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$50 Billion Worth of Cryptocurrency Left China within 12 Months

According to a report from the blockchain analytics firm Chainalysis, over the past 12 months, over $50 billion worth of cryptocurrency has left China. Analysts claim that the yuan’s fluctuating valuation over this year and tensions amid the ongoing U.S.–China trade war could be spurring local investors to evade capital controls. Beijing bars citizens from moving more than the equivalent of $50,000 out of the country each year.

Tether (USDT) in particular — could be playing a key role. Since Beijing’s 2017 ban on the direct conversions of the yuan to cryptocurrency, the U.S. dollar-pegged stablecoin Tether has served as a popular stand-in for fiat for traders in the Chinese market. In the East Asian market, over $18 billion worth of Tether was moved to addresses based in foreign jurisdictions over the past year. How much of this reflects capital flight remains difficult to establish conclusively.

While yuan-USDT trades are, strictly speaking, also prohibited, OTC (over the counter) brokers continue to sell the stablecoin to enable traders to lock in their gains from crypto trades without worrying about price volatility. In June of this year, Tether outflanked Bitcoin to become the digital asset that East Asian addresses received the most.

The government has meanwhile cracked down on routes for offshoring capital via foreign real estate investments and other assets, leaving cryptocurrency as a possible alternative.

Other contributing factors include uncertainty as to how Beijing’s forthcoming national cryptocurrency will impact the private digital asset market. Chainalysis suggests that this may be driving China’s cryptocurrency community “to move portions of their holdings overseas.”

Source: Central News Agency, August 22, 2020
https://www.cna.com.tw/news/acn/202008220203.aspx

Prime Minister Li Keqiang’s Visit to Flood Zone Drew Late Official Coverage

On August 20, Li Keqiang visited Chongqing, a heavily flooded area. The People’s Daily, CCTV, and Xinhua did not report any coverage of his visit until August 23, which is quite unusual. The Chinese government website (www.gov.cn) was the only site that covered Li’s visit on August 20. Meanwhile, Xi Jinping’s visit to Anhui province on August 18 through the 20th was among the top news in Chinese media.

In the videos and photos that the government website released, it showed that Li Keqiang wore rain boots and was walking in the mud. He inquired about the disaster and was concerned about the harvest and the lives of the victims. Mainland netizens highly praised Li, calling him “the prime minister of the people.”

In contrast, Xi Jinping was seen wearing leather shoes to visit the fields in Anhui that were once a heavily flooded zone but had since been recovering. People also discovered that in one picture, Xi was speaking to a woman holding a child, but the woman was suspected of being the deputy chief of the local Public Security Bureau. On Wednesday, August 19, Xi visited the Baowu Masteel Group. People said that those who Xi Jinping met were background actors who the officials had vetted, a common practice among CCP officials.

Xi’s visit to Anhui came after the floods in Anhui province had subsided. This was Xi’s first public appearance after the Beidaihe summit. Xi’s last public appearance was on July 31 when he attended the opening ceremony of the Beidou-3 global satellite navigation system. Xi was also criticized for not visiting the flood zone during the peak of the flooding time.

The rumors of infighting between Xi Jinping and his Prime Minister Li Keqiang have surfaced again. In recent months, Li Keqiang was seen to have different views and actions from Xi Jinping on a number of issues. There is speculation that Li knows that he is unable to take down Xi Jinping. Therefore, he is preparing for his departure in 2023; however, he can only use the Chinese government website to highlight his achievements so as to prevent future retaliation.

Source:
1.Radio Free Asia, August 19, 2020
https://www.rfa.org/mandarin/yataibaodao/zhengzhi/ql1-08192020061755.html
2. Central News Agency, August 20, 2020
https://www.cna.com.tw/news/firstnews/202008220085.aspx
3. Secret China, August 24, 2020
https://www.secretchina.com/news/b5/2020/08/24/944016.html

European and American Alumni Associations Serve the Party

Documents that The Epoch Times recently obtained show how the CCP strictly controls the Chinese students who have returned from studying abroad. The CCP uses the “European and American Alumni Associations” in a number of cities and provinces in China and has the students serve the CCP’s Belt and Road initiatives and civil diplomacy.

The European and American Alumni Association is an organization that consists of overseas students. The Central Committee leads it and the United Front Work Department manages it. The official website shows that the European and American Alumni Association currently has 42 local organizations, 15 national and regional branches, and 220,000 members. There are seven special working committees and seven professional committees.

In the document that The Epoch Times obtained, Liu Shuhua, a member of the Standing Committee of the Henan Nanyang Municipal Party Committee and Minister of the United Front Work Department spoke at the inaugural meeting of Nanyang European and American Students Association held on October 27, 2019. Liu stated that the association should “… continue to expand its membership … further establish contacts with overseas students, experts, scholars, entrepreneurs and people from all walks of life, … attract more overseas students to return to China to start businesses in Henan province, … implement the decisions from the central, provincial, and municipal party committees, and take the work of overseas students as a new focus for united front work.”

In August 2016, the General Office of the Central Committee issued the “Opinions on Strengthening the Development of the European and American Alumni Association.” The “Opinions” show that the first major role of the European and American Alumni Association is to “establish a database of returned overseas students and receive timely updates about the returned overseas students.” Then it is to “create a think tank including the overseas students. Finally it is to use these people to carry out civil diplomacy and serve the Belt and Road initiatives.

A separate document that The Epoch Times obtained contains a list of 343 returned overseas students in Nanyang city of Henan province. They are currently working in colleges and universities, scientific research institutes, medical institutions, party and government agencies, financial institutions, and private enterprises. The list contains detailed information including their names, current employment and positions, date of birth, ethnicity, hometown, academic degree, political status, number of years on the job, countries where they have studied, institutions and majors, years of study, the year of their return to China, their social position, home address, contact information, and more. Also, among the 343 names, 129 are Communist Party Members.

Source: The Epoch Times, August 14, 2020
https://www.epochtimes.com/gb/20/8/14/n12330248.htm

China State Media Says Military Exercise over Taiwan not Impossible

On August 18, 2020, the Chinese Communist Party mouthpiece China Central TV reported that, at the end of U.S. Secretary of Health Azar’s visit to Taiwan, the Eastern Theater District of the People’s Liberation Army (PLA) announced that it had organized actual combat exercises in the Taiwan Strait and on the northern and southern sides of the Taiwan Strait and made it clear that it was a necessary action for the current security situation across the Taiwan Strait and the maintenance of national sovereignty.

The state media claimed that, as a result of the China military “showing its muscles,” the United States immediately announced the withdrawal of the USS Ronald Reagan from the East China Sea.

“Today it is an exercise in the Taiwan Strait and on the north/south sides of the Strait. Tomorrow it is not impossible to carry out a large exercise around Taiwan Island or even an exercise over the Taiwan Island. The strength, confidence, and determination of the People’s Liberation Army will determine that once the ‘reunification by force’ is triggered. ‘The first battle’ will be the ‘final battle.’”

Source: The Paper Times, August 18, 2020
https://m.thepaper.cn/wap/v3/jsp/newsDetail_forward_8779848

China Reports Continued Growth of “Belt and Road” Projects

According to its state media People’s Daily, from January to July, China made 423.65 billion yuan (US$61.23 billion) in non-financial direct investments overseas, a year-over-year decrease of 2.1 percent. The value of newly signed foreign contracted projects was 855.67 billion yuan (US$123.66 billion), an increase of 4.3 percent. The completed business turnover was 491.26 billion yuan (US$71.0 billion), 10.5 percent lower than the same period last year. 159,000 workers were dispatched for foreign contracts. At the end of July, 644,000 Chinese workers were still abroad.

From January to July, China’s non-financial direct investment in “Belt and Road” countries totaled US$10.27 billion, a year-over-year increase of 28.9 percent, accounting for 17 percent of total outward investment in the same period. The contract value of newly signed projects in “Belt and Road” countries amounted to US$67.18 billion, and a completed turnover of US$40.43 billion.

Outward direct investment was sent mainly to leasing and business services, manufacturing, and wholesale and retail industries. Leasing and business services increased 18.1 percent and wholesale and retail investment 43.2 percent. The newly signed contracts in construction, petrochemical, and water conservancy construction projects have shown high growth.

Source: People’s Daily, August 21, 2020
http://paper.people.com.cn/rmrb/html/2020-08/21/nw.D110000renmrb_20200821_2-01.htm

Scholars Believe China’s Digital Currency a Return to Planned Economy

China’s state-owned banks such as the Agricultural Bank of China and China Construction Bank are testing the operation of digital currencies. Scholars believe that the Chinese model of the digital currency actually enables the central government to exert full control over personal wealth, which means returning to the era of a planned economy.

Si Ling, a financial scholar from Shandong University told Radio Free Asia (RFA), “The purpose of China’s vigorous promotion of digital currency is to manage its fiscal revenue in a more organized manner. With the deterioration of Sino-US relations and China’s foreign trade situation, the government will focus on fiscal revenue. In the past, many people used cash transactions to evade tax collection.”

Si believes that, if the Chinese government fully implements digital currency, “transactions will be completely under government supervision, which is conducive to the growth of government revenue. If digital currency is implemented, it may be a public-private partnership in the 21st century. In other words, private wealth can become public owned overnight, if the government chooses to do so.”

Dong Yongqi, a businessman from Shanxi province, told RFA that once the Chinese people start to use digital currency, their personal interests and their privacy will be infringed upon. “For the common people, it will do more harm than good. Most people read the propaganda and don’t understand the invasion of personal privacy that occurs with digital currency. The digital currency is the preparation for returning to the planned economy.”

Dong discussed the fundamental difference between China’s digital currency and that of Western democracies. “The digital currency of a free country by nature uses the blockchain technology and is decentralized, but our country’s digital currency has been centralized. The central bank is in charge.”

Chinese economist Hu Xingdou told RFA that China’s so-called digital currency is not a digital currency in the real sense: “It should be called electronic currency. It is very different from digital currency in terms of privacy and traceability. In other words, digital currency protects personal privacy. Other people, even the government, control no information.”

Caijinglengyan, an overseas social media account, commented that China’s digital currency is to prepare for the planned economy! Its characteristic is the control over currency use and material distribution. One can consider digital currency such as food stamps, meat coupons, travel passes, transportation documents, and permits for big-ticket purchases in the digital age.

Source: Radio Free Asia, August 17, 2020
https://www.rfa.org/mandarin/yataibaodao/ql1-08172020060447.html

CCP Offers High Monetary Awards to Those Who Report on Banned Religious Groups

Bitter Winter, a media focusing on the Chinese Communist Party’s (CCP’s) human rights violations, reported that, in the past several months, several provinces in China have offered monetary awards, some even as high as 100,000 yuan (about US $14,000), to encourage people to report on religious groups that the CCP has banned, including Falun Gong, the Church of Almighty God (CAG), the Shouters, the All Sphere Church, and others. The CCP calls these religious groups “Xie Jiao,” or cult in English.

The CCP suppresses these groups because they refuse to submit to the CCP’s control, they have grown rapidly, and they have a large number of members, which the CCP views as a threat to its rule. The CCP charges members of these groups as criminals, according to Article 300 of the Chinese Criminal Code, and can sentence members to three to seven years in prison.

Zouping City, Shandong Province: In July, the Political and Legal Affairs Commission of Zouping City adopted its “Award-winning Reporting Measures for Cracking Down on Xie Jiao.” Anyone who reports on CAG members or Falun Gong practitioners may receive a maximum award of 2,500 yuan.

According to the Measures, the scope of the behavior being reported includes using the Internet to produce and disseminate the materials of the above-mentioned religious groups; producing and disseminating religious leaflets, pictures, slogans, newspapers, and publications; hanging religious banners and posters in public places; and publishing and printing publications that preach religion.

Hainan Province: On June 15, the Public Security Department of Hainan Province issued the “Notice on Rewarding Those Who Report Information on Xie Jiao Illegal and Criminal Activities,” offering a maximum reward of 100,000 yuan.

Guangdong Province: On May 1, the Public Security Department of Guangdong officially adopted the “Trial Measures for Rewarding Reports Involving Xie Jiao Illegal and Criminal Activities,” offering a maximum reward of 100,000 yuan. Nanfang Daily reported on June 17 that several Falun Gong practitioners from Guangdong Province were reported and arrested for preaching Falun Gong or distributing Falun Gong information cards to local residents during the epidemic.

The Inner Mongolia Autonomous Region: A local official told Bitter Winter that, in October last year, the local government offered a maximum rewarded of 10,000 yuan for religious members and 50,000 yuan for out-of-town missionaries, once the missionary is arrested.

Nanjing City, Jiangsu Province: A believer of the Three-Self Church, a CCP controlled church system in China, told Bitter Winter that in mid-June, at the conference for local Religious Affairs Bureau officials and National Security Brigade captains, the CCP issued a document demanding a crack down on the CAG in three consecutive years and asked Three-Self believers to report CAG members.

To incite as many as possible to participate in the campaign to suppress banned religious groups, in addition to offering high monetary awards, the CCP also conducts omnipresent anti-xie-jiao propaganda campaigns across China.

During the past few months, despite the epidemic outbreak, the CCP has continued to arrest members of the banned religious groups.

Source: Bitter Winter, July 30, 2020

CCP Offers High Monetary Awards to Those Who Report on Banned Religious Groups

4 Hearts in 10 Days: China’s ‘On Demand’ Organ Bank Raises Concerns of Forced Harvesting

Recently, The Epoch Times reported a few “unbelievable” organ transplants in China.

Sun Lingling, a 24-year-old Chinese national, fell ill in Japan with a rare autoimmune disease that led to irreversible heart damage. In mid-June, her medical team flew her to China’s Wuhan Union Hospital on a chartered flight. The Chinese doctors gathered four matching hearts in the course of 10 days and used the last one to conduct the surgery. Sun recovered and was able to eat on her own.

Chinese newspapers reported Sun’s story with dramatic headlines, such as “A life or death race.” The Chinese embassy in Japan, which arranged Sun’s transportation to Wuhan, called the surgery “legendary” and touted it as a show of China-Japan friendship and cooperation.

Sun’s first matching heart came on June 16 from Wuhan, but doctors found the health condition not up to par and gave it up. The second heart came from nearby Hunan Province three days later, but Sun developed a high fever by then and could not have the surgery. On June 25, doctors got two more hearts: one from a female in Wuhan, and another one from a male in Guangzhou Province. The Chinese media report said they chose the latter because it had “better heart functions.”

The willingness to donate an organ is low among Chinese. Even in a country with a large base of those willing to donate, receiving four matching heats in 10 days is unusual. A professor at the Surgery and Heart Transplantation Department, Tel Aviv University, Israel, said Sun’s case is “beyond explanation.” “Rather, it follows an ‘on demand system.’”

There are more of these “unbelievable” cases.

China has also performed at least six double-lung transplants on COVID-19 patients since late February, at least two of which took place in Wuhan. The donors of both lungs, of course, could not survive. Chinese hospitals gave little information about where the organs came from.

In his book Bloody Harvest, David Kilgour, a former Canadian lawyer and member of the Canadian parliament, cited a Taiwanese organ tourist who was provided with eight kidneys during his two separate trips to Shanghai over the course of eight months—until his body accepted the final one.

There have been investigations including from the U.S. Congress and the E.U. Parliament indicating that the Chinese Communist Party (CCP) has conducted forced organ harvesting, removing vital organs from prisoners of conscience who were still alive, and then selling these organs for profit.

In June 2019, the London-based independent People’s Tribunal concluded “beyond a reasonable doubt” that the Chinese regime was targeting prisoners of conscience for their organs. The main source of organs was practitioners of Falun Gong who the CCP has persecuted severely for the past two decades.

Such practices are indicative of a transplant industry that “has a large pool, or stable, of political and religious prisoners that are already tissue-typed for transplant,” said Ethan Gutmann, a China analyst who authored the book “The Slaughter” about China’s illicit organ trade. He said Sun’s case exemplified the problems with the country’s transplant industry.

Source: The Epoch Times, August 11, 2020
https://www.theepochtimes.com/4-hearts-in-10-days-chinas-on-demand-organ-bank-raises-concerns-of-forced-harvesting_3457910.html