Red guards, spy networks, revisionist propaganda, chips and a lot of Xinomics worsening the economic crisis
Monthly highlights :
— 🥷 ☭ China should encourage its citizens to join counter-espionage work, including creating channels for individuals to report suspicious activity as well as commending and rewarding them, the state security ministry said on Tuesday.
A system that makes it "normal" for the masses to participate in counter-espionage must be established, wrote the Ministry of State Security, the main agency overlooking foreign intelligence and anti-spying, in its first post on its WeChat account, which went live on Monday. https://www.reuters.com/world/china/china-wants-mobilise-entire-nation-counter-espionage-2023-08-01/
— 🥷 ☭ China’s new Patriotic Education Law reveals Xi’s deepest fears for the future
Politics & Current Affairs
China is attempting to codify patriotic education practices into law, with extensive reach. When passed, the implications will extend beyond its borders. https://thechinaproject.com/2023/08/01/chinas-new-patriotic-education-law-reveals-xis-deepest-fears-for-the-future/
— 🥷 ☭ China deploys swarm of satellites to monitor military exercises in Australia https://www.abc.net.au/news/2023-08-18/china-deploys-swarm-of-satellites-to-monitor-military-australia/102742594
— 🥷 ☭ Taiwan on Tuesday withdrew from the Central American Parliament (PARLACEN) after the body voted to expel the nation in favor of China.
The six-nation parliament met on Monday in the Nicaraguan capital Managua, where local legislators proposed adding China and expelling Taiwan, which has been a permanent observer since 1999.
In a statement, PARLACEN cited the UN's 1971 expulsion of Taiwan in favor of China, saying this deemed Taiwan to be a "province of mainland China, which disqualifies it from participating as an independent country." https://www.taipeitimes.com/News/front/archives/2023/08/22/2003805126
— 🥷 ☭ Pacific islands warn US over Chinese threat and urge Biden to increase aid
GOP-led House committee convenes on Guam as officials say Beijing working to ‘fill perceived voids in America’s assistance’ https://www.theguardian.com/us-news/2023/aug/25/pacific-islands-guam-china-aid-biden
— 🥷 ☭ A China-backed advanced persistent threat (APT) group dubbed Flax Typhoon has installed a web of persistent, long-term infections inside dozens of Taiwanese organizations, likely to carry out an extensive cyber espionage campaign — and it did it using only minimal amounts of malware. https://www.darkreading.com/threat-intelligence/china-unleashes-flax-typhoon-apt-live-off-land-microsoft-warns
— 🥷 ☭ Japanese schools in China were harassed for disposing of water and discharging it into the sea https://china.kyodonews.net/news/2023/08/5fbc347f3d44.html
— 🥷 ☭ Chinese sextortion scammers are flooding Twitter
Scammers are targeting Chinese-language users, harassing political dissidents and influential figures. https://restofworld.org/2023/chinese-sextortion-scammers-are-flooding-twitter/
— 🥷 ☭ Facebook removed a network of 7,704 accounts, 954 pages, 15 groups and 15 IG accounts originating in China and targeting regions around the world including Taiwan, US, Australia, UK and more. https://twitter.com/BenDoBrown/status/1696629196515053778?s=20
— 🪖 Mainland China airs documentary signalling military preparation for Taiwan attack and willingness to sacrifice
Chasing Dreams programme marks PLA’s 96th anniversary with eight-part series showing readiness to fight ‘at any second’
A stealth fighter jet pilot and a navy frogman among PLA personnel shown pledging to lay their lives on the line for reunification https://www.scmp.com/news/china/military/article/3230014/mainland-china-airs-documentary-signalling-military-preparation-taiwan-attack-and-willingness
— 🪖Chinese military launches drills around Taiwan following US stop by island leader
Taiwan detects 42 warplanes in Chinese military drills
China’s army filmed apparently preparing for conflict in Taiwan strait
Propaganda video shows troops running past anti-landing barricades similar to those that dot Taiwan’s coast https://www.theguardian.com/world/2023/aug/17/china-army-filmed-apparently-preparing-for-conflict-in-taiwan-strait
— 🪖 Taiwan to station 5,000 more troops in Taipei to boost 'decapitation resistance'
Taiwan capital set to add 6th military police battalion in Taipei's south https://www.taiwannews.com.tw/en/news/4964710
— 🪖 China Is Building A Runway On Its Closest Island Outpost To Vietnam
Triton is the westernmost island in the South China Sea’s strategic Paracel archipelago and added militarization of it has big implications. https://www.thedrive.com/the-war-zone/runway-being-built-on-chinas-closest-island-outpost-to-vietnam
— 🪖 The State Department has made a determination approving a possible Foreign Military Sale to the Taipei Economic and Cultural Representative Office in the United States of F-16 Infrared Search and Track (IRST) systems and related equipment for an estimated cost of $500 million. https://www.dsca.mil/press-media/major-arms-sales/taipei-economic-and-cultural-representative-office-united-states-300
— 🪖 China’s new map outrages its neighbors
India led regional protests to the map, which lays claim to disputed territory in the Himalayas, as well as almost all of the strategically important South China Sea. https://www.nbcnews.com/news/world/china-new-map-anger-india-south-china-sea-border-disputes-rcna102921
China doubles down on new map, tells India to keep calm and not to ‘over-interpret’
India lodged a “strong protest” over the new map which showed within China’s borders all of the Indian State of Arunachal Pradesh, Aksai Chin, as well as the entire South China Sea https://www.thehindu.com/news/national/china-doubles-down-on-new-map-tells-india-to-not-over-interpret/article67251703.ece
— 🪖 Chinese Coast Guard water cannon attack on Vietnamese fishing boat leaves 2 injured
Move reflects Beijing’s strategy of ‘rocking the tree to threaten the monkey,’ an observer says. https://vietnam.postsen.com/local/462394/Quang-Ngai-fishing-boat-was-chased-and-attacked-by-foreign-ships.html
— 🪖 US approves first-ever military aid to Taiwan through program typically used for sovereign nations https://edition.cnn.com/2023/08/30/politics/us-taiwan-foreign-military-financing-program/index.html
— 🇷🇺🇺🇦 Putin Agrees to Visit China in First Trip Since Arrest Warrant
President to attend Belt and Road Forum in China in October
Putin hasn’t left Russia since ICC war-crimes warrant in March https://www.bloomberg.com/news/articles/2023-08-29/putin-agrees-to-visit-china-in-first-trip-since-arrest-warrant
— 🇷🇺🇺🇦 Expert group: 67% of foreign components in Russian drones originate in China https://kyivindependent.com/expert-group-67-of-foreign-components-in-russian-drones-originate-in-china/
— 🏦 Bankers Forced to Study Xi’s Thoughts as Party Tightens Grip
Firms holding studying sessions, writing papers on Xi Thought
Concerns grow over Chinese economy as confidence takes a hit https://www.bloomberg.com/news/articles/2023-08-08/bankers-forced-to-study-xi-s-thoughts-as-party-tightens-grip
— 🏦 Investors Visiting China Find Officials Fearful of Upsetting Xi
Investors say harder to make forecasts with restricted access
Some state institutions pushing ‘secret keeping’ mindset https://www.bloomberg.com/news/articles/2023-08-08/xi-speak-and-closed-doors-obscure-china-s-18-trillion-economy
— 🏦 Just days after our colleagues at mainFT reported that China has banned the mention of deflation — “Deflation does not and will not exist in China,” according to a stats bureau spokesperson — JPMorgan points out that headline CPI, PPI and the GDP deflator have all now turned negative in China, and warn that the danger of deflation is going to hang around for the rest of the year: https://www.ft.com/content/150c0c9c-6182-4dd8-b330-be66a11d4226?sharetype=blocked
— 🏦 China’s Economy Isn’t Ailing—It’s ‘Evolving’: IPO Lawyers Told to Watch Their Language
Authorities’ recent guidance has sown confusion over what Chinese companies should say https://www.wsj.com/articles/chinas-economy-isnt-ailingits-evolving-ipo-lawyers-told-to-watch-their-language-4d388b23
— 🏦 China to Shift $139 Billion of ‘Hidden’ Local Debt to Provinces
Program marks step to address threats to financial stability
Allowance has been set for each region: person familiar https://www.bloomberg.com/news/articles/2023-08-11/china-to-shift-139-billion-of-troubled-lgfv-debt-to-provinces
— 🏦 China Market Turmoil Amps Up Pressure for Policymakers to Act
Hang Seng China gauge worst performer globally in August
Overseas funds have sold onshore China stocks for six days https://www.bloomberg.com/news/articles/2023-08-13/china-stocks-set-to-erase-politburo-gains-as-economy-struggles
— 🏦 China will suspend the release of youth unemployment rates, a top government statistician says, after the country reported record numbers of unemployed young citizens in recent months.
"Starting from this August, the release of urban unemployment rates for youth and other age groups across the country will be suspended," National Bureau of Statistics spokesperson Fu Linghui said at a press conference https://twitter.com/AFP/status/1691282616178372608
— 🏦 China's economic woes mount as trust firm misses payments, home prices fall
China’s Housing Slump Is Much Worse Than Official Data Shows
Property values show variance between agents, official data
Uncertainty over data could have implications for policy https://www.reuters.com/world/china/chinas-new-home-prices-fall-first-time-this-year-2023-08-16/?ref=upstract.com
https://www.bloomberg.com/news/articles/2023-08-16/china-s-housing-slump-is-much-worse-than-official-data-shows?sref=SfEXIlDZ
— 🏦 China Asks Some Funds to Avoid Net Equity Sales as Markets Sink
Deepening slowdown, property sector crisis have been a drag
Previous similar guidance did little to shore up stock market https://www.bloomberg.com/news/articles/2023-08-16/china-asks-some-funds-to-avoid-net-equity-sales-as-markets-sink
— 🏦 Evergrande: China property giant files for US bankruptcy protection https://www.bbc.com/news/business-66540785
— 🏦 US commerce secretary rejects Chinese appeal to ease export controls
U.S. Commerce Secretary Gina Raimondo says she rebuffed an appeal by Chinese leaders to reduce U.S. export controls on technology with possible military uses https://abcnews.go.com/International/wireStory/top-chinese-official-tells-us-commerce-secretary-ready-102639711
— 🏦 Billions of dollars are flowing out of Chinese markets in a ‘seismic’ change in capital flows despite a flurry of actions to shore up confidence https://fortune.com/2023/08/28/billions-flow-out-china-markets-despite-beijing-stimulus-foreign-investors/
— 🏦 We have a scoop today on Goldman Sachs, which has used a fund set up with Chinese state money to buy a series of US and UK companies, including one with a cyber security business that provides services to the British government.
The Wall Street bank has struck seven deals using cash from a $2.5bn private equity “partnership fund” it set up in 2017 with the sovereign wealth fund China Investment Corporation, according to multiple people with direct knowledge of the fund. https://www.ft.com/content/a940f22f-a79d-4165-9ca2-f15ec218c3b5
— 🏦 Germany must pull away from China before it’s too late, warns Berlin’s top economic adviser
Europe’s industrial powerhouse faces threats from heightened geopolitical tensions https://www.telegraph.co.uk/business/2023/08/19/germany-dependence-china-must-end-council-economic-experts/
— 🤥 MFA : China has invariably stood in solidarity with fellow developing countries through thick and thin. China has been and will always remain a member of developing countries.
https://twitter.com/MFA_China/status/1695061348827152806
— 🤝 At Camp David, Biden hails ‘new era of partnership’ between U.S., South Korea and Japan
Threats from China and North Korea shadowed the historic trilateral summit https://www.politico.com/news/2023/08/18/at-camp-david-biden-hails-next-era-of-partnership-between-us-south-korea-and-japan-00111901
— 🤝 U.S. President Joe Biden will sign a strategic partnership agreement with Vietnam during a state visit to the Southeast Asian country in mid-September, Politico reported on Friday, citing three people with knowledge of the deal's planning. https://www.reuters.com/world/biden-sign-strategic-partnership-deal-with-vietnam-politico-2023-08-18/
— 🤝 Marcos eyes maritime deal with Vietnam as S. China Sea dispute heats up https://news.abs-cbn.com/news/08/11/23/marcos-eyes-maritime-deal-with-vietnam
— 🤝 UK parliament calls Taiwan ‘independent country’ as Cleverly visits China
‘Taiwan possesses all the qualifications for statehood,’ a parliamentary committee report says. https://www.politico.eu/article/uk-parliament-calls-taiwan-independent-country-report-says-james-cleverly-visit-china/?utm_medium=social&utm_source=Twitter
— 🤝 Chinese President Xi Jinping is planning to skip next week’s Group of 20 summit in New Delhi, according to officials familiar with preparations for the meeting, a snub that’s likely to aggravate an already rocky relationship with India. https://timesofindia.indiatimes.com/world/china/xi-jinping-planning-to-skip-g20-summit-while-china-india-tensions-mount/articleshow/103264680.cms?from=mdr
— 💹 Electric-vehicle batteries and other car parts are the latest products under scrutiny as part of Washington’s effort to stamp out US links to forced labour in Chinese supply chains, according to a document seen by Reuters, agency statistics and sources. https://www.bangkokpost.com/business/general/2632297
— 💹 China suspends imports of Taiwan mangoes due to alleged ‘harmful pest’. Another case of PRC arbitrary import bans. This action is aimed at influencing Taiwan’s election. https://twitter.com/BonnieGlaser/status/1693595960822149500?s=20
— 💹 Xi Skips Speech Defending China Economy at BRICS Business Forum
Chinese president attends leaders’ dinner in Johannesburg
Xi has only made one other international visit this year https://www.bloomberg.com/news/articles/2023-08-22/china-s-xi-skips-scheduled-speech-to-brics-business-forum
— 💹 China suspends all seafood imports from Japan on Fukushima discharge
Arrests made in South Korea as protesters try to enter Japanese Embassy https://asia.nikkei.com/Politics/International-relations/China-suspends-all-seafood-imports-from-Japan-after-Fukushima-discharge
— 💹 China steps up to the plate after attempted coup in Gabon
China called, Wednesday, August 30, “ the parties concerned ” in Gabon to “ guarantee the security ” of President Ali Bongo Ondimba after the military coup that occurred this Wednesday, August 30. https://www.rfi.fr/fr/afrique/20230830-la-chine-monte-au-cr%C3%A9neau-apr%C3%A8s-la-tentative-de-coup-d-%C3%A9tat-au-gabon?utm_medium=social&utm_campaign=x&utm_source=shorty
— 👮 Huawei Pledges Advanced Camera System Under Taliban https://ipvm.com/reports/huawei-afghanistan
— 👮 The Chinese Communist Party is teaching African leaders its authoritarian alternative to democracy at its first overseas training school — the strongest evidence yet that Beijing is exporting its model of governing in its push to challenge the Western-led world order. https://www.axios.com/chinese-communist-party-training-school-africa
— 👮 Chinese censors shut down key LGBTQ+ social media accounts
Tencent's social media platform WeChat permanently closes 6 major accounts. https://www.rfa.org/english/news/china/lgbtq-sites-08242023154244.html
— 👮 Xi made a surprise stop in Urumqi on way back from BRICS, doubling down on Xinjiang policy: Prioritize social stability, anti-terrorism, Sinocize Islam, resolutely teach Uyghurs CN language, redirect locals to seek jobs in mainland, counter negative press https://twitter.com/StuartKLau/status/1695406136021729488
— 🗞️ StarTimes, a Chinese-owned satellite TV company, has rapidly expanded its influence across Africa. However, unlike Chinese state media outlets like CGTN, StarTimes isn’t simply a mouthpiece for Beijing. https://chinaglobalsouth.com/2023/08/08/backgrounder-the-chinese-owned-tv-company-beaming-into-africa/
— 🤖 China's internet giants order $5bn of Nvidia chips to power AI ambitions
Baidu, ByteDance, Tencent, Alibaba rush to buy amid concern of U.S. clampdown https://asia.nikkei.com/Business/Tech/Semiconductors/China-s-internet-giants-order-5bn-of-Nvidia-chips-to-power-AI-ambitions
— 🤖 Huawei Building Secret Network for Chips, Trade Group Warns
Tech giant is reportedly getting $30 billion in state support
Biden administration monitoring and ready to take action https://www.bloomberg.com/news/articles/2023-08-23/huawei-building-secret-chip-plants-in-china-to-bypass-us-sanctions-group-warns
— 🤖 China quietly recruits overseas chip talent as US tightens curbs https://www.reuters.com/technology/china-quietly-recruits-overseas-chip-talent-us-tightens-curbs-2023-08-24/
Hong Kong highlights :
— 🤥 Foreign forces helped inspire Hong Kong’s mass protests starting 20 years ago, says security chief
In a video uploaded to Facebook on Wednesday, Chris Tang said a 500,000-strong protest against Article 23 in July 2003 was a test run of Hong Kong opposition “cultivated” by foreign forces to endanger national security. https://hongkongfp.com/2023/08/03/foreign-forces-helped-inspire-hong-kongs-mass-protests-starting-20-years-ago-says-security-chief
— 👮 Hong Kong police plan to arrest Danish artist, hold trial in mainland China: report
Police decline to confirm if Tiananmen massacre sculptor Jens Galschiøt is wanted by national security department. https://www.rfa.org/english/news/china/hongkong-tiananmen-sculptor-08042023140818.html
— 👮 ‘Gangster tactic’: the true aim behind Hong Kong’s pursuit of overseas dissidents
Police targeting pro-democracy activists abroad have questioned their family and put out bounties, but there is a broader, more chilling, objective behind the operation https://www.theguardian.com/world/2023/aug/17/gangster-tactic-the-true-aim-behind-hong-kongs-pursuit-of-overseas-dissidents
— 👮 Artistic creations often a ‘pretext’ to endanger nat. security, Hong Kong official tells Tiananmen crackdown statue sculptor
“This means that all advocates of peace and artists become suspects of criminal deeds,” Danish Pillar of Shame sculptor wrote in response. “[T]his is an extremely scary logic which can crush all types of artistic [or] creative creations.” https://hongkongfp.com/2023/08/22/artistic-creations-often-a-pretext-to-endanger-nat-security-hong-kong-official-tells-tiananmen-crackdown-statue-sculptor/
— 👮 Mainland hands over last of the 'Hong Kong 12' https://news.rthk.hk/rthk/en/component/k2/1714599-20230822.htm
Go further with these interesting pieces :
— Code Pink : A Global Web of Chinese Propaganda Leads to a U.S. Tech Mogul
The Times unraveled a financial network that stretches from Chicago to Shanghai and uses American nonprofits to push Chinese talking points worldwide. https://www.nytimes.com/2023/08/05/world/europe/neville-roy-singham-china-propaganda.html
— China found influence in Europe’s west — not east
While the EU now looks to de-risk from China, it’s important to remember that the greatest risk to unity rests in Western Europe. https://www.politico.eu/article/china-found-influence-in-europes-west-not-east/?s=09
—The factories on the front line of China’s economic slowdown https://www.ft.com/content/e9f5cdd9-7fb2-4425-bd32-30739e5819cb
— China found influence in Europe’s west — not east
While the EU now looks to de-risk from China, it’s important to remember that the greatest risk to unity rests in Western Europe. https://www.politico.eu/article/china-found-influence-in-europes-west-not-east/?s=09
—Why Taiwan is looking beyond Musk’s Starlink – to Britain
The island state needs a communication system robust enough to withstand a Chinese invasion https://www.telegraph.co.uk/business/2023/08/05/china-taiwan-satellite-defence-elon-musk-starlink-oneweb/
—A Global Web of Chinese Propaganda Leads to a U.S. Tech Mogul
The Times unraveled a financial network that stretches from Chicago to Shanghai and uses American nonprofits to push Chinese talking points worldwide. https://www.nytimes.com/2023/08/05/world/europe/neville-roy-singham-china-propaganda.html
— Muting Zoom
Chinese interference in the video conferencing company's operations is a stark lesson that governments need to get involved in countering Beijing's influence. https://www.thewirechina.com/2023/08/06/muting-zoom-china-investigation/
— China’s GDP blackout isn’t fooling anyone
There is diminishing faith in the few economic indicators that, after years of obfuscation, still see the light of day https://www.ft.com/content/43bea201-ff6c-4d94-8506-e58ff787802c
— I Watched the Dramatic Rise of Qin Gang — and Never Expected His Sudden Fall
An original Chinese “Wolf Warrior” diplomat has vanished.
https://www.politico.com/news/magazine/2023/08/15/chinese-diplomat-qin-gang-fall-00110333
— The battle of Brick Lane https://chinamediaproject.org/2023/08/18/the-battle-of-brick-lane/
— Xi’s Age of Stagnation : The great walling of China https://www.foreignaffairs.com/china/xi-jinping-age-stagnation
— The world should study China’s crushing of Hong Kong’s freedoms
Repression in Hong Kong is a work in progress, and a revealing window on the party’s worldview https://www.economist.com/china/2023/08/24/the-world-should-study-chinas-crushing-of-hong-kongs-freedoms
— The far-right populist Alternative for Germany party rejects a values-based foreign policy, just as much as it rejects NATO and the US. That approach has attracted the attention of Beijing. https://www.dw.com/en/china-courts-germany-s-far-right-populist-afd/a-66504263?maca=en-rss-en-all-1573-rdf
— China Mobilizes BRICS Media in Praise of Xi https://chinadigitaltimes.net/2023/08/china-mobilizes-brics-media-in-praise-of-xi/