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THE CHINA DEBRIEF JUNE-30-2022-ORIGINAL BRIEFING REVEALED

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U.S.-China Relations
Faced with a newly aggressive Russia, NATO leaders on Wednesday outlined a muscular new vision that names Moscow as the military alliance’s primary adversary but also, for the first time, declares China to be a strategic “challenge.” It was a fundamental shift for an alliance that was born in the Cold War but came to view a post-Soviet Russia as a potential ally, and did not focus on China at all. China offered a chilly response to the new NATO moves. “The deepening strategic partnership between the People’s Republic of China and the Russian Federation and their mutually reinforcing attempts to undercut the rules-based international order run counter to our values and interests,” NATO leaders said in a new mission statement issued during their summit in Madrid.
The United States has accused several companies and research institutes in China of supporting Russia’s military after the Ukraine invasion began, in one of the first concrete signs of Chinese entities allegedly helping Russia against Washington’s wishes. The Commerce Department said it was adding five of the companies to a trade blacklist known as the Entity List as punishment. It also accused two Chinese research institutes already on the blacklist since 2018 of supporting Russia’s military in recent weeks. Entities added to the list are effectively blocked from buying U.S. technology.

A pro-Chinese government group has impersonated environmental campaigners on social media platforms in an effort to undermine rare earths producers in the US and Canada, according to a cyber security consultancy. Mandiant said the group behind the attacks, known as Dragonbridge, had used fake Facebook and Twitter accounts to claim a US government-funded rare earths refinery in Texas being built by Australian group Lynas Rare Earths would “expose the area to irreversible environmental damage” and “radioactive contamination”. Mandiant described Dragonbridge as a “pro-People’s Republic of China (PRC) network” but did not identify it in more detail. The Australian Strategic Policy Institute think-tank corroborated Mandiant’s report to the Financial Times.
China’s plan to establish a yuan pooling scheme with the Bank for International Settlements (BIS), plus Indonesia, Malaysia, Hong Kong, Singapore and Chile could pave the way for the currency to play an anchoring role in the Asia-Pacific region, analysts said. The plan comes amid heightened worry in Beijing about US dollar hegemony and as global investors search for safe harbours while the US embarks on monetary normalisation to tame high inflation.

Russia-China Relations
India’s biggest cement producer, UltraTech Cement(ULTC.NS), is importing a cargo of Russian coal and paying using Chinese yuan, according to an Indian customs document reviewed by Reuters, a rare payment method that traders say could become more common. UltraTech is bringing in 157,000 tonnes of coal from Russian producer SUEK that loaded on the bulk carrier MV Mangas from the Russian Far East port of Vanino, the document showed. It cites an invoice dated June 5 that values the cargo at 172,652,900 yuan ($25.81 million). Two trade sources familiar with the matter said the cargo’s sale was arranged by SUEK’s Dubai-based unit, adding that other companies have also placed orders for Russian coal using yuan payments.
Iran, which holds the world’s second largest gas reserves, has applied to join the BRICS group of Brazil, Russia, India, China and South Africa that Beijing and Moscow cast as a powerful emerging market alternative to the West.
China has called for NATO members to drop their “Cold War mentality” after the intergovernmental military alliance declared Beijing was a “challenge” to its interests and security. “NATO should stop drawing ideological lines, stoking political confrontation, or seeking to start a new Cold War,” Mr Zhao said.

CCP Foreign Influence
For almost two decades, the synergy between China and Germany worked. China contributed low wages and input costs. Germans contributed technical know-how and the fruits of decades of engineering breakthroughs and research. Young Chinese workers got jobs. Aging German investors got profits. But in the end, Germany has lost out to China’s manufacturing prowess. China’s auto industry is surpassing Germany’s, certainly in size and soon, perhaps, in quality. China’s relentless focus on digitalization and other emerging technologies is reducing its dependence on a rival whose manufacturing and engineering heyday was in the 1970s. Original analysis by Enodo Economics shows that Beijing’s “Made in China 2025” industrial policy has done exactly what critics warned it would.
Although China failed to secure endorsement from the Pacific Island nations for its proposed regional agreement this month, it successfully finalized a controversial bilateral security pact with the Solomon Islands in May. The pact reportedly allows the deployment of Chinese police and docking of Chinese ships in the islands. The agreement first sparked backlash when an unsigned document was leaked on Twitter back in March. The leak caused concern among the United States, Japan, and Australia that the agreement would lead to the establishment of a Chinese military installation in the Solomon Islands. Considering the United States and its allies’ opposition to a Chinese foothold in the South Pacific, the agreement is a significant diplomatic victory for Beijing.
There will be no easy exit from this new chapter of Sino-American strategic competition—a chapter that arguably started with Xi’s moves against the South China Sea and neighboring states seven years ago, as the Obama administration was still exploring modalities for a productive bilateral relationship. Extended interviews and in-depth crisis scenario exercises with dozens of companies and investors, including to an elite group of participants in the Bloomberg New Economy Forum, about these issues over the past few months, have revealed an unexpected combination of overconfidence and resignation in their views.
Chinese university graduates are struggling to find work in the country’s worst labour market in years — unless they have degrees in Marxism. Despite being China’s ruling ideology, Marxism has for decades been an obscure major for students. But it is enjoying a revival under President Xi Jinping, who has urged Chinese Communist party cadres to “remember the original mission” as he prepares to begin an unprecedented third term in power this year.

COVID-19
Economic activity in China expanded in June after three straight months of contraction, according to official surveys of businesses and factories that point to a modest recovery after Covid-19 restrictions were eased in the world’s second-largest economy. Economists are downbeat about the prospects for a major revival, however, given the darkening global backdrop and the risk of further Covid outbreaks.
President Xi Jinping solidified the position during a trip to Wuhan, where the pathogen first emerged in 2019, saying China is capable of achieving a “final victory” over the coronavirus. The Covid Zero policy is the most effective and economic approach for the country, Xi said Tuesday during the visit, the official Xinhua News Agency reported. The first update of the National Health Commission’s protocol since May 2021 sparked enthusiasm in financial markets and increased demand for travel by cutting quarantine time in half, with some analysts projecting it may signal the start of China’s withdrawal from the Covid Zero approach that largely cut it off from the rest of the world since 2020.

Hong Kong
Mr. Xi’s decision to visit Hong Kong despite a recent rise in Covid infections in the city underscores the importance of signaling his control over the former British colony. This is Mr. Xi’s first time in Hong Kong since pro-democracy protesters mounted a serious challenge to Beijing’s rule in 2019 that roiled the territory for months. In the years since, Mr. Xi has enforced a sweeping crackdown on dissent, with the arrests of thousands of people, including leading opposition figures, lawmakers, academics, newspaper editors and a retired Catholic bishop. Mr. Xi has not left China in 29 months. His absence has been increasingly conspicuous, especially as a flurry of diplomacy arose in response to the war in Ukraine and the ensuing political, military and economic fallout. 
Hong Kong was not supposed to look like this, 25 years after the end of British colonial rule and midway through China’s promised 50 years of autonomy and personal freedoms. There are now more than 1,000 political prisoners languishing in Hong Kong’s jails, among them activists, students, journalists and lawyers. Dozens have been jailed for a year or longer without bail in the legal limbo of “pretrial detention.” Some 47 opposition politicians face possible life in prison because they participated in a primary election, considered subversive in the new Hong Kong.
Chief Executive Carrie Lam’s departure from office Thursday closes what’s arguably been the most difficult chapter in Hong Kong’s history since its return to Chinese rule a quarter century ago. Lam’s five-year tenure saw more than 1 million people march against her government, and months of often violent street protests, after she tried to allow extradition to China. Beijing responded with unprecedented interventions in the former British colony’s legislative and electoral framework that crushed open dissent in the once freewheeling city. 

Taiwan
Trade talks between Taiwan and the United States this week give the self-ruled island a chance to accelerate exports to the giant Western consumer market and away from mainland China, a political adversary that many Taiwanese firms still depend on for business, according to officials and analysts. The initiative, announced by US President Joe Biden’s administration on June 1, calls on the US to support Taiwanese agriculture, which has lost consumers in mainland China over political spats, and to engage more in its digital economy – a sector that US officials hope to avoid in China over intellectual property concerns.
 A U.S. Navy aircraft’s flight through the Taiwan Strait last week demonstrated a U.S. commitment to a free and open Indo-Pacific, the U.S. military said on Tuesday, after China complained it endangered peace and stability.
The main opposition Kuomingtang (KMT) party on Wednesday (June 29) issued a statement refuting claims by the Taiwan Affairs Office (TAO) that Taiwan is ruled by Beijing and the Taiwan Strait is its “internal waters.” TAO Spokesperson Ma Xiaoguang (馬曉光) claimed the People’s Republic of China (PRC) replaced the Republic of China (ROC) on Oct. 1, 1949 to “become the sole legal government of China, the sole representative in the world, and fully enjoys the right to exercise China’s sovereignty, including sovereignty over Taiwan.” In response, the KMT issued a statement on its website pointing out, “The Republic of China has always been a sovereign and independent country, and the People’s Republic of China has never ruled Taiwan.” The KMT condemned TAO’s claims as “not only hurting the feelings of Taiwanese, but also being detrimental to the peaceful development of cross-strait relations.”
Western nations need to do more to ensure Taiwan can protect itself against China, the UK’s foreign secretary has urged. Liz Truss said she was working with allies in the G7 group to ensure the self-ruled island has “the defence capability it needs”. She added the West had failed to arm Ukraine early enough to deter Russia from its invasion earlier this year. It comes amid fresh tensions between China and the US over Taiwan. In an apparent change of tone, US President Joe Biden stated unequivocally that the US would defend the island if China attacked.
Taiwan on Wednesday rebuffed a complaint from the Philippines about live fire drills around a Taiwan-controlled island deep in the South China Sea, saying it had the right to do so and always gives issues a warning of its exercises.

Xinjiang
A new U.S. law meant to penalize forced labor in China’s western Xinjiang region is showcasing the still-fearsome reach of American economic power—and its limits. The law is already having a marked impact on one of Xinjiang’s key industries—cotton—and has the potential to seriously damage China’s textiles industry, the world’s largest. But the lack of impact on another key Xinjiang product—polysilicon, used to make solar panels—showcases the law’s limits. Companies in both sectors have been implicated in the use of forced labor, according to the U.S. government.
Matthew P. Robertson, a data scientist with VOC, and Jacob Lavee write: China’s crime against humanity—of massive executions by organ-procuring physicians—has been accomplished secretly under the headlights of operating rooms, and so for decades has been hard to detect. The global silence with which these crimes have been met is unconscionable—crimes similar to those of the Nazi doctors are repeating themselves in front of our eyes, and yet the world remains quiet. It is high time for Western scientists, doctors, and the rest of humanity to reaffirm the sanctity of the Hippocratic oath and give meaning to the Jewish slogan after the Holocaust: Never again.

The China Debrief is a resource of the Victims of Communism Memorial Foundation.

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THE CHINA DEBRIEF JUNE-17-2022-ORIGINAL BRIEFING REVEALED

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U.S.-China Relations
The U.S. Department of Defense has signed a $120mn deal with Australia’s Lynas Rare Earths to build one of the first U.S. domestic heavy rare earths separation facilities, part of Washington’s push to counter China’s dominance of critical mineral supply chains. Rare earth elements are vital to making magnets used in military equipment such as lasers and guidance systems, as well as components in electric vehicles, wind turbines, fiber optic cables, and consumer electronics. China is responsible for almost 90% of global refining of rare earths and more than 50% of rare earths mining, according to the International Energy Agency.President Joe Biden’s administration is looking to foster renewed diplomacy with China with a close eye on the nuclear threat looming over the Korean Peninsula, a subject of the latest talks between top officials from Washington and Beijing. White House national security adviser Jake Sullivan and Chinese Central Foreign Affairs Commission Director Yang Jiechi met Monday in Luxembourg for a four-and-half-hour session of discussion that a senior Biden administration official described as “candid, in-depth, substantive and productive” during a press call later that same day. A readout issued by the White House offered few details of the meeting, simply saying that the two men discussed “a number of regional and global security issues, as well as key issues in US-China relations,” and Sullivan “underscored the importance of maintaining open lines of communication to manage competition between our two countries.”National security adviser Jake Sullivan met with China’s top diplomat, Yang Jiechi, on Monday to discuss a range of security challenges facing the countries’ bilateral relationship, including Russia’s war in Ukraine and North Korea’s string of ballistic missile tests. A senior administration official described the talks, which were held in Luxembourg, as “candid, in-depth, substantive and productive.” The official, who spoke on condition of anonymity, said the meeting lasted nearly five hours and follows a May phone call between Sullivan and Yang. The two last met in person in Rome on March 14 in what was later described as “intense” talks that spanned at least seven hours.Amid mounting US-China tensions and spikes in anti-Asian hate, U.S. Trade Representative Katherine Tai told Axios in an interview she is keenly aware of the heightened scrutiny she faces as a Chinese American leading the US’s trade policy. Besides Vice President Harris, Tai is the only Asian American to serve in a Cabinet-level position in the Biden administration. Her job requires her to navigate the US’s complicated relationship with China even as Americans grow increasingly distrustful of people of Asian descent. Tai, who co-chairs the White House Initiative on Asian Americans, Native Hawaiians and Pacific Islanders, said she is used to the extra attention on her work.
Russia-China Relations
China and other Asian nations are becoming an increasingly vital source of oil revenues for Moscow despite strong pressure from the US not to increase their purchases, as the European Union and other allies cut off energy imports from Russia in line with sanctions over its war on Ukraine. Such sales are boosting Russian export revenues at a time when Washington and allies are trying to limit financial flows supporting Moscow’s war effort. A report by the Helsinki, Finland-based Centre for Research on Energy and Clean Air, an independent think tank released Monday said Russia earned 93 billion euros ($97.4 billion) in revenue from fossil fuel exports in the first 100 days of the country’s invasion of Ukraine, despite a fall in export volumes in May.While appealing to Asian nations for support to fend off Russia’s invasion on Saturday, Ukrainian President Volodymyr Zelensky said the international community should help Taiwan resist China’s aggression now, before Beijing attacks the island democracy it claims as its own province. The comments risk upsetting Ukraine’s delicate balancing act with China; nevertheless, Zelensky insisted that aggressors must be confronted wherever they emerge. Asian countries must not wait for the crisis to act on Taiwan’s behalf, which would be repeating the mistake Europe made before Russian President Vladimir Putin’s attack on Ukraine. Zelensky’s remarks followed a video address he made to the Shangri-La Dialogue, an annual conference of Asian and Pacific defense and diplomatic officials organized by the London-based International Institute for Strategic Studies.
CCP Foreign Influence
China and Poland have pledged to develop their economic relationship despite their clear differences over the war in Ukraine. In a video call on Friday, Chinese Foreign Minister Wang Yi told his Polish counterpart Zbigniew Rau that China hoped to make the country a gateway to Central and Eastern Europe and promised to explore the establishment of a two-way warehousing, logistics and distribution system. Wang also said Beijing wanted to maintain sound and stable development of relations despite the “turbulent and volatile international situation,” according to a statement from the foreign ministry. He also promised that China would “continue to play a constructive role, in our own way” in Ukraine and accused the United States of using the conflict to “smear and suppress” China.China has overtaken the US as the foreign power seen as having the biggest positive influence in Africa by young people, according to a survey released on Monday. A survey conducted by the Ichikowitz Family Foundation found that 76% of 4,507 young Africans across 15 countries named China as a foreign power with a positive influence on their lives, compared with 72% for the US. In 2020, when the inaugural study of 18-to-24-year-olds was conducted, 83% of respondents saw the US’s influence as positive while the figure for China was 79%. The results are further evidence that China is winning the battle against geopolitical rivals such as the US and the European Union for the hearts and minds of Africans. Beijing has plowed money into African infrastructure over the past two decades and supplies the continent with affordable consumer goods ranging from mobile phones and solar panels to shovels and plastics.China has widened the gap on the United States in trade terms in large swathes of Latin America since US President Joe Biden came into office early last year, data show, underscoring how Washington is being pushed onto the back foot in the region. An exclusive Reuters analysis of UN trade data from 2015-2021 shows that outside of Mexico, the top US trade partner, China has overtaken the United States in Latin America and widened the gap last year. The trend, driven by countries in resource-rich South America, hammers home how the United States has lost ground in a region long seen as its backyard, even as Biden aimed to reset ties at the Summit of the Americas in Los Angeles last week.
COVID-19
China is the last country in the world that is trying to eliminate COVID, and the spread of the highly contagious Omicron variant is challenging its strategy of mass lockdowns and quarantines. The country already uses health code apps to surveil its citizens and track infections, and it imposes stringent lockdowns and centralized quarantines for confirmed cases and close contacts. Officials hope the regular mass testing will help isolate cases in the community before they spiral into bigger outbreaks. But the policy can be expensive and time-consuming, undercutting the central government’s efforts to fire up the economy. In Shanghai, barely two weeks after the city lifted its two-month lockdown, the authorities have placed millions under new lockdowns to conduct mass testing, setting off protests in some areas.China’s capital has put school online in one of its major districts amid a new COVID-19 outbreak linked to a nightclub, while life has yet to return to normal in Shanghai despite the lifting of a more than two-month-long lockdown. China has stuck to its “zero-COVID” policy requiring mass testing, quarantines, and the sequestering of anyone who has come into contact with an infected person in concentrated locations where hygiene is generally poor. A total of 166 cases have been linked to the Heaven Supermarket club in the downtown Gongti nightlife area after an infected person visited there Thursday. Of those, 145 were customers, while the rest were staff or people with whom customers had later contact.A protest planned by hundreds of bank depositors in central China seeking access to their frozen funds has been thwarted because the authorities have turned their health code apps red, several depositors told Reuters. The depositors were planning to travel to the central province of Henan this week from across China to protest against an almost two-month block on accessing at least $178 million of deposits, which has left companies unable to pay workers and individuals unable to access savings.
Hong Kong
Thousands of exiled Hongkongers and allies marked the 3rd anniversary of the 2019 Hong Kong protest movement in cities around the world at the weekend, with a large crowd gathering on Parliament Square in London to mark the first anniversary of mass public protests on June 12, 2019. Some 4,000 protesters gathered in London gathered at Marble Arch, marching to Parliament Square to chant slogans including “Free Hong Kong! Revolution now!”, which has been banned under a draconian national security law in Hong Kong. Exiled former pro-democracy lawmaker Nathan Law said people’s goals weren’t all the same, but that Hongkongers in exile would still work together.Chief Executive Carrie Lam has said she feels pride, and no regrets over the 2019 extradition bill row, as her tenure comes to a close. “Everything comes to an end. I feel greatly relieved… Whatever happens in Hong Kong after July 1 is none of my business, you can’t imagine how relaxed I feel,” she told Commercial Radio on Sunday, according to RTHK. Lam added she felt proud of her efforts to develop Hong Kong but felt that a “great burden” was being lifted from her shoulders after a “roller-coaster” term. She said her ambitions were stalled by COVID-19 and the 2019 protests and unrest.New schoolbooks will teach students in Hong Kong that the city was never a British colony, the South China Morning Post reports, as Beijing seeks to tighten its control of the territory. The four sets of textbooks for a class on citizenship say the Chinese government never recognized the 19th-century treaties that handed Britain control of Hong Kong, the report says. They also stick to the government’s stance on the large and sometimes violent protests in the city in 2019, blaming them on “external forces.” The educational materials have been provided to schools so they can pick which to teach from September, the newspaper said. Textbook publishers are responsible for choosing the appropriate materials for schoolbooks in accordance with official guidelines, the Education Bureau said in a statement to Bloomberg News.
Taiwan
Russia’s brutal war in Ukraine has jolted Taiwan into confronting the specter of a sudden attack from the island’s own larger and more powerful neighbor: China. The invasion has given new weight to the authoritarian vision of China’s leader, Xi Jinping, who has long laid claim to self-governed Taiwan for the “rejuvenation” of China — much as President Vladimir Putin of Russia did with Ukraine. To many in Taiwan, Ukraine has been a lesson in the tactics and weaponry that could slow a more powerful invading force. It has also been a stark warning that the island may be inadequately prepared for a full-scale attack. Taiwan’s defenses are, by many accounts, ill-equipped and understaffed. Its president, Tsai Ing-wen, has vowed to defend the island, but she has struggled to impose a new strategic vision on the uniformed leadership.While the KMT has long been criticized as a party stuck in the past, the chairman’s 12-day trip to the US has leaned heavily — but selectively — into the party’s history to highlight the themes of consistency and American-friendliness. The main purpose of Chu’s US trip was to attend the plaque-unveiling ceremony at the KMT’s reopened liaison office in Washington, but critics across the aisle have called the trip one of “amending” the party’s soured relations with the US after years of pushing an anti-American line. The KMT’s role in backing a 2021 referendum against ractopamine pork imports, largely from the US, has often been cited as clear evidence of the party’s distrust of the country. Coupled with the KMT’s many instances of close association with the Chinese Communist Party (CCP), the pro-China and anti-America label has stuck.China should think twice about invading Taiwan, as its Yun Feng missile could reach Beijing, Legislative Speaker You Si-kun said yesterday. He said that when he was the premier, he already knew that the Cloud Peak, a medium-range supersonic land-attack cruise missile developed in Taiwan, could reach Beijing. At the time he could not talk publicly about it, but now he could, as the missile is in mass production. Taiwan is not invading China, but China should take Taiwan’s ability to attack Beijing into consideration before launching an invasion, You said yesterday. The Taiwan Strait is a natural barrier that provides a defensive advantage to Taiwan, so a Chinese invasion would be different from Russia’s invasion of Ukraine, he said.
Xinjiang
Dozens of countries voiced concern Tuesday at alleged abuses in China’s Xinjiang region, and demanded that the UN rights chief publish a long-delayed report on the rights situation there. “We continue to be gravely concerned about the human rights situation in Xinjiang Uyghur Autonomous Region,” The Netherlands ambassador to the UN in Geneva Paul Bekkers told the UN Human Rights Council. Delivering a joint statement on behalf of 47 countries, he pointed to a number of “credible reports” — vehemently denied by Beijing — indicating that more than one million Uyghurs and other Muslim minorities have been arbitrarily detained in the region. “There are reports of ongoing widespread surveillance, discrimination against Uyghurs and other persons belonging to minorities,” he said.A new report, by researchers at Sheffield Hallam University’s Helena Kennedy Centre for International Justice in England and at the Maine-based toxic chemical investigative outfit Material Research, details the toll taken by the flooring industry, painting a devastating picture of oppression and pollution in the Uyghur region, all to help consumers in the United States and other wealthy countries cheaply renovate their homes. The report calls on the industry “to identify its risk and extract themselves from complicity in Uyghur forced labor.” It also asks all companies that source from China — including Home Depot — to scrutinize their supply chains.A mystery has finally been solved for Anwar, a Uyghur American, who asked that only his first name be used for fear of “too much political attention.” Anwar said he had been “unable to speak or even just communicate” with his family in Xinjiang for five years. Then, he saw his cousin’s mugshot in what is known as the Xinjiang Police Files, documents and images leaked from within China and released to the public last month by the Washington-based Victims of Communism Memorial Foundation and news media. “I could only hope and pray for the best as I sat combing through each picture of the leaked Xinjiang Police Files,” Anwar said.

The China Debrief is a resource of the Victims of Communism Memorial Foundation.

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U.S.-China Relations
US politicians have expressed outrage about a Biden administration move to quietly tell American investors they can hold on to shares of Chinese companies on an investment blacklist for military links, as reported by Nikkei Asia. “What is the point of a required divestment period if it doesn’t actually require divestment?” Republican Senator Marco Rubio said to Nikkei. “Once again, the Biden administration has watered down and weakened critical national tools to take on the Chinese Communist Party.” From across the aisle, Michael Wessel, a Democratic member of the official US-China Economic and Security Review Commission, said: “Treasury simply got it wrong. … Investors should be required to divest their holdings, not continue to profit from the threats the actions of some of these companies pose to American interests.”
The US trade deficit shrunk in April by the most on record in dollar terms, reflecting a drop in the value of imports amid Covid lockdowns in China while exports climbed. The gap in goods and services trade narrowed $20.6 billion, or 19.1%, to $87.1 billion, Commerce Department data showed Tuesday. The median estimate in a Bloomberg survey of economists called for an $89.5 billion deficit. The figures aren’t adjusted for inflation. Imports dropped in April as factory activity in China fell to the lowest level since February 2020 amid strict lockdowns to curb the spread of Covid-19. While manufacturing in the country has improved somewhat since, the measures are still straining already-tenuous global supply chains, especially when coupled with Russia’s war in Ukraine.
Facing paralysis of the US solar industry, President Joe Biden has ordered that potential trade violations by Chinese solar panel manufacturers go unpunished for the next two years, sidestepping a law Congress passed to protect US workers. Biden’s move Monday to prohibit new tariffs on the solar panels also took the teeth out of an investigation by the Commerce Department that was required by law. The Biden administration had previously tried to avoid interference in what’s supposed to be an independent, quasi-judicial process. The investigation will go on uninterrupted, the Commerce Department said Monday. But nobody will be punished. Senior Biden administration officials described the move to suspend the tariffs as creating a “bridge” — temporarily allowing cheap foreign solar panels to flood into the US to speed the transition to clean energy, while using those two years to ramp up a fledgling US solar manufacturing industry.


Russia-China Relations
Russian officials have raised increasingly frustrated requests for greater support during discussions with Beijing in recent weeks, calling on China to live up to its affirmation of a “no limits” partnership made weeks before the war in Ukraine began. But China’s leadership wants to expand assistance for Russia without running afoul of Western sanctions and has set limits on what it will do, according to Chinese and US officials. Moscow has on at least two occasions pressed Beijing to offer new forms of economic support — exchanges that one Chinese official described as “tense.” The officials familiar with the talks spoke on the condition of anonymity because of the matter’s sensitivity. They declined to share specifics of Russia’s requests, but one official said it included maintaining “trade commitments” predating the Feb. 24 invasion of Ukraine, and financial and technological support now sanctioned by the United States and other countries.
Russia’s foreign minister, Sergey Lavrov, lauded the “inexhaustible potential” of his country’s strategic relationship with China on Wednesday. Moscow’s top diplomat called for more economic integration with its powerful neighbor as the war in Ukraine neared 100 days and the West’s wide-ranging sanctions continued to endanger Russia’s growth. In prepared remarks at the top of an academic conference hosted by state-backed think tanks from Moscow and Beijing, Lavrov said Russia’s cooperation with China continued to grow in “scale and intensity” despite punctuative measures and an “information war” led by the United States. Developing the “strategic partnership” between the two countries “remains among Russia’s foreign policy priorities,” he said. “The experience of working together in the new environment shows that our ties have a powerful, truly inexhaustible potential, and are confidently passing endurance tests.”

CCP Foreign Influence
China’s financing of overseas projects has disproportionately benefited the core political supporters of incumbent presidents or prime ministers of those countries that receive the funds, according to a new book. During the 20th century, China was mostly known as a recipient of international development finance. Its overseas development program was modest – roughly on a par with that of Denmark. But over the course of one generation, as Beijing emerged as the world’s second-largest economy, its footprint began to extend far beyond its borders – often in the form of infrastructure initiatives such as Belt and Road. Its use of debt rather than aid to bankroll big-ticket overseas projects created new opportunities for developing countries to achieve rapid socio-economic gains, but it also introduced major risks, such as corruption, “political capture” and conflict.
China is secretly building a naval facility in Cambodia for the exclusive use of its military, with both countries denying that is the case and taking extraordinary measures to conceal the operation, Western officials said. The military presence will be on the northern portion of Cambodia’s Ream Naval Base on the Gulf of Thailand, which is slated to be the site of a groundbreaking ceremony this week, according to the officials, who, like others, spoke on the condition of anonymity because of the matter’s sensitivity. The establishment of a Chinese naval base in Cambodia — only its second such overseas outpost and its first in the strategically significant Indo-Pacific region — is part of Beijing’s strategy to build a network of military facilities around the world in support of its aspirations to become a true global power, the officials said.
In every crisis, someone always benefits. In the case of Russia’s invasion of Ukraine, that someone is Indian Prime Minister Narendra Modi. By refusing to condemn Moscow and join Western-led sanctions, Modi has managed to elevate India’s global stature. Each of the other major powers—the United States, Russia, and China—are intensely courting India to deny a strategic advantage to their adversaries. Relishing the spotlight, Modi and his Hindu-nationalist government will surely look to keep the momentum going. Their likely goal is to carve out an independent superpower role for India, hasten the transition to a multipolar international system, and ultimately cement its new status with a permanent United Nations Security Council seat for India.

COVID-19
Chinese authorities have apparently eased restrictions on a commuter town near Beijing after the latest show of public anger against Covid-19 controls. Thousands of residents gathered in Yanjiao, Hebei province on Wednesday to protest over measures that have made it difficult for them to enter Beijing in the past two years. The town is located on the eastern outskirts of Beijing, about 35km from the city centre. Many people choose to live there because it is cheaper than Beijing, and about 100,000 residents need to make the daily commute into the capital. But since the pandemic began, towns like Yanjiao have been subject to some of the toughest controls in China. Yanjiao residents have been unable to enter the capital for months this year even though there have been few cases in the region.
China’s Premier Li Keqiang’s recent warning that the economy is facing serious challenges as a result of its Covid-19 controls has raised fears the country may be facing its biggest economic slowdown – or even recession – in decades. Chinese and international observers have suggested that Beijing may need to rethink its approach towards the West and scale down its global ambitions as it grapples with an increasingly hostile external environment. They warned that economic headwinds may compromise China’s ability to compete with the United States and put further strains on the Belt and Road Initiative, its transcontinental investment strategy. Senior Chinese officials, however, have put on a brave face over the past week, trying to play down such concerns while repeating their promises to developing nations.
A COVID-19 vaccine candidate from China’s Walvax Biotechnology using mRNA technology triggered a stronger antibody response against the Omicron variant of the coronavirus as a booster dose than Sinovac’s shot, clinical trial data showed. The result for Walvax’s ARCoV candidate, which is yet to be peer reviewed, comes as competition for the COVID booster market intensifies in China, where more than half of the 1.4 billion population have so far received a non-mRNA booster shot. Among 300 healthy adults vaccinated with two doses of either a Sinovac or Sinopharm vaccine around six months earlier, the neutralizing antibody level against Omicron in those given an ARCoV booster was 4.4-fold higher than in those who received a Sinovac third dose, researchers said in a paper published on Tuesday.

Hong Kong
Congress and the White House continue to fail Hongkongers. Most recently, as protesters have fled Hong Kong and sought refuge across the world, Congress has repeatedly failed to back their claimed support of the cause with action. Despite several efforts, no legislation to provide Hongkongers a pathway to residency has successfully become law. In the latest effort—a very modest bill to allow in a few thousand Hongkongers each year—a single senator blocked its passage, and now a legislative committee is close to rejecting its inclusion in a larger legislative package. These bills have been bipartisan efforts. Hongkongers are, on average, a relatively skilled and prosperous bunch, and the US is in the midst of a labor shortage. Logic suggests Hongkongers should be welcomed with open arms by those of all political stripes. So what has prevented the US Government from doing so?
The high-profile national security case involving a number of pro-democracy figures has largely been transferred to Hong Kong’s High Court, with 44 defendants committed to the Court of First Instance for trial or sentencing. Dozens of defendants have spent more than a year behind bars as committal proceedings were repeatedly adjourned. Principal Magistrate Peter Law on Monday moved 27 democrats to the High Court, where they could face up to life in prison over an alleged conspiracy to commit subversion in connection with an unofficial legislative primary election held in July 2020. Committal proceedings began last July and were adjourned numerous times in the months since. The accused included former law professor Benny Tai, prominent activist Joshua Wong, former lawmakers, ex-district councillors and other activists, who organized and participated in the primary with the aim of gaining a controlling majority in the legislature.
Six people have been arrested in Hong Kong as authorities moved to restrict public commemoration of the Tiananmen Square massacre. Saturday was the 33rd anniversary of the highly sensitive incident in which China’s rulers crushed peaceful protests with tanks and troops. Until recently, Hong Kong was one of the few Chinese territories which commemorated the event. But Beijing has effectively banned the city’s annual public vigil. Hong Kong Police confirmed five men and one woman had been arrested in the vicinity of Victoria Park, where a candlelight vigil marking the 1989 crackdown in Beijing would have been held. The six are now in police custody.

Taiwan
Although China’s threat to seize Taiwan by force has been in place ever since the Chinese Nationalist government and army fled to Taiwan in 1949 after losing the civil war on the mainland, Beijing had long focused on pulling the island into its fold with economic lure and political pressure. But many Taiwanese policymakers now believe that as the Chinese Communist party loses hope these measures will ever work and with its armed forces modernizing rapidly, Xi might opt for war soon. Taiwan came into renewed focus as an increasingly dangerous flashpoint just days after Biden’s inauguration last year when Chinese warplanes simulated missile attacks on a US aircraft carrier sailing in the vicinity of the country. Over the following months, China then boosted the tempo and size of fighter jet and bomber sorties near Taiwan.
It is wrong to label Taiwan’s main opposition party the Kuomintang (KMT) as being pro-China as it has always been pro-US and is dedicated to defending the island though also to talking to Beijing, its chairman said in Washington. The KMT ruled China until fleeing to Taiwan in 1949 after losing a civil war to the Communists. It has traditionally favored close ties with Beijing, which has increasingly set it at odds with most Taiwanese, who feel little in common with autocratic China. The KMT badly lost presidential and parliamentary elections in 2020, having failed to shake accusations from the governing Democratic Progressive Party it would sell out Taiwan to Beijing.
A civic group in Taiwan unveiled a replica of the “Pillar of Shame” statue honoring the victims of the 1989 Tiananmen Square incident on its 33rd anniversary on Saturday. The original sculpture created by a Danish artist had been on the University of Hong Kong’s campus since 1998. Memorial services were held in front of the statue every year. However, the university removed the statue last December following a series of arrests under the territory’s national security law that is designed to clamp down on anti-government activities. With permission from the Danish creator, the civic group in Taiwan has reproduced the statue using a 3-D printer. About 500 participants, including Hong Kong people living in Taiwan, observed a silent prayer for 64 seconds from 8:09 p.m. that represented June 4, 1989.

Xinjiang
Several European lawmakers are pushing to designate human rights abuses against Uygurs and other ethnic Muslims in Xinjiang by China as “genocide.” The resolution will be presented to the European Parliament this week. The parties entred negotiations on Tuesday to finalize the text of the resolution, which will be reviewed on Wednesday and hopefully put to a vote on Thursday. Four of the biggest parties in the European Parliament, the center-right European People’s Party (EPP), the center-left Renew Group, the Socialist and Democrats (S&Ds) and the right-wing European Conservatives and Reformists, are likely to back the motion, giving a high chance of it passing, according to the South China Morning Post.
Some time ago in a major city in eastern China, a letter was hand-delivered by a Uyghur young man. The young man addressed the letter to the world outside China. The recipient of the letter, a non-Chinese citizen in eastern China, in turn shared it with me at the author’s request. At the risk of great personal harm, the author insisted that the letter be translated, edited, and published in English. After independently confirming the identity of the letter-writer, I agreed to do this. In the letter, the author describes how his life has been shattered by the mass internment campaign that has swept up Uyghurs from across the country, trapping them “in the darker world of Xinjiang.”
It’s been over five years since I’ve seen my mother. At a banquet for my cousin in the village of Karasu, in the Yining district, they arrested her and took her away for questioning. My younger brother waited outside for her for seven hours, but nobody told him his mom wouldn’t be able to come home that day. After that, she disappeared for several months. We searched and searched, and finally we learned through some friends and coworkers that she was in a camp.

The China Debrief is a resource of the Victims of Communism Memorial Foundation.

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THE CHINA DEBRIEF MAY- ORIGINAL BRIEFING REVEALED

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False claims about sources of coronavirus cause spat ...
U.S.-China Relations
President Biden’s decision on Monday to try to align with Asian partners to form an economic bloc against China comes at a moment of frustration over his administration’s economic approach to Beijing, with some White House advisers pushing the president to move away from the Trump-era policies he criticized and others arguing that Mr. Biden risks being seen as weak on China if he relents. Some officials have grown frustrated that US trade relations with China are still defined by policies set by President Donald J. Trump, including tariffs imposed on more than $360 billion of products and trade commitments made during a deal the United States and China signed in early 2020.This week, Biden will join Modi in Tokyo at a meeting of the Quad, the US-backed coalition of “Indo-Pacific democracies” — India, Japan,
Australia, and the United States. The four Quad countries agree on one major goal: They want to counter China’s rise as the dominant power in Asia. But when it comes to the world’s most pressing crisis, the war in Ukraine, the Quad won’t have much to say because India, the odd country out, is still sitting on the fence. One reason for India’s refusal to join the global condemnation of Russia is practical: Moscow is its No. 1 military supplier. According to one study, as much as 85% of India’s major weapons are Russian made. If Russian President Vladimir Putin cut off those supplies, India would soon run out of spare parts for aircraft and missile systems.Time is running out for Beijing to reach a deal with Washington to prevent mass de-listings of Chinese companies whose shares trade on US exchanges. After more than a decade of standing in the way of US regulatory inspections of Chinese companies’ auditors, authorities in China have been unusually vocal in recent months about their desire to resolve what has become a major drag on overseas-listed Chinese stocks like Alibaba Group Holding Ltd. and Baidu Inc. The change in tone has come as a three-year countdown for China to comply with the Holding Foreign Companies Accountable Act of 2020 looks increasingly likely to be shortened. Striking and executing any deal would entail a lengthy process, and the new timetable could see US stock-trading bans for some Chinese companies starting as early as next March.

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NEW – FEBRUARY 17TH 2022 – THE CHINA DEBRIEF – ORIGINAL BRIEFING REVEALED

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U.S.-China Relations

The United States has accused China of failing to meet its commitments to the World Trade Organization (WTO) and says it is exploring new ways to combat aggressive Chinese trade practices. In its annual report on Chinese compliance with WTO rules, the Office of the U.S. Trade Representative said Wednesday that China isn’t keeping the promises it made to open its markets to foreign competition when it joined the 164-country Geneva-based agency in 2001. “China has instead retained and expanded its state-led, non-market approach to the economy and trade,’’ said US Trade Representative Katherine Tai. “China’s policies and practices challenge the premise of the WTO’s rules and cause serious harm to workers and businesses around the world.’’

The U.S. Secretary of State’s lightning visit to Fiji may be sudden, but not surprising. That Antony Blinken is the first U.S. Secretary of State to visit Fiji in 37 years reflects just how much has changed geopolitically. It is also an indication of Fiji’s influential role in this part of the world, being a strong, if not the strongest, Pacific ally of China, the arch-rival of the US in the Pacific. In what is an election year for Fiji, Blinken appeared keen to meet the Fijian prime minister Frank Bainimarama, who is known to be close to China, but he remains hospitalized in Australia after a serious operation, so the acting prime minister Aiyaz-Sayed Khaiyum plays host.

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NEW – FEBRUARY 11TH 2022 – THE CHINA DEBRIEF – ORIGINAL BRIEFING REVEALED

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Watch The Most Sensitive Material On The Internet ...
XI
U.S.-China Relations
China fell more than $213 billion short of its commitment to increase purchases of US goods and services that it made to then-President Donald Trump in 2020, according to a report released Tuesday. The commitment was made in what’s known as the Phase One deal, in which Beijing promised to purchase $200 billion more in American exports than it had in 2017, before a U.S.-China trade war began. Trump and Chinese President Xi Jinping both stopped escalating tariffs after the deal was signed. The deal required China to meet its purchase commitments by the end of 2021. While China was never on track to meet the target number, a new report from the Peterson Institute for International Economics gives the first complete picture of how much was purchased over the two-year period.The U.S. House of Representatives on Friday narrowly passed a multibillion-dollar bill aimed at increasing American competitiveness with China and boosting U.S. semiconductor manufacturing, despite Republican opposition. The Democratic-majority House backed the “America COMPETES Act of 2022” by 222-210, almost entirely along party lines. One Republican joined Democrats in voting for the measure and one Democrat voted no. Passage set up negotiations with the Senate on a compromise version of the legislation, which must pass both chambers before it can be sent to the White House for President Joe Biden’s signature. The talks could take weeks or months. The vote took place the same day as the opening ceremony for the Beijing Winter Olympics, amid criticism in Congress of the International Olympic Committee for awarding the Games to China. Human rights groups have long criticized China’s rights record, allegations China denies.The U.S. government on Monday announced restrictions on transactions with 33 Chinese organizations whose ownership is deemed to be “unverified,” and unsealed an indictment against a Shenzhen-based tech company already banned from supplying U.S. federal agencies. The Commerce Department’s new “unverified list” entries are primarily hi-tech manufacturers, including those that produce laser components and pharmaceuticals, government research labs, and two universities. U.S. companies seeking to export to entities on the list must obtain a license to do so. One of the listed schools, Southern University of Science and Technology in Shenzhen, figured into the indictment of a Massachusetts Institute of Technology professor accused of misrepresenting his relationship to China on funding documents. Charges in that case were dropped last month, when prosecutors said they did not have enough evidence.U.S. President Joe Biden extended Trump-era tariffs on imported solar energy equipment by four years on Friday, but in a major concession to installers, he also eased the terms to exclude a panel technology dominant among big U.S. projects. The decision represented a balancing act by the Biden administration to meet the demands of two important political constituencies: union labor, which supports import restrictions to protect domestic jobs, and clean energy developers keen to access cheap overseas supplies. The four-year extension of the tariff exempts so-called bifacial panels, which can generate electricity on both sides and are favored by large-scale developers, according to a White House announcement. That technology was nascent when the tariffs were first imposed by Trump, but it is now used in most large U.S. solar facilities.
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NEW – FEBRUARY 3RD 2022 – THE CHINA DEBRIEF – ORIGINAL BRIEFING REVEALED

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Communist China Dictator Xi Jinping Calls for Global QR ...
U.S.-China Relations
U.S. Trade Representative Katherine Tai is working to repair her relationship with national security adviser Jake Sullivan after a Situation Room confrontation in which she accused him — in front of colleagues — of undermining her in the press, people familiar with the matter tell Axios. The rare window on personal clashes inside the Biden White House also illuminates the tension between the president’s trade and national security advisers about how and when to execute aspects of their China strategy. Tai, formerly chief trade counsel for the House Ways and Means Committee, has taken pains to involve lawmakers and labor leaders as the Biden administration recalibrates the country’s trade agenda. A digital trade deal is an alternative to TPP and a way to show allies and partners the U.S. wants to engage in the region.China will suffer a greater loss than the United States from “tech decoupling” and trails its rival in key areas, Chinese academics have warned. In a report published by Peking University’s Institute of International and Strategic Studies on Sunday, researchers compared the development of China and the US in areas of competition between the two, including information technology, artificial intelligence (AI) and space and aerospace technology. “While the current US administration has not yet determined the boundaries of decoupling, certain consensus has already been formed in key tech areas such as chip manufacturing and AI,” the researchers led by institute president Wang Jisi said. The researchers said the U.S.’s decoupling strategy would also involve the forming of an “alliance of tech democracies” to completely isolate China.China has failed to meet its commitments under a two-year “Phase 1” trade deal that expired at the end of 2021, and discussions are continuing with Beijing on the matter, Deputy U.S. Trade Representative Sarah Bianchi said on Tuesday. “You know, it is really clear that the Chinese haven’t met their commitment in Phase 1. That’s something we’re trying to address,” Bianchi told a virtual forum hosted by the Washington International Trade Association. In the deal signed by former President Donald Trump in January 2020, China pledged to increase purchases of U.S. farm and manufactured goods, energy and services by $200 billion above 2017 levels during 2020 and 2021. Through November, China had met only about 60% of that goal, according to trade data compiled by Peterson Institute for International Economics senior fellow Chad Bown.The U.S. House of Representatives plans a procedural vote on Wednesday on a bill aimed at increasing U.S. competitiveness with China and supporting the U.S. chip industry, according to a source familiar with the decision. President Joe Biden’s administration is pushing to persuade Congress to approve the bill, which includes $52 billion to subsidize semiconductor manufacturing and research, as shortages of the key components used in autos and computers have exacerbated supply chain bottlenecks. If the procedural vote succeeds in the narrowly Democratic-controlled House, the full chamber would aim to vote on the full bill on Friday. House Speaker Nancy Pelosi last week said the 2,900-page bill, called the “America Competes” act, would “supercharge” investment in chips and boost U.S. manufacturing and research capacity, as well as advancing U.S. competitiveness and leadership.
 
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THE CHINA DEBRIEF – ORIGINAL BRIEFING REVEALED

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False claims about sources of coronavirus cause spat ...

Two U.S. Navy carrier strike groups are currently drilling in the South China Sea amid the latest show of force of Chinese aircraft into Taiwan’s Air Defense Identification Zone on Sunday. The Carl Vinson CSG and Abraham Lincoln CSG began dual-carrier operations in the South China on Sunday, the same day Taiwan said the People’s Liberation Army Air Force flew 39 planes in Taiwan’s ADIZ. The CSGs “will engage in joint operations to include enhanced maritime communication operations, anti-submarine warfare operations, air warfare operations, replenishments-at-sea, cross-deck flight operations and maritime interdiction operations to strengthen maritime integrated-at-sea operations and combat readiness,” the U.S. Navy said in a news release, adding that training will take place in accordance with international law in international waters.

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THE CHINA DEBRIEF – ORIGINAL BRIEFING

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China invents the digital totalitarian state - Big data ...

U.S.-China Relations
The second half of 2021 was marked by revelations of a sharp upturn in China’s strategic strength. Beijing stunned the Pentagon and the U.S. intelligence community in July by firing a hypersonic weapon, in a test that suggested the Chinese military could hit targets anywhere in the U.S. with nuclear weapons. General Mark Milley, chair of the U.S. joint chiefs of staff, reacted by saying the event was close to a “Sputnik moment” — in reference to the launch of an artificial satellite by the Soviet Union in 1957, which demonstrated Moscow’s growing prowess and intensified Cold War competition. However, as China’s tech knowhow grows, the pushback from Washington strengthens. In one recent example, the U.S. last month put China’s Academy of Military Medical Sciences and 11 affiliated biotechnology research institutes on an export blacklist, for allegedly helping the Chinese military to develop “brain-control” weapons.
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China’s ‘Sleeper Spies’ Apply For UK Special Visa Aimed At Hong Kong Citizens

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China is using spies posing as refugees under a visa programme for Hong Kong citizens, it has been reported. Chinese “sleeper spies” have applied for British National (Overseas) visas, according to Government sources. Sleeper spies are agents that infiltrate a country to stay there in the long term as a potential asset in the future.

Safe Haven!’ Biden Delays Deportation Of Hong Kong Residents ‘Deprived Of Freedoms’

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Joe Biden has signed a memorandum which protects Hong Kong residents living in America from being deported for at least 18 months. The US president justified the move by highlighting the “significant erosion” of rights and freedoms in Hong Kong.