Wang Yi on US' 'Four Fantasies' - Threats to 'Taiwan Independence Die-hards' - Personal Attacks on Pelosi - H1 Economic Data Review
Hi folks,
Last night I had the privilege of testifying before the US-China Economic and Security Review Commission on China’s zero-COVID policy. I am attaching my written testimony here for those interested.
Here are the stories and pieces that I found noteworthy in the Thursday, August 4, 2022, edition of the People’s Daily.
Page 1: There’s nothing on the front page about the furore over Nancy Pelosi’s visit to Taiwan. All of that is on Page 3.
At the top of the front page is another commentary drawing from Xi’s speech to provincial and ministerial-level officials. This one focuses on the importance of self-revolution and strict Party governance.
It says that the “whole Party must deeply realise that the challenges of governance, reform and opening up, the market economy development, and the external environment will persist for a long time.” And it warns against “the dangers of slackening, lacking competence, becoming disengaged from the people, and succumbing to inaction and corruption.” In this context, the commentary calls for adhering to self-revolution, eliminating all harmful factors that damage the Party’s advanced nature and purity and all pathogens that erode the Party’s healthy body” so that the Party does not deteriorate, change colour or flavour.”
The piece also says that it is important to enhance the political consciousness” of strict Party governance and maintaining a “zero-tolerance attitude” with regard to corruption. It also calls for being prepared for danger in times of peace, improving Party building, strengthening the Party’s “political leadership, ideological leadership, mass organisation and social appeal.”
Also on the page is a very long piece offering a review of China’s economic development in the first half of the year. Unsurprisingly, this article offers a positive review of China’s economic and social development. The article also praises Xi’s leadership and the guidance of Xi’s thought in managing the challenges in the first half. The piece begins by talking about the importance of adhering to the zero-COVID policy.
It then discusses the steps taken to support market entities:
This year, the central government’s transfer payments to local governments increased by about 1.5 trillion yuan, an increase of 18%, the highest increase in recent years
As of July 20th, the total new tax and fee reductions, tax refunds and tax deferrals exceeded 3 trillion yuan
In H1, RMB loans issued by financial institutions to the real economy increased by 632.9 billion yuan compared with the same period of the previous year
In H1, GDP increased by 2.5% year-on-year
In June, Shanghai's total economic output recovered to 94.3% in the same period last year
In Q2, the GDP of 26 of the 31 provinces maintained growth. From January to May, there were 11.514 million new market entities in China.
In H1, investment in high-tech industries increased by 20.2% year-on-year — the growth rate was 14.1 percentage points higher than the total investment.
In H1, 155,000 high-tech enterprises and ‘little giant’ enterprises accumulated 1.334 million valid invention patents, up by 23.4% over the same period last year
In H1, the added value of high-tech manufacturing above designated size increased by 9.6% year-on-year, 6.2 percentage points faster than that of all industries above designated size
After this, the piece discusses energy and food security and commodity prices. The piece talks about food and energy security-related challenges owing to the “complex and severe” international situation, which has led to increased “uncertainty” for China’s economic development. In this context, the piece references grain output data and energy policies. It says:
The proportion of clean energy consumption in total energy consumption increased by 1.3 percentage points year-on-year
In H1, the coal output of enterprises above designated size was 2.194 billion tons, up by 11% year-on-year.
The crude oil output of industry above designated size was 100 million tons; the natural gas output is 109.6 billion cubic metres.
As of June, the installed power generation capacity in China had reached 2.44 billion kilowatts
In H1, clean energy power generation increased by 12.8% year-on-year.
The piece adds: “the price of electricity and gas for residents in China has remained basically stable, which is in sharp contrast with the sharp increase in the prices of electricity and gas in the United States or in economies in Europe.”
On the new development pattern:
The article talks about developing the new development pattern. In this context, it references the regulation on building a unified domestic market and the changes to the anti-monopoly law.
The piece talks about focussing on old and new infrastructure. In H1, 29,000 new 5G base stations were built; 5G base stations now account for 17.9% of the total number of mobile base stations.
The piece re-emphasises the call for achieving a high-degree of technological self-reliance. It does so by quoting Xi, who had called for strengthening technology research and development, accelerating substitution through localisation, and “controlling the lifeline of science and technology in our own hands” “推动我国制造业转型升级，建设制造强国，必须加强技术研发，提高国产化替代率，把科技的命脉掌握在自己手中，国家才能真正强大起来.”
The article talks about expanding domestic demand. In this regard, the article talks about infrastructure investment, the use of consumption coupons in some cities, and preferential policies for supporting purchase of NEVs. (As always, the demand side action is really thin on substance.)
The piece then talks about dual circulation, referencing trade fairs, cross-border e-commerce and expansion of foreign trade, as examples of China being open to the outside world
The final section talks about maintaining historical confidence and strategic determination, while managing one’s own affairs well.
Third, a piece about the enthusiastic response of intellectuals and students after having “deeply studied” Xi’s speech to provincial and ministerial-level cadres. Just to give you a flavour of the kind of reporting this contains:
“Chen Peng, deputy dean of the School of Marxism at Shanghai Jiaotong University, is preparing lessons for the ideological and political courses in the fall semester. He said that in the new semester’s teaching, it is necessary to integrate this important speech of the General Secretary’s important speech with the spirit of the upcoming 20th National Congress of the Communist Party of China, and guide students to further learn and understand Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. 上海交通大学马克思主义学院副院长陈鹏正在为秋季学期的思政课备课。他说，在新学期的授课中，要把总书记这次重要讲话同即将召开的党的二十大的精神融会贯通起来，带领学生进一步学懂弄通做实习近平新时代中国特色社会主义思想.
The piece tells us that the reason that the country had the Party have been able to “new and major achievements” and “withstand risks and challenges from politics, economy, ideology and nature” lies in the fact that the General Secretary Xi Jinping has been at the helm and because of the scientific guidance of Xi Jinping Thought on socialism with Chinese characteristics in the new era. 党的十八大以来，党和国家事业之所以能够取得新的重大成就，之所以经受住了来自政治、经济、意识形态、自然界等方面的风险挑战考验，根本在于习近平总书记掌舵领航，在于习近平新时代中国特色社会主义思想科学指引。”
Sun Dongsheng from the Institute of Party History and Literature talks about the importance of using resources to help cadres and the masses more deeply understand the decisive significance of the two establishments.
Fourth, there’s a report about China’s services trade in H1. Xinhua English has the report:
China’s service trade value grew 21.6 percent year on year in the first half of 2022…Total trade value stood at 2.89 trillion yuan (about 426 billion U.S. dollars)...Service exports expanded 24.6 percent yearly to 1.41 trillion yuan, and service imports were 1.49 trillion yuan, up 18.9 percent from a year ago. Service trade deficit dropped 34.3 percent to 79.19 billion yuan in the first half. China's trade of knowledge-intensive services maintained steady growth in the period, rising 9.8 percent year on year to about 1.21 trillion yuan, said the ministry. Sectors such as telecommunications and information services saw rapid increases in exports, while insurance services were among the fastest growing areas in imports. The tourism service trade continued to recover, with its trade value expanding 8.2 percent from a year ago to 393.55 billion yuan in the first half of the year. In June alone, service trade value stood at 525.3 billion yuan, up 19.6 percent year on year.
Page 3: First, a report collecting comments from foreign analysts, political leaders and media outlets who are critical of Nancy Pelosi’s visit to Taiwan. Here’s an English report with supportive comments from foreign political parties.
Second, Wang Yi’s remarks on Pelosi’s visit. Global Times has an English version of the story. Wang said that “US politicians have become ‘troublemakers’ in China-US relations, and the US has become the ‘biggest destroyer’ of peace and regional stability in the Taiwan Straits.” The report adds:
“Wang urged the US to stop four fantasies, namely the fantasy of interfering in China's reunification process, of sabotaging China's development, of manipulating the geopolitical situation, and of confusing right and wrong. Taiwan is part of China, and realise that reunification is the historical trend that is inevitable, Wang noted. We will never leave any room for the ‘Taiwan independence’ secessionist forces or for the external forces to interfere. No matter in what way the US supports and condones ‘Taiwan independence’ secessionists, it will be doomed to fail, and it will only leave more ugly records of the US grossly interfering in other countries' internal affairs, Wang said.”
In the PD report, Wang says that “we will never allow any country to undermine China’s stability and development. It is totally futile to provoke trouble on the Taiwan issue and attempt to retard China’s development and growth and undermine its peaceful rise; such efforts will inevitably result in 头破血流/collission/conflict/bloody heads. — As an aside, this phrase was also used in Xi’s speech at the Party’s 100th anniversary and had led to much controversy back then too. 我们将国家和民族发展放在自己力量的基点上，也愿与各国和平共处、共同发展，但绝不允许任何国家破坏中国的稳定和发展。在台湾问题上挑衅滋事，企图迟滞中国的发展壮大，破坏中国的和平崛起，完全是徒劳的，必将碰得头破血流。
Xinhua English translated this as: “We put the development of our country and nation on the basis of our own strength, and are willing to coexist peacefully and develop together with other countries. But we will never allow any country to undermine China's stability and development. Provoking trouble on the Taiwan question in an attempt to delay China’s development and undermine China’s peaceful rise will be totally futile and will surely lead to total failure.”
Xinhua adds:
“The United States should not fantasize about manipulating geopolitical games. Seeking peace, stability, development and win-win cooperation are the common aspirations of regional countries. The introduction of the Taiwan question into the regional strategy by the United States, which inflates tensions and stokes confrontation, is against the trend of regional development and goes against the expectations of the people in the Asia-Pacific. This is very dangerous and stupid. The one-China principle has become a basic norm governing international relations and an integral part of the post-Second World War international order. What the United States should do is to immediately stop violating the purposes and principles of the UN Charter and stop playing the ‘Taiwan card’ to disrupt the Asia-Pacific region.” — (Quick thought: Since when does this become a violation of the UN charter? This is absurd logic.)
“The United States should not fantasize about distorting facts at will. The U.S. side claimed that China is escalating the situation, but the basic facts are that the United States first provoked China on the Taiwan question and blatantly violated China's sovereignty and territorial integrity. The U.S. side claimed that there was a precedent of the U.S. House speaker visiting Taiwan. Yet the basic truth is that past mistakes cannot be used as an excuse to repeat them today. The U.S. side claimed that it cannot restrain the Congress due to the separation of powers. But the basic norm of international law is that the United States must fulfill its international obligations, and key politicians should not misbehave.”
“It also claimed that China's pursuit of reunification is a ‘threat’ to Taiwan, but the basic logic is that Taiwan is an inalienable part of China's territory and the Taiwan question is purely an internal affair of China. It is lawful and justified that China upholds territorial integrity and opposes secession. I want to stress that the one-China principle is the key stabilizing force for peace and stability across the Taiwan Strait, and the three China-U.S. joint communiques are the real ‘guardrails’ for peaceful coexistence between China and the United States.”
Third, a report on Chinese Ambassador to the United States Qin Gang lodging a stern demarche and strong protest to the US National Security Council and the Department of State. Xinhua English reports Qin said that Pelosi’s visit was “egregious in nature” and has had a “severe impact on the political foundation of China-US relations.” The report adds:
“Noting that the one-China principle is the political foundation of China-U.S. relations and the most fundamental guideline for handling the Taiwan question, Qin said the U.S. Congress should strictly abide by the one-China policy of the U.S. government and not have any official contacts with China's Taiwan region. The U.S. side has repeatedly committed that its one-China policy will not change and that it does not support ‘Taiwan independence’, but now it had its House speaker visit Taiwan to provoke China, Qin noted. Where is the U.S. commitment to the one-China principle and the provisions of the three China-U.S. joint communiques, to not supporting "Taiwan independence," and to international obligations, Qin asked. He said facts have proved that it is the U.S. side, not others, that has reneged on its commitments, triggered the crisis, and undermined peace and stability across the Taiwan Strait.”
It further states:
“China will firmly respond with forceful counter-measures, Qin said, adding that all serious consequences arising therefrom must be borne by the U.S. side and ‘Taiwan independence’ separatist forces. Qin said that China firmly urges the U.S. side to stop playing the ‘Taiwan card’ and using Taiwan to contain China, immediately correct its mistakes, manage and eliminate the pernicious impact of Pelosi's Taiwan visit, refrain from further taking dangerous and provocative moves to infringe on China's sovereignty and security, and adopt real actions to honor U.S. President Joe Biden's ‘five noes’ commitment (i.e. not seek a ‘new Cold War’; not seek to change China’s system; the revitalization of its alliances is not against China; not support ‘Taiwan independence’; not look for conflict with China).”
Next, a report with comments from Ma Xiaoguang, spokesperson for the Taiwan Affairs Office of the State Council. Xinhua English reports:
“Ma Xiaoguang, spokesperson for the Taiwan Affairs Office of the State Council, made the remarks in response to a media inquiry on Pelosi’s visit to a human rights-themed venue in China’s Taiwan region and her meeting with so-called ‘human rights and democracy activists.’ These arrangements are just another farce staged by Pelosi based on her consistent anti-China, anti-Communist stance and ideological bias, with the cooperation of the Democratic Progressive Party (DPP) authorities, said Ma, noting that the activists she met and bolstered on Wednesday are long-known tools and puppets of U.S. anti-China forces. Highlighting the guise of so-called ‘human rights’ and ‘democracy’ on the Taiwan question, Pelosi is simply seeking her own personal gain, said Ma, adding that the U.S. midterm elections are approaching and there have been scandals around the Pelosi family.”
Next, MoFA’s Hua Chunying’s comments on Pelosi’s visit. This is a compilation of her remarks at the press briefing yesterday. Full English text here. She says that the visit was “dangerous and provocative” and motivated “purely for personal political gains.”
She said: “The nature of her visit is absolutely not about democracy, but about China’s sovereignty and territorial integrity. What she has done is definitely not about upholding or defending democracy, but a provocation and infringement on China’s sovereignty and territorial integrity. Many people have hit the nail in their comments about the visit. They pointed out that Pelosi’s dangerous provocation is purely aimed at reaping political capital for herself. It is an ugly political stunt through and through. In this ugly stunt, democracy has been reduced a cheap tool and a pretext that the US habitually uses. While Pelosi is the one performing this grandstanding act, it is the China-US relationship and the peace and stability in the region that is taking the toll. The kind of democracy referred to by Pelosi is like nothing but a robe with lice crawling all over it. It may look opulent from a distance, but couldn’t stand close scrutiny. From the Capitol riot, the death of George Floyd, the Robb Elementary School shooting, and America’s over one million COVID deaths, we see the hypocrisy and cold-bloodedness of the kind of democracy Pelosi referred to. We see the empty pledge and so-called strength of this type of democracy from what the US military has done in Iraq and Syria and from its retreat from Kabul. Being the number three figure in the US government, while problems with US democracy are piling up, Pelosi has been using taxpayer money and flying to Taiwan on US military aircraft to put on a political stunt. What she has done violates the international law and basic norm in international relations and jeopardizes other countries’ domestic affairs, sovereignty and territorial integrity.”
She said that the US “has been distorting, altering, obscuring, and hollowing out the one-China principle and trying to cross red lines and pushing the boundaries. It has used all means to play the “Taiwan card”, deliberately switched policy interpretations, and inserted its unilaterally concocted “Taiwan Relations Act” and “Six Assurances” part into the one-China policy. It has even at one point dropped key formulations such as “Taiwan is part of China” on the website of the State Department. The US has also brazenly sought to upgrade US-Taiwan relations, increase arms sales to Taiwan and embolden the ‘Taiwan independence’ separatist activities. The US government was supposed to rein in the attempt to visit Taiwan by its third highest ranking member. However, the US government has connived at this provocation. This is the root cause and truth behind the tensions in the Taiwan Strait.”
On countermeasures, she said: “As for the specific countermeasures that you are interested to know, what I can say is that what needs to be done will be done and these measures will be resolute, strong and effective. They will be continuously felt by the US side and ‘Taiwan independence’ forces.”
Finally, there’s a Zhong Sheng commentary on the page. The commentary says that the visit was a “deliberate move to create tension across the Taiwan Strait” and had “extremely sinister intentions.” The article says that Pelosi’s “cunning assertion” (狡辩称) that her visit does not contradict the US’ one-China policy and her false claim/fantasy (妄言) that US will not give up its commitment to Taiwan is in essence inciting Taiwan independence forces and an attempt to use Taiwan to contain China. 佩洛西狡辩称其窜访中国台湾地区“与美国政策并不矛盾”，妄言“不会放弃对台湾的承诺”，实质是挑动“台独”分裂，是美国企图利用台湾问题对中国进行战略牵制和消耗这一图谋的又一次曝光。这种拙劣的政治伎俩，充分暴露美国在台湾问题上的虚伪性.
The piece adds that the US “has become the biggest destroyer of peace and regional stability in the Taiwan Strait and the chief culprit for escalating tensions in the Taiwan Strait. It is legitimate and necessary for China to take countermeasures, which is the right of any independent sovereign state.” 佩洛西声称是为了“促进这个地区的和平”，但其窜访行径恰恰证明，美国已经成为台海和平和地区稳定的最大破坏者，是台海局势紧张升级的罪魁祸首。中方采取反制措施正当且必要，这是任何一个独立主权国家应有的权利.
The piece says that the visit was motivated by her desire to seal a “political legacy” for herself and that she has used Taiwan as a pawn. (This is an interesting narrative, tapping into the anxieties that one would assume exist among the Taiwanese elite and public.)
Towards the end, the piece says that the PLA is carrying out a series of joint military operations around Taiwan
This is a solemn deterrence in response to the recent negative actions of the United States on the Taiwan issue, a serious warning to the ‘Taiwan independence’ forces, and a demonstration of our strong determination, firm will and strong ability to defend national sovereignty and territorial integrity. 中国人民解放军正在台岛周边开展一系列联合军事行动，这是针对美方近期在台湾问题上消极举动采取的严正震慑，是对“台独”势力谋“独”行径的严重警告，有力彰显捍卫国家主权和领土完整的坚强决心、坚定意志、强大能力.
China's actions have fully demonstrated its responsible stance of maintaining peace and stability in the Taiwan Strait. The Chinese government has a strong ability to shape the strategic situation and environment for promoting national reunification, and to defeat any form of ‘Taiwan independence’ separatist acts. No intervention by external forces can succeed. 中方行动充分展现了维护台海和平稳定的负责任姿态。中国政府有强大能力塑造推进国家统一的战略态势与环境，有强大能力挫败任何形式的“台独”分裂行径，任何外部势力插手干预都不可能得逞.
Also on the page is a report about Wang Yi’s meeting with the Cambodian King.
A couple of useful reports on the Taiwan issue:
Factbox: Sanctions China has imposed on Taiwan over Pelosi visit
Taiwan decries China's 'illegitimate, irresponsible' live-fire military drills
White House Lobbies Democrats Against Bid to Deepen Taiwan Ties
Rage, Confusion, and Disappointment on the Chinese Internet follow Pelosi’s Taiwan arrival
China Starts Largest-Ever Military Drills Around Taiwan After Pelosi Visit
"Six major areas around the island have been selected for this actual combat exercise and during this period, relevant ships and aircraft should not enter the relevant waters and airspaces," state broadcaster CCTV reported. The exercises will take place in multiple zones around Taiwan -- at some points within just 20 kilometres (12 miles) of the shore -- and will conclude at midday on Sunday.”
Also, this is a good thread:
Page 4: A report about personnel changes at the State Council. Xinhua English has the report too.
Page 7: There’s a piece by Wang Yingjin, director and professor of the Research Center for Cross-Strait Relations at Renmin University of China. Wang basically talks about sanctioning “Taiwan independence die-hards.” In November last year the Taiwan Affairs Office of the State Council had warned that "the mainland will pursue criminal responsibility for Taiwan independence diehards in accordance with the law, to be effective for life.” In the list of names mentioned back then were Su Tseng-chang, Yu Shyi-kun and Foreign Minister Joseph Wu. On Wednesday announcing sanctions against organisations related to “die-hard elements.” These included: the Taiwan Foundation for Democracy and International Cooperation and Development Fund.
Wang writes that these sanctions:
First, “demonstrate the determination, confidence and ability of the mainland to oppose ‘Taiwan independence’.”
Second, “are important countermeasures against the increasingly severe ‘Taiwan independence’ provocation; and a powerful measure to maintain peace and stability across the Taiwan Strait and promote the peaceful development of cross-Strait relations.”
Third, are important in order to “guide the people on the island to choose the correct political stance”; so that they “draw a clear line and keep a distance from the ‘Taiwan independence’ separatist forces, and partner with those who support the peaceful development of cross-strait relations.” 三是有助于引导岛内民众选择正确的政治立场。尽管强化制裁并非针对岛内普通民众，但此举有利于在台湾社会形成正确的政治导向，帮助台湾民众辨别大是大非、看清大势大义，与“台独”分裂势力划清界限、保持距离，加入到支持两岸关系和平发展与祖国和平统一的队伍中来.
Fourth, counter the interference of external forces
Wang then says that the mainland has drawn up a list of “Taiwan independence diehards,” which includes more names than the three revealed earlier. Wang says that the mainland authorities will be publicising other names on the list in the future. He says that these names do not include ordinary followers, suggesting that the target is Taiwanese elite. However, he doesn’t give a timeframe for publicising the names. He then warns about potential punishments.
In November, the Taiwan Affairs Office had said that:
“China will enforce punishment on the people on the list, by not letting them enter the mainland and China’s Special Administrative Regions of Hong Kong and Macau. The blacklisted people will not be allowed to cooperate with entities or people from the mainland, nor will their companies or entities who fund them be allowed to profit from the mainland.”
Wang reiterates these threats for others who may be on the list, and adds the threat of taking criminal action against them. He warns:
“The list drawn up by the mainland has sufficient legal basis, and the implementation of the list also has sufficient judicial guarantee. The mainland can arrest the ‘Taiwan independence’ diehards and bring them to justice through bilateral or multilateral international criminal judicial assistance mechanisms. Even if some people cannot be arrested temporarily, they can be tried in absentia, convicted and sentenced according to law.” 大陆方面拟定清单具有充分的法理依据，执行清单也具有充足的司法保障。大陆方面可通过双边或多边国际刑事司法协助机制将“台独”顽固分子缉拿归案、绳之以法。即使有些人暂时无法缉拿归案，也可依法对其进行缺席审判、定罪量刑.
Page 17: On the international page, there’s the final Zhong Sheng commentary on the Uyghur Forced Labor Prevention Act. None of the arguments made in this are new.
This one goes back to the history of slavery in the US; issues related to immigration, human trafficking and forced labour in the US. In doing this, the piece cites US State Department data and the 2021 Federal Human Trafficking Report by the Human Trafficking Institute, along with many other soureces of information and research from the US.
The point being made is that “the United States should deeply reflect on its own serious and widespread human rights problems” and “not use human rights as an excuse to contain and suppress the development of other countries.”