LAC Talks - Blinken Visit - Tech Shake-up - Politburo on Economy - Sherman-Wang Talks - COVID Outbreak - Taliban in Tianjin - Xi Thought Series - Foreign Journalists - Media Ties with Russia
Dear Subscribers,
I have two quick bits to share this week before you can get to the newsletter.
First, it was my pleasure to appear on the Pekingology podcast hosted by CSIS Freeman Chair in China Studies Jude Blanchette. We talked about the People’s Daily and the work I’ve been doing with my weekday tracker.
Second, I recently did a talk on China’s perceptions and policies with regard to the Indo-Pacific for the Indian School of Business. I thought the slide-set that I used there might be useful to share with you as a conversation starter on the issue. Please do write to me with your perspectives on this.
I. LAC Talks, Tibet & the Blinken Visit
India and China held the 12th round of Corps Commander-level talks on Saturday. Indian media reports tell us that the talks lasted for just nine hours, the shortest corps commander-level parleys since the stand-off began in May. Prior to the meeting, Indian media had reported the possibility of an agreement for disengagement from Gogra and Hot Springs.
The Hindu’s Dinakar Peri reported on Friday that “further friction areas remain at Demchok and Depsang Plains, which will be taken up once disengagement is complete at Patrolling Points 15 and 17A in Gogra and Hot Springs. Once the disengagement from all friction areas is complete, the de-escalation of the massive troop build- up along the Line of Actual Control (LAC) in Eastern Ladakh would be discussed, after which both sides will work out new guidelines for patrolling in these areas.” The second bit is interesting because it implies that the PLA is agreeing to the Indian view of disengagement followed by de-escalation. Keep this in mind as you read further. Peri also reported that a “round of Major General level talk is also scheduled to be held once the 12th round of talks is over.”
Anyway, with the talks done, we still don’t have any official reaction/statement from either side. ThePrint’s Snehesh Alex Philip reports, citing an unidentified source that, “We may expect forward movement,” in Gogra and Hot Springs. Here’s an excerpt from the report.
“Another source said that a ‘graduated disengagement’ is likely to take place. A formal joint statement is expected to be issued by India Monday or Tuesday, sources said. It is learnt that during the talks, which was led by 14 Corps Commander Lt Gen PGK Menon and held on the eve of the People’s Liberation Army (PLA) Day, India stressed that disengagement was necessary before the two countries opt for de-escalation. This was contrary to what China had said during the last corps commander-level talks held in May. Sources indicated that the Chinese were more receptive to India’s views this time around unlike the last time when they refused.”
Also this is very important from the report: “The reason why forward movement was expected in the Gogra and Hot Springs area since the disengagement in southern and northern banks of Pangong Tso in February is because the Chinese had already agreed to do so on two occasions last year. The first agreement was reached during the first corps commander-level officers meeting on 6 June 2020 but it culminated in the 15 June Galwan Valley clash as the Chinese refused to fulfil their part of the agreement. Following the clash, another agreement was reached and Chinese did withdraw certain troops from the Gogra and Hot Springs areas. They, however, did not complete the process.”
Amid all this, do note these two reports before there is any public celebration in the media with regard to possible disengagement in Gogra and Hot Springs:
Chinese Erect Tents in Ladakh’s Demchok Despite Being Asked to Go Back: Report
‘Patrol blocking in Depsang by both sides will take time to resolve’
Next, let’s look at US Secretary of State Antony Blinken’s visit to India. I highly recommend this episode of Worldview by Suhasini Haidar for a round-up and analysis of the visit. I am going to focus on some specifics only below.
First, while in Delhi Blinken met briefly with Geshe Dorji Damdul, who presented him with a scarf from the Dalai Lama. Geshe Dorji Damdul serves as a representative of the Central Tibetan Administration (CTA). He was among the invitees for Blinken’s chat with civil society organization representatives in the Indian capital.
After the meeting, Dorji told the Indian media that India and the US should work together to stop “Chinese expansionism.” In Beijing, at the MoFA press briefing, Zhao Lijian was asked about Blinken meeting the Dalai Lama’s representatives in Delhi. He said:
“Tibetan affairs are purely China's internal affairs that allow no foreign interference. The 14th Dalai Lama is by no means just a religious personnel, but rather a political exile who has long been engaging in anti-China separatist activities and attempting to split Tibet from China. China firmly opposes any form of contact between foreign officials and the Dalai Lama. Any form of contact between the US side and the Dalai clique is a violation of the US commitment to acknowledging Tibet being part of China, to not supporting ‘Tibetan Independence’, and to not supporting attempts to split China. The US side should honor its commitment, stop meddling in China's internal affairs under the pretext of Tibetan affairs, and offer no support to the ‘Tibetan independence’ forces to engage in anti-China separatist activities. China will take all necessary measures to defend its own interests.”
It’s interesting that there was no comment by the Chinese side on the Indian Prime Minister recently publicly wishing the Dalai Lama on his birthday. But on Blinken’s meeting, there was an angry response.
Also, some other noteworthy points from the Blinken-Jaishankar press conference that I’d like to highlight. First with Jaishankar’s comments:
He said they talked about “regional concerns, multilateral institutions, and global issues. The expanding Indian footprint, be it in Africa, Southeast Asia, Caribbean, or the South Pacific, has naturally broadened our shared agenda. Among the many issues that we looked at, I would specifically note Afghanistan, the Indo-Pacific, and the Gulf.”
He warned that Afghanistan’s “independence and sovereignty will only be ensured if it is free from malign influences.”
“Under the aegis of the Quad framework, we are engaged on maritime security, HADR, counterterrorism, connectivity on infrastructure, cyber and digital concerns, COVID-19 response, climate action, education, and resilient and reliable supply chains.” — Significant agenda that is beyond defense ties.
He also mentioned “the importance of observing international law and rules and norms, including UNCLOS.”
He mentioned the Gulf, ASEAN, UNSC, Myanmar, and climate change, adding “such conversations are not only essential in a democratic, diverse, and multipolar world but actually affirm that we have entered a new era.”
Blinken began with democracy, diversity and climate change.
“We believe this partnership will be critical for delivering stability and prosperity in the Indo-Pacific region and beyond, and for showing the world how democracies can deliver for their people.”
USG will send an additional $25 million to support vaccination efforts across India.
He talked about the Quad, Afghanistan, the pandemic, climate change, and “shared values.”
“We share a vision – India and the United States – of a free, open, secure, and prosperous Indo-Pacific…we’ll continue to advance peace, security, and development worldwide and to work in international organizations to strengthen a rules-based international order.”
In the Q&A, they emphasised convergences. Jaishankar said: “I would say there was much more convergence, and there would be some issues on where we are coming from different places with different interests and backgrounds.”
Blinken then on the Quad:
“What the Quad is, is actually quite simple, but as important as it is simple. For likeminded countries – India, the United States, Japan, Australia – coming together to work collectively on some of the most important issues of our time that are going to have a real impact on the lives of our people, and to do it in a way that hopefully ensures a free and open Indo-Pacific region and peace, security, and prosperity for the people of that region. So what we’re doing together is coordinating, pooling our resources, pooling our thinking, and actively collaborating on a whole variety of issues that have an impact on the lives of our people…What the Quad is not is a military alliance; it is not that.”
Jaishankar added to this referring to the BRICS grouping, drawing parallels with the Quad.
Apart from this, I think this interview that Blinken had with Times of India’s Indrani Bagchi is really interesting. Some blunt questions there. I’m reproducing two key bits below:
QUESTION: And if you would tell us, for Indian readers, because we are – we know the China challenge. We’ve shed blood. What – how would you describe the challenge of China to the world, to West and India —
SECRETARY BLINKEN: For the United States, in a way as for India, it’s both one of the most consequential and most complicated relationships that we have. I think we’ve seen China – unfortunately, the government in Beijing act more repressively at home and more aggressively abroad in recent years. That poses a challenge for all of us. As we look at it, we see a relationship that is in parts adversarial, in parts competitive, and also in parts cooperative. And I think what we’ve found is that whether it’s adversarial, whether it’s competitive, whether it’s cooperative, the most effective way to engage China is working with other countries that are similarly situated and that face similar challenges. India, of course, is a strong partner for the United States.
QUESTION: Do you think the era of cooperation with China may be over
SECRETARY BLINKEN: No. As I said, I think the relationship has different elements in it. Cooperation remains one of them because on some issues, it’s profoundly in our mutual interest to cooperate, and irrespective of the competition, irrespective of the adversarial nature of parts of the relationship, that’s – those interests remain. Climate may be the best example. That’s an issue that is important to all of us.
Also note this bit from the interview with CNN-News18’s Zakka Jacob:
QUESTION: So how do you respond to the Chinese criticism that the only purpose of the Quad is to target China or to contain China?
SECRETARY BLINKEN: Well, I don’t think that being able to finance, produce, and distribute tens of millions, hundreds of millions of more vaccines is targeting China except in the most positive way. It’s trying to help the region and help the world get over COVID-19. And virtually all of the work that we’re doing together is to, in one way or another, improve the lives of people in the region and make sure that it remains free and open.
QUESTION: When you say it’s not a military alliance, it’s not traditionally like your NATO Allies or your other treaty allies whereby if, God forbid, one of the four were to be physically or in some form attacked, it doesn’t mean that the others are to rush in and protect it?
SECRETARY BLINKEN: That’s correct.
Also Read:
China Is Using Tibetans as Agents of Empire in the Himalayas
China’s customs officials seize maps showing Arunachal Pradesh as part of India
India rejects reference to Kashmir in Pakistan-China press statement
Indian Army installs cameras, sensors to track Chinese movement in eastern Ladakh
II. Tech Sector Shake-Up
Let us begin with the weekly State Council meeting, which this week talked about improved management of central fiscal research expenditure to give researchers more say in fund use. This report provides clarity on what’s being done with regard to research funding. The measures include:
Cutting the nine-plus items subject to budget accounting to three.
The power over budget reassignment regarding equipment costs and others will all be delegated to institutes undertaking research projects.
Surplus funds after a project related to basic research and talent-related programs can be retained by institutes.
Funds should be channeled to project undertakers within 30 days upon the signing of project contracts.
After a project is complete, project undertakers may keep the surplus project funding for direct research expenditures.
Social insurance subsidies and housing provident funds paid by research institutes for personnel hired in research projects will be included in labor service expenses. Cash rewards for the commercialization of research outcomes will not be limited by the total amount of performance-based salary in the institute concerned.
Lead scientists will be given the discretion to decide what to study, how to build teams and how to use funds in line with the priorities and scopes on the country’s agenda.
Except for special provisions, research outcomes and intellectual property generated with budgetary funding support will be obtained by new-type R&D institutes in accordance with law.
Financial assistants can be hired to ease the burden of researchers so that they can focus on their work.
In addition, the Ministry of Science and Technology spoke to the press this week, talking about China’s technological advancement since the 18th Party Congress. You can read the full report breakdown here, but one of the key data points is this. Since late 2012, basic research investment has grown rapidly, with an average annual growth rate of 16.9%, now accounting for more than 6% of total R&D investment.
Also note that on Monday, the Ministry of Industry and Information Technology announced a six-month-long campaign to regulate the internet industry. Caixin reports that the campaign will target eight areas, including disturbing market order, violating users’ rights and interests, and endangering data security. The report says that authorities will clamp down on 22 “specific scenarios” such as disrupting the operations of rival companies, using misleading pop-ups, improper collection of personal data and breaches of internet access rules. As part of the campaign, companies will be required to undergo “self-rectification.” Soon after this announcement, reports informed of 25 technology companies being asked to carry out internal inspections. Caixin reports that the MIIT ordered the companies to address eight types of problematic behaviour including pop-ups, data collection and storage, and the blocking of external links. At the earlier session, the businesses were asked to ensure that they establish data security management systems and appoint personnel responsible for data security, as well as strengthen oversight of how important information is exported.
Another important development that is worth noting is Tencent’s Tuesday announcement that it had temporarily suspended the registration of new users in mainland China as it undergoes a technical upgrade “to align with relevant laws and regulations.” The announcement obviously hit Tencent’s share value. Reuters quotes Beijing-based tech consultant Zhou Zhanggui as saying that investors were over-reacting to the “rectification” of Chinese tech companies. “The suspension of new user registrations on WeChat has no substantial impact on Tencent in the short term.”
Anyway, already there is some evident fallout of the Chinese government’s crackdown and reshaping of the consumer technology sector. For instance, WSJ reports that “American investors are asking whether China Inc. is still worth the risk following a widening series of regulatory crackdowns that have wiped some $400 billion off the value of U.S.-listed Chinese companies…so far this month, China ADRs have lost more than $407 billion dollars in aggregate, according to FactSet, more than double their losses in March 2020 when the U.S. market plummeted at the beginning of the Covid-19 pandemic.” But if you read through the specific comments in the report from different fund managers, brokers and analysts, they don’t seem too fazed by what’s happened so far.
This is a useful takeaway from the report:
“Many U.S. investors remain bullish on China’s long-term prospects despite what skeptics say is the difficulty of anticipating Chinese President Xi Jinping’s moves. They say they can’t afford to miss out on the growth of an economy some investors think is on track last this decade to overtake the U.S. as the world’s biggest. Many on Wall Street think a country so intertwined with global supply chains and the financial markets is, for better or worse, too big to ignore.”
Another important change in the week was the US Securities and Exchange Commission stating that it will require additional disclosures from Chinese companies seeking to sell stock in the US. Bloomberg reports that SEC Chairman Gary Gensler wants (official statement) offshore issuers associated with China-based operating companies, known as companies with variable interest entity (VIE) structures, to “prominently and clearly” disclose that they face uncertainty about future actions by the Chinese government that could significantly affect the operating companies’ financial performance. Just for reference, in VIE structures, a China-based operating company typically establishes an offshore shell company in another jurisdiction, such as the Cayman Islands, to issue stock to public shareholders. That shell company enters into service and other contracts with the China-based operating company, then issues shares on a foreign exchange. Chinese companies are now also required to disclose whether the operating company and its shell company issuer received or were denied permission from Chinese authorities to raise funds on US exchanges and the risks that such approval could be denied or rescinded.
Amid all this, there was an effort by Beijing to calm nerves. We saw two big signals on Wednesday to this effect. First, commentaries in Chinese media sought to soothe nerves. So, there was a front page commentary in the state-owned Securities Times paper, which denied the existence of systemic risks in the A-share market. “The macroeconomy is still in a steady rebound stage, and short-term fluctuations do not change the long-term positive outlook for A-shares…The recent market decline to some extent reflects misinterpretation of policies and a venting of emotion. Economic fundamentals have not changed and the market will stabilise at any moment,” the commentary said. Xinhua News Agency said in an article late Wednesday that recent policies targeting internet platforms and after-school tutoring are aimed at protecting online data security and social welfare rather than outright curtailing those industries. Second, there was also a call that regulators from the China Securities Regulatory Commission held a call with executives from global investors, Wall Street banks and Chinese financial groups on Wednesday night, the Financial Times reported. The report says that there were about 12 attendees, including executives from BlackRock, Fidelity, Goldman Sachs and JPMorgan. The regulators “sought to reassure the groups after China issued an effective ban on the country’s $100bn private tutoring industry at the weekend, which led to concerns of a broader regulatory crackdown on Chinese tech companies listed abroad.”
The Reuters report discussing the call quotes an unidentified participant as saying “this is more to calm the market to isolate the education industry and not to overinterpret it” WSJ’s report on the call says that Fang Xinghai, vice chairman of the China Securities Regulatory Commission, told “those present that China’s recent regulatory crackdowns on companies engaged in private tutoring, online financial services and other sectors are aimed at addressing problems in those industries and helping them grow in a proper manner, the people said. He also said China has no intention to decouple from global markets, and especially from the U.S., the people added.”
But this comment from an unidentified participant in the call from the FT report is worth keeping in mind:
“These policies are not coming from the CSRC, they’re coming from much higher up. It’s clear there will be more to come, that’s obvious to everyone.”
Anyway, the WSJ report also adds that “Wednesday’s private reassurances came a day after Vice Premier Liu He told a gathering of small businesses that China was trying to balance development and security. He said doing so meant protecting competition and consumers, and this would be good for smaller companies—a message some analysts took as showing that China wasn’t trying to crush the private sector.”
On Friday then, we had the China Banking and Insurance Regulatory Commission (CBIRC) saying that (official Chinese) it would fully implement planned measures aimed at ensuring overseas investors are treated no less favourably than their Chinese counterparts and which would cut the number of sectors where foreign investment has been prohibited or restricted.
Amid all of this, there’s been a lot of speculation about what exactly is driving this crackdown on the consumer technology sector. For instance, here’s Santosh Pai arguing that this is about control over data but also about the Party’s relevance to Chinese society in the future: the “party wants to be the sole provider or guarantor of life’s necessities.” Andrew Browne’s piece in Bloomberg argues that the assault on the technology sector “is a grab for control over big data, a strategic asset in China’s showdown with America. Chinese entrepreneurs are expected to get with the program or get out of the way. That means focusing on the next wave of growth—to be led by industrial automation, smart cities and the ‘Internet of Things’—rather than extracting oversized profits from consumers.”
Anyway, I also recommend following this Twitter account. I’ve found a lot to learn from Rui Ma’s views on the Chinese tech ecosystem.
Do also check out Shuli Ren’s Bloomberg piece:
“Does Beijing not care how much money foreign investors have lost? Does the government really want to close China Inc.’s access to the deep pool of global capital? The short answer is, no, the government doesn’t care. But it’s not that simple. Beijing is pursuing other goals: reining in the power of its tech titans and boosting startups; protecting social equality; and making sure the cost of living in cities isn’t so high that families aren’t willing to have children. And Beijing is suspicious of companies that are skilled at raising capital overseas—beyond its watchful eye…Beijing has made great efforts to instill discipline into its marketplace, and it wants to see more hot unicorns list and raise money on the mainland. Yet they continue favoring New York over Shenzhen, Hong Kong over Shanghai. So it’s not that China is antagonistic toward foreign money. It just wants to admonish those who seek loopholes abroad.”
Also Read:
China Spells Out Subjects for Tough Oversight as Education Crackdown Rolls On
Meituan Sheds $60 Billion After China Crackdown Fears Deepen
Loans, taxis, education: what’s next in China’s tech crackdown?
China to supervise platform enterprises, virtual currency trading
Opinion: The Who, What and Why of China’s Regulatory Campaign
III. Politburo Meeting on H2 Priorities, Nanjing Outbreak, Evergrande Crisis & Population Policy
With half the year done, the Politburo met on Friday to “to study and analyze current economic circumstances and make plans for related work for the second half of 2021.” Xinhua tells us that the meeting noted “that the global COVID-19 situation is still evolving and Chinese economy faces an increasingly complex and grave external environment. The domestic economic recovery is still unfirm and unbalanced.”
Caixin has some data on this. It says that among China’s 31 provinces and provincial-level municipalities, 27 reported first half economic results as of July 23. Hubei, the center of China’s Covid-19 outbreak last year, achieved the highest year-over-year growth at 28.5%, triple the 9.1% expansion recorded by the landlocked northwestern province of Qinghai, which was the lowest. Based on a two-year average to iron out the impact of the pandemic, Hubei and the northeastern province of Liaoning had the slowest growth at less than 3% while the island province of Hainan had the highest at 7%, beating the national average of 5.3%. The report adds that the growth trend in total retail sales of consumer goods in each province had a strong correlation with their economic performance. Inner Mongolia, Liaoning and Hubei provinces, with retail sales still below 2019 levels, had the slowest growth, while Hainan, Anhui, Chongqing and Guizhou with more robust consumption recoveries recorded higher growth. The piece quotes Zhang Zhiwei, chief economist at Pinpoint Asset Management Ltd, as saying that Consumption growth across the country was relatively uniform in the past, but the gap between rising consumption rates among provinces expanded last year after the pandemic. Behind this divergence are imbalances in incomes and labor markets.
Anyway, the Politburo meeting outlined goals for H2. These include:
pursuing progress while ensuring stability, and the full, accurate and comprehensive implementation of the new development philosophy.
deepen the supply-side structural reform, accelerate the building of a new development paradigm, and advance China's high-quality development.
maintain consistent, stable and sustainable macro policies
proactive fiscal policy should generate greater effect, while the prudent monetary policy should maintain reasonably ample liquidity and support the continued recovery of small and medium-sized enterprises as well as stressed industries.
keep the renminbi’s exchange rate basically stable at a reasonable and balanced level
tap domestic market potential
support quicker development of the new energy vehicles
carry out targeted campaigns to address "chokepoint" problems as well as develop specialized and innovative small and medium-sized enterprises
stick to the high-level opening-up and unswervingly advance the high-quality development of BRI
put an end to “whirlwind campaigns'“ for carbon reduction and resolutely curbing the pell-mell development of high-energy intensity and highly pollutive projects
defuse risks in key fields and improve the regulation system on firms' overseas listings
stick to the principle of “houses are for living in, not for speculation”
the three-child policy, disaster relief and 2022 Olympics were also mentioned.
While on the population policy, Li Keqiang this week spoke about the need to ease the burdens of maternity, parenting and education to facilitate the implementation of the third-child policy. Li said that the issues related to the population “are of fundamental, holistic, and strategic importance” to China’s development. He wants governments and authorities at all levels to formulate detailed plans and supporting measures to ensure the implementation of the policy. At the same event, Sun Chunlan said that policymakers should aim to “reduce the cost of marriage, childbirth, upbringing and education as a guarantee, break away from ideological positions, policies and regulations, and institutional mechanisms that affect the long-term balanced development of the population…”
Moving on, the Delta variant of COVID-19 finally seems to have led to a large-scale outbreak of infections across China. In fact, this is the worst such spread of the virus across the country since the initial shutdown of Wuhan last year. Global Times reports that cases are being reported from nearly 20 cities across at least six provinces. The current outbreak began in the city of Nanjing, with a flight from Russia identified as the source of infections. Caixin reports that in Wednesday, the Central Commission for Discipline Inspection, the Communist Party’s top anti-corruption watchdog, said ina statement Lukou airport lacked supervision, was poorly managed and failed to implement all the required epidemic prevention and control measures.
Beijing also recorded its first Covid-19 case in nearly six months on Wednesday. CNN reported that concern is also growing over a possible secondary cluster, connected to a popular live show in Zhangjiajie national park in Hunan province. Three confirmed cases in the city of Dalian, Liaoning province, are thought to have visited Nanjing airport before traveling to Zhangjiajie for the live show last week...More than 3,000 spectators watched the live show in close quarters on July 22. The Beijing cases are among those linked to the live show.
If you are interested, you can track the daily national caseload here at the NHC’s website. The number for August 1 is 75 new cases.
Another intriguing development related to COVID-19 in Beijing is about the visit of Zimbabwe’s Vice President Constantino Chiwenga. WSJ reports that hundreds of people were removed from the five-star Legendale Hotel near Tiananmen Square in central Beijing and quarantined after a member of a group staying there Chiwenga tested positive for Covid-19. The case has raised questions in China, a close ally of Zimbabwe, about whether authorities kept information about the infection from the public. The infection hasn’t been listed on the country’s national list of coronavirus cases. Chiwenga “arrived in Beijing by chartered jet on July 23 with four other officials to receive medical treatment for a throat problem, according to officials with the Zimbabwean health ministry. Two members of Mr. Chiwenga’s initial entourage were unable to join the trip after testing positive for Covid-19, the officials said, adding that the vice president and others who traveled with him had received two doses of a vaccine made by China’s Sinopharm.”
Also note this Xinhua report that informs that the central Chinese city of Zhengzhou, which was recently hit by heavy floods, classified one area as high-risk for COVID-19 and three areas as medium-risk on Saturday, all of them are in Erqi District, after one asymptomatic COVID-19 case and several suspicious cases were reported since Friday.
Amid this, there are questions being raised about China’s “zero tolerance” strategy to control the virus. Sha Hua’s piece in WSJ informs that authorities have administered 1.62 billion vaccine doses through Thursday, infections among fully vaccinated people have triggered doubts over the protection offered by Chinese vaccines against the Delta variant, and accelerated calls for booster shots. The article quotes Zhang Wenhong, a prominent public-health expert, talking about the need to adjust its strategy to better coexist with the virus and its risks, rather than to try to completely shut it out and eradicate it. Here’s his exact quote from Caixin:
“There is a growing belief that we will not see the end of the outbreak in the short term, maybe not even in the long term. Most virologists worldwide agree that this is a resident virus and the world will have to learn to coexist with it. The latest outbreak in Nanjing once again reminds us of the ever-present virus. Whether we like it or not, there will always be risks in the future. Each country is trying to find its own answer to the question — how will the world be able to live with the virus. China has already provided a satisfactory answer and after the outbreak in Nanjing, we will certainly be able to learn more. China’s choice will be a coping approach that ensures a shared future for mankind, helps realize the world connectivity and promotes a return to normal life while protecting its citizens from fear of the virus. This is wisdom that China should have.”
My thoughts: I guess it will be worth watching what sort of actions are taken from a discipline and accountability point of view linked to the current outbreak. That should tell us if the central leadership is ready to accept the trade-off of having cases while remaining open. I would be very surprised if we are there yet.
Finally, the troubles continue to compound for embattled property developer Evergrande. Major credit ratings agencies this week downgraded Evergrande. S&P Global Ratings on Monday took the property developer down two notches, from B+ to B-, citing its inability to reduce debt “in an orderly manner.” It added that the firm’s credit rating was dragged down by what S&P believed to be a “severe” decline in profitability at the firm. Then on Wednesday, Fitch Ratings downgraded Evergrande two notches from B to CCC+, saying that the negative developments surrounding Evergrande may weaken investor confidence, further pressuring its liquidity. Along with this, lawsuits are piling up, with creditors taking the developer to court over missed loan payments and other financial disputes. In some cases, the developer’s assets have been frozen by Chinese courts.
Also Read:
IV. Xi Thought Series
The special Q&A series on Xi Jinping Thought continued for this week too in the People’s Daily. Like last week, I am sharing a brief on each of the pieces. But you can read the detailed breakdowns for each in my People’s Daily Tracker.
Monday’s piece told us that what China follows is scientific socialism. To say that “China is engaged in ‘capitalist socialism’, ‘state capitalism’ and ‘new bureaucratic capitalism’ is all wrong,” the author chided. What does scientific socialism mean?
“In terms of the leadership system, the leadership of the CPC is the most essential characteristic of socialism with Chinese characteristics and the greatest advantage of the socialist system with Chinese characteristics. In the state and political system, the people's democratic dictatorship and the people's congress system are implemented; In terms of economic system, we should adhere to the common development of public ownership and multiple ownership systems; we adhere to the distribution of labor as the mainstay and the coexistence of various modes of distribution, along with this we adhere to the implementation of the socialist market economy system; In terms of ideology, we insist on the guiding position of Marxism and cultivate and practice the core socialist values; In terms of the fundamental position, we insist on putting the people at the center, continuously promoting the all-round development of people and realizing the common prosperity of all people; and so on. All these embody the basic principles of scientific socialism in the new historical conditions, and continue the genetic lineage of scientific socialism. If these are lost, it will not be socialism.”
The piece also talks about “the issue of how to view the relationship between the two historical periods before and after the reform and opening up.” It says that “some people treat them as distinct, or juxtapose the two historical periods, or even argue that they negate each other, which is totally wrong.” The author says that while these two periods “had great differences in the ideological guidance, principles and policies, and actual work of socialist development, but the difference does not mean that they are distinct from each other, let alone being fundamentally opposed.” We then get an old Xi quote as saying: “The historical period before reform and opening up must be correctly evaluated. The historical period after reform and opening up cannot be used to negate the historical period before reform and opening up, and the historical period before reform and opening up cannot be used to negate the historical period after reform and opening up.”
Tuesday’s piece talked about the four self-confidences. The big point that it makes is that socialism with Chinese characteristics works for China. In fact, it is “only this road and no other roads can lead China’s progress, enhance the well-being of the people, and realize national rejuvenation.”
Wednesday’s piece talked about advancing China’s “great social revolution.”
“This great social revolution covers an extremely wide range of areas, involving contradictions and problems in economic, political, cultural, social, ecological civilization construction and national defense and military development, Hong Kong, Macao and Taiwan work, diplomatic work, and Party building. There’s a profound readjustment of interests taking place, and it is necessary to break through the barriers of ideology and concepts, as well as to break through the fences of vested interests...The task of breaking through institutional barriers is extremely arduous, and institutional drawbacks and institutional obstacles are like ‘obstacles’ and ‘stumbling blocks’ hindering the process of reform and development.” 这场伟大社会革命,涵盖的领域极其广泛,涉及经济、政治、文化、社会、生态文明建设和国防和军队建设、港澳台工作、外交工作、党的建设等方面的矛盾和问题 触及的利益格局调整极其深刻,既要冲破思想观念的障碍,又要突破利益固化的藩篱...突破体制机制障碍的任务极其艰巨,体制性弊端、机制性梗阻犹如“拦路虎”、“绊脚石”阻碍改革发展进程.
The international situation is turbulent, and the situation of the “great struggle” is complex and arduous. Ergo, it is important to continue pursuing the social revolution. We then get this, which I have edited for context and explanation.
“Once upon a time, how powerful was the Communist Party of the Soviet Union and how powerful was the Soviet Union? Now it has become a painful memory of a homeland that one cannot bear to turn and look back at in the light of the moon. Forgetting revolution and not talking about struggle, the Communist Party will deteriorate and socialism will change color.” 曾几何时,苏共何其强大,苏联何其强大,现在早已是“故国不堪回首月明中”了. 忘记革命、不讲斗争,共产党就会变质,社会主义就会变色.
Thursday’s piece talked about the importance of cadres keeping the original aspiration in mind. It says that this is also important as the Party moves to achieve the objective of national rejuvenation. China’s situation and the international environment are changing; and the tasks of development and security remain arduous. There are many contradictions and risks, which have brought unprecedented challenges to the Party’s governance. Therefore, it’s all the more important to keep in mind the original aspiration and mission while enhancing the sense of hardship and challenges ahead, always being vigilant and toughening the spirit. 当今世界正经历百年未有之大变局,我国正处于实现中华民族伟大复兴关键时期,我们党正带领人民进行具有许多新的历史特点的伟大斗争,形势环境变化之快、改革发展稳定任务之重、矛盾风险挑战之多、对我们党治国理政考验之大前所未有...我们要增强忧患意识,时刻保持警醒,以初心砥砺前行的精神,以使命鼓舞奋发的斗志,不断夺取伟大斗争新胜利.
A nation that forgets the road it has traveled is a nation that does not have a way forward, and a political party that forgets its original mission and intention is a political party without a future. 一个忘记来路的民族必定是没有出路的民族,一个忘记初心的政党必定是没有未来的政党.
And then there is a call for “regular ideological and political tests.” I thought this was really interesting, and perhaps a sign of a much tougher crackdown in the offing. The text here uses a strange analogy with physical medical examinations. It said that cadres should be benchmarked based on the requirements of the CPC Central Committee; scanned using the party constitution and rules; assessed from the prism of new expectations of the people; and contrasted against Party’s forefathers, martyrs, and role models, constantly removing impurities, removing viruses and preventing pollution… 经常进行思想政治体检,同党中央要求“对标”,拿党章党规“扫描”,用人民群众新期待“透视”,同先辈先烈、先进典型“对照”,不断去杂质、除病毒、防污染,始终做到初心如磐、使命在肩。
Also note this:
“Irrespective of where they are and when it is, party members and cadres should always remember that their first identity is that they are a member of the Communist Party; their first duty is to work for the party; the first goal is to work for the benefit of the people; always put the party and the people in the first place.” This is an “eternal” and “lifelong” thing. 初心使命与党员干部一生相随,无论何时何地,党员干部都要始终牢记第一身份是共产党员、第一职责是为党工作、第一目标是为民谋利,始终把党和人民放在首位,在“永恒”和“终身”上下大气力、下足功夫. This is an interesting message; I wonder how this sort of messaging is perceived outside when it comes to Chinese officials occupying key positions in international agencies and institutions?
Finally, Friday’s piece spoke about putting people at the center of governance. Essentially, this framing of the question is used to make a point about corruption and Party members not seeking personal gain.
“If you forget the people and separate from the people, our party will become a water without a source, a tree without a root, and nothing will be accomplished.” 忘记了人民,脱离了人民,我们党就会成为无源之水、无本之木,就会一事无成.
The next question in the piece was about the pursuit of a better life as an objective. This offered a glowing review of China’s development.
“After a long and arduous struggle, the life of the Chinese people has undergone radical changes. By the end of 2020, the per capita disposable income of residents increased to more than 30,000 yuan, and the middle-income group continued to expand. All rural poor people under the current standards have been lifted out of poverty. The compulsory education enrolment rate is close to 100%, the urbanization rate of the resident population exceeds 60%, basic medical insurance covers more than 1.3 billion people, and basic pension insurance covers nearly 1 billion people. The problems that have plagued the Chinese people for thousands of years, such as starvation, lack of food and clothing, and hardship in life, have generally disappeared.” 经过长期艰苦奋斗,中国人民生活发生了翻天覆地的变化。截至2020年底,居民人均可支配收入增加到3万多元,中等收入群体持续扩大。现行标准下农村贫困人口全部脱贫。义务教育入学率接近100%,常住人口城镇化率超过60%,基本医疗保险覆盖超过13亿人,基本养老保险覆盖近10亿人. 忍饥挨饿、缺吃少穿、生活困顿这些几千年来困扰中国人民的问题总体上一去不复返了.
It also said that the people now expect “better education, more stable jobs, more satisfactory income, more reliable social security, higher level of medical and health services, more comfortable living conditions, more beautiful environment, and richer spiritual and cultural life.” It acknowledges the gap between urban and rural development, income distribution, etc, and finally emphasises that in the past, the Party had to address the issue of scarcity, today it has to address the issue of quality.
V. The Sherman Visit, Qin Gang’s Message & Austin in E. Asia
We had the first direct high-level dialogue between China and the US this week, with US Deputy Secretary of State Wendy Sherman visiting Tianjin. The tone for this visit was set when the US sanctioned officials linked to the HK Liaison Office last week, and China responded with “reciprocal countermeasures” to “impose sanctions on seven US individuals and entity according to the Anti-Foreign Sanctions Law...”
Sherman first met with Chinese Vice Foreign Minister Xie Feng. From Chinese media reporting, it seems that Xie was rather combative. Here’s what Xinhua reported.
“For quite some time, when talking about conflict with China and challenges facing the United States, the ‘Pearl Harbor moment’ and the ‘Sputnik moment’ have been brought up by some Americans, Xie said. Some international scholars, including some U.S. academics, perceive this as comparing China to Japan in the Second World War and the Soviet Union in the Cold War. It seems as if by making China an "imagined enemy," a national sense of purpose would be reignited in the United States. The hope may be that by demonizing China, the United States could somehow shift domestic public discontent over political, economic and social issues and blame China for its own structural problems, he said. It seems that a whole-of-government and whole-of-society campaign is being waged to bring China down. It is as if when China's development is contained, all U.S. domestic and external challenges would go away, and America would become great again and Pax Americana would continue to go on, Xie said.”
Here’s more:
“In terms of the United States' ‘competitive, collaborative and adversarial’ rhetoric, Xie said this is a thinly veiled attempt to contain and suppress China. The Chinese people feel that the real emphasis is on the adversarial aspect, the collaborative aspect is just expediency, and the competitive aspect is a narrative trap, he said. The U.S. policy seems to be demanding cooperation when it wants something from China; decoupling, cutting off supplies, blockading or sanctioning China when it believes it has an advantage; and resorting to conflict and confrontation at all costs, he added.”
And more:
“China wants to work with the United States to seek common ground while shelving the differences,” he said. The U.S. side needs to change course and work with China on the basis of mutual respect and embrace fair competition and peaceful coexistence with China...”
Xie also reportedly gave Sherman two lists with Chinese demands. The first one talked about “correcting wrong US policies.”
These include that the US should “unconditionally”
lift visa restrictions on CCP members and their families
lift sanctions on Chinese leaders, officials, and government departments
lift visa restrictions on Chinese students
stop suppressing Chinese enterprises
stop harassing Chinese students
stop suppressing Confucius Institutes
cancel the registration of Chinese media as “foreign agents” or “foreign missions”,
withdraw extradition request for Meng Wanzhou
The second list was about areas of concern for China. These included
denial of visa to Chinese students
cases where Chinese citizens have faced unfair treatment in the US
harassment and attacks on Chinese embassy and consulate in the US
anti-Asian and anti-China sentiment in the US,
attacks on Chinese citizens
Then she met with Foreign Minister Wang Yi, who had a few days earlier made it clear that
“There is never a country that is superior to others, and there shouldn’t be one, Wang stated, stressing that China will not accept any country that thinks itself more superior than others. According to him, if the U.S. is still unaware of the basic rules of interacting with other countries, China, together with the international community, bear the responsibility to teach the U.S. a lesson on how to treat other countries in an equal manner.”
In the Wang-Sherman meeting, Xinhua tells us that Wang demanded that the US “make correct choices as to whether the bilateral ties will head to confrontation or improvement.” Wang said that the Biden administration “has in general continued its predecessor’s extreme and erroneous China policy, constantly challenged China's bottom line, and stepped up containment and suppression on China.” Wang said the problem lay with US perception of China as “its main opponent” or even as an “adversary.” He said that “China is firmly opposed to such U.S. practices” adding that these were attempts to “impede and disrupt China’s modernization drive.” Of course, he said that “such an attempt is doomed to fail for now, and is even more so in the future.”
Wang also defended the system of socialism with Chinese characteristics. He then put forward “three basic demands as bottom lines that China firmly upholds”:
The US must not challenge, slander or even attempt to subvert the path and system of socialism with Chinese characteristics - this is a core interest.
The US must not attempt to obstruct or interrupt China’s development process; this entails removing “all unilateral sanctions, high tariffs, long-arm jurisdiction and technology blockade it has imposed on China.”
US must not infringe upon China’s state sovereignty, or even damage China's territorial integrity. This covers issues of Tibet, Xinjiang, Hong Kong, and Taiwan.
Wang added: “If ‘Taiwan independence’ forces dare to provoke, China has the right to take any necessary measure to stop it.” He then said that China and the US are the largest developing and developed countries in the world; “neither side can replace or defeat the other.” So “it is hoped that the U.S. side will have an objective and correct understanding of China, abandon arrogance and prejudice, stop acting as a preacher, and return to a rational and pragmatic China policy.”
Xinhua has Sherman saying that the US has no intention of restricting China's development, nor does it want to contain China, but would like to see China's development. The two sides can engage in healthy competition, cooperate on climate change, drug control and international and regional hotspot issues, strengthen crisis management capacity, and avoid conflicts. Sherman reiterated that the United States adheres to the one-China policy and does not support ‘Taiwan independence’. The two sides also exchanged views on international and regional issues of common concern.
The readout from the State Department regarding Sherman’s visit said that they had “a frank and open discussion about a range of issues, demonstrating the importance of maintaining open lines of communication between our two countries. They discussed ways to set terms for responsible management of the U.S-China relationship.” It adds that the US “welcomes the stiff competition between our countries—and that we intend to continue to strengthen our own competitive hand—but that we do not seek conflict with the PRC.” The readout mentions Tibet, Taiwan, Hong Kong and Xinjiang; it also talks about policies in cyberspace, and South and East China seas.
“The Deputy Secretary also raised the cases of American and Canadian citizens detained in the PRC or under exit bans and reminded PRC officials that people are not bargaining chips. The Deputy Secretary reiterated concerns about the PRC’s unwillingness to cooperate with the World Health Organization and allow a second phase investigation in the PRC into COVID-19’s origins. At the same time, the Deputy Secretary affirmed the importance of cooperation in areas of global interest, such as the climate crisis, counternarcotics, nonproliferation, and regional concerns including DPRK, Iran, Afghanistan, and Burma.”
Sherman also spoke to AP after the talks and I thought this part of her quote is important to note. While talking about friction over human rights, she said that “there are some things that rise above specific differences that are the global responsibility of great powers.” I guess part of this should make Beijing happy in that the US is acknowledging it as a “great power” equal. She added: “We do expect ... them to understand that human rights are not just an internal matter, they are a global commitment which they have signed up for” under the U.N. Universal Declaration on Human Rights.
Later in the week, China’s new ambassador to the US Qin Gang arrived in Washington DC, with a message of optimism. He talked about how “the door of China-U.S. relations, which is already open, cannot be closed. This is the trend of the world, the call of the times, and the will of the people.”
“China and the United States are entering a new round of mutual exploration, understanding and adaptation, trying to find a way to get along with each other in the new era. The China-U.S. relationship has once again come to a new critical juncture, facing not only many difficulties and challenges but also great opportunities and potentials…As President Xi Jinping put it, we need to forge new paths and build new bridges whenever necessary to take us past all risks and challenges. President Joe Biden said that anything is possible. I will follow through on the spirit of the phone call between the two Presidents on the eve of the Chinese New Year, and seek to build bridges of communication and cooperation with all sectors of the United States.”
Two interesting tweets by Qin as he took charge in DC. First this one:
And then this:
Amid all this, it is important to note US Secretary of Defense Lloyd Austin’s visit this week to Singapore, Vietnam, and the Philippines. CSIS’ Greg Poling has done an excellent piece assessing the outcomes from the visit.
In Singapore, he focuses on Austin’s speech at the IISS Fullerton Lecture series. Poling argues that the speech “hit all the points it needed to, and the reception from regional experts and journalists seems almost universally favorable. This is because the secretary framed his remarks around a positive agenda—delivering public goods and strengthening partnerships—and addressed competition with China only secondarily.” This is in line with something my colleague Aditya Ramanathan and I had argued in our April 2021 paper on Biden’s Indo-Pacific policy.
In Vietnam, Austin “enjoyed a positive reception from senior officials including Prime Minister Pham Minh Chinh and President Nguyen Xuan Phuc. They discussed cooperation on Covid-19, doubtless made easier by the delivery of 3 million Moderna vaccines to Vietnam days earlier, and enhanced cooperation on maritime security. Austin also signed an agreement on war legacies, enlisting Harvard and Texas Tech University to help Vietnam search for those missing in action. And he took time to lay a wreath at the site where the late John McCain was shot down over Hanoi during the war.”
In the Philippines, Austin had a 75-minute meeting with Rodrigo Duterte. This ended with Manila shelving any plans to abrogate the U.S.-Philippines Visiting Forces Agreement. Poling writes: “During a joint press conference the next morning, Secretary of National Defense Delfin Lorenzana announced that the president had decided to end the abrogation process. He noted that an “addendum” had been negotiated to address outstanding concerns, the contents of which are still unclear. This, clearly, was the most important outcome of Austin’s week in Southeast Asia.”
Also useful to note, that while Austin pushed back against Chinese claims in the South China Sea, saying that they have “no basis in international law,” he also said during the visit that “I am committed to pursuing a constructive, stable relationship with China, including stronger crisis communications with the People’s Liberation Army.”
Amid all this, Wang Yi was also courting ASEAN during a virtual symposium on Wednesday marking 30 years of dialogue between China and ASEAN. He called for “multilateralism with Asian characteristics.” Wang called for more cooperation under the Belt and Road Initiative and on the pandemic, and he also pushed for more talks on a code of conduct for the South China Sea, reported SCMP.
Also Read:
VI. Region Watch
The security conundrum between China, Pakistan and Afghanistan was in focus last week. For the first time since the group’s capture of several key districts in Badakhshan and Kandahar provinces of Afghanistan, a senior member of the Taliban visited China. Taliban’s chief negotiator and co-founder, Mullah Abdul Ghani Baradar, met with Chinese Foreign Minister Wang Yi in Tianjin on Wednesday. Following the meeting, Wang said China would continue to support Afghanistan’s sovereignty and territorial integrity. The key takeaway, however, was Beijing’s demand that the Taliban end all association with the East Turkestan Islamic Movement (ETIM). In an official statement, Wang Yi said:
‘Fighting ETIM is the common responsibility of the international community and I hope the Afghanistan Taliban will cut ties with terror groups such as ETIM. The Afghanistan Taliban can contribute to an effective crackdown against those groups and play an active role in regional stability and development.’
According to the SCMP, Taliban spokesman Mohammad Naeem said the discussions focused on the political, economic and security aspects of the relationship and the peace process. The group assured China that it would not allow Afghan territory to be used to terrorise other nations and that China agreed to assist the peace process without interfering in Afghanistan’s domestic affairs. The Foreign Minister had earlier highlighted China’s ability to navigate ties with both the Taliban and the Afghan government and said Beijing was willing to host talks between the two sides.
Even as conversations proceed, the Chinese foreign ministry cautioned its citizens to leave Afghanistan. A notice shared on the department of consular affairs’ official WeChat account read:
‘Currently, the security situation in Afghanistan has further deteriorated … If Chinese citizens insist on staying in Afghanistan, they will face extremely high security risks, and all the consequences will be borne by themselves.’
This was the second such alert issued this month. Given the shared border between China and Afghanistan, Beijing is worried that the ETIM, blamed for violent acts in Xinjiang, will endanger China’s security.
Pakistan too shares China’s security concerns as the Taliban spreads its wings across Afghanistan. Without making a direct reference, Chief of the Army Staff (COAS) General Qamar Javed Bajwa said Pakistan’s partnership with China was becoming increasingly important for regional peace and stability in the evolving security milieu. The General was speaking at an event held to celebrate the 94th year of the founding of China’s Peoples’ Liberation Army (PLA). According to a UN monitoring report issued in June, about 6,000 Tehreek-e-Taliban Pakistan (TTP) militants are based in Afghanistan. The TTP waged an eight-year insurgency against Pakistan that claimed thousands of lives and paralysed its economy. Since 2019, the TTP has ramped up the offensive from its bases in Afghanistan.
Manoj’s take on the China-Taliban talks is below:
This is as clear as it gets. Beijing is engaging the Taliban directly. It has offered this public recognition as a major concession to the Taliban, hedging its bets that the Taliban will be the key political force to reckon with in the country. There’s also a clear set of demands that China is giving the Taliban, while it may be saying that it doesn’t want to interfere. And these demands are limited to China’s immediate interests. While Baradar may have spoken about protecting “human rights as well as the rights and interests of women and children,” Beijing’s not going to take coercive actions in this regard. Of course, we’ll see how well all of this plays out for China. For the Taliban, the bargain is clear too. Beijing is an important source of political stability, funds and international legitimacy.
Also Read:
VII. The Long & Short of It…
a. PLA Anniversary
During the Politburo session that I have covered above, Xi Jinping also spoke about the PLA, which marks its 94th anniversary today. Xinhua tells us that “Xi extended regards to officers, soldiers and civilian personnel of PLA and the People's Armed Police Force, and members of the militia and the reserve service ahead of the 94th birthday of the PLA.” It added that “Reviewing the CPC’s endeavor over the past 100 years, Xi stressed that ‘the Party commands the gun’ and building people’s armed forces are vital conclusions made through fierce struggles.” He also talked about the importance of the 2027 modernisation goals. He underlined the “necessity of adapting to the global trend of military development and meeting the requirements for strengthening the strategic capacity of the Chinese armed forces.”
Also today, Qiushi’s lead article is a collection of Xi’s quotes about the PLA over the years. The editorial department’s piece associated with Xi’s article emphasises the key points, beginning with the importance of the Party commanding the gun.
b. WHO & COVID-19 Origins
Over the past few weeks, have been series of Zhong Sheng commentaries in the People’s Daily criticising the US over its handling of the pandemic and its policies with regard to the origin tracing issue. Criticism of the US in the People’s Daily is not terribly new. But there were three changes in the nature of these pieces this week.
First, from previously dismissing the laboratory origin hypothesis, this week we saw the commentaries echo the Foreign Ministry’s line about Fort Detrick lab. I wonder if this says something about the internal power dynamics when it comes to the propaganda ecosystem in terms of inter-agency tussles.
Second, there were what I felt more direct attacks on the Biden administration. In fact, the commentaries increasingly are becoming blunt in their assessment that the Biden administration is only continuing the policies of the Trump administration.
Third, there was direct criticism of the WHO, something that we had not seen so far. I guess one should see this as a sign of the effect of the US engaging effectively in multilateral institutions to bring pressure to bear on China. Zhao Lijian’s comments on Friday about the US being the “biggest saboteur of WHO's ability to perform its functions independently and without interference” are also indicative of this.
You can read the breakdowns of the Zhong Sheng commentaries in my People’s Daily Tracker.
But what is worth highlighting separately is Zhao Lijian’s statement about what China expects from the next stage of the WHO’s investigation. Before talking about this, Zhao first listed the “three sins” of the US when it comes to the pandemic.
First, the US has allowed the virus to spread unchecked.
Second, the US has hidden the truth from the world
Third, the US has been practicing “origin-tracing terrorism”
He then put forward these conditions from China.
“The joint WHO-China study report's conclusions and recommendations have been widely recognized by the international community and the science community. This should serve as the basis for the second phase of studies.” In other words, he implied that the WHO should treat laboratory origin as “extremely unlikely” in the work.
He then said this explicitly. “The key focus of the second phase should be on possible pathways identified as ‘very likely’ and ‘likely’ by the joint report including introduction through an intermediate host or cold chain products. Efforts should be made to advance origins study in various countries and regions across the world.”
“The practice, mechanisms and approaches used in the first phase should be drawn on to conduct further studies in an orderly and smooth manner...The regions to be covered by the second phase and the work plan should be determined after comprehensive assessment based on open research evidence.”
“The team of experts should be put together on the basis of the makeup of the first phase team with full respect for their expertise, international reputation and practical experience.”
c. China-Russia Media Partnership & Drills
The People’s Daily this week had a short report about the 14th meeting of the Media Cooperation Subcommittee of the China-Russia Humanities Cooperation Committee. Useful to note that it said that:
“both sides agreed that we should strengthen conceptual communication and strategic cooperation, and continue to support each other on issues involving core interests and major concerns.” They want to cooperate together on “agenda setting, make their voices heard in the international public opinion arena in a more proactive manner, jointly defend genuine multilateralism, and promote the common values of peace, development, fairness, justice, democracy and freedom for all mankind.” 展望中俄媒体领域下一步工作,双方一致认为,应加强理念沟通和战略协作,继续在涉及双方核心利益、重大关切的问题上相互支持。加强议题设置,以更加主动的姿态在国际舆论场发出自己的声音,共同捍卫真正的多边主义,弘扬和平、发展、公平、正义、民主、自由的全人类共同价值。双方将进一步创新合作模式,深化节目互译互播、联合制作、图书翻译出版等领域合作,办好品牌媒体项目,拓展新媒体领域合作,激发中俄媒体合作新动能.
Also, we learned from China’s Ministry of Defense this week that Russia and China will be holding the Zapad/Interaction-2021 exercise in the Qingtongxia Joint Tactical Training Base in Northwest China's Ningxia Hui Autonomous Region from early to mid-August. This is the first joint drill that the PLA is conducting since COVID-19 struck. Global Times reporteds that
“the two sides will set up joint headquarters, as the Chinese People's Liberation Army (PLA) Western Theater Command and Russia’s Eastern Military District will dispatch more than 10,000 personnel, multiple types of aircraft, artillery pieces and armored equipment in exercises to test joint reconnaissance, early warning, electronic information attack and strike capabilities, Wu said. Judging from the participating troops, related equipment and exercise subjects, the Zapad/Interaction-2021 is a large-scale strategic drill featuring some of the world's most advanced weapons and equipment as well as tactics, a Chinese military expert who asked to remain anonymous told the Global Times on Thursday.”
d. Targeting Foreign Journalists
There has been much social media commentary over the past two weeks about the challenges faced by foreign journalists in China. Of course, when officials talk about foreign journalists needing to be more like Edgar Snow, it’s not really a positive signal. Earlier this week, the Committee to Protect Journalists put out a statement calling on Chinese authorities to “ensure that all journalists can report without fear of violence and harassment.” Journalists from the LA Times, BBC, Deutsche Welle and AP have recently talked about harassment, particularly in their coverage of the floods in Henan. This SCMP report provides a good round-up of events and the criticism that has followed.
“The harassment was condemned by the BBC, the Foreign Correspondents’ Club of China (FCCC) and press freedom NGO Reporters Without Borders. The BBC said in a statement on Tuesday ‘there must be immediate action by the Chinese government to stop these attacks which continue to endanger foreign journalists’. Keith Richburg, director of the Journalism and Media Studies Centre at the University of Hong Kong, said that what happened in Zhengzhou was novel because official bodies like the Henan Communist Youth League were calling for journalists to be physically followed. ‘This [kind of rhetoric] puts reporters’ lives in danger’, he said.”
At least publicly, there appears to be no pulling back.
“The state-run China Daily published an English-language video on Wednesday in which two of its reporters called Deutsche Welle an “international propaganda agency” and said the anger towards foreign reporters was ‘well based’. ‘The consequences of their biased reports in Xinjiang and Hong Kong [have] been reflected in the incidents in Henan,’ said one. Foreign ministry spokesman Zhao Lijian responded to the controversy on Thursday, saying ‘there is always a reason for love, and also for hate’.”
The US State Department also this week issued a statement on the issue:
“The PRC government claims to welcome foreign media and support their work, but its actions tell a different story. Its harsh rhetoric, promoted through official state media, toward any news it perceives to be critical of PRC policies, has provoked negative public sentiment leading to tense, in-person confrontations and harassment, including online verbal abuse and death threats of journalists simply doing their jobs. Foreign journalists are increasingly refused visas to enter or remain in the PRC, severely limiting the quantity and quality of independent reporting on important issues. We call on the PRC to act as a responsible nation hoping to welcome foreign media and the world for the upcoming Beijing 2022 Winter Olympic and Paralympic Games.”
One of the key reasons for this systematic targeting of foreign journalists is the Party’s desire to control and shape the narrative, particularly when disaster strikes. This was the case with COVID-19, as you can read in my book Smokeless War - and it is the case with the floods in Henan. For instance, check out this excerpt from the LA Times’ Alice Su’s report. She is one of the journalists who faced harassment in Zhengzhou.
Large swaths of Henan north of Zhengzhou are underwater, with more rain forecast in coming days. Many of the flooded villages and smaller towns west of Zhengzhou have no running water, electricity or cellphone reception. A massive rescue effort is underway, including both Chinese military and grass-roots volunteers who have rushed from across the country to help. At the same time, government propaganda is controlling the narrative. Chinese media have been instructed to report on post-disaster recovery, avoid an ‘exaggeratedly sorrowful tone’ and adhere to official statistics on casualties and damage, according to a leaked censorship directive published in the China Digital Times. Grief has become a target of control. On Monday, Zhengzhou residents laid dozens of bouquets of flowers at the entrance to the subway line where the 14 had drowned. But authorities soon erected a yellow barrier around the flowers, blocking them from view. Journalists and passersby shared photos of the blocked memorial online, sparking thousands of angry comments. ‘They are even afraid of flowers,’ one wrote.”
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