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RFA: Xi Jinping’s Warning to the Western World Meant to Ensure Domestic Stability

On Friday, October 23, Xi Jinping spoke at a meeting commemorating the 70th anniversary of the Korean War [Editor’s note: The CCP calls the Korean War the war in which China resisted U.S. aggression and aided Korea (抗美援朝)]. Xi warned that “any bullying actions will come to a dead end.” He advised that if China’s national security, sovereignty, territory, and development interests are threatened, China will “take it head-on.” This is seen as the strongest political statement that the CCP has made in the past 40 years. Chinese Scholars believe that stabilizing internal affairs still remains as Xi Jinping’s first priority.

In his speech, Xi Jinping said that the Korean War shattered the myth of the invincibility of the U.S. military and demonstrated with solid facts that, no matter how powerful any country or military is, if one stands on the opposite side of the world’s development trend, bullies the weak and aggressively expands, one will definitely be crushed. He also said, “In today’s world, any unilateralism, protectionism, and extreme egoism will not work. Any extortion, blockade, or extreme pressure will not work. Any way of doing things on their own and acting on their own will not work. Any act of hegemony or bullying will never work at all. Not only will it not work at all, it will eventually be a dead end.” It is believed that Xi was referring to the U.S. in his speech. Xi Jinping also said, “Now that the Chinese people are mobilized, don’t provoke them or make them angry. Otherwise the situation will be difficult to handle. We will never stand by and watch the country’s sovereignty, security, and development interests suffer, and we will never allow anyone or any forces to invade and split the sacred territory of the motherland. Once such a serious situation occurs, the Chinese people will definitely attack it head-on.”

A former lecturer from Tsinghua University told Radio Free Asia that Xi gave the strongest speech in the past 40 years, but the fact that Beijing remains confrontational with a sense of uncertainty, just as it did during the Korean War, shows that it still lacks a reflection on history. It is dangerous for Beijing constantly to incite nationalism, xenophobia and confrontation among the Chinese people and to exaggerate the possibility that China could be on the edge of a war in the future. One dissident said that China didn’t win the Korean War. In fact, it paid a costly price and suffered a disastrous defeat. One scholar said that Xi Jinping wants to win a war with the U.S. to establish himself in China, but other scholars believe that the statement is a complete bluff. It was only for the need to incite populism and nationalism inside China. China is falling behind the U.S. in military power and it is not prepared to go to a war with the U.S.

In June 1950, when the Korean War broke out, the United Nations, led by the United States, sent troops to support South Korea to resist the invasion from North Korean. Starting in October 1950, China sent more than one million soldiers to the war to support the Kim Il Sung regime of North Korea. According to official Chinese statistics, nearly 200,000 soldiers were eventually killed in battle.

Source: Radio Free Asia, October 23, 2020
https://www.rfa.org/mandarin/yataibaodao/zhengzhi/QL-10232020030617.html

Wang Qishan Warned against Risk of Financial Bubbles

According to Hong Kong Economic Times, China’s Vice president Wang Qishan gave a video speech at the Bund Summit 2020 held in Shanghai on October 24. Wang said, “The Financial sector, when separated from the real economy, is ‘water without a source and a tree without roots.’ The financial sector cannot take the crooked path of speculation and gambling, the wrong path of the self-circulation of financial bubbles, and the evil path of Ponzi schemes.”

Wang also emphasized that, among the three principles of safety, liquidity, and efficiency that the financial industry must follow, “safety always comes first.” He also maintained that the bottom line is that no systemic risks should be taken.

He added that, as new financial technologies have been widely used and new business models have emerged, financial risks are on the upsurge. It is necessary to strike a balance between encouraging financial innovation, expanding financial openness, and strengthening supervision over the industry.

Source: Hong Kong Economic Times, October 25, 2020
https://china.hket.com/article/2785682

Exporting Excess Capacity through “One Belt One Road”

An internal Chinese Communist Party (CCP) document that Jilin Province issued reveals that the purpose of China’s “One Belt One Road” strategy is to enable China to export excess capacity.

The document disclosed that one of the main tasks of China’s industrial transformation and upgrading is to “solve the excess capacity” problem through the “One Belt One Road” strategy.

According to the Jilin Provincial Government, “with the ‘One Belt One Road’ strategy leading us, our province should take the initiative to find the consumer market, digest excess capacity, adjust economic structure, promote industrial transformation, and promote product upgrading.” The document mentioned China’s first automobile manufacturing plant “FAW” located in Jilin Province, saying that “Changchun FAW and its supporting enterprises will usher in a rare opportunity.”

FAW has had a serious overcapacity problem. Its brands, Pentium, Red Flag, FAW Jilin, and FAW Tianjin have a combined total production capacity of 780,000 vehicles. In 2017, the sales volume was only 210,000 vehicles, and the capacity utilization rate was less than 30 percent.

According to statistics that the China Association of Automobile Manufacturers released, due to the continued decrease in sales and the continued increase in production capacity, the capacity utilization rate of passenger vehicles in China has dropped from 66.55 percent in 2017 to 53.74 percent in 2019.

Internal documents from Anhui Province also show that local governments are actively transferring excess production capacity through “One Belt One Road.”

In the documents, the CCP Chuzhou municipal government in Anhui Province encourages companies with excess capacity to invest in countries along the “One Belt One Road” and focus on supporting companies involving cement, glass and construction materials to establish production facilities along the route.

Source: Epoch Times, October 7, 2020
https://www.epochtimes.com/gb/20/10/6/n12458129.html

China Views U.S. Diplomatic Missions in China as Hostile Forces

An internal document that Epoch Times recently obtained shows that the Chinese Communist Party (CCP) regards the U.S. and other Western embassies and consulates in China as “hostile forces” “to contain and to block.”

The document that the Foreign Affairs Bureau of Leizhou City, Guangdong Province, issued on April 5, 2018, was titled, The “Working Plan for Guarding against and Combating Hostile Forces’ Infiltration and Destructive Activities in order to Maintain Political Security.”

The plan identifies the focus of “preventing and combating hostile forces” from the U.S. and other Western embassies and consulates in China and lists the details of the methods.

According to the internal documents, the priority is to “prevent the penetration of and destruction by the U.S. and other Western embassies and consulates in China.”

The “objective is to counteract the internalization, personalization, and agency of the U.S. and Western embassies and consulates in China in their infiltration activities and to block them effectively from communicating with key political persons, lawyers, ‘public intellectuals,’ ’rights defenders and specific interest groups,’ and to sever their ties and break their network, in order to compress their penetration space, reduce their penetration energy, and defeat their penetration scheme.”

The Leizhou Foreign Affairs Bureau listed several implementation measures. “Cut off any connections between the U.S. and other Western embassies and consulates in China and with key [Chinese] figures in the country. Strengthen intelligence and early warnings, find out about the infiltration activities of the U.S. and other Western consulates in Guangzhou in a timely manner and use various methods such as reminders, warnings, striking, and other methods to discourage relevant [Chinese] figures from participating in the activities to such an extent that the U.S. and other Western consulates in Guangzhou ‘cannot connect, cannot enter and cannot make things happen.’”

In addition to these measures, the Foreign Affairs Bureau also directed “to establish a database of key personnel of the U.S. and other Western embassies and consulates in China. Use big data to collect background information about activities and the whereabouts of relevant personnel [diplomats].”

Source: Epoch Times, October 16, 2020
https://www.epochtimes.com/gb/20/10/12/n12471193.htm

Huawei Lost another Major EU Customer

Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that French-owned telecommunications giant Orange Belgium officially announced it selected Nokia’s 5G technology to deploy its 5G network throughout Belgium. Orange decided to build its future 5G infrastructure on top of its current Ericsson network. Orange Belgium also operates in Luxembourg, where Nokia 5G technology will also be used. In the meantime, Orange Belgium’s competitor Proximus also announced the decision to use Nokia in its Belgium and Luxembourg networks. Belgium is the focal point of the United States on pushing out Huawei since the EU Executive Branch and the EU Parliament are located in Belgium’s capital, the City of Brussels. The U.S. sanction on Huawei brought the deep worry that Huawei may not be capable of keeping up with supply. Huawei commented on Orange’s decision, saying this is a loss in a fair bidding process, and Huawei respects fair play. Huawei has been serving the Belgium market for over ten years.

Source: Sohu, October 12, 2020
https://m.k.sohu.com/d/488169663?channelId=1&page=1

Chinese Student Visas to the U.S. Fell Dramatically

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the previous U.S. strategy of peacefully transforming China has apparently failed, so now the United States has started to worry that the Chinese scholars and students can be used as weapons against the U.S. As part of the Trump administration’s overall Chinese strategy, the U.S. government has been speeding up its radical process of delinking with China. Due to the pandemic and the change of Chinese students’ choice of destination, as well as the changes in U.S. policies, this June’s number of U.S. student visas granted to Chinese students was eight, and another eight Chinese applicants were granted visiting scholar visas. The same numbers in June of 2019 were 34,001 and 5,736, respectively. With the new restrictions imposed on the academic exchanges between China and the U.S., the opportunities for the United States to better understand the complex Chinese society will significantly decline. If Washington continues its policies, it will lose the capabilities to influence China in many areas like the economy, the financial system, public health, environmental protection, education and cultural exchanges.

Source: Sina, October 16, 2020
https://finance.sina.com.cn/wm/2020-10-16/doc-iiznctkc5875586.shtml

HKET: UK Introduces National Security and Investment Bill

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that the British government has been drafting a National Security and Investment Bill to govern sensitive technology related to foreign investments, especially in the areas of defense and infrastructure. The draft was planned to be discussed in the Cabinet after its completion by the end of this month. The Parliament is scheduled to review and approve the Bill next month, at the earliest. The biggest debate about the new bill was regarding the authorization of cabinet members to overturn past or current investment projects. British laws rarely have retroactive power. The British government has been considering legislation to regulate national security related foreign investments since the last quarter of 2019. It is widely recognized as a move against Chinese investments. Prime Minister Johnson already ordered the phase-out of Huawei equipment. The most sensitive project with Chinese involvement is the Hinkley Point C nuclear project.

Source: HKET, October 14, 2020
https://bit.ly/2IGXEGo

Package Delivery Companies in China on Strike

Recently, people in many parts of China have complained about the delay in package delivery. The media reported that a number of package delivery companies are on strike due to wage cuts. The strike highlights the unhealthy price competition among the booming package delivery companies in China.

Metropolitan newspapers reported that due to rising logistics costs, some delivery companies chose to cut the delivery fee paid to couriers to save money. One company cut the delivery fee from the original 1.2 yuan (18 cents) per item to 0.5 yuan (7.5 cents).

The couriers who went on strike came from companies including ZTO Express, Yunda Express, Best Express, and the YTO Express Group. The affected areas included Changsha in Hunan province, Sanming in Fujian province, Hebei province, Suzhou in Jiangsu province, and Changchun in Jilin province.

The booming e-commerce in China has sent the package delivery industry on a high growth path. Although companies such as SF Express, Yunda Express, and STO Express have gone public, the industry has been stuck in a price war for a long time.

For example, in 2015, in Yiwu city of Zhejiang province, the delivery fee was 7.44 yuan (US$ 1.11) per item, and in the first half of 2019, it dropped to only 3.45 yuan (52 cents). Parcels under one kilogram had a fee as low as 1 yuan (15 cents).

In addition, most couriers, except SF Express employees, are paid using a piece rate only and have no minimal pay.

Source: Central News Agency, October 18, 2020
https://www.cna.com.tw/news/acn/202010180200.aspx