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Sina Commentary: We can Never Win if we are just working as the delivery person

On April 16, The U.S. Commerce Department’s Bureau of Industry and Security, or BIS launched a 7-year tech ban that prevents U.S. companies from selling components and technology to ZTE. It cited “ZTE not only for violating export controls meant keep sensitive American technology out of the hands of hostile regimes like Iran’s; ZTE also lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts.” On April 19, Sina published a commentary article which is titled “Inspiration from the ZTE Incident: We can Never Win if we are just working as the delivery person.” The article provided the timeline and background of the ban and made the following statement: To such an extent, there is nothing ZTE can do… They have themselves to blame… We should understand that winning the war in the modern era will not simply rely on airplanes or naval vessels. The rise of big powers cannot rely on the exaggeration of the slogans from CCTV or other patriotic propaganda. But rather it involves the accumulation of “lonesome” time and effort in investment in core technology development. According to an article Aboluowang published on April 22, Xi’s recent speech at the National internet security and information work conference held on April 20 and 21 in Beijing could be interpreted as the first news report on Xi’s reaction to the ZTE ban. In his speech, Xi stressed that “core technology is an important weapon for a country and (we) must be determined and persistentent in speeding up the breakthrough in core technology.” Xi also mentioned that “China needs to formulate a fair market environment, strengthen intellectual property protection, and oppose monopolies and unfair competition.” The Aboluowang article commented that, given China’s existing business environment and political system, it is not optimistic as to how much of Xi’s wish can be realized.

Sources:
1. Sina, April 19, 2018
http://tech.sina.com.cn/it/2018-04-19/doc-ifzihnep7718716.shtml
2. Aboluowang, April 22, 2018
http://www.aboluowang.com/2018/0422/1103289.html
3. Xinhua, April 21, 2018
http://www.xinhuanet.com/politics/2018-04/21/c_1122719810.htm

Options for Manufactures in the Pearl River Delta Economic Zone if the Trade War were to Begin

According to an article Hong Kong Economic Times published, if the trade war between U.S. and China were to begin, manufacturers in the Pearl River Delta Economic Zone might be looking at the following options. The first option is to relocate their production line or setup a warehouse in Malaysia, Vietnam, or Thailand, to avoid increases in the tariff. The second option is to forge a fake product bar code or change the country of origin to countries such as Mexico but there will be legal consequences with this approach. The third option is just close the door. The manufactures who make common products such as light bulbs or LED flat panels would face greater risks of closing the door. The last option is to pass the increase to the consumers in the U.S. who will end up paying an extra 30 to 35 percent. Currently, the Pearl River Delta Economic Zone produces 25 percent of the export volume in China. The article stated that companies in the zone will face the largest threat of survival if the U.S. and China trade war were to begin.

Source: Hong Kong Economic Times, April 16, 2018
http://china.hket.com/article/2050843/珠三角恐成貿戰「焦土」%20廠商只有三條路走?

RFI: Publicity Department issued a notice not to air Documentary Movie “Amazing China”

Radio France Internationale reported that, according to a news report from Apple Daily, the Publicity Department has issued a notice to online video sites including Tencent, Youku and Iqiyi as well as movie theaters nationwide, to call off airing the documentary “Amazing China.” Some have speculated that the notice resulted from the recent trade war between China and the U.S. and the U.S. tech ban on ZTE, which could force ZTE out of business. According to Asia Times, The Shenzhen-based telecom and communications giant is among a slew of Chinese startups, innovators and private and state-owned conglomerates that was featured in the film. An internet posting asked, “Are we scared of the U.S. imperial sanctions?” According to Xinhua, “Amazing China” introduces a series of major developments the country has made since the 18th National Congress of the Communist Party of China in 2012, including the world’s largest radio telescope, FAST; the world’s largest maritime drilling rig, Blue Whale 2; and the development of 5G mobile technology.

Sources:
1. Radio France Internationale, April 20, 2018
http://cn.rfi.fr/%E4%B8%AD%E5%9B%BD/20180420-%E4%B8%AD%E5%9B%BD%E4%B8%8D%E5%86%8D%E5%8E%89%E5%AE%B3%E4%BA%86%E5%8E%89%E5%AE%B3%E4%BA%86%EF%BC%8C%E6%88%91%E7%9A%84%E5%9B%BD%E8%A2%AB%E4%B8%8B%E4%BB%A4%E5%81%9C%E6%92%AD

2. Xinhua, March 9, 2018
http://www.xinhuanet.com/english/2018-03/09/c_137027801.htm

3.Asia Times, April 23, 2018,
http://www.atimes.com/article/propaganda-film-quietly-pulled-beijing-zte-ban/

RCI Chinese: China is Strongly Against Adding Labor Protection into FTA

Radio Canada International (RCI), Chinese Edition, recently reported that Lu Shaye, China’s Ambassador to Canada, said China stood strongly against the Canadian idea of adding any conditions to protect labor to the Free Trade Agreement (FTA) between China and Canada. Lu also commented that Canada’s position in NAFTA to protect Mexican workers could also result in increased unemployment in Mexico. Due to the fact that Canada asked conditions be added, such as environmental protection, equality of men and women, as well as labor rights protections, the negotiation of a Free Trade Agreement between China and Canada remains highly uncertain. Canadian Prime Minister Justin Trudeau could not convince the Chinese leadership to accept these protections. Lu also called for a “fair Canadian position” on the U.S.-China trade war. For decades, the Chinese Communist Party has claimed to represent the best interest of the Chinese workers, against capitalism.

Source: Radio Canada International, April 10, 2018
http:// www.rcinet.ca/zh/2018/04/10/143779/

 

HKJA: Survey Showed HK Public Gave Low Score to HK Freedom of the Press

The Hong Kong Economic Journal, the city’s first financial newspaper, founded in 1973, recently reported that the Hong Kong Journalists Association (HKJA) released its annual report on the recently conducted survey on freedom of the press in Hong Kong. The city’s general public gave a score of 47.1 (out of 100), which is 0.9 points lower than last year. Professional reporters scored freedom of the press at 40.3. Over 70 percent of the reporters surveyed believed that the overall freedom of the press was worse than last year. Most of the people in the sample of professional journalists and in the sample population of the general public expressed their belief that the pressure from the Mainland government has been hurting Hong Kong’s freedom of the press. Several central government officials have pressured the local government and the local media to self-regulate when they report the news.

Source: Hong Kong Economic Journal, April 11, 2018
https://bit.ly/2vf9mkd

China’s Second Aircraft Carrier Will Soon Have Its First Sea Trial

Well-known Chinese news site Sina recently reported that China’s second aircraft carrier is scheduled for its initial sea trial in about two weeks. Leaked photos showed that its phased array radar installation reached completion. The sea trial date is likely to be around China’s Naval Army Day (April 23). Chinese Naval experts explained that the new and fully domestically designed carrier will not serve as a training vessel. Instead, it will be a combat vessel. The carrier is also to gain more design experience for the next one. However, this upcoming new carrier will not deploy catapult take-off technology because China’s carrier aircraft still needs improvements. Also, if a carrier were to use electromagnetic ejection technology, it would require high electric power, which may be too difficult for a conventionally powered carrier. The new carrier has tens of millions of parts. The full cycle of preparation, design, research, and development, as well as construction will require highly comprehensive experience to mature.

Source: Sina, April 9, 2018
http://news.sina.com.cn/c/2018-04-09/doc-ifyvtmxe6197797.shtml

China Uses 15 to 17 Percent of GDP to Pay Interest Each Year

According to an article the Jing Rong Jie (Financial World) website published, during the Tenth Chinese Mulan (Women) Entrepreneur Annual Conference held on April 14 in Beijing, Mao Zhenhua, the Founder and Chairman of China Chengxin Credit Management Company gave a speech in which he stated that, each year, China spends 15 to 17 percent of its GDP to make its interest payments. It is therefore facing an unprecedented economic and financial crisis. As a result, financial risk prevention has become the top priority for the country to deal with. According to Mao, with the large amount of capital injection following the 2008 world financial crisis as well as the country’s strong economic growth policy, China has emerged as the world’s economic power. However, China has also become the country that prints the most money in the world. Almost all the companies in China suffer from a huge amount of debt. Meanwhile China has surplus production and faces the issue that the supply is greater than the demand, as well as the issue of the price level of its stock and its real estate is too high. All of these have created an economic bubble that could lead to a financial crisis and therefore, in 2017, the government took tighter control of the economy. This control is expected to continue over the next few years.

Source: Jing Rong Jie, April 14, 2018
http://opinion.jrj.com.cn/2018/04/14225824390437.shtml