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Apple Watch Cellular Connection Cut in China

Well-known Chinese news site Sina recently reported that the newly released Apple Watch Series 3, which added support for the LTE cellular connection, is facing governmental challenges in China. The LTE functionality was available on China Unicom at launch. However, the Chinese government abruptly terminated the LTE access for the new Apple Watch Series 3 subscribers a few days later without explanation. Industry analysts expressed the belief that the Chinese government was concerned about the fact that it could not track who was using the new Apple Watch. Apple’s new eSIM technology used in the Watch made it very difficult to track the user’s identity and China heavily regulates the mobile communications industry. The Chinese regulator, the Ministry of Industry and Information Technology, didn’t respond to the media’s requests for comment. Not long-ago the Chinese government forced Apple to remove more than 400 VPN apps from the local version of its App Store. VPN technology offers a way to bypass China’s Great Firewall.

Source: Sina, October 20, 2017
http://tech.sina.com.cn/mobile/n/n/2017-10-20/doc-ifymzqpq2652918.shtml

China Securities Journal: In September, the RMB’s Rank Fell in International Transactions

The China Securities Journal recently reported that SWIFT (Society for Worldwide Interbank Financial Telecommunication) released its September report. The report showed that the usage of China’s currency (the RMB) in international transactions fell to 1.85 percent. Among all currencies, the RMB was ranked number six for September, down from number five in August (1.94 percent). The report also pointed out that there is no clear relationship between the size of an economy and the usage of its currency in international transactions. The U.S. GDP is 25 percent of the global total, while the U.S. Dollar accounts for nearly 40 percent of all global transactions. China’s GDP takes a 15 percent share in the global economy, but the RMB accounts for less than two percent of the usage internationally. Although many RMB clearing centers have been established across the globe, the internationalization of the Chinese currency seems to have a long way to go to catch up with the Euro or even the British Pound.

Source: China Securities Journal, October 17, 2017
http://cs.com.cn/xwzx/hwxx/201710/t20171017_5518850.html

Foreign Companies Concerned about Party Interference in Their Operations

Epoch Times published an article in which it reported that Beijing has been extending its control over Foreign Companies in China. It now requires that these companies allow party branch offices to be established within the company and is pushing to grant operational decision making power to the party’s branch office. According to the statistics disclosed during the media conference at the 19th National Congress on the subject of the “party’s development and exercise of strict self-governance in every respect,” by the end of 2016, Chinese Communist Party branch offices had been established in 93.2 percent of 147,000 State Owned Enterprises; 67.9 percent of 2.7 million private companies, and 70 percent of 100,600 foreign companies in China. The article quoted the comments that several China scholars gave. They stated that the party organization might act like a union but its real purpose is to control and supervise how the company operates. One scholar told Epoch Times that, “The party can’t trust anyone. It must have its own people to do supervision. Therefore it must build a party organization everywhere even including temples and religious organizations.” The article also quoted a Reuters news article stating that top management from over 12 European companies gathered in Beijing at the end of July to discuss their concerns about how the party tried to influence the company’s day to day operations. One company manager disclosed that they received political pressure to modify the joint venture contract to include language that allowed the party to have decision making rights in company operations and investment decisions. According to Epoch Times, having the party organization manage the company is in conflict with the theory of a market economy and will eventually force private companies in China to lose their international competitive advantage.

Sources:
1. Epoch Times, October 22, 2017
http://www.epochtimes.com/gb/17/10/22/n9758229.htm
2. China.com, October 19, 2017
http://www.china.com.cn/19da/2017-10/19/content_41758149.htm

RFA: During 19th National Congress, Foreign Media Reporters Subjected to ID Checks; Complain about Lack of Contents to Cover

According to an article Radio Free Asia (RFA) published, during the 19th National Congress, reporters from foreign media have been under tightened security and have been limited in what they could report. The article stated that the reporters have been subjected to ID checks at hotels throughout Beijing. On certain occasions, reporters have only been allowed to listen during delegate meetings but could not raise any questions. Even when they were allowed to ask questions, reporters complained that there was not much to write about. All they heard was that almost all the delegates they interviewed gave similar answers such as, “Support Xi’s core values and line up with the central administration,” “Socialism with Chinese Characteristics for a New Era,” or “The central administration is centered on comrade Xi.” The article stated that the police, the armed police, the special police, and the plain clothes police could be seen everywhere. Hotel staff have been told to pay special attention to reporters and to perform ID checks on them.

Source: Radio Free Asia, October 19, 2017
http://www.rfa.org/mandarin/yataibaodao/zhengzhi/ql1-10192017095300.html

Epoch Times: The “610 Office” Continues to Carry Out Orders that Jiang Zemin Initiated

According to an article the Epoch Times published, prior to the 19th National Congress, an internal order was issued within the Public Security Bureau to conduct “door to door” visits to Falun Gong adherents to collect their personal information, take videos, or photo or monitor their activities. The action started in February of 2017 and took place in over 28 provinces and cities. Some of the Falun Gong adherents ended up being “kidnapped,” their houses were searched illegally, they were arrested, or they were sent to brainwashing sessions. Some were tortured to death, and some were forced to flee China. The article stated that the actions were contradictory to what Xi Jinping has been advocating according to the “rule by law” and his effort in cleaning up the judiciary system. It observed that the Public Security Bureau was still carrying out the orders that Jiang Zemin issued to the 610 office (a security agency named for the date of its formation on June 10, 1999, established specifically for the purpose of coordinating and implementing the persecution of Falun Gong). That agency is still operating and is following the policy that Jiang used his influence to initiate.

Source: Epoch Times, October 21, 2017
http://www.epochtimes.com/gb/17/10/21/n9757224.htm

Apple Daily Comments on Xi Jinping’s Work Report at the 19th CCP Congress

The following is a summary of Apple Daily/United Morning Post’s observations on Xi Jinping’s report at the 19th Chinese Communist Party (CCP) Congress:

Reading the full text, the first impression is that it is trying to de-personalize (downplay) the names of Jiang Zemin, Hu Jintao, and even Deng Xiaoping {from the CCP’s chapters}. The reports of the recent Party congresses have constantly mentioned Deng Xiaoping Theory, the three represents, and the scientific concept of development. However, Xi almost failed to mention the names of Jiang and Hu in his report. He only mentioned the three represents and scientific development once. Even Mao Zedong and Deng Xiaoping’s names only appeared once.

On the contrary, “socialism” and “people” were mentioned 146 and 202 times respectively. These two words in the political context of the Chinese Communist Party have special implications with a deep mark of Mao Zedong’s brand. During the Cultural Revolution, they appeared frequently together with Mao Zedong Thought, great leaders, and class struggle in the CCP’s mouthpiece and documents. Xi’s report repeatedly mentioned Marx (19 times), which was also rare in the past Party Congress report.

Second, Xi Jinping spent more than half of the report describing how the past five years’ commitments got fully implemented and at the same time depicting the beautiful landscape of future development — the “new utopia” for the CCP and the Chinese people.

Strangely, Xi Jinping achievement that he is most proud of — anti-corruption  — was not discussed much in the report; it was only mentioned seven times. Xi talked more about his strict rule of the rectification of the party. Perhaps, he did not want to let Wang Qishan {Xi’s chief assistant in the anti-corruption campaign} grab the limelight or perhaps anti-corruption has caused dissatisfaction within the party and thus talking about anti-corruption too much was not appropriate.

Source: Wenxuecity (republication of Apply Daily/United Morning Post), October 18, 2017
http://www.wenxuecity.com/news/2017/10/18/6670555.html

Duowei: Whoever Is Bringing Disaster to the World, China Comes to the Rescue

Duowei, a Beijing-controlled Chinese news media stationed overseas, published an article discussing China’s “Belt and Road” initiative as the future of global governance. Below is an excerpt from the article:

A number of problems and difficulties have gradually emerged in the current practice of globalization and global governance. Globalization has suffered twists and turns, including de-globalization, anti-globalization phenomena. The global challenges are increasingly grim. The shortcomings of the existing global governance system continue to emerge. These shortcomings are mainly reflected in the imperfect value system of global governance, the ineffectiveness of the governance mechanism, a lack of consensus between sovereign states, especially between major powers, and the large number of negative effects the hegemony of the United States has contributed in recent decades. This is especially true since the U.S. put forward its national priority strategy. Therefore, seeking new global governance values and practices has become the consensus of the international community.

Given this situation and context, the “The Belt and Road” initiative is undoubtedly an innovation to the existing global governance model.

At “The Belt and Road” Construction and Global Governance International Forum held at Renmin University of China on September 30, Wu Zhicheng, director of the Institute of Global Issues of Nankai University, and special researcher from the Contemporary World Research Center at the International Department Central Committee of the CPC (Communist Party of China), pointed out that the “Belt and Road” initiative is a new value in global governance that focuses on peaceful development. The Western countries are the main creators of the values of the current global governance. It has become more and more outdated in meeting the needs of current global governance practices. Countries looking for development are gradually freeing themselves from the Western “universal values” and the “Washington consensus” superstition and are beginning to explore other development paths.

Starting from Eurasian countries, the “Belt and Road” initiative is taking the approach of step-by-step cross-regional governance. It will also have a radiation effect in the Eurasian continent, slowly affecting more areas, and more countries and regions. That is, from points joining to a surface, from a line to a region, it will form a cross-regional and global cooperation governance situation.

Source: Duowei News, October 5, 2017
http://news.dwnews.com/china/news/2017-10-05/60016049.html