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Xi’an Government Threatens to Punish Families of Alleged Fraudsters Staying Abroad

The Chang’an Branch of the Xi’an Municipal Public Security Bureau, Shaanxi Province, issued a notice on August 14 regarding individuals staying abroad who are “highly likely to have engaged in fraud.” Among those mentioned were those “staying in northern Myanmar,” “staying in the Golden Triangle,” “staying in the UAE,” and “staying in Cambodia.” The article didn’t name specific crimes committed. {Editor’s Note: This might refer to people involved in the crime rings of Internet fraud operated in those areas, but it may also include people trying to escape the communist regime by going to those countries to apply for asylum.}

The notice stated that “those individuals involved in fraud who are illegally staying overseas” must return through official channels by September 10. They must also report to local police stations 14 days before entry to China. Failure to comply with the order would result in “the individual and those within his/her direct three generations being subject to strict scrutiny during political examination when applying to join the Communist Youth League, the Communist Party, and the military, or when applying for the jobs of civil service and positions supported by public funding.” The term “three generations” include grandparents, parents, children, and grandchildren.

Source: Radio France International, August 16, 2023
https://www.rfi.fr/cn/中国/20230815-西安通告-家有嫌犯不归-查直系三代

Qiushi: Xi Jinping’s Speech on Modernization With Chinese Characteristics (Not “the Old Path of the Western Countries”)

Qiushi Theory recently published speech given by Xi Jinping. The speech was given on February 7, 2023, following the CCP’s 20th Party Congress. The audience was the newly “elected” members and alternate members of the Chinese Communist Party’s (CCP’s) Central Committee as well as major leading cadres at the provincial and ministerial level.

Xi stated: “The path of modernization that a country chooses is determined by its historical tradition, social system, development conditions, external environment, and many other factors. Different national conditions will lead to different paths of modernization. Practice has proved that a country’s modernization should not only follow the general law of modernization, but also conform to its own realities and have its own characteristics. Chinese-style modernization has the common features of modernization in all countries, but it also has distinctive features based on its own national conditions.”

Xi further stated twice that China should not take the “old path of Western countries.” {Editor’s note: the problems that Xi highlights as resulting from “the Western path” of modernization have already come to pass in China. See below.}

“Fourthly, the modernization of mankind in harmony with nature. Since modern times, most of the modernization of western countries have gone through the stage of wanton plundering of natural resources and vicious destruction of the ecological environment, often causing serious problems such as environmental pollution and resource depletion while creating huge material wealth. … (I)t is impossible for China to follow the old path of Western modernization.”

“Fifthly, modernization on the path of peaceful development. The modernization of Western countries is full of bloody evils such as war, slavery, colonization, and plundering, and has brought deep suffering to the vast number of developing countries. The Chinese nation, having experienced the tragic history of invasion and abuse by Western powers, is well aware of the preciousness of peace and will never repeat the same old path of the Western countries.”

Source: Qiushi, August 15, 2023
http://www.qstheory.cn/dukan/qs/2023-08/15/c_1129801483.htm

Guangcha: U.S. Media Reported on China’s New Airport at Disputed Island Near Vietnam

Chinese media outlet Guangcha reported on a story run by U.S.-based news website The Drive. The “Warzone” of section of The Drive reported that China is building an airport on Triton Island, a small island among the disputed Paracels archipelago in the South China Sea. Triton Island is the closest of the archipelago’s islands to the coast of Vietnam.

Satellite images show a newly constructed runway, a large construction area, and a cement factory. The Drive’s article notes swift progress on construction of a 600-meter (2,000 feet) runway which the article says enhances logistic and aviation support capabilities, strengthening the Chinese army’s presence. The runway could be used for hosting short takeoff and landing fixed-wing types, such as turboprops and light aircraft, and also unmanned drones. According to the article, the island expands China’s surveillance and regional denial capabilities and may also be able to host forward operations such as submarine base.

The Guangcha article, after republishing some content from the article by The Drive, quoted Wang Wenbin, spokesperson of China’s Ministry of Foreign Affairs: “The U.S.’ use of the South China Sea issue to provoke issues among regional countries is extremely irresponsible and has ulterior motives.” “China, together with ASEAN countries, will continue to work to maintain peace and stability in the South China Sea and to promote prosperity and development in the region.”

{Editor’s Note: Guangcha is a Chinese media outlet that translates or summarizes reports from media in other countries with the purpose of aggrandizing the Chinese communist regime or of criticizing the U.S. and other Western countries, taking shots at the Western democratic system and “`values.}

Sources:
1. Guangcha, August 17, 2023
https://www.guancha.cn/military-affairs/2023_08_17_705410.shtml
2. The Drive, August 15, 2023
https://www.thedrive.com/the-war-zone/runway-being-built-on-chinas-closest-island-outpost-to-vietnam

US Order Banning Sensitive Investments in China: Impact on EU

German state-run media Deutsche Welle reported that the U.S. government has passed an executive order to restrict US corporate investment in China in key areas such as semiconductors and AI. This has implications for European businesses — the order reportedly applies not only to U.S.-based firms but also to European firms managed by US citizens.

Berlin regarded the new U.S. order with caution, noting that the E.U. is examining security risks associated with investment in third-party countries.  A spokesman for the German Ministry of Economic Affairs stated that, while Germany has mechanisms to screen Chinese investments, controlling outbound investments in China is a complex task.

Meanwhile, the E.U. announced that it will use a new tool to prevent circumvention of export bans related to sensitive technology, working with E.U. member states to identify affected tech areas like quantum computing and AI.

Some have criticized the U.S. order as lacking economic justification, saying that the US is using national security arguments to justify protectionism against China.

Source: Deutsche Welle, August 15, 2023
https://p.dw.com/p/4VCfM

China Squeezes German Products in European Market

German newspaper Handelsblatt reports growing concern among German companies over rising competition from Chinese exports, not just in low-tech goods but increasingly in complex, high-tech products. A recent study by the German Institute for Economic Research found China’s share of EU imports in industrial goods such as machinery and autos is rapidly increasing, while Germany’s is declining. In 2000, China accounted for just 2.5% of EU industrial imports versus 17.7% for Germany; by 2022, China’s share grew to 13% while Germany’s declined to 15.5%.

Experts attribute China’s gains to generous government subsidies throughout entire supply chains as well as the country’s recent efforts to catch up on technology and innovation. In machinery, China’s EU import share grew from 6.8% in 2010 to 11.4% last year, while Germany’s share fell from 22.6% to 20.5%. The auto market could be China’s next target, with capacity to produce 40 million EVs annually, greatly exceeding China’s domestic demand of 20-25 million units annually.

Source: Deutsche Welle, August 15, 2023
https://p.dw.com/p/4VCfM

Chinese MSS: Retired Cadres Plotted “Death Squads” to Topple Regime

The China’s Ministry of State Security (MSS) website revealed that in 2016 it uncovered and foiled a plot by a retired school official in Yunnan province to “violently overthrow the government.” The official, surnamed Su, had posted anti-government rhetoric online for years before contacting members of a “foreign hostile organization” to purchase weapons and recruit “death squads” for what he called the “Benghazi Project of China.” Su planned to carry out violent operations to subvert state power. China’s state security organs reportedly identified and arrested all those involved while the plot was still in early stages of planning.

The MSS said this case reflects the threat of “color revolutions” (referring to revolutions in post-Soviet states attempting to establish Western-style liberal democracy) and other attempts by “hostile forces” to undermine China’s political system and Chinese Communist Party leadership. “Political security is the foundation of national security,” it emphasized.

Source: Central News Agency (Taiwan), August 15, 2023
https://www.cna.com.tw/news/acn/202308150324.aspx

Chinese Automakers Now Dominate Half of Russian Car Market

Central News Agency (Taiwan) reported that Chinese automakers’ market share in Russia has surged to 52%, making Russia the largest overseas market for Chinese cars. This growth in market share follows the suspension of exports to Russia by automakers from many other regions, a reaction to Russia’s invasion of Ukraine. Chinese brands have taken advantage of this situation, filling the void left by foreign auto firms.

In July, China’s Chery sold 17,735 cars in Russia, up 4.2 times from the same period last year. Geely sold 8,800 new cars in Russia, and several other Chinese brands also made the top 10 in terms of sales volume in Russia.

The report noted that, due to import tariffs and other factors, Chinese cars retail in Russia at much higher prices than they sell for in China. Chinese cars are still competitive in the Russian market, however, as the Chinese brands have been able to deliver value by focusing on a small number of models with high product strength.

The Russian market is only one facet of the recent, dramatic increase in Chinese automobile exports. In the first half of this year, China’s automobile exports to all regions increased by 76.9% annually, surpassing Japan as the world’s top auto exporter.

Source: Central News Agency (Taiwan), August 15, 2023
https://www.cna.com.tw/news/acn/202308150387.aspx

Lianhe Zaobao: China Foreign Investment Index Falls to 25-Year Low

Singapore’s primary Chinese language newspaper, Lianhe Zaobao, recently reported on data released by China’s State Administration of Foreign Exchange. The data show, between April and June of 2023, the growth rate of direct investment liabilities, a measure of foreign direct investment in China, dropped to US$4.9 billion.

The reported figure is 87 percent lower than the figure from the same period last year. This was the smallest quarterly total for foreign direct investment since records began in 1998.

The data from the Administration of Foreign Exchange reflects the trend of declining profits for foreign companies and reduction of their scale in China. Beijing’s three-year-long Zero-Covid program hampered the Chinese economy and limited access to Chinese markets, geopolitical tensions have been on the rise, and China’s post-Covid economic recover has been lackluster. As such, foreign companies are reevaluating the risks associated with doing business in China.

According to data previously released by the Chinese Ministry of Commerce, the actual use of foreign investment (FDI) in the country from January to June of this year fell by 2.7 percent year-over-year, the first decline in three years.

Source: Lianhe Zaobao, August 8, 2023
https://www.zaobao.com.sg/realtime/china/story20230808-1421584