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Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

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Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

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Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

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The CCP’s Performing Arts Troupes in the U.S.

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Divided Reactions in China as Students Wave Palestinian Flags After College Entrance Exams

During China’s national college entrance examination on June 7th, multiple exam sites witnessed students waving Palestinian flags and expressing support for Palestine after leaving the exam rooms. Some students even actively approached media outlets to voice their stance. Police officers were also seen confiscating flags from some students, though no punishments were reported.

This occurred at exam sites across multiple provinces, including Hunan, Henan, Shandong, Heilongjiang, Jiangsu and Jiangxi. Students raised Palestinian flags after exams, with some holding Chinese flags alongside. In Jiangsu, police confiscated flags from two students. At a youth music festival in Shaanxi, an audience member’s Palestinian flag was confiscated by security staff.

While no punishments of students were reported, the incidents revealed divides in Chinese society’s perception of the Israeli-Palestinian conflict. Some believed that students should prioritize Chinese domestic issues, while others saw the students’ flag waving as aligning with Beijing’s official pro-Palestinian stance.

The student flag-waving sparked divergent reactions online. A plurality of online commentators expressed views that, since Chinese state-run media have been severely criticizing Western support for Israel, the students’ expression of solidarity for Palestine is merely following the Chinese government media’s “safe” (politically-correct) stance. Some speculated that the students are not acting independently but rather that there are forces orchestrating these students’ actions behind the scenes. Overseas Chinese who are critical of the Chinese government took the opportunity to mock the students, suggesting that they should go protest in Gaza themselves.

Source: Central News Agency (Taiwan), June 10, 2024
https://www.cna.com.tw/news/acn/202406100181.aspx

Briefings | | |   Social Stability

Philippine Mayor Alice Guo Suspended Amid Allegation of Being Chinese Spy

Alice Guo (Guo Huaping), the 35-year-old mayor of Bamban City in Tarlac Province, Philippines, has been suspended from work after being accused of being a Chinese spy and of involvement in a scam operation. Alice Guo’s background is quite mysterious. In 2021, she suddenly emerged and registered to run for mayor of Bamban City. She won the election smoothly.

The dynamics of Chinese influence over Philippine politics have changed, as relations between the Philippines and China worsened in recent years.

There are many immigrants from Fujian Province, China, in the Philippines, and Fujianese leaders have significant influence there. During presidential elections in the Philippines, the Chinese diaspora leaders and businessmen spend significant amounts of money financing the campaigns of their preferred politicians, as having their preferred president in office results in several years of prosperity for their businesses. They maintain close ties with the Chinese Communist Party’s Department of United Front Works as well as with China’s diplomatic and intelligence departments; in the past these Fujianese diaspora leaders and businessmen have played key roles in the Philippines during moments that Beijing considers critical.

In March of last year, the Philippine police raided a location in Bamban which was disguised as a POGO site (a local term for an offshore gambling venue). The venue was actually a scam center; the police rescued nearly 700 individuals, including 202 Chinese nationals and 73 people from other countries, who had been forced into “online romance scams.” Alice Guo was found to own half of the land involved in the POGO operation, which was located right behind her office. Alice Guo owns a helicopter and a Ford Expedition SUV.

Source: Creaders.net, June 4, 2024
https://news.creaders.net/world/2024/06/04/2739029.html

Briefings | | |   Geo-Strategic Trend Government/Politics

Henan Province Massively Cuts Government Jobs

As China’s fiscal pressure remains unabated, local governments are seeking ways to reduce the number of “iron rice bowl” positions (secure government jobs).

In 2023, all Chinese provinces and municipalities (except Fujian Province) recorded budget deficits. Henan Province had an income of 451 billion yuan (US$ 62 billion) while its recorded expenditures reached 1.106 trillion yuan (US$ 152 billion), resulting in a deficit of 655 billion yuan (US$ 90 billion). The province has cut over 5,600 government positions in the past few years and will continue its efforts to cut more positions going forward.

Henan Province announced that, with the exception of schools and hospitals, it is planning to cut or consolidate at least 50 percent of government units, 30% of staffing positions, and 10 percent of fiscal funding for staffing positions. In principle, the government will no longer retain work units at the division level and below if they have fewer than 16 staff positions.

Source: Epoch Times, May 5, 2024
https://www.epochtimes.com/gb/24/5/5/n14241546.htm

Briefings | | |   Government/Politics

Xinhua Report: Middle East Battlefield Notes: Iraqi KFC Attacked

Xinhua published a report from the middle east named “Middle East Battlefield Notes: KFC in Iraq Attacked.” The following are the excerpts from the report.

Recently, attacks on American businesses have been occurring frequently in Baghdad, the capital of Iraq. On May 26, an explosive device was thrown at a KFC on Palestine Street. The next day, a group of masked men armed with guns and clubs vandalized a KFC in the Karada district. On the same day, another American restaurant, Chili House and Lee’s, was also attacked. In the early hours of May 30, a flashbang attack targeted a Caterpillar store in Baghdad. On the evening of June 3, angry protesters stormed the KFC on Palestine Street and vandalized another Chili House and Lee’s restaurant in a different district.

Analysts believe these American businesses have become targets of attacks because of the U.S.’ biased stance towards Israel in the latest round of the Israeli-Palestinian conflict. The U.S. has consistently supported Israel, refusing to adjust its policy or to acknowledge that Israel has crossed a “red line.”

“Since the outbreak of the Israeli-Palestinian conflict, the U.S. has been indulging Israel, continuously sending arms, and ignoring the fact that Gaza has become a hell on earth. How many more innocent lives must be lost before the US stops?” said Baghdad resident Ali emotionally to the (Chinese) reporter.

Since the outbreak of the Israeli-Palestinian conflict last October, large and small anti-American protests have been frequently occurring in Baghdad. Iraqi Islamic resistance organizations have launched hundreds of attacks on U.S. military bases in Iraq and Syria as well as on Israeli targets. There have been constant demands from the Iraqi government, militia forces, and the public for the withdrawal of U.S. troops from Iraq. After Israel attacked the Rafah refugee camp, Iraqi Shia religious leader Muqtada al-Sadr called for the closure of the U.S. embassy in Iraq and the expulsion of the U.S. ambassador.

The Iraqis’ anti-American sentiment is as hot as the current 45-degree Celsius heat in Baghdad. The KFC restaurants, instead of welcoming a bustling crowd of customers, have faced wave after wave of attacks by “protesters.” The U.S. government’s unjust stance has forced its businesses to pay the price.

Source: Xinhua, June 5, 2024
http://www.news.cn/world/20240605/22261cb6770b4c34954df0b15e1c8ce1/c.html

Briefings | | |   Geo-Strategic Trend US-China Relations

China to Accelerate Cross-Border e-Commerce Activity

Beijing aims to increase activity by cross-border e-commerce merchants in an attempt to buoy China’s economy by expanding the country’s exports.

China’s Ministry of Commerce spokesperson He Yadong stated on May 30th that the Ministry is working to finalize a policy titled “Opinions on Expanding Cross-Border E-Commerce Exports and Promoting the Construction of Overseas Warehouses.” The policy’s goal will be to accelerate the development of cross-border e-commerce.

In the first quarter of 2024, China’s total import and export volume for cross-border e-commerce reached 577.6 billion yuan (US$80 billion), an increase of 9.6 percent. Of this volume, exports accounted for 448 billion yuan, a 14 percent increase. Preliminary statistics from various regions indicate that China has over 120,000 cross-border e-commerce entities, more than 1,000 cross-border e-commerce industrial parks, and over 2,500 overseas warehouses with over 30 million square meters of storage.

Source: Xinhua, May 31, 2024
http://www.xinhuanet.com/tech/20240531/1426a7a71be64b72a79ee7fa467ef159/c.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Xinhua Denounces Lai Ching-te’s Statement on “Three Chains”

Xinhua News Agency published an article suggesting that the “three chains” statement in the inaugural speech by Taiwanese President Lai Ching-te was a blatant attempt to “seek (Taiwanese) independence” and “sell Taiwan’s interests to the United States.” In his speech, Lai Ching-te said that Taiwan holds a “strategic position in the ‘first island chain'” and is a “highlight of the ‘world democratic chain'” as well as “a key part of the global democratic supply chain.”

The recent Xinhua article stated that the “island chain” is an anti-China concept used to “contain China.” According to the article, the concept of a “world democratic chain” is a joke, as Lai Ching-te is the person least qualified to talk about democracy. The “global democratic supply chain” will drive Taiwan’s economy to a dead end; supply chains have never been about democracy but are rather about efficiency.

The article went on to say that Lai’s “three chains” statement completely exposes Lai Ching-te’s evil intentions of “seeking independence by relying on external forces” and “using democracy to seek independence.” It reveals his sycophantic attitude, acting as a pawn for external forces and aligning with the so-called “democratic camp.” It shows Lai Ching-te’s willingness to sacrifice Taiwan’s interests for American hegemony.

Source: Xinhua, June 5, 2024
http://www.news.cn/tw/20240605/0af665bf39b4403fb5bd3d944b4693db/c.html

Briefings | | |   Geo-Strategic Trend US-China Relations

Guangming Daily: EU Commission Delays Decision on EV Tariffs, EU Motives Differ From US

Guangming Daily published an article analyzing why the E.U. has delayed its decisions regarding tariffs on Chinese new energy vehicles (electric vehicles). The decision was originally scheduled to be announced on June 5. The E.U. first announced an anti-subsidy investigation into Chinese new energy vehicles last September. The U.S. imposed a 100 percent tariff on Chinese electric vehicles in May.

The Guangming Daily article analyzed U.S.-based and E.U.-based media articles related to electric vehicle tariffs, saying that the U.S. and the E.U. have focused on the issue from different angles. Guangming Daily first analyzed reports on Chinese new energy vehicles by two E.U.-based media outlets, Euractiv and POLITICO Europe, finding that their reports from the past month used keywords such as “vehicles,” “sector,” “companies,” and “manufacturing.” In contrast, U.S. media reports on the same topic emphasize keywords related to diplomatic relations such as “tensions,” “relations,” “conflict,” and “politics.”

According to Guangming Daily, the U.S. is particularly concerned with future leadership, while Europe is purely for interests and ideas. In reports on Chinese new energy vehicles, the most frequently co-occurring words in U.S. media are “leadership,” “dominance,” and “foreign.” In European media, the words most frequently associated with “competition” are “fairness,” “domestic,” and “autonomy.”

The article additionally commented that Europe needs to support its domestic enterprises, which in turn relies on the assistance of the Chinese market and Chinese investment. For Europe’s large automobile manufacturers, China remains their largest single market, with Germany being a typical example. Moreover, Chinese new energy vehicle companies establishing factories in Germany have introduced new technological collaborations in areas such as intelligent battery swapping, smart transportation, and autonomous driving. Automotive manufacturers in France, Spain, and other EU countries are also replicating the “German model” by cooperating with China.

Source: Guangming, June 5, 2024
https://world.gmw.cn/2024-06/05/content_37363429.htm

Briefings | | |   Economy/Resources Geo-Strategic Trend US-China Relations

HKET: China’s Investments in Europe Hit 13-year Low

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that China’s foreign direct investment (FDI) in Europe last year was only 6.8 billion euros, 300 million euros less than the previous year and the lowest figure seen since 2010.

The peak of China’s FDI in Europe (the 27 EU countries and UK) was 47.5 billion euros in 2016. Direct investments have been on the decline since then. Before the COVID-19 pandemic, Chinese FDI numbers reached 14.2 billion euros, and last year’s 6.8 billion euros in FDI were only about 14 percent of the peak value from 2016.

In the past, Chinese foreign direct investment was concentrated in the UK, France and Germany, referred to in China as “the Big Three.” In the past two years, however, Hungary has adopted a pro-China stance while Chinese direct investment in Hungary has substantially increased. Hungary became the largest destination of Chinese FDI funds last year, accounting for 44.1 percent of Chinese foreign direct investment.

Electric vehicles and their supply chains have become the most important Chinese foreign direct investments, accounting for 41 percent of China’s total FDI in Europe in 2022 and rising to 69 percent in 2023.

The decline in China’s direct investment in Europe will be partially counteracted by electric vehicle-related investment, though any near-term rebound in FDI may be insignificant. Affected by factors such as the weakening finances of Chinese companies, increased controls on Chinese investments by European countries, and tensions in China-EU trade relations, Chinese foreign direct investment in Europe is expected to continue to be sluggish.

Source: HKET, June 6, 2024
https://tinyurl.com/2s37eers

Briefings | | |   Geo-Strategic Trend