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Germans Are Apprehensive about Chinese Acquisitions of German Companies

Well-known Chinese news site Sina recently published two articles on the rapid growth rate of the number of acquisitions Chinese companies have been making in Germany. Recent statistics show that, as of the present time, Chinese buyers have acquired around 200 German companies. The acquisitions are mainly in the automobile, mechanical manufacturing, electronics, and injection molding industries. The German economy was slowing down after 2011 and that provided the opportunity for the Chinese to buy financially troubled German companies. The German Ministry of Economic Affairs has recently been asked to protect the domestic high-tech companies from having unwanted buyers acquire them, especially those from non-EU countries. Germany recently proposed a set of EU-level investment screening rules. Any EU government would be allowed to block any acquisition seeking over a 25 percent stake in a company. The rules also add more restrictions if the investor is state-subsidized or state-owned, or if the investor is from a country that has market-entry restrictions against German investors. Not long ago, the Chinese government established a new strategy called, “Made in China 2025,” which is behind all these Chinese acquisitions. The new strategy is apparently modeled after the German “Industrial 4.0” strategy.

Source: Sina, October 23, 2016
http://finance.sina.com/gb/usstock/sinacn/20161023/17271513368.html
http://finance.sina.com/gb/economy/sinacn/20161023/21031513533.html

CNA: Pentagon Said Lenovo Products May Bring Network Hacking Risks

Taiwan’s primary news organization Central News Agency (CNA) recently reported, based on an article that appeared in the Washington Free Beacon, about the risks that may accompany the Chinese computer manufacturer Lenovo. The J-2 Intelligence Directorate, which reports to the U.S. Joint Chiefs and the Secretary of Defense, issued an internal warning that the U.S. military officials responsible for network security were concerned that purchasing Lenovo computers and cell phones may increase the risk of bringing network attacks into the U.S. military systems. J-2 also warned that Lenovo has attempted to get into the U.S. military network via acquiring U.S. vendors in the information industry. One U.S. official mentioned that Lenovo products were caught earlier secretly sending information to external individuals. Lenovo (U.S.) spokesperson Ray Gorman said he was not aware that the Joint Chiefs were paying attention to this matter. The spokesperson for the Joint Chiefs, Greg Hicks, refused to comment on individual reports. The Pentagon said the Department of Defense does not have a black list of suppliers.

Sources: Central News Agency, October 24, 2016
http://www.cna.com.tw/news/aopl/201610240422-1.aspx
Washington Free Beacon, October 24, 2016
http://freebeacon.com/national-security/military-warns-chinese-computer-gear-poses-cyber-spy-threat/

Duowei News: Party’s Central Administration Says Members Should Restore Their Faith in Party Ideology

Duowei News published an article on the 6th Plenary Session of the 18th Central Committee, which recently concluded. It stated that the main topic during the session was the strict discipline of Party members, meaning that the Party is determined to control the special rights of Party officials and their extravagant life styles. It also reported an underlying message that, as part of the strict discipline, Party members, especially those at the level of the Political Bureau, should restore their faith in Party ideology as well as show absolute loyalty and allegiance to the Party. The article also indicated that the following could be included: that Party members shouldn’t question the central administration’s policy, copy the constitutionalism of the West, or form individual factions.

Source: Duowei News, October 29, 2016
http://china.dwnews.com/news/2016-10-29/59778364.html

China to Showcase its Domestically Made Rainbow Unmanned Aircraft at the Aviation & Aerospace Exhibit

According to an article that Duowei News published, the 11th China International Aviation & Aerospace Exhibit will be held in Zhu Hai City from November 1 through 6. The domestically made “Rainbow Series” unmanned aircraft will be on exhibit. It will include the Rainbow 3, Rainbow 4, and Rainbow 5, which are unmanned solar powered aircraft and have a ground effect in aircraft, as well as the Rainbow 805 high speed invisible drone aircraft. The article reported that the Rainbow 5 has a technical capability that is superior to the Predator B unmanned aircraft of the United States. The article also stated that the future development of the domestically made unmanned aircraft is to have the capability of being carrier based.

Source: Duowei News, October 27, 2016
http://military.dwnews.com/news/2016-10-27/59778145.html

U.S. Warship Breaking into the Xisha Islands Will Only Accelerate Decline of the United States

People’s Daily published a commentary on “the U.S. Navy Decatur destroyer’s unauthorized access to China’s Xisha territorial waters,” [the Paracel Islands] on October 21. The commentary said, “The U.S.’s frivolous action, which is driven by a hegemonic mentality, will not make its presence known in the Asia-Pacific region. Making trouble and creating conflict will only accelerate the decline of U.S. international influence.”

The article continued, “In violation of the coastal states’ sovereignty, security, and maritime rights and interests and saying it was done in the name of ‘freedom of navigation,’ the U.S.’s provocation has once again exposed the negative energy of the United States return to its Asia-Pacific strategy and highlighted the role it has played as ‘troublemaker’ on the South China Sea issue.”
“The so-called cruise operation of the United States coincided with Philippine President Duterte’s visit to China. Sino-Philippine relations had been fully restored and the two sides signed a series of cooperation agreements. As China’s relations with relevant countries improved and the new momentum of resolving the South China Sea issue steadily emerged, the United States sent warships to China’s territorial waters to stir up conflicts. This has exactly demonstrated how the United States has deliberately created and induced tension in the South China Sea for some time. The move clearly shows the United States does not want to see the South China Sea in peace and cannot tolerate stability in the region. If no one will help it make trouble, Washington will be anxious to jump out to make trouble by itself.”

Duterte’s speech in China will help people understand the United States and the complicated mentality behind its actions, “China has a very good relationship with us; the United States a little anxious.” In provoking conflict as a means to show its ruthlessness, it is only venting the depression it has in its heart and also the manifestation of its hegemonic habits. It is not known whether the United States itself has realized that it is this hegemonic inertia that is accelerating the decline of U.S. international influence and that it is getting more and more difficult for the United States to provide positive energy with public goods? Whether or not Washington has the courage to admit it, the era in which it could sit comfortably as the leader of its own camp has passed.”

“It’s not just a day or two since the United States dealt with China regarding the South China Sea. Washington, [please] don’t have any unrealistic fantasy. China’s will to safeguard state sovereignty and territorial integrity is rock-solid. … On the issue of peace and stability in the South China Sea, China will not let the United States behave wantonly.”

Source: People’s Daily, October 23, 2016
http://military.people.com.cn/n1/2016/1023/c1011-28800163.html

Guangming Daily: By Mid-August, the Sky Net Campaign Rounded up 409 Fugitives from 61 Countries

Guangming Daily published a report and quoted statistics which indicated that the Sky Net campaign, which was launched to combat corrupt officials, has been working effectively this year. According to the statistics, by mid-August 409 fugitives from 61 countries had been brought in. Among those 272 were arrested and 137 were persuaded to return, while 15 of them are on the top 100 fugitive list. The article stated that, in 2016, the public security bureau dispatched 33 teams overseas to carry out the mission.

Source: Guangming Daily, October 24, 2016
http://legal.gmw.cn/2016-10/24/content_22618033.htm

People’s Daily: CCDI Completed Inspection of 80 Percent of State Owned Enterprises and Financial Institutions

On October 24, People’s Daily, published an article discussing a notice that the Central Commission for Discipline Inspection (CCDI) issued. The CCDI reported that, in 2016, it had sped up the pace of inspections in a number of regions. The number inspected grew from 20 locations in 2013, 40 locations in 2014, 83 locations in 2015, and 64 locations in 2016. It has completed its inspection of 80 percent of the state owned enterprises and financial institutions. The inspection results revealed that, overall, Party leadership is weak, Party development is lacking, and Party management is loose. The article noted that over 80 percent of the units were found to have violations of Party discipline and of clean government regulations. The article also observed that the inspections have created an intimidating and warning effect. In addition, the inspection team drafted reports and provided recommendations on how to fix certain issues.

Source: People’s Daily, October 24, 2016                                                                                         http://politics.people.com.cn/n1/2016/1024/c1001-28803884.html

 

A New Bribery Record for Chinese Communist Official: over 300 million Yuan (~US$45 Million)

On October 21, in the Heilongjiang Province Intermediate People’s Court, Yu Tieyi, former Deputy General Manager for the Material Supply Subsidiary of Heilongjiang Long Coal Mining Holding Group Co., Ltd. (referred to as Long Coal Group) was sentenced to death with a two-year suspension and life-term imprisonment for accepting bribes in the amount of 300 million yuan (~US$45 million).

This is by far the largest amount that the courts have ever found in any bribery case. Yu Tieyi, the recipient of 300 million yuan in bribes, has become the third government official to be imprisoned for a lifetime term, followed by Bai Enpei, former Vice Chairman of the National People’s Congress Environmental and Resources Protection Committee, (246.8 million yuan in bribes), and Wei Pengyuan, former Deputy Director of Coal Division of the National Energy Board (211.7 million yuan).

Yu Tieyi is a deputy department level official.

Source: Beijing News, October 22, 2016
http://www.bjnews.com.cn/news/2016/10/22/420744.html