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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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Mingpao: China’s 2023 Foreign Direct Investment Hit 30-Year Low

Mingpao, one of the primary Hong Kong newspapers, recently ran a report on data released by China’s State Administration of Foreign Exchange. According to the released data, China’s “Direct Investment Liabilities” in its international balance of payment table rose by just US$33 billion in 2023. This represents a decrease of 82 percent from 2022, marking the lowest level of Foreign Direct Investment (FDI) in  China since 1993.

According to data from the Japanese government, net new investment by Japanese companies in China last year was the lowest in at least 10 years, and was lower than the funds flowing from Japan into Vietnam or India. Taiwanese government data showed that new investment by Taiwanese companies in Mainland China last year also reached the lowest level since 2001, with new investment reaching a year-over-year decrease of 39.8 percent. New foreign investment by Korean companies in China in the first nine months of 2023 also dropped 91 percent compared with 2022, falling to the lowest level since 2002. However, German companies’ direct investment in Mainland China hit record high last year.

Advanced economies across the globe have raised interest rates even as China has been cutting rates to stimulate its economy. Thus international companies are increasingly incentivized to store their cash overseas, outside of China, where they can earn more interest.

Source: Mingpao, February 20, 2024
http://tinyurl.com/3xx4p6r2

Briefings | | |   Economy/Resources Geo-Strategic Trend

China Daily Editorial Advocates French “Strategic Autonomy,” Collaboration with China

China Daily published an English-language editorial on French-Chinese relations titled “France’s insistence on strategic autonomy means it’s immune to bloc confrontation.” The editorial advocates for France and other European countries to collaborate with China and not go along with U.S. attempts at isolating China. Guangming Daily also published a Chinese-language commentary on the editorial.

Here are some excerpts from the China Daily piece:

“This year marks the 60th anniversary of the founding of diplomatic relations between China and France.”

“Thanks to France’s strategic independence, as well as the two countries’ common commitment to multilateralism, Sino-French relations have demonstrated stability and sustainability amid the global volatility. Despite the attempts of the United States to drive a wedge between them, they continue to seek to explore the potentialities of new areas of cooperation.”

“In the 25th China-France Strategic Dialogue … in Paris on Tuesday, “the willingness and openness the French side expressed to continue to deepen the already broad and productive pragmatic cooperation with China was a clear dismissal of the ‘security concerns’ the US has been hyping up with regard to cooperation with China. The green economy, clean technology, nuclear energy, artificial intelligence and aerospace are all ‘sensitive fields’ that the US seeks to exclude China from.

“That, along with the stable bilateral cooperation between China and other major EU members, including Germany and Spain … should serve to prove to the decision-makers of the European Union the necessity of upholding the bloc’s strategic autonomy in handling relations with China, as well as the rationality of providing a fair, transparent and sound business environment for Chinese enterprises. Doing so can help avoid the EU footing the bill for the US’ geopolitical gambling.”

Sources:
1. China Daily, February 21, 2024
https://global.chinadaily.com.cn/a/202402/21/WS65d5eb9fa31082fc043b85dd.html
2. Guangming Daily, February 22, 2024
https://world.gmw.cn/2024-02/22/content_37160410.htm

Briefings | | |   Geo-Strategic Trend US-China Relations

Beijing Demands Banks Lend Financial Support to Real Estate Projects

To help the Chinese real estate sector, which is facing a daunting crisis as companies run out of capital to complete construction projects, Beijing recently ordered its banks to provide financial support to a massive list of real estate projects. This is another case of the Chinese Communist Party attempting to control markets via state power.

On January 5th, 2024, China’s Ministry of Housing and Urban-Rural Development and its National Administration of Financial Regulation jointly issued a “Notice on Establishment of Coordination Mechanisms for Urban Real Estate Financing.” According to the notice, cities at the prefecture level and above are required to establish “coordination mechanisms” for urban real estate financing “with the team leader being the responsible comrade of the city government who is in charge of housing and urban-rural development.” These coordination mechanisms will present financial institutions with lists of real estate projects eligible for financing support within each given administrative region. Financial institutions are to assess the lists and will fast-track credit/financing approval for projects that are in good shape. For projects facing “temporary difficulties” but whose long-term financial outlooks are balanced, financial institutions are instructed to “provide support through extension of existing loans, adjustment of repayment arrangements, and issuing new loans” rather than “blindly withdrawing, suspending, or pressuring existing loans.”

The Xinhua state news agency published an article on February 18 stating that the National Administration of Financial Regulation “held two special meetings to deploy and implement work related to the urban real estate financing coordination mechanism” following initial release of the notice. “By now, most cities have established the coordination mechanism. They have proposed ‘white lists’ of real estate projects and forwarded them to banks.”

According to Xinhua, preliminary data collected by Financial Times (China) showed that 15 commercial banks, including the six major state-owned banks and several joint-stock commercial banks, have engaged financial support for nearly 13,000 projects. The Industrial and Commercial Bank of China (ICBC) has worked on over 2,000 projects, Agricultural Bank of China on over 2,700 projects, and China Construction Bank on over 2,000 projects.

Source:
1. China’s Government Website (Gov.cn), January 5, 2024
https://www.gov.cn/zhengce/zhengceku/202401/content_6925683.htm
2. Xinhua, February 18, 2024
http://www.xinhuanet.com/money/20240218/0688b047bcf246c18b117a962c4a217c/c.html

Briefings | | |   @CS Economy/Resources Government/Politics

People’s Daily on Blinken’s “Table and Menu” Statement

At the Munich Security Conference in Germany on February 17, U.S. Secretary of State Antony Blinken said that the U.S. is in a “strategic competition” with China. He remarked, “If you are not at the table in the international system, you’re going to be on the menu,” emphasizing the importance other countries actively participating in the “multilateral system” alongside the U.S.

People’s Daily published a “quick commentary” responding to Blinken’s “table and menu” statement. Below are some key excerpts from the People’s Daily response:

“This blunt statement by U.S. Secretary of State Blinken once again exposes the fundamental logic of American politics and diplomacy as ‘law of the jungle,’ where the strong prey upon the weak. American politicians are faithful followers of a wolfish culture.”

“America’s history of territorial expansion, wealth accumulation, and strengthening of national power is a history of external plunder, filled with destruction of other countries and the tears and blood of innocent people. From the massacre and land seizure of Native Americans, to the enslavement and exploitation of Africans, to interference and control in Latin America, to the creation of one humanitarian disaster after another in the Middle East — the U.S., in safeguarding its own interests and hegemony, has engaged in launching wars, imposing sanctions, and recklessly subverting other countries. Violence, coercion, deceit, and plunder are the ‘standard options’ in its toolbox, putting everyone on its [dinner] ‘menu.’ Meanwhile, it disregards and tramples upon the morality and order of which its politicians often speak.”

“In recent years, the U.S.’ bullying has become more rampant and ugly. The reason is that America’s hegemonic status is being challenged as the U.S.’ own problems continue to emerge while the increasingly balanced global power and the collective rise of developing countries lead to a deeper hegemonic anxiety. The U.S. has begun to use its military and financial hegemony to continuously transfer crises to the world, reaping benefits all the while. Those placed on the ‘menu’ by the U.S. are not only developing countries but also its allies.”

“In the U.S.’ cruel ‘table and menu’ calculation, European countries seem to sit at the table as allies of the U.S. most of the time. However, the U.S. also puts European countries on its ‘menu’ when necessary, making them the objects on which American capital and politicians feast. The U.S. did just this in exploiting the Ukraine crisis to pressure and squeeze Europe, or in using subsidies to induce companies to move their production bases from Europe to the U.S. This is the basic logic of American politics. This is why Europeans often lament: ‘Americans have stabbed us in the back.'”

Source: People’s Daily, February 22, 2024
http://world.people.com.cn/n1/2024/0222/c1002-40181269.html

Briefings | | |   @CS US-China Relations

Xinhua: “How Much of a Storm Can the West Stir up Using the Death of Navalny?”

Xinhua News Agency published an article claiming that the U.S.-led Western world has used the death of Russian opposition figure Alexei Navalny to “stir up trouble, with the aim of targeting Russia’s upcoming Presidential election.”

The article said that as soon as the news of Navalny’s death came out, “the Western world, led by the United States,” began to collectively condemn Russia, calling Navalny’s death “political persecution.” The Xinhua article quoted several Russian politicians and think tankers who condemned the behavior of Western media and politicians as “absolutely unacceptable and inappropriate.” The article called Navalny an “outdated” political figure and said that he is a “tool” of the Western world to criticize Russia.

According to the article, “Navalny ‘s political stance was constantly shifting between alignment with right-wing, center-left, and nationalist groups. He eventually became an internet sensation, portraying himself as an anti-corruption ‘fighter.’ In the 2013 Moscow mayoral elections, he won 27% of the vote, ranking second. However, since then, his political influence in Russia continued to decline, and the size of the opposition rallies that he called for steadily diminished. Polls in recent years showed his national approval rating hovering near 1%.”

Source: Xinhua, February 23, 2024
http://www.news.cn/world/20240223/b58fee46c52c468eb4f52b5f0293f823/c.html

Briefings | | |   @CS Geo-Strategic Trend

Beijing Says Restrictions on Sales of Stocks Do Not Count as Market Intervention

To force an upward trend in stock market prices, Beijing is taking measures to restrict major institutional investors from conducting net sales of stocks during the opening and closing phases of stock market trading in China. Additionally, Beijing has prohibited institutions from shorting A-share stocks via stock index futures.

On February 22, the China Securities Regulatory Commission (CSRC) responded to reports on the restrictions published by foreign media. The CSRC stated that the regulatory authorities “do not intervene in normal market transactions.” They said that their actions are a measure to “fulfill regulatory responsibilities on trading, and they do not represent a restriction on selling [stocks].” Rather the restrictions are to “crack down on illegal activities such as market manipulation and insider trading.”

Sources:
1. Radio Free Asia, February 22, 2024
https://www.rfa.org/mandarin/Xinwen/10-02222024151556.html
2. Xinhua, February 23, 2024
http://www.xinhuanet.com/money/20240223/d1c45ad547734c3ab892fac1aab2d3cd/c.html

Briefings | | |   @CS Economy/Resources Government/Politics

CCP Unveils World Federation of Daoism in Beijing

Following the teachings of Marxism-Leninism, the Chinese Communist Party’s (CCP’s) official position on organized religion is atheistic, and party doctrine prohibits CCP members from practicing or believing in religions. That being said, the CCP does allow for small numbers of Daoist, Buddhist, and Christians to worship in China provided that they are willing to practice their faiths on the CCP’s terms. This enables the CCP to showcase the “religious freedom” in China. Meanwhile, the CCP enacts continuous “revolutionizing” of those religions and demands that such religious groups bow to the CCP’s leadership.

Recently, the CCP established the World Federation of Daoism (WFD) in Beijing. According to The People’s Political Consultative Conference website, the WFD “is an international, voluntary organization formed by Taoist groups, Taoist temples, Taoist-related institutions and celebrities who believe in Taoism or love Taoist culture in various countries (regions). It is a professional, non-profit social organization with 52 founding members and is located in Beijing, China.”

On January 30, the CCP held an unveiling ceremony at the new WFD headquarters in Beijing. Li Guangfu, Chairman of the WFD, stated that the WFD “has established a new platform for Daoists at home and abroad to unite, collaborate, and explore the contemporary value of Daoist culture.”

Source: People’s Political Consultative Conference website, February 2, 2024
https://www.rmzxb.com.cn/c/2024-02-02/3488359.shtml

Briefings | | |   Government/Politics

A Local Government Urged its Employees to Buy Homes, Help Prop Up Struggling Housing Market

The government of Chikan District in Zhanjiang City, Guangdong Province, China, issued a letter on February 19th urging government employees and state-owned enterprises to buy homes in order to boost the struggling local real estate market. The initiative comes as China’s housing market slump continues and governments at all levels have introduced policies to try to stabilize the property sector.

The letter was sent out by the Chikan District 2024 Lunar New Year Activities Preparatory Committee Command Office. It refers to the current sluggish state of China’s real estate market and says that the Chikan District government has been working on multiple fronts to revitalize the sector, including entering negotiations with real estate firms to offer benefits and discounted “one-price special offer housing” to residents.

The stated goal of the letter was to encourage civil servants and state employees to “take the lead in consumption” and “be the role model” in home-buying so as to revive the real estate industry and restore market confidence. From February 21 to 23, the district will hold a real estate and home decoration exhibition focused on providing preferential housing to potential home buyers, offering deep discounts and concessionary policies.

The letter urges all government organs, enterprises, and institutions to fully mobilize their staff to seize this “favorable opportunity” and proactively purchase housing according to their needs. It also asks them to promote Chikan District to their friends and relatives and encourage them to live in and buy homes in Chikan, sharing in the district’s economic development.

Source: Central News Agency (Taiwan), February 20, 2024
https://www.cna.com.tw/news/acn/202402200334.aspx

Briefings | | |   Economy/Resources