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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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CCP, Master of Hostage Diplomacy

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China’s CRRC Drops Out of Bidding After EU Subsidy Probe

On February 16th, the European Union announced a subsidy investigation against China Railway Rolling Stock Corporation (CRRC). CRRC Qingdao Sifang Locomotive & Rolling Stock Co., Ltd. was suspected of relying on state subsidies to submit a bid with an undue advantage in the tender for electric trains in Bulgaria. The Bulgarian tender was for the purchase of 20 electric trains and maintenance for the next 15 years, with a total value of approximately 610 million euros (660 million US dollars).

On March 26th, the European Commission stated that CRRC withdrew its bid, and that because of the CRRC’s withdrawal, the EU will terminate the investigation.

Thierry Breton, the EU’s Internal Market Commissioner, said “In just a few weeks, our first investigation under the Foreign Subsidy Regulations has already produced results.”

The European Union has recently intensified its scrutiny of Chinese companies that may receive state subsidies to gain bidding advantages. Ursula von der Leyen, President of the European Commission, announced an investigation in September of last year into Chinese government subsidies potentially causing “artificially depressed” prices for Chinese electric vehicles hitting the European market.

Source: VOA, March 27, 2024
https://www.voachinese.com/a/china-withdraws-from-balgaria-tender-20240326/7543652.html

Briefings | | |   Economy/Resources Geo-Strategic Trend

Xinhua Commentary: Pacific Island Countries Should Not be Anyone’s “Backyard”

Xinhua News Agency published a commentary regarding a statement by Linda Thomas-Greenfield, the U.S. ambassador to the United Nations. Thomas-Greenfield made the following statement in an interview on April 1st:

“[The U.S. is] not trying to force countries to choose between us and China. What we’re doing is giving them a choice to make. Many countries will say we’re forced into these relationships because we don’t have other choices. We’re giving them those other choices. And those other choices mean having the U.S. have their backs, having the U.S. standing with them side by side as they address some of the challenges that China is forcing upon them.” [2]

Xinhua called the statement “not only illogical but also a misrepresentation of the facts.” It stated that the Pacific Island countries have the political wisdom to make their own decisions. Below are some translated excerpts from the commentary:

“In recent years, the U.S. has been aggressively promoting the “Indo-Pacific strategy,” from the AUKUS (security partnership among the US, UK, and Australia), to the QUAD (quadrilateral security dialogue among the US, Japan, India, and Australia), and further to the “Blue Pacific Partnerships” initiative (involving the US, Australia, Japan, New Zealand, and the UK). The United States has gone to great lengths in creating various “circles” to contain China, enticing and utilizing Pacific Island nations as a crucial part of its containment strategy. However, the United States underestimates the political wisdom of the Pacific Island countries in discerning the current situation, as well as their determination to pursue an independent and autonomous development path.”

“In April 2022, China signed a government-to-government security cooperation framework agreement with the Solomon Islands. In July 2023, China and the Solomon Islands formally established a comprehensive strategic partnership based on mutual respect and common development in the new era. During the 2024 Boao Forum for Asia Annual Conference, President Lionel Aingimea of Nauru stated that, as a Pacific Island nation and a developing country, Nauru supports “building bridges” rather than “erecting walls” and hopes to construct a more integrated and closely-connected world.”

“Fiji Prime Minister Frank Bainimarama recently stated that China’s assistance to Pacific Island nations has played an important role in regional development.”

“The various slanders and smears by the U.S. against China’s pragmatic cooperation with Pacific Island nations will only expose the U.S.’ domineering attitude of judging others by its own standards. Pacific Island nations are independent sovereign states and not anyone’s “backyard.”

Sources:

Xinhua, April 4, 2024
http://www.xinhuanet.com/world/20240404/7934d20bdc9c476c81c1035425ffdc4a/c.html

CSIS, April 1, 2024
https://www.csis.org/analysis/us-ambassador-united-nations-linda-thomas-greenfield-us-diplomacy-pacific-islands

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

China Makes Progress on eVTOL Aircraft Development

China has made progress in development of electric Vertical Take-Off and Landing (eVTOL) aircraft. China views the eVTOL platform as a revolution in aviation. “Similar to the transition from gasoline cars to electric cars on the ground, [a transition] from gasoline-powered helicopters to eVTOL aircraft [is occurring],” said Xie Jia, Senior Vice President of Fengfei Aviation Technology, Shanghai.

On October 10, 2023, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Ministry of Finance, and the Civil Aviation Administration of China jointly issued an “Outline for the Development of a Green Aviation Manufacturing Industry (2023-2035)” proposing that, by 2025, eVTOLs will achieve pilot operation. The outline further proposes that, by 2035, new types of general aviation equipment characterized by unmanned, electric, and intelligent features will achieve commercialization and large-scale application.

In October 2023, China had its first flight of a 2-ton eVTOL in Shanghai. The aircraft, the M1, was developed by the Future Wing Company in Shanghai. The vehicle became China’s first independently-developed and domestically-produced 2-ton eVTOL. Production was domestic in all three core areas: electric systems, flight control systems, and composite materials. The M1 has a composite wing configuration with 20 rotors, a maximum payload of 500 kilograms, seating for 5 people, a cruising speed of 200 kilometers per hour, and an intended range of 250 kilometers. It can meet short-distance air travel needs within and between cities, shortening travel time from 2-3 hours to around 30 minutes.

In March of 2024, the eVTOL “Shengshi Long” took off from Shenzhen and landed at the Zhuhai, both in Guangdong Province, covering a distance in 20 minutes that would have taken 3 hours by car. This was the world’s first public demonstration of an eVTOL flight that traveled over water and between cities. The aircraft was developed by Shanghai Fengfei Aviation Technology Co., Ltd., with a takeoff weight of 2 tons, seating for 5 people, a cruising speed of up to 200 kilometers per hour, and 100 percent domestic production of its core modules.

Sources:
1. People’s Daily, October 31, 2023
http://sh.people.com.cn/n2/2023/1031/c176738-40623560.html
2. People’s Daily, March 2, 2024
http://ent.people.com.cn/n1/2024/0302/c1012-40187361.html

Briefings | | |   Information/Technology

Ministry of State Security Creates Short Film to Warn Chinese Companies of Spying by Foreign Consulting Firms

Beijing recently held the China Development Forum, where Xi Jinping met in person with representatives of  foreign companies on March 27th and showed an open attitude toward those companies. On March 28th, however, the Chinese Ministry of State Security released a short film warning the Chinese people to be vigilant about foreign consulting companies’ potential theft of sensitive information in key areas.

The ministry’s WeChat account posted the film under the title “Beware! ‘Secret’ Investigations Conceal National Security Risks.” The film charged that, in recent years, “foreign espionage and intelligence agencies” have conducted espionage operations, and that the movie was based on real cases.

The movie lasts about 8 minutes and 22 seconds and is divided into 4 segments for broadcast. It reveals how “foreign espionage and intelligence agencies” instructed “overseas investigative consulting companies” to take advantage when Chinese companies seek overseas investment. These consulting companies conduct comprehensive investigations on the company to “obtain core data and national secrets” resulting in “losses to national security and interests.” They use methods such as enticing company personnel to answer sensitive questions, accessing sensitive information beyond the scope of their work, and filming sensitive files related to core products.

The Ministry of State Security reminded the Chinese people about China’s “Counter-Espionage Law” and its “Regulations on Management of Foreign-Related Investigations,” emphasizing that “national security is everyone’s responsibility.” Citizens who discover “suspicious situations that endanger national security” should immediately call to make a report.

Source: Central News Agency (Taiwan), March 28, 2024
https://www.cna.com.tw/news/acn/202403280311.aspx

Briefings | | |   Government/Politics

Shenzhen Issues Plan to Promote Development of HarmonyOS Operating System

HarmonyOS is a distributed operating system (OS) developed by Huawei for smartphones, tablets, smart TVs, smart watches, personal computers and other smart devices.

On March 3rd, the government of Shenzhen issued the “Shenzhen Support for Open Source HarmonyOS Native Application Development 2024 Action Plan” to promote the Chinese version of this OS.

The plan puts forward specific development goals and directives for the development of the HarmonyOS software ecosystem by the end of 2024:

  • The number of HarmonyOS native applications developed in Shenzhen should account for over 10 percent of the national total;
  • major industries in Shenzhen are to be fully served by native applications targeting HarmonyOS;
  • HarmonyOS development courses will be offered in major universities and training institutions in Shenzhen;
  • the number of certified HarmonyOS developers will account for over 15 percent of the national total;
  • establish at least two industrial parks that rely primarily on HarmonyOS-based applications and software;
  • there will exceed 1000 software companies with staff who are qualified in HarmonyOS application development;
  • promote the stable operation of the HarmonyOS Ecosystem Innovation Center, providing public services such as showcasing and promoting HarmonyOS native applications, and talent cultivation; and
  • officially launch and expand the global Smart Internet of Things (IoT) Alliance to continuously increase the international influence of HarmonyOS applications.

The plan also encourages capable enterprises to expand outsourcing services for development of HarmonyOS-native applications, aiming to reach a scale of 500,000 HarmonyOS developers.

By the end of 2023, a total of 49 enterprises in Shenzhen had participated in the construction of the open-source HarmonyOS ecosystem, contributing 133 products and 11 software distributions. The open-source HarmonyOS community has more than 250 ecosystem partners, 35 project donors, 173 partners passing the HarmonyOS compatibility evaluation, and over 230 commercial devices in fields such as finance, education, smart home, transportation, digital government, industry, and medical care.

Source: Xinhua, March 3, 2024
http://www.news.cn/local/20240303/dca3e6d4bd734380b4dc9602d5df9b76/c.html

Briefings | | |   Government/Politics Information/Technology

Diaspora Groups Testify About Intimidation and Harassment by Home Countries at Canada’s Foreign Interference Hearings

Canada’s Foreign Interference Commission inquiry has recently entered the witness testimony phase. Representatives from diaspora communities originating from China, India, Russia, and Iran testified about their experiences of intimidation and coercion by their countries of origin.

Witnesses representing Canadian diaspora communities included Uyghur rights activist Mehmet Tohti, Winnie Ng from the Toronto Association for Democracy in China, Grace Dai Wollensak from the Falun Dafa Association of Canada, Jaskaran Sandhu from the Indian Sikh Alliance, Yuriy Novodvorskiy from the Russian-Canadian Democratic Solidarity group, and Iranian-Canadian Hamed Esmailion. Each recounted their personal experiences of harassment and threats from their home countries.

Long-time human rights activist Tohti said he has been unable to see his family since arriving in Canada in 1991. Initially, China denied him and his family permission to travel. In 2016, over 30 of his relatives were detained, severing all contact with Tohti. In early 2023, Chinese police called to say that his mother and two sisters had died, his brother was missing, and that an uncle had been hospitalized — these were threats that he should stop his activism lest more relatives face the same fate.

Wollensak broke down as she spoke about the plight of Falun Gong practitioners. She revealed that they have endured persecution by the Chinese government for over two decades, not only within China but also through the authorities’ transnational crackdown abroad. She added that Falun Gong practitioners living overseas are constantly subjected to intimidation, harassment, cyberattacks, and surveillance. “My account has been deleted, and my IP address has been blocked,” she said, “We are not allowed to express anything that contradicts the CCP’s policies. The ’50-cent party’ and the United Front agents are able to interfere with our lives on a daily basis.”

The witnesses noted the US takes far stronger action against foreign interference [than Canada does], levying charges and convictions. Meanwhile, Canada lacks even a foreign agents registry, leaving complaints unaddressed.

The hearings were sparked by Beijing’s alleged interference in the 2019 and 2021 Canadian elections. Federal Judge Marie-Josée Hogue will hear dozens of further witnesses, including Prime Minister Justin Trudeau.

Source: Radio Free Asia, March 28, 2024
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/lf-03282024130615.html

Briefings | | |   Geo-Strategic Trend

Charity’s Plan to Donate to Government Sparks Backlash in China

The Beijing Hemophilia Rare Disease Home Care Center recently announced plans to donate 1 million yuan ($143,000 USD) to the Chinese government and 100,000 yuan ($14,300 USD) to the Beijing government for construction purposes. This announcement from the charity organization, which relies on donations for its operations, sparked an outcry of criticism and skepticism online, with some saying “It seems the country has a rare disease.”

According to reports, the Center posted an official document on March 25th stating its decision to donate 1 million yuan to the People’s Republic of China for national construction. The next day, they announced a 100,000 yuan donation to Beijing for municipal construction. The Beijing Hemophilia Care Center was registered as a non-profit in 2012 and is a member of the Beijing Charity Association. It mainly provides aid for hemophilia patients and helps families by providing education, medical care, psychological counseling, and employment. Audits show that the group had total revenue of 24.7 million yuan in 2019. The revenue came almost entirely from donations, with zero government subsidies.

The organization’s announcements drew criticism online, with some questioning the legality of donating funds raised for unrelated purposes without obtaining donors’ consent. Some netizens joked that “It seems the country has a rare disease,” implying that the country is facing financial difficulties.

Legal experts stated that, under China’s charity laws, government agencies cannot directly receive donations meant for public welfare and must transfer such donations to approved charitable groups. Beijing authorities said they had received inquiries on the matter and had ordered the donation announcement to be retracted, which the Hemophilia Care group has now done. Some lawyers argued that the donation likely cannot proceed since no eligible recipient department within the government has been identified, and the charity failed to follow proper procedures like soliciting feedback from donors.

Source: Central News Agency (Taiwan), March 27, 2024
https://www.cna.com.tw/news/acn/202403270418.aspx

Briefings | | |   Economy/Resources

China Unveils J-15D, a Carrier-Based Electronic Warfare Aircraft

China’s state media CCTV recently named and reported on the J-15D electronic warfare aircraft. The new aircraft is based on the Chinese J-15 carrier-based fighter jet. The J-15D is still in testing, and it is expected to appear on the deck of China’s Fujian aircraft carrier in the near future. It is unclear if mass production is planned.

Prior to the unveiling of the J-15D, the Chinese People’s Liberation Army only had one very expensive electronic warfare aircraft, the J-16D. As there is no carrier-based version of the J-16, China’s aircraft carriers lacked an electronic warfare aircraft.

According to footage from CCTV and China Global Television Network, the carrier-based J-15D is equipped with a weapons system similar to the J-16D. Promoted as a fighter jet combined with an electronic warfare aircraft concept, the heavy-duty twin-engine J-15D can carry more air-to-air and air-to-sea/ground munitions than the J-35, serving more of a multipurpose role.

The CCTV report quoted Tencent as stating that the main reason why the Chinese navy chose the J-15 as the base for developing this new electronic warfare aircraft was that the J-15 has mature aircraft carrier capabilities, suitable for integrating electronic warfare capabilities with aircraft carriers.

As the J-15D relies on its own power, it may struggle when taking off from the ski-jump decks of the Liaoning and Shandong carriers. For this reason, analysts suggest that the Fujian carrier, which has an electromagnetic launch system, will be a more suitable host for the J-15D.

Source: Central News Agency (Taiwan), March 31, 2024
https://www.cna.com.tw/news/acn/202403310208.aspx

Briefings | | |   Defense/Military