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

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China’s Upcoming Personal Credit Investigation Report

Chen Yulu, deputy governor of the People’s Bank of China, recently said, “Many young women are looking for boyfriends. The future mothers-in-law often say, “I will take a look at the guy’s credit investigation report that People’s Bank produces.”

The Personal Credit Investigation Report (PCIR) should be correctly called the “financial credit information infrastructure database.” It includes five types of information: the basics such as “Who you are, where you live, and what you do”; credit information such as “Who you borrowed money from, and whether you have paid it back”; non-financial liabilities, including utility payments such as water and electricity; social security and medical insurance; and lastly, the records of how your credit report has been checked, by whom, and for what reason.

In other words, the PCIR put together by China’s central bank, with the assistance of a computer network and big data technology, faithfully recorded everyone’s everyday life activities and debt repayments, carrying many more details than even a credit agency’s investigations.

One should never underestimate this “economic identity card.” If you don’t pay back the money you owe on time, or if it is overdue, you may not even be able to apply for a credit card. The bank will not process your application for a car loan, a mortgage, a student loan, or consumer credit. Nor can you be a CEO or member of a company’s board of directors. The bank will also directly freeze your deposits and financial products. Even worse, if you are on the list of significantly “dishonest” or “untrustworthy” people, you may not be able to take the plane, ride the high-speed rail, and may even be limited from spending on big ticket items.

China is building a comprehensive network of personal credit information with no blind spot. The PCIR was put into a trial operation starting from November 2018 and the new and formal version will be launched in May of this year. With a fully connected network, a lot of detailed information could be queried. For individuals in China, it is less and less likely to live a private life or one hidden from the government.

Source: The World Journal, March 24, 2019
https://www.worldjournal.com/6193766

Briefings | | |   Information/Technology

RFA: Nine Colleges of “Red DNA” Form a University Alliance

Recently, China reestablished an alliance of nine colleges, called the “Yanhe University Talent Training Alliance,” in order to inherit and perpetuate the Yan’an red DNA {a generic name for Communism}. It refers to the Yan’an period of Chinese communism’s education concept (1936-1949) when the party set up nine universities and training institutions for the next generation of Chinese officials and leaders. Therefore, it is called the “red DNA college.”

The Beijing Institute of Technology first initiated the concept of the “Yanhe Alliance.” In addition to the Beijing Institute of Technology, the other eight Chinese universities joining the alliance are Renmin University of China, China Agricultural University, Beijing Foreign Studies University, the Central Conservatory of Music, Central Academy of Fine Arts, Central Academy of Drama, the Central University for Nationalities, and Yan’an University.

A report stated that the nine colleges and universities had spread the fire of the Chinese revolution to the whole country. Today, they gathered together again to reestablish the alliance, to continue the “Yanhe Soul,” to promote the “red heart knot,” {and to carry on the work of “nurturing the next generation.}”

Beijing’s independent scholar Cha Jianguo said on Tuesday (the 19th) in an interview with Radio Free Asia, that the nine universities in the alliance were established in Yan’an, Shaanxi Province: “They want to inherit the red DNA. Now the Chinese Communist Party has fully indoctrinated the mainland. The education system has been indoctrinated, strengthening the party’s leadership, with everything revolving around the party’s tasks. This is part of the party’s national indoctrination. These nine schools may have to take the lead.”

Source: Radio Free Asia, March 19, 2019
https://www.rfa.org/mandarin/yataibaodao/kejiaowen/ql1-03192019101444.html

Briefings | | |   Government/Politics

CCP Calls for Reorganizing “Weak and Lax” Rural CCP Branches

Xinhua reported that Xi Jinping, the general secretary of the Communist Party of China, presided over the 7th meeting of the Central Committee for Comprehensive Deepening Reform, reaffirming the push for the implementation of major reform measures.

The meeting also called for “solidifying grassroots Party organizations and reorganizing the weak and lax rural Party organizations.”  The 7th meeting passed several Party directives including the “Guidance on Strengthening and Improving Rural Governance.”

That is, the meeting emphasized strengthening and improving rural governance.  It is necessary to establish a modern rural social governance system that the Communist Party heads, to solidify a strong grassroots Party organization, to reorganize weak and lax rural Party organizations, and to appoint strong leaders to the rural Party organizations.

The Central Comprehensively Deepening Reforms Commission, formerly known as the Central Leading Group for Comprehensively Deepening Reforms is a policy formulation and implementation body set up under the Politburo of the Communist Party of China in charge of “Comprehensively Deepening Reforms.”

Source: Xinhua, March 19, 2019
http://www.xinhuanet.com/politics/leaders/2019-03/19/c_1124255626.htm

Briefings | | |   Government/Politics

Huawei Hired Two U.S. Firms to Deal with its PR Crisis

Huawei has contracted with two U.S. firms to conduct public relations lobbying and provide legal services in order to save its image. The two companies are Racepoint Global and Burson Cohn & Wolfe (BCW). On March 22, the Center for Responsive Politics, a non-profit, nonpartisan research group that tracks foreign government lobbying activities, publicized the Foreign Agents Registration Act registration (FARA) forms that the two companies completed on March 20 with the Department of Justice.

“BCW will develop a campaign to improve Huawei’s reputation in the U.S. by working with business partners, advisory council members, media outlets, people of influence, and ‘key opinion leaders’ with a budget of $160,000.”

“Racepoint similarly states it will visit with analysts, people of influence and media members and ‘draft content generation for the purpose of educating policymakers and legislators on client positions’ but will ‘have no direct contact with government officials.’”

“Huawei agreed to pay Racepoint $55,000 per month through September 2019. On top of that monthly retainer, Huawei agreed to pay ‘reasonable’ expenses and billing rates for individual team members of up to $320 per hour for the three managing directors. Racepoint’s contract also anticipates the potential of “talent,” “key opinion leaders,” and “celebrity” related costs.”

In the past years, Huawei has spent upwards of seven figures on lobbying efforts as reported under the domestic Lobbying Disclosure Act (LDA), according to the Center, but this is the first time that U.S. firms registered with the Department of Justice as the foreign agents for Huawei.

Source: Radio France International, March 24, 2019
http://rfi.my/3qYk.T
Center for Responsive Politics, March 22, 2019

US firms register as foreign agents of embattled Chinese telecom giant Huawei

Briefings | | |   US-China Relations

Apple Daily: EU’s Naive Days about China Are Ending

Major Hong Kong newspaper Apple Daily recently reported that European leaders met on March 21 to synchronize their position towards China. This is the first time the EU countries have gathered to deal jointly with China at the top level. The European Union intended to list China as one of its competitors. Some French officials even commented that the traditional EU members’ “naive” attitude towards China is ending. According to a document that Reuters obtained called, “EU-China: A Strategic Outlook,” the EU identifies China as an economic competitor in search of a technological leadership position. China is also a “systemic rival” in terms of its governing model. The EU has been complaining about the EU’s economic openness versus China’s different operating model, which has been in existence for some time now. As the second largest economy in the world, China should no longer enjoy the status of a developing country. The EU got a wake-up call just recently on China’s One Belt One Road program. The EU realized that China is throwing investments and loans at some EU members in exchange for influence. The Eastern Europe democratization could face a failure in light of this divide-and-conquer strategy from China.

Source: Apple Daily, March 21, 2019
https://tw.appledaily.com/new/realtime/20190321/1537141/

Briefings | | |   Geo-Strategic Trend

RFA: Staff Member Detained for Writing Software to Earn Points on “Study Xi” App

On New Year’s Day the Ministry of Publicity launched “Study Xi” software. The contents are mainly to introduce Xi Jinping’s thoughts. By the end of January, “Study Xi” software surpassed China’s popular WeChat and TikTok, and jumped to number one of downloaded software.

According to Radio Free Asia, just before the Chinese New Year, the Economic and Technological Development Zone of Yichun City, Jiangxi Province, issued a notice requiring all personnel to download the “Study Xi” software. It tasked them with browsing the video and the article on the app daily to earn a minimum of 30 points each day. Those who failed to do so would be given a notification. According to China Digital Times, a staff member of the Safety Supervision Bureau of the Administrative Committee of the Economic and Technological Development Zone of Yichun City developed software that allows users to earn points automatically without having to browse the “Study Xi” app and charged 80-85 yuan per user. On a U.S. news website on March 20, the staff member was detained for writing this software

The Radio Free Asia article quoted comments from the people it interviewed on this topic. One commentator said that people are pessimistic about this round of brainwashing action. Deploying the “Study Xi” app nationwide has become a political requirement. It shows that Xi Jinping has copied the Mao Zedong era where the nation was forced to embrace the “Red Book.” In the informational age however, Xi Jinping’s intent to idolize himself could end up being difficult and is bound to be a failure. There could be more of this type of software circulating on the Internet.

Source: Radio Free Asia, March 22, 2019
https://www.rfa.org/cantonese/news/arrest-03222019083446.html?encoding=simplified

Briefings | | |   Government/Politics

RFA: Xinhua Published Three Editorial Articles Attacking Tsai Ing-wen

Radio Free Asia (RFA) reported that, starting March 18, in an unusual move, Xinhua published three editorial articles three days in a row attacking Tsai Ing-wen, Taiwan’s President. Some Taiwanese scholars even wondered what it meant. If China cannot accept Tsai Ing-wen, does it suggest that China wants to deal with other candidates who favor more Taiwan Independence instead?

According to RFA, all three Xinhua articles targeted Tsai’s recent counter-measure proposal against Xi Jinping’s “One Country, Two Systems” policy for Taiwan. In one article it attacked Tsai’s interpretation that the “One Country, Two Systems” policy would destroy Taiwan. It also said that Tsai’s proposal that the “Republic of China Taiwan” is an unidentified new term has exposed her intention to keep the two countries separated as they are. Another article accused Tsai Ing-wen of having colluded with “foreign forces.” It claimed that Tsai’s government took the initiative to act as an anti-China pawn for external forces. It elevated the level of US-Taiwan exchanges, strengthened military cooperation with the U.S., offered to conduct “security dialogues” with Japan, and vigorously established a tightened military atmosphere in the Taiwan Strait during an interview with foreign media. In the third article, it stated that after the defeat in the recent election in Taiwan, Tsai Ing-wen made a desperate attempt to protect her personal power even it meant that it would disrupt the peace in the Taiwan Strait.

According to a commentator in the RFA article, these editorials were published just days before Tsai Ing-wen’s scheduled visit to three countries in the pacific islands from March 21 to 28. Meanwhile whether Tsai will make a stop in the U.S. has become a key focus. In addition, the U.S. Taiwan Association and the Taiwanese Foreign Ministry have jointly launched the “Indo-Political Democratic Governance Consultation.” This has gained considerable attention from the mainland because it could enable the U.S. to interfere with internal Taiwan affairs.

Source: Radio Free Asia, March 20, 2019
https://www.rfa.org/mandarin/yataibaodao/gangtai/hcm1-03202019100642.html

Briefings | | |   Geo-Strategic Trend

Due to Rising Costs, One More Foreign Company Leaves China

After South Korea’s Samsung, Japan’s Olympus, and Ricoh, another Japanese multinational company is following suit and withdrawing from China. According to the Securities Times, a subsidiary of the official People’s Daily, Epson China confirmed that it will close its manufacturing company in Shenzhen in March 2021. The factories that Epson will close down belong to Epson Precision (Shenzhen) Ltd., a watch manufacturer, established in 2011.

Although Epson confirmed that the closure of the Shenzhen factory won’t take place until two years later, the layoffs have begun. One employee told Securities Times that the factory of Shenzhen in Baoan district  has stopped recruiting and plans to lay off 1,700 people. The other Nanshan factory is still recruiting.

Radio Free Asia interviewed some Chinese netizens, who said that the retreat of large foreign-funded enterprises has something to do with the increase in operating costs. One interviewee said, “Overall, it has a lot to do with the increase in the cost of labor and land, as well as environmental costs. The corporate cost is still the major reason. As a result, some businesses have turned to Southeast Asian or Latin American countries.”

Another interviewee believes it is also due to the fact that the Chinese government attaches more importance to state-owned enterprises than to foreign and private enterprises. He believes that if China does not carry out structural reforms, the pace of withdrawal of foreign-funded enterprises will not stop.

Source: Radio Free Asia, March 22, 2019
https://www.rfa.org/mandarin/yataibaodao/jingmao/ql1-03222019092619.html

Briefings | | |   Economy/Resources