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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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Higher Income Tax, Social Security Fees and an Over-priced Housing Market Drove Up Labor Costs in China

Well-known Chinese news site Sina recently published a news article discussing the 2018 China Green Companies Summit that the China Entrepreneur Club sponsored. Xu Shanda, the former Deputy Director-General of the Tax System Reformation Department of the State Administration of Taxation (SAT) spoke at the summit.  Xu stated that the higher personal income tax rate, social security fees, and the over-priced housing market are the three main causes that have driven the increase in labor costs in China. Currently, the personal income tax rate in China is at 45 percent, which is much higher than in developed countries. Xu also called for speeding up personal income tax reform.

Source: Sina, April 22, 2018
http://finance.sina.com.cn/china/2018-04-22/doc-ifznefkh8378239.shtml

Briefings | | |   Economy/Resources

DW Chinese: German Government Will Tighten the Rules on Acquisitions from China

Deutsche Welle Chinese recently reported that German Federal Minister of Economic Affairs and Energy, Peter Altmaier, said not long ago in Berlin that, since more and more Chinese investors have shown an interest in acquiring German companies, the government has been considering tightening up its foreign investment policies. Traditionally, the government would only interfere with a foreign acquisition when the deal was above 25 percent of the total market value of the company. The German government is now considering lowering the veto threshold to 10 percent. In the past, the German government typically stepped in when public security was at risk. Now, more and more consideration is given to the strategic position of the company, as well as whether the buyer is from a European Union member country or not. It is notable that Minister Altmaier picked up on this topic right before German Chancellor Angela Merkel’s visit to the United States.

Source: Deutsche Welle Chinese, April 27, 2018
https://bit.ly/2FpROlk

Briefings | | |   Geo-Strategic Trend

HKET: China Smartphone Market Suffered Largest Quarterly Setback in History

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that the Mainland’s first quarter smartphone sales suffered a year-over-year decline of 21 percent. Total smartphone handset volume dropped below 100 million to 91 million. This was the lowest point since 2013 and was the biggest quarterly decline in history. With the exception of Huawei and Xiaomi, all smartphone vendors saw a sales decline. Apple iPhone’s sales ranking fell out of the top-four list. At this point, Huawei, Oppo, Vivo and Xiaomi – all are domestic manufacturers – lead China’s smartphone market. The top-four occupy 73 percent of the Chinese Mainland market. Analysts expressed the belief that Apple’s lack of innovation (except for the iPhone X) and high price were the reasons for its loss. In the past two quarters, China’s smartphone market had already suffered a decline. Most of the consumers in the market have completed the conversion from basic phone to smartphone. As the quality and lifespan of a smartphone improve, customers have less of an interest in switching to a handset.

Source: Hong Kong Economic Times, April 27, 2018
https://bit.ly/2vWadXp

Briefings | | |   Economy/Resources Information/Technology

Samsung Intends to Expand in Vietnam

Well-known Chinese news site NetEase recently reported that Samsung’s CEO Koh Dong-jin told Vietnamese Prime Minister Nguyen Xuan Phuc of his intent to expand the scale of Samsung’s manufacturing in Vietnam. Samsung is Vietnam’s largest foreign investor. In 2017, Samsung Vietnam achieved US$54 billion in exports for Vietnam. This amounted to one quarter of the nation’s total export income. According to the Vietnamese government, Samsung has established eight manufacturing factories and one research and development (R&D) center in Vietnam. The total investment from Samsung has reached US$17.3 billion. Vietnam is now Samsung’s largest smartphone manufacturing base. Prime Minister Nguyen also assured Koh with his promise of providing Samsung with the best investment environment for growth. Samsung currently has plans to hire more local Vietnamese workers in Northern Vietnam. Not long ago, Samsung completely closed down its Shenzhen branch in China.

Source: NetEase, April 21, 2018
http://tech.163.com/18/0421/08/DFTD0S4H00097U7S.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

RFA: China Youth Daily’s Online Coverage of Beijing University Sexual Harassment Case Was Deleted Leaving Blank Open Page on Its Website

RFA reported that Beijing University was allegedly covering up a sexual harassment case involving a professor and a female student from 20 years earlier. A currently enrolled Beijing University student asked the University to release the investigation report to the public but the University authorities suppressed her request. On April 29, China Youth Daily circulated a full page article about the incident. Its online version was then deleted, leaving a blank open page on its website. In its deleted article, China Youth Daily reported that Beijing University lagged behind in following the requirement of the Ministry of Education to disclose university information to the public voluntarily. Its ranking dropped below the top 50 in the “2016 China Higher Education Transparency Index Report.” Some faculty members and students acknowledged that, as soon as they requested that the university release the sexual harassment investigation information to the public, they also faced pressure from the university authorities. Some came to the conclusion that there is an underlying understanding that the university has shared all they are able to share with the public and that anything beyond that would impact the interests of the university. A twitter posting stated that the head of Ministry of Education reacted with outrage over the China Youth Daily article.

Source: Radio Free Asia, April 29, 2018
https://www.rfa.org/mandarin/Xinwen/6-04292018164149.html

Briefings | | |   Government/Politics

Chinese Military Airplane Trespasses into Korean Air Defense Identification Zone

On April 28, the second day after the historical meeting between South Korean President Moon Jae-in and North Korean leader Kim Jong-un and their signing of the Panmunjom Declaration, Chinese military aircraft trespassed into the Korea Air Defense Identification Zone (KADIZ) without notifying Korea ahead of time. According to a YouTube posting from the Korean Television Station Arirang TV, the plane entered the zone at 10:44 am Korean Time. It flew close to Pohang Southeast of Korea and then headed towards Ulleungdo in Northeast Japan. The plane flew out of the zone at 2:33 pm. A Korean fighter jet was forced to monitor the movements. Beijing later claimed it was conducting normal training exercises within legal international air space. Epoch Times reported that this is the third time that Chinese military aircraft trespassed KADIZ in 2018. The last two times were on January 29 and February 27. The one on February 27, in particular, drew 10 Korean fighter jets to monitor the airspace and a complaint that the Defense Ministry of Korea sent to the Chinese Embassy in Korea. The article also mentioned that other than KADIZ, in recent months, Chinese military aircraft did the same trespassing in the southern part of Japan and in the airspace near Taiwan.

Sources:
1. Arirang TV, April 28, 2018
https:// www.youtube.com/watch?v=1h5S4i_4PV4
2. Epoch Times, April 28, 2018
http://www.epochtimes.com/gb/18/4/28/n10344780.htm

Briefings | | |   Geo-Strategic Trend

Huanqiu Opinion Article: Xi-Modi Talks Set a New Milestone for Rational Relations in Asia

Huanqiu published an opinion article in which it stated, “A brand-new positive situation is forming around China. Some strategic risks are tending to ease. The possibility of serious conflict between China and individual surrounding forces due to specific disputes has dropped to a historical low. … The stability of China’s peripheral relations will reduce the likelihood that external forces around China will deliberately make a choice and intervene, thereby reducing the risk of conflict between China and the United States in matters concerning China’s major interests.” The article was referring to the recent softening relationship between China and India, Japan, the Korean Peninsula, the Philippines and Vietnam. It stated that Beijing made the effort to adjust its policy with its neighboring countries which has enabled those countries to realize that China’s rise is an opportunity for them rather than a threat. When friction arises, China and the neighboring countries need to appreciate each other and no one can force Asian countries to confront each other. The future of Asian peace and prosperity lies in the hands of Asians.

Source: Huanqiu, April 28, 2018
http://opinion.huanqiu.com/editorial/2018-04/11941089.html

Briefings | | |   Geo-Strategic Trend

Huanqiu: Do Not Boycott U.S. Goods

Huanqiu, which is a subsidiary under People’s Daily, published an article asking the Chinese people not to boycott U.S. goods. This represents a rare positional shift for Huanqiu, which, since last month, has taken a hard line against the U.S. on the trade war between the U.S. and China.

The article stated that the American media have claimed that China has an ultimate weapon against the U.S., which is to mobilize the whole nation to boycott U.S. goods. “However, it could be a trap to hurt ourselves.”

“There is no ‘winner’ in a trade war. Each party tries to minimize its losses. That’s why China does not want to have a trade war and also why many U.S. main-stream media are against Trump on this.”

“American companies are already tightly integrated into China’s economy.” “They also play an important role in China’s economic and technology development.” The article concluded that boycotting American companies and goods will hurt China’s economy and factories.

Source: Sina, April 22, 2018
http://news.sina.com.cn/c/2018-04-22/doc-ifznefkh5274114.shtml

Briefings | | |   US-China Relations