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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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Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

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The CCP’s Performing Arts Troupes in the U.S.

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Xi Jinping Warned CCP Members Not to Touch the “High Voltage Line”

CCTV published an article titled “The General Secretary Warns Party Cadres Not to Touch This ‘High Voltage Line’.” It quotes Xi Jinping from 2015 to 2024 to warn the Chinese Communist Party cadres to be loyal. On January 1, 2024, the newly revised ” Regulations on Disciplinary Actions of the CCP Members” came into effect, outlining 37 “high voltage lines” across seven aspects for the Party organizations and members. On January 8, Xi stated the “Nine Musts,” which are also considered the “high voltage lines.” Observers have analyzed that the first three “musts,” which are to adhere to the centralized and unified leadership of the Party Central Committee, to lead the great social revolution, and to follow the ideology of socialism with Chinese characteristics of the new era, refer to absolutely safeguard Xi’s leadership and absolutely be loyalty to him.

Echoing the CCTV article, the South China Morning Post reported on June 16th that the Central Committee on Disciplinary Inspection issued a special report on June 12th, warning, “Do not openly speak ill of the Party on major issues,” and that “publicly expressing opinions that contradict the decisions of the Central Committee is absolutely not allowed.” The report also warned that “irresponsible discussions” of the Party’s major policies, “disrupting thoughts,” publicly criticizing party unity, and obstructing policy implementation will be “severely dealt with.”

Radio France International commented that these articles showed the politicla atmosphere in China is tense as the CCP’s Third Plenary Session of the 20th National Congress approaches.

Source:
1. Radio France International, June 17, 2024
https://www.rfi.fr/cn/中国/20240617-勿碰高压线-习近平在警告谁
2. CCTV, June 17, 2024
https://news.cctv.com/2024/06/17/ARTICfAGfDCWB1wWgoN7oCyI240422.shtml

Briefings | | |   @CS Government/Politics

Guangming Daily: The Impact of Artificial Intelligence on Security Governance

Guangming Daily published an article on Artificial intelligence (AI)’s impact on governance over national culture and security. It stated that AI exhibits a series of prominent characteristics, such as deep learning, cross-domain integration, human-machine collaboration, open collective intelligence, and autonomous control. These features are having a profound impact on national cultural security and governance systems.

The data-driven intelligent analysis capability makes AI an effective tool for in-depth analysis and mining of massive amounts of data, providing extensive data support for security governance. The latest generation of AI technology, by integrating diverse types of information and relying on big data models and powerful computing capabilities, can process and analyze data in real-time and quickly produce and publish results. This efficient and timely information processing greatly facilitates the convenience of cultural dissemination and the timeliness of security governance.

AI can also be used for real-time monitoring and risk identification of cultural security, effectively enhancing the foresight and precision of governance. By deploying advanced algorithms and machine learning models, AI systems can continuously collect information from the internet, social media, and other data sources, analyzing the trends and patterns of cultural dissemination. Statistics show that by the end of 2023, AI systems in China were able to monitor and analyze about 100,000 pieces of sensitive information related to cultural security every day, with approximately 80% of the information being processed in a timely manner.

Source: Guangming Daily, June 23, 2024
https://theory.gmw.cn/2024-06/23/content_37394566.htm

Briefings | | |   Government/Politics Information/Technology

China Held a Propaganda Campaign over International Media Reporters on Xinjiang

To shape the views of some international media reporters, Beijing organized a themed interview group, “Exploring the Core Area of the Silk Road Economic Belt,” to visit Xinjiang for interviews and filming. Nearly 20 media professionals from different countries participated, most of them visiting Xinjiang for the first time. During the nine-day trip, the group will visit cities such as Yining, Urumqi, and Kuqa to gain an in-depth understanding of Xinjiang’s “real situation in terms of high-quality development, ecological protection, cultural heritage, and opening up to the outside world.” Canadian journalist Aiden Jonah said, “My initial impression of Xinjiang came from negative reports in Western media. But as I gradually learned more, many of the accusations and lies in those reports fell apart. I always keep an open mind about Xinjiang and believe in seeing things with my own eyes.”

Source: China News Agency, June 20, 2024
https://www.xj.chinanews.com.cn/xinjiang/2024-06-20/detail-ihecnkzk2010641.shtml

Briefings | | |   Government/Politics

TCL’s Trade Route Shift: Adapting to US Tariffs

TCL Chairman Li Dongsheng addressed the impact of US tariffs on Chinese products at the Summer Davos Forum in Dalian, China. He revealed that TCL has adapted its trade route to maintain sales in the US market, its largest export destination.

Previously, TCL purchased components from the US, manufactured in China, and exported back to the US. However, due to increased tariffs, TCL now buys chips and materials from the US, processes core components like displays in China, then ships semi-finished products to Vietnam, Mexico, and Indonesia for final assembly before exporting to the US.

This new multilateral trade route has maintained TCL’s US sales but has extended the process and increased costs, potentially contributing to US inflation issues.

Li emphasized the importance of balancing interests in economic globalization. He suggested Chinese companies should not only sell products overseas but also invest, create jobs, increase local tax revenue, support local supply chains, and cultivate local suppliers.

Li proposed that Chinese firms should shift from “exporting products” to “exporting industrial capacity,” enhancing awareness and responsibility for promoting local economic development.

Source: Central News Agency (Taiwan), June 25, 2024
https://www.cna.com.tw/news/acn/202406250380.aspx

Briefings | | |   US-China Relations

China-EU ‘Dragon Programme’ Enters New Phase: 20 Years of Earth Observation Cooperation

The 5th Dragon Programme summary seminar and 6th Programme (2024-2028) launch meeting, a scientific cooperation initiative between China’s Ministry of Science and Technology and the European Space Agency (ESA), opened in Lisbon, Portugal on June 24th.

Initiated in 2004, the Dragon Programme is a large-scale Earth observation research cooperation. From 2024, the China Science and Technology Exchange Center will manage the Chinese side of the project.

Both parties signed the 6th Dragon Programme cooperation agreement, covering 10 key areas including land, atmosphere, climate change, and big data. They will promote Earth observation data sharing and application development through collaborative research, academic exchanges, and talent training.

Chinese Ambassador to Portugal Zhao Bentang called the programme a model of China-EU scientific cooperation. Dai Gang from China’s Ministry of Science and Technology highlighted the programme’s achievements in fostering a stable joint research team and providing technological support for global challenges like climate change.

Gao Xiang, Director of China Science and Technology Exchange Center, noted the programme’s expansion in research fields, shared data sources, and participating scientists over its 20-year history.

ESA Director General Josef Aschbacher described the Dragon Programme as one of the longest-standing and most successful projects in EU-China cooperation, promoting in-depth exchange between scientists and advancing technological applications.

The five-day meeting will focus on Earth observation technology developments and satellite remote sensing applications in environmental protection and disaster prevention. Nearly 300 experts from China and Europe are attending.

Source: People’s Daily, June 26, 2024
http://paper.people.com.cn/rmrb/html/2024-06/26/nw.D110000renmrb_20240626_6-13.htm

Briefings | | |   Geo-Strategic Trend

China’s Venture Capital Crunch: Funding Decline Spurs Overseas Shift

China’s venture capital market is experiencing a sharp decline in investment funding. This downturn is attributed to global trends, such as rising U.S. interest rates, as well as specific factors like U.S.-China economic decoupling and a sluggish real estate market. As a result, some investors and entrepreneurs are shifting their focus to overseas markets like Japan.

The Hong Kong Stock Exchange recently celebrated a rare high-profile IPO by XtalPi, an AI-driven drug discovery company. However, despite efforts to attract innovative companies, Hong Kong’s IPO market is struggling, with predictions of falling to 10th place globally in the first half of 2024.

Venture capital investment in China dropped 66% in 2023 compared to its peak in 2021, with foreign investments declining by nearly 90%. This reflects the impact of U.S.-China tensions and increased U.S. scrutiny of investments in sensitive technologies.

Chinese startups are facing difficulties securing funding, with local government and private equity investments becoming scarce. Many are turning to tech giants like Tencent and Alibaba or seeking opportunities abroad.

The current situation is pushing both startups and investors to explore international markets. Japan, in particular, is attracting interest from Chinese entrepreneurs and tech talent. While China’s venture capital industry is not considered to be in decline due to its strong talent base and government support in strategic sectors, the ongoing shift towards overseas markets could reshape the future landscape of the industry.

Source: Nikkei Chinese, June 21, 2024
https://zh.cn.nikkei.com/columnviewpoint/column/55913-2024-06-21-05-00-06.html

Briefings | | |   Economy/Resources

Lianhe Zaobao: China’s Actual Use of Foreign Capital in the First Five Months Declined

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that China’s actual use of foreign capital fell 28.2 percent year-over-year in the first five months of this year, showing that the Chinese government still faces challenges in attracting overseas investment to boost the economy. Data just released by China’s Ministry of Commerce shows that, the actual use of foreign capital in the first four months fell by 27.9 percent year-over-year, and the decline in May further widened. The downward trend in China’s actual use of foreign capital began in June last year, reflecting a decline of 12 consecutive months. China’s business environment is unstable and economic growth prospects are bleak, with overseas capital inflows experiencing a historic decline. The continued decline in foreign direct investment shows that China is no longer attractive to foreign investors. Although foreign investors have not completely withdrawn investment in China, the number has become smaller and smaller. When Chinese Premier Li Qiang held an executive meeting of the State Council on February 23, he said that stabilizing foreign investment should be an important focus of economic work this year.

Source: Lianhe Zaobao, June 22, 2024
https://www.zaobao.com.sg/realtime/china/story20240622-3960937

Briefings | | |   Economy/Resources Geo-Strategic Trend

UDN: China Sanctioned Lockheed Martin Again

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that, after the United States sold a batch of F-16 fighter jet components to Taiwan, the Chinese Ministry of Foreign Affairs announced that it would take countermeasures against three senior executives of Lockheed Martin and three of its units. China has previously countered arms sales to Taiwan and has repeatedly sanctioned the U.S. arms dealer and its affiliated organizations. The Ministry stated that the United States has recently announced the sale of arms to Taiwan again, seriously interferes in China’s internal affairs, and seriously damages China’s sovereignty and territorial integrity. In accordance with the relevant provisions of China’s “Anti-Foreign Sanctions Law”, it was decided to impose sanctions on Lockheed Martin Missile System Integration Lab, Lockheed Martin Advanced Technology Laboratories, and Lockheed Martin Ventures. Also sanctioned were Lockheed Martin Chairman and CEO, COO as well as CFO. The U.S. Defense Security Cooperation Agency recently announced arms sales to Taiwan, with a total price of US$300 million, including standard spare and repair parts for F-16 fighter jets and related equipment. The F-16 is one of Lockheed Martin’s best-selling products.

Source: UDN, June 21, 2024
https://udn.com/news/story/7331/8046686

Briefings | | |   US-China Relations