Bill Gates met China's President Xi Jinping; Exclusive: Who Is the Minister of the Propaganda Department, Li Shulei
Can Li Qiang cement Europe’s ‘de-risk not decouple’ strategy on China? China’s top naval scientist proposes a Star Wars-style ‘supership’
Welcome to this issue of The China Brief. Today is June 16, 2023. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
Who Is the Minister of the Propaganda Department of the Communist Party of China, Li Shulei
The Propaganda Department of the Communist Party of China is responsible for managing ideology, propagandizing thoughts, social public opinion, and news media. The newly appointed Minister, Li Shulei, was a subordinate to Xi Jinping during his tenure as Principal of the Central Party School from 2007 to 2012 and gradually became his confidant.
Born in Henan in 1964, Li Shulei is considered a prodigy amongst the current Political Bureau members. At the tender age of 14, he enrolled in the Department of Library Science at Peking University in 1978. When he was just 18 years old, in 1982, he pursued his postgraduate studies in the Chinese Department at Peking University. At the time of his postgraduate graduation in 1985, he was merely 21 years old. He further pursued his doctorate in the Chinese Department, and by the age of 25, he had completed his doctorate in 1989. Li Shulei's professional career has predominantly been with the Central Party School of the Communist Party of China, where he started as a lecturer in the late 80s, eventually becoming the Academic Dean by 2007.
In late 2007, Xi Jinping was elected as a Standing Committee member of the Political Bureau at the 17th National Congress of the Communist Party of China and concurrently served as the Principal of the Central Party School, where he encountered Li Shulei. Soon after, Li Shulei earned the trust and recognition of Xi Jinping, becoming a key aide and strategist. By the end of 2008, the then 44-year-old Li Shulei served as the Vice Principal of the Central Party School, ascending to the vice-ministerial level. At the end of 2012, shortly after Xi Jinping took over as General Secretary of the Communist Party of China at the 18th National Congress, Li Shulei's career advanced beyond the Party School, quickly ascending to various positions in Fujian, Beijing, and the Central Commission for Discipline Inspection. He returned to the Central Party School as Principal in 2020.
According to memories of old classmates from Peking University, Li Shulei, who started school early and whose classmates covered a range of ages due to the college entrance examinations being resumed after a decade-long interruption post-Cultural Revolution, was always the youngest. His cunning wisdom was hardly noticeable under the façade of his youthful appearance, reminiscent of the Red Boy from the "Journey to the West" who, though lively and cute on the surface, possessed profound magical powers discernible only by Sun Wukong's penetrating fiery eyes. Yet, Li Shulei applied his worldly wisdom and experience towards serving his country, often urging his old classmates to "immerse themselves in studying for the benefit of the nation".
Li Shulei's writing skills are admirable, with a series of essays to his credit, including "Why Travel Far", "Re-reading the Classics", and "My Observations on Guanyin", all of which are noteworthy works. Readers may gain a deeper, more vivid understanding of this new Minister of the Propaganda Department from the following excerpts from his article, "Reading and Officialdom":
"In ancient times, those who studied and excelled often served in official positions. Those who were officials were readers of poetry and literature. This is good and admirable. However, what I truly admire is not becoming an official after reading, but reading after becoming an official. If one reads books to become an official, it seems to reduce both the act of reading and officialdom to mere stepping stones; reading after becoming an official is a kind of elegance, a large personality, a true cultivation. Being an official is perhaps the profession with the deepest engagement with the world and the most interaction with people. With this profession, one can peruse the classics of all ages and places, how much wisdom and awareness must this bring. Ancient officials traveled thousands of miles on official business, maintained integrity, filled the walls with scrolls, handled mundane affairs in the hall during the day, and chewed the truth under the lamp at night, almost reaching the highest realm of life".
"The praise of this state seems a bit romantic. Being an official is indeed very grinding and often involves complex and dangerous interpersonal entanglements, often leading to daily worries and troubles. However, there are always those who can bear and overcome these worries in the officialdom, and there are always those who seek knowledge with a clear mind after these worries. It is said that Zeng Guofan spent half a day working and half a day reading throughout his life, even in the midst of intense military affairs, this can be regarded as a model".
The personnel layout of the Propaganda Department still follows the principle of "unity of opposites". The Vice Minister in charge of daily work, Hu He Ping (at the Minister level), was an old subordinate and colleague of Chen Xi, the former Minister of the Central Organization Department, at Tsinghua University and originates from Fujian. Vice Minister Shen Hai Xiong was an old subordinate of Xi Jinping in Zhejiang, Vice Minister Zhuang Rongwen is from Fujian, and the other two Vice Ministers, Sun Ye Li and Zhang Jian Chun, hail from Shandong, the ancestral home of Xi Jinping's wife Peng Liyuan, with Zhang Jian Chun and Peng Liyuan coming from the same county.
For the prodigy Li Shulei, as he himself has written, handling these "complex and dangerous interpersonal entanglements" should not pose a problem. However, we believe that Li Shulei has two real challenges.
Firstly, how to help hundreds of millions, if not billions, of Chinese people overcome the psychological trauma from the stringent pandemic control measures over the past three years, and the family casualties caused by the sudden easing of control at the end of 2022, as well as to restore their trust in the government.
Secondly, how to deal with the problematic project of "grand external propaganda". The so-called "grand external propaganda" refers to a series of propaganda activities and strategies aimed at promoting China's voice and image abroad, intending to enhance China's international image.
However, in reality, the works of grand external propaganda have limited positive influence in the West, instead becoming a tool for the Western world to despise and criticize China.
Within China, grand external propaganda distorts the content of Western media and attacks the Western world with vitriolic language. These exaggerated content are often selected by Western journalists, and after being reported in the West, they have aggravated the ideological conflicts between China and the West that were initially not apparent. In recent years, the grand external propaganda has been in tandem with the "Wolf Warrior Diplomacy" of the foreign affairs system, severely affecting the impression of Western countries on China.
Bill Gates met China's President Xi Jinping: reports
Deutsche Welle
Microsoft co-founder Bill Gates met with Chinese President Xi Jinping during his visit to Beijing. President Xi praised Gates as the first American friend he had met in Beijing this year and expressed hopes for continued friendship between the US and China. Gates' visit marks one of the first by a Western business leader since China lifted its strict COVID-19 controls. The Bill and Melinda Gates Foundation also announced a $50 million donation to support Chinese efforts to fight malaria and tuberculosis. Gates will also meet with global health and development partners during his visit.
Can Li Qiang cement Europe’s ‘de-risk not decouple’ strategy on China?
South China Morning Post
Chinese Premier Li Qiang's visit to Berlin and Paris could solidify the European Union's middle-ground approach to China, according to analysts. The trip comes as countries face growing pressure from the US and are seeking to boost relations with China. Germany has moved towards diversifying supply chains and reducing reliance on China, but Chancellor Olaf Scholz has clarified that decoupling is the wrong answer. The EU has adopted a similar approach of de-risking while progressing partnerships with Beijing. The strategy aims to ensure stable supply chains and minimise opportunities for adversarial economic coercion. Germany appears to want to retain China as an economic partner but pursue selective cooperation to minimise vulnerabilities, according to Austin Strange, an international relations teacher at the University of Hong Kong. Scholz's visit to China in November was seen as a potential threat to a united Western front, but Li's trip could show that cooperative pathways exist beyond decoupling.
Why is US Secretary of State Antony Blinken going to China?
Al Jazeera
US Secretary of State Antony Blinken is due to visit China on Sunday as the two countries attempt to rebuild relations following a tumultuous period of tension. Blinken is expected to focus on re-establishing communication channels and preventing further escalation between the two nations. Beijing and Washington have accused each other of confrontational behaviour in the South and East China Seas, and Taiwan Strait, and of increasing the risk that “strategic competition” between the US and China could turn into a collision. The visit is described as the “first stage of an exploratory process” to improve the relationship.
China’s top naval scientist proposes a Star Wars-style ‘supership’
South China Morning Post
Chinese Rear Admiral Ma Weiming has published a paper outlining the conceptual blueprint for a futuristic warship that he claims could "completely overturn the combat formation of naval fleets that has been in place for over a hundred years". The so-called supership would combine electromagnetic weapons, such as rail guns and laser weapons, with a powerful nuclear-powered electrical system. The ship's advanced technology would allow it to accurately defend against air attacks, engage in anti-submarine warfare, intercept missiles, and deliver precise strikes on both naval and land targets.
China loses to India, Japan for private equity funds as strained US ties hurt
South China Morning Post
Global private equity funds are turning their attention to India and Japan as geopolitical tensions between China and the US make deals more challenging and hurt stock market exits. According to EY consultants, India has become a major beneficiary of this shift in focus, with China-specific capital raising slowing down and relocating to India. Japanese companies are also seen as undervalued, and low financing costs make it an attractive market. The Asia-Pacific deal value fell 44% to $198bn in 2022, with Greater China suffering the biggest contraction in deal activity.
Singapore becoming magnet for Taiwan investment to hedge mainland China tensions
South China Morning Post
Taiwanese investment in Singapore has surged over the past two years as the city-state has become a refuge for money to hedge against the risk of a military conflict with mainland China. Direct investment flows from Taiwan to Singapore reached S$7.21bn ($5.4bn) in 2021 and S$6.1bn last year, up from just S$3.69bn in 2020, according to Singapore’s Department of Statistics. Taiwanese investment funds, companies and wealthy individuals favour Singapore over other countries because they believe it is politically “neutral” with options for residency, if needed.
AIIB to cooperate with Canada probe after former staffer allegations
Reuters
The Asian Infrastructure Investment Bank (AIIB) has announced that it will cooperate with a Canadian government investigation into allegations of Chinese Communist Party influence. The probe was triggered by the resignation of Bob Pickard, a Canadian national and former global communications chief for the AIIB, who claimed that the bank was subject to Chinese government influence. In response, the AIIB said it welcomes the investigation and will conduct its own internal review. The Chinese foreign ministry and embassy in Canada both denied the allegations and defended the bank's transparency and recruitment practices. The AIIB was established by Chinese President Xi Jinping in 2016 and has 106 member countries.
Micron to invest US$600 million on China plant despite Beijing’s ban
South China Morning Post
US memory chip giant Micron Technology has announced plans to invest $602m to upgrade its chip packaging plant in Xian, just four weeks after China imposed a partial ban on the company's products. Micron said it would buy the operations of its outsourcing partner, Powertech Technology, and add new buildings to the site to "better meet Chinese customers' demand". The move comes after China said it would ban critical information infrastructure providers from buying Micron products, citing national security risks.
Major banks cut China 2023 GDP forecasts as recovery falters
Reuters
Four major Western banks, UBS, Standard Chartered, Bank of America, and JPMorgan, have lowered their 2023 GDP growth forecasts for China due to a faltering post-COVID recovery. The banks now expect China's GDP growth to be between 5.2% and 5.7% this year, down from the previous range of 5.7% to 6.3%. Data from May showed that China's economy stumbled, with industrial output and retail sales growth missing forecasts. The banks expect Beijing to provide more policy support to shore up the recovery. China's central bank recently cut the interest rate on its one-year medium-term lending facility, indicating potential further cuts in benchmark loan prime rates.
‘Military conflict is probable’: Kissinger’s warning as Blinken jets to Beijing
The Sydney Morning Herald
US Secretary of State Antony Blinken is set to visit China this weekend, with the aim of showing that the two countries are committed to diplomacy and preventing their bilateral relationship from derailing. While no breakthroughs are expected, the visit could pave the way for further meetings between US and Chinese officials, including a potential meeting between President Joe Biden and Chinese President Xi Jinping later in the year. The visit comes as former US Secretary of State Henry Kissinger warned of the growing risk of military conflict between China and Taiwan.
China tightens controls on cross-border data transfers
Nikkei Asia
China has implemented new rules for cross-border data transfers, requiring companies to sign contracts with overseas recipients before transferring data abroad. These rules are part of China's efforts to tighten its control over domestic data and protect national security. The rules impact not only multinational corporations operating in China, but also Chinese companies listed overseas and those in data-rich industries such as retail, internet, healthcare, automotive, civil aviation, and finance. However, industry insiders have pointed out that many aspects of the rules remain vague, causing confusion and harm for some companies. The rules could also slow down progress for the digital economy in China.
Companies that process personal data involving more than 1 million people must undergo a security assessment if they want to transfer data overseas. However, the implementation of these measures has been slow due to a lack of manpower to handle assessment reports. The review criteria are also unclear, causing delays and misunderstandings between regulators and companies. Compliance from firms remains weak, with many companies hesitant to declare cross-border data transfers due to high compliance costs, difficulties in communicating with overseas data recipients, and regulatory uncertainty. In addition, some overseas data recipients, such as foreign internet giants, have refused to cooperate with China's data security reviews. The assessment process is clouded by uncertainty, and there is little likelihood that the authorities will make all the relevant information public.
The new rules have had a chilling effect on the private sector in China. Some companies have suspended domestic operations or faced hurdles in raising capital and listing overseas due to concerns about data transfers and violations of data regulations. Strained China-U.S. relations have also reduced the willingness of some U.S. companies to increase investment in China. However, despite the fear and uncertainty, some companies are still taking risks and transferring data abroad without passing security assessments, which could result in severe consequences in the event of a data breach or misuse.
US does not expect breakthrough in China ties from Blinken visit -Sullivan
Reuters
During Secretary of State Antony Blinken's visit to China, the U.S. does not expect any significant breakthrough in China ties, according to President Joe Biden's national security adviser. The visit will focus on explaining U.S. policy as the country seeks to manage tensions between the two largest economies in the world. A more significant diplomatic event for the U.S. will be the visit of Indian Prime Minister Narendra Modi to Washington next week.
Gates Foundation, City of Beijing Team Up to Battle Diseases
Bloomberg
The Bill & Melinda Gates Foundation and the Beijing city government have pledged to donate $50 million each to the Global Health Drug Discovery Institute to fight infectious diseases such as malaria. This comes as Bill Gates visits China for the first time since the start of the coronavirus pandemic. In a speech at the institute, Gates commended China for eliminating malaria within its borders and praised Chinese scientists for their efforts to combat the disease globally. Gates may also meet with Chinese leader Xi Jinping during his visit.
Why China should take a leaf out of Washington’s defence transparency playbook
SCMP Opinion
China should consider improving its military transparency to address concerns about its military build-up, according to an op-ed in the South China Morning Post. The article suggests that China could learn from the US, which has successfully communicated its military strategy and weapons procurement efforts to the world. The op-ed argues that China's lack of transparency, particularly regarding its nuclear arsenal, has raised concerns among other countries. The author suggests that China should develop a transparency strategy that mirrors the US' use of soft power marketing to ensure its continued rise as a superpower.
Taiwan crisis could erupt before 2027, U.S. lawmaker warns
Nikkei Asia
U.S. Congressman Mike Gallagher, known for his hawkish stance on China, has warned that conflict in the Taiwan Strait could break out "much sooner" than 2027. Gallagher, who chairs the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, expressed concern over China's potential growth rate slipping due to a declining birthrate and an aging society, which he believes could make President Xi Jinping more risk-acceptant in the next five years. He criticized the Biden administration's efforts to reengage with China, calling it "misguided and dangerous," and called for greater cooperation between the U.S., Japan, and South Korea to better restrict exports related to semiconductors. Gallagher also argued for a selective decoupling from China in key areas where the U.S. cannot afford to let the Chinese Communist Party have a high degree of leverage.
‘Life is a mess’: uncertainty clouds Chinese who chased Australia golden visas
South China Morning Post
Australia's "golden visa" programme, which offers permanent residency to wealthy migrants who invest at least A$1m ($680,000), is facing delays of three years or more, causing some migrants to abandon their plans. Introduced in 2012, the Business Innovation and Investment Programme (BIIP) was intended to boost the economy. However, a government review published earlier this year found that participants contributed less to the economy than the average Australian, earning lower incomes through capital returns on investments. Similar schemes have been scrapped in Canada, Britain and Singapore.
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