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China’s Reaction to Trump’s Election Win

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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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RFI Chinese: Indonesia Asks Google and Apple to Block Temu App

According to Radio France Internationale (RFI) Chinese Edition, Indonesian Minister of Communications and Information Budi Arie Setiadi recently stated that Indonesia has asked Google and Apple to block the Temu app so that it cannot be downloaded in Indonesia. The Temu e-commerce platform is a product of Chinese cross-border e-commerce vendor PDD Holdings. The move by the Indonesian government is aimed at protecting the country’s small- and medium-sized businesses from having to compete with cheap products offered on the Temu platform.

Temu’s rapid overseas growth has triggered scrutiny in several countries. It’s low-cost business model involves sending packaged goods to customers by direct mail from China. The platform connects consumers directly with factories in China to significantly reduce cost by taking advantage of loopholes in the international small package mailing system.

Budi called the business model “vicious competition.” He said “we are not here to protect e-commerce, but small and medium-sized companies. We must protect millions of Indonesian businesses.” Budi also stated that the Indonesian government would block Temu from making any investment in Indonesia’s local e-commerce sector.

The Indonesian government is planning to impose similar blocking measures on Shein, another Chinese e-commerce platform. Last year, Indonesia forced TikTok to shut down its e-commerce services in the country with the aim of protecting the data of local merchants and users.

Source: RFI Chinese, October 11, 2024
https://tinyurl.com/rsp3h93k

Briefings | | |   Geo-Strategic Trend

Lianhe Zaobao: Movie Market Very Weak During China’s National Day Holidays

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, during China’s National Day holiday period right after the Chinese stock market recently soared, movie consumption (an important part of the holiday economy) was particularly weak.

According to latest statistics, this year’s China National Day period (October 1st to 7th) box office totals reached RMB 1.82 billion yuan (around US$258 million), including pre-sold tickets. This year’s “Golden Week” number was not only dramatically lower than the RMB 2.734 billion yuan (around US$397 million) for the same period last year, but also less than half of the RMB 5.049 billion yuan (around US$715 million) seen in 2019. Moreover, this year’s box office results were achieved with the help of heavy official subsidies.

In order to attract people to watch movies, many local governments launched programs such as movie-viewing-coupon initiatives. For example, the Beijing Film Bureau issued RMB 10 million yuan (around US$1.42 million) in movie viewing subsidies to more than 250 theaters in the city, while the Shanghai government issued 30 million yuan (around US$4.25 million) in movie consumption vouchers.

In recent years, China’s consumer spending as a share of GDP has declined, rather than increasing. Analysts expressed the belief that the government will have a hard time effectively stimulating consumption unless the financial pressure on ordinary people from the “three big mountains” (housing, education and medical care) is removed.

Source: Lianhe Zaobao, October 6, 2024
https://www.zaobao.com.sg/finance/china/story20241006-4954583

Briefings | | |   Economy/Resources

Sam Hou Fai Elected Chief Executive of Macao Facing no Opposition

Radio Free Asia (RFA) reported that Macau held a “China-style” election for the position of Chief Executive on October 13. The sole candidate, Sam Hou Fai (岑浩辉), was “elected” as the sixth Chief Executive of Macau with 394 valid votes.

According to public records, Sam is 62 years old and was born in Zhongshan City, Guangdong Province. In his early years, he studied law at Peking University and later pursued language and law courses at a university in Portugal. He moved to Macau in 1986 and was appointed Chief Justice of the Court of Final Appeal of the Macau Special Administrative Region in December 1999. He is said to be one of the CCP’s “Southbound cadres” (referring to CCP cadres being sent to Hong Kong or Macao). He will become the first Chief Executive of Macau who was born in mainland China. He will take office on December 20.

Source: Radio Free Asia, October 13, 2024
https://www.rfa.org/mandarin/yataibaodao/zhengzhi/jz1-macau-ce-first-mainland-born-10132024103828.html

 

Briefings | | |   Government/Politics

Leaked Document Exposes CCP United Front Network in Germany

Twenty-one investigative journalists from ten countries recently published a secret document containing the names of hundreds of Chinese Communist Party (CCP) agents operating in multiple countries. The original source was said to be a list of supporters of the CCP’s United Front Works provided by a person in mainland China. German television channel RTL investigated the section of the document related to Germany.

An NTV reporter contacted a Chinese informant in Germany who confirmed that the people on the list are contacts of the CCP’s United Front Works. “(The United Front) is a very large network. These people are responsible for promoting the CCP’s propaganda. They also try to influence city councils and other government institutions. This is how (the CCP) wants them to influence local politics in Germany.”

These United Front contacts are not traditional spies. Instead, they are more like “influence agents.” In other words, they are people in the West who create a favorable environment for the CCP, control Chinese communities, or suppress critics.

These “overseas Chinese” on the list hold either Chinese passports or have been naturalized as German citizens. The CCP has even targeted the descendants of Chinese immigrants. There are 60 million people in the Chinese diaspora globally.

For example, Mei Weiping (梅维平) is on the list. He is involved in the alumni network of the Konrad Adenauer Foundation and has served as the head of a subsidiary of the Beiersdorf Group. In China, he organized cooperation with a university, passing the company’s knowledge to China. He attended the Chinese People’s Political Consultative Conference, an event related to the United Front. He has been invited to watch the military parades multiple times as a guest of honor and praised the CCP’s military strength.

One influencer on the list, Liu Yuanhua (刘元华), has more than 400,000 followers on German Facebook, Instagram, and TikTok. Photos show her posing with Baden-Württemberg’s Governor Winfried Kretschmann, Federal Minister of Agriculture Cem Özdemir, and Stuttgart’s Finance Minister Danyal Bayaz.

Another person on the list, Kwong Weisen (邝伟森), head of the Hamburg Chinese Overseas Association, also has close connections with top federal political figures. This restaurant owner has a photo with then Hamburg’s First Mayor Henning Voscherau and German Chancellor Olaf Scholz, who has visited the restaurant multiple times.

Source: Epoch Times, October 9, 2024
https://www.epochtimes.com/gb/24/10/9/n14347471.htm

Briefings | | |   @CS Geo-Strategic Trend Government/Politics

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