese, July 13, 2021
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/lf-07132021135355.html

China Hit Back after U.S. Announced Sanctions against Hong Kong Officials

The U.S. government issued a Hong Kong Business Warning for the first time, reminding U.S. companies to be alert to the risks caused by the implementation of the Hong Kong National Security Act. Washington also announced sanctions against seven deputy directors of the Hong Kong Central Liaison Office. Beijing and Hong Kong then quickly hit back.

On July 16, the .US. Departments of State, Treasury, Commerce, and Homeland Security jointly issued a Hong Kong business advisory, “Risks and Considerations for Businesses Operating in Hong Kong.” It warned the U.S. companies operating in Hong Kong that they are subject to the laws of Hong Kong, including the National Security Law. So far, some foreign nationals have been arrested, including one U.S. citizen.

The advisory reminded companies that those operating in Hong Kong could “face the risks associated with electronic surveillance without warrants and the surrender of data to the authorities.” It stated that, “individuals and entities should be aware of the potential consequences of certain types of engagement with sanctioned individuals or entities” and warned them that, “Businesses operating in Hong Kong may face heightened risks and uncertainty related to retaliation from the PRC (People’s Republic of China) against companies that comply with sanctions imposed by the United States and other countries, including through enforcement of the Countering Foreign Sanctions Law.”

At the same time, the U.S. Treasury Department announced sanctions against the seven deputy directors of the Liaison Office in Hong Kong and added them to the Treasury’s “Specially Designated Nationals and Blocked Persons List.” Earlier, the U.S. had announced sanctions against 11 Chinese and Hong Kong officials, including Hong Kong Chief Executive Carrie Lam and Liaison Office Director Luo Huining, for damaging Hong Kong’s autonomy. The assets of those on the sanctions list have been frozen.

In the statement that Secretary of State Blinken issued, he stated, “I am committed to continuing to work with Congress and our allies and partners around the world to stand with the people in Hong Kong against [China’s] egregious policies and actions.  …  We will continue to call on the PRC to abide by its international obligations and commitments; to cease its dismantling of Hong Kong’s democratic institutions, autonomy, and rule of law; to release immediately and drop all charges against individuals unjustly detained in Hong Kong; and to respect the human rights of all individuals in Hong Kong.”

The Liaison Office of the Central Committee of Hong Kong countered with a statement calling the U.S. sanctions a piece of wastepaper and an attempt to disrupt Hong Kong’s economic growth after its political failure. The statement also emphasized: “The sanctions imposed by the United States on our officials have no meaning other than making us despise those politicians and encourage us to fight for our national interests.”

The Chinese Ministry of Foreign Affairs Office in Hong Kong and the Hong Kong Special Administrative Regional Government also issued statements calling the sanctions bully’ behavior which violates international laws and interferes with China’s domestic affairs. Chinese official media followed suit and published a series of anti-U.S. commentaries.

Source: Deutsche Welle, July 17, 2021
https://www.dw.com/zh/美国制裁中联办官员-中方废纸一张/a-58297941

Tight on Cash? Local Municipalities Ordered Civil Servants and Teachers to Return Bonuses They Received

In May of last year, Chinese Premier Li Keqiang stated in the government work report that governments at all levels must maintain a tight budget and the central government must take the lead to cut back 50 percent of non-essential expenses. Even though there is no further indication that the central government is taking any action, ordinary civil servants and teachers have been the first to take the hit.

Recently civil servants and school teachers in Henan, Jiangxi, and Guangdong provinces have received orders to give the performance bonuses they received back to the government. On July 7, the Water Authority of Nanchang City, Jiangxi Province issued a document stating that, according to relevant regulations, bonuses issued after June 7, 2021, must be returned within ten days. On the same day, the Dexing City Government required all teachers to return the merit bonuses they recently received. Teachers in Dexing City received 20,000 yuan (US$3,092) in the first quarter of this year. They expect to receive 80,000 yuan (US$12,367) in total bonuses this year plus a year-end bonus. These bonuses are usually higher than their annual salary.

Postings on Weibo showed that civil servants in Shanghai, Jiangxi, Henan, Shandong, Chongqing, Hubei and Guangdong provinces have also had their future bonuses suspended and they must return previously issued bonuses. On July 3, Chaozhou City, Guangdong Province, issued a notice that their housing subsidies and merit-based bonuses will be suspended. Three days later, Shanwei City followed suit. Meanwhile Shenzhen City is compiling reports on the income its employees received in recent years. For the first quarter this year, Shanghai also stopped giving out bonuses .

At present, most local level civil servants, and elementary and other school teachers make monthly salaries ranging from 2,000 to 4,000 yuan (US$309-618). Most of their childcare and mortgage expenses are paid from these various subsidies and performance bonuses. Many of them will have a hard time making their ends meet. Jiujiang Bank in Jiangxi Province even launched a bank loan to provide people who are not able to pay back the bonus they received.

In the first half of last year, China’s fiscal deficit went up by 30 percent and local municipal debt grew by 34 trillion yuan (US$5 trillion). Official reports showed that 30 out of the 31 provinces and cities in the country have a fiscal deficit. Shanghai is the only city with a fiscal surplus. Provinces such as Henan, Sichuan and Yunnan have deficits of more than 250 billion yuan (US$39 billion).

Source: Radio Free Asia, July 12, 2021
https://www.rfa.org/mandarin/yataibaodao/ql1-07122021052348.html

Research Centers for Xi Jinping’s Diplomatic and Economic Thoughts

On May 5, less than a year after the Chinese Ministry of Foreign Affairs established the Research Center for Xi Jinping’s Diplomatic Thoughts in July of last year, the National Development and Reform Commission of China (NDRC), a macroeconomic management agency under the State Council, established the Research Center for Xi Jinping’s Economic Thoughts.

The research center was established with the approval of the Central Committee of the Chinese Communist Party. The state media reported   that “Xi Jinping’s Economic Thoughts” is an important component of “Xi Jinping’s Thoughts on Socialism with Chinese Characteristics for a New Era” and is “a fundamental guideline for economic work in the new era.”

In July of 2020, the Chinese Ministry of Foreign Affairs officially established the Research Center for Xi Jinping’s Diplomatic Thoughts. Foreign Minister Wang Yi praised Xi Jinping for his “great foresight and vision,” for “a series of new ideas and initiatives,” and for the formation of “Xi Jinping’s Diplomatic Thoughts.”

Source: Central News Agency, July 7, 2021
https://www.cna.com.tw/news/acn/202107070336.aspx

Xinhua: The U.S. Refused Student Visas for Over 500 Chinese Applicants in Science and Engineering

Xinhua reported on July 6 that the U.S. government rejected more than 500 Chinese science and engineering graduate students’ visa applications. It appears that the Biden administration intends to continue the erroneous policy of suppressing Chinese graduate students and scholars in science and engineering. The US embassy and consulates refused the visa applications on the grounds that they did not comply with “the US Immigration and Nationality Act, Article 212f, and Presidential Decree No. 10043.” All these students planned to study for a doctoral or master’s degree in the U.S. Most of them have a major in electronic engineering, computer science, machinery, chemistry, materials science, biomedicine and other science and engineering fields. Their universities include Harvard, Yale, UC Berkeley, MIT, Johns Hopkins, and others. Most of the applications were submitted after the Biden Administration came to power. According to statistics, approximately 3,000 to 5,000 Chinese graduate students and a large number of scholars in science and engineering will be affected. U.S. President Trump signed Presidential Decree No. 10043 on May 29, 2020.

Source: Xinhua, July 6, 2021
http://www.xinhuanet.com/world/2021-07/06/c_1211229231.htm