Daily Briefs


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21 February 2024, Wednesday | Vol.1 No. 15 & 16

‘China needs to be more active in debt relief’, World Bank

| Chinese Coast Guard intercepts Taiwanese tourist boat | | 3,058 South Korean doctor’s trainee doctors resign |

CHINA READER DAILY WIRE

INTERNAL
CCP attempts to influence and manipulate Taiwanese youth, Financial Times

On 21 February, according to an editorial in the Financial Times titled “China’s Communist cadres woo Taiwan with youth trips and video apps,” by Kathrin Hille, CCP’s United Front Work Department promoted trips among young Taiwanese at grassroots levels to foster Chinese patriotism and unification ideology. The United Front has ramped up its efforts after the electoral victory of Lai Ching-te, who won the third term for Taiwan’s DPP. Taiwanese government officials warned of the CCP’s manipulation tactics to marginalize the government in the country. Hille noted that with Taiwan’s opening of movement of its citizens to China in the late 1980s, the United Front cadres have been working to influence the Taiwanese people against the DPP. (Kathrin Hille, “China’s Communist cadres woo Taiwan with youth trips and video apps,” Financial Times, 21 February 2024)

Revival of Mao-era reserve military units, Opinion  
On 20 February, according to an opinion in the Financial Times titled “Chinese companies revive Mao Zedong-era militias,” by Edward White, Many Chinese state-owned enterprises (SOEs) started setting up in-house reserve units belonging to the legacy of the Mao Zedong era known as People’s Armed Forces Departments (PAFD). The department recruits at the village and county levels and performs civil defence activities. Timothy Heath, an international defence researcher at the Rand Corporation, said creating these new units indicates the risk of growing social instability as China’s economy faces a prolonged slowdown. James Char, the expert from RSIS, noted that the rise of PAFDs is due to the “CCP party-state stressing ‘security’ over ‘development’,” which relates to Xi’s second term since 2017. Hath further said that the rise of PAFDs was surprising as ordinary Chinese citizens had little interest in the Maoist era reforms. (Edward White, “Chinese companies revive Mao Zedong-era militias,” Financial Times, 20 February 2024)

Chinese LGBTQ community faces government repression, Opinion
On 20 February, according to an opinion in Nikkei Asia titled “China LGBTQ community hangs tough in dissent amid repression,” by Pak Yiu, Jin Xing, the country’s well-known transgender celebrity, was accused of "poisoning children and destroying the traditions of marriage,” after the photos and videos of her event got viral across Chinese social media. Before transitioning, Jin was a former star of the People's Liberation Army's dance corps. According to Yiu, Homosexuality was decriminalized in China in 1997, but discrimination against gay and transgender people is not a criminal offence. According to the China Dissent Monitor, it is estimated that the LGBTQ population comprises around 80 million in China. The data also reports 18 dissents in the second half of 2023 and is showing resilience in raising awareness for safe spaces in the community. Police often cite the importance of protecting the country’s stability and national security as the main reasons while interrogating LGBTQ activists. (Pak Yiu, “China LGBTQ community hangs tough in dissent amid repression,” Nikkei Asia, 20 February 2024)

SCIENCE & TECHNOLOGY
China uses advanced tech to control global opinion, USCC

On 20 February, according to a report published by the bipartisan U.S.-China Economic and Security Review Commission (USCC), titled “Censorship Practices of the People's Republic of China," China is attempting to control global opinion on Taiwan, Hong Kong, and others using advanced technology. The report says that under Xi Jinping, China has massively expanded the censorship apparatus, thus enabling the country to strengthen its control over the internet content, which is deemed to be sensitive by the party, such as human rights issues in Xinjiang and Tibet. The report also mentions the development and deployment of advanced AI and big data analysis technologies for online content monitoring. The report highlights the dangers of China’s manipulation of foreign audiences and its negative impact on the global information commons. It also warns about Chinese censorship of Taiwan, Hong Kong, and Xinjiang, posing concerns amongst the US national security. It recommends that the US government work alongside the private sector to tackle PRC’s disinformation campaigns. (Tomoko Ashizuka, “China building up tech for 'censorship apparatus,' U.S. report says,” Nikkei Asia, 20 February 2024)

China ramps up clean energy production in its deserts
On 20 February, according to an editorial in the South China Morning Post titled “China builds up electric power in Gobi and western deserts equal to half US capacity,” by Stephen Chen, China boosted its clean energy production and transmission network in Gobi and other north-western deserts. The total combined production in Gobi and other north-western deserts is estimated to be 600GW, half of the US’s combined energy production is of 1,100 GW. The energy facilities in the deserts consist of wind and solar energy. Chen outlined that the North-western region powers 60 per cent of China’s solar energy and one-third of its wind power. At present, the installed capacity of renewable energy in the region has reached 230GW, with half of it transmitted to power the densely populated eastern coastal provinces. According to Professor Ma Xiaowei, China’s northwest power grid has overtaken the EU in core energy utilization indicators. Also, Chen stated that China has incorporated AI to predict power generation ten days in advance using many sensor data with greater prediction accuracy. (Stephen Chen, “China builds up electric power in Gobi and western deserts equal to half US capacity,” South China Morning Post, 20 February 2024)

ECONOMY
China’s new financial regulator vows to restore investor confidence

On 21 February, according to an article published by People’s Daily, CCP’s newly created Central Financial Commission (CFC) said that China will benchmark its financial policies with global standards to make them more transparent, stable, and predictable. This is done to revive investor confidence during the stock meltdown. The article focused on the CGC’s commitment to making China a financial superpower. This comes after foreign investors are worried about China’s policy choices. According to the State Administration of Foreign Exchange data, direct investment liabilities increased by USD33 billion in 2023 compared to the previous year, which resulted in an 82 per cent drop year on year since 1993. China looks to manage the financial risk as part of its future development, which is currently facing multiple challenges in the form of inflation, corruption, debt, and so on. (Mandy Zuo, “China’s new financial regulator pledges transparency to bring investors back from the brink,” South China Morning Post, 21 February 2024)

China needs to be more active in debt relief, the World Bank official
On 21 February, a former deputy chief economist of the World Bank, Ayhan Kose, said that Beijing needs to be more proactive in its debt relief efforts towards the distressed countries and end the “silent crisis.” Kose also noted that China needs to take more responsibility for creating a post-pandemic debt relief structure while becoming a major creditor country. The World Bank and IMF are increasingly concerned about the growing debt crisis among low-income countries, with 11 in distress and 28 at high risk of default. Kose added that 40 per cent of the low-income countries would have lower per capita income by the end of 2024, and there is a need for the global community to make the Common Framework work. So far, four countries have applied for the Common Framework, a system launched by G20 in 2020, in which only two countries, Chad and Zambia, have reached an agreement. (Larry Elliott, “China needs to do more on ‘silent crisis’ of debt, says World Bank official,” The Guardian, 21 February 2024)

China risks FDI with its strict policies
On 21 February, according to an editorial in Nikkei Asia titled “China should not underestimate impact of inward FDI plunge,” the government data revealed that total FDI into China amounted to USD33 billion in 2023, which is 80 per cent lower than in 2022. According to the editorial, the decline in FDI has led to a decrease in new and existing factories' construction and operational units. Despite the real estate slump and deflationary trends, the Xi-led government failed to tackle the crisis. Also, foreign investors are hesitant to invest further in China due to the ongoing US restrictions on China, especially on semiconductors. Furthermore, China’s anti-spying law worries foreign investors about detention without any explanation. The editorial highlights Xi’s growing priority to strengthen the CCP’s power rather than strengthening the existing struggling economy. (“China should not underestimate impact of inward FDI plunge,” Nikkei Asia, 21 February 2024)

New reforms to boost nations’ modernization drive, Xi Jinping
On 19 February, Chinese President Xi Jinping mentioned the need to focus more on tackling the problems hindering the nations’ modernization efforts. His remarks are seen as a preparation for the upcoming 20th Central Committee’s third plenum focused on reform. State media Xinhua reported that the CCP’s focus is to promote reforms for modernization in Chinese style and to address the institutional obstacles while facing the challenges. Alex Ma, an associate professor of public administration at Peking University, said “How to restore confidence is one key aspect to watch as Beijing cooks up new reform initiatives and implementation plans,” while promising to resolve the problems. Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, said that China needs to implement real reforms soon to keep government intervention away from the functioning of the private sector and amend impulsive enforcement. (Frank Chen, “China’s Xi Jinping hypes up obstacle-crushing economic reforms as expectations for third plenum reach fever pitch,” South China Morning Post, 20 February 2024)

CHINA & TAIWAN
Chinese Coast Guard intercepts Taiwanese tourist boat

On 19 February, the Chinese Coast Guard (CCG) boarded a Taiwanese tourist ferry amid the surging tensions between the two sides. The Taiwanese ferry King Xia carried 11 crew and 23 passengers on a tour near Kinmen’s main island and was intercepted by two Chinese Coast Guard patrol boats. Taiwan’s Coast Guard Authority (CGA) said that six officers from CCG boarded the ferry and inspected the crew documents before returning to their boats. Later, they were escorted by Taiwan’s CGA. Kinmen Island is a Taiwanese territory very close to the Chinese mainland. Kuan Bi-ling, head of Taiwan’s Ocean Affairs Council, said the actions of the Chinese coast guard had “triggered panic” among Taiwanese people. The incident took place amid tensions from a Chinese fishing boat being chased by Taiwanese CGA capsized, and two out of four fishermen died. (Helen Davidson, “China coast guard boards Taiwan tourist boat in escalation of tensions,” The Guardian, 20 February 2024)

Taiwan denies increased military deployments on its offshore islands
On 21 February, Taiwan’s defence ministry said it had not deployed any military on its frontline islands close to China amid tensions with Beijing. This takes place amid the death of two Chinese nationals while fleeing away from the Taiwanese Coast Guard near Kinmen Island. Taiwan Defense Ministry intelligence officer Huang Ming-chieh said there was “nothing abnormal” in China’s military movement around Taiwan. Lee Chang-fu, deputy head of the ministry’s joint operations planning department, said there has not been any increase in the deployment of troops on its offshore islands. Kinmen is very close to the Chinese cities of Xiamen and Quanzhou and has been under the control of Taipei since the Republic of China fled to Taiwan in 1949 after losing a civil war with Mao Zedong’s communists. (“Taiwan says it has not stepped up military deployments on frontline islands,” The Straits Times, 21 February 2024)

CHINA & EAST ASIA
China reaffirms its stance on Fukushima water release

On 20 February, the Japanese new ambassador to China Kenji Kanasugi met with a few Chinese ministers and was informed that Japan should take responsibility for the Fukushima nuclear plant release situation. From the Chinese Ministry of Ecology and Environment, Huang Runqiu reaffirmed their view on the Fukushima release. Hunag said that Japan should dispose of the water that is contaminated responsibly and should also cooperate with the stakeholders. Both sides also expressed their willingness to promote Sino-Japan relations with green and low carbon emission goals. Since the release, China has staunchly opposed the contaminated water release of Fukushima even after Japan’s assurance of otherwise. (Liu Zhen, “China affirms stance on Fukushima nuclear wastewater release in rare ministerial meeting with Japan’s new envoy,” South China Morning Post, 20 February 2024 )

CHINA & SOUTHEAST ASIA
PLA monitors the US-Philippines joint air patrol

On 19 February, the People’s Liberation Army (PLA)’s Southern Theatre Command dispatched its naval and air forces to monitor the US-Philippines joint air patrol on the disputed waters of the South China Sea. The drills were conducted near the western Philippines as part of their “maritime cooperative activity.” The PLA command said that the Philippines was heightening tensions in the disputed waters by bringing in the non-regional country. The Philippine Air Force dispatched their 3 FA-50 combat aircraft, and the US Pacific Air Force sent a B-52 bomber to patrol the area. Both sides accuse each other of illegal entry into their exclusive economic zone. Recently, the Philippines accused China of cyanide fishing and intentional destruction of the disputed Scarborough Shoal. (Hayley Wong, “South China Sea: PLA sends forces to monitor US-Philippines air patrols over disputed waters,” South China Morning Post, 20 February 2024)

CHINA & THE MIDDLE EAST
Dip in Oil prices due to tensions in the Middle East

On 20 February, Reuters reported the price of oil declined a little due to the rising tensions in the Middle East while China works towards recovering its economy. Companies such as Brent futures fell 0.35 per cent to 88.27 USD a barrel, U.S. West Texas Intermediate fell 0.38 per cent to 78.08 USD a barrel. The conflict in the Red Sea and Bab al-Mandab by the Houthis since 16 February have exacerbated geopolitical tensions in the Middle East and in turn, affected the oil supply. Lately, China revealed the largest fall in the benchmark mortgage rate since the reference rate was instituted in 2019. ANZ banking group analysts said that the signs of demand in China will also be boosted. (Paul Carsten, “Oil hovers near 3-week high on Middle East tensions, China demand,” Reuters, 20 February 2024)

CHINA & AFRICA
African Union ratified a ban on donkey trade, a blow to China’s ‘ejiao’ medicine, says SCMP
On 18 February, the Heads of State of the African Union ratified the ban on the donkey skin trade for 15 years which will affect the production of China’s traditional medicine, ‘ejiao’. The Animal welfare organisations in Africa marked the decision as a ‘historic moment’. In November, a specialised technical committee of the African Union had proposed the ban, which was ratified at the 37th ordinary session of the AU Assembly in Addis Ababa. Ejiao is made from gelatin extracted from the hides of donkeys, which enhances vigour, enriches the blood and carries anti-ageing properties. Over 5 million donkeys are slaughtered each year to meet Chinese demand; only 2 million are provided locally, and the rest are imported from South America and Africa. (Jevans Nyabiage, “African donkey trade ban to slash China’s supply of traditional medicine ejiao,” South China Morning Post, 20 February 2024)

CHINA & THE AMERICAS
China criticises the US veto on the immediate cease-fire resolution of the Israel-Gaza war

On 21 February, BBC News reported on China criticizing the US for vetoing the UN Security Council resolution looking for an immediate ceasefire in the Israel-Gaza war. China stated that the move sent the wrong message and encouraged the continued slaughter of innocent civilians. The resolution was proposed by Algeria where the US called the proposal jeopardises the talks to end the war. On the other hand, the US proposed its solution where they called for a temporary ceasefire and demanded Israel to refrain from invading Rafah. The resolution was backed by 13 UNSC member states, vetoed by the US and abstained by the UK. Chinese UN ambassador Zhang Jun said: “The spill-over of the conflict is destabilising the entire Middle East region leading to rising risk of a wider war.” The Algerian diplomat Amar Bendjama also expressed his disappointment and said that the UN has yet again failed and asked them to examine their conscience as history will judge them. The US ambassador to the UN Linda Thomas-Greenfield said that this is not the most appropriate time for a ceasefire and negotiations between Israel and Hamas are ongoing. The UK ambassador for the UN Barbara Woodward believes that the resolution can be counterproductive as it may make the ceasefire less likely. (“Israel Gaza: China condemns US veto of call for immediate ceasefire at UN,” BBC News, 21 February 2024)

CHINA & EUROPE
Turkey detains six on espionage charges against Uyghurs

On 20 February, Turkey's state-run Anadolu Agency reported that their police detained six individuals in Istanbul on charges of spying on prominent Uyghurs. The accused were detained on espionage charges on Uyghur-related institutions and were allegedly accused of passing on this information to Chinese intelligence. The specifications of the arrest are still not outlined as the nationalities are said to be foreign. Turkey has the largest population of Uyghurs outside of Central Asia with a population of to be of 5,000. The communities share ethnic and religious ties with the Uyghurs in China, this has made the Turkish authorities sympathetic to their cause and the discrimination faced by the community in China. (“Turkey detains 6 for allegedly spying on Uyghurs for China,” Nikkie Asia, 20 February 2024)

Chinese FM urges French President Macron to further encourage China-EU ties
On 20 February, Chinse Foreign Minister Wang Yi told French President Emmanuel Macron that France would continue to a pivotal role in China-EU relations. Wang Yi met with Macron at the Elysee Palace in Paris. This year both countries marked the 60 years relationship between China and France, where Wang Yi called for both countries to chart for the coming 60 years of relations. Wang also stated that China would open its market to all countries and that France will also keep the business environment as just and fair. (“China urges France to help develop China-EU ties as Wang Yi meets Macron,” CGTN, 21 February 2024)

EU plans to blacklist Chinese firms on alleged aid to circumvent Russian sanctions
On 20 February, according to an opinion in the South China Morning Post titled “China firms in EU firing line as Hungary yields to anti-Russia sanctions package,” by Finbarr Bermingham, the European Union could now blacklist Chinese firms and ban them from trading with EU companies for allegedly circumventing the sanctions for Russia. This will be part of the 13th package of sanctions, which the ambassadors of the EU will finalise at a meeting on 21 February. Three mainland China-based companies such as Guangzhou Ausay Technology Co Limited, Shenzhen Biguang Trading Co Limited, Yilufa Electronics Limited and one Hong Kong-based company RG Solutions Limited are planned to be blacklisted. (Finbarr Bermingham, “China firms in EU firing line as Hungary yields to anti-Russia sanctions package,” South China Morning Post, 20 February 2024)
 



EAST ASIA & THE PACIFIC READER

EAST ASIA
The US and EU components found in recovered North Korean missiles, says CAR

On 20 February, Conflict Armament Research (CAR) reported that the remains of North Korean ballistic missiles recovered from Ukraine contained parts of US and European technology. They found that North Korea was able to obtain Western parts for its missiles despite the sanctions imposed by the West. CAR informed that: “ballistic missile produced by the Democratic People’s Republic of Korea (North Korea) and recovered in Ukraine includes more than 290 non-domestic electronic components.” It is estimated that a total of 75 per cent of parts recovered from the missiles belonged to the US and 16 per cent were from the European Union. They said: “Half the components documented bore identifiable date codes, and more than 75 per cent of those codes indicated production between 2021 and 2023. Based on those production dates, CAR concludes that the missile recovered in Kharkiv could not have been assembled before March 2023.” (“US, European parts found in North Korean missile in Ukraine: Report,” The Straits Times, 21 February 2023)

Task force to monitor AI-generated content ahead of South Korean general elections
On 19 February, The South Korean Constitutional Agency overseeing the Election Administration declared that it established a task force for fighting AI-generated false content and had successfully busted a total of 129 deepfakes that violated the laws on elections between 29 January and 16 February. In December, the National Assembly decided to revise the law by adding a law to bar the usage of deep fakes in political campaigns which came into effect on 29 January, which can lead the violators to jail for seven years or a fine of 50 million won (50,000 SGD). (“Election watchdog busts political deepfakes ahead of South Korea’s April general election,” The Straits Times, 20 February 2024)

3,058 South Korean doctor’s trainee doctors resign
On 20 February, hundreds of trainee doctors participated in a protest where they walked off their jobs. This comes as the South Korean Health Ministry announced that 6,415 of the trainee doctors out of 13,000 have applied for resignation. The ministry informed that they would cater for the emergency of shortage of personnel by providing transport facilities to help the transfer to other hospitals. The protest came in light of the government’s plans to increase the medical student’s admission from 3,058 to 5,000 by next year. The measures were intended to cater to the shortage of medical professionals, especially in rural areas. The protestors argue that they should have been consulted by the government and that this initiative would lead to an influx of poorly trained doctors. (“South Korean trainee doctors walk off job over medical student increase,” Nikkie Asia, 20 February 2024)

THE PACIFIC
Australia to boost its defence spendings
On 20 February, the Australian Government Department of Defence announced that they would boost the defence spending to USD 11.1 billion from USD 9.8 billion over the next decade. The boost comes with a vision to procure six warships and eleven frigates aiming to further their combat-ready fleets. The Oceania country was increasingly getting worried about the Chinese presence in the Pacific and the geopolitical conflicts in the regions. Defence Minister Richard Marles informed that the government plans to eventually increase the navy capabilities and said: “What is critically important to understand is that as we look forward, with an uncertain world in terms of great power contest, we’ll have a dramatically different capability in the mid-2030s to what we have now.” The Australian government's defence strategy is based on the concerns over the competition between the US a China affecting the Pacific region leading to potential conflict. (“Australia boosts defence spending, aims to double warships,” The Straits Times, 20 February 2024)

 

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