Chinascope – Page 42

Chinese State Council Issues Action Plan on Equipment Renewal and Consumer Good Trade-Ins

Recently, the State Council of China issued an “Action Plan for Promotion of Large-Scale Equipment Renewal and Trade-In of Consumer Goods” (the “Action Plan”). The Action Plan aims to implement the decisions of the Chinese Communist Party’s Central Economic Work Conference and the Fourth meeting of the Central Finance and Economic Committee.

The Action Plan proposes that, by 2027, equipment investment should increase by more than 25% over 2023 levels in the fields of industry, agriculture, construction, transportation, education, cultural tourism, and medical care. The adoption rate of digital R&D tools and the Computer Numerical Control (CNC) rate of key processes at large-scale industrial enterprises should exceed 90 percent and 75 percent, respectively. Compared with 2023 levels, the rate at which scrapped cars are recycled will double, sales of second-hand cars will increase by 45 percent, and the rate at which scrapped household appliances are recycled will increase by 30 percent.

The “Action Plan” specifies 20 key tasks in five categories. The five categories are:

Enable equipment renewal: Promote equipment renewal and transformation in key industries, accelerate equipment renewal in construction and infrastructure projects, support the renewal of transportation equipment and old agricultural machinery, and improve equipment used in the fields of education, cultural tourism, and medicine.
Implement trade-ins for consumer goods: Enable trade-ins of old cars and household appliances, promoting the use of new consumer goods for home renovation.
Recycle and reuse: Improve the network for recycling of used or scrapped products and equipment.
Improve standards: Accelerate improvement standards for energy consumption, emissions, and other technical standards, including technical standards for products.
Strengthen policy support: Increase fiscal policy support, improve tax support policies, optimize financial support, and strengthen support of innovation.

Source: People’s Daily, March 14, 2024
http://politics.people.com.cn/n1/2024/0314/c1001-40195328.html

Briefings | | March 31, 2024 | Government/Politics

“Patriotic” Leader of American Fujian Association Publicly Berates Chinese Consul-General

Radio Free Asia recently published an article on the American Fujian Association’s apparent internal division and conflict with the Chinese Consulate. The American Fujian Association is a U.S.-based organization that has long been regarded as a pro-Communist overseas Chinese organization with extensive ties to the Chinese consulate.

On the evening of March 18th, the American Fujian Association in New York held a swearing-in ceremony for its “Co-President” Liu Aihua at the Junhao Restaurant in Flushing, New York. The honorary chairman of the Fujian Association, Chen Xueduan, a “patriotic overseas leader” for the Chinese community in the U.S., openly berated the Chinese Consul-General in New York, Huang Ping. In an online video, Chen stood on stage with Liu and three other members, holding a microphone and loudly addressing the audience, “President Liu Aihua is now suppressed by someone, by whom? By the Chinese consulate!” “No matter who suppresses him, we are patriots [of China], we will always be patriots. Huang Ping, the Consul-General, is a puppet Consul-General. When he was in power, he was high and mighty; but when he gets put into prison, he can only cry!” Chen also asked the media present to spread his speech.

Chen’s words received enthusiastic response from the audience, both on and off the stage.

The American Fujian Association has a history of 82 years. Recent years have seen internal disputes within the organization, leading to internal division and multiple groups acting independently. It currently has “Co-Presidents.” The Chinese Consulate at New York supports “President” Chen Heng, and on March 16th Consul-General Huang Ping attended an 82nd anniversary celebration hosted by Chen. But Huang didn’t attend “President” Liiu Aihua’s swearing-in ceremony on March 18th.

When it comes to suppressing overseas democratic activists or attacking Falun Gong and other faith groups and ethnic minority groups, the Fujian Association members frequently act as convenient “enforcers” for the Chinese consulate. In recent years, the U.S. has intensified efforts to combat Beijing’s infiltration in the U.S. On April 18, 2023, the FBI arrested two leaders of the Fujian Overseas Chinese Association in New York, Lu Jianwang and Chen Jinping, accusing them of operating a “secret police station (for China)” in Manhattan’s Chinatown and attempting to act as agents of China. Both of these individuals are key members of the Fujian Association.

Some commentators have said that Chen Xueduan’s berating of the Chinese Consul-General is a “call to desertion,” indicating that the Communist Party is about to collapse and its days are numbered.

Source: Radio Free Asia, March 27, 2024
https://www.rfa.org/mandarin/yataibaodao/gangtai/kw-03272024103015.html

Briefings | | March 30, 2024 | @CS US-China Relations

Chinese Ministry of State Security: ‘Military Fans’ at High Risk of Becoming Espionage Targets

China’s Ministry of State Security has issued another stern warning about the potential national security threats posed by military enthusiasts, or “military fans.” The ministry says this group is a high-risk target for espionage, theft of secrets, and leaks involving military matters.

In an article titled “Another Reminder for ‘Military Fans'” published earlier this month, the ministry outlined several specific risks pertaining to this community’s activities. The article states that military fans could inadvertently “guide” foreign intelligence operations by revealing sensitive military information, their online military forums and groups could become channels for overseas theft of secrets, and individual military fans could become targets for “screening and enticement” by foreign personnel acting as “insiders.”

On March 7th, the ministry’s official WeChat account delved deeper into the risks involved. The WeChat post noted that Chinese military fans obsessively track developments of advanced weapons and equipment, closely following details such as equipment quantities and models, troop locations, and aircraft serial numbers. They establish databases compiling this sensitive information and share it on websites, constantly expanding and refining the available data. “As time goes by, this information will become increasingly rich and professional, to the point of endangering military security,” the Ministry of State Security warned.

This is not the first time that Beijing has raised alarms about the activity of military fans. On December 23rd of 2023, the Ministry cautioned fans against leaking information on construction progress, technical specifications, or deployment details of new military equipment. The Ministry’s communication at that time stated that violations could result in prison sentences of 3 to 7 years. China’s security establishment clearly views information gathering and sharing by these military enthusiasts as a critical risk to be proactively addressed.

Source: Radio Free Asia, March 20, 2024
https://www.rfa.org/mandarin/yataibaodao/zhengzhi/ql2-03202024033509.html

Briefings | | March 29, 2024 | Defense/Military

China Expands Security Ties in Indian Ocean, Intensifying Rivalry with India

China has recently intensified efforts to deepen security ties with countries in the Indian Ocean region. It has signed a new security agreement with the Maldives, and it dispatched a military delegation to visit three other countries in the region earlier this month.

On March 4th, the Maldives’ Defense Ministry announced the signing of a military assistance agreement with China to “nurture stronger bilateral ties.” Details were not provided. China’s Defense Ministry also sent a delegation on a 10-day visit to the Maldives, Sri Lanka and Nepal. They met with Maldivian President Mohamed Muizzu and Maldives defense officials to “discuss regional security issues of common concern,” develop bilateral military relations, and promote defense cooperation.

Concurrently, India began withdrawing around 80 security personnel from the Maldives at Muizzu’s request. The Indian personnel had been deployed to operate helicopters and aircraft for surveillance or rescue operations.

Chinese research vessel activity near the Maldives has increased recently. A Chinese research vessel visited the Maldives last month, raising Indian security concerns that Beijing could use gathered data to deploy naval ships to the region.

Analysts suggest that the Indian Ocean region is becoming another arena for geopolitical rivalry over the next decade, with the potential for low-level conflicts between major powers like India and China. According to David Brewster of the Australian National University, China’s recent developments in the area are part of long-term efforts to boost the country’s regional security presence. Brewster said “China has been doing this for about 15 years, seizing opportunities to increase its Indian Ocean presence.”

India has been taking steps to bolster its own presence in the region and partner with like-minded democracies. Indian policymakers may worry about China’s increasing security footprint in the Indian Ocean.

Source: Voice of America, March 19, 2024
https://www.voachinese.com/a/china-presence-in-indian-ocean-20240319/7534315.html

Briefings | | March 29, 2024 | Geo-Strategic Trend

China’s Austerity Drive: Provinces Implement “Belt Tightening” Measures

China’s economic slowdown has adversely impacted government fiscal revenues. According to Taiwan’s Central News Agency, there are reports of salary cuts and clawbacks of government allowances. Starting in February, Inner Mongolia, Hunan, and Beijing successively introduced concrete “belt tightening” measures. These measures dictate that, when possible, old office furniture, computers, official vehicles, and other items should be repaired for continued use rather than being replaced.

Beijing took the lead in implementing such measures, announcing 19 initiatives in February. The measures include a directive to fully utilize public property warehouses for resource allocation, aiming to achieve a 50% year-on-year increase in quantity and transfer of stockpiled assets. Other directives include optimizing the use of relocated housing and land as well as improving the efficiency of official vehicle usage.

On March 8th, Hunan province announced 10 specific belt-tightening measures covering office space, official vehicles, receptions, and energy conservation by public institutions. Notably, the measures include a 40% reduction in office maintenance fees, capping property service costs at national standards and budgeted amounts. Additionally, official vehicles can only be replaced after 8 years of use and over 250,000 km driven (provided they remain serviceable).

In mid-March, Inner Mongolia unveiled a multi-part belt-tightening plan including measures for strict budget enforcement, regulation of government procurement, control over certain expenditure categories, lowering of operating costs, promotion institutional frugality, and strengthening of fixed asset management. Projects with favorable performance evaluations are to receive priority funding, while underperforming projects may face budget cuts. The plan emphasizes repair and reuse of office equipment when possible as well as a 20% reduction in external rentals by the local government.

China’s annual central economic meeting in December 2023 called on party and government bodies to “get used to belt tightening.” The Chinese Finance Minister underscored the necessity of fully implementing this requirement, stating “Any money that can be saved should be saved, and not a single cent should be spent unnecessarily. Financial resources should be concentrated on major undertakings.”

Source: Central News Agency (Taiwan), March 24, 2024
https://www.cna.com.tw/news/acn/202403240184.aspx

Briefings | | March 29, 2024 | Government/Politics

Lianhe Zaobao: South Korean Direct Investment in China Drops Sharply

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported on data released by South Korea’s Ministry of Finance showing that South Korea’s 2023 new direct investment in China dropped by 78.1 percent year-over-year, falling to US$1.87 billion. This is the largest decline in South Korean direct investment in more than 30 years, and it is the first time since 1992 that China has failed to rank among South Korea’s top five destinations for investment. The manufacturing sector led the decline in investment.

The declining numbers reflect China’s changing role in South Korea’s economy as Washington seeks to reduce Beijing’s influence on global supply chains. The United States is about to replace China as South Korea’s largest export destination, importing products ranging from semiconductors to automobiles. South Korean companies have extensive exposure to key sectors in the U.S. and have been seeking to increase investment there to take advantage of the United States’ market scale and government subsidies.

According to statistics from the Korea International Trade Association, China’s imports from South Korea last year were US$162.5 billion, a sharp drop of 18.8 percent from the previous year. This led to a US$18 billion trade deficit between South Korea and China, the first trade deficit seen during the 31 years since the establishment of diplomatic relations between China and South Korea.

Source: Lianhe Zaobao, March 15, 2024
https://www.zaobao.com.sg/realtime/world/story20240315-3160390

Briefings | | March 28, 2024 | Geo-Strategic Trend

RTI: Japanese Company Bridgestone Closes Shenyang Factory

Radio Taiwan International (RTI) recently reported that Bridgestone, Japan’s largest tire manufacturer, announced the closure of its factory in the Chinese city of Shenyang. The company also plans to terminate the production and sales of commercial vehicle tires in China during the first half of 2024. The Bridgestone Group has been operating in China for more than 20 years. Bridgestone closed its tire factory in Huizhou, Guangdong Province at the end of 2021 and transferred production capacity and equipment to Shenyang.

Japan was the first country to have foreign businesses enter China during the modern era. In recent years, foreign companies, including many from Japan, have withdrawn from the Chinese market. Experts have said that Japan is a “weathervane” for foreign investment in China, and that foreign business withdrawals from China are now accelerating. This is quite inconsistent with the Chinese government’s messaging around business-friendliness. Since last year, world-renowned companies including Japan’s Canon, SONY, Toshiba, Nikon and South Korea’s Samsung have withdrawn from China, affecting tens of thousands of Chinese employees.

Source: RTI, March 15, 2024
https://www.rti.org.tw/news/view/id/2199093

Briefings | | March 28, 2024 | Economy/Resources Geo-Strategic Trend

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

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

The CCP’s Performing Arts Troupes in the U.S.