China Week in Review
Week of Sept. 3, 2018
China and the world:
- America affirms that the espionage threat posed by the People’s Republic of China (PRC) is “existential” and “long-term.”
- The PRC’s efforts to isolate Taiwan meet U.S. pushback.
- North Korea celebrates its 70th anniversary sans ICBMs, and Kim shows “unwavering faith” in Trump.
Sept. 4:
- State media announces that Chinese Communist Party (CCP) Politburo Standing Committee member Li Zhanshu would be attending the 70th-anniversary parade to mark the founding of the Democratic Republic of Korea as Xi Jinping’s special envoy.
- PRC delegates spark controversy at the Pacific Islands Forum in Nauru over diplomatic visas (Nauru recognizes Taiwan, not the PRC) and rude behavior (an envoy demanded to speak to the forum out of turn).
- In a podcast interview with CBS, National Counterintelligence and Security Center William Evanina noted that the PRC is devoting “ungodly resources” and increasingly using “more aggressive” and “more diversified” non-traditional methods to carry out espionage against the U.S. He also said that the PRC is America’s number one threat.
Sept. 5:
- A bipartisan group of U.S. Senators introduced the Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act to defend the ROC’s diplomatic alliances. The legislation would authorize the U.S. State Department to downgrade diplomatic relations with countries that no longer recognize Taiwan, and alter or suspend U.S. assistance. (See entry below for more.)
- Kim Jong Un says he wants to completely denuclearize North Korea during President Donald Trump’s first term, according to South Korea national security advisor Chung Eui-yong after a meeting with Kim. Kim will also meet South Korean leader Moon Jae-in from Sept. 18-20 to discuss “practical measures” towards denuclearization.
Sept. 6:
- Trump tweets that Kim had proclaimed “unwavering faith in President Trump.” He added: “Thank you to Chairman Kim. We will get it done together!”
Sept. 7:
- The U.S. State Department recalls diplomats in El Salvador, Panama, Dominican Republic over their breaking off diplomatic ties with Taiwan in favor of the PRC.
Sept. 8:
- Taiwan’s Ministry of Foreign Affairs spokesperson Andrew Lee says that they are in “close communications with the US government on issues related to Taiwan’s international space.”
Sept. 9:
- North Korea does not display ICBMs at its70th anniversary parade, a break from usual practice in recent years. Featured in the parade are floats that promote economic development and modernity; one huge float was decorated with solar panels, a modern train, power plants, and a slogan exhorting effort to build the economy.
In a tweet, President Trump noted that the lack of missiles is a “big and very positive statement from North Korea,” and thanked Kim Jong Un.
Sino-U.S. trade war:
- Trump announces plans to impose additional tariffs on China. Meanwhile, U.S. tech companies pressure the White House on the tariff issue.
- The PRC continues to downplay the impact of the trade war.
- The Liu Qiangdong arrest case and Jack Ma’s reported retirement plans (see “Economy”) suggest that contrary to official rhetoric, not all is well in the Chinese business environment and economy.
Sept. 4:
- The PRC pledges $60 billion in aid and interest-free loans to Africa at a major summit with African leaders in Beijing. The massive financial package to Africa sparks intense anger and debate in Chinese society and negative sentiment in some African nations.
Sept. 5
- The U.S. Commerce Department said that America’s trade deficit with China increased to a record $36.8 billion.
Sept. 7:
- President Trump told reporters aboard Air Force One that he is preparing to imposed an additional $267 billion worth of tariffs on Chinese goods on short notice. In total, the U.S. could levy $517 billion of tariffs, more than the $505 billion trade deficit the U.S. had with China in 2017.
- Dell, Cisco, Intel, and other U.S. tech companies complained to the U.S. Trade Representative that the U.S. tariffs would impede the pace of 5G adoption in America. Meanwhile, Apple said that the tariffs would lead to “higher U.S. consumer prices, lower overall U.S. economic growth, and other unintended economic consequences.”
- Zhou Xiaochuan, the former People’s Bank of China president, told CNBC that the impact of the trade war on the Chinese economy is “not significant.”
Sept. 8:
- Trump tweets that Apple’s problem with tariffs can be fixed if it makes “products in the United States instead of China.”
Politics:
- Xi Jinping makes a record number of appearances on the front page of state newspapers.
- The Political and Legal Affairs Commission (PLAC) calls for “stability of public opinion.”
Sept. 2:
- The characters “Xi Jinping” are printed a record 45 times on the front page of the People’s Daily, and 103 times in the entire newspaper.
Sept. 4:
- The PLAC holds its inaugural new media work conference, and announces the need to “groom PLAC celebrity Big Vs to take the leading role in shaping public discourse after a major incident breaks out.”
Sept. 7:
- Per an internal notice by the PRC military, all local Party committees are required to report on the P2P lending platform activities of their military staff. The notice stated that there is a need to prevent “extreme and suicidal” behavior from those who suffered investment losses.
Economy:
- Chinese stocks tumble as two Chinese tech giant bosses make news headlines.
- China’s foreign exchange reserves continue to fall.
Sept. 4:
- Liu Qiangdong, boss of JD.com, returns to Beijing after being arrested on rape charges and held in a county holding cell in Minneapolis, Minnesota. Last week, he was accused of sexually assaulting an American college student. JD.com stocks fell by nearly 16 percent ($7 billion in value) on Sept. 4 and Sept. 5.
Sept. 7:
- According to official data, China’s reserves stood at $3.109716 trillion in August, down $8.23 billion from the previous month.
Sept. 8:
- Several Western media report that Alibaba founder Jack Ma plans to announce a transition away from his role of Alibaba Group executive chairman this coming week. Ma plans to stay on in the company’s board and will focus on education post-retirement. Alibaba stocks fell 2.32 percent after news of Ma’s retirement broke.
Society:
- The CCP continues to suppress churches.
- A P2P victim commits suicide in a high-profile case.
Sept. 3:
- Zheng Weiwen, the deputy director of Jiangxi’s People’s Congress Standing Committee, was killed in an auto accident (his tailgating a truck resulted in a fire hazard). Mainland media censored the incident while Chinese netizens cheered Zheng’s death, which they saw as “retribution” for government policies in Jiangxi. Recently, the Jiangxi government introduced so-called “burial reform” where they dug up coffins and exhumed corpses in a bid to grab land for redevelopment. Zheng Weiwen was formerly the deputy governor and public security bureau chief of Jiangxi Province.
Sept. 5:
- CCP security officials in Henan Province continue to suppress local Christians through violence, burning crosses, and confiscating church property, Bibles, and valuables.
Sept. 7:
- Wang Qian, a 31-year-old single mother and victim of P2P failure in China, hung herself in a scenic area at Shenli Gorge, Zhejiang Province. In a suicide note, Wang wrote that she had invested over 260,000 yuan in a P2P platform, and was suppressed by the police when she protested after losing her investment when the platform collapsed. She also wrote: “Because the education I received as a child taught me to ‘love the country and love the Party,’ I have an extremely high sense of collective honor. The ‘Three Outlooks,’ however, are dead, and I no longer have to strength to resist the authorities anymore. The common people are too weak and really too tired, and they can no longer see hope.” (Note: The “Three Outlooks” are part of education propaganda to heighten “Party nature” when Hu Jintao was in office.)
