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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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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

China to Censor Karaoke Songs

China’s Ministry of Culture and Tourism recently issued a draft of the “interim regulations on the management of karaoke music content in entertainment venues,” and opened it for public comment. The purpose was “to strengthen the management of karaoke music content entertainment venues, to promote the core values of socialism, and to safeguard national cultural security and ideological security.”

The draft mentioned the phenomenon of prohibited songs offered in entertainment venues. The Ministry of Culture and Tourism established a national karaoke music content auditing expert group to establish a list of illegal songs.

According to the draft, there are nine categories of prohibitions, namely: violating the basic principles established by the Constitution; endangering national unity, sovereignty or territorial integrity; endangering national security or damaging national honor or interests; inciting ethnic hatred, ethnic discrimination, hurting national feelings or infringing on national customs and habits, and destroying national unity; violating national religious policies, propagating evil religions and superstitions; propagating obscenity, gambling, violence and drug-related illegal and criminal activities; the violation of social morality or national cultural traditions; and insulting or defaming others.

The draft emphasizes that entertainment venues should use karaoke music from legal sources. The content provider of the on-demand song system should conduct self-censorship of the content of the songs and screenshots before providing karaoke music to the entertainment venues.

Source: Central News Agency, July 10, 2021
https://www.cna.com.tw/news/acn/202107100121.aspx

Briefings | | |   Government/Politics

China Times: Two Major US Stock Indexes Remove Dozens of Chinese Companies

Major Taiwanese newspaper China Times recently reported that two major U.S. stock indexes, the S&P and the Dow Jones Indices and FTSE Russell, decided to remove dozens of Chinese companies from their indexes. This will take effect at the end of July and in early August, respectively. This is the latest move by the U.S. stock market in response to the Biden administration’s executive order against China, which prohibits domestic investments in companies suspected of being affiliated with the Chinese military. In the past decade, the US capital market has always been a source of funds for Chinese companies, especially in the technology sector. At the same time, in the past couple of weeks, China has cracked down on several Chinese companies that wanted to list in the U.S. stock markets. Also, some of the stocks removed earlier based on Trump’s order now can return under Biden’s new Presidential Decree.

Source: China Times, July 9, 2021
https://www.chinatimes.com/cn/realtimenews/20210709003053-260409?chdtv

Briefings | | |   US-China Relations

Beijing Cracks Down on Chinese Companies Seeking Foreign IPOs

On July 10, the China Cyber Space Administration published a draft version of a new data security law. It asked the public to provide feedback by July 25. The new law requires that Chinese companies seeking to list in foreign countries must first pass a cyber security review.

The statement stated that companies with a data base of over 1 million users must apply for cybersecurity approval before listing in other countries. The reason is that the data and personal information might be “influenced, controlled and abused by foreign governments.” The review includes an evaluation of the potential national security risks of the company’s overseas initial public offering (IPO).

According to data from Bloomberg News, 37 Chinese companies have been listed in the U.S. They raised a total of $12.9 billion this year.

As early as three months ago, Chinese authorities requested Didi Chuxing, the Uber of China, to postpone its IPO in the US. Despite inconsistent orders from various agencies, Didi Chuxing moved forward with its listing plan on June 30. On July 2, Beijing ordered a cyberspace security inspection on DidiChuxing and banned the new users from signing up. On July 9, 29 Didi Chuxing Apps were taken down online. All these measures are considered to be Beijing’s deliberate retaliation against companies that don’t follow its order. According to Didi Chuxing financial disclosure, in the first quarter of 2021, it had 156 million active users and an average daily transaction volume of 25 million in China while it had 493 million active annual users and 15 million active drivers annually worldwide.

On July 8, a number of companies withdrew their IPOs from the New York Stock Exchange including LinkDoc Technology, a medical data solutions and oncology big data service provider; Keep, a modile fitness company, and Meicai, a food delivery firm.

The new law could push more Chinese Internet companies to list in Hong Kong, rather than listing in other countries, in order to bypass such scrutiny.

Source:

1. Epoch Times, July 10, 2021
https://www.epochtimes.com/gb/21/7/10/n13080990.htm
2. Central Cyberspace Affairs, July 10, 2021
http://www.cac.gov.cn/2021-07/10/c_1627503724456684.htm

Briefings | | |   Economy/Resources

RFI Chinese: Chinese Company Acquiring UK’s Largest Semiconductor Manufacturer

Radio France Internationale (RFI) Chinese Edition recently reported that Nexperia (headquartered in the Netherlands), owned by Chinese company Wingtech, is in the process of acquiring Britain’s largest semiconductor manufacturer, Newport Wafer Fab (NWF). The move raised doubts about British national security. UK Prime Minister Johnson stated in the British Parliament last Wednesday that his national security adviser will look into the acquisition. The analysts expressed the belief that this obviously represents a reversal of the British government’s policy on this case. At the moment when the UK-China relationship is strained and the global chip shortage intensifies, the overseas investment situation of Chinese companies is increasingly under scrutiny. This acquisition case is particularly concerning. It is worth noting that, only one day before the Prime Minister made the comments in Parliament, his spokesperson told reporters that the government thought, “It would be inappropriate to intervene at this moment.” The Chinese government holds around a 30 percent stake in Wingtech.

Source: RFI Chinese, July 7, 2021
https://bit.ly/3k1bjbZ

Briefings | | |   Geo-Strategic Trend