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China’s Reaction to Trump’s Election Win

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Xinhua Commentary Series: Spotlight on the U.S. Presidential Election

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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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Third Wave of Mass COVID Infection in China

COVID-19 infection rates are on the rise again in China. According to the Beijing CDC, the number of COVID patients has surged by more than 70% in recent days, with outbreaks occurring in many places throughout China. The main strain of the COVID virus currently prevalent within China is EG.5, according to an August 19 announcement by China’s Center for Disease Control and Prevention (CDC).

A large number of young children in various places are showing symptoms such as high fever, “white lungs” (patient’s lung appear as white in X-ray or CT picture due to infection), and difficulty in breathing. Many hospitals in China are calling the virus “mycoplasma pneumonia.” Some people have speculated that the authorities may be purposely avoiding the term “COVID,” opting to call the infection by a different name.

Many Chinese people are now being infected with the COVID virus for the third time, known as the “third positive” on Chinese social media. The “first positive” wave happened during late 2022 and early 2023, and the “second positive” wave happened in Spring of 2023.

Source: NTDTV, August 31, 2023
http://cn.ntdtv.com/gb/2023/08/31/a103776688.html

Briefings | | |   Social Stability

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 | | |   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 | | |   @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