Chinascope – Page 78

UDN: Czech Central Bank Liquidates RMB Bond Holdings

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that the Czech Republic’s central bank announced that it has liquidated all of its RMB bond holdings. People familiar with the matter said that this move was primarily motivated by political factors and risk of Chinese invasion of Taiwan.

The Czech-China relationship had cooled significantly since the beginning of this year. The UDN report cited a Financial Times interview with newly-elected Czechian president Petr Pavel, who said “China and its regime is not a friendly country at this moment, it is not compatible with western democracies in their strategic goals and principles.” Pavel was the first elected European head of state to speak to Taiwanese president Tsai Ing-wen. China’s foreign ministry said that Pavel “ignored China’s repeated attempts to dissuade him” and “persisted in stepping on China’s red line”.

According to the latest data released by the Czech National Bank, as of June 30 this year the Czech central bank no longer had any RMB assets in its investment portfolio. In the foreign exchange reserve currency allocation table, the RMB column is no longer present. Members of the Czech financial regulatory organization confirmed that the possibility of a Chinese attack on Taiwan went into the decision to liquidate RMB positions, as did the “economic and non-economic context” surrounding the Czech-China relationship.

At the end of March 2023, the Chinese currency RMB still accounted for 1.9 percent of the foreign exchange reserves of the Czech National Bank. The Czech Republic has been deepening its ties with Taiwan, including exchange of high-level political visits, direct flights between Taiwan and Prague, and a commitment to co-operate in computer chip development.

Sources:

UDN, September 1, 2023
https://udn.com/news/story/7333/7409636

Financial Times, February 1, 2023
https://www.ft.com/content/df41b4a8-97f0-4e20-9ef4-4a53c0ab8f30

Briefings | | September 5, 2023 | Geo-Strategic Trend

Global Times: U.S. Restricts AI Chip Exports to Middle East

China’s Global Times recently published a report on social media regarding new U.S. restrictions that prevent technology companies NVIDIA and AMD from exporting advanced AI chips to the Middle East. Analysts say the restrictions are aimed at preventing Middle Eastern countries from reselling the chips to China.

In a recent regulatory filing for its A100 and H100 chips, NVIDIA disclosed that the Biden administration’s new measures will affect exports of those chips. It’s not clear which specific countries are targeted by the new export controls.

In October of last year, the Biden administration announced its implementation of artificial intelligence (AI) chip export controls targeting China. NVIDIA’s A100 and the H100 were restricted, and AMD’s exports were similarly restricted by the U.S. government. Both companies stated that, although the new control measures will affect the export of some products, they will not have a direct and significant impact on the companies’ business performance.

On the one hand, the U.S. may be concerned about China’s acquisition of advanced AI chips from Middle Eastern countries, especially considering the close relationship some Middle Eastern countries have with China. On the other hand, the U.S. export controls may not be aimed at curbing AI tech acquisition by China alone; they may also be part of U.S. policy targeting Middle Eastern countries specifically.

Compared with the earlier U.S. measures that targeted exports to China specifically, these latest controls targeting Middle Eastern countries have a less-direct impact on China’s AI industry. According to the Global Times report, however, they still reflect the U.S.’s attempt to stifle China’s semiconductor and AI capabilities.

Source: Global Times, August 31, 2023
https://tinyurl.com/mvuph8k7

Briefings | | September 5, 2023 | Geo-Strategic Trend US-China Relations

China’s Three Major Airlines Report Heavy Losses for First Half of 2023

A number of Chinese airlines recently released their annual reports. The three leading airlines, Air China, China Eastern Airlines, and China Southern Airlines, posted a total combined loss of about 12.58 Billion Yuan (US$1.73 Billion) in the first half of 2023. Air China reported a net loss of 3.45 Billion Yuan, China Eastern Airlines lost 6.25 Billion Yuan, and China Southern Airlines lost 2.88 Billion Yuan.

The current number of foreigners traveling Beijing and Shanghai is only about 10% of what it was before the start of the COVID-19 pandemic. Some tour guides said that this has been the first time in their 30 years as tour guides that they don’t have foreigner tour groups to service.

Source: Radio Free Asia, August 31, 2023
https://www.rfa.org/mandarin/yataibaodao/gt1-08312023011737.html

Briefings | | September 1, 2023 | Economy/Resources

CCP Publishes Textbooks on “Xi Jinping Thought”

The Chinese Communist Party (CCP) is known for brainwashing the public, especially young people, with communist ideology and lies. Recently, PRC media outlet Xinhua reported that the CCP Central Propaganda Department, in conjunction with the Ministry of Education, created a textbook titled “Introduction to Xi Jinping Thought on Socialism with Chinese Characteristics for the New Era.” The textbook will be distributed nationwide, effective immediately.

Xinhua said the text book is designed to “further promote Xi Jinping Thought in teaching materials, in classrooms, and in (student’s) minds.”

Source: Xinhua, August 28, 2023
https://www.gov.cn/yaowen/liebiao/202308/content_6900617.htm

Briefings | | September 1, 2023 | @CS Government/Politics

Cantonese Language Advocacy Group Ceases Operation Amid National Security Bureau Investigation

The chairman of Societas Linguistica Hongkongensis (SLHK), a Cantonese language advocacy group in Hong Kong, has announced the immediate cessation of its operations amid an investigation into suspected violations of Hong Kong’s National Security Law. The investigation centered around Chan Lok Hang, a Hong Kong Baptist University graduate who previously initiated a referendum against mandatory Mandarin education at the university.

Hong Kong’s National Security Bureau (NSS) officers searched Chan Lok Hang’s residence and questioned those present, expressing concern about a Cantonese essay competition organized by SLHK three years ago. The officers said that one of the essays may have violated Hong Kong’s National Security Law. As Chan was not present in Hong Kong during the search, the NSS officers relayed a message to him through his family.

To safeguard his family and former SLHK members, Chan sought legal counsel, halted all SLHK operations, and began dissolving the organization. SLHK had been registered for a decade with the goal of safeguarding the language rights of Hong Kong residents.

Chan, a biomedical sciences graduate, gained recognition during his studies for advocating Cantonese and opposing the use of Mandarin for teaching Chinese in primary and secondary schools. He led a campaign against Mandarin language requirements at Hong Kong Baptist University, which has traditionally demanded students to pass a Mandarin exam before graduation. In 2016, Chan organized a successful referendum with over 400 student signatures, 90% opposing mandatory Mandarin study. This movement even led to a temporary occupation of the university’s language center. After a hearing, Chan received a service order from the university management.

Source: Central News Agency (Taiwan), August 29, 2023
https://www.cna.com.tw/news/acn/202308290138.aspx

Briefings | | August 31, 2023 | Government/Politics

Chinese Sentiment Negative After Japan Drains Nuclear Waste Water

Following Japan’s release of diluted nuclear waste water from the Fukushima nuclear reactor into the sea, Japanese individuals in China are facing heightened pressure. Japanese parents living in China are concerned for the safety of their children. Japanese restaurants in China have also been affected, experiencing a significant drop in number of customers.

China’s response to Japan’s release of the waste water has been strong, suspending all imports of Japanese aquatic products. Anti-Japanese sentiment in China’s private sector, previously sporadic, has surged following the event.

There have been protests outside of Japanese embassies and incidents reported at Japanese schools. Protesters threw eggs at a Japanese school in Suzhou, while other threw stones at a Japanese school in Qingdao. Japanese parents living in China are anxious, worrying about their children’s safety on their way to and from school.

Chinese suspicion towards Japanese brands has grown following the Fukushima water discharge — reports indicate consumers returning Japanese skin care and beauty products in protest. Anti-Japanese sentiment has even impacted Chinese families, with Japanese restaurants run by Chinese owners seeing a sharp decline in business. Despite not being Japanese-owned, the restaurants have suffered due to customers avoiding anything related to Japan. The combined impact of these events on Japanese businesses comes in addition to recessionary headwinds affecting the Chinese economy more broadly, creating a challenging situation.

Source: Central News Agency (Taiwan), August 29, 2023
https://www.cna.com.tw/news/acn/202308290115.aspx

Briefings | | August 31, 2023 | Geo-Strategic Trend

CCP Increases Support for Young Talent in the Sciences

The Chinese Communist Party (CCP) Central Committee and the Chinese State Council have issued a document titled “Measures to Further Strengthen the Training and Utilization of Young Scientific and Technological Talents.” The initiative is a response to Western technological containment of China. The document emphasizes boosting the role of young talent in key scientific and technological initiatives.

The directive focuses on motivating and guiding young scientific and technological talents towards achieving “high-level scientific and technological self-reliance” as part of China’s journey towards “modernization and national rejuvenation.”

The measures encourage the involvement of young talents in major national scientific tasks and core technology research, setting a minimum 50% representation of individuals under 40 years of age as project leaders or core members. Funding through China’s National Natural Science Foundation for these talents is prioritized, ensuring a minimum of 45% of projects are supported.

Additional support comes from the relaxation of age, title, and qualification restrictions for participation in the National Key Research and Development Program for Young Scientists. Young scientists are further urged to lead their own research projects, with a goal of 60% of initiative leaders being under 40.

To alleviate burdens on young scientists, the initiative promotes reducing non-research obligations, aiming for over 80% of their workweek being dedicated to research. A focus on work-life balance is also promoted through improved remuneration, regular medical check-ups, psychological counseling, academic leave exploration, and fostering a supportive research environment.

Local CCP committees and governments are instructed to treat young scientific and technological work as a strategic endeavor, aligning it with regional talent development and overall economic and social growth.

The document seeks to strengthen China’s technological capabilities by harnessing the potential of its young scientific and technological talents, fostering a new generation of leaders to drive the country’s scientific progress and technological innovation in the face of international competition.

Source: Central News Agency (Taiwan), August 27, 2023
https://www.cna.com.tw/news/acn/202308270182.aspx

Briefings | | August 31, 2023 | Government/Politics

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

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