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China’s Pork Prices Soar in the Shadow of the Trade War

Since April, Chinese pork prices have risen almost every day. In the past few months they reached a new peak. According to the Chinese Ministry of Agriculture last Friday (August 23), the wholesale price of pork had increased by 26 percent from the previous month, to 30.79 yuan (US$4.3) per kilogram.

Chinese officials say the rise in the price of pork is due mainly to African swine fever. However, this round of price increases is inseparable from the ever intensifying US-China trade war. From February to May of this year, Chinese buyers cancelled a total of 4,513 tons of U.S. pork orders. It was not until the beginning of this month that the purchase of 10,200 tons of U.S. pork resumed. At present, China imposes a 62 percent tariff on U.S. pork.

The government is taking measures to curb the rise in the price of pork. 29 provinces have introduced various forms of pork subsidies. Some people question whether China has returned to the era of economic shortage that existed under Mao.

Some people expressed their willingness to share the same pain that the country is suffering. “The restrictions on the purchase of pork are good. There is little the people can do when the country is in a disaster. It is not impossible to live while eating less pork,” said a Sina Weibo user. “I believe there are 1.4 billion people who are willing to suffer with the country.”

Not every Chinese agrees. One netizen said, “For the people to live and work well is the greatest counter-measure (in the trade war). Whether the economy has problems or not, there is only one standard: whether the people are poorer or richer, not whether the government is poorer or richer.” Some people even said, “Counter measures? The people are just cannon fodder.”

China is the world’s largest consumer of pork. The Chinese eat an average of 700 million pigs a year.

Source: Voice of America, August 27, 2019
https://www.voachinese.com/a/china-s-hard-line-rhetoric-on-trade-war-in-the-midst-of-rising-pork-price-20190827/5057760.html

BBC Chinese: One Belt One Road Challenged in the Kashmir Crisis

BBC Chinese recently reported that, due to the constitutional status change of Indian-controlled Kashmir, that region has been under military lockdown with nearly no public communication. The flagship project under China’s One Belt One Road initiative, namely the China–Pakistan Economic Corridor, is being challenged as well. The local residents of Indian-controlled Kashmir were strongly against the move and the unstable situation immediately impacts the interests of the neighboring countries – Pakistan and China. The geopolitical situation introduced uncertainty to the China–Pakistan Economic Corridor, which passes through Pakistani Kashmir. India is the only large country in South and Southeast Asia that refused to join the One Belt One Road initiative. The recent Indian move also touched a portion of the territory claimed by China. Some observers expressed their belief that part of India’s mission is to add pressure to China’s One Belt One Road expansion plan.

Source: BBC Chinese, August 12, 2019
https://www.bbc.com/zhongwen/trad/world-49322250

Chinese Ministry of Finance: Government Should Lead in Financially Tight Days

Well-known Chinese news site Sina recently reported that Liu Kun, the Chinese Minister of Finance, represented the State Council and delivered a Report to the People’s Congress on the budget and China’s spending status. The Report indicated that the central government will lead the way to work hard to reduce its operational costs and that not a single penny can be wasted. Liu also called for a massive tightening-up on the local government level. The Report listed the key areas in which the entire government system should cut spending, including office operations, logistics, domestic conferences and travel spending, hospitality, and international business trips. The central government is aiming at a ten percent budget reduction and local governments are required to deliver a five percent cut and should attempt to reach the ten percent mark. More regulations on waste control will be established and maintained for the long term.

Source: Sina, August 24, 2019
https://finance.sina.com.cn/china/gncj/2019-08-24/doc-ihytcern3202168.shtml

DW Chinese: New South Wales Canceled its Confucius Institutes

Deutsche Welle Chinese recently reported that Australia’s most populous state – New South Wales – just canceled all of its projects under the umbrella of Confucius Institute in its 13 public middle schools and elementary schools. The state government explained that the Confucius Institute projects mainly represent inappropriate foreign influence, although no foreign government interference was discovered. Typically, Confucius Institute partner up with schools. However, in New South Wales, the department of Education is the direct partner. This is the only instance globally where this has occurred. At this point, colleges in New South Wales with Confucius Institutes have not been impacted. China is Australia’s largest trade partner, and Australia has been trying to enhance its Chinese language education to adjust to its trade needs. However, in recent years Australia has been keeping a distance from China due to national security concerns. New laws have been introduced to regulate foreign relations. The Confucius Institute is suspected of being a foreign government agent since a branch of the Chinese central government runs it directly.

Source: Deutsche Welle Chinese, August 23, 2019
https://p.dw.com/p/3OMdZ

Cathay Pacific Fires another Employee for “Upholding the Basic Law”

After firing Rebecca Sy, the head of Cathay Dragon’s Flight Attendants Association, Cathay Pacific issued a statement on August 23, saying that, “it fully supports the upholding of the Basic Law and all the rights and freedoms afforded by it.”

Two days ago, Cathay Pacific already warned its employees that even if they publish or share posts on social media or leave online messages outside of duty hours, they are not exempted from the regulations of the Civil Aviation Administration of China (CAAC).

The company also warned employees that participation in illegal parades or violent activities is unacceptable. It has adopted a “zero tolerance” attitude towards employees participating in illegal activities. If employees participate, they will be investigated by the company and may even be dismissed.

On August 9, the CAAC issued a “severe aviation risk warning” to Cathay. A week later, Rupert Hogg resigned as Cathay Pacific’s CEO. Cathay Pacific’s Chief Customer & Commercial Officer, Paul Loo, also resigned. Within those two weeks, multiple employees were fired due to their speeches relating to current protests in Hong Kong, including four pilots.

Cathay Pacific is the flag carrier of Hong Kong, founded 70 years ago. 80 percent of its more than 30,000 employees are in the city.

Source: Central News Agency, August 23, 2019
https://www.cna.com.tw/news/acn/201908230167.aspx

China in 2022: One Surveillance Camera for Every Two People

Chinese cities are perhaps the most closely monitored places in the world. It is predicted that, by 2022, on average every two people in the country will be covered by a surveillance camera. The city of Chongqing currently has 2.6 million monitoring devices, or an average of 168 cameras per thousand people, higher than any other city in the world.

China plans to finish installing a social credit system by 2020. Surveillance monitors are becoming a weapon for creating so-called “smart cities” and “efficient governments.” On the streets of Shanghai, when a traffic violation occurs, the camera will immediately capture and broadcast the faces of the offenders in public, to the surprise of many foreign tourists.

The South China Morning Post quoted the British research firm Comparitech, which stated that, in the ranking of most monitors allocated to each thousand people, eight cities in China made it to the top 10. The top 10 are Chongqing, Shenzhen, Shanghai, Tianjin, Jinan, London (UK), Wuhan, Guangzhou, Beijing, and Atlanta (USA). Chongqing leads the world with 168.03 monitors per thousand people, followed by Shenzhen, with every thousand people covered by 159.09 cameras.

It is generally believed that China currently has about 200 million surveillance cameras. It is predicted that the number of cameras in China will grow by 213 percent by 2022 and reach 626 million. On average, about every two people will be within the sight of a camera.

Source: Central News Agency, August 20, 2019
https://www.cna.com.tw/news/firstnews/201908200039.aspx

Risk Prone Chinese Made Programs Abound in the World VPN App Market

Chinese companies develop about 60 percent of the world’s free VPN (virtual private network) programs and 90 percent of them have security risks. The overseas website “Top10VPN” published a survey last week, and indicated that 77 percent of the popular VPN programs have potential risks.

According to “Top10VPN,” potentially risky VPN programs have been downloaded 210 million times from the Google App Store, while the figure at the Apple’s App Store reached 3.8 million times a month. Although “Top10VPN” has already brought up the issue to Google and Apple regarding this issue and also reported that 80 percent of the free VPN programs in the app store violate Apple’s own data sharing regulations,  nevertheless, neither company seemed to care to look into the problem.

Ten years ago, the Chinese government installed a national firewall making many famous websites inaccessible in China, such as Google, Twitter, and Facebook. In order to access blocked foreign websites, many Chinese netizens try various circumvention methods, among which VPN is a stable technology.

One IT professional involved in the VPN business told the Taiwan based Central News Agency that Chinese companies’ practices of launching VPN businesses or acquiring overseas VPN operations began in 2015. After China took over the VPN companies, it has been more and more difficult for the Chinese people to circumvent the Great Firewall. Deutsche Welle also reported the worrisome fact that many VPN operators chose not to tell their customers about the information of their parent companies.

Because it is very difficult for Chinese authorities to completely block netizens from accessing overseas websites, one interviewee told Radio Free Asia, “So the Chinese government has adopted the smartest approach. If it can’t stop the users’ needs, it creates a management model that can (put people) under surveillance. This is the main reason behind the proliferation of Chinese made VPNs in major app stores.”

Source: Radio Free Asia, August 21, 2019
https://www.rfa.org/mandarin/yataibaodao/meiti/ql1-08212019065631.html

Defending the Rule of Law in Hong Kong

For the past eleven consecutive weeks, the Hong Kong people have been protesting the proposed extradition bill and later, how the authorities have mistreated people. Beijing has turned a deaf ear to them and even plans to use either the army or police forces from the mainland to bring “order” to Hong Kong. How should the West handle the CCP’s threats?

Before answering that question, let’s first try to understand this question: What do the Hong Kong people really want and what are they defending?

The Chinese Communist Party (CCP) has called the Hong Kong people “Hong Kong separationists” or “dogs of the British colony.” We all know that is not true; they are not asking for Hong Kong’s independence; they are not asking to go back to the U.K., either.

Are they asking for universal suffrage? Yes, they asked for it in the Occupy Central movement in 2014 and are asking for it now. However, one may wonder, “The Hong Kong people didn’t have universal suffrage under British rule. They didn’t ask for it then. Why now?”

This is because universal suffrage is not their essential appeal. Their essential appeal is for the “rule of law.”

Being a global financial center and trading hub, the rule of law is a must for Hong Kong. It needs that to assure people that they can be at ease doing business in Hong Kong: their personal safety is guaranteed, the security of their assets is protected, contracts are honored, legal processes are trustworthy, and officials’ abuse of power is systematically prevented.

Hong Kong enjoyed the rule of law under the British rule and continued with it under the “One Country, Two Systems” in accordance with Beijing’s agreement after it took over in 1997. However, as the CCP has gradually gained more control over Hong Kong, adherence to the rule of law has been deteriorating and the CCP has been replacing it with “rule by the Communist Party.” Chinascope has published an analysis explaining that in China, it is not the “rule of law” and not even the “rule by law” that has prevailed, but just “rule by the Communist Party.” {1}

Among the five demands that the Hong Kong people have made, four are related to the “rule of law.” They are: the withdrawal of the proposed extradition bill, the government’s retraction of its characterization of the violent clashes as “riots,” unconditional release of arrested protesters and dropping charges against them, and a completely independent investigation of police behavior.

So, what the Hong Kong people are doing is defending Hong Kong’s rule of law. The request for universal suffrage is a means to enable that defense. An executive that the public elects is more likely to honor the public’s interest and the rule of law while an executive that the CCP selects will likely be the CCP’s puppet. This was not an issue during the British rule because the rule of law was already honored under the British, and thus, the Hong Kong people didn’t ask for the governor to be elected.

Now let’s come back to the opening question: How should the West handle the CCP’s threats? Should the world acquiesce to the CCP’s use of force to end the protests in Hong Kong?

No, definitely not. The moment the CCP uses the gun instead of a humane approach to solve the Hong Kong issue, that is when the new era for Hong Kong starts. It will be the era of “rule by the party” in Hong Kong. The rule of law will be gone and Hong Kong will no longer be a global center.

The damage is not just that.

If the world lets Beijing expand its “rule by the party” to Hong Kong, we are telling our companies that they must kowtow to the CCP if they want to do business in China. In fact, many of them have already practiced bowing to the CCP all these years and done it very well.

If the world lets Beijing renounce its promise that “One Country, Two Systems” will not change for 50 years, we are telling Beijing that it can sign any trade deal with any country and any organization, knowing that it can break its promise at any time. Beijing has already done that in many instances. Its WTO promises are just one.

If the world lets Beijing use tear gas, bullets, or tanks to put down protests in Hong Kong, we are telling Beijing that we do not care about human rights and we can tolerate a “Thuggish Regime.” We already made that mistake in responding to the Tiananmen Massacre.

The Hong Kong people have shown the world that they are willing to use their human flesh to defend the rule of law in front of a mighty state machine. If Beijing has its way with Hong Kong who is next?

Now it is time for the U.S., the West, and the whole world to join them, to show that we are committed to defending the rule of law, the spirit of the contract, human rights, and at the moral level, what it means to make a promise and to keep your word! We are also telling the thugs and evildoers that immoral acts have consequences.

Endnote:
{1} Chinascope, “China: Rule of Law or Rule by the Party?” April 5, 2015.
http://chinascope.org/archives/6497.