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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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HKTDC: Chinese Companies Planning Overseas Business

Hong Kong Trade Development Council (HKTDC) recently published a research study on Mainland companies’ overseas strategy changes when Belt and Road is now at its 10-year anniversary. The research focused on companies in the Canton Greater Bay Area and the Yangtze River Delta Region. The study found that, in the face of the slow recovery after the pandemic and the increasing business challenges in traditional overseas markets affected by geopolitical factors, many Mainland companies have adjusted their “going global” strategies. Around 83.9 percent of the companies surveyed said they are facing various challenges caused by geopolitical tensions, insufficient market demand, and financing difficulties, etc. Nearly 90 percent of the companies have plans to develop international business in the next one to three years. As many as 72.8 percent of the companies hope to explore business opportunities in RCEP and other Belt and Road emerging markets. They mainly plan to expand international business in four major areas: logistics and transportation (28.8 percent), marketing and sales (26.9 percent), investment and factory establishment (23.3 percent), and overseas procurement (15.9 percent). Successfully conducting international business requires extensive professional service support to assist them in planning and risk management. The study shows that the services most needed include: marketing and e-commerce (97 percent), financing and risk management (89.9 percent), product standards and ESG service support (89.2 percent), as well as tax planning and compliance (88 percent).

Source: HKTDC, September 5, 2023
https://research.hktdc.com/sc/article/MTQ3MTQ1NjU4OA

Briefings | | |   Economy/Resources Geo-Strategic Trend

People’s Daily: Worsening Homelessness Crisis in the U.S.

An article published by People’s Daily, titled “Homeless Problem in the U.S. Is Getting Worse,” talks about the deteriorating homelessness crisis in the United States. The piece cites several Western media outlets, stating that the number of homeless individuals in the U.S. has surged to 577,000, marking an 11 percent increase from the previous year and the most significant spike since 2007 when records were first maintained. This crisis is particularly pronounced in major U.S. cities, with Los Angeles witnessing a staggering 55 percent rise in homelessness since 2015. In New York, approximately one in every 80 people lacks shelter, and the number of homeless individuals in the city’s shelters has surpassed 100,000.

The article attributes this dire situation to “deeply-rooted social inequality” and the vast wealth disparity between the affluent and the impoverished in the U.S. It criticizes government policies as ineffective, emphasizing that the federal, state, and local governments are merely passing the issue around, engaging in political blame games, and implementing largely symbolic measures.

In conclusion, the article underscores that despite being the world’s most powerful developed nation, the presence of a substantial homeless population living on the streets tarnishes not only the U.S.’s human rights record but also its societal governance and governmental efficacy. It quotes Nobel Prize-winning economist Joseph Stiglitz’s assertion that the United States has become a wealthy nation full of poor people.

Source: People’s Daily, September 9, 2023
http://world.people.com.cn/n1/2023/0909/c1002-40073771.html

Briefings | | |   US-China Relations

Chinese Think Tanker: Traditional Economic Stimulus Ineffective in China’s New Normal

Cai Fang (蔡昉), Chief Expert of Chinese Academy of Social Sciences’ National High-end Think Tank, delivered a speech on September 3, highlighting that China’s economy has transitioned into a new normal, rendering traditional stimulus approaches obsolete.

Cai identified three key characteristics of China’s new economic landscape from both macro and micro perspectives:

  1. A rapidly declining population and a significant decrease in its labor force.
  2. Weak consumer demand, exacerbated by demographic aging.
  3. Mounting pressures in labor market, including labor shortages and the need to align the workforce’s skills with evolving industry demands.

Cai proposed three strategic policy directions:

  1. Promote a Competitive Environment: Encourage the removal of less competitive companies to stimulate innovation and enhance productivity.
  2. Rethink Traditional Macroeconomic Stimulus: Recognize that traditional stimulus measures no longer align with today’s economic landscape. For example, previous approaches emphasized infrastructure spending, which does not address the job-seeking preferences of today’s youth, who seek opportunities in the service sector rather than construction.
  3. Advance structural Reforms: Prioritize reforms such as the overhaul of the Hukou (household registration) system to incentivize urban-bound rural residents to increase their spending in urban areas.

Source: 21st Century Business Herald,  September 3, 2023
https://www.21jingji.com/article/20230903/herald/0c1fef010ce245062614214b69e74d02.html

Briefings | | |   @CS Economy/Resources Government/Politics

“Creative” Fees and Charges Emerge in China

A recent report listed a series of “creative” charges in China, driven either by profit-seeking motives or the necessity to survive a sliding economy.

  • High School Air Conditioning (AC) Service Charges: A high school opted to outsource its AC services to a company. To recoup equipment and installation costs, the company levied a fee of 9.9 Yuan per hour for each classroom and 3.9 Yuan per hour for each dorm room when students used the AC.
  • Hotel Charging Cable Fees: Some hotels have introduced fees for using their charging cables to power mobile devices, a service that was previously complimentary.
  • Massage Chairs in Public Spaces: A train station replaced its standard chairs with massage chairs, and numerous movie theaters have installed massage chairs in its premium seating areas, offering these seats at a higher price.
  • Nap Fees at High Schools: Recognizing the post-lunch nap habit among Chinese people, a high school instituted varying fees for students who wishes to nap on a bed, mat, or desk (where students sit with their arms on the desk and rest their heads on their arms).
  • College Library Study Rooms: Several colleges have transformed library rooms into “private study rooms” and imposed charges for their use, diverging from the traditional concept of libraries as free study spaces.

Source: QQ, September 5, 2023
https://new.qq.com/rain/a/20230905A04WZB00

Briefings | | |   Economy/Resources

China’s First Province-Level Anti-Espionage Regulations

On September 1, 2023, the Chongqing municipal government implemented a set of detailed regulations called the “Chongqing Anti- Espionage Work Regulations.” It is the first local government in China to implement such rules following publication of the central government’s revised “Counter-Espionage Law” in July.

Chongqing’s regulations contain 29 articles. The first three articles echoed the central government’s Counter-Espionage Law. Starting from the fourth article, Chongqing’s regulations emphasize the supervisory role of the municipality’s state security agency. They call for close cooperation of various governmental departments in carrying out counter-espionage work, including the department of cyberspace administration, Taiwan affairs, national defense and science and technology, development and reform, education, science and technology, ethnic and religious affairs, public security, civil affairs, natural resources planning, urban and rural construction, commerce, veterans’ affairs, foreign affairs, postal management, and culture and tourism.

Civil services and public institutions will include counter-espionage propaganda in their training programs, and the education system will include such material in its teaching content.

For individuals involved in foreign exchange or collaboration, the regulations mandate a pre-departure anti-espionage education, a program of “overseas management” while the individual is abroad, and a post-return meeting. They also require that institutions stationed overseas or institutions who send people overseas develop espionage-prevention plans.

Many foreign organizations and individuals have been cautious about engaging with China since the Chinese Communist Party (CCP) pushed out the state-level “Counter-Espionage Law.” This has led to a significant reduction in foreign investment and travel to the country.

Source: Epoch Times, September 2, 2023
https://www.epochtimes.com/gb/23/9/2/n14065721.htm

Briefings | | |   Geo-Strategic Trend Government/Politics

700,000 Chinese Villages Owe 900 Billion Yuan in Debt

China Newsweek Magazine published an article stating that “small villages with big debts” have become a problem that cannot be ignored. A survey by China’s Ministry of Agriculture and Rural Affairs Development found that, as of the first half of 2019, China’s 700,000 administrative villages have accumulated a total of 900 billion yuan (US$123 billion) in debt. Average debt has reached 1.3 million yuan per village.

Source: China Newsweekly, September 8, 2023
http://www.heb.chinanews.com.cn/zgxwzk/20230908438999.shtml

Briefings | | |   @CS Economy/Resources Government/Politics

Chinese Scholar: China Is Facing The Worst External Environment in 40 Years

Wang Wen, Executive Director of Chongyang Institute for Financial Studies, Renmin University of China, published an article stating that China is facing the worst external environment in 40 years.

Wang listed three points regarding the international environment:

  1. China’s annual and quarterly economic growth rate became lower than that of the United States, which has not been seen for more than four decades.
  2. There are signs that production and supply chains are moving out of China, also not seen for more than four decades.
  3. The United States has coordinated a political consensus and comprehensive action among Western countries regarding the “China threat,” also not seen for more than four decades.

Wang gave a few strategic prescriptions for easing China’s situation (a nice way of implying that the authorities have made strategically poor decisions):

  1. Reflect on the long-term, difficult, and complex nature of the rise (of China) as a great power. {Editor’s Notes: The author is suggesting that China has not reached the great power that it wants to achieve; it still needs time to continue building up its power.}
  2. Objectively face the basic fact that the U.S., though it will decline, has not yet declined too much.
  3. Objectively face the basic fact that China, though it will surpass the U.S., has not yet surpassed it.
  4. Chinese society needs to mentally prepare for the worst and most dire scenarios to occur.

Source: Sohu, August 27, 2023
https://www.sohu.com/a/715303788_120094090

Briefings | | |   @CS Government/Politics US-China Relations