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China’s Reaction to Trump’s Election Win

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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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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

Briefings | | |   Geo-Strategic Trend

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

Briefings | | |   US-China Relations

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

Briefings | | |   Economy/Resources

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

Briefings | | |   Government/Politics

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

Briefings | | |   US-China Relations

China Is Developing Supersonic Plane: Reach Anywhere on Earth in One Hour

According to a study by scientists involved in Chinese missions to Mars and the Moon, China is developing a supersonic aircraft which is larger than the Boeing 737.

The aircraft is 45 meters long, nearly a third longer than the Boeing 737-700, with two aspirated engines on top of the fuselage. The design has a pair of delta wings similar to those of the Concorde, but with the wingtips pointing upward. Such a complex design poses multiple aerodynamic challenges when the aircraft enters hypersonic speeds or exceeds five times the speed of sound. Researchers are using a new aerodynamic model to evaluate the aircraft’s performance at high altitudes and has proven effective on China’s latest space missions.

Liu Rui from the Beijing Institute of Technology and collaborators from the Institute of Aerospace Systems Engineering (宇航系统工程研究所) published a paper in the journal Physics of Gases. Liu was a key scientist on the Mars landing and lunar rock sampling missions. According to official media reports both of these required the spacecraft to fly through the atmosphere at hypervelocity.

Source: Sputnik News, July 14, 2021
https://sputniknews.cn/military/202107141034072408/

Briefings | | |   Defense/Military

Hong Kong Book Fair Zeroed Out Political Books

The Hong Kong Book Fair was suspended in 2020 due to the COVID-19 epidemic, and resumed this year as control of the epidemic has improved. However, this was the first Hong Kong Book Fair after the implementation of the “Hong Kong National Security Law.”

Jimmy Pang, the president of publisher Subculture, told Radio Television Hong Kong (RTHK) that in view of the implementation of the “Hong Kong National Security Law,” some participating booksellers had already met and reached a consensus and decided not to place and sell books that may violate the “Hong Kong National Security Law” in order to avoid “getting into trouble.”

Pang pointed out that because of the ambiguity of the “Hong Kong National Security Law,” many participating booksellers are worried. Not only political books, but some sensitive books, and even books that comment on current affairs, will not be exhibited at this year’s Hong Kong Book Fair. Pang described this year’s Hong Kong Book Fair by saying that “political books have been zeroed out.”

Tao Peikang, publishing manager of another book exhibitor, CUP Media, believes that self-censorship by exhibitors is inevitable under the pressure of “Hong Kong’s National Security Law” because, “We don’t know what content is illegal.”

Since July 2020, the Hong Kong SAR government’s Leisure and Cultural Services Department has removed dozens of books from public libraries on the grounds of (conflict with) the “Hong Kong National Security Law.”

Source: Central News Agency, July 13, 2021
https://www.cna.com.tw/news/acn/202107130353.aspx

Briefings | | |   Government/Politics

China’s Official Vessels Enter Senkaku Islands Waters after Japan’s Defense Whitepaper Highlights Taiwan

Japan’s annual defense whitepaper, released on Tuesday July 13, has for the first time explicitly cited the importance of Taiwan’s stability. Japan’s Defense Ministry said in its white paper,“The stability of the situation around Taiwan is important, not only for the security of our country, but for the stability of the international community,”  “Our country must pay close attention to this, with an even greater sense of vigilance.”

The Japanese news agency Kyodo reported that Japan’s 11th Regional Coast Guard Headquarters discovered that four vessels from the Chinese Maritime Police Bureau entered the “territorial waters of Japan” around the Senkaku Islands (also called the Diaoyutai Islands) at around 10:20 a.m. on July 14, and then began to enter the contiguous zone off the “territorial waters” around 11:55 a.m. According to the report, this is the second time after July 12 that Chinese official ships entered the “territorial waters of Japan” around the Senkaku Islands. It is also the 30th day this year. One of the ships is equipped with a machine gun like device. The Japanese Coast Guard patrol ship warned the Chinese official ship to leave the “territorial waters.”

Taiwan has welcomed Japan’s unusually strong position, but Chinese Foreign Affairs Ministry spokesman Zhao Lijian described the whitepaper’s wording as “extremely wrong and irresponsible.”

Source: Central News Agency, July 14, 2021
https://www.cna.com.tw/news/acn/202107140283.aspx

Briefings | | |   Geo-Strategic Trend