Praise for achievements in the “battle to defend Shanghai”; Dynamic zero-Covid a “magic weapon”; Liu Jianchao replaces Song Tao; Cheng Lei
China is on vacation tomorrow for the Dragon Boat Festival holiday.
Today’s top items:
Outbreaks - People’s Daily praises Shanghai’s achievements in the “battle to defend Shanghai” in a page one article, even as the city continues to report some cases in the community. Beijing’s official data shows the current outbreak is almost under control.
Dynamic zero-Covid is a “magic weapon” - Page 1 People's Daily 7500+ character commentary by "Ren Lixuan" reiterates that dynamic zero-covid is the correct policy, calls it a "magic weapon 法宝". Yet another sign that the policy, while it will be refined, is going to be with us for a while.
Diplomatic moves ahead of the 20th Party Congress - Liu Jianchao is now the head of the CPC International Liaison Department, replacing Song Tao, who is 67. Liu moves over from being the deputy director of the general office of the Central Foreign Affairs Commission under Politburo member Yang Jiechi.
Xinjiang - Upcoming US ban on goods imported from Xinjiang may have real teeth, and Germany will no longer give companies risk insurance for investments in Xinjiang.
Australia’s Cheng Lei - Cheng and fellow citizen Yang Hengjun have effectively been disappeared into the maw of the state security system, quite terrifying, and their two cases would seem to be an obstacle to any sort of a “reset” between Australia and the PRC. Cheng’s boyfried discusses her case in an interview, interesting that he is the outgoing Australian China Chamber of Commerce CEO.
Explaining the Global Security Initiative - Xinhua has published four pieces explaining the meaning of the Global Security Initiative.
Thanks for reading, and I hope to see many of you in tomorrow’s weekly discussion thread.
1. Outbreaks
People’s Daily praises Shanghai’s achievements in the “battle to defend Shanghai” in a page one article, even as the city continues to report some cases in the community. Beijing’s official data shows the current outbreak is almost under control.
"The battle to safeguard Shanghai has achieved major phased achievements" - Page 1 Thursday People's Daily
Under the strong leadership of the Party Central Committee with Comrade Xi Jinping at the core, and with the strong support of several provinces and the People's Liberation Army, Shanghai cadres and masses have united and fought continuously to achieve major phased achievements in the battle to safeguard Shanghai. "The epidemic must be prevented, the economy must be stabilized and development must be safe", Shanghai is actively exploring new mechanisms for normalized prevention and control in the mega-city, and accelerating the return of economic and social development to the normal track.
在以习近平同志为核心的党中央坚强领导下，在多个省份和解放军的大力支援下，上海干部群众团结一心、连续奋战，取得了大上海保卫战的重大阶段性成果。“疫情要防住、经济要稳住、发展要安全”，上海正在积极探索超大城市常态化防控新机制，加快推动经济社会发展回归正常轨道.
Comment: Is this is a sign Shanghai Party Secretary Li Qiang is safe and not going to take any blame? So much for the myth of meritocracy and accountability if he is.
Three of the seven cases in the Pudong and Jing’an districts showed symptoms, health authorities said at a press briefing. Earlier in the day, authorities announced that daily new cases had fallen 13.3 per cent to 13 cases in the previous 24 hours, while five cases showed symptoms of the disease.
All 26 close contacts of the infected patients had been put under quarantine, where 21 had tested negative for Omicron, officials said.
Residents Crowd COVID Testing Sites to Move Across Shanghai Freely-SixthTone
The tests are free until the end of June, and they determine people’s mobility and freedoms...
for those with zero patience and money to spend, companies are already looking to capitalize on the demand for hassle-free COVID tests. A poster showing a health management company offering door-to-door sampling and promising results within two hours went viral Thursday.
The “VVIP” service cost 3,000 yuan ($449) for each test. But the company said it has scrapped its plan after criticism.
Comment: If starting July 1 people have to pay for these tests required by the government there is going to be a lot of anger
Shanghai to increase PCR test sites and extend operating hours - SHINE News
There are over 10,000 normalized nucleic acid sample collection sites throughout the city, but some of them failed to open, while others closed too early due to a shortage of staff on the first day of their official opening, said Xia Kejia, the official in charge of the PCR screening.
"I'd like to apologize to the citizens who had to wait in long lines at the PCR sample collection site yesterday," Xia said during the city's COVID-19 press briefing on Thursday.
More incompetence from Shanghai officials. Could they not calculate testing demand and set up enough testing locations to ensure wait times were reasonable?
Yicai - Long Queues on First Day of Shanghai’s Work Resumption as PCR Tests Become New Normal
Yicai Global reporters found during interviews at multiple downtown PCR testing stations that the waiting time in the line was generally more than one hour due to the large numbers. The rapidly-growing demand for Covid tests after resumption of work and production has led to tension over the resources for such tests...
“Considering the urgency of those returning to work, we still recommend that community residents who do not have urgent nucleic acid testing needs, such as those wanting to shop at supermarkets and wet markets, can wait for a while and allow the limited resources to serve people with pressing demand first,” a public health expert told Yicai Global.
Thirteen districts in Beijing which have not seen positive COVID-19 cases in past seven days at community level have restored normal order of production and everyday life, Xu Hejian, a spokesperson from the Beijing Municipal government announced on Thursday while noting that two districts - Fengtai and Changping - have still registered positive cases in communities.
Beijing registered 14 positive cases on Wednesday and five on Thursday, a sharp drop from previous positive infections last month. Among them, two and one were screened out in communities, respectively on Wednesday and Thursday.
WorldSkills Shanghai 2022 canceled - ECNS
The WorldSkills Shanghai 2022 scheduled to be held in October this year will be canceled due to the pandemic, WorldSkills International announced on Tuesday, adding that they will consider hosting the 2026 World Skills Competition in Shanghai.
COVID-19 vaccination rate among elderly further increases in China-Xinhua
More than 218 million Chinese aged 60 or above, or 82.66 percent of the country's senior citizens, have been fully vaccinated against COVID-19, an increase of about 1 million people from 10 days ago, an official said Thursday.
Among them, over 169 million have received a booster shot, Lei Zhenglong, an official with the National Health Commission, told a press conference
Comment: So 100,000 per day. Using the stats above, there are 263.7 million “senior citizens”, so they need to vaccinate 45 million more to get full coverage. At the current rate of 100,00 per day that is 450 days, or late August 2023.
Tianjin starting another round of testing all residents on June 5
2. Dynamic zero-Covid is a “magic weapon”
Page 1 People's Daily 7500+ character commentary by "Ren Lixuan" reiterates that dynamic zero-covid is the correct policy, calls it a "magic weapon 法宝". Yet another sign that the policy, while it will be refined, is going to be with us for a while. The article also says that:
Development is the primary task of the Party in governing and rejuvenating the country, and is the foundation and key to solving all problems in China. We must concentrate on running our own affairs well. We must continue to take economic development as the central task, seek progress while maintaining stability and promote high-quality economic development
“发展是党执政兴国的第一要务，是解决我国一切问题的基础和关键。集中精力办好自己的事情，必须坚持以经济建设为中心，稳中求进推动经济高质量发展”
So cadres have dual marching orders—persist in dynamic zero-Covid while making the economy work. Perhaps Marxists are better at handling contradictions?
"Focus on managing our own affairs well " - 集中精力办好自己的事情 - 任理轩
坚持“动态清零”总方针，高效统筹疫情防控和经济社会发展。疫情防控是“国之大者”。新冠肺炎疫情发生以来，在以习近平同志为核心的党中央坚强领导下，经过全国上下勠力同心、并肩作战，我们经受住了一次又一次突发疫情考验，打赢了一场又一场疫情防控阻击战。实践证明，我们的防控方针是由党的性质和宗旨决定的，我们的防控政策是经得起历史检验的，我们的防控措施是科学有效的。特别是今年3月以来我们与奥密克戎变异株艰苦坚决、有力有效的斗争充分说明，“动态清零”总方针是完全必要、完全可行的，能够最大限度保护人民群众的生命安全和身体健康，最大限度减少疫情对经济社会发展的影响，以最小成本取得最大成效，是我国控制疫情的“法宝”。应当看到，一些国家“躺平”是抗疫失败后的无奈之举，实则代价惨痛、危害深远。我们不能受其误导影响而动摇“动态清零”的决心，让来之不易的抗疫成果付诸东流。当前，全球疫情仍处于高位，病毒还在不断变异，疫情的最终走向还存在很大不确定性，疫情防控工作正处于“逆水行舟、不进则退”的关键时期和吃劲阶段。要深刻、完整、全面认识党中央确定的疫情防控方针政策，高效统筹疫情防控和经济社会发展，坚决克服认识不足、准备不足、工作不足等问题，坚决克服轻视、无所谓、自以为是等思想，始终保持清醒头脑，毫不动摇坚持“动态清零”总方针，因时因势优化调整防控措施，加强科学精准防控，不搞简单化，防止层层加码“一刀切”，在最大程度保护人民生命安全和身体健康的基础上实现全年经济社会发展目标任务。。。
要深刻、完整、全面认识党中央确定的疫情防控方针政策，高效统筹疫情防控和经济社会发展，坚决克服认识不足、准备不足、工作不足等问题，坚决克服轻视、无所谓、自以为是等思想，始终保持清醒头脑，毫不动摇坚持“动态清零”总方针，因时因势优化调整防控措施，加强科学精准防控，不搞简单化，防止层层加码“一刀切”，在最大程度保护人民生命安全和身体健康的基础上实现全年经济社会发展目标任务。
掌握历史主动，推动经济高质量发展。发展是党执政兴国的第一要务，是解决我国一切问题的基础和关键。集中精力办好自己的事情，必须坚持以经济建设为中心，稳中求进推动经济高质量发展
page 2 People's Daily by "Zhong Yin" "dynamic zero-Covid accords most to China's reality"
3. Diplomatic moves ahead of the 20th Party Congress
Liu Jianchao is now the head of the CPC International Liaison Department, replacing Song Tao, who is 67. Liu moves over from being the deputy director of the general office of the Central Foreign Affairs Commission under Politburo member Yang Jiechi.
It is not obvious who will replace Yang as the PRC's top diplomat. Current Foreign Minister Wang Yi would seem like the obvious choice, but he will be 69 in October and, if the age norms for joining the Politburo are still in place at the 20th, too old to join the Politburo. Song is young enough per those age norms, and has been the head Party diplomat for years. It is also possible that the director of the general office of the Central Foreign Affairs Commission will not be held by a Politburo member at the 20th.
In 2015, at the height of President Xi Jinping’s anti-corruption campaign, Liu was appointed head of the international cooperation department of the Central Commission for Discipline Inspection, the party’s top anti-corruption body – a role that made him the point man for Beijing’s efforts to hunt down overseas corruption suspects.
Once a strong contender to be the next foreign minister, Liu Jianchao now appears destined for the State Council Information Office, a source says
人事观察｜接替67岁宋涛 58岁中央外办副主任刘建超任中联部部长_政经频道_财新网
Caixin piece Liu Jianchao and his appointment as head of the ILD. Liu served as Foreign Ministry spokesperson for many years, and that he has succeeded Song Tao once before, when he became ambassador to the Philippines
Liu Jieyi is also mentioned as a possible replacement for Wang Yi as the next Foreign Minister. There are going to be lots of rumors between now and when they make the selection public.
Liu is current head of the Taiwan Affairs Office (at full Minister rank 正部级) , spent a long time in the Ministry of Foreign Affairs, including as China's Permanent Representative to the UN, also was a Vice Minister of the International Liaison Department, he will be 65 in December, he is probably the most likely person to replace Yang Jiechi.
Liu was born in Beijing. He attended Beijing Foreign Studies University and from 1981 to 1987 worked as a translator at the UN offices in Geneva. In 1987, he joined the Ministry of Foreign Affairs of the People's Republic of China, where he worked in various positions until 2009.
From 2009 to 2013, Liu was the Vice Minister of the International Department of the Central Committee of the Communist Party of China.
In 2013, Liu succeeded Li Baodong as China's Permanent Representative to the UN in Manhattan. Liu acted as President of the UN Security Council four times - in November 2013, February 2015, April 2016 and July 2017.[1]
Starting October 2017 and up to March 2018, Liu served as Deputy Director of the Taiwan Affairs Office.[1] He was promoted to Director in March 2018, replacing Zhang Zhijun.[2]
Song Tao 宋涛 (diplomat) - Wikipedia
Song was born Suqian, Jiangsu province, in April 1955. During the Cultural Revolution, when Song was a teenager, he performed manual labour as a sent-down youth in Sha County, Fujian. He worked in the province for his whole life. He attended Fujian Normal University. Beginning in 1978, he worked at the Fujian Forestry Institute. He was later transferred to the Light Industry Institute of Fujian. He also worked in Luoyuan County, the Light Textiles Industry Company of Fujian, Fujian International Trust Company. From September 1988 to August 1991, he attended Monash University in Australia. In 2001, he was named as an assistant to the Chinese ambassador to India. He then became ambassador to Guyana, a department chief in the Ministry of Foreign Affairs, and the ambassador to the Philippines.[1]
In August 2008, he joined the party committee of the Ministry of Foreign Affairs and the head of discipline inspection of the ministry, in charge of supervision and anti-corruption activities. In September 2011, he was named vice minister of foreign affairs. In November 2013, he was named deputy head of the Foreign Affairs Office, the execution arm of the Foreign Affairs Leading Group. In September 2014, he was elevated to executive deputy chief of the office, with the rank equivalent of a minister.[1]
In October 2015, Song accompanied Politburo Standing Committee member Liu Yunshan on a high-profile trip to North Korea. In November 2015, he replaced Wang Jiarui as head of the International Liaison Department of the Chinese Communist Party.
4. Xinjiang
Upcoming US ban on goods imported from Xinjiang may have real teeth, and Germany will no longer give companies risk insurance for investments in Xinjiang.
U.S. is ready to implement ban on Xinjiang goods on June 21 | Reuters
U.S. President Joe Biden in December signed into law the Uyghur Forced Labor Prevention Act (UFLPA) in an effort to safeguard the U.S. market from products potentially tainted by human rights abuses in Xinjiang, where the U.S. government says China is committing genocide against Uyghur Muslims.
The law includes a "rebuttable presumption" that all goods from Xinjiang, where Chinese authorities established detention camps for Uyghurs and other Muslim groups, are made with forced labor, and bars their import unless it can be proven otherwise.
U.S. and others seek ILO China mission to probe alleged Xinjiang abuses | Reuters
The United States, Britain and other countries on Thursday called for the International Labour Organization to set up a mission to probe alleged labour abuses in China's Xinjiang and urged Beijing to allow unfettered access.
A committee at the U.N. agency is addressing China's compliance with global labour standards after describing its practices in the western region of Xinjiang as discriminatory in February, ILO documents showed.
Foreign Ministry Spokesperson Zhao Lijian’s Regular Press Conference on June 2, 2022
Bloomberg: The Biden administration signaled on Wednesday that they are prepared to take a tough stance enforcing a ban on imported goods from Xinjiang. That’s unless companies provide clear evidence that the goods are free of forced labor. Does the foreign ministry have a comment on this latest signaling from the Biden administration on forced labor?
Zhao Lijian: We have rebuked US lies on Xinjiang many times. The so-called Uyghur Forced Labor Prevention Act, in disregard of facts, maliciously smears the human rights conditions in China’s Xinjiang, grossly interferes in China’s internal affairs, gravely violates international law and basic norms governing international relations, and violates market rules and commercial ethics. China expresses its firm opposition. If implemented, the Act will seriously disrupt normal cooperation between Chinese and American businesses, undermine the stability of global supply chains, and eventually hurt the US own interests. We urge the US to refrain from enforcing the Act, stop using Xinjiang-related issues to interfere in China’s internal affairs and contain China’s development. If the US is bent on doing so, China will take forceful measures to firmly defend its own interests and dignity.
Xinjiang Imports to Face High Bar Under US Forced Labor Ban - Bloomberg
In a webinar offering the most detailed look yet at the US government’s plan for implementing the law that takes force June 21, Customs and Border Protection officials warned companies the bar for clearing imports will be “very high,” and that the agency will not look the other way when goods have only a minimal connection with Xinjiang.
“If there’s a part or a piece of an input that is coming from the Xinjiang region, then that shipment will be considering containing forced labor and it will not be allowed into the country,” said Elva Muneton, acting executive director of the task force implementing the new law.
An anonymous letter from a Uyghur in China – SupChina - Darren Byler
Some time ago in a major city in eastern China, a letter was hand-delivered by a Uyghur young man. The young man addressed the letter to the world outside China. The recipient of the letter, a non-Chinese citizen in eastern China, in turn shared it with me at the author’s request.
At the risk of great personal harm, the author insisted that the letter be translated, edited, and published in English. After independently confirming the identity of the letter-writer, I agreed to do this. The version of the letter below has been approved by the author...
In the letter, the author describes how his life has been shattered by the mass internment campaign that has swept up Uyghurs from across the country, trapping them “in the darker world of Xinjiang.” He talks about the way the souls of Uyghur children are imprisoned from the day they are born, and how it didn’t used to be that way. He grew up believing in China, honored to be the one who raised the red flag at his school in Xinjiang. Now he has seen his relatives taken away, the fear on his parents’ faces. He, like most Uyghurs in China, knows a great deal about the reeducation camps and “poverty alleviation” programs that are used to separate them from each other and their way of life.
Germany Spurns VW’s Guarantee Request in China, Citing Human Rights - WSJ $$
Germany’s government has declined a request by Volkswagen AG to renew risk insurance for the car maker’s operations in China, marking an inflection point for a country that has long put trade ahead of politics in international relations...
The decision, which wasn’t announced officially but was confirmed by several people familiar with the situation, is unlikely to stop German companies from doing business in China but it raises the risks of doing so. It also sets a precedent that for the first time links support for German companies investing in China with Beijing’s treatment of Muslims in the Xinjiang province.
“In the face of forced labor and abuse of the Uyghurs we cannot provide insurance for any projects in the Xinjiang region,” German Economics Minister Robert Habeck said over the weekend.
5. Australia’s Cheng Lei
Cheng and fellow citizen Yang Hengjun have effectively been disappeared into the maw of the state security system, quite terrifying, and their two cases would seem to be an obstacle to any sort of a “reset” between Australia and the PRC. Cheng’s boyfried discusses her case in an interview, interesting that he is the outgoing Australian China Chamber of Commerce CEO.
The boyfriend of Australian-Chinese journalist Cheng Lei - who has been in detention for 21 months on suspicion of “illegally supplying state records overseas” - has opened up in an exclusive interview with Sky News Australia about her declining health and the moment he discovered she vanished...
Mr Coyle spoke with his girlfriend on August 13 2020 about attending his birthday drinks but she failed to respond to him the following day when they were supposed to meet...
"I tried to call her, phone was off, so I decided I won’t panic stations yet and tried to call her again later that night, nothing," the outgoing Australian China Chamber of Commerce CEO said.
The next morning he ventured to her unit with a friend of the journalist - who was later also detained by authorities - where they made a startling discovery.
"(We) went into the apartment and everything looked normal until I could see all the electronic devices, computers, all those sorts of things, were gone and then it was pretty obvious to me what had happened," Mr Coyle said.
And what is the status of the case against Bloomberg journalist and Cheng Lei’s friend Haze Fan?
6. Explaining the Global Security Initiative
Xinhua has published four pieces explaining the meaning of the Global Security Initiative.
新华国际时评：标本兼治的中国智慧——解读全球安全倡议系列评论之一-新华网 China's Wisdom of Treating both the Symptoms and the Root Causes: First in a Series of Commentaries Interpreting the Global Security Initiative
新华国际时评：公平正义的中国主张——解读全球安全倡议系列评论之二-新华网 China stands for fairness and justice - Second in a Series of Commentaries Interpreting the Global Security Initiative
新华国际时评：知行合一的中国力量——解读全球安全倡议系列评论之三-新华网 The Chinese power of unity of knowledge and action - Third in a Series of Commentaries Interpreting the Global Security Initiative
新华国际时评：以和为贵的中国精神——解读全球安全倡议系列评论之四-新华网 The Chinese spirit of valuing harmony - Fourth in a Series of Commentaries Interpreting the Global Security Initiative
Business, Economy and Trade
China Raises Pressure on Banks to Help Struggling Developers - Bloomberg Local branches at the People’s Bank of China have called for meetings with banks in multiple cities since last week to assess why loans have slowed, along with the difficulties faced by banks and how regulators can help, according to people with knowledge of the matter. The move represents increasing concern from officials following repeated so-called window guidance for faster property lending in previous months, the people said, asking not to be identified discussing private information.
China banks appeal for relaxation of documentation rules to ease funds flow-sources | Reuters Banks in China are urging regulators to relax rigid documentation rules as companies there have not been able to fulfill them due to COVID-19 lockdowns, forcing the lenders to halt services such as loan disbursements, sources said.
Yicai - Chinese Regions' Special Bonds to Hit a Record of Over USD209.7 Billion in June The new bond tally should exceed CNY1.4 trillion (USD209.7 billion) in June to set a single-month record based on the State Council's first-half requirements. The value of such bonds, mostly used in infrastructure investment, surged to CNY2.03 trillion in the first five months of this year, roughly CNY1.5 trillion more than during the same period of last year, Yicai Global learned. The issuance of CNY3.45 trillion of special bonds should basically be finished by June, while the funds must be put into use by August, the State Council said in a notice late last month
Meituan Sales Beat After New Business Offsets China Slowdown - Bloomberg Sales rose to 46.3 billion yuan ($6.9 billion) in the three months ended March, propelled by a 47% surge in revenue from the division that groups new businesses such as ride-hailing and community commerce. Revenues exceeded the average analysts’ estimate of 45.3 billion yuan, but marked the slowest pace of growth for the company in almost two years.
Xiaomi-linked companies halt IPOs after Chinese regulator scrutiny | Financial Times Smart mattress maker 8H, intelligent lighting company Yeelight and commercial operating system maker Shanghai Sunmi Technology have shelved IPO plans in recent months, according to documents and Chinese media reports. The moves have come after they were questioned by Chinese regulators about being part of Xiaomi’s “ecosystem companies”, a vast array of groups in which the smartphone seller has either directly invested or made commercial arrangements. // So much for regulatory letup on tech conglomerates?
China's draft cybersecurity rules pose risks for financial firms, lobby group warns | Reuters The China Securities Regulatory Commission (CSRC) released the draft Administrative Measures for the Management of Network Security in the Securities and Futures Industry on April 29, and offered a month-long public consultation on the proposals. The draft rules seek to make it mandatory for investment banks, asset managers, and futures companies with operations in China to share data with CSRC, allow regulator-led testing, and help set up a centralised data backup centre.
Yicai - China’s Logistics Gauge Recovers in May Amid Ebbing Covid-19 Outbreaks China’s logistics prosperity index rallied by 5.5 percentage points to 49.3 percent in May from a month earlier, according to data released by the China Federation of Logistics and Purchasing today. In April, the index had slumped to an almost two-year low amid Shanghai's lockdown.
Chinese provinces resume inter-provincial group tours ahead of holiday to boost tourism - Global Times More than ten Chinese localities have moved to restart inter-provincial group tours, after the Ministry of Culture and Tourism (MCT) on Tuesday announced more targeted anti-epidemic measures in an effort to boost tourism, while preventing the spread of COVID-19 ahead of the three-day Dragon Boat Festival holiday starting on Friday.
China to see more rail passenger trips in Dragon Boat Festival - XInhua China will see a rebound in railway passenger trips during the Dragon Boat Festival holiday travel rush from Thursday to Sunday, the China State Railway Group Co., Ltd. (China Railway) said Thursday. During the period, average daily railway passenger trips are expected to reach 5.4 million, up 2 million trips per day from the May Day holiday, China Railway said
China Pushes Ahead With Plan to Cut Reliance on Iron Ore Imports - Caixin Representatives from the National Development and Reform Commission (NDRC), the China Iron and Steel Association (CISA), and the Metallurgical Mines’ Association of China recently discussed accelerating the construction of domestic iron ore projects under CISA’s “Foundation Plan (基石计划),” the NDRC said in a Monday post. As part of the Foundation Plan, Chinese companies will source more iron ore from domestic producers and gradually slash imports over the next 10 to 15 years, the CISA told the state-owned Xinhua News Agency in March.
Yicai - Shanghai’s First Land Auction of 2022 Bags USD7.4 Billion Most of the participants of these auctions were local government or central government-owned developers.
Yicai - 40% of Car Dealers Cut Staff Amid Declining Sales in May, CADA Survey Shows “Average visitors to 4S stores -- car shops that provide sales, service, spare parts, and surveys -- fell 45 percent last month from a year earlier,” Wang Du, deputy secretary-general of the CADA, said at a monthly press briefing yesterday. Each car dealer fired one to 10 employees last month, according to the findings of a monthly industrial survey the CADA released yesterday.
Chinese Officials Vow to Carry Out Plans for Growth Stimulus - Bloomberg Ministry of Finance authorities said Thursday they would accelerate refunds of value-added taxes, make it easier for small companies to bid on government purchasing projects, and ensure that local special bonds -- which are mainly used to fund infrastructure projects -- are issued in a smooth manner, according to a ministry briefing. At a separate press conference, People’s Bank of China officials promised to step up their plans to implement monetary policy to help maintain growth.
Sri Lanka Can’t Use $1.5 Billion China Swap Due to IMF Concerns - Bloomberg Bankrupt Sri Lanka can’t tap a $1.5 billion credit line from China as the Chinese are concerned the International Monetary Fund may force delays in repayment.
Politics and Law
Ex-Chinese official, securities regulator sentenced to death for corruption | South China Morning Post Tong Daochi, a former senior official in China’s southern Hainan province and an ex-securities regulator, was sentenced to death for bribery and insider trading, with a two-year reprieve, according to state media. Tong, also former Communist Party secretary in the Hainan city of Sanya, received bribes worth 274 million yuan (US$41 million) between 2004 and 2020, official news agency Xinhua reported on Thursday.
人事观察｜甘肃原公安厅长余建转岗黑龙江_政经频道_财新网 Yu Jian moved from running the Gansu Public security Department to an as yet unannounced post in Heilongjiang
人事观察｜“70后”公安部办公厅主任黄瑞雪任甘肃公安厅长_政经频道_财新网 Huang Ruixue, director of the general office of the Ministry of Public Security, move to Gansu has head of the provincial public security department
人事观察｜联通副总买彦州履新宁夏党委常委、副主席_政经频道_财新网 Mai Yanzhou moves from Executive Director and Senior Vice President of China Unicom to Deputy Chairman of Ningxia Autonomous Region
新京报 - 辽宁省人大常委会副主任孙国相，被查 Sun Guoxiang, former vice chair of the Liaoning Provincial People's Congress, is under investigation
Xi Jinping bans grumbling inside the Communist Party | The Economist Mr Xi’s silencing of dissent is more ambitious than anything his predecessors attempted. For decades after Mao’s death, party chiefs hailed the wisdom offered by “collective leadership” while denouncing “factionalism”. But in fact they knew, and tacitly accepted, that these are two aspects of the same phenomenon, argues Olivia Cheung of the University of London’s School of Oriental and African Studies, author of an elegant new research paper: “Factional model-making in China: party elites’ open political contention in the policy process”. The paper sets out how national leaders governed by balancing rival factions. In turn, norms emerged that allowed elders to show disdain for mainstream party policies without crossing a line into open revolt. // Comment: Xi started his public aim at the elder grumbling with the neutering of Yanhuang Chunqiu in 2016, he really does look he has a had a plan. Chris Buckley wrote this story on the 2016 move against the magazine, and here is the cover of the July 2016 issue, the last one I bought.
Factional Model-making in China: Party Elites’ Open Political Contention in the Policy Process | The China Quarterly | Cambridge Core This article chronicles the history of factional model-making from the 1960s to 2012 and examines in detail the making of Henan's Nanjie Village into a re-collectivization model by the Party's left. The process began in the 1990s and ended soon after Xi Jinping came to power in 2012, which prompted Nanjie's patrons to recast the village as a Party model trumpeting Xi's line. The suppression of factional model-making under Xi is discussed in the conclusion.
港媒：“战地记者”吕岩松出任新华社总编辑_联合早报 据港媒《星岛日报》消息，有“战地记者”之称的中央宣传部副部长吕岩松出任新华社总编辑，晋升为正部级，与不久前升任新华社社长的傅华联手执掌国家通讯社。// Lv Yansong the new editor in chief of Xinhua, was at the embassy in Belgrade when Nato bombed it in 1999.
Foreign and Defense Affairs
06/02/2022 China MFA Press Conference Shenzhen TV: US Secretary of State Blinken said in his China policy speech that “We have profound differences with the Chinese Communist Party and the Chinese Government. But those differences are between governments and systems – not between our people”. Do you have any comment? Zhao Lijian: Secretary Blinken’s remarks are part of an attempt to sever the strong bond between the CPC and the Chinese people. China firmly rejects that. The Chinese people are fully aware of the ill intention of the US to suppress and contain China’s development and hinder the Chinese nation’s rejuvenation. Moves like this that are designed to sow discord will not succeed.
Response to Blinken's Foreign Affairs comments - Chinese Foreign Ministry hits back at Blinken, urging US to focus on own domestic problems - Global Times "Does it mean that the US can attack other sovereign countries militarily at will, while other countries can only keep quiet and endure it? Does it mean that the US can arbitrarily and unilaterally slap illegal sanctions on other sovereign countries, while other countries have to accept it? Does it mean that the US can attack, smear, suppress and contain other countries' legitimate sovereignty, security and development rights without a bottom line, while other countries can only wait and never fight back?" Zhao asked.
Blinken's China speech: views from Beijing - Ginger River, another Xinhua reporter with a Substack Wu Xinbo:... Fourth, Blinken stated at the end of his speech that there is no reason why two countries cannot "coexist peacefully" - the wording here has also changed. Last year during his meeting with President Xi, Biden suggested coexistence between China and the U.S. And President Xi said that one more word can be added to make it “peaceful coexistence.” The change in wording by the U.S. side demonstrates that it accepts this concept of peaceful coexistence, at least verbally.
Wang Jisi: Has the U.S. Really Declined? Chinese Need to Have a Clear Understanding About This | 高大伟 David Cowhig's Translation Blog In this interview, Wang Jisi, Director of the Institute for International Strategic Studies at Peking University, points out that the international status of the United States has indeed been declining relative to China in the last decade, but not significantly compared with countries other than China. Compared with previous hegemonic powers, the U.S. has various existing advantages that prevent it from going into a rapid decline. The current soft power of the United States is much less than it once was, and its political decline is rare in history, but it has not yet severely constrained its economic and technological development.
China Warns New Zealand Against Squandering Trade Ties - WSJ Wang Xialong, China’s ambassador to New Zealand, told the New Zealand China Council that an economic relationship in which China buys nearly a third of the country’s exports shouldn’t be taken for granted...“It comes across as a pointed reminder to Wellington. Essentially it seems to be saying to tread very carefully,” Geoffrey Miller, international analyst at Victoria University’s Democracy Project, said of the ambassador’s speech. “Australia’s experience shows how things can change very quickly.”
Canada alarmed as Chinese fighter pilots ‘buzz’ Canadian planes over international waters - National | Globalnews.ca Multiple sources in the Canadian Forces and the federal government tell Global News that Chinese jets are repeatedly “buzzing” a Canadian surveillance plane that is part of a United Nations mission over international waters. Those jets are frequently flying as close as 20 to 100 feet from the Canadian plane, sources say — so close that Canadian pilots can make eye contact with the Chinese pilots, and sometimes see them raising their middle fingers. The sources spoke on condition of anonymity to discuss sensitive information.
China-Japan ties at a crucial crossroads; Tokyo’s handling of Taiwan question serious obstacle to bilateral relations: Chinese envoy - Global Times Chinese Ambassador to Japan Kong Xuanyou said on Wednesday that the relations between China and Japan are at a crucial crossroads, as Japan, in an apparent collaboration with the US, is increasingly considering China a strategic threat. The envoy urged Japan not to cross the red line on the Taiwan question, warning a "destructive impact" on bilateral ties if the situation is not handled properly, at a conference organized by one of the Japanese associations that are friendly to China, to commemorate the 50 years of diplomatic relations between China and Japan, on Wednesday.
Japan’s de facto aircraft carrier Izumo to be dispatched to Indo-Pacific from mid-June - The Japan News The deployment includes other vessels, such as the destroyers Takanami and Kirisame and a submarine, and aerial units including a P-1 maritime patrol aircraft, and will run through Oct. 28. The ports of call will cover 12 countries and regions, including Fiji, the Solomon Islands, Tonga and Vanuatu in the South Pacific, as well as fellow Quad members the United States, India and Australia. This will be the first port of call in Vanuatu by MSDF units.
Wang Yi to arrive in Papua New Guinea; wide range of bilateral cooperation expected - Global Times China could play an important role in helping PNG in various regards where the island country has been under great pressure from some Western countries, for example deepening cooperation to boost local employment and urging some Western countries to implement the Paris Agreement. China and PNG are stepping up the joint feasibility study of free trade, which is conducive to creating better framework conditions for bilateral economic, trade and investment cooperation. PNG welcomes Chinese enterprises to increase investment in downstream processing industries in the fields of energy, minerals, forestry and fishery, China's Ambassador to PNG Zeng Fanhua told the Global Times in a recent exclusive interview.
Penny Wong flies to Samoa and Tonga in the wake of visits from China’s foreign minister Wang Yi - Sydney Morning Herald Beijing put some Pacific island nations including Niue and Samoa offside on Monday by attempting to ram through a region-wide deal without sufficient time for consultation. The Pacific leaders rejected the security and trade deal because they had not reached a consensus, forcing Beijing to rush out a position paper that stripped out references to policing, data security and free trade.
Prime Minister Bob Loughman of Vanuatu Leads Key Cabinet Members to Hold Collective Talks with Wang Yi The two sides agreed to uphold true multilateralism, stick to fighting the pandemic in solidarity, and promote the building of a community with a shared future for mankind. Loughman spoke highly of the Global Development Initiative put forward by President Xi Jinping, and expressed Vanuatu's readiness to take an active part in it. Wang Yi appreciated this and said that Vanuatu is welcome to support the Global Security Initiative, act on the vision of common, comprehensive, cooperative and sustainable security, and make positive contributions to safeguarding world peace.
Vanuatu will always be true friend of China: president - People's Daily Online Moses made the remarks in a meeting with Chinese State Councilor and Foreign Minister Wang Yi, which fell on the occasion of the 40th anniversary of the establishment of diplomatic ties between the two countries...The Chinese foreign minister stressed that different from some major countries, China always adheres to the principle of sovereign equality in its diplomacy and treats all the developing countries, especially small and medium-sized countries, sincerely and equally. At the international and regional levels, especially in the United Nations system, China also firmly upholds the legitimate rights and interests of the developing countries, he added.
China says to continue seeking development in ties with Cook Islands - CGTN Wang Yi met with Mark Brown, prime minister and foreign minister of the Cook Islands, via video link on Thursday where the Chinese official said China will continue seeking development in ties with the South Pacific country.
Commentary: China, Pacific island countries -- friends in need, indeed - People's Daily Online China's assistance and cooperation are free of political conditions, proving it is a trustworthy friend and partner. "Unlike the U.S. and its allies like Australia, or international bodies like the World Bank and the Asian Development Bank, Beijing usually does not tie its aid to economic and governance reforms," read an Aljazeera report released last week. Furthermore, China has been working with Pacific island countries to achieve common development and prosperity without targeting at anyone. From 1992 to 2021, trade volume between China and Pacific island countries having diplomatic relations with China registered an average annual increase of 13 percent and expanded by over 30 times. Those who are too obsessed with the Monroe Doctrine and the idea of "a sphere of influence" should respect the rights of the Pacific island countries as a sovereign nation to manage their own affairs and make decisions in their own best interests.
Micronesian foreign secretary hails mature, strong relationship with China-Xinhua Micronesian Secretary of Foreign Affairs Kandhi Elieisar said on Thursday that Chinese State Councilor and Foreign Minister Wang Yi's "cloud visit" to the Federated States of Micronesia highlighted the mature and strong relations between the two countries. Welcoming the "cloud visit", or a video meeting, paid by the Chinese state councilor, Elieisar said China has been sincere and cordial in conducting pragmatic, productive cooperation with Micronesia since the establishment of diplomatic ties.
Yang Jiechi Speaks with Head of ROK's Office of National Security Kim Sung-han on the Phone Yang Jiechi said, China and the ROK are not only close neighbors but also important cooperative partners. Since the establishment of diplomatic ties 30 years ago, China and successive ROK administrations have worked together to achieve leapfrog development of bilateral relations. Under the strategic guidance of President Xi Jinping and President Yoon Suk-yeol, China-ROK relations have been kicked off to a good start since the establishment of the new ROK government. China is ready to work with the ROK to implement the important consensus reached by the two heads of state, maintain close communication at all levels, deepen practical cooperation, strengthen people-to-people and cultural exchanges, jointly uphold true multilateralism, properly handle sensitive issues, and promote the upgrade of bilateral relations for steady and sustained progress.
China Gears Up to Launch Its Third Aircraft Carrier | Center for Strategic and International Studies After a long lull at the usually busy Jiangnan Shipyard, China is one step closer to launching its largest and most advanced aircraft carrier—the Type 003. Satellite imagery from May 31 shows that the dry dock where the much-anticipated warship is currently positioned has been cleared of other shipbuilding projects, leaving an open path for the flattop carrier to enter the Yangtze River.
Russia Forcing Changes to NATO Strategic Concepts > U.S. Department of Defense > Defense Department News China, too, is a concern. The foreign ministers of Australia, New Zealand, Japan and South Korea will join NATO leaders in Madrid. Smith believes this will broaden "the conversation about our shared security, … talking to them about things like emerging and disruptive technologies and cyber," she said.
CCG vessels patrol territorial waters surrounding Diaoyu Islands - China Military The China Coast Guard (CCG) vessels, led by Vessel 2301, patrolled within China’s territorial waters surrounding the Diaoyu Islands on Thursday, according to a statement released by the CCG’s official Weibo account on June 2, 2022.
Political Front Lines: China's Pursuit of Influence in Africa - The National Bureau of Asian Research (NBR) This report examines the understudied field of China’s political influence activities in Africa and describes the united front system’s attempts to manage overseas Chinese communities, co-opt African elites, and shape the perception of wider African audiences.
China-Kyrgyzstan-Uzbekistan railway to start construction in 2023: Kyrgyz President tells local media - Global Times The construction of the CKU railroad will begin next year, Kyrgyz President Sadyr Zhaparov told Kabar Agency on Monday. "We will start in 2023 after the feasibility study is completed this year. The feasibility study is being prepared with the participation of three parties. There will be jobs. Our economy will boom," said Zhaparov, noting that it has been 20 years since Kyrgyzstan wanted to build this railway.
Youth of SCO member states hail closer exchanges for better regional prosperity and fight against terrorism - Global Times Nikolai Snopkov, First Deputy Prime Minister of Belarus, vowed that Belarus, a current observer state of the SCO, is ready to get involved in the practical implementation of the SCO-proposed ideas to promote youth development. "Today, China is confidently moving towards technological leadership in the 21st century. And this gives all SCO countries confidence that political and economic sovereignty does not contradict joint technological development," said him. "We count on the active participation of young scientists in the formation of a pool of SCO technology parks, which is aimed at integrating the scientific, educational and industrial sectors in the SCO countrie
Is it arrogance or inferiority to engage in ‘critical dialogue’ with China?: Global Times editorial - Global Times Colonialism has long been discarded as something despicable, but Western-centric power structures and mentality have not disappeared completely. Colonialism has been subtly transplanted into various aspects, lurking in Western political language and communication methods. Some elites in the US and the West, with a strong sense of superiority on civilization, regard non-Western countries as candidates waiting for their "approval." With ideological pointers in their hands, they took to the podium to oversee exams, judge papers, and then grade them based on the "performance" of these countries to determine whether they passed the exam. As for the standard of scoring, it is drawn by the US and the West according to their own historical and social formations, and "Western-centrism" is the only correct answer in all the exams.
Hong Kong
Incoming Hong Kong leader John Lee ‘finalising team, selects top 3 ministers’ ahead of line-up reveal | South China Morning Post Eric Chan, 63, was picked as the city’s No 2 official after intense behind-the-scenes jockeying for the top post. A veteran pro-Beijing politician who is well connected with the central government told the Post that Chan initially turned down Lee’s invitation to become chief secretary. “Eric Chan told Lee he was determined to retire from government,” the politician said. “But many Beijing officials favour Eric Chan as the next chief secretary and he accepted the offer after some senior people had spoken to him.”
Lawyer Michael Vidler reflects on 19 years of equal rights advocacy in Hong Kong, and his reasons for leaving - Hong Kong Free Press HKFP “I lived here for 30 years. This has been my home. Hong Kong was my home… This isn’t how I expected to end my firm or my time in Hong Kong,” prominent human rights lawyer Michael Vidler told HKFP after a hasty exit to the UK in late April. The 58-year-old Brit cited concerns over the Beijing-drafted national security law and “unfounded allegations” by the city’s bellicose state-controlled press.
Hongkongers warned not to 'test police' during Tiananmen crackdown anniversary, as force reports calls to join unauthorised assembly - Hong Kong Free Press HKFP Hong Kong police have warned people not to join gatherings on the anniversary of the Tiananmen crackdown, saying online posts appeared to “incite” others to take part in an unauthorised assembly in Causeway Bay on Saturday.
Taiwan
U.S. urged to cease any form of official exchanges with Taiwan-Xinhua According to media reports, a virtual meeting was held on Wednesday between deputy U.S. trade representative and Taiwan representative to launch the so-called U.S.-Taiwan Initiative on 21st-Century Trade. "China firmly opposes any form of official exchanges between Taiwan and countries having diplomatic ties with China, including the negotiating and signing of agreements with sovereign implications and official nature," spokesperson Zhao Lijian said at a daily news briefing.
Spokesperson of the Chinese Mission to the EU Speaks on a Question Concerning a Senior EU Official’s Taiwan-related Remarks Q: According to media reports, a senior EU official said that the EU will upgrade its trade relations with Taiwan. What is your comment? A: The One-China principle is a universally acknowledged basic norm in international relations and the common consensus of the international community. It also serves as the political foundation for establishing and developing diplomatic relations between China and the EU. The commitment to the One-China principle was reiterated by the EU in all documents and statements it jointly issued with China. There is a clear consensus between China and the EU on issues such as unofficial economic, cultural and personnel exchanges between the EU and China’s Taiwan region. We firmly oppose any form of official interactions or any discussion and signing of agreement with implications of sovereignty and of official nature between countries or organizations and the Taiwan region. It needs to be noted that this is not a trade issue, but a serious political issue that concerns the political foundation of China-EU relations. There is no room for compromise for China. We urge the EU side not to gamble on this issue, abide by the One-China principle, earnestly respect China’s sovereignty and honor its political commitments with concrete actions.
Taiwan’s opposition KMT leader heads to US to reconnect with Washington | South China Morning Post The chairman of Taiwan’s opposition Kuomintang, Eric Chu Li-luan, is headed for the United States on an 11-day trip aimed at rebuilding ties with Washington. It comes after the US-Taiwan Initiative on 21st-Century Trade was launched on Tuesday, a sign of Washington’s deepening relations with the self-ruled island that Beijing claims sovereignty over. Chu said he would meet US officials, academics and ethnic Taiwanese communities during stops in San Francisco, Washington, New York and Los Angeles. He will also reopen the KMT office in Washington.
Taiwan’s opposition tries to claw back America’s trust | Financial Times $$ He will hold closed-door meetings with officials in President Joe Biden’s administration, members of Congress and think-tanks. On June 6, Chu will deliver a speech at the Brookings Institution before inaugurating a new KMT office and travelling to New York and California. The party closed its Washington office after it won the presidency in 2008 and the KMT representative became the government’s quasi-ambassador to the US.
Chinese PLA bombers carry out night raid drills around Taiwan and East China Sea | South China Morning Post The Chinese military arm watching the area around Taiwan recently carried out six hours of nighttime bomber flight training, state media reported on Wednesday. The bombers were part of the People’s Liberation Army’s (PLA) Eastern Theatre Command, which supervises the situation across the Taiwan Strait and also part of the East China Sea.
Tech and Media
Top Tech Dealmaker Warns China’s VC Winter Is Far From Over - Bloomberg Investors in private equity and venture capital funds, known as limited partners, are becoming a lot more selective before committing capital, Bao Fan, founder of China Renaissance Holdings, told Bloomberg News in Hong Kong. The industry may be witnessing the start of a longer-term shift in the geography and type of investor, as American and risk-averse backers begin to cool on China, he said in an interview.
Why China’s Influencers Are Losing Their Influence — The Information Chinese influencers have hawked billions of dollars worth of goods on their livestreams. Now some brands are beginning to shift their budgets away from internet celebrities to their own shopping channels due to soaring influencer fees, the rocky economy and a regulatory crackdown.
China launches nine Geely-01 satellites-Xinhua Owned by GeeSpace, a subsidiary of Geely Technology Group, the satellite constellation will be mainly used to research and validate technologies, such as travel services of intelligent connected vehicles, and vehicle/mobile phone and satellite interaction. It will also provide data support for marine environmental protection.
Yicai - China’s iReader Soars by Limit as Kindle Exits Country Shares in Chinese digital book library iReader Technology surged by the exchange-imposed limit today after US e-commerce giant Amazon said it is pulling its e-book service Kindle out of China in June next year.
Amazon (AMZN) to Shut Kindle Store in China After Years-Long Struggle - Bloomberg The e-commerce giant will discontinue the Kindle eBook store on June 30, 2023, a spokesperson said in an emailed statement. It promised to continue supporting Kindle readers or refund any device purchases made after January this year.
Society, Arts, Sports, Culture and History
Blood Brothers: The Scarred History of China’s Ethnic Russians - SixthTone Officially, there are just over 16,000 ethnic Russians registered in China today, clustered mainly in the northern territories of Heilongjiang province, the Inner Mongolia Autonomous Region, and the Xinjiang Uyghur Autonomous Region. The real number is likely greater, as many ethnic Russians are registered as Han Chinese.
Energy, Environment, Science and Health
Chinese state councilor stresses importance of flood control-Xinhua Chinese State Councilor Wang Yong has called for solid flood control efforts as the country enters its main flood season. Wang, who heads the country's flood control and drought relief headquarters, made the remarks during an inspection trip to provinces of Anhui and Jiangsu.
Rural and Agricultural Issues
Daily food supply remains sufficient in China: ministry-Xinhua China's supply of key farm produce remains generally adequate to meet the needs of the people despite COVID-19 resurgences, according to the Ministry of Agriculture and Rural Affairs on Thursday.
This is definitely one of those moments in time where I would *love* to skip forward briefly just to see how it all turns out.
I can envision a world in which China manages to keep a lid on even Omicron for another 2-3 years at escalating cost to the economy but preserving the popular sentiment that it values the lives of ordinary people over the wealth of the rich. Or one in which it throws in the towel later this year after pretty much forcing everyone to get a third Sinovac round, losing that sentiment boost but hopefully avoiding a complete cratering of the economy.
What I can't tell is which of these would actually be better for the Party in the long run. And if there's some way to split the difference, a third option that lets them thread the needle?