Katyusha News Reference – Thursday , January 7, 2021

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The New Federal State of China news

1 Mr. Xu Qinxian, then commander of the People’s Liberation Army (PLA), who refused to carry out orders from the authorities during the June 4th incident in 1989, died in Shijiazhuang, Hebei province, in the morning at the age of 85. After the Chinese Communist authorities issued a martial law on May 20th, 1989, the residents of Beijing blocked the advance of troops and only two groups of PLA could reach Tiananmen Square, and the 38th Army led by Xu Qinxian refused to carry out its mission after arriving 

2. On January 7, China Unicom announced that it had received further notice from the New York Stock Exchange that it had decided to restart the process to delist their depositary receipts. The announcement comes a day after China Mobile also confirmed that it had received a notice from the NYSE. Shares in the three major telecom operators plunged as US share trading opened with the news that evening.China Mobile fell more than 4%, China Telecom fell more than 13% and China Unicom (Hong Kong) fell nearly 10%.

Separately, after the close of trading on Friday, MSCI removes China Mobile, Telecom and China Unicom from several of its indices, including the MSCI All China Stock Index and the MSCI All Countries Global Index.

3 State and Defense Department officials and the Treasury Department are considering barring Americans from investing in Chinese Communist Party companies Alibaba and Tencent, US media said Wednesday. The plan is still under discussion, and is not necessarily implemented, the report said

4. Hong Kong police arrested 53 democrats on suspicion of subversion, but the legal nature of the action continued to be questioned on Thursday, when senior lawyers for both democracy and the establishment agreed that the primary voting system did not meet the conditions for conviction, such as “illegal means,” and that the arrests did not apply to “subversion”. Under the Hong Kong Territory Security Act, the maximum penalty for subversion is life imprisonment upon conviction

5. On January 7, China’s Communist Party’s State CCTV reported that the mainland’s demand for thermal coal for power plants and heating companies in Jilin, Shandong and other regions has increased as a result of the cold spell. The temperature of the Northeast Tonghua region has plunged into -30C, the consumption of electric coal in the major power plants such as Tonghua and Baicheng has gradually increased, and the coal stored in some power plants has reached the minimum warning line. At present, 15 provincial capital cities have set a record low for this winter, while the lowest temperature in seven provincial capital cities is below -20°C. In this extremely cold weather, the phenomenon of frozen coal is serious, which restricts the loading of vehicles to a certain extent. It is expected that there will be an obvious increase in the amount of transfer into the coal ports around the Bohai Sea, and the heating and power supply in all places will be put to test.

6.  The Brazilian government in São Paulo confirmed on Jan 7th that the late clinical testing of the CCP Sinovac vaccine in Brazil was 78 percent effective. This figure is lower than the 91.25% figure previously announced by the Turkish side. This is the reason for the delayed release of the vaccine efficacy data.

7. Chinese Communist Party economists have admitted that incomes of mainland residents affected by the pandemic have fallen by 25%, making consumption unlikely to pick up this year. The average household expenditure/income ratio was 75.6% in the first quarter of 2020, and the decline in income shows that many households are on the verge of living beyond their means. In addition, negative consumer growth in Mainland China in 2020 was certain, with the average forecast by many institutions showing that retail sales for the full year grew at a year-on-year rate of -3.8%.

8. The Chinese Communist party has seen a rebound in the CCP virus outbreak in many parts of the country. By January 6, a total of 90 confirmed cases and 114 asymptomatic infections had been reported in Hebei over the five days. A member of the National Health and Family Planning Commission’s high-level expert group and chief scientist at the Chinese Communist Party’s Center for Disease Control and Prevention before the outbreak, Zeng Guangqi, in the media briefing, said “Stopping the Spring Festival Movement is like giving up eating for fear of choking.” In 2019, nearly three billion domestic trips were made in the spring, with aviation revenue reaching about 9.3 billion yuan. The experts’ statements suggest that the party is likely to give up the health of ordinary people in exchange for important business interests.

9. Hong Kong Chronicle editor and manager Dr. Michelle Chan issues a statement on January 6 alleging that some Hong Kong network service providers have deliberately blocked users from accessing their websites. She accuses Hong Kong internet providers of conspiring with the government to block the internet and kill freedom of information. The website “Hong Kong Chronicle” records information onanti-customary demonstrations in Hong Kong and personal information of some pro-government figures

10.  Huawei is believed to have launched a public relations campaign in Australia aimed at ensuring it can participate in the deployment of 6G technology, with Huawei claiming that either it or other Communist Party companies will become leaders in the field. After Huawei and ZTE’s 5G efforts were banned in Australia, Communist Chinese companies rushed to layout higher-standard technology to get out of the sanctions.

11. On Jan7, 2021, the China Communist Party releases an official report on Xinjiang, said that between 2010 and 2018, the Uyghur population increased by 2,546,900, or 25.04 percent, the highest increase among all ethnic groups in Xinjiang, mainly due to the “lack of implementation of family planning”.

The report is issued to counter, Adrian Zenz, a German academic’s report who has long focused on Xinjiang issues.

In May 2019, Zenz concluded that the size of Xinjiang’s re-education camps could reach one million people. Since then, his findings have served as the basis for public opinion and some governments in the West to criticize China’s human rights policies. 

In July 2020, he releases a research report pointed out that the Chinese government has imposed forced sterilizations, abortions, and birth restrictions on Uighurs and other ethnic minorities living in Xinjiang in order to control the non-Han population

He argues that this has amounted to ” Ethnic Cleansing” as defined by the United Nations.

World News

1. On the morning of January 7, Senate Democratic Leader Schumer issued a statement urging Vice President Pence to immediately initiate the 25th Amendment, otherwise he would call on Congress to impeach President Trump. In his statement, Mr. Schumer said “Trump must not stay at the White House for another day and should leave today.” Mr. Schumer’s comments revealed fears about President Trump, amid news that he could take steps to purge corrupt officials by January 20. Several cabinet members and senior officials, including Secretary of Transport Zhao Xiaolan, have resigned to claim that they were affected by the Capitol incident. 

2. President Trump has barred Pence’s chief of staff, Mark Short, from entering the White House following Pence’s announcement of the Congressional confirmation of the Electoral College results. Short reportedly served as White House director of legislative affairs and advised Pence on the electoral vote-counting process.

3. Pompeo tweeted late Jan 6th that the storming of the U.S. Capitol was unacceptable and that lawlessness and violence will never be acceptable in the United States or around the world. He said he has always supported the right of everyone to peacefully protest for their beliefs and ideas. He also stressed that violence that puts the safety of others at risk is intolerable. Let’s quickly bring the criminals involved in this riot to justice. There are indications that Antifa members, disguised as protesters, blended into the crowd and stormed the U.S. Capitol.

4. U.S. federal prosecutors are preparing to file criminal charges against some of the individuals in the wake of the violent attack on the U.S. Capitol. Acting Attorney General Jeffrey Rosen said in a statement that the charges will be filed on late Thursday (Jan. 7) while investigators continue to gather evidence and make arrests in the coming days and weeks.

5. Secretary of State Mike Pompeo released a statement on Jan 6th announcing the U.S. Ambassador of the United Nations Kraft will visit Taiwan, although no further information was disclosed. The Chinese Foreign Ministry warned the United States that it would pay a heavy price for this.

The U.S. Department of State announced a bilateral political & military dialogue with Taiwan in the evening on the same day, the U.S. side attended by Assistant Secretary of State for Political and Military Affairs, Clarke Cooper by video conference. Taiwan’s Ministry of Foreign Affairs responded on Thursday morning (Jan. 7) Taipei time that the dialogue has been successfully completed, but the specific details and content were inconvenient to disclose based on mutual trust and diplomatic tacit understanding between Taiwan and the United States. Taiwan’s Deputy Defense Minister Chang Guan-Chung says that the dialogue was mainly about cooperation and discussion of a practical nature.

6. Facebook begins forcing WhatsApp users to share data with Facebook. WhatsApp is updating its Terms and Privacy Policy, and WhatsApp users will need to accept these updated terms after February 8 to continue using them. The WhatsApp data shared with Facebook upon approval of the new terms include account registration information (such as user phone number), transaction data, service-related information, information on how a user interacts with others (including businesses) when using the service, mobile device information, IP address, and may also include additional information identified in the Privacy Policy section or information obtained based on user consent after notification to the user. Zuckerberg has just announced that his Facebook and Instagram accounts will remain locked in President Trump for at least two weeks.

7. The Solarwinds massive hack was worse than expected, with the U.S. Department of Justice recently admitting that the email service provided by Microsoft 365 was compromised. In a statement, the U.S. Department of Justice acknowledged that 3% of all email boxes were hacked. But on Wednesday (Jan. 6), Ministry of Justice spokesman Marc Raimondi said, “At this time we have no indication that any classified systems were impacted.”

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