Skip to content

Lianhe Zaobao: Google Partially Paused Business Relations with Huawei

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, with the ban that the U.S. government issued, Google paused the execution of some of its business agreements with Huawei. Other than Google’s open-source version of Android, Huawei can no longer use Google applications on Android, such as Gmail and Google Maps. This will have an immediate impact on Huawei’s cellphones sold internationally. The overseas handsets, even the latest next generation models, are not going to be able to visit Google’s Google Play application store and popular apps. Some of the details are still being discussed internally at Google. This is a direct result of U.S. Department of Commerce’s new rules on controls applied to direct business activities with companies that may threaten the U.S. national security. Huawei is one of the 68 companies in 26 countries that are included on the black list. Reuters reported the news and the chief of the U.S. online tech news site The Verge confirmed it.

Source: Lianhe Zaobao, May 20, 2019
https://www.zaobao.com.sg/realtime/china/story20190520-957941

VOA: As the US-China Trade War Escalates, China’s Employment Situation Is Getting Grim

As the US-China trade tensions intensify, China expects a record 8.34 million college graduates to enter the job market this summer. It is believed that the recent increase in tariffs that the U.S. has imposed has made China’s export-dependent economy more vulnerable. China’s employment situation will become more and more severe for all job seekers, including college graduates. A recent survey showed that the actual employment rate this year was only 52 percent due to the fact that college graduates have not been able to find matching professions after their graduations. The survey found that this means that at least 4 million graduates will soon become unemployed, although many of them may choose to continue their studies. A report that Renmin University of China and the Career Platform Recruitment Network completed jointly found that, in the first quarter of this year, the number of job seekers in China increased by 31 percent compared to the same period last year. It was the highest increase since 2011. The report concluded that the China Job Market Prosperity Index has fallen to its lowest level since 2014. However, the latest official statistics describe a slightly different situation. According to official data, the unemployment rate in China’s urban areas remained at 5.2 percent in March, down 0.1 percentage points from February.

Source: Voice of America, May 17, 2019
https://www.voachinese.com/a/escalated-trade-tensions-add-pressure-on-the-employment-of-chinese-graduates-20190517/2407537.htmla/us-defense-secretary-20161206/4921705.html

RFA: Will Anti US Korean War Movies and Media Propaganda Incite the Chinese People to Hate the US?

Radio Free Asia (RFA) reported that, as the US-China trade war is heating up, China’s CCTV has been changing its original program list and has broadcast anti-US films for three consecutive days. All three films were made in the 60’s with the Korean War as the background. At the same time, People’s Daily published an article saying, “There has never been a savior (for China) and, “The theory that the ‘U.S. has rebuilt China’ should be put to rest.” The article stated that “China’s development, in the end, is that the Chinese people continue to push forward reform and opening up under the leadership of the Chinese Communist Party and people’s hard work.” The article continued about the observation that there has never been a savior (for China). “Instead of revealing ignorance, it would be better (for the U.S.) to respect the facts, stop the unwarranted accusations against China, have a positive perspective when looking at China’s development, and do more things that are conducive to the normal and stable development of Sino-US economic and trade relations.” RFA quoted several comments. One comment stated that China’s current official propaganda was there to fool the Chinese people. “(The party) shifted the blame for the rising unemployment rate and inflation to the U.S. and used the circumstances to demonize the U.S.” Another comment stated, “On the one hand, the Chinese official media said that there has never been a savior. On the other hand, it seems contradictory and extremely stupid to advocate Mao Zedong as the savior of the Chinese people. The propaganda of the official media does not incite the hatred that is among the Chinese people. … If the United States were not good, why would so many officials send their children to the U.S. to study every year? In addition, many of their children also immigrate to the U.S. to get green cards. Why do they do that?”

Source: Radio Free Asia, May 17, 2019
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/yl-05172019113732.html

Epoch Times: Huawei Has “Backdoor” into Dutch Telecoms Network

Epoch Times reported that the Dutch media recently revealed that mainland telecom giant Huawei has a “backdoor” into the network of a major Dutch telecommunications company, possibly in order to obtain customer information. According to a report the Dutch De Volkskrant published on the 16th, the Dutch intelligence and security agency AIVD is investigating whether China is conducting espionage. At the beginning of April, AIVD named China and Russia, warning the Dutch not to rely on the hardware and software equipment made by these two countries. It pointed out that China and Russia have adopted an aggressive network strategy against the Netherlands, jeopardizing the interests of the Netherlands.

According to Epoch Times, this is not the first time that Huawei was accused of installing a “backdoor” on its devices. At the end of April this year, Bloomberg broke the news that Vodafone, the world’s second-largest mobile operator, admitted that, a few years ago, it had discovered that the equipment supplied by Huawei to Vodafone’s Italian business had a backdoor. On March 29, the US technology website Lightreading reported that Microsoft engineers found the “backdoor” on Huawei laptops through the installed “Microsoft Defender Advanced Threat Protection” used in Windows 10. On December 11, 2018, Fuji TV Japan quoted officials from the Japanese Liberal Democratic Party as saying that after disassembling Huawei equipment, the Japanese government discovered that there were “unnecessary parts” in the hardware. In 2017, a person who claimed to be an internal employee of Huawei disclosed in the social media that Huawei’s mobile phones and computers are equipped with spying software. In September 2015, the famous hacker media “The Hacker News” reported that G-Data, a security company from Germany, found that 26 Chinese-made smartphones, including Huawei, had pre-installed spyware in their firmware. In addition, Huawei is accused of having close ties with the Chinese authorities. It has actively participated in projects such as the Golden Shield Project and is the backbone enterprise for China’s Internet censorship and its national security monitoring system.

Source: Epoch Times, May 16, 2019
http://www.epochtimes.com/gb/19/5/16/n11263097.htm

Li Keqiang on the Bottom Line of No Large-Scale Unemployment

On May 13, 2019, Chinese Premier Li Keqiang chaired and spoke at a recent national conference on entrepreneurship and jobs where he demanded that cadres at all levels make job creation their top priority.

Li said that, “the situation is complicated and grim” in the job market and that priority should be given to fresh graduates, demobilized military personnel and migrant workers.

To address this “complicated and grim situation,” Li said it’s the responsibility of regional governments, for they “must not break the bottom line of no large-scale unemployment.”

For migrant workers, Li asked regional authorities to take charge of their own unemployment issues. For provinces where large numbers of migrant workers tend to come to work, Li said that local authorities must do all they can to keep unemployed people in their region and to prevent migrant workers from returning to their hometowns en masse.

Meanwhile, Li said, authorities in provinces where most people leave to find work elsewhere, usually poor provinces where residents leave for work in the big cities, must assist those who have returned to their hometowns in securing jobs or starting their own businesses locally,

Source: Xinhua, May 13, 2019
http://www.xinhuanet.com/politics/leaders/2019-05/13/c_1124488813.htm

In 2017 China’s Resident Debt Burden Exceeded 53 Percent of GDP

According to Chinese media, in the first half of 2017, mainland China’s resident debt burden exceeded 53 percent of China’s GDP. This figure includes residential mortgages and loans from Peer to peer (P2P) lending.

Without residential mortgages and P2P lending, the resident debt was 3 percent of GDP in 1996, 18 percent in 2008 and it hit 47.5 percent in 2017. From 2008 to 2017, it increased by 30 percentage points. It is noteworthy that it took the United States 60 years to increase from 20 percent to 50 percent while China took fewer than 10 years.

Further, based on data from banks, the debt-to-income ratio is much higher than 78.1 percent. From 2006 to 2017, the debt-to-disposable income ratio for mainland China’s residents surged from 18.3 percent to 78.1 percent. If other types of borrowing were included, the figure would be even more alarming. That is to say, it is much higher than 78.1 percent.

Source: Sohu, May 12, 2019
http://www.sohu.com/a/313385609_100202672?sec=wd

Beijing City: New Grain and Oil Price Control Has Nothing To Do With U.S.-China Trade Friction  

On May 13, 2019, the official Beijing Municipal Development and Reform Commission (BMDRC) website released the “Beijing Grain and Oil Market Supply and Price Volatility Emergency Control Plan.”

On May 14, 2019, China Business News reported that the BMDRC stated that the grain and oil fluctuation emergency plan announced on May 13, 2019 has nothing to do with U.S.-China trade friction.

The Control Plan “is a work that has been promoted before and it is part of the long-term price control. The time of the release just happens to be at this time. [The Control Plan] has nothing to do with Sino-US trade friction,” said the person in charge at the BMDRC

The BMDRC stated that the price of grain can affect the price of hundreds of items. Food security is an important foundation for national security. Food prices such as grain can play a critical role in balancing the entire price level. China’s edible oil market is highly dependent on foreign countries.  Domestic and international market prices are closely linked. It is equally important to stabilize the supplies in the edible oil market and to [secure] price stability.

The Control Plan sets three warnings: green, yellow (year-on-year price increase of 5 to10 percent for grain and 10 to 20 percent for edible oil) and red (year-on-year price increase of over 10 percent for grain and over 20 percent for edible oil). The three warning area indicators trigger three levels of government intervention respectively. The intervention may be through organized sourcing, increasing supply, speeding up distribution, cracking down on illegal activities such as hoarding and raising prices, price emergency measures, temporary price interventions, subsidies, and other emergency assistance.

Source: China Business News, May 14, 2019
http://www.cb.com.cn/index/show/zj_m/cv/cv13448901260

 

A Chinese High School Recommend Students Buy Huawei’s Customized Mobile Phone

On May 11, a high school in Liuzhou City in China’s southwest Guangxi Province recommended that students purchase Huawei’s customized mobile phone, claiming that it can manage students’ mobile phone usage, automatically filter bad messages, and record student violations. According to photos that netizens provided, this customized version of the Huawei Nova4 mobile phone has a management platform that Huawei’s Wuhan Research Institute developed.

The phone has several major functions. It can manage students’ time by locking and unlocking the phone at different times, such as class time, lunch break, nightly bedtime, or holidays, so as to avoid students’ excessive usage. The system will also automatically filter 500 million pieces of “bad” website information related to pornography and violence. The school can distribute notices to students via its back-end, and if a student is given a “misconduct” in phone usage, the system will keep a record.

Although the high school’s deputy principal said that this was a recommendation at the request of parents and not a mandatory purchase, the news triggered heated discussion among Mainland netizens. Some people criticized Huawei for launching such a mobile phone at such a sensitive time. Some questioned, “Who gives Huawei the power to monitor the lives of others under the banner of serving the good of students?” Others joked that this is “buying and bringing ‘big brother’ home.”

Source: Central News Agency, May 13, 2019
https://www.cna.com.tw/news/acn/201905130106.aspx