Chinascope – Page 490

Duowei News: How Should China React to the Trump Administration’s Recent Trade Restrictions?

On May 29, ten days after China and the U.S. agreed to hold off on starting a trade war, the White House announced that it will “impose a 25 percent tariff on US$50 billion of goods imported from China containing industrially significant technology, including those related to the ‘Made in China 2025’ program. The final list of covered imports will be announced by June 15, 2018, and tariffs will be imposed on those imports shortly thereafter.” Duowei News published a commentary article on the same day. The article stated that the statement that the White House made certainly proved that those China hardliners were not happy about the last joint statement to hold off on the trade war. It demonstrated the unpredictability of Trump’s political style and that there are conflicts between China and the U.S. that are difficult to resolve. The article suggested that, first of all, China should maintain its strategic strength and be mentally prepared for the difficulties and risks facing China – U.S. relations. It stated that unlike Japan, who the U.S. forced to sign the “Plaza Accord” 30 years ago, which led to the long-term stagnation of its economy, China has more chips and strengths to play in this game. Secondly, China should clearly recognize the gap between China and the U.S. in both hard power and soft power. According to the article, China needs to take ZTE as a big lesson where ZTE, the No.2 player in the telecommunication industry in China and a tycoon in the telecommunication industry in the world, was forced into an idle state because of its over-reliance on U.S. technology. The article concluded, “When a country like the U.S., which surpasses China by dozens of years in its core technology, still holds such a strong sense of crisis against China, how can China not remain clear-headed?”

Source: Duowei News, May 29, 2018
http://news.dwnews.com/global/news/2018-05-29/60061161.html

Briefings | | May 30, 2018 | US-China Relations

RFA: Catholic Pastors Wear Red Uniforms to Receive Patriotism Training

Radio Free Asia reported that the State Administration of Religious Affairs recently organized a trip called, “Love the Party Patriotism-Red Patriotic Journey.” It was held in the Jinggang Mountains in Jiangxi Province and the representatives of five religions, including dozens of pastors who the Roman Catholic Church recognized, participated. The report stated that the trip was organized for these representatives so they could “study and exchange understandings of Xi Jinping Thought as well as socialist core values.” The photos posted online showed a group picture of the representatives. Some of them were wearing red army uniforms and holding a banner that had the word, “patriotism” on it. The official website of the National Religious Bureau did not disclose relevant information about this trip. The article quoted the comments that several religious figures living overseas made. One person commented that participating in a trip like this is a disgrace to religion. Another comment said that the activity clearly shows that Xi Jinping suppresses religion on the one hand while conducting united front and reorganization activity on the other hand. While many churches in China face suppression, the three-Self Patriotic church organizes large scale activities to study socialist core values. According to the article, during their weekend service, some churches even include the study of Xi Jinping Thought and Patriotism as part of the agenda.

Source: Radio Free Asia, May 24, 2018
https://www.rfa.org/cantonese/news/clergy-05242018084416.html

Briefings | | May 30, 2018 | Government/Politics

Deutsche Welle: South German Newspaper Stopped Publishing China Watch Supplement

Deutsche Welle Chinese recently reported that a German newspaper, the South German Newspaper (Süddeutsche Zeitung) decided to stop publishing the supplement called China Watch, which China Daily provided. The South German Newspaper, published in Munich, Bavaria, is one of the largest daily newspapers in Germany. China Daily is the Chinese government’s official newspaper designed for readers outside of China. In recent years, many Western newspapers have periodically published China Watch as a supplement, including such famous newspapers as the Washington Post, New York Times, British Daily Telegraph, French Le Figaro and Business Daily in Germany. Although the South German Newspaper refused to comment on the reason for discontinuing publication of the supplement, its choice did receive a lot of praise from political observers and human rights organizations. As part of China’s strategy of broadening China’s influence on public opinion in the West, China Watch took the approach of utilizing the channels available through traditional Western media.

Source: DW Chinese, May 19, 2018
https://bit.ly/2savh8d

Briefings | | May 28, 2018 | Geo-Strategic Trend

China’s Resident Deposit Balance Saw a Sharp Decline in April

Well-known Chinese news site Tencent recently reported, based on data that the Chinese central bank recently released, that as of the end of April, the balance of the total deposits of China’s residents fell to RMB 67.4 trillion, which was 1.32 trillion less than the same number at the end of March. This is the largest single-month decline in history. It also represents a 2.1 trillion year-over-year decline. For many years, China has been considered a country with a high rate of savings. However, in 2017, the balance of resident’s deposits started to see a net reduction. In 2008, China’s household savings rate was 53.2 percent. In 2017, that rate dropped to 7.7 percent. In the first quarter of this year, all major domestic national banks saw negative growth for the balance of individual savings. In the same period of time, consumer spending did not show any significant growth. Statistics showed that people have been putting more and more money into investment funds and the real estate market. The savings decline can have a major impact on the economy. It may result in slower bank investments into the economy, an increased cost of borrowing, and more resources sucked into the real estate bubble.

Source: Tencent Financial News, May 18, 2018
https://finance.qq.com/a/20180518/006822.htm

Briefings | | May 28, 2018 | Economy/Resources

Duowei: China’s Rise May Be Entering a Bottleneck Period; Two High-Level Officials Disclosed “Internal and External Problems”

Recently, the “2018 China Enterprise Credit Development Forum and the 9th Public Welfare Ceremony for Integrity” were held in Beijing.

He Zhen, former Deputy Chairman of the NPC Financial and Economic Committee, said in a speech at the forum that China’s local debt is estimated to be about 40 trillion yuan ($6.24 trillion). Although the scale is still within the acceptable range, none of the local governments want to repay their debts. “Now, if you want someone to repay these debts, he will say that we don’t even have the money to pay wages; we are having big financial difficulties. What are we going to do? Therefore, regarding those debts that are owed at present, before any mention is made about paying down the principal, they can’t even pay the interest that is due.”

He believes that China has issued too much currency. The data shows that, at the end of 2017, M2 was 167.68 trillion yuan , ($26.158 trillion), which is 25 percent of what China’s GDP was that year and is higher than any other country in the world.

At another conference, Li Ruogu, President of the China Export-Import Bank, expressed his views on China’s external situation. He specifically mentioned that the U.S.’s judgment about China has undergone a fundamental change. Sino-U.S. trade friction is essentially a controversy on the direction of China’s development.

Li Ruogu said that Sino-U.S. relations will not continue along the path they have taken over the past 40 years. Specifically, in the United States, no matter what party or class, most of them advocate a tough attitude towards China. This allows the U.S. to move beyond the partisan line on its China strategy and operate quickly and effectively.

Source: Duowei News, May 22, 2018
http://news.dwnews.com/china/news/2018-05-22/60059651.html

Briefings | | May 25, 2018 | Government/Politics US-China Relations

Duowei: Xi Jinping Talked about ZTE on Five Occasions and Warned the Military Not to Fall behind in Technology

In April, 2018, the Trump administration announced that it would implement an embargo prohibiting U.S. companies from selling core components, including semiconductor chips, to the Chinese company ZTE. {The company was punished because it violated the United States sanctions against Iran and North Korea and then lied about it.} ZTE’s main business became paralyzed at once. China’s neck was being chocked in the area of core technology. This instantly sent a shockwave across China’s ruling circles and society. In the short one month period since the incident took place, Xi Jinping, China’s top leader, has spoken out about it five times. He said that “a great power can’t rely on other people for important tools.” He issued a call to catch up with the core technology.

As the whole country talked about the ZTE incident and disputed the policies over {the development of technology}, China’s official press published Xi Jinping’s new book, Excerpts from Xi Jinping’s Discussion of the Overall National Security Concept. In the book, Xi raised the core technologies issue to the level of national security. The book stated, even before the recent ZTE incident and the Sino-U.S. trade friction, that Xi had decided that China should have control of its own chips, operating systems and other core technologies. In his two speeches in July and August, 2013, Xi claimed that having the advantage of core technologies is essential to gain a strong international presence. “We must make great efforts in key areas and areas where our necks can be choked. This is also true for the military.” Although China has spent a lot of money on upgrading its military, in a speech in 2014, Xi still warned the military because it lagged behind in technology.

On April 17, 2018, the official media People’s Daily published an article responding that China “will increase its investment in chips at any cost.” The media then published news that China would increase capital by another 500 billion yuan (US $78 billion) for a special fund that had first been established in 2014, which will focus on supporting China’s domestic chip production and technology. The support will target three areas, including memory chips, integrated circuit designs, and compound semiconductors.

On May 16, 2018, Xi Jinping inspected the Academy of Military Sciences and re-emphasized the acceleration of independent innovation to achieve breakthroughs in core technologies as soon as possible. In connection with Xi’s recent formation of the Military and Civil Integration Development Committee, this seems to indicate that Xi’s intention is to have the military and military departments take the lead in catching up with China’s core technology.

Source: Duowei News, May 22. 2018
http://news.dwnews.com/china/news/2018-05-22/60059635.htmlfo

Briefings | | May 25, 2018 | Government/Politics

Huanqiu Opinion Article: It’s about Time to Let Australia Pay the Price

Duowei News reported that, on May 22, the Guardian reported that Australian Foreign Minister Julie Bishop raised objections to China’s military activity in the South China Sea during the G20. On May 22, Huanqiu published an opinion article which stated “It’s about time to let Australia pay the price.” According to the article, last year Australia and China’s relationship hit rock bottom. Australian officials have constantly complained to the media about China’s infiltration and interference in Australia. All the negative media coverage not only hurt the relationship of these two countries but also damaged the living environment of the overseas Chinese living in Australia. The article went on to state, “It is about time to show China’s position and make Australia pay the necessary price for its past attitude toward China.” The article further stated that in order to teach Australia a lesson, China could substitute other trade imports for certain imports from Australia, such as wine and beef. If China could reduce its imports by US$10 billion from total imports of US$76.4 billion, it would shock the Australians. The article went on, “We need to teach them a lesson. Also we can let the outside world understand that it is not a good thing for them to pick a fight with China.”

Sources:
1. Huanqiu, May 22, 2018
http://opinion.huanqiu.com/editorial/2018-05/12076890.html
2. Duowei News, May 22, 2018
http://news.dwnews.com/global/news/2018-05-22/60059706.html

Briefings | | May 23, 2018 | 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.