Chinascope – Page 499

In the Trade War, China Should be Careful about a United West

Well-known Chinese news site Sina recently published an online commentary analyzing the roles played internationally in the upcoming “trade war” that U.S. President Trump started. It seems Mr. Trump’s card of steel and aluminum duty exemptions was designed to force the traditional allies to align with the U.S. position against China. Although the EU governments have not made any announcements, yet some EU media are already setting the stage for a “United West.” For example, Frankfurter Allgemeine Zeitung (FAZ, the German national daily newspaper) came out in favor of standing “shoulder to shoulder with Washington.” At the same time, Finanz und Wirtschaft (the Swiss financial newspaper published in Zurich) also published an article, pointing out that the EU faced the same “admission to market” barriers in China that the United States faced. Handelsblatt (Germany’s largest financial newspaper) published its commentary describing Trump’s trade war as “not intended to fire at Europe,” saying that the EU should find a “common ground” with the U.S. to battle China’s unfair trade tactics. Looks like the EU countries are forming their strategy based on choosing an ally. At this historic moment, shouldn’t China take some action?

Source: Sina, March 26, 2018
http://finance.sina.com.cn/stock/usstock/c/2018-03-26/doc-ifysqfnh0766292.shtml

Briefings | | April 3, 2018 | Economy/Resources Geo-Strategic Trend US-China Relations

FT Chinese: China Asked Chinese Hackers not to Participate in Competitions

Financial Times Chinese recently reported that the Chinese government has asked Chinese hackers not to participate in global hackers’ competitions. Instead, the Chinese hackers are required to report the bugs they have discovered to China’s national security government branches or to the original technology vendors. China has been tightening up its control of technology and information. Experts expressed their belief that China wants to expand its technical intelligence “reserve.” Some said China could see the bugs as opportunities to explore back doors to systems. This recent move is in line with other new requirements, such as requiring foreign vendors to store domestically collected data locally in China. Another effect of asking the Chinese hackers not to join the global events is to ensure that some important (Chinese) technicians be absent from many international gatherings that are typically considered an important venue to root out dangerous technical vulnerabilities. Chinese hackers have discovered many known system vulnerabilities. Although the Chinese government has not publicly announced anything yet, no Chinese hacker showed up at the Black Hat global conference held in Singapore a few weeks back. This largest global hackers’ conference used to be packed with Chinese hackers.

Source: FT Chinese, March 28, 2018
http://www.ftchinese.com/story/001076933

Briefings | | April 3, 2018 | Information/Technology

China May Start Paying for Oil Imports with Chinese Yuan

Well-known Chinese news site Sohu recently reported that, based on what sources told Reuters, China may have taken the initial steps to use its own currency to pay for imported oil. Some actions may be taken as early as the second half of this year. This is a critical step on the path to RMB internationalization. The Chinese authorities have informally notified multiple financial organizations to get ready for oil transactions to be priced in Chinese yuan. China is now the world’s second largest oil consumer. In 2017, China surpassed the United States to become world’s largest oil importer. China’s demand for oil is now an important factor that determines the global price of oil. Based on the current plan, Russia and Angola could be the first two “trial sources” for China to pay in RMB. The two countries are both key suppliers for China, and both of them want to avoid settling in U.S. dollar as well. If this plan succeeds, the same rules can apply to the transactions for other natural resource imports.

Source: Sohu, March 29, 2018
http://www.sohu.com/a/226717864_115479

Briefings | | April 3, 2018 | Economy/Resources

The Fall of AnBang Group is only the Beginning in Fighting the Financial Risk War

New Tang Dynasty Television reported that, on March 30, China aired the video trial of Wu Xiaohui, formerly of the Board of Directors of the AnBang Group, for allegedly being involved in a series of financial fraud schemes. The video showed that, in the beginning. Wu refused to plead guilty. In the end, however, he was seen sobbing and asked for forgiveness and a lighter judgment from the court. As the grandson-in-law of Deng Xiaoping, Wu started the AnBang Group in 2004 as a private insurance company in Ningbo City. It attracted a number of investors, including Shanghai Automotive Industry Corporation and China Petroleum and Chemical Corporation. AnBang was reported to have close ties with Jiang Mianheng (the son of Jiang Zemin) and Zeng Qinhong. Within ten years, the AnBang Group grew from a small insurance company to a financial empire with capital of 800 billion yuan (US$123 billion). Duowei News published a blog article which stated that, for the AnBang Group, for such fast growth, it must have had deep political ties backing it. It is an indication of the urgency for proper supervision in China’s financial industry and the reason why Xi Jinping listed financial risk prevention as one of the three battles to fight in the next three years. The article stated that Wu’s trial only marks the beginning of the war and that the shakeup of the financial industry will get deeper and tougher. China watchers in the U.S. said it is part of a new policy to prevent money from flowing out of the country via foreign real estate investments.

AnBang is best known in the U.S. for buying the Waldorf Astoria hotel in New York.

Sources:
1. New Tang Dynasty, March 30, 2018
http://www.ntdtv.com/xtr/gb/2018/03/30/a1369588.html
2. Duowei News, March 20, 2018
http://blog.dwnews.com/post-1013187.html 3. Forbes, February 28, 2018 https://www.forbes.com/sites/lcarrel/2018/02/28/china-starts-chinese-new-year-by-seizing-anbang/

Briefings | | April 2, 2018 | Government/Politics

Duowei News: CCDI Took Down the First “Tiger” in 2018

Duowei News reported that the Central Commission for Discipline Inspection (CCDI) issued a notice that Feng Xinzhu, Deputy Governor of Shaanxi Province, was “expelled from party membership and stripped of his public office title” for violation of political discipline and rules. Feng is the first “tiger” who went under investigation this year, on January 3, 2018. The article reported that there have been 21 Deputy Governors from 15 provinces taken down since the 18th Congress.

Source: Duowei News, March 31, 2018
http://news.dwnews.com/china/news/2018-03-31/60049233.html

Briefings | | April 1, 2018 | Government/Politics

Chinese Lieutenant General Boasts about China Taking over Taiwan in Three Days

China’s state media, the Global Times, published an article that Former Vice Commander of the Nanjing Military Region, Lieutenant General Wang Hongguang, wrote boasting about China taking over Taiwan in three days with “six fighting means.” The article is related to the U.S. Congress having recently passed the “Taiwan Travel Act.” The six fighting means include the following:

The first is firepower. During the preparation phase, the three waves of firepower assaults are based on artillery missiles, plus three waves of aviation firepower supplements. According to computer simulations, one-third of Taiwan’s important targets should be destroyed, and other important targets and general targets should be suppressed, making them lose their functions within 48 hours.

The second is hitting the targets. The U.S. military determined that there are more than 700 strike targets in North Korea (1.2 million troops). Taiwan’s military has only about 200,000 troops, so at best it will have 200 to 300 targets. The military objectives in Taiwan have two characteristics that make them easy to beat. One is that they are concentrated; the other is that they are exposed.

The third is a three-dimensional battle. The fourth is information (including an electromagnetic network) warfare. The fifth is special operations. Our military has a special warfare division in each war region. It is a good opportunity for practicing fighting used in Taiwan. The sixth is psychological (including the law and public opinion) warfare.

The article concluded that after the joint, sustained and fierce attack of the ‘six means of warfare,’ ‘Taiwan independence’ forces could be sustained for no more than three days.

Source: Global Times, March 27, 2018
http://taiwan.huanqiu.com/article/2018-03/11697635.html

Briefings | | March 29, 2018 | Defense/Military

Tsinghua University Professor Sun Liping: “China Cannot Afford a Trade War”

According to an Epoch Times report, Sun Liping, a professor of sociology at Tsinghua University, recently published an article on his “Sun Liping Social Watch” WeChat public account saying that, “China cannot afford to fight (a trade war with the United States).” The article was blocked soon after it was published. Sun Liping is also known as Xi Jinping’s doctoral mentor at Tsinghua.

Sun Liping talked about three points in his article: 1. The trade war is a product of changes in the U.S. strategic thinking. Some unwise words and actions in China have played a triggering role. 2. China cannot afford to fight and cannot fight. 3. China will make major concessions.

As for why “China cannot afford a trade war,” Sun said, “We often say that a trade war is a lose-lose game. Both China and the United States cannot afford to lose, but the reality is that it’s even more so for China. One must be sober about this.”

The article said, “The details about the advantages and disadvantages are insignificant. The following are key factors: In terms of resources, the rich natural resources in the United States can make it possible for it to develop for a considerable period of time under the conditions of retreat from the country; whereas we rely heavily on the external market for resources. Most cutting-edge technologies are held in the hands of the United States and we rely heavily on U.S. technology. Most of our foreign exchange comes from the U.S. Without these foreign currencies, we cannot import the necessary grain, oil, and chips. The United States has many allies. Leaving China aside, although the U.S. economy will be hit hard, it still has a vast market, whereas we do not have any such privilege.”

The article also stated that, “If the trade war goes to the extreme, it will at most hit the U.S. economy very badly, but it is a survival issue for us.” “The only disadvantage of the United States is the pressure that will result from the domestic anti-trade war.”

Source: Epoch Times, March 26, 2018
http://www.epochtimes.com/gb/18/3/26/n10251152.htm

Briefings | | March 29, 2018 | US-China Relations

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.