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HKET: U.S. Reconnaissance Aircraft Challenged China’s Bottom Line

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that U.S.-China tensions just intensified in the South China Sea, right after the trade meeting got postponed for one month. According to the surveillance data that Beijing University’s South China Sea Strategic Situation Probing Initiative (SCSPI) released, on August 15, the U.S. Navy EP-3E Reconnaissance Aircraft reached the closest point of 50.19 nautical miles (around 93 kilometers or 58 miles) from China’s Canton Province. SCSPI also identified that another EP-3E “potentially” entered Taiwan’s airspace. The SCSPI platform summarized that, in three days, the U.S. dispatched seven P-8A, P-3C, RC-135 or EP-3E aircraft to the region. Taiwanese media described this as “testing China’s bottom line.” In the meantime, according to an announcement from the U.S. Navy, the USS Ronald Reagan aircraft carrier returned to the South China Sea for exercises, joined by the USS Antietam, the USS Mustin and the USS Rafael Peralta cruisers as well as the Fifth Carrier Aircraft Wing. The USS Ronald Reagan aircraft carrier just had two exercises with the USS Nimitz aircraft carrier last month. The Chinese military called these activities a “major threat” to the Taiwan Strait area.

Source: HKET, August 16, 2020
https://bit.ly/3h3dF5O

Taiwan: CCP’s Response to U.S.’s Taiwan Visit and Drone Sale

The United Stated made two major moves regarding Taiwan. The first was that, on August 9, 2020, Secretary of Health and Human Services (HHS) Alex Azar visited Taiwan and, on August10, met with Taiwan President Tsai Ing-wen. This is the highest ranked U.S. official to visit Taiwan. The second one was that the U.S. and Taiwan are in negotiation for the U.S. to sell Taiwan at least four MQ-9B SeaGuardian surveillance drones which have a range of 6,000 nautical miles (11,100 km).

China’s Foreign Ministry issued a standard protest. People’s Daily and Xinhua didn’t comment much on either event, but Huanqiu and some other media commented on it, either cursing the U.S. or trying to downplay the event.

#1: On August 5, Wang Wenbin, Spokesperson for the Foreign Affairs Ministry, stated at the press conference, that China urges the US to abide by the one-China policy and the provisions of the three Sino-US Joint Communiqués, to stop all forms of official exchanges between the U.S. and Taiwan, to handle Taiwan-related issues carefully and properly, and to refrain from sending any wrong signals to the “Taiwan independence” forces so as to avoid serious damage to Sino-US relations.

On August 5, Ma Xiaoguang, a spokesperson for the Taiwan Affairs Office of the State Council, stated at a press conference, that it is very dangerous for the Democratic Progressive Party authorities to collude with foreign countries and willingly play the role of a U.S.’ pawn.

On August 5, Lu Xiang, an expert on American issues at the Chinese Academy of Social Sciences, told the Global Times reporter that in 2000 and again in 2014, the U.S. had sent high-ranking officials (Department of Transportation and Environment Protection Agency) to visit Taiwan. They were sent during those two President’s second terms when they no longer considered re-election. This time, the HHS Secretary ranked higher than those two who were sent previously, based on the order of succession of Department heads to take the president’s seat if the current President is unable to perform his duties. In addition, Trump sent him to Taiwan in his first presidential term. This showed that Trump is gambling. Under the Coronavirus pandemic and economic pressure, Trump does not know how to play the chess game anymore. He just throws chess pieces onto the board. Now he has run out of pieces and throws bricks instead. (Global Times)

#2: Global Times said there was a huge controversy and debate in Taiwan regarding Azar’s visit. It said that some Taiwan netizens furiously claimed that Azar would put Taiwan into two bad areas: the pandemic (brought from the U.S.) and a crisis over the strait (between Taiwan and China). (Global Times)

#3: The Taiwan Strait Net commented that “jointly fighting the pandemic” is just a cover (for Azar’s visit). The U.S. has only one “strategy” to fight the pandemic: Blame China. Taiwan’s “magic operation (against the coronavirus)” was nothing but avoid testing. It said that quite a few people were worried, “(Azar) came from the U.S.? Shouldn’t he be quarantined?” (Taiwan Strait Net)

#4: Sina commented on the U.S. selling drones to Taiwan. “As the presidential election is coming up, the political in-fighting in the U.S. has intensified. Some politicians in the U.S. view playing the ‘Taiwan card’ as a measure that is low cost and has a quick return. However, playing the “Taiwan card” shows the U.S. lacks self-confidence and worries about its China policy. (Sina)

#5: Global Times said that some Taiwan netizens identified this drones transaction as Taiwan paying a “protection fee” to the U.S. “In the American’s eye, sending the HHS Secretary over to bring back $600 million is definitely worth it.” “The U.S. just takes Taiwan as an ATM machine.” (Global Times)

#6: Back on May14, 2020, Global Times commented on Taiwan’s purchasing 4 MQ-9 Reaper drones as not getting enough for the mainland to shoot down and claimed that these drones are nothing but target drones to be killed. (Global Times)

Related postings on Chinascope:

Chinese Consulate in Houston Intervened in US Political Movement

Radio Free Asia (RFA) published an article explaining the reason that the U.S. closed China’s Consulate in Houston.

The article stated that the U.S. has known that the staff members at the consulate were conducting suspicious activities, but, for a while, it did not take any action. The Second Department of China’s People’s Liberation Army (PLA), which is the PLA’s intelligence unit, sent staff members from a large network company, with fake IDs, to China’s Consulate in Houston. Those technicians used a large video platform’s backend data to identify people who might participate in the Black Lives Matter (BLM) and ANTIFA’s protests and then created and sent them customized videos on how to organize riots and how to do promotions.

The purpose was to “weaponize” big data technology. It delivered relevant materials precisely to those people who were most likely to participate in the protests, while other people could not even find those videos.

RFA did not spell out the company names. A Twitter account said the technicians were from Huawei and the video platform they used to identify candidates and push videos to was TikTok.

Sources:
1. Radio Free Asia, August 7, 2020
https://www.rfa.org/cantonese/news/ear/ear-straw-08062020081345.html
2. Twitter, @Raymond999USA

LTN: U.S. Businesses Consider Leaving Hong Kong

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, according to a member survey that the American Chamber of Commerce conducted in Hong Kong, around 53 percent of its members are considering leaving Hong Kong in the future, either near-term or mid-term. The survey was designed specifically to measure the impact of the Hong Kong National Security Law and the U.S. sanctions that followed. The survey sampled a total of 154 member companies of the Chamber. Most (55.84 percent) of the members recognized the long-term competitiveness of the Hong Kong based U.S. companies to be the top priority to evaluate. According to undisclosed sources, after the new law and the new U.S. sanctions, most of the “high net-worth individuals” in Hong Kong have not yet moved their money out of the city. They are still observing and evaluating the changes on local asset prices and the potential long-term business environment under the Mainland’s control. However, many of the wealthy people have completed the preparation work for a swift money move, such as opening off-shore bank accounts, obtaining overseas passports, and other means.

Source: LTN, August 13, 2020
https://ec.ltn.com.tw/article/breakingnews/3259577

China’s Summer Grain Acquisitions Fell, but State Reported Grain Harvest Was “Highest in History”

A government report showing the progress of summer grain acquisitions, released on Wednesday August 12, showed that wheat purchases in regions including Hebei, Jiangsu, Anhui, Shandong, and Henan dropped by 18 percent. However, the state media in Jiangsu and Henan announced “good news.” The media claimed that the summer grain harvest “stayed at the highest level in history.”

In the past few months, disastrous events have occurred in major agriculturally productive regions in China and crops have seen severe damage. However, Zhou Xuewen, the deputy Minister of Emergency Management and deputy Minister of Water Resources, boldly predicted at a recent press conference that the year 2020 will be a great year of harvest. He stated, “The year of flooding is often the year of harvest and will be the harvest of (double-crops and) late rice. Why? The water conditions are better, and the soil is fertile. Our disaster relief measures and our post-disaster recovery and reconstruction, along with our strengthened restoration and planting management, as well as some technologies being used, mean that I don’t think food will be affected this year.”

The website of the National Food and Strategic Reserves Administration published the progress of the summer grain purchases. As of August 5, the total purchase of wheat in the main producing areas was about 42.85 million tons, a drop of about 9.38 million tons, or 18 percent, on a year-on-year basis.

Between January and July, China suffered from the COVID-19 pandemic and severe flooding. Hubei, Anhui, and parts of Jiangsu were flooded. However, state media in those regions claimed that there was a grain harvest. The Jiangsu survey team of the National Bureau of Statistics released data on July 14 showing that the total output of summer grain was 25.2 billion jin (12.6 million tons), an increase of 3.6 percent over the previous year. The Henan team released data on July 17, showing that the total output of summer grains in the province reached 75.1 billion jin (37.5 million tons), around the highest level in history.

He Huiling, a farmer in Luoyang, Henan, told RFA that the drop in the purchase of summer grains is related to the reduction in grain production and the over-exploitation of arable land. “Excessive (real estate) development and excessive land acquisition have left many people with little land to grow crops. Farmers make a living by purchasing food. Many of our local lands have been confiscated.”

Another villager in Nanyang, Henan, told RFA that he does not have any residual food at all. The central government is advocating food conservation because it is worried about a food shortage, “Recently the central government has spoken out about saving food. In our hometown, there is no food in the house. The main reason is that there are fewer farmers. Another reason is the reduction in arable land.”

Source: Radio Free Asia, August 13, 2020
https://www.rfa.org/mandarin/yataibaodao/jingmao/ql1-08132020062337.html

Secret Document about Hiding Party Building in Overseas Offices

The Epoch Times obtained exclusive information from a secret document that the China National Petroleum Corporation (PetroChina) issued. The document addresses how the Chinese consulates have been playing active leadership roles in managing the development of the party in all of the company’s overseas offices. Petro China recently asked that all work of this type go underground.

Below is a translation of the notice:

Notice on Further Implementation of Requirements for Overseas Party Building.

With the recent U.S. and other western countries containment of the CCP, there have been incidents in Australia in which the Chinese personnel’s mobile phones, computers and other personal items were searched and taken away under the claim that they could contain materials about how to develop the CCP. The CCP has therefore asked the respective overseas agencies to destroy or transfer sensitive documents immediately. Based on the directives from senior management, a translation of the notice regarding the execution of the party’s development work in foreign offices is below.
1. Party cells in foreign offices are required to be active in their acceptance of the leadership of the party committee at the consulate, particularly for the Malaysia and Singapore offices in Southeast Asia and Saudi Arabia in the Middle East. They need to report their work to the consulate at least once a year. They also need to report major changes in contracts and personnel, and major events.
2. Foreign offices should sort out potential risks, study and develop emergency response plans, and establish emergency contact channels with the consulate and the company headquarters back in China. Offices in Australia and Canada must inform their consulate of their handling of urgent documents. Party members and cadres must strictly guard party secrets when a foreign country is doing an investigation of their work. This is an iron-clad rule.
3. The overseas party development work must be strictly safeguarded along with information about the party’s organizational structure, membership, member’s responsibilities, activities and internal documents. They must understand the distinction between internal and external information and must be flexible while maintaining confidentiality.
4. Overseas party cells need to plan party activities effectively based on the conditions in each situation. They should also establish flexible ways for the members to pay party membership fees and determine their meeting frequencies.
5. Overseas party cells should not publish their activities in social media including Weibo and Wechat. They should not publish talks and articles about party development work and shouldn’t accept media interviews. They should not transmit information that contains information about party membership, organizational structure and party development work using unsecure channels such as Wechat or email. They should not display the party flag, wear the party emblem, or have a bulletin board displaying party development work at their company location.
6. They must temporarily suspend the requirement for record keeping of overseas party development activities including performance assessments and inspections.
7. They must strengthen the management of highly confidential party development documents in their offices in countries such as the U.S., U.K, Australia, Canada and New Zealand. All the relevant electronic records stored in devices such as computers, cell phones, external hard drives, flash drives, and CDs must be deleted. Paper documents need to be destroyed. For any important records that can’t be destroyed, they must be sorted and stored in a safe place or turned over to their home office in China or the local consulate for storage.
8. All related personnel must delete PetroChina party development apps from their phones. A separate communication will be sent out in regard to the collection of the party membership fee.

Source: Epoch Times, August 14, 2020
https://www.epochtimes.com/gb/20/8/14/n12332073.htm

CCP Controlled Media Attacked Zuckerberg

The U.S. Congress held a hearing on the how the Chinese government steals U.S. Technology. Mark Zuckerberg, the co-founder of Facebook, was the only CEO among the four at the hearing who stated firmly that China definitely steals U.S. technology.

As a result, an article criticizing Zuckerberg was published widely on Chinese media. The Chinese Communist Party (CCP) controls all media in China. The article was titled, “This ‘TikTok Slaughter Battle’ completely tore off Zuckerberg’s mask as the ‘Chinese people’s good son-in-law.’” Since the parents of Zuckerberg’s wife Priscilla Chan were Chinese refugees who fled Vietnam, Beijing had been calling Zuckerberg “the Chinese people’s good son-in-law.”

The article said that Mark Zuckerberg (of Facebook), Tim Cook of Apple, Sundar Pichai of Google, and Jeff Bezos of Amazon participated in the hearing remotely.

A congressman asked, “Do you think that the Chinese government steals U.S. technologies?”

Cook, “No.”

Pichai, “No.”

Bezos, “I only heard it on newspaper, but it didn’t happen to Amazon.”

Zuckerberg, “I believe that China’s stealing technology from U.S. tech companies is well-documented.”

The article then said that Zuckerberg had tried many things for several years to get Beijing to let Facebook enter China, but after he could not do it, he revealed his true face and, last year, became hostile towards China.

The article blamed him for having a double standard when closing several Facebook accounts, which Zuckerberg said to be connected to the Chinese government, for spreading “fake news” about Hong Kong; for using the “China threat” theory to promote his virtual currency; and for trying to destroy TikTok, his rival.

Source: 163.com, August 4, 2020
https://news.163.com/20/0804/14/FJ6NPPE60001899O.html

Manager of Huarong Needed One Hundred Houses to Store All His Graft

The case of Lai Xiaomin, ex-chair of the China Huarong Asset Management Co., Ltd. (CHAM), one of the largest financial asset management companies in the country, opened a session in a court in Tianjin on August 11. Lai was charged with bribery, corruption and bigamy. Lai pleaded guilty and repented in court.

It was alleged that, between 2008 and 2018, when Lai Xiaomin held the positions of the director of the General Office of the China Banking Regulatory Commission (CBRC) and the Chinese Communist Party (CCP) secretary and chair of CHAM, he illegally accepted property with a total value of more than 1.788 billion yuan (US$ 0.26 billion).

This figure may have broken the record for the amount of corruption among all indicted Chinese officials. Pan Lu, a former teacher from Suzhou, gave a vivid description of the 1.788 billion yuan, “The money weighs 20 tons in 100-yuan bills. A one-hundred-square-meter house is not big enough to store that much cash. A dedicated villa is needed.”

China’s Caixin Media reported that there are three “one hundreds” in Lai’s case, including more than one hundred houses, one hundred contacts (with high-up officials), and one hundred lovers. In addition, the investigators found 270 million yuan (US$ 38.9 million) in cash in Lai’s residence, setting a record for the amount of cash seized from corrupt personnel.

Pan believes that the Lai Xiaomin corruption case is not unusual, and pales in comparison with the amount of corruption in China’s red families, the families of top CCP officials. “We know that the amount of corruption in the families of CCP Standing Committee members has reached astronomical figures. Lai was simply sacrificed by the regime to show that the CCP has the ability to fight corruption. One should not believe that the CCP is bold and decisive in fighting corruption just because of Lai’s case.”

Source: Radio Free Asia, August 11, 2020
https://www.rfa.org/mandarin/yataibaodao/jingmao/hj-08112020141839.html