Skip to content

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

Read More ...

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

Read More ...

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

Read More ...

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

Read More ...

CNA: New Development Bank Aims to Challenge Dollar Now Needs Dollar to Rescue

Primary Taiwanese news agency Central News Agency (CNA) recently reported that the New Development Bank jointly established by China and the BRICS is supposed to reshape international finance and reduce developing countries’ dependence on the U.S. dollar. However, after Russia invaded Ukraine, the bank may now become a “zombie bank.” Chinese President Xi Jinping and the leaders of Brazil, Russia, India and South Africa established the New Development Bank (NDB) eight years ago, headquartered in Shanghai. According to interviews with bankers and others familiar with the matter, NDB has now all but stopped making new loans and is having trouble raising dollar funds to pay its debts. Shortly after Russia’s foray into Ukraine last February, the New Development Bank froze all new loans to Russia to reassure investors. However, Russia owns nearly 20 percent of NDB, and Wall Street was quick to turn wary of it. Since then, NDB has had to take on increasingly high debts to service old debts and meet its own liquidity needs. After the establishment of NDB, members found it difficult to rely solely on China’s banks and capital markets. The bank began borrowing billions of dollars from Wall Street as well as Chinese state-owned banks. About two-thirds of its borrowing is in dollars. Given its own slowing economic growth, China has so far been reluctant to commit more money to boost the NDB’s coffers. To complicate matters further, according to the bank’s charter, the next country likely to be the NDB’s rotating president is Russia.

Source: CNA, June 17, 2023
https://www.cna.com.tw/news/aopl/202306170070.aspx

Briefings | | |   Geo-Strategic Trend

After 27 Years, Carrefour Closed Its First Store in Shenzhen

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that the first Carrefour store in Shenzhen and the second in China ceased operations on June 10. This old store located in the Nantou area of Nanshan has been with the Shenzhen people for 27 years. Just last month (May), Carrefour’s first member store in China, the Shanghai Chengshan Road Store, also suddenly announced it was closing its business. China’s hypermarket crisis has intensified, and Carrefour has been closing its stores nationwide on a large scale. In the first quarter, 33 stores were closed, including the first member store in China. This is just one of the many stores that Carrefour has closed recently. At its peak, Carrefour had a total of 321 stores in China, with sales of RMB 49.8 billion (around US$6.99 billion). Its number of stores, each single store’s performance, its revenue, and other factors., once surpassed its top rival Wal-Mart. As of the end of March, Carrefour China had 114 stores left. Carrefour opened its first foreign-funded supermarket chain in China and became the originator of hypermarkets. In September 2019, the Chinese company Suning spent RMB 4.8 billion (around US$674 million) equivalent to Euros to acquire 80 percent of Carrefour China’s equity, and Suning should have completed the acquisition of all remaining equity by the end of 2022. The transformation and upgrading of Carrefour China may not be worth looking forward to.

Japanese Supermarket AEON also closed its Beijing store, the first one it opened in China back in 2008. US Economist David Huang told the Epoch Times that, based on his visits, retail business in Shanghai, Guangzhou, Shenzhen, and Wuhan cities is running poorly and sales at many supermarket stores are just at the same level as those in the COVID period.

Sources:
1. Sina, June 11, 2023
http://news.sina.com.cn/s/2023-06-11/doc-imywxhhi3381882.shtml
2. Epoch Times, June 19, 2023
http://cn.epochtimes.com/b5/23/6/19/n14019252.htm

Briefings | | |   Economy/Resources

UDN: Alfred University Closed Its Confucius Institute

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that Alfred University, which is in New York, recently announced that it will close its Confucius Institute before the end of June. The university received a grant from the Pentagon to carry out a research project on sensitive hypersonic weapons, which drew concerns from Congress starting on October. The National Defense Authorization Act (NDAA) of the United States for the fiscal year 2021 prohibits the Department of Defense from providing funds to higher education institutions that have Confucius Institutes. Mike Gallagher, chairman of the House Select Committee on China, pointed out that, due to this ban, as of June last year, more than 100 American colleges and universities had closed their Confucius Institutes. Gallagher pointed out that unless Alfred University closes its Confucius Institute or applies for a government exemption, the subsidized research program will become illegal. The Confucius Institute is just one of many tools in the Chinese Communist Party’s toolbox, and Beijing may also use research partnerships, talent programs, and other initiatives to acquire sensitive technology that will advance the People’s Liberation Army. According to the statistics of the National Association of Scholars, under the joint control of the executive and legislative branches of the United States. In recent years, as of March 22 this year, a total of 108 Confucius Institutes in the United States had been closed or wee being closed, and currently only 13 remain.

Source: UDN, June 17, 2023
https://udn.com/news/story/6813/7241414

Briefings | | |   US-China Relations

Reduction of China’s Buying Is Likely to Cause Price Drop in the World’s Grain Market

Nikkei Chinese reported that, according to the U.S. Department of Agriculture (USDA), China’s effort to increase its domestic soybean and corn production will drive down the global market price of grain.  China has cancelled orders of a cumulative 1.1 million tons of U.S. corn that were scheduled to be imported from late April to mid-May, or 7.4 percent of the U.S. annual exports to China.

China’s reduction of purchases and the expected U.S. harvest took the futures price of corn  on the Chicago Mercantile Exchange down to around $5 per bushel in mid-May. This was the lowest point since October 2021 and 30 percent down from the peak price in the spring of 2022.

Soybean’s price also fell similarly as China also canceled deals.

Among agricultural products, China can roughly stay self-reliant on rice and wheat, but it has to import other products. Bejing is the world’s largest importer of soybeans and corn. It imports 59 percent of the global import volume and 14 percent of corn.

Source: Nikkei Chinese, June 12, 2023
https://zh.cn.nikkei.com/politicsaeconomy/commodity/52591-2023-06-12-05-01-11.html

Briefings | | |   Economy/Resources

Cross-Region Fiscal Transfer Puts Poor Regions In More Debt

An article by a Chinese author was circulating on the Internet. The article pointed out that. although China implemented a cross-region fiscal transfer mechanism, the better developed regions provide a large amount of financial aid to the underdeveloped regions to help them develop their economy. This system does not make the poor region prosperous but rather, it puts them in more debt.

The article used Qinghai Province as an example. Qinghai received a “fiscal transfer” (aid) of 147 billion yuan (US$ 21 billion) in 2022, 7.6 times what it received in 2010. However, its disposable income per capita was 27,000 yuan in 2022, only 3.1 times the amount in 2010. This indicates that the “transferred” money didn’t directly get into people’s wallets. The reason was because the receiving regions spent the money on large projects instead, which may not directly lead to improving people’s livelihoods or may cause unnecessary waste. In the meantime, the receiving regions also borrowed additional money to finance those projects (the transferred money was not enough). As a result, the more the “transfer” money comes, the more the receiving region is in debt.

Source: China Digital Times, May 16, 2023
https://chinadigitaltimes.net/chinese/696035.html?utm_source=dlvr.it&utm_medium=twitter

Briefings | | |   Economy/Resources Government/Politics

China’s Police Shared Experiences on Conducting Operations Overseas

Recently overseas media reported that Chinese police from Qingtian County, Zhejiang Province published their “successful” experiences in conducting operations in other countries. The article was published in the second issue of the Zhejiang Police College Publication in 2019.

There are 330,000 Chinese from Qingtian County who live in 128 foreign countries and regions. These diasporas have established 314 diasporas associations.

The police experience article talked about their work of combining “one concept, two overall plannings, three collaborations, four major mechanisms, and five areas of governance.”

“Two overall plannings” included the planning for domestic and overseas,words, two battlefields. Domestic planning – visit the relatives (inside China) of the overseas “stability maintenance” targets (usually the political activists/dissidents whom the Chinese Communist Party (CCP) views as a threat to its rule in China). Overseas planning – send working groups abroad to meet with the Chinese diasporas.

“Three collaborations”: One is to collaborate with Chinese embassies and consulates and  them to reach out to local Chinese diaspora groups. Two is to collaborate with the leaders of diaspora associations – Qingtian police has established regular collaborative mechanism with 230 Chinese diaspora associations and maintained regular contacts with 150 influential diaspora leaders. Three is to collaborate with the people who were the former police officers or relatives of former police officers.

The article also talked about strengthening the party’s leadership, including expanding the party organization’s reach to the overseas Chinese diaspora associations and establishing a party structure inside the Chinese diaspora associations via the party organs at China’s embassies and consulates.

The Qingtian police created a “Police-Diaspora Station” service center. Its online system started operation in 2018. The Qingtian police led the efforts, with Chinese diaspora associations participating in and providing offices. The service center has organized video conferences, information sharing sessions, regular meetings, and timely service. It created 15 sub-centers in 11 countries including Spain, Italy, and France.

The “four major mechanisms” includes establishing a “grid-management” mechanism, with larger diaspora associations as the base, and diaspora leaders, diasporas who are party members, and overseas police liaisons as the expanding points, to manage the diaspora communities. It has “successfully” handled 15 cases of a few diasporas’ protests against the CCP or its leader’s visit.

The “five areas of governance” listed anti-Falun Gong as its first area. It quoted that Qingtian police guided the “World Chinese Diaspora Anti-Cult Association in Spain” to protest the Shen Yun performance held in Barcelona in 2014.

Source: Epoch Times, May 25, 2023
http://cn.epochtimes.com/gb/23/5/25/n14003947.htm

Briefings | | |   @CS Geo-Strategic Trend Government/Politics US-China Relations

China’s New Cognitive War against Taiwan

Epoch Times reported that Beijing has adopted new cognitive warfare tactics against Taiwan. In the past it used to directly or indirectly buy Taiwan’s major media including newspaper, television, and radios to spread its message. Now, however, it has switched to using Internet media, such as TikTok, YouTube, and influential webcast hosts.

One tactic is to release fake news via its controlled Taiwanese media, causing other Taiwanese media who want to keep up on news reporting but do not verify the validity of news to follow up on the fake topic. China has established a “Public Opinion Control Center” inside its military and has a 2 million strong “Internet army” (people who monitor the Internet posting and post propaganda or fake news on the Internet). This can stir up issues or debates in Taiwan media that can lead to conflicts and divisions among the Taiwanese people.

Beijing also provides scripts to people who have their own (news or other topic) channels on the Internet. Those people will replace those words commonly used in the mainland but which are uncommon in Taiwan with those commonly used in Taiwan, to make it appear to have been “created in Taiwan.”

For webcasts, China’s “Public Opinion Control Center” can arrange a mass Chinese “Internet Army” (say 100,000 people) to listen to a Taiwanese webcaster and each to pay the webcaster a small amount of money to influence the webasterc. Collectively however, the webcaster receives a large amount of money and it is hard to trace the money source.

Source: Epoch Times, June 7, 2023
https://www.epochtimes.com/gb/23/6/7/n14011845.htm

Reports | | |   @CS Defense/Military Geo-Strategic Trend