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Global Chip Shortage Pressured the West to Reconstruct Supply Chain

Popular Chinese technology news site CNBeta recently reported that a global chip shortage has intensified since the end of last year and has heavily impacted most of the major automobile manufacturers across the board. The British market research firm IHS Markit expected that, for the first quarter of this year, around one million automobiles will suffer delivery delays due to a car chip shortage. Analysts expressed the belief that the imbalance of supply and demand that the pandemic brought about was the main cause of the semiconductor shortage. The stay-home orders created a large wave of chip demand on personal computers, cellphones, game stations and other consumer electronic products that shifted chip production from automobiles to home devices. The recent fire at the Japanese chipmaker Renesas and the extreme weather in Texas contributed to the chip shortage as well. This trend is pushing the U.S. government and the European Union to start investments in domestic semiconductor manufacturing capabilities. Intel just announced a US$20 billion investment in Arizona for a new factory. Even South Korea, as one of the world’s biggest chip exporters, is forming an alliance with Samsung, SK Hynix and Hyundai to expand its domestic car chip manufacturing.

Source: CNBeta, March 31, 2021
https://www.cnbeta.com/articles/tech/1109051.htm

Remin University Professor: Goal of Belt and Road Initiative Is to Internationalize the Renminbi and Replace the U.S. dollar

Di Dongsheng is a professor and vice dean of the School of International Studies (SIS) at Renmin University and deputy director and secretary-general of the China Center for Foreign Strategic Studies. Di is known for a public speech he made last November in which he boasted that China has influence in the U.S. political circles. [Editor’s note: That article “CCP Scholar: CCP Can Use Wall Street to Influence the U.S. Political Circle, December 6, 2020, can be seen at http://chinascope.org/archives/25265]

In a video published in February this year, Di gave another talk titled, “Belt and Road 2.0 in the Post COVID 19 Era: Exporting China’s Governance Experience and Capability.” In this talk, Di stated, “The goal of the Belt and Road initiative is to internationalize the Renminbi (Chinese Yuan) and replace the U.S. dollar.”

Di said that the Belt and Road initiative is not about (controlling) resources, in fact it is about defining the value of the RMB: “We go after the younger generations in the belt and road countries. They don’t have money but they want to buy things. We loan money to them. We invest in them. We hire them. Once they have income and money, they will buy products made in China. We will continue to use the money and loan it to them and eventually we will let the people in those countries be part of the Renminbi currency cycle.” Di proposed a model in which Beijing would build special zones (like the Shenzhen special economic zone) in the belt and road countries and then the Chinese people would migrate there. Beijing would still hold the governing power over the Chinese migrants and the local ethnic population in the zone. He also claimed that, “China’s national debt will become the global value-based benchmark. The Chinese people’s consumption power will give birth to the world’s largest market and the Renminbi will become the future world’s currency.

Gong Shengli, a Chinese economist, slammed Di’s statements saying it was merely empty talk because there is lack of trust in the Renminbi in the world and in China’s one-party political system. Gong questioned how many countries have purchased Chinese bonds and where  the economic return is from the Belt and Road Initiative. A Taiwanese economist Wu Jialong said that Di’s statements were simply to please Beijing which is in line with China’s rising power narrative.

Sources:

1. NTDTV, April 2, 2021
https://www.ntdtv.com/gb/2021/04/02/a103087367.html
2. Guan Video, February 3, 2021

Can’t Afford to Die – China’s Funeral Expenses Average 45.4 Percent of Annual Salaries

April 4 is the day for the Qingming Festival, also known as Tomb-Sweeping Day when Chinese families visit their ancestors’ graves.

The data released by the China Funeral Association in 2014 show that funeral services reached 200 billion yuan in 2014. The funeral industry has developed into a booming sector.

According to analysts, China’s funeral industry’s market size was about 263.8 billion yuan in 2020 and may reach 411.4 billion yuan by 2026. Based on the data available, the gross profit margin of leading funeral service companies has been over 80 percent, far exceeding that of leading real estate companies in China, which hovers between 22 and 25 percent.

Behind the funeral industry’s profits are the public’s concerns that the rising cost of funerals means that people will soon be unable to afford funeral services.

A survey report on global funeral expenses by the British life insurance agency SunLife shows that the average funeral expenses worldwide are about 10 percent of the annual income of the local people. For China, however, funeral expenses (37,375 yuan or around US $5,690.90) account for about 45.4 percent of the average annual salaries, ranking second globally.

Source: Tencent, April 3, 2021.
https://new.qq.com/omn/20210402/20210402A0DMAL00.html

Chinese Official Media Highlight 20th Anniversary of Hainan Island Incident

China’s official media have recently publicized and commemorated the death of People’s Liberation Army Navy (PLAN) pilot Wang Wei, who was killed 20 years ago in a collision between the United States Navy EP-3E ARIES II signals intelligence aircraft and a PLAN J-8II interceptor fighter jet. Against the backdrop of the tense confrontation between the two countries, the move is seen as a tactic to rally anti-American sentiment.

On April 1, 2001, the EP-3 was operating about 70 miles (110 km) away from the PRC island province of Hainan, and about 100 miles (160 km) away from the Chinese military installation in the Paracel Islands, when it was intercepted by two J-8 fighters. A collision between the EP-3 and one of the J-8s caused the PRC pilot to go missing (later presumed dead), and the EP-3 was forced to make an emergency landing on Hainan. The J-8 pilot, Lt. Cdr. Wang Wei, was posthumously honored in China as a “Guardian of Territorial Airspace and Waters.” His widow received a personal letter of condolence from President George W. Bush.

An official account on WeChat posted an article titled “April 1, the Most Complicated Day for Chinese People.” The article listed a number of incidents that occurred on April 1, the first of which was Wang Wei’s death in service. The article extrapolated from the incident and emphasized that the event has prodded Chinese to work harder and prepare for a comeback. Twenty years later, China is no longer the same China. It also criticized the United States for acting unilaterally, imposing sanctions at will, and for pointing and poking fingers. “The world is scared when the U.S. gets mad.”

On March 31, the Communist Party’s mouthpiece China Global Television Network (CGTN) and Xinhua News Agency also covered the news in high profile. The reports emphasized that Wang was killed because the U.S. military violated China’s territorial airspace. In addition, news media with a military background such as PLA Daily, 81.cn, have also carried articles in memory of Wang.

With no apparent easing of tension between China and the United States, Chinese netizens have paid considerable attention to this incident. Many have left comments criticizing the U.S. for being hegemonic and using its fists to force people into compliance. Some netizens also said, “Today’s China is no longer the China of 20 years ago that would only take orders from the United States,” and “China’s military strength has gradually caught up with that of the United States.”

Source: Central News Agency, April 1, 2021
https://www.cna.com.tw/news/acn/202104010137.aspx

CCP Installed a Committee in Alibaba’s Beijing Headquarters

According to a recent report in Chinese media, Alibaba has recently established a Chinese Communist Party (CCP) committee at its headquarters in Beijing. Previously, the company only had a CCP committee at its Hangzhou headquarters. After the implementation of the “dual headquarters” in Beijing and Hangzhou in 2016, the company only had a CCP branch, instead of a CCP committee in Beijing, where CCP members accounted for more than 30 percent of its employees. The establishment of the CCP committee at its Beijing Headquarters has elevated the CCP’s organizational footprint in China’s largest e-commerce company.

1.585 million, or more than 40 percent of private enterprises in China have internal CCP organizations.

Hu Jia, a Chinese social activist, told Voice of America that, since coming to power in 2012, Xi Jinping has built up CCP organizations within the state sector. Against the current backdrop of the severe international situation, the CCP wishes to extend its tight grip over private enterprises. “The most valuable ones are those of the unicorn type, which have new technologies and the capacity to innovate in the Internet economy. Such enterprises are capably of wealth creation and societal control, and can also participate in the international economic and technological competition and even confrontation. The CCP would like to have more power over these entities.”

The expansion of CCP committees in Alibaba is also seen by public opinion as a sign that the CCP is short of money and technology and wants to use private enterprises to “feed” state-owned enterprises. Sang Pu, a commentator, told the American media Sound of Hope that the party actually controls and manipulates private enterprises in mainland China. The reason why the CCP is strengthening the Party’s leadership is that it is short of money and needs to take further action against these tech giants.

The Constitution of the CCP and China’s Corporate Law allow the establishment of CCP organizations in private enterprises. As part of its United Front Work, the CCP proposed to “establish a modern private enterprise system with Chinese characteristics” and emphasized that the party should have three privileges in private enterprises: human resources, surveillance and audit, and the leadership over trade unions.

“To be successful under the CCP’s rule, private companies must have official support and maintain some kind of intimacy with the government. From the perspective of private enterprises, they have their own considerations. If you don’t have a CCP committee, and if you don’t give sufficient convenience for CCP members to conduct party activities, you will always have the feeling that big brother is watching you, and that your wealth and business are often in an unstable and insecure state. That is because officials can control you by any means, such as tax inspections, firefighting, public health and other channels.” Hu Jia said that Chinese private enterprises somehow have to show loyalty in order to have the opportunity to survive and thrive.

Source: Voice of America, April 2, 2021
https://www.voachinese.com/a/CCP-within-Alibaba-20210402/5838104.html

CCP Spokesperson: Population Counts; Chinese Netizens Think Otherwise

Chinese Foreign Ministry spokesperson Hua Chunying dismissed the United States, Great Britain, Canada, and the European Union because their combined population accounts for merely 11 percent of the world’s total population. This contrasts with the CCP’s usual practice of using GDP as the yardstick to brag about its economy. As soon as this remark came out, it caused a wave of online ridicule.

On March 23, 2021, at a press conference on this subject, Hua was asked whether she was concerned that more countries would impose sanctions in a concerted manner. She issued a rebuttal, saying that the United States, the United Kingdom, Canada, and the European Union combined account for about merely 11 percent of the world’s population, while China has about one-fifth. Therefore, she stated that these countries’ voices are not the voices of the international opinion and that their position does not represent that of the international community.  She asked these countries to “take a good look at themselves.”

Her remarks did not appear to sit well with Chinese netizens.

“According to this statement, your Party’s population [Chinese Communist Party (CCP) members] accounts for less than one-tenth of the country, and it [the CCP] is not elected or authorized in any form. Yet, you still bark everywhere without shame on behalf of a billion people.”

“Does 11 percent of your one-fifth of the world’s population support you?”

“Then how dare the 90 million [CCP members] represent one billion people? Shame on you for representing the people of the earth and managing the earth.”

“The 90 million CCP members account for only 6 percent of the Chinese population. How can they say that they represent the Chinese people? Only a government elected by the people, with each person having one vote, is in a position to say that it represents the people and the opinion of the public.”

“1.4 billion Chinese are kidnapped as hostages. In this case, the number of hostages is needed to refute the rules of the civilized world. However, when it comes to education, medical care, and pensions, 1.4 billion people are worth nothing when pandemic relief funds are needed. Not even one penny has been given out. To put it bluntly, what is happening in China is that twenty or thirty evil cult leaders determine the fate of 1.4 billion people. The rogue regime never treats people as human beings, and they are all just hostages held under the gun.”

Analysts believe that the CCP statement “Europe and the United States do not represent international public opinion” has become the latest CCP propaganda to fool Chinese people. It may also reflect the retreat of the CCP’s propaganda. After it has failed to divide Europe and the United States, the CCP now declares that the public opinion of Europe and the United States do not count whatsoever.

Source: Radio France International, March 24, 2021

https://www.rfi.fr/cn/%E4%B8%AD%E5%9B%BD/20210324-%E5%8D%8E%E6%98%A5%E8%8E%B9%E4%B8%8D%E5%86%8D%E6%AF%94gdp%E5%8F%AA%E7%9C%8B%E8%B0%81%E4%BA%BA%E5%A4%9A-%E4%B8%AD%E5%9B%BD%E7%BD%91%E6%B0%91%E5%90%90%E6%A7%BD

Disciplinary Actions against CCP Members Who Disagree with the CCP

On March 28, 2021, Xinhua reported that the Chinese Communist Party (CCP) issued (trial) disciplinary regulations for 17 types of behavior that would be subject to disciplinary action.

The General Office of the CCP Central Committee’s notice distributing the regulations emphasized that disciplinary actions are an indispensable method for educating and managing cadres and an essential measure for the Party to maintain complete and tight control.

The regulation lists 17 types of behavior that are subject to disciplinary action.

The first is the failure to be in agreement with or taking positions on significant issues which are not consistent with the CCP. The second is “having doubts about ideals and beliefs, lacking in Marxist beliefs, engaging in feudal and superstitious activities that cause adverse effects, participating in religious activities in violation of the CCP’s regulations, or believing in cults.”

The third is “ineffective implementation, making choices, discounting, and making changes” when implementing the theories, strategies, and decisions of the CCP Central Committee, which result in adverse effects or severe consequences.

The fourth is a lack of courage to fight and an unwillingness to take responsibility when facing significant issues of right and wrong, major conflicts, and crises and difficulties, which result in adverse effects or serious consequences.

Others include failure to report personal matters such as leaving for overseas.

Source: The Central People’s Government of China, March 28, 2021
http://www.gov.cn/zhengce/2021-03/28/content_5596366.htm