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China’s Reaction to Trump’s Election Win

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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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Former Party Official Laid out Six Changes that China Should Be Prepared for in Facing World Challenges

On June 22, a former deputy minister of the CCP’s International Liaison Department published an article entitled, “Proactively Responding to Changes in the External Environment.” It was in the China Social Science News magazine that the Chinese Academy of Social Sciences publishes.

The article laid out six changes for which China should be prepared. They are as follows: 1.) The deterioration of Sino-US relations and the full escalation of conflict; 2.) A decrease in external demand and the disruption of industrial supply chains; 3.) Adjusting to the new norms under COVID 19 and the long-term coexistence of viruses and humans; 4.) Detaching from the dominance of the dollar and disconnecting the Chinese Yuan from the dollar; 5.) The outbreak of the global food crisis; 6.) The resurgence of international counter-terrorism forces.

The article stated that China is facing unprecedented challenges and quoted Xi Jinping’s speech in which he stated that the CCP must “adhere to bottom line thinking and be mentally and physically prepared to deal with changes in the external environment.”

Sources:
1. hk01.com, July 4, 2020
https://www.hk01.com/議事廳/493885/中聯部原副部長-要做好中美鬥爭全面升級-人民幣與美元脫鉤準備

2. China Social Science Network, June 22, 2020
http://www.cssn.cn/gd/gd_rwhd/gd_ktsb_1651/gjrlmygttsrjzd/202006/t20200622_5146140.shtml?COLLCC=930243883&

Briefings | | |   Government/Politics

Swarms of Locusts Invaded Guiling City of Guangxi Zhuang Autonomous Region

On June 30, a video posted on Weibo and Twitter showed that, overnight, a large number of locust swarms invaded Quanzhou County, Guiling city of Guangxi Zhuang Autonomous Region. Locust swarms destroyed the crops and covered over the farmers’ clothes. People posted comments stating that, judging by experience, this is the prelude to a large-scale outbreak of locust plagues. If it is not controlled in time, the consequences will be worrisome. Another post on Weibo reported that the locust swarms also spread to more towns and villages in Quanzhou County. It was estimated that it hit at least 100 acres of the farmland in the Town of Shaoshui and all of the crops were decimated.

The local official has not issued any notice about the locust swarms and Guiling City of Guangxi province was recently hit by flooding also.

Source: Liberty Times, July 2, 2020
https://news.ltn.com.tw/news/world/breakingnews/3215318

Briefings | | |   Economy/Resources

RFA: Farmers Offered Incentives to Produce More Grain

Radio Free Asia (RFA) reported that according to a document the Chengdu Municipal Agriculture and Rural Bureau issued, farmers are being encouraged to stop producing fruit and cultivating gardens and to start producing rice grains instead. They are promised to receive 3,000 yuan (US$425) per acre in compensation if they switch. Local farmers said that the fruit and garden industries in Chengdu are well developed. The profits are more than several times or even tens of times more than the profit from growing grain. The same request was reported in Hubei province, but the farmers refused to make the change. The fact that the officials made such an advantageous request to the farmers suggests that the country could face grain shortage.

One resident from Chongqing city told RFA that China is facing crises and political turmoil. The Central Administration wants to put pressure on the US by stopping the import of American grains, but they are facing a grain reserve shortage at the same time. Chinese people can endure any adversity as long as there is a sufficient food supply, but if that supply can’t be guaranteed, then all the official measures to maintain stability could fail. There have been reports that, in a few state level grain reserve warehouses, sand was found under the grain. Last month, two local grain warehouse managers committed suicide. China is facing a severe grain shortage.

Source: Radio Free Asia, July 2, 2020
https://www.rfa.org/cantonese/news/food-07022020065635.html

Briefings | | |   Social Stability

Internal Document Revealed Irregularities in China’s Organ Transplant System

An internal document on China’s organ transplant system shows 21 major problems under 8 categories. The document is titled, “China Organ Transplant Response System (COTRS) Data Verification Report (Zhejiang Province).” (The Report) covers the government’s COTRS data involving medical institutions in Zhejiang Province during the period from January 1, 2015, to April 13, 2018. Established in 2011, the COTRS is meant to be a national organ allocation mechanism for transplant, with organ donations from voluntary organ donors as the only legitimate source.

Of the problems discussed in the Report, livers and kidneys of unknown origin were used in transplants in Zhejiang. These accounted for 7.82 percent and 4.51 percent of the organs of illegal origin in the country.

The Report identified cases where the transplant occurred before the allocation and suspected distribution outside COTRS and manipulation of the flow of organs.

The Report found that the number of “special situation registrations” was too high, indicating that the hospital as an organ procurement organization (OPO) may have abused the procedure possibly involving a  suspected manipulation of the allocation process. According to the Report, “special situation registration” is only applicable to organ allocation outside the organ allocation system in order to prevent the waste of organs if a force majeure occurs during organ allocation.

The Report identified 135 cases where the OPO hospital tampered with donor data one hour prior to the distribution of the organ.

The Report discovered a large number of cases where the transplant hospital changed the recipient’s data one hour before the transplant. In some cases, new recipients were added to the waiting list and received the available organ. The Report considered these activities to be a suspicious manipulation of the flow of organs.

The Report found that about 10 percent of the livers disappeared without an explanation in COTRS.

Source: Epoch Times, July 3, 2020
https://www.epochtimes.com/gb/20/6/16/n12190627.htm

 

Briefings | | |   Social Stability

Beijing Passed a Far-reaching Hong Kong National Security Law

On June 30, China passed the Hong Kong national security law, which went into effect immediately. The official Xinhua News Agency published the full text of the law. Four crimes now all carry a maximum sentence of life in prison.
The law is more far-reaching than most people expected.

A foreigner who exercises freedom of speech in a foreign country and advocates Hong Kong independence may be arrested in Hong Kong. As long as any of the “criminal acts or results” occur in the Hong Kong Special Administrative Region (HKSAR), it will be deemed to be a crime in Hong Kong. The law also applies to any Hong Kong permanent resident or a Hong Kong based company that commits a relevant crime outside of Hong Kong. For non-Hong Kong permanent residents outside Hong Kong, they are also punishable even if they commit the relevant crimes outside Hong Kong.

The Hong Kong national security law stipulates four crimes.

Separatism. The chief offenders are subject to life imprisonment or imprisonment of more than ten years. Active participants imprisonment may be between three and ten years, while others imprisonment will be less than three years.

Subversion. Any act of subversion shall be punishable by imprisonment of from less than three years up to life imprisonment.

Anyone who incites, assists, abets, or sponsors with money or other property the commission of the above two crimes can be sentenced to from less than five years to more than ten years in jail.

Terrorism. Those that cause significant losses can be sentenced to life imprisonment or imprisonment for more than 10 years. Lessor offenders may receive between three and ten years imprisonment. Propagating terrorism and inciting terrorist activities are also crimes and can be subject to imprisonment of less than five years or less than ten years.

Collusion with foreign countries or external forces endangering national security. Offenses include stealing, purchasing, and illegally providing state secrets or intelligence to foreign or overseas organizations and personnel. Offenses also include requesting relevant organizations or individuals to implement or conspire to implement, directly or indirectly accepting their instructions, control, and funding to support the implementation of five actions.

The five actions include conducting sanctions, blockades or other hostile actions against the HKSAR or China; manipulation and sabotaging of the elections, causing possible serious consequences; various illegal methods that trigger the hatred of the Hong Kong residents towards the central government or the HKSAR government that may cause serious consequences.

The HKSAR government will establish a new Committee for Safeguarding National Security (CSNSC), and Beijing will set up a corresponding Commission for Safeguarding National Security in Hong Kong (CSNSHK), headed by a vice minister of Public Security. For the first time, the national security law clearly stipulates that the CSNSHK, instead of the HKSAR, will exercise direct jurisdiction over the case under three circumstances: First, the case involves the intervention of foreign or external forces, making it difficult for the HKSAR to exercise jurisdiction; second, it involves a serious situation in which the HKSAR government cannot effectively implement the national security law; third, a situation where national security faces a major and real threat.

There are also other controversial stipulations in the national security law.

The work of the CSNSC is free from interference from any other agencies, organizations and individuals in the HKSAR government. The information is not disclosed and decisions made are not subject to judicial review.

The law emphasizes that neither the suspect nor the defendant shall be released on bail unless the judge has sufficient reason to believe that the suspect or the defendant will not continue to endanger national security.

The law stipulates that the Chief Executive of the HKSAR shall appoint a number of judges to handle crimes against national security. Anyone who has expressed words or committed deeds that endanger national security shall not be designated as a judge to hear national security criminal cases. During the appointment, if the judge has words or deeds that endanger national security, the qualification of the appointed judge will be terminated.

If there is any inconsistency between the local laws of HKSAR and the national security law, the provisions of the latter shall apply. The right to interpret the Hong Kong national security law belongs to the Standing Committee of the National People’s Congress.

Source: Central News Agency, July 1, 2020
https://www.cna.com.tw/news/acn/202007010006.aspx
https://www.cna.com.tw/news/acn/202007010005.aspx

Briefings | | |   Government/Politics

World Journal: Fitch Lowered Hong Kong’s Rating Twice

Well-known U.S. Chinese language newspaper, World Journal , recently reported that global ratings company, Fitch Ratings, has lowered Hong Kong’s sovereign rating twice since last September. The rating factored in the impact of the Hong Kong National Security Law that the central government imposed. Also aspects that were included in and influenced the rating were the risks in Hong Kong’s legislative system and the position that the United States has taken. If, in the future, local and international investors lose confidence in Hong Kong’s environment and its way of doing business, it is possible the rating could go down further. It is too early to draw a conclusion and the situation remains to be examined in the near future. Currently Hong Kong’s sovereign rating is only one step higher than Mainland China. It appears the Hong Kong society is steadily merging into Mainland China’s administrative system. However, the Chinese government said Hong Kong’s status remains very stable.

Source: World Journal, June 23, 2020
https://bit.ly/2A81KmS

Briefings | | |   Economy/Resources Geo-Strategic Trend

Lianhe Zaobao: The Canton Fair Ended with Signs of Risks

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported on China’s largest trade show. The China Import Export Fair (also known as The Canton Fair), just concluded on June 24. This Canton Fair was held online as a virtual fair. According to the official report, the Fair attracted buyers from 217 countries or regions. Around 26,000 domestic and foreign companies participated as suppliers. However, no official numbers on sales were announced, which is very unusual. Traditionally the Canton Fair host always announces the total turnover on the last day of the Fair. According to the spokesperson for the Fair, the outcome of this Fair demonstrated China’s export future is facing increased uncertainty, with “extremely complex and serious” risks and challenges. The Chinese suppliers are focusing on innovations in the areas of smart manufacturing, distribution channels, business models, and service systems. The spokesperson emphasized that the overall long-term trend of the Chinese exports remains positive and unchanged.

Source: Lianhe Zaobao, June 26, 2020
https://www.zaobao.com.sg/realtime/china/story20200626-1064203

Briefings | | |   Economy/Resources