Katyusha News Reference Thursday January 28, 2021

Himalaya Moscow Katyusha (RU) Ladin

I.The New Federal State of China News

1.On January 28, Beijing time, Xi Jinping presided over the meeting of the Political Bureau of the Central Committee. Xi admitted again at the meeting that there are “some problems” within the party, requiring Communist Party officials to “improve political judgment, understanding, and execution” and “implement the decision-making and deployment of the central authority”. The meeting also stresses that the supervision of “top leaders” at all levels should be strengthened in the context of the change of leadership. It is rarer to raise grassroots governance to the height of consolidating the party’s “governance foundation” and safeguarding the state’s “security of the regime,”, requiring all departments to maintain the authority of the central government. At present, it is still unknown whether it is Xi Jinping’s imposter present at the meeting. There are signs that Xi Jinping is impatient to wait for a new round of the anti-corruption campaign to eliminate political adversaries.

2.Senate Minority Leader McConnell urged President Biden on Wednesday to take a tougher approach towards the Chinese Communist dictatorship and avoid “competition to rejoin” the Iran nuclear agreement.

3.The British BNO visa channel for Hong Kong people will be opened on January 31. About 300,000 people are expected to leave Hong Kong through this policy. British Prime Minister Johnson said that the move “fulfills” the “deep historical ties and friendship” between Britain and the former British colony. The Ministry of Foreign Affairs of the Communist Party of China said that it no longer recognizes the BNO passport.

4.On the evening of January 28, China Unicom issues an announcement confirming that the regulatory department of the New York Stock Exchange resumes the delisting process of its indirect holding, subsidiary, China United Network Communications (Hong Kong) Co Ltd. The American depositary receipts of the firm have been suspended from trading on Jan 9, 2021. 

5.On January 26, the National Research Council of Canada submitted its report to Parliament. The report shows that in May last year, just one week after Canada and Communist China signed an agreement to cooperate in the development of vaccines, the Communist blocked the export of vaccine samples to Canada. Conservative Party and experts in Canada criticized Trudeau’s government’s choice of cooperation with Communist China as tantamount to “dancing with wolves” and being extremely foolish. 

6.The Conservative Human Rights Commission of the United Kingdom released a new report (PDF) summarizing thecrackdown on human rights by the Communist Party between 2016 to 2020 after the visit of China Leader Xi Jinping to the United Kingdom. The report points out that Communist China is currently oppressing ethnic minorities in Xinjiang and Tibet, undermining Hong Kong’s high degree of autonomy, and more scholars and human rights groups agree that persecution of Uighurs is equivalent to “genocide”. The report urges the British government to re-examine its relationship with the Communist and to defend its own values and national interests.

7.New data released by the Ministry of Finance of the Communist Party of China on Thursday show that Communist China is facing a severe debt challenge. In 2020, the balance of government debt surged to 46.55 trillion yuan, accounting for 45.8% of GDP, which is much higher than 38.5% in 2019. Some scholars have pointed out that local governments have been blindly pursuing the speed of economic growth for a long time, borrowing in large numbers, causing economic bubbles, and suggesting that the GDP growth target be permanently canceled as soon as possible, and stabilizing employment and controlling inflation as the main goals of macro policies.

8.After the implementation of the “Hong Kong version of the National Security Law”, Vanguard, the world’s second-largest asset management company, and Elliott Management, a U.S. hedge fund, have moved out of Hong Kong. The Financial Times revealed that financial regulators such as the Hong Kong Securities and Futures Commission, the Monetary Authority, the Financial Services & Treasury Bureau, the Financial Services Development Council, and other regulators are asking questions about the reasons for relocation. This is unusual, but no matter how much effort to retain people, Chinese communist rule has undermined the foundation of Hong Kong as a financial center.

9.The rates of housing loans in Guangzhou have risen across the board, and interest rates have risen by about 15 basis points, and the approval is not guaranteed. Mortgages in other major cities are also ready to move and tighten mortgages. It is reported that the four major banks, the industrial and Commercial Bank, Agricultural Bank, Bank of China, Construction Bank, have been interviewed by the central bank a few days ago, “but it is not clear about the specific level of the interview.” The real estate associated with mortgages is the largest and potential crisis with a huge impact (gray rhinoceros) on the Chinese economy. Any tiny events on the ground can cause the economy to collapse.

10.The Ministry of Industry and Information Technology of the Communist Party of China said on Friday that it will develop 15 electronic component manufacturers with revenues of more than $1.6 billion by 2023. Outsiders believe that this policy will follow the model of “big refining chip”, which finally defraud huge subsidies

11.A new poll shows that Hong Kong people are less trusting of Chinese novel coronavirus vaccines than those made in Europe and the United States, with fewer than 30% of people questioned in a survey finding China’s Sinovac vaccine acceptable

12.The Communist Party of China and the European Union announced the completion of the negotiations on the investment agreement on December 30 last year. The Communist Party of China has hyped the result under the title of “a happy New Year gift”, but the agreement has been questioned by all parties in Europe. German Chancellor Merkel, who actively promoted the agreement, and her party, the CDU, were exposed to have pecuniary relations with Huawei.

13.In his speech on Thursday, Indian Foreign Minister Subrahmanyam Jaishankar said, “India-China relations are really at a crossroads.” He also said: “The choices made will have a profound impact, not only for both countries, but also for the whole world.” Jaishankar ‘s words are interpreted as New Delhi’s position on Communist China will become tougher.

14.Two former UEC-Saturn engineers have recently sentenced to four and three years in suspended prison terms for circumventing the Federal Service for Technology and Export Control (FSTEC)’s provision, by providing engine manufacturing technology to Communist China, a court in the city of Rybinsk, Yaroslav region, Russia, ruled. It is the latest case in which Russian scientists have been sentenced for supplying technology to the Communist party. Russia has stepped up its efforts to prevent the flow of high end, sensitive technology to China.

II. World News

1.Republican Attorney General Patrick Morrissey wrote to the President Biden Wednesday, warning that they are willing to take legal action if the government or federal agency exceeds their mandate in any capacity.

2.Former Prime Minister Malcolm Turnbull said Friday that Australia needs to stand firm and defend its interests in the face of increasing pressure from the Communist Party of China.

3.U.S. Secretary of State Antony Blinken spoke to Philippine Foreign Minister Teodoro Lochin on Wednesday night Washington time, reiterating that a strong American-Philippines alliance is essential for a free and open Indo-Pacific region. In a subsequent statement, he stressed the importance of the United States-Philippines Mutual Defense Treaty for the security of the two countries, saying that the treaty clearly applies to situations when the Armed Forces of the Philippines, government vessels, and aircraft are attacked in the Pacific Ocean, including the South China Sea.

4.The U.S. gross domestic product (GDP) shrank by 3.5% in 2020 due to the CCP virus outbreak, the worst performance since 1946, the U.S. Department of Commerce reported on Thursday.

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