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China’s Banking Industry: Non-performing Debt to Surge as Preferential Policies Expire

The profitability of China’s banking industry has severely deteriorated as a result of the ongoing epidemic. Each and every of the five state banks has recorded double-digit negative first-half net profit growth. According to Reuters, increasing the provisions for bad debts and more speedily disposing of them are the banks’ main measures for dealing with the slowing economy and the impact of the virus.

Liao Lin, vice president and chief risk officer of the Industrial and Commercial Bank of China (ICBC), talked about the mounting pressure of controlling the quality of the collateral for deferred loan repayments in the second half. Jin Yanmin, the chief risk officer of China Construction Bank (CCB), expressed that the expiration of relevant preferential policies that help companies to recover may affect the appraised value of the customers’ assets. In the first half of next year, more non-performing debts may surface. Zhang Qingsong, President of the Agricultural Bank of China (ABC), mentioned two sectors with greater uncertainty in the mortgage assets: one is the businesses that the epidemic directly impacts, such as catering, accommodation, tourism, and entertainment; the other is those with a high degree of external dependence and high risks due to external uncertainty, such as export-oriented low-end manufacturing.

The interim results of the five major banks showed that their non-performing loan ratios are slightly on the rise, ending a three-year downward trend. Among them, the Bank of Communications (BC) shows the largest climb at 21BP (basis point), followed by ICBC and CCB, both at 7BP. Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), the state regulator of the banking industry, recently stated that the banking industry is expected to dispose of 3.4 trillion yuan (US$ 500 billion) of overdue loans this year, compared to 2.3 trillion yuan (US$ 340 billion) last year.

Source: Central News Agency, September 1, 2020
https://www.cna.com.tw/news/acn/202009010113.aspx

Lianhe Zaobao: China Warned Norway: Don’t Award Nobel Prize to Hong Kong Residents

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that Chinese Foreign Minister Wang Yi commented in a joint press conference with Norwegian Minister of Foreign Affairs Ine Eriksen Søreide that China made it clear that it would not like to see the politicization of the Nobel Prize. There have been Norwegian lawmakers as well as U.S. congressmen who nominated Hong Kong Residents as the Nobel Peace Prize candidate. Although the Nobel Prize Committee is independent from the Norwegian government, yet its decisions may still impact the government’s relationship with China. Wang Yi’s recent visit was the first time a Chinese Foreign Minister visited in 15 years. Wang urged the Norwegian government to “cherish” the opportunity to have a “healthy” relationship and promised more “openness” from China.

Source: Lianhe Zaobao, August 29, 2020
http://www.uzaobao.com/cngov/2020-08/2977148.html

SETN: Indian Government Is Silently Removing Huawei

Sanlih, one of the primary Taiwanese TV stations, recently reported that, with the worsening of the China-India relationship, the movement inside the Indian government to eliminate Huawei’s presence in India has been expanding quietly. Although India has not officially announced a ban on Huawei and ZTE, yet multiple central government ministers have been telling the Indian domestic telecommunications companies to avoid deploying equipment made in China, including 5G network equipment. A high-ranking executive from India’s top communications service provider said the government has already blocked all Chinese bidders from having access to India’s 5G network tests. “It’s now very clear – it’s game over,” said this anonymous source. India is the world’s second largest mobile telecommunications market, with 850 million users. Huawei was established as a major supplier for all three of India’s top telecommunications providers. If the government were to ban Huawei, it would be a massive setback for Huawei. Another government source suggested that India may not issue an official ban to avoid angering China; however, the Modi administration has been “on high alert.”

Source: SETN, August 25, 2020
https://www.setn.com/News.aspx?NewsID=802871

TechNews: Huawei Urges Suppliers to Ship before the U.S. Ban

Taiwanese technology news site TechNews recently reported that Huawei has lately switched to “survival mode” and is trying to establish a large enough chip stock before the U.S. ban takes effect on September 14. According to sources familiar with the matter from among Huawei’s key Taiwanese suppliers, namely MediaTek, Realtek, Novatek and RichWave, Huawei has been calling suppliers at 4 AM in the morning or setting up midnight teleconferences urging them to sending shipments. Samsung, SK Hynix, and even optical lens manufacturers are also rushing their shipments due to the fact that all these vendors use U.S. technology. In some cases, Huawei obtained agreements from suppliers to ship half-made products or products that have not yet passed the quality assurance (QA) processes. However, one of the largest Huawei suppliers, MediaTek, issued a statement clarifying that they will not ship any products without QA. Some companies declined to comment on the inquiry.

Source: TechNews, August 26, 2020
https:// technews.tw/2020/08/26/huawei-in-survival-mode-as-suppliers-race-to-beat-us-deadline/

The CCP Inspects the Entire Internet for Xinjiang Information More than 1 Million Times Per Day

Recently, Epoch Times obtained a document that the Chinese Communist Party’s local branch at the Public Opinion Center of Xinjiang Cyberspace Affairs Office (the Public Opinion Center) issued on June 20, 2019.

According to the document, the Public Opinion Center currently monitors and inspects Xinjiang-related information on the entire Internet at all times, by all means, and through all platforms, with an average of more than 1 million inspections per day.

From its establishment in 2014 to June 2019, the Public Opinion Center “reported and investigated” (i.e., referred for investigations and penalties) a total of more than 1.07 million pieces of information related to the “CCP, government, military, violence, terrorism, and religious extremism.” It shut down over 4,800 websites, canceled over 4,440 new media accounts, and suspended over 760 websites. It interrogated over 690 persons in charge of the websites and investigated over 63,000 netizens.

The document stated that the Public Opinion Center focuses on the Internet postings about the “China threat theory,” the “China penetration theory,” the “Chinese hegemony theory,” and “strictly investigates officials who violate discipline and the law and engage in internal fighting.” The Public Opinion Center monitored and censored over 150,000 pieces of political information, including 145,000 pieces of information outside Xinjiang and over 5,000 pieces of information inside Xinjiang. The CCP Central Government’s Cyberspace Affairs Office repeatedly commended the Public Opinion Center of the Xinjiang Cyberspace Affairs Office.

The Xinjiang Cyberspace Affairs Office keeps an eye on more than 2,300 Xinjiang-related key people and key accounts.

To control the dissemination of videos, over 500,000 videos have been censored, information transmission has been blocked more than 6.3 million times, and 40,281 information samples have been blocked and filtered.

For example, the document stated that in May 2017, the CCP Central Committee and the Xinjiang autonomous region worked together to “purify the public opinion environment.” The Public Opinion Center directed the cyber information offices of all prefectures and cities across Xinjiang to dispose of more than 200,000 pieces of negative information.

To join the Public Opinion Center, one must pass a strict “political” background check, and must also be in good health to be able to monitor online 24 hours a day, seven days a week, and 365 days a year. As for language skills, people working at the Public Opinion Center are proficient in Uighur, Kazakh, English, Russian, Uzbek, Arabic, and other languages.

Source: Epoch Times, August 30, 2020
https://www.epochtimes.com/gb/20/8/26/n12358317.htm

Mass Protests in Inner Mongolia as Officials Replace Mongolian Language with Chinese

The Education Department of the Inner Mongolia Autonomous Region announced that, starting with the new semester on September 1, all elementary and middle schools in the region will adopt what is called the bilingual teaching model. That is, the three subjects related to China, which are history, ethics, and the rule of law,  will be taught in Chinese instead of the traditional Mongolian language. The move triggered a strong backlash from the locals in Inner Mongolia. Mongolian rights organizations in the U.S. also condemned China for suppressing Mongolian freedom of speech and destroying their national identity. They called it “cultural extermination” in Inner Mongolia.

The Mongolian teachers in Erenhot City launched a strike. Many Mongolian parents plan to teach their children at home instead of sending them to school. Herders also held simultaneous demonstrations in major cities across Inner Mongolia to protest the “cultural extinction.” Thousands of local students dressed in traditional Mongolian costumes participated in the demonstrations. Video footage of the protests also circulated on Twitter.

The Inner Mongolia Human Rights Information Center reported that, as the scale of the protests continues to escalate, the authorities also started to suppress the demonstrators. Hundreds of parents from the Mongolian language school in Zalut Banner gathered in front of the school and demanded the immediate release of the children detained in the school’s dormitory. The local police, however, blocked them from entering into the school. In Horqin Zuoyizhong Banner, the police beat the parents. In Hohhot, students and their parents from the Inner Mongolia Normal University Affiliated School protested in front of the school and launched a petition. Many parents said that if the appeal fails, they will not send their children to school. There are also reports that several hundred Mongolian activists were either detained or under house arrest because they participated in organizing the protests.

Source:
1. Secret China, August 30, 2020
https://www.secretchina.com/news/b5/2020/08/30/944635.html
2. Twitter Post
https:// twitter.com/lengshanshipin/status/1300070212746706945

College Graduates Took Stability Maintenance Positions as Unemployment Worsened

China’s unemployment rate has been hit hard as the economy has continued to slow down. In the past, students who graduated from Peking and Tsinghua University used to be favorite candidates for the large companies. Now they can hardly find excellent jobs. Some of those who hold doctoral and master degrees from Peking and Tsinghua University reportedly have been applying for positions in the office of sub-districts in Hangzhou city of Zhejiang Province. Some of them have even taken positions as a stability maintenance agent.

According to the official data, there will be 8.74 million college graduates in China in 2020, an increase of more than 400,000 from last year. With COVID 19, the deterioration of US-China relations and the withdrawal of foreign capital from China, the pressure for employment in China has greatly increased. The statistics from a private institution suggest that the unemployment rate in China could reach double digit growth this year.

Source: Radio Free Asia, August 24, 2020
https://www.rfa.org/mandarin/yataibaodao/kejiaowen/ql-08242020060116.html

China Owned International Academic Journal Imposes Political Censorship

Wu Ruoxuan, a Doctor from Taiwan, was shocked to learn from the editor of Eye and Vision, a medical journal that Springer Nature publishes, that in accordance with the relevant Chinese policies of the journal and the Springer Nature Group, she must use “Taiwan, China” as her nationality; otherwise her paper would not be published. After Wu posted her story on social media, it drew criticism on the issue of political censorship in the academic journal industry.

In the written correspondence that Radio Free Asia obtained from Springer Nature, it stated that, for journals that they own, the author can decide how they wish to present their academic affiliations. However, since Eye and Vision is a journal that the Eye Hospital of Wenzhou Medical University in China owns, it must comply with a “different set of regulations.” With its headquarter in London, Springer Nature is the world’s largest academic publisher. It owns more than 3,000 journals including Nature and Scientific American. In November 2017, Springer Nature was also condemned for cooperating with its Chinese partners and blocking at least several hundred articles on Taiwan, Tibet, human rights, and politics from its Chinese website.

According to the website of the Eye Hospital of Wenzhou Medical University, Eye and Vision is an international English journal sponsored by the Wenzhou Medical University. It was launched in October 2014. Qu Jia, the director of the Eye Optometry Hospital is the chief editor. The journal was set up under China’s initiative to “improve the international influence of China’s Science and Technology Journal” which is a plan backed by the Chinese Association for Science and Technology, the Ministry of Finance, the Ministry of Education, the State Administration of Press, Publication, Radio, Film and Television, the Chinese Academy of Sciences, and the Chinese Academy of Engineering. The goal is to “open a channel to improve the globalization of journals in the Chinese scientific research community.”

It has become a new trend for China to start publishing journals on its own, to cooperate with foreign publishers, or to acquire foreign publishers directly. “Chinese technology and culture going global” is a phrase that the official Chinese media have often used. In 2019, the Chinese Academy of Sciences Holding Company acquired the French EDP Sciences publishing house founded by famous scientists, including Madame Curie. Xinhua reported at the time that this was an important step for China Science and Technology to implement its globalization strategy.

Source: Radio Free Asia, August 26, 2020
https://www.rfa.org/mandarin/yataibaodao/gangtai/jt-08262020113515.html