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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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The CCP’s Performing Arts Troupes in the U.S.

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Chinese Foreign Ministry Spokesperson Reverses Position to Acknowledge “Israel’s Reasonable Security Concerns” for First Time

In a first since the start of the Israel-Hamas war, spokesperson Mao Ning of the Chinese Foreign Affairs Ministry acknowledged “Israel’s security concerns” at a press conference on October 8. The following is an excerpt from a transcript published by the Foreign Affairs Ministry (emphasis added by ChinaScope):

China News Service Reporter: Yesterday, October 7, 2024, marked the one-year anniversary of the outbreak of the Gaza conflict. The conflict is still ongoing. What is China’s comment on this situation? How will China further promote a ceasefire and an end to the fighting?

Mao Ning: The Gaza conflict has dragged on for a year, resulting in the loss of many innocent lives and causing an unprecedented humanitarian disaster. Its spillover effects have impacted the region, and tensions continue to escalate. China is deeply concerned about the ongoing violence and the continued absence of peace.

The brutal reality clearly demonstrates that military force and violence are not solutions to the problem; they only add new grievances to old ones, making peace and stability even more elusive. Recently, China proposed a “three-step” initiative to break out of the current Gaza conflict: a ceasefire and humanitarian aid are the top priorities, “Palestinians governing Palestine” is the fundamental principle for post-conflict Gaza reconstruction, and the “two-state solution” is the ultimate path forward. The legitimate national rights of the Palestinian people should be realized, and Israel’s reasonable security concerns should also be addressed. The international community should work to de-escalate the situation, convene a larger, more authoritative, and more effective international conference, and set a timetable and roadmap for implementing the “two-state solution,” ultimately achieving peaceful coexistence between Palestine and Israel, and harmonious coexistence between the Arab and Jewish peoples.

Bloomberg Reporter: I would like to clarify your earlier comment. When you mentioned the one-year anniversary of the Gaza conflict on October 7, did you say that “Israel’s reasonable security concerns should also be addressed”? Could you elaborate on this point? Has the Foreign Ministry previously made similar statements? I’m interested in the background of this stance.

Mao Ning: You heard correctly. I did indeed say that the legitimate national rights of the Palestinian people should be realized, and Israel’s reasonable security concerns should also be addressed. This has always been China’s consistent position. Only by doing so can we ultimately achieve peaceful coexistence between Palestine and Israel and harmonious coexistence between the Arab and Jewish peoples.

Source: Website of China’s Embassy at the United States, October 8, 2024
http://us.china-embassy.gov.cn/chn/lcbt/wjbfyrbt/202410/t20241008_11503801.htm

Briefings | | |   Economy/Resources Government/Politics

Chinese CCTV: “EU Cannot Impose Tariffs and Attract Investment Simultaneously; EU Should Make Rational Choice”

Chinese Central Television (CCTV) recently reported that the EU’s member states have voted to adopt the European Commission’s proposal to impose tariffs on Chinese electric vehicles. Ten EU members voted in favor, 12 members abstained, and 5 members — Germany, Hungary, Malta, Slovakia and Slovenia — voted against. According to EU rules, two conditions must be met for the proposal to be shelved: 15 members would have to vote against it, and the number of opponents to the proposal must comprise 65 percent of the total EU population.

The lead Chinese negotiator explained that “the reason why many EU member states voted in favor of imposing additional tariffs on China was to attempt to force Chinese companies to invest in Europe. China’s attitude is very clear – anyone who supports the tariff will lose investment.” The countries that voted in favor were: Italy, France, Poland, the Netherlands, Ireland, Latvia, Lithuania, Estonia, Bulgaria, and Denmark. “Among the nay-sayers, Germany has the loudest opposition, precisely because Germany has cooperated more with China in the automotive industry and has benefited more.”

Source: CCTV, October 5, 2024
https://news.cctv.com/2024/10/05/ARTIHFvkIDnFXtaubcg0SzWb241005.shtml

Briefings | | |   Geo-Strategic Trend

China’s Aggressive Tax Collection Sparks Anxiety Among Private Businesses

Recent tax-related announcements by Chinese companies have caused anxiety among private businesses in China. Two notable cases involve Weiwei Co., Ltd. being ordered to pay 85 million yuan in back taxes dating back to 1994, and Ningbo Bouquet Chemical facing a 500 million yuan tax bill affecting its profits.

These incidents, along with similar cases involving other companies and the establishment of “police-tax joint operation centers” in over 20 provinces, have led to concerns about aggressive tax collection practices. Rumors spread online about the government conducting “30-year retroactive tax inspections.”

The State Taxation Administration quickly denied organizing any large-scale or industry-wide tax inspections, stating that recent cases were part of routine tax collection efforts.

The government’s actions come amid financial challenges, with tax revenues decreasing by 4.9% in the first four months of 2023, while public expenditures increased by 3.5%. A significant factor is the decline in land sale revenues, which many local governments heavily rely on.

These developments have worried private businesses, particularly those focused on the domestic market with thin profit margins. Some fear that retroactive tax inspections could potentially bankrupt companies, especially if they include penalties for late payments.

While tax regulations typically allow for 3-5 year retroactive inspections, there are exceptions for cases involving tax evasion or fraud.

Source: BBC Chinese, June 24, 2024
https://www.bbc.com/zhongwen/simp/chinese-news-69137259

Briefings | | |   Economy/Resources

Japanese Investment in China Plummets Amid Market Challenges

Japanese companies are facing significant headwinds in the Chinese market, with investment figures showing a marked decline. According to recent data from Japan’s Ministry of Economy, Trade and Industry, Japanese investment in China and Hong Kong fell by 16% year-on-year in the second quarter of 2024. This marks the seventh consecutive quarter where Japanese investment in China has lagged behind its European counterpart.

The downturn is largely attributed to the struggles of Japanese automakers in China’s competitive electric vehicle (EV) market. Giants like Nissan and Honda have been forced to shutter factories, with Honda alone estimating a reduction of 290,000 units in annual production capacity. This retreat has sent shockwaves through the supply chain, affecting parts manufacturers and material suppliers.

The automotive sector’s woes are symptomatic of broader challenges. China, while remaining Japan’s second-largest export destination and primary import source, has become an increasingly difficult market for Japanese firms. A survey by the Japan External Trade Organization revealed that 53% of Japanese manufacturers in China view rising competition as a major concern, a situation exacerbated by China’s economic slowdown.

The impact extends beyond automobiles. Companies across various sectors, including electronics and materials, are reassessing their Chinese operations. DIC, for instance, plans to exit China’s liquid crystal materials business by the end of 2024.

As Japanese companies grapple with these challenges, the trend of reduced investment and operational scale-back in China appears set to continue, potentially reshaping the landscape of Japanese business presence in the world’s second-largest economy.

Source: Central News Agency (Taiwan), October 7, 2024
https://www.cna.com.tw/news/acn/202410070137.aspx

Briefings | | |   Geo-Strategic Trend

Shanghai Expands “Recent Graduate” Definition to Combat Rising Youth Unemployment in China

China’s youth unemployment rate remains high, with August figures showing 18.8% unemployment for 16- to 24-year-olds, a new high for the year. To address this issue, Shanghai has announced measures to ease unemployment by expanding the definition of “recent graduates.”

Shanghai’s Human Resources and Social Security Bureau has issued a notice requiring state-owned enterprises and central enterprises in Shanghai to open campus recruitment positions to university graduates within two years of graduation, regardless of work experience or social security contributions.

This policy change is not unique to Shanghai. Other provinces like Hunan, Shandong, Guizhou, and Guangxi have also adjusted their criteria for recent graduate status, with variations in the time frame (e.g., Hunan extending it to three years post-graduation).

Xiong Bingqi, dean of the 21st Century Education Research Institute, suggests focusing on overall employment rather than emphasizing recent graduate status to reduce job seekers’ anxiety about their status.

China’s youth unemployment rate had previously exceeded 20% for three consecutive months from April to June 2023, peaking at 21.3% in June. The government then suspended publishing age-specific urban unemployment rates until January 2024, when they resumed with adjusted statistical methods excluding in-school students.

These measures reflect China’s ongoing efforts to address high youth unemployment and create more opportunities for recent graduates in a challenging job market.

Source: Central News Agency (Taiwan), October 6, 2024
https://www.cna.com.tw/news/acn/202410060127.aspx

Briefings | | |   Economy/Resources

Human Rights Watch Report: CCP Harasses Chinese Citizens in Japan

Human Rights Watch released a report revealing the Chinese Communist Party’s (CCP’s) transnational harassment and intimidation of Chinese citizens living in Japan. Several interviewees stated that due to fear of retaliation or concern for their family’s situation in China, they did not seek help from the Japanese police.

F.G., from Inner Mongolia, has lived in Japan for nearly 20 years. In 2019, CCP police went to his family’s home and threatened them. He said, “They threatened my relatives, telling them to inform me that my actions were criminal offenses against the state. They recorded all of my family members’ contact details. My relatives were terrified. Since then, my relatives have cut off contact with me.”

S.T., who moved to Japan from Xinjiang, said, “One day (in 2017), I received a call from a relative asking me to come home. I refused, and immediately a police officer took over the phone. He told me, ‘Listen to your relatives, or I cannot guarantee what might happen to your family.’” S.T. said that was the last time he spoke to his relatives.

Source: NTDTV, October 10, 2024
https://www.ntdtv.com/gb/2024/10/10/a103920610.html

Briefings | | |   Geo-Strategic Trend

China’s Current Economic Challenges Far Exceed Those of 2008

A commentator discussed the difference between China’s current economic predicament and the situation back in 2008. In 2008, China was able to issue 4 trillion yuan (US$ 570 billion) to pump up the economy. This time, however, Beijing may not be able to regenerate the same result as the current situation is far worse than before.

He gave the following example:

  1. In 2008, China’s GDP was about 30 trillion yuan. By 2023, its GDP reached 126 trillion yuan, a fourfold increase, making rescue efforts much more difficult.
  2. In 2008, M2 (money supply) was 47.5 trillion yuan. By the end of 2023, M2 had exceeded 300 trillion yuan, more than six times that of 2008, leaving very little room for further monetary expansion.
  3. In 2008, the household debt ratio was less than 18 percent; it is 65 percent in 2024.
  4. At the end of 2008, local government debt was around 5 trillion yuan (roughly balanced); by 2023, the outstanding balance of local government debt was 40.74 trillion yuan.
  5. At the end of 2008, the national debt balance was about 5.33 trillion yuan, with 854.9 billion yuan in national debt issued that year. By the end of 2023, the national debt balance had reached 30.03 trillion yuan, with 11.14 trillion yuan of national debt issued over the year.

Source: Epoch Times, October 10, 2024
https://www.epochtimes.com/gb/24/10/9/n14347115.htm

Briefings | | |   @CS Economy/Resources

The CCP’s Mandatory App “Study Xi” Was Put to an End

Five years ago, the Central Propaganda Department of the Chinese Communist Party (CCP) launched the mobile app “Study Xi to Build a Strong Country (学习强国).” It is a platform for the study of CCP ideology focused on “Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era.” The app went live on January 1, 2019. A large number of Chinese citizens were forced to study it daily. According to reports from mainland netizens, college students, students in grades 1-12 (along with their parents), and employees at state-owned enterprises, cultural and educational institutions, and an increasing number of private companies were required to use the app. The app once became the most downloaded free app in the Apple App Store in China.

The app introduced a points-based learning system to enable employers and superiors to monitor and reward or punish users. It was reported that users could earn 1 point for logging in daily, 1 point for reading an article, and another point for watching a video. Additionally, users could earn an extra point for reading or watching for a certain amount of time. The platform also featured various quizzes and exams, with more points awarded for correct answers. To encourage people to use their own time to study, the app established three “active periods” outside of work hours (morning, noon, and evening), during which users could earn double points. An elementary school teacher in Anhui said that she needed to accumulate 42 points each day to meet the requirements.

On September 17, independent scholar Gao Falin revealed on the X platform that the “Study Xi to Build a Strong Country” app is coming to a complete end. Gao stated that he received news from friends in China that the app will no longer require login assessments from now on. People no longer have to log in every day. Since late last year, it has actually been in a semi-abandoned state, and the backend can no longer track who hasn’t logged in. This is finally the end of it.

A reporter from the Epoch Times confirmed the authenticity of this news.

Source: Epoch Times, September 21, 2024
https://www.epochtimes.com/gb/24/9/20/n14335419.htm

Briefings | | |   Government/Politics