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Mainland Uses a Three Step Strategy to Infiltrate Taiwan’s Media

On May 3, Taiwan Broadband Communications, a major cable TV provider, cut the transmission of the FTV news channel following its failure to reach agreement over increases in content authorization fees. The decision affects around 750,000 households including 250,000 in southern Taoyuan. In the statement that FTV news issued, it alleged that Terry Gou, owner of Taiwan Broadband Communications, has vast interests in its investments in the mainland and could be under pressure to make the “proper” decision. In an interview with Epoch Times about this topic, Su Ziyun, CEO of the Tamkang University Center for Advanced Technology (CAT) commented that there is no sound evidence to prove that this speculation is correct but he did acknowledge that China has deeply infiltrated Taiwan’s media. According to Su, the approach that the mainland uses can be summarized as involving a three step strategy. The first step is to make an equity investment in a media in order to acquire it. The second is to make use of marketing channels to gain control of or cut off any other media that they have not been able to acquire or that are unfriendly to China. The third is to invest in a media’s content and to influence the selection of the programming. Su said that the third one is the most concerning because the mainland can select the information that benefits it the most and, in addition, that it can filter out any programs that are unfriendly to China.

Source: Epoch Times, May 8, 2018
http://www.epochtimes.com/gb/18/5/8/n10372305.htm

China Sends Export Shipment to Iran – Signaling Its Challenge to Washington

According to an article that Deutsche Welle published, President Trump announced the U.S. withdrawal from the Iran Nuclear Deal on May 8. Two days later, China sent a freight train carrying 1,150 tons of sunflower seeds heading to Tehran, the capital of Iran. The article commented that it is hard not to conclude that the timing of the shipment was a signal that China and Iran sent to challenge the decision that the Trump administration made. The article stated that China entered into a trade agreement with Iran two years ago with a trade target to grow to US$600 billion over the next ten years. For China, Iran is a major component of its “One Belt One Road” project in opening up the middle Europe and China – Africa economic corridor. Meanwhile China buys 1/3 of its oil from Iran and is the largest oil buyer for Iran. In the first quarter of 2018, China’s imports from Iran averaged 658,000 barrels of oil each day, up 17.3 percent from the same period in 2017. The article also mentioned that the spokesperson for the Ministry of Foreign Affairs said that China opposes the U.S. decision to withdraw from the Iran Nuclear Deal.

Source: Deutsche Welle, May 11, 2018
http://www.dw.com/zh/%E4%B8%AD%E5%9B%BD%E7%81%AB%E8%BD%A6%E5%BC%80%E5%BE%80%E4%BC%8A%E6%9C%97-%E5%8F%AB%E6%9D%BF%E5%8D%8E%E7%9B%9B%E9%A1%BF/a-43737441?&zhongwen=simp

China Forms Federation of Internet Societies

People’s Daily reported that the China Federation of Internet Societies (CFIS), a national confederation of internet social network organizations, was formed on Wednesday May 9. The group consists of 300 Internet organizations and enterprises, including 23 national organizations and 277 local ones. The management team includes Jack Ma, founder of the Alibaba Group and Huateng Ma, founder of Ten Cent. According to the article, the mission of the Federation is to “work under the leadership of the Chinese Communist Party and government to promote social network development utilizing numerous social resources.” The president of the Federation vowed that the Federation will “adhere to the correct political direction; advocate for the social network organizations to play a functional role, be a defender for their interests, promote party organizational development work within the organizations; oversee the operation of the organizations and promote the healthy and orderly development of social network organizations with the assurance of following the rule of law.”

Source: People’s Daily, May 10, 2018
http://media.people.com.cn/n1/2018/0510/c40606-29975868.html

Article with Chinese Premier Li Keqiang’s Byline Published in Japan

Before his visit to Japan, Chinese Premier Li Keqiang published an article with his byline in a Japanese mainstream media. The article was titled, “Let the Sino-Japanese Peace, Friendship and Cooperation Restart.” The article started with mentioning the short distance between China and Japan. Li said he regretted that it took a long time to push the development of a better relationship. As the second and the third largest economies in the world, it will truly benefit Asia and even the world if the two nations have a healthy relationship. This year marks the 40th anniversary of the Sino-Japanese Peace and Friendship Treaty. Given the global challenges and the regional situation changes, cooperation among China, Japan and Korea will benefit the regional integration process of establishing the East Asian Economic Community. China is committed to peace and openness, which are required to ensure sustained economic growth. The economic complementarity between China and Japan is very strong. Li expected that his visit would witness the signing of a series of mutual economic cooperation agreements, as well as a local currency swap agreement. China will announce the grant of Renminbi Qualified Foreign Institutional Investor (RQFII) status to Japanese investors. Li also called for exchanges in culture, tourism and youth activities.

Source: Official Website of Chinese Central Government, May 8, 2018
http://www.gov.cn/xinwen/2018-05/08/content_5289035.htm

NBD: Lenovo Showed World’s Worst Stock Performance

National Business Daily (NBD), a Chinese national daily newspaper which reports business news, recently reported that the Hong Kong Hang Seng Index announced on May 4 that it would remove Lenovo from its index of constituent stocks. Since Lenovo was included in Hang Seng’s index of constituent stocks in 2013, Lenovo has lost 56 percent of its value. According to Bloomberg, of 171 global technology stocks, Lenovo had the worst stock performance. In the past five years, it appears the Lenovo Group could not manage to sustain a healthy growth in its core business of PC manufacturing as well as the growth of its business of mobile devices. A large number of competitors in China grew at a much faster pace. In 2017, on a global level, the U.S. company HP took back its number one PC manufacturer title from Lenovo. As the Motorola brand owner, Lenovo was China’s number one smartphone vendor in 2014. However, by the end of 2017 Lenovo had only one percent of China’s smartphone market share. Lenovo responded to press inquiries saying the company is entering a new growth era, and Hang Seng’s poor rating will not have a concrete long term negative impact.

Source: National Business Daily, May 5, 2018
http://m.nbd.com.cn/articles/2018-05-05/1214319.html

CEFC China Energy Company Failed To Make Its ROSNEFT Stock Purchase

According Russian news agency Sputnik, Glencore, an Anglo–Swiss multinational commodity trading and mining company, announced that it would stop selling the ROSNEFT shares that Glencore and the Qatar sovereign fund QIA owned jointly to CEFC China Energy Company. ROSNEFT is Russia’s national oil company. The cancelled US$9.1 billion deal would have allowed CEFC China Energy to acquire 14.16 percent of ROSNEFT. The Chinese financial news organization Caixin confirmed the news and also reported that CEFC China Energy currently faces the deep trouble of a debt crisis. Its phase-one payment on the ROSNEFT deal was not in place. CEFC China Energy’s US$400 million deposit will not be refunded.

Sources:
1. Sputnik Chinese, May 5, 2018
http://sputniknews.cn/politics/201805051025315260/

2. Caixin, May 5, 2018
http://companies.caixin.com/2018-05-05/101244298.html

Xi Jinping Inspects “Chips” Industry: “In the Past, by Tightening Our Belts, We Built Two Bombs and One Satellite!”

On April 26, while visiting the Wuhan Fiber Home Technologies Group, Xi Jinping said, “The optical communications industry is very important. To build a nation that is an Internet power, we need to accelerate the pace and quickly occupy some commanding heights.”

“In the past, by tightening our belts and gritting our teeth, we built ‘two bombs and one satellite!’” Xi said, (referring to a Mao-era weapons development program), “This was because we made the best use of the socialist system — we concentrated our efforts to get great things done. The next step is to do the same with science and technology. We must abandon fantasy and rely on ourselves.”

On the morning of the April 26, Xi Jinping went to the Wuhan Xinxin Integrated Circuit Manufacturing Co., Ltd. to look at the integrated circuit production line. Xi said, “in order to realize the ‘bicentennial goal (by 2050),’ we must overcome difficulties on our own so as to have some major core technologies. We have unprecedented opportunities and are facing unprecedented challenges.”

Source: Xinhua, April 26, 2018
http://www.xinhuanet.com/2018-04/26/c_1122749077.htm