Chinascope – Page 370

Global Times: India Permanently Banned 59 Chinese Apps

Global Times recently reported, based on Reuters and several Indian media reports, that the Ministry of Electronics and Information Technology in India officially announced the permanent ban of 59 Chinese apps, including massively popular apps like TikTok, Baidu, WeChat and UC Browser. The Indian authorities expressed dissatisfaction after they received the compliance plans from Chinese app vendors, especially in the areas of data collection and consumer privacy protection. This dissatisfaction is what triggered the permanent ban. Since June of last year, the Indian government has taken “unprecedented” actions on 267 Chinese apps over several rounds, citing national security concerns. The Chinese Ministry of Foreign Affairs issued a statement on the latest development expressing “serious concern.” China also accused India of violating market economy principles and WTO rules. The Chinese Embassy in India also showed a strong position against India’s action taken in the name of national security. After the news broke, some Chinese vendors like TikTok announced their Indian lay-off plans.

Source: Global Times, January 26, 2021
https://world.huanqiu.com/article/41faKzHUmX6

Briefings | | February 2, 2021 | Geo-Strategic Trend Information/Technology

IBM China Research Laboratory Closed

Well-known Chinese news site Sina (NASDQ: SINA) recently reported that IBM quietly closed its China Research Laboratory (CRL). The IBM CRL was the top one of the 12 IBM global research institutes and was the most influential. CRL was founded in 1995 and hatched numerous famous products like the leading artificial intelligence system Watson. This recent closure sent a shockwave throughout the Chinese technology communities, bringing an end to an era. The CRL was IBM’s first research center in developing countries, headquartered in Beijing. It created a branch in Shanghai in 2008. In the past quarter century, thousands of researchers have worked at IBM CRL. Most of them had doctors or master’s degrees from China’s or the world’s top universities. The CRL focused on research areas of networking, distributed computing and systems management, as well as next generation services. IBM CRL is just the latest exit of the large international high-tech firms. In 2015, Yahoo closed its Beijing Research Center. Amazon closed its centers in 2019, and Oracle closed its Chinese Research Center in the same year. The IBM CRL closure further confirmed the de-linking between China and the United States.

Source: Sina, January 24, 2021
https://finance.sina.com.cn/chanjing/gsnews/2021-01-24/doc-ikftpnny1265832.shtml

Briefings | | February 2, 2021 | Information/Technology US-China Relations

Report: U.S. Leads in Global AI Race while China Is Closing the Gap

On January 25, The Information Technology and Innovation Foundation (ITIF), a Washington DC based think tank on technological innovation and public policy, issued a report titled, “Who Is Winning the AI Race: China, the EU, or the United States? — 2021 Update”

“This report examines the progress that China, the European Union, and the United States have made in AI relative to each other in recent years and provides an update on a report released on their comparative rankings from 2019. It found that the United States still holds a substantial overall lead, but that China has continued to reduce the gap in some important areas. In addition, the EU continues to fall behind.”

“This report measures the progress each region has since made in AI by using new data to update 15 of the metrics and it adds 1 new metric. It finds that the United States still leads, with 44.6 points, followed by China with 32.0 and the European Union with 23.3.”

The U.S. “has an unmatched number of AI start-ups, which received $8 billion more in venture capital and private equity funding than did China in 2019.” “In 2019, U.S. software and computer services firms still spent three times more on R&D than did China and the European Union combined. Furthermore, average U.S. research quality is still higher than that of China and the European Union. Lastly, despite China’s growing attempts to reduce its reliance on U.S. semiconductors, the United States is still the world leader in designing chips for AI systems.”

“China’s AI capabilities relative to the European Union and the United States have improved in several ways. First, China has surpassed the EU as the world leader in AI publication. Second, the quality of its AI research has generally trended upward year to year. Third, its software and computer services firms have increased their R&D spending. Fourth, China now has nearly twice as many supercomputers ranked in the top 500 for performance as the United States. The United States led in this indicator as recently as 2017. Finally, China likely continues to lead in the amount of data generated. Overall, however, China has not significantly reduced the gap in AI between itself and the United States, but its trend of consistent progress could eventually evaporate the U.S. lead.”

“The European Union has fallen further behind the United States in terms of the number of funding deals, the acquisition of AI firms, and AI firms that have raised at least $1 million in funding since our last report. In addition, EU software and computer services firms have failed to close the gap between themselves and U.S. firms in R&D spending. The United Kingdom’s departure from the bloc will also diminish EU AI capabilities, both in absolute terms and on a per-capita basis.”

Source: Information Technology and Innovation Foundation.
https://itif.org/publications/2021/01/25/who-winning-ai-race-china-eu-or-united-states-2021-update

Briefings | | February 1, 2021 | Information/Technology

China Box Office Revenue Fell Sharply in 2020

China produced a number of patriotic movies last year, including the movies that commemorated the 70th anniversary of the Korean War. Box office revenue, however, still fell sharply due to COVID 19. Revenue was only at 30 percent of what it was in 2019. Among the 28 listed film making companies, only 6 of them had revenue and profit growth compared to 2019.

According to Securities Times, 294 movies were released in China in 2020, with a total box office revenue of 20.417 billion yuan (US$3.18 billion), of which box office revenue for domestically produced movies was 17.093 billion yuan (US$2.66 billion), accounting for about 83 percent of the total revenue. Meanwhile only five companies had stock price increases in 2020.

Even though China’s movie industry was hit hard by COVID 19 in 2020, it still surpassed North America and was the world’s largest movie market.

Source: Central News Agency. January 28, 2021
https://www.cna.com.tw/news/acn/202101280102.aspx

Briefings | | February 1, 2021 | Economy/Resources

Ministry of National Defense: “Containing China Is a Mission Impossible”

Starting one week after Biden took office, he and several of his officials repeatedly expressed support for allies in the Indo-Pacific region. This has been interpreted as the Biden administration warning against China’s aggressive stance. On January 28, Wu Qian, director of the Information Bureau of the Ministry of National Defense of China, said during his regular press conference, that, if the United States wants to contain China, it is a “Mission Impossible.”

Wu said that the China and U.S. relationship encountered extreme hardships during the Trump administration. The militaries of both countries faced many risks and challenges. Facts have proven that it is an impossible task for the U.S. to contain China. In the end, the U.S. will only shoot itself in the foot. To Contain China is a Mission Impossible!

On the first weekend after taking office, Biden spoke with the leaders of many European countries, expressing the U.S. interest in working together on China. Many of his senior officials also reaffirmed their support for East Asian countries. In telephone calls with the foreign ministers of France, Germany, the United Kingdom, the Philippines, and Italy, the newly appointed Secretary of State Antony Blinken pledged to stand with them in the face of China. State Council Spokesperson Ned Price also criticized the Chinese military’s activities near Taiwan and said that, “the U.S. commitment to Taiwan is rock-solid and contributes to the maintenance of peace and stability across the Taiwan Strait and within the region.”

Sources:
1. Sina, January 28, 2021
https://news.sina.com.cn/c/2021-01-28/doc-ikftpnny2530128.shtml
2. Radio Free Asia, January 28, 2021
https://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/cm-01282021101704.html

Briefings | | January 31, 2021 | US-China Relations

Holding the Largest Debt in Chinese History, HNA Group Filed for Bankruptcy

On January 22, holding $700 billion (US$109 billion) in debt, the largest in Chinese history, the HNA Group filed for bankruptcy. The High People’s Court of Hainan Province is currently conducting a legal review of the HNA Group.

The HNA Group was formed in 1993 in the airline business. It gradually diversified into real estate, banking, and the Hotel industry. Between 2015 and 2017 alone, it had 40 international mergers and acquisitions having a total value of US$40 billion. At the end of 2017, the HNA Group was in a debt crisis due to excessive expansion. In July 2018, Wang Jian, then chairman of HNA Group, died in an accident in France. Chen Feng, who was a retired HNA board member at the time, took over HNA. In 2018, HNA reported its first loss of 4.9 billion yuan (US$0.76 billion). In the first half of 2019, the HNA Group lost 3.52 billion yuan (US$0.55 billion) with 706.726 billion yuan (US$110 billion) in outstanding debt. In 2019, HNA hired a risk mitigation group that tried to get it out of the liquidity crisis. Since then it has been selling the non-core businesses. On February 29, 2020, Hainan Provincial People’s Government sent a task force team to conduct a financial review and analysis of the HNA Group and its 2,000 subsidiaries. In the past year, HNA has also gone through a number of personnel changes. On January 22, after sorting through the company’s capital, management and debt structure, the task force team announced the bankruptcy decision and stated that HNA will have to go through a restructuring process.

Sources:
1. China.com, January 22, 2021
http://finance.china.com.cn/industry/company/20210122/5482913.shtml
2. Central News Agency, January 29, 2021
https://www.cna.com.tw/news/acn/202101290258.aspx
3. Radio Free Asia, January 29, 2021
https://www.rfa.org/mandarin/Xinwen/wul0129c-01292021043521.html

Briefings | | January 31, 2021 | Economy/Resources

Military: The PLA Equipped Soldiers in Tibet with Self-Destruct Helmets

The People’s Liberation Army (PLA) equipped its soldiers stationed in Tibet with new helmets that have a self-destruct button. The button would trigger an embedded bomb to go off, killing the soldier.

The state-run media China Observer reported on Dec. 27, 2020, “At a battalion or brigade level command center, a commander uses a navigation system to monitor the soldier who is far away. The commander can activate the self-destruct function on the soldier’s helmet if he is unable to contact him.”

The report stated that soldiers can also press the button themselves. “If a soldier is seriously wounded and doesn’t want to be captured, he can activate the self-destruct function himself. This can maintain his dignity, as well as prevent the enemy from obtaining this system.”

The new helmet is part of an “individual soldier digital combat system” given to troops in the Tibet theater command. They face Indian troops at the border, where there were recent skirmishes over disputed territory in the Ladakh region.

The system includes an antenna and bomb, night-vision multifunctional glasses, and a digital control terminal that can be worn on the arm.

After being equipped with the system, soldiers at the frontline can communicate with the battalion commander at the command center via radio. Meanwhile, the commander can see the frontline via video footage captured by the soldier’s camera-equipped jacket. The footage can help the commander to make decisions such as ordering the soldier to fire artillery targeting Indian soldiers.

Soldiers in special forces units, the squad infantry, as well as the artillery, aviation, and armor divisions will be equipped with this system.

Military: China Tested the Biden Administration’s Position on Taiwan

On January 23, China sent 13 warplanes into Taiwan’s southwestern air defense zone. China’s planes included eight nuclear-capable bombers, four fighter jets and an anti-submarine patrol aircraft. In response, Taiwan’s air force warned away the Chinese aircraft and deployed missiles to monitor them.

After the incident and on the same day, the U.S. Indo-Pacific Command dispatched an aircraft carrier group led by the USS Theodore Roosevelt into the South China Sea to promote “freedom of the seas” in the waterway.

Also on the same day, the U.S. State Department released a statement confirming its support for Taiwan. The statement asserted,

“The United States notes with concern the pattern of ongoing PRC attempts to intimidate its neighbors, including Taiwan. We urge Beijing to cease its military, diplomatic and economic pressure against Taiwan and instead engage in meaningful dialogue with Taiwan’s democratically elected representatives.

We will stand with friends and allies to advance our shared prosperity, security, and values in the Indo-Pacific region — and that includes deepening our ties with democratic Taiwan. The United States will continue to support a peaceful resolution of cross-strait issues, consistent with the wishes and best interests of the people on Taiwan. The United States maintains its longstanding commitments as outlined in the Three Communiqués, the Taiwan Relations Act, and the Six Assurances. We will continue to assist Taiwan in maintaining a sufficient self-defense capability. Our commitment to Taiwan is rock-solid and contributes to the maintenance of peace and stability across the Taiwan Strait and within the region.”

However, on the next day, Beijing sent another 15 aircraft to break into Taiwan’s airspace.

The U.S. Indo-Pacific Strategy Framework that the Trump administration declassified stated the following:

“Objective: Deter China from using military force against the United States and U.S. allies or partners, and develop the capabilities and concepts to defeat Chinese actions across the spectrum of conflict.”

One action toward this objective is: “Devise and implement a defense strategy capable of, but not limited to: (1) denying China sustained air and sea dominance inside the “first island chain” in a conflict; (2) defending the first-island-chain nations, including Taiwan; and (3) dominating all domains outside the first island-chain.”

Sources:
1. New York Post, January 23, 2021.
https://nypost.com/2021/01/23/china-sends-warplanes-into-taiwans-airspace-report/
2. State Department, January 23, 2021.
https://www.state.gov/prc-military-pressure-against-taiwan-threatens-regional-peace-and-stability/
3. New York Post, January 25, 2021.
https://nypost.com/2021/01/25/china-sends-warplanes-into-taiwan-airspace-for-2nd-straight-day/

Hot Topics | | January 28, 2021 | Defense/Military Geo-Strategic Trend US-China Relations

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