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“Patriotic” Leader of American Fujian Association Publicly Berates Chinese Consul-General

Radio Free Asia recently published an article on the American Fujian Association’s apparent internal division and conflict with the Chinese Consulate. The American Fujian Association is a U.S.-based organization that has long been regarded as a pro-Communist overseas Chinese organization with extensive ties to the Chinese consulate.

On the evening of March 18th, the American Fujian Association in New York held a swearing-in ceremony for its “Co-President” Liu Aihua at the Junhao Restaurant in Flushing, New York. The honorary chairman of the Fujian Association, Chen Xueduan, a “patriotic overseas leader” for the Chinese community in the U.S., openly berated the Chinese Consul-General in New York, Huang Ping. In an online video, Chen stood on stage with Liu and three other members, holding a microphone and loudly addressing the audience, “President Liu Aihua is now suppressed by someone, by whom? By the Chinese consulate!” “No matter who suppresses him, we are patriots [of China], we will always be patriots. Huang Ping, the Consul-General, is a puppet Consul-General. When he was in power, he was high and mighty; but when he gets put into prison, he can only cry!” Chen also asked the media present to spread his speech.

Chen’s words received enthusiastic response from the audience, both on and off the stage.

The American Fujian Association has a history of 82 years. Recent years have seen internal disputes within the organization, leading to internal division and multiple groups acting independently. It currently has “Co-Presidents.” The Chinese Consulate at New York supports “President” Chen Heng, and on March 16th Consul-General Huang Ping attended an 82nd anniversary celebration hosted by Chen. But Huang didn’t attend “President” Liiu Aihua’s swearing-in ceremony on March 18th.

When it comes to suppressing overseas democratic activists or attacking Falun Gong and other faith groups and ethnic minority groups, the Fujian Association members frequently act as convenient “enforcers” for the Chinese consulate. In recent years, the U.S. has intensified efforts to combat Beijing’s infiltration in the U.S. On April 18, 2023, the FBI arrested two leaders of the Fujian Overseas Chinese Association in New York, Lu Jianwang and Chen Jinping, accusing them of operating a “secret police station (for China)” in Manhattan’s Chinatown and attempting to act as agents of China. Both of these individuals are key members of the Fujian Association.

Some commentators have said that Chen Xueduan’s berating of the Chinese Consul-General is a “call to desertion,” indicating that the Communist Party is about to collapse and its days are numbered.

Source: Radio Free Asia, March 27, 2024
https://www.rfa.org/mandarin/yataibaodao/gangtai/kw-03272024103015.html

Chinese Ministry of State Security: ‘Military Fans’ at High Risk of Becoming Espionage Targets

China’s Ministry of State Security has issued another stern warning about the potential national security threats posed by military enthusiasts, or “military fans.” The ministry says this group is a high-risk target for espionage, theft of secrets, and leaks involving military matters.

In an article titled “Another Reminder for ‘Military Fans'” published earlier this month, the ministry outlined several specific risks pertaining to this community’s activities. The article states that military fans could inadvertently “guide” foreign intelligence operations by revealing sensitive military information, their online military forums and groups could become channels for overseas theft of secrets, and individual military fans could become targets for “screening and enticement” by foreign personnel acting as “insiders.”

On March 7th, the ministry’s official WeChat account delved deeper into the risks involved. The WeChat post noted that Chinese military fans obsessively track developments of advanced weapons and equipment, closely following details such as equipment quantities and models, troop locations, and aircraft serial numbers. They establish databases compiling this sensitive information and share it on websites, constantly expanding and refining the available data. “As time goes by, this information will become increasingly rich and professional, to the point of endangering military security,” the Ministry of State Security warned.

This is not the first time that Beijing has raised alarms about the activity of military fans. On December 23rd of 2023, the Ministry cautioned fans against leaking information on construction progress, technical specifications, or deployment details of new military equipment. The Ministry’s communication at that time stated that violations could result in prison sentences of 3 to 7 years. China’s security establishment clearly views information gathering and sharing by these military enthusiasts as a critical risk to be proactively addressed.

Source: Radio Free Asia, March 20, 2024
https://www.rfa.org/mandarin/yataibaodao/zhengzhi/ql2-03202024033509.html

China Expands Security Ties in Indian Ocean, Intensifying Rivalry with India

China has recently intensified efforts to deepen security ties with countries in the Indian Ocean region. It has signed a new security agreement with the Maldives, and it dispatched a military delegation to visit three other countries in the region earlier this month.

On March 4th, the Maldives’ Defense Ministry announced the signing of a military assistance agreement with China to “nurture stronger bilateral ties.” Details were not provided. China’s Defense Ministry also sent a delegation on a 10-day visit to the Maldives, Sri Lanka and Nepal. They met with Maldivian President Mohamed Muizzu and Maldives defense officials to “discuss regional security issues of common concern,” develop bilateral military relations, and promote defense cooperation.

Concurrently, India began withdrawing around 80 security personnel from the Maldives at Muizzu’s request. The Indian personnel had been deployed to operate helicopters and aircraft for surveillance or rescue operations.

Chinese research vessel activity near the Maldives has increased recently. A Chinese research vessel visited the Maldives last month, raising Indian security concerns that Beijing could use gathered data to deploy naval ships to the region.

Analysts suggest that the Indian Ocean region is becoming another arena for geopolitical rivalry over the next decade, with the potential for low-level conflicts between major powers like India and China. According to David Brewster of the Australian National University, China’s recent developments in the area are part of long-term efforts to boost the country’s regional security presence. Brewster said “China has been doing this for about 15 years, seizing opportunities to increase its Indian Ocean presence.”

India has been taking steps to bolster its own presence in the region and partner with like-minded democracies. Indian policymakers may worry about China’s increasing security footprint in the Indian Ocean.

Source: Voice of America, March 19, 2024
https://www.voachinese.com/a/china-presence-in-indian-ocean-20240319/7534315.html

China’s Austerity Drive: Provinces Implement “Belt Tightening” Measures

China’s economic slowdown has adversely impacted government fiscal revenues. According to Taiwan’s Central News Agency, there are reports of salary cuts and clawbacks of government allowances. Starting in February, Inner Mongolia, Hunan, and Beijing successively introduced concrete “belt tightening” measures. These measures dictate that, when possible, old office furniture, computers, official vehicles, and other items should be repaired for continued use rather than being replaced.

Beijing took the lead in implementing such measures, announcing 19 initiatives in February. The measures include a directive to fully utilize public property warehouses for resource allocation, aiming to achieve a 50% year-on-year increase in quantity and transfer of stockpiled assets. Other directives include optimizing the use of relocated housing and land as well as improving the efficiency of official vehicle usage.

On March 8th, Hunan province announced 10 specific belt-tightening measures covering office space, official vehicles, receptions, and energy conservation by public institutions. Notably, the measures include a 40% reduction in office maintenance fees, capping property service costs at national standards and budgeted amounts. Additionally, official vehicles can only be replaced after 8 years of use and over 250,000 km driven (provided they remain serviceable).

In mid-March, Inner Mongolia unveiled a multi-part belt-tightening plan including measures for strict budget enforcement, regulation of government procurement, control over certain expenditure categories, lowering of operating costs, promotion institutional frugality, and strengthening of fixed asset management. Projects with favorable performance evaluations are to receive priority funding, while underperforming projects may face budget cuts. The plan emphasizes repair and reuse of office equipment when possible as well as a 20% reduction in external rentals by the local government.

China’s annual central economic meeting in December 2023 called on party and government bodies to “get used to belt tightening.” The Chinese Finance Minister underscored the necessity of fully implementing this requirement, stating “Any money that can be saved should be saved, and not a single cent should be spent unnecessarily. Financial resources should be concentrated on major undertakings.”

Source: Central News Agency (Taiwan), March 24, 2024
https://www.cna.com.tw/news/acn/202403240184.aspx

CNA: China’s Personal Income Tax Revenue Fell Significantly in First Two Months of 2024

Primary Taiwanese news agency Central News Agency (CNA) recently ran a story on statistics released by China’s Ministry of Finance. According to the data, Chinese tax revenue during the first two months of 2024 saw a year-over-year decrease of four percent, and personal income tax revenue suffered a significant reduction of 15.9 percent.

“Personal Income Tax Revenue Decline” quickly became a hot topic on Chinese social media, with more than 170 million topic views on Weibo. In online discussion boards, consensus has emerged among a majority of netizens that the driving reasons behind the decline in personal income tax revenue are lowered wages and widespread layoffs.

In China, generally speaking, those with an annual salary of less than RMB 100,000 yuan (US$14,000) do not need to pay personal income tax. Some experts pointed out that China’s post-COVID economic recovery in 2023 was not as strong as expected, and some companies reduced or did not pay year-end bonuses to employees. In addition, some foreign trade companies have seen business volume fall and staff salaries reduced.

Chinese government officials are optimistic regarding the rest of the year, expecting personal income tax revenue for the whole of 2024 to increase by about 6.3 percent compared with 2023.

Source: CNA, March 22, 2024
https://www.cna.com.tw/news/acn/202403220330.aspx

Lianhe Zaobao: South Korean Direct Investment in China Drops Sharply

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported on data released by South Korea’s Ministry of Finance showing that South Korea’s 2023 new direct investment in China dropped by 78.1 percent year-over-year, falling to US$1.87 billion. This is the largest decline in South Korean direct investment in more than 30 years, and it is the first time since 1992 that China has failed to rank among South Korea’s top five destinations for investment. The manufacturing sector  led the decline in investment.

The declining numbers reflect China’s changing role in South Korea’s economy as Washington seeks to reduce Beijing’s influence on global supply chains. The United States is about to replace China as South Korea’s largest export destination, importing products ranging from semiconductors to automobiles. South Korean companies have extensive exposure to key sectors in the U.S. and have been seeking to increase investment there to take advantage of the United States’ market scale and  government subsidies.

According to statistics from the Korea International Trade Association, China’s imports from South Korea last year were US$162.5 billion, a sharp drop of 18.8 percent from the previous year. This led to a US$18 billion trade deficit between South Korea and China, the first trade deficit seen during the 31 years since the establishment of diplomatic relations between China and South Korea.

Source: Lianhe Zaobao, March 15, 2024
https://www.zaobao.com.sg/realtime/world/story20240315-3160390

RTI: Japanese Company Bridgestone Closes Shenyang Factory

Radio Taiwan International (RTI) recently reported that Bridgestone, Japan’s largest tire manufacturer, announced the closure of its factory in the Chinese city of Shenyang. The company also plans to terminate the production and sales of commercial vehicle tires in China during the first half of 2024. The Bridgestone Group has been operating in China for more than 20 years. Bridgestone closed its tire factory in Huizhou, Guangdong Province at the end of 2021 and transferred production capacity and equipment to Shenyang.

Japan was the first country to have foreign businesses enter China during the modern era. In recent years, foreign companies, including many from Japan, have withdrawn from the Chinese market. Experts have said that Japan is a “weathervane” for foreign investment in China, and that foreign business withdrawals from China are now accelerating. This is quite inconsistent with the Chinese government’s messaging around business-friendliness. Since last year, world-renowned companies including Japan’s Canon, SONY, Toshiba, Nikon and South Korea’s Samsung have withdrawn from China, affecting tens of thousands of Chinese employees.

Source: RTI, March 15, 2024
https://www.rti.org.tw/news/view/id/2199093

China Threatens Paraguay Over Diplomatic Relations with Taiwan

At the Chinese Foreign Ministry’s press conference on March 25, a reporter asked: “According to reports, Paraguayan President Peña said on March 23 in a social media post that the 66 years of diplomatic relations between Paraguay and Taiwan have been ‘deep’ and ‘friendly.’ And this has not hindered Paraguay’s trade with China, as the country is still exporting soybeans to China. What is China’s comment on this?”

Foreign Ministry spokesman Lin Jian stated that there is only one China in the world, Taiwan is an inalienable part of China’s territory, and the government of the People’s Republic of China is the sole legitimate government representing all of China. “China is the world’s top soybean importer. According to official Chinese statistics, China has imported zero soybeans from Paraguay in recent years. If the Paraguayan government truly wants to work for the development of the country and the wellbeing of its people, it should see the big picture and choose to stand on the right side of history, instead of putting its mind on ‘playing smart’ and ‘exploiting loopholes.'”

Source: Xinhua, March 25, 2024
http://www.news.cn/world/20240325/8d6027121dd741cf92f016423ca23259/c.html