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

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Mao Yushi Does Not Want to Stay in the CCP; Communist Ideology Is the Past

Mao Yushi, born in 1929, is a Chinese economist. He co-founded the Unirule Institute of Economics, which promotes private property, freedom of choice, voluntary exchange, the rule of law, and other attributes of a free market economy. On May 4, 2012, Mao Yushi was awarded the Cato Institute’s Milton Friedman Prize for Advancing Liberty for his work in classical liberalism and free-market economics. In October 2014 Beijing began a “crackdown on dissent” and banned the publication of his works. In January 2017 they shut down his Web site.

In a recent interview with Voice of America, Mao said the main obstacle to China’s transition toward a market economy is the intervention of power. To solve these problems requires a clean political clarity, freedom of speech, supervision by ordinary people, and an emphasis on an independent judiciary.

Mao believes that in today’s era, the communist ideology is becoming part of the past. The world is changing in the direction of democracy, the rule of law, constitutionalism, and human rights. “Willingly or unwillingly, this is a matter of fact.”

“I have also thought it through. I don’t want to stay in the (CCP) party any more. Many intellectuals share this thought.” Mao added that top leaders and the middle class Chinese are sending their children to the United States. This shows the power of the historic trend.

Mao projects that the time before the advent of China’s political reforms “will not be long.” The change will come true.

Source: Central News Agency, December 15, 2018
https://www.cna.com.tw/news/acn/201812150102.aspx

Briefings | | |   Government/Politics

To Celebrate Chinese Communist Party’s One-hundredth Birthday, Wanda to Build a Red Themed Town

The Wanda Group is a Chinese multinational conglomerate based in Beijing. It is a private property developer and owner of the Australian Hoyts Group, as well as a majority shareholder of the American AMC Theatres.

On December 13, Yan’an city’s municipal government and Wanda Group signed an agreement in Beijing. Wanda will build a red themed town in Yan’an – Yan’an Wanda Town.

Yan’an is a city in China’s northwestern Shaanxi Province. From late 1935 to early 1947, it was the center of the Chinese Communist revolution. Chinese communists celebrate Yan’an as the birthplace of the revolution.

The project has a total investment of 12 billion yuan (US$ 1.74 billion). It is said to integrate patriotism education, tourism, the holiday, and an intangible cultural heritage experience. The town will consist of red themed blocks, a red themed indoor park, a red themed theater, and a resort hotel group. Yan’an Wanda Town plans to start digging in the first quarter of 2019 and be open to the public in the first half of 2021. Wanda said that the project will serve as a gift for Yan’an to celebrate the one-hundredth anniversary of the Chinese Communist Party.

Wang Jianlin, chairman of Wanda Group, said that the Wanda Group will carry forward Yan’an’s spirit with a sense of historical mission and social responsibility, and will make Yan’an Wanda Town a new national red tourism brand.

Source: The Paper, December 13, 2018
https://www.thepaper.cn/newsDetail_forward_2736036

Briefings | | |   Government/Politics

China Uses High Pay to Lure Tech Talent from South Korea

For at least three to five years, South Korea has been considered to be leading China in the semiconductor industry. In order to reduce this gap and even catch up with South Korea, China has not only invested heavily in facilities, but has also used high pay to hire tech talent from Korea.

Many Koreans are surprised by the amount of money China is willing to pay. The Chinese side usually proposes a salary three times higher than the current job, with a three-year guarantee period. A Korean semiconductor professional said, “If you are over 50 years old and you don’t have an ideal position in the company, the high salary will naturally tempt you. If you continue to work in Korea, you can still work for up to 3 years. However, a three-fold salary plus a three-year guarantee is the same as an additional 7-8 years of salary.”

People said that three times the current pay is a general case. For those who have important technology at hand, the salary that the Chinese propose is even as high as eight times. China has reportedly hired more than 1,000 scientific and technical personnel from the Korean semiconductor industry, offering a high salary.

Semiconductors are South Korea’s most important export to China. For China, the domestically produced semiconductors account for only 15 percent of total demand and the remaining 85 percent need to be purchased from South Korea, Taiwan, and the United States.

After China has overtaken Korea in mobile phones, display panels, shipbuilding, automobiles, and other industries, the semiconductor has become the only industry in which Korea is leading China. In the first 10 months of this year, Korea’s semiconductor exports to China were about US$60 billion. This figure exactly equals Korea’s trade surplus with China from January to October. If China overtakes the semiconductor, the bilateral balance of trade could reverse.

Source: Radio Free Asia, December 12, 2018
https://www.rfa.org/mandarin/yataibaodao/jingmao/ko-12122018101604.html

Briefings | | |   Economy/Resources

Study Shows Overtime is Common in China

China’s National Business Daily reported that a study that the China Social Science Publishing House and the Inner Mongolia University issued on December 10 showed that it was quite common in 2017 for Chinese workers to work overtime (net working hours greater than 8 hours a day), with an overtime rate of 42.2 percent. Working overtime is particularly serious among low-income, low-education, and manufacturing workers. The overtime rate among manufacturing workers can be as high as 58.8 percent. The study was based on an analysis of the time utilization information from 12,471 households (30,591 household members) in 29 provinces in China, not including Xinjiang and Tibet.

According to the analysis of urban traffic data, Huawei topped Chinese companies with an average daily overtime of 3.96 hours per person.

Many Chinese are still working even though they are on vacation. The traveler bloggers website (www.mafengwo.cn) released The “Chinese White-collar Workers Travel Research Report 2017,” which showed that 88 percent of white-collar workers need to handle work even during travel. Ten percent of respondents said they would like to take a low-key vacation and never tell their colleagues. Forty-six percent of people would proceed cautiously, sharing the vacation information only with close colleagues.

Source: Central News Agency, December 11, 2018
https://www.cna.com.tw/news/acn/201812110215.aspx

Briefings | | |   Economy/Resources

Anti-American Actions in China after the Arrest of Huawei CFO

The arrest of Huawei’s CFO Meng Wanzhou in Canada has triggered “anti-American” sentiment in mainland China. Some people have threatened to boycott U.S. goods. A number of companies are setting up a reward and punishment mechanism, requiring staff to support Huawei and taking disciplinary actions against those who purchase Apple products.

Menpad, a Shenzhen-based LCD display maker, confirmed to reporters that the company decided to support “compatriots” after the arrest of Huawei’s Meng. The management will give a 15 percent subsidy to employees who purchase Huawei phones and impose a 100 percent fine on those who purchase Apple phones.

In Shanghai, a chamber of commerce requires all members to boycott Apple. If a member purchases an Apple electronics product after the notice is issued, that person’s membership in the Chamber of Commerce will be cancelled. The Shaanxi’s Lian Development Group also issued a notice that requires all middle level management to use Huawei products and recommended its subsidiaries offer a subsidy of no less than 20 percent to employees who purchase Huawei mobile phones.

In addition to corporate actions, some netizens spontaneously wanted to “boycott U.S. goods.” On TikTok, a popular Chinese video sharing app, a film is being circulated showing that a man smashed his iPhone to express his anger. Another widespread video shows a man protesting in front of an Apple store, holding the banner “Apple get out of China; release Meng Wanzhou.”

Source: Radio Free Asia, December 10, 2018
https://www.rfa.org/cantonese/news/apple-12102018091629.html
Sputnik News, December 11, 2018
http://sputniknews.cn/china/201812111027082873/

Briefings | | |   Government/Politics

China-Owned German Robotics Giant Kuka Let Go of Its CEO

Jiemian News, the online news site under the Shanghai United Media Group, recently reported that German robotics giant Kuka AG officially announced the leave of its Global CEO, Till Reuter, who has served the company for the past decade. His original term had been extended to 2022. Sources explained that Reuter did not intend to leave the company. However, he had a major disagreement with the company Supervisory Board Chairman, Gu Yanmin, and decided to move on. Gu is the Deputy President of China’s Midea Group that acquired Kuka in 2016. The Midea Group currently holds 94.55 percent of Kuka. Kuka announced its major investment plan in China this past March. The plan will establish a new manufacturing base in Guangdong China to deliver an annual Chinese operation capacity to make 100,000 industrial robots by the year 2024. Kuka’s latest announcement indicated that there is no change in terms of intellectual property protection agreements it had with China.

Source: Jiemian News, November 27, 2018
https://www.jiemian.com/article/2657485.html

Briefings | | |   Geo-Strategic Trend

China Times: Primary iPhone Manufacturer Foxconn Setting Up Operations in Vietnam

Major Taiwanese newspaper China Times recently reported that, based on Vietnamese media reports, the primary Apple iPhone manufacturer Foxconn started a cooperative process with the City of Hanoi to establish its manufacturing operations in Vietnam. The move is reportedly in response to the on-going China-U.S. trade war. In fact, in October, the company’s subsidiary Foxconn Interconnect Technology had already completed a US$130 million acquisition of the Vietnamese company named New Wing Interconnect Technology, which is located in Bac Giang Province. Another possible reason for the Foxconn move could be the weakness of the new Apple iPhone sales trend, which has caused concern about reduced supply chain profits. Foxconn refused to validate this Vietnam move, citing its company policy of not commenting on matters directly related to its clients.

Source: China Times, December 4, 2018
https://www.chinatimes.com/cn/newspapers/20181204000393-260204

Briefings | | |   Geo-Strategic Trend Information/Technology US-China Relations

Ballet Promoting Communist Party Ideology Performed at Madrid International Dance Festival

Xinhua reported that, on December 5, at the 33rd Madrid International Dance Festival and upon the invitation of the Ministry of Culture of Madrid, the China Central Ballet performed “Red Detachment of Women.” A total of three more performances are planned, from the 5th to the 7th. This is the first time since its establishment that the China Central Ballet has performed in Spain.

According to Wikipedia, “Red Detachment of Women” is a Chinese ballet which premiered in 1964 and was made one of the Eight Model Operas which dominated the national stage during the Cultural Revolution. It depicts the liberation of a peasant girl from Hainan Island and her rise in the Chinese Communist Party.

Chinascope reported that, in February 2017, prior to the “Red Detachment of Women” performance at the Melbourne Arts Festival, the Australian Values Alliance called for a boycott of the ballet, saying that the ballet promoted hatred and violence using the form of ballet and that Western countries should be alert to China’s use of cultural exchanges to infiltrate Western society.

According to Voice of America, “Red Detachment of Women” was performed in Pyongyang in April 2018. Kim Jong-un and his wife attended the performance.

Sources:
1. Xinhua, December 7, 2018
http://www.xinhuanet.com/ent/2018-12/07/c_1123816415.htm
2. Chinascope, February 6, 2017

Duowei: Australian Chinese to Boycott Chinese Ballet “Red Detachment of Women”


3. Voice of America, October 24, 2018
https://www.voachinese.com/a/3709487.html

Briefings | | |   Geo-Strategic Trend