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Beijing Asks the Public to Look for “Spies”

Beijing made April 15 the “State Security Education Day for All People.” On that day, the CCTV had a high-profile promotion asking the general public to look for or report “spy” activities. People can report those activities via phone, online submission, mail, or directly going to corresponding government offices. The corresponding office will give out rewards, on three levels, based on the effect of the tips. The highest reward is 500,000 yuan (US $ 74,000).

An observer of Beijing’s affairs has commented that the Chinese Communist Party (CCP) has been looking for spies in the name of “state security” and the result has been that students have reported their teachers and friends have reported on each other. “The CCP faces three big conflicts: the conflicts between the officials and the general public; the conflicts among the ruling group, and the conflicts between the CCP and Western countries. These conflicts have led the CCP to a feeling of great insecurity. To secure its power, the CCP has been looking for ‘spies.’ First, it wants to identify the insiders in the CCP system who are not loyal to the CCP. Second, it wants to arrest members of the general public who are against the CCP. Third, (it wants to identify) the ‘infiltration forces’ from countries overseas.”

Source: Epoch Times, April 18, 2019
http://www.epochtimes.com/gb/19/4/18/n11195737.htm

Netherlands Telecom Giant KPN Decided Not to Use Huawei 5G Equipment

Well-known Chinese news site Sina recently reported that the Netherlands’ largest telecommunications company, Royal KPN NV, announced recently that it will select a European supplier for its core 5G mobile network. KPN is one of the first set of companies that officially stated it would exclude Huawei for 5G. The United States is the one pushing for banning Huawei among its allies, citing national security concerns. Huawei denied any possibility of spying on customers because of Chinese government pressure. KPN explained that the decision of not choosing Huawei was based on the need to protect critical national infrastructure and the potential future impact it might have on the Netherlands policies. The government of the Netherlands has not made an official decision yet. However, the government formed a working group with KPN and other telecommunications companies to coordinate the risk management aspects of building the nation’s 5G infrastructure. In the past decade, Huawei has been one of KPN’s primary suppliers.

Source: Sina, April 26, 2019
https://t.cj.sina.com.cn/articles/view/2101850115/7d47b00302000fpb3

LTN: China’s Economic Rebound Questionable Due to High Unemployment Rate

Major Taiwanese news network Liberty Times Network (LTN) recently reported that Mainland media have given heavy coverage to the news of the first quarter GDP growth rate of 6.4 percent, which was better than expected. However, the unemployment rate for the same period of time was reported at a half-decade low. Thus the economic rebound appears to be an illusion. In the past years, after the Chinese New Year, China’s unemployment rate typically went down since many workers returned to work and a large number of college graduates joined the workforce. However, according to the latest study by the China Institute for Employment Research (CIER), the national unemployment situation is getting worse and the market is seeing a lot more job applicants (with a year-over-year increase of 31 percent) with substantially fewer job offerings (with a year-over-year decline of 11 percent. The gap is the widest since 2014, and it has been on the decline for six consecutive quarters. Even with a decent stock market rebound in the first quarter, the financial sector jobs still saw a year-over-year decline of 39.7 percent.

Source: LTN, April 22, 2019
https://ec.ltn.com.tw/article/breakingnews/2766439

VOA: Income of the Top Groups in China Grew Rapidly; Gap between Rich and Poor Continued to Widen

The latest research shows that the gap between the rich and the poor in Chinese society continues to widen. In the past few decades, the fiscal income of the top groups has grown at an alarming rate and their proportion of the national income has almost doubled, making them the biggest beneficiary of China’s income growth.

The London School of Economics and Political Science issued a report on April 12. According to the report, it studied China’s recent public and non-public statistics, analyzed the income of Chinese society from 1978 to 2015, and drew the above conclusions. The report said that the ordinary Chinese people benefited from economic development and their incomes have greatly improved, but the gap between the rich and the poor has expanded significantly. It is worth noting that the proportion of the top income group, that is, those whose incomes are in the top one percent in China, accounted for only six percent of the income of the the entire population in 1978, but rose to about 14 percent in 2015, higher than the 10 percent in France, and second only to the 20 percent in the U.S. The distribution growth rate of China’s top one percent income group is the highest in the world for the 35 years of this period, reaching an alarming 8.6 percent, much higher than the US’s four percent and France’s 1.4 percent. The report found that China’s private wealth is also growing rapidly. By 2015, the growth rate of China’s private income had increased from 115 percent in 1978 to 487 percent, which has pushed China’s overall wealth income growth rate from 350 percent in 1978 to 700 percent in 2015.

Source: Voice of America, April 12, 2019
https://www.voachinese.com/a/china-inequality-more-like-us-12042019/4873853.html

National Bureau of Statistics: First Quarter Profit Declined by 3.3 Percent

China’s National Bureau of Statistics recently released its official numbers for the first quarter. The national level profit of industrial Enterprises Above a Designated Size (EADS, that is, companies whose primary business income is above RMB 20 million or around US$2.97 million) recorded a year-over-year 3.3 percent decline. State-owned enterprises suffered a profit decline of 13.4 percent; joint-stock companies declined by one percent; and foreign investment companies saw a profit decline of 7.9 percent, while privately-owned companies had a profit increase of seven percent. In the first quarter profit category, the mining industry declined year-over-year by 3.4 percent and the manufacturing industry declined by 4.2 percent. At the same time, at the national level, corporate debts and inventory both increased.

Source: Official Site of the National Bureau of Statistics, April 27, 2019
http://www.stats.gov.cn/tjsj/zxfb/201904/t20190426_1661900.html

RFA: Hong Kong Protest Escalated, Shouting for Chief Executive to Step Down

On Sunday April 28, tens of thousands of Hong Kong citizens took to the streets to protest the Hong Kong court’s verdict on the leaders of the Chinese occupation movement and the Hong Kong government’s amendment of the Fugitive Offenders Ordinance. Numbers of groups, including the Civil Human Rights Front in Hong Kong, organized the protest. According to news from the Hong Kong police, during the peak time, 20,000 participated in the protest. The protesters came from a wide background, including Hong Kong’s famous singers Anthony Wong, Yiu-ming, and Denise Ho.

The slogan of the protest was mainly to ask the government to withdraw the revised plan for the Fugitive Offenders Ordinance and safeguard the rule of law and freedom of speech in Hong Kong. Since March, the Hong Kong Government has been promoting the revision of the Fugitive Offenders Ordinance, which has caused widespread concern. If the proposal of the Fugitive Offenders Ordinance becomes law, for the first time, there will be an extradition arrangement between Hong Kong and the mainland. A large number of politicians in Hong Kong believe that the Chinese government may use this bill to extradite political prisoners from Hong Kong to the Mainland. However, Hong Kong Chief Executive Carrie Lam said at the beginning of April that the revision of the Fugitive Offenders Ordinance will be promoted. The Hong Kong government established a special committee and held its first meeting last week. The tough stance of the Hong Kong Government has left the people of Hong Kong worried. According to Radio France Internationale, in the parade held this Sunday, some people kept shouting “Carrie Lam should step down!” A spokesman for the Hong Kong Government said, in response to the demonstration, that the amendment of the Fugitive Offenders Ordinance is in line with the spirit of the rule of law and the independence of the judiciary in Hong Kong.

This protest is the second demonstration within one month and the scale was even larger than the previous one.

Source: Radio Free Asia, April 28, 2019
https://www.rfa.org/mandarin/Xinwen/9-04282019163051.html

The Epoch Times: 2nd Belt and Road Summit Lacked Transparency

Epoch Times reported that the 2nd “Belt and Road International Cooperation Summit” concluded on April 27 in Beijing. However, the Summit was described as lacking transparency as most of the meetings were held behind closed doors. As the media was not invited, they were not able to cover the meetings. The reporters were neither notified of the time of the opening ceremony nor were they given the chance to ask questions during the press conference at the closing ceremony. According to an article the BBC published, on April 27, Xi Jinping participated in a round table discussion with leaders from 37 countries.  After that discussion, Xi held a press conference and declared that agreements in the amount of US$64 billion had been signed during the summit. However, Xi did not mention the scale of the debt that will be owed to China, nor did he say when the next “Belt and Road” summit will be held. Taiwan’s Liberty Times reported that, during the summit, even though China was trying to give answers to the criticism about the “debt trap,” “(China) exercises influence (in foreign countries)” and the entire summit just looked like it lacked transparency. There were also fewer reporters at the summit compared to the last time. Meanwhile unlike what was done in the past, the large screen in the press center was airing Xi’s entire speech. Reporters felt like they were watching the official CCTV version. In addition, China’s largest trading partners, the U.S. and India, were absent from the summit. None of the leaders from the U.S. G7 industrial countries including Japan, Australia, New Zealand, Canada, Britain, and Germany were present at the summit. Even the Sri Lankan Prime Minister and the Indonesian President, China’s close partners, did not attend the summit.

The Epoch Times article stated that Western democratic countries are worried that the “Belt and Road” project that China proposed will cause the underdeveloped countries participating in the project to fall into a debt crisis. Since there is lack of transparency in the projects and in the funding, it will lead to corruption involving the officials in the hosting countries. China also can use the “Belt and Road” project to export its dictatorship and its party culture to the outside world.

Source: The Epoch Times, April 28, 2019
http://www.epochtimes.com/gb/19/4/28/n11219915.htm

Qualcomm’s Chinese Joint Venture Is Closing Its Doors

Well-known Chinese news site Sohu recently reported that HXT-Semitech, the joint venture between Qualcomm and China’s Guizhou Province, is set to close its doors by the end of April. According to information leaked from within in an internal conference, HXT had already announced the closure  along with the employee layoff compensation plan. HXT CEO Wang Kai had already quietly left the company and many HXT staff had also started looking for other opportunities. HXT did not make any official information available; nor did Qualcomm or Guizhou Province. HXT was founded in 2016 with a joint investment of US$570 million from Qualcomm (with a 45 percent stake) and Guizhou Province (with a 55 percent stake). The company later established three bases in Guizhou, Beijing, and Shanghai. HXT planned to focus on designing ARMv8 64-bit server chips. In May last year, HXT announced the successful design of its Number 1 chip for commercial release. After the news of HXT’s closure was made public, experts expressed the belief that there is no shortcut to take in the field of core chip development.

Source: Sohu, April 21, 2019
http://www.sohu.com/a/309379318_343547?sec=wd