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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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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 | | |   @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 | | |   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 | | |   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 | | |   Government/Politics

Lianhe Zaobao: South Korean Government Establishes Working Group on China’s Financial Risks

Singapore’s primary Chinese language-newspaper Lianhe Zaobao recently reported that the South Korean government has responded to elevated risk in China’s real estate industry by setting up a special working group, the “China Economic Situation Team,” focused on the impact of Chinese financial risk on the Korean economy.

According to the article, the group will work under the policy guidance of the Ministry of Finance, maintain close cooperation with multiple government branches such as the Bank of Korea (the Central Bank), the Ministry of Industry, Trade and Energy, and the Financial Commission, and pay careful attention to changes in China’s economic situation. In addition, the government’s high-level dialogue mechanism will also focus on China’s real estate financial risks.

Given that the Korean and Chinese economies are tightly linked, South Korea’s Ministry of Finance thinks that the South Korean government should closely monitor the impact of Chinese risk on the Korean financial market and real economy. South Korea’s Economic Emergency Management Working Group, chaired by the deputy minister of the Ministry of Finance, will discuss countermeasures, and the Committee on Macroeconomic and Financial Issues will also evaluate China’s economic situation frequently.

Source: Lianhe Zaobao, August 20, 2023
https://www.zaobao.com.sg/realtime/china/story20230820-1425349

Briefings | | |   Geo-Strategic Trend

SMIC’s Net Profits Down Significantly During First Half of 2023

Chinese semiconductor manufacturing company SMIC has released an earnings report for the first half of 2023. Well-known Chinese news site Sohu (NASDAQ: SOHU) reported that SMIC’s revenue was approximately US$3.023 billion during this period, a year-over-year decrease of 19.3 percent. Net profits were approximately US$634 million, a year-over-year decrease of 34.10 percent.

The company’s revenue from wafer fabrication decreased to US$2.759 billion during the reporting period, a 21.0 percent year-over-year decrease. Wafer fabrication represents nearly 90 percent of SMIC total business. Management stated that, due to global changes in the structure of the industrial chain and the re-integration and allocation of resources, it is foreseeable that future competition will be more intense.

SMIC expects that the unfavorable situation of “volume growth with price decline” in the second quarter will continue into the third quarter. This is due to the United States’ intensified pressure on China’s chip industry as well as the laggardly recovery of the global smartphone and consumer electronics industries.

According to the latest 2022 sales rankings released by pure-play foundry companies around the world, SMIC ranks fourth in the world and first among Mainland Chinese companies. As of now, China is still the world’s largest consumer market for integrated circuits and discrete devices.

Source: Sohu, August 25, 2023
https://www.sohu.com/a/714900415_258768

Briefings | | |   Information/Technology

Large Number of Steel Traders Bankrupt and Liquidated

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that, in August 2023, several cities and regions in China have successively experienced steel trader debt default incidents. Provinces and cities affected include Sichuan, Nanjing, Hangzhou, Guizhou and others. Jiangsu, Henan, Wuhan and some others have issued risk notices to warn all companies to pay attention to risk prevention, not be greedy for low prices, avoid “blind transactions,” and work together to overcome the unfolding financial crisis.

In the meantime, according to information from China’s National Enterprise Bankruptcy and Reorganization Network, a large number of steel traders have entered the stage of bankruptcy and liquidation. In just the first two weeks of August, 21 sizable steel traders received court rulings for bankruptcy and liquidation. Officials from the China Iron and Steel Association said that, in the face of development difficulties, steel companies “should jointly strengthen self-discipline, pay close attention to the total demand and structural changes of the downstream steel consumption industry, and reasonably control the steel inventory level.” The steel companies should jointly “determine production by sales,” i.e. do not turn cash into inventory; “determine production by efficiency,” i.e. do not cause operational cost increase; and “determine sales by cash,” i.e. do not turn sales into collection obligations.

Source: Sina, August 14, 2023
https://finance.sina.com.cn/money/future/wemedia/2023-08-14/doc-imzhemwz4905118.shtml

Briefings | | |   Economy/Resources

China Restricts What Apps Can be Installed on Mobile Devices

On July 21, 2023, a Chinese government website published a “Notice of the Ministry of Industry and Information Technology on the Filing of Mobile Internet Applications,” stating that Chinese companies are now required to register their mobile Internet Applications (hereinafter referred to as “apps”) with the Chinese government. Unregistered apps will not be supported by Chinese network access providers and content platforms.

Here are some key excerpts from the notice:

II. Task Specification

(1) Any app owners engaged in Internet information services in China should follow the “People’s Republic of China Anti-Telecommunications Network Fraud Law” and “Internet Information Service Management Measures” (State Council Decree No. 292) and other provisions to file their apps for the record. Those who have not filed shall not participate in app services.

(2) The Ministry of Industry and Information Technology will supervise and guide the national task of registering apps. The Communications Bureaus of provinces, autonomous regions, and municipalities are responsible for management of the implementation and supervision of app registration.

…

(9) Network access service providers, content platforms, and smart terminal manufacturers shall not provide network access, distribution, and pre-configuration services for apps that have not been registered.

Source: Chinese Government website, July 21, 2023
https://www.gov.cn/zhengce/zhengceku/202308/content_6897341.htm

Briefings | | |   Government/Politics Information/Technology