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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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Guangming Daily: China Working With Global South to Reshape World Order

Guangming Daily published an article commenting that the Global South countries have been playing an increasing role in reshaping the world order. The following are some highlights from the article:

“The 3rd Summit of the Group of 77 and China concluded on January 22, 2024, in Kampala, Uganda, drawing attention to the Global South’s efforts in reforming the international order. … The concept of the “global South” has gained prominence, impacting global politics, economics, and culture significantly.”

“Firstly, the rise of the Global South has shifted the global power structure,” with the BRICS representing Southern countries “becoming an influential force on the international stage. … Secondly, it has diversified global development patterns. … Thirdly, it has introduced cultural and ideological diversity.”

“Southern countries are increasingly striving for a leading role in international affairs through participation in international organizations and advocating multilateralism, aiming to ensure international rules better reflect global diversity and interests. The 2023 Summit of the Group of 77 and China adopted the Havana Declaration, advocating for increased representation of developing countries in global decision-making bodies and promoting a more inclusive and coordinated global economic governance framework. China’s efforts in building a community with a shared future for humanity were reflected in the Declaration, highlighting China’s role in reshaping the international order.”

“China’s extensive diplomacy and cooperation with Southern countries, including aid to over 160 countries, the Belt and Road Initiative with over 150 countries, and various multilateral platforms such as the China-ASEAN Cooperation Mechanism, the Forum on China-Africa Cooperation, the China-CELAC Forum, and the China-Arab States Forum” demonstrate its commitment to South-South cooperation and to the elevation of the Global South’s role in reforming international order.

Source: Guangming Daily, January 29, 2024
https://news.gmw.cn/2024-01/29/content_37116113.htm

Briefings | | |   Geo-Strategic Trend

China’s Pension Funds Struggle with Widespread Losses amid Stock Market Slump

China’s pension-targeted funds, which aim to provide stable returns for retirement savings, have seen continued poor performance over the past year with widespread losses. Data from Wind shows there are currently 462 such funds in China. Of the 345 funds established before 2023, only 35 (10.14%) have realized positive returns over the last year. Additionally, only 11 funds achieved returns above 1% over the past year, while 34 funds saw returns decline by more than 10%. Seven funds have even been liquidated.

China’s pension-targeted funds experienced rapid growth after the first batch was approved for issuance in August 2018. However, since the beginning of 2022, performance has declined dramatically, a situation which has not improved in 2023.

According to a senior Chinese public fund researcher, the poor returns of China’s pension funds is largely due to the overall weak stock market, which has severely impacted pension funds. This highlights the factor that must be recognized – China’s pension-targeted funds are heavily tied to the performance of the broader financial markets. With the markets performing poorly over the past year, China’s pension funds have unsurprisingly also struggled to generate positive returns for retirement savers.

Source: Radio Free Asia, February 12, 2024
https://www.rfa.org/mandarin/Xinwen/3-02122024104433.html

Briefings | | |   Economy/Resources

BASF Withdraws from Xinjiang Joint Ventures After Reports of Human Rights Abuses

German chemical company BASF announced on February 9th that it will withdraw its stake from two joint ventures in Xinjiang, China after human rights groups accused its local partners of participating in the crackdown on ethnic minorities. The two joint ventures are Xinjiang Markor Chemical and Markor Meiou Chemical. BASF says it initiated the sale in late 2023 for other reasons but will now accelerate the process, subject to local approval.

In its statement, BASF said recent allegations indicate the joint ventures were engaged in activities inconsistent with BASF’s values. The two ventures employ about 120 people locally, with BASF holding roughly half the shares. Markor Chemicals produces butanediol, used to make fibers, plastics and rubber.

Last week, reports revealed Markor and its employees were directly involved in surveillance and repression of Uyghurs by the Communist Party, leading to arrests. BASF said it was unaware and does not condone such actions, emphasizing they only involve its partners, not BASF itself.

Human rights groups have long accused China of systematically cracking down on Uyghurs in Xinjiang by sending over a million to detention camps for “re-education.” Beijing denies this, claiming it is combating extremism.

Several Western companies like Volkswagen operate in Xinjiang. VW recently said a third-party investigation found no evidence its factories use forced labor after facing such allegations.

BASF stated that despite withdrawing from Xinjiang, its other China businesses will continue normally. It is spending $10 billion on a new production base in Guangdong province. The company says it remains fully committed to its investments in China.

Source: Deutsche Welle, February 10, 2024
https://p.dw.com/p/4cFeL

Briefings | | |   Geo-Strategic Trend

China Developing Integrated Antenna-Solar Satellites to Enable Cell Phone Connectivity with Space Networks

Chinese satellite internet startup GalaxySpace is developing a new generation of communication satellites with advanced technologies to support direct connections from satellites to cell phones, according China’s official Xinhua news agency. These satellites integrate phased array antennas and solar panels into a “wing array” design that greatly reduces satellite size and cost.

The key “wing array integration” technology hides the antenna within the solar wings. By unfolding the wings and antennas together in a two-dimensional plane spanning several square meters, GalaxySpace can reduce the volume satellites occupy in space while improving network efficiency.

Continued research aims to enable highly efficient cooling and distributed power supply for the integrated wing array satellites. This new compact, power-efficient design will facilitate affordable large-scale satellite constellation networks.

China has now designated commercial spaceflight as a strategic emerging industry after it was included in the 2023 Central Economic Work Conference. Flexible high-efficiency solar wings make possible satellites with abundant onboard power. Accelerated satellite infrastructure development is enabling ambitious space-based global information networks.

GalaxySpace Chief Scientist Zhang Shijie stated that direct satellite-to-cell phone connectivity will likely be an essential component of 6G networks. He said GalaxySpace will drive further innovation in low-cost, high-performance satellites for intelligent omnipresent space networks that integrate communication, computing, and sensing capabilities.

Source: Xinhua, February 12, 2024
http://www.xinhuanet.com/20240212/3f562115eeb44efa9f5f382883b9bcad/c.html

Briefings | | |   Information/Technology

People’s Daily: Party Leadership on Culture Vital to Fate of Party and Nation

People’s Daily published an article on “adhering to the Chinese Communist Party’s (CCP’s) leadership on culture and ideology.” The following are some highlights:

Adhering to the Party’s cultural leadership is vital to the future and destiny of the Party and the country. “To adhere to the correct way is to fundamentally uphold Marxism’s guiding position in the ideological realm, and to uphold the CCP’s cultural leadership and the unique identity of Chinese culture.”

Since the 18th CCP National Congress, the Party’s Central Committee with Xi Jinping at its core has stipulated that the Party must manage propaganda, ideology, and media. This means adhering to the principle that [the CCP] politicians should run the newspapers, journals, radio, television, and news websites.

“Our comrades must enhance their awareness of the [ideological] battleground. If we do not occupy these grounds, others will,” Xi Jinping emphasized.

To firmly uphold the Party’s leadership over ideological work, the most basic and crucial thing is to firmly control, with our own hands, the fields of ideology and public opinion. The Party’s propaganda and ideological department “must shoulder responsibility for, be accountable to, and fulfill their duties to” their respective territories.

To guard our positions, the Party and its officials must dare to struggle and be adept at it. Nowadays the struggle in the field of ideology is increasingly sharp and complex. Xi Jinping emphasized that “comrades on the ideological and propaganda front should be warriors, not gentlemen. They should not be neutralists or opportunists who will pick the winning side. There is no room for compromise or concessions in the struggle over ideology.”

Source: People’s Daily, January 23, 2024
http://dangjian.people.com.cn/n1/2024/0123/c117092-40164528.html

Briefings | | |   @CS Government/Politics

CCP Trying to Pass Article 23 in Hong Kong Again

BBC Chinese Edition reported that the CCP is once again pushing to add the controversial “Article 23” to Hong Kong’s constitution. A prior attempt to implement the legislation in 2003 led to massive street protests of approximately half a million people in Hong Kong. According to Wikipedia, Article 23 states that Hong Kong “shall enact laws on its own to prohibit any act of treason, secession, sedition, subversion against the Central People’s Government, or theft of state secrets, to prohibit foreign political organizations or bodies from conducting political activities in the Region, and to prohibit political organizations or bodies of the Region from establishing ties with foreign political organizations or bodies.”

The CCP now has tighter control over Hong Kong, and the Hong Kong government is now able to push for Article 23 once again. The article defines various “crimes against national security” and allows the government to arrest people under those charges.

The government has opened a one-month period for public feedback on the article, January 30 to February 28. The article defines nine chapters addressing five categories of activities posing threats to national security:

  • Treason: Expanding offenses to cover behaviors such as joining foreign armed forces at war with China and intending to harm China’s sovereignty.
  • Rebellion and Secession: Extending the scope of incitement to secession to all public officials and introducing the offense of rebellion for more serious acts.
  • Theft of State Secrets and Espionage: Detailed definition of state secrets, covering all public officials, with prohibition on illegal acquisition and disclosure, and addition of modern espionage activities.
  • Destructive Activities: Preventing damage to public infrastructure and introducing penalties for acts harming national security via computer systems.
  • Overseas interference: Prohibiting actions undermining Hong Kong affairs abroad and expanding regulations to monitor all organizations in Hong Kong, including foreign organizations; as long as the authorities “reasonally believe” that it is needed for the state security, it can stop the relevant organization’s operations.

Sources:
BBC, January 30, 2024
https://www.bbc.com/zhongwen/simp/chinese-news-68142687

Wikipedia, Retrieved February 14, 2024
https://en.wikipedia.org/wiki/Hong_Kong_Basic_Law_Article_23

Briefings | | |   @CS Government/Politics

China Offers Open-Enrollment Online Courses to International Audiences

To enhance its soft power, Beijing is making efforts to offer Massive Open Online Courses (MOOCs) to international audiences.

People’s Daily reported that China “leads the development of the World MOOCs and Online Education Alliance.” It organizes the World MOOCs and Online Education Conference annually and actively promotes international exchanges and cooperation in online teaching. China has “launched 341 globally-integrated courses and introduced 10 global integrated certificate programs, attracting nearly 25.4 million learners; it has established bilateral communication and exchange channels for course with more than 30 renowned universities and online education institutions worldwide.” Additionally, China has published the “Infinite Possibilities: Report on the Digital Development of World Higher Education” and the “World Higher Education Digital Development Index.”

Another People’s Daily report stated that the World Digital Education Alliance was established at the 2024 World Digital Education Conference, and that China has officially launched the international version of the China National Smart Education Public Service Platform. The platform “offers 780 courses, covering 12 disciplines and 17 major categories including literature, engineering, science, and arts. The instructors for these courses come from over a hundred high-level Chinese institutions such as Tsinghua University.” The platform also provides services for international students to study in China.

The second article says that “in November 2023, UNESCO passed a resolution to establish the UNESCO International STEM Education Research Institute in Shanghai.” Xie Dong, Shanghai Deputy Mayor said that “the Shanghai center will actively focus on strengthening cooperation and exchanges in STEM education with African and island countries.”

Sources:
1. People’s Daily, January 29, 2024
http://edu.people.com.cn/n1/2024/0129/c1006-40168414.html
2. People’s Daily, February 8, 2024
http://edu.people.com.cn/n1/2024/0208/c1006-40175792.html

Briefings | | |   Geo-Strategic Trend Information/Technology

NetEase: Mexico Surpassed China as Largest Supplier to U.S.

Data released by the U.S. Department of Commerce showed that in 2023 Mexico surpassed China for the first time in over 20 years to become the largest source of goods imported by the U.S.

Well-known Chinese news site NetEase (NASDAQ: NTES) ran a report about the Department of Commerce Data. Below are some excerpts from their article:

As part of the U.S.’ so-called “weaning off dependence on China” strategy, the U.S. Biden administration is urging companies to find suppliers in allied countries or move manufacturing operations back to the United States.

The value of U.S. imports from Mexico increased by nearly five percent from 2022 to 2023, reaching more than US$475 billion. At the same time, the value of U.S. imports from China fell by about 20 percent, to US$427 billion.

This is the first time in more than 20 years that Mexico has surpassed China and become the largest source of imported goods to the United States. The last time the value of U.S. imports from Mexico exceeded that from China was in 2002.

The biggest decline in U.S. imports from China was in commodities such as computers, electronic products, chemicals, and pharmaceuticals, which are all ‘politically sensitive’ for the United States.

The impact of COVID-19 on global supply chains has also forced American companies to look for nearshore suppliers. … However, the actual situation is more complicated than that. Some Chinese manufacturers have already established factories in Mexico too.

Source: NetEase, February 8, 2024
https://www.163.com/dy/article/IQDSPONL051481US.html

Briefings | | |   US-China Relations