Daily Briefs


Photo : Xinhua

25 September 2021, Saturday

Return of Meng Wanzhou

The crypto exchange halts after Beijing widens the ban; China regulating cartoon producers on unhealthy content

IN FOCUS
By Avishka Ashok 

Return of Meng Wanzhou
On 25 September, Xinhua Net reported that Meng Wanzhou had left Canada on 24 September and was on her way back home after China arranged for a charter flight. Hua Chunying, a Chinese foreign ministry spokesperson commented on the return of Meng Wanzhou and reiterated the Chinese position on the case filed against Meng. She said that the charges issued against Meng were unfair and that the case had always remained consistent and clear. Hua blamed the foreign governments for intentionally and unfairly targeting a Chinese national and attempting to sabotage the high0tech companies based in China. She said: “What the United States and Canada have done is a typical case of arbitrary detention.”

Meng Wanzhou, the chief financial officer at Huawei Technologies, had been detained in Canada at the request of the US for bank fraud charges in December 2018. She has now reached a deferred prosecution agreement with the US Justice Department which permits her to return back to China for the time being. As a part of the deal which allows her to return home, Meng had to accept her involvement in an attempt to escape the US sanctions against Iran. She accepted that Huawei had significant relationship with Skycom Tech Co. Ltd. and protected details about the finances to the bank. Skycom Tech conducts its business from Iran but is controlled by the Chinese Tech giant, Huawei. She has also accepted that Huawei made Skycom carry out business deals worth over USD 100 million through HSBC bank that cleared all transactions. 

The implications of Meng’s acceptance of her involvement in the financial fraud will mean that Huawei will be held responsible for working through Skycom Tech in Iran. Since Meng effectively concealed the relationship between Skycom Tech and Huawei, HSBC was tricked into granting the huge amounts of money to the two companies. The fact that Skytech is based in Iran further complicated the case due to the US sanctions on Iran which restricts financial activities connected to Iran’s economy. 

Meng’s return was celebrated in China as she landed at the Shenzhen Baoan Airport. She said: “"I'm finally back home! After more than a thousand days of suffering, I finally returned to the embrace of my motherland. The waiting in a foreign country was full of suffering. I was speechless the moment my feet touched Chinese soil."

References
“China's foreign ministry speaks on Meng Wanzhou's return - Xinhua (news.cn), Xinhua Net, 25 September 2021”

“Meng Wanzhou free to return to China after cutting plea deal with U.S. Justice Department - The Globe and Mail, The Globe and Mail, 24 September 2021”
 

“Meng Wanzhou admits concealing Huawei dealings with Iran; deal frees her to return to China - The Washington Post, The Washington Post, 25 September”

“‘If faith has a color, it must be China red’: Patriotism prevails as Meng Wanzhou arrives on home soil - Global Times, Global Times, 25 September 2021”


IN BRIEF
by Juan Mary Joseph and Keerthana Nambiar 

INTERNAL
The crypto exchange halts after Beijing widens the ban
On 25 September, Bloomberg reported on the halt in new registrations after China widened the ban on the crypto-exchanges. This is the after People’s Bank Of China declared that all crypto-related transactions will be considered illicit activities. Huobi, China's largest Bitcoin exchange ceased new registrations for domestic users. (Crypto exchange stops taking China users as Beijing widens ban, Bloomberg, 25 September 2021)

China regulating cartoon producers on unhealthy content
On 24 September, National Radio and Television Administration posted a notice that said children and young people were the main audiences for cartoons, therefore agencies need to broadcast content that "upholds truth, goodness, and beauty". Beijing has stepped up its efforts to regulate its entertainment industry claiming to clamp down on unhealthy, vulgar, and pornographic content. (China urges cartoon producers to resist 'unhealthy' content, Reuters, 24 September 2021)

Indonesia’s railway project with China raises concerns
On 25 September, South China Morning Post reported on the new Indonesia railway plan which involves China and Japan. In 2019, Japan was granted the project to build a semi-high speed rail line connecting capital Jakarta to Surabaya in East Java. Last year, Beijing was granted another railway project connecting capital Jakarta to Surabaya in East Java. The inclusion of China in another multibillion-dollar infrastructure project has raised concerns and extreme caution regarding the feasibility of the issue. ( Indonesia’s plan to build mega railway with China and Japan raises debt trap fears, South China Morning Post, 25 September 2021)

Bank of China will stop financing new coal mining and power projects 
On 24 September, the Bank of China declared that they would not be financing for new coal mines and power projects outside China including Taiwan, Hong Kong, and Macau. The announcement was made after President Xi Jinping’s pledge China would not build any new coal-fired power projects abroad. (Bank of China to stop financing new coal mining, power projects overseas from Q4, Reuters, 24 September 2021)

REGIONAL
China warns Taiwan over the CPTPP application
On 23 September, Chinese  Foreign Ministry Spokesperson Zhao Lijian said that China opposes official exchanges between any country and Taiwan.  "There's only one China in the world and the Taiwan region is an inseparable part of China", stressed Zhao. This is in consequence of Taiwan's application to join the Comprehensive  and Progressive Agreement for Trans-Pacific Partnership (CPTPP). (Taiwan DPP blasted over using CPTPP bid to seek secession , Global Times, 24 September 2021)

INTERNATIONAL
65 Countries oppose the interference of other countries in Chinese matters
On 24 September, Pakistan delivered a joint statement at the United Nations Human Rights Council on behalf of 65 countries opposing interference of external forces in China's internal matters. The 48th session of UNHRC stressed the importance of  "respecting the sovereignty, independence and territorial integrity of states and non-interference in the internal affairs. The statement specifies that issues related to Hong Kong, Xinjiang, and Tibet are China's internal affairs that "brook no interference by any external forces". (65 countries oppose interference in China's internal affairs under pretext of human rights , Xinhuanet, 25 September 2021)

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