Joe Biden calls Xi Jinping a dictator; Exclusive: New and Former Secretaries of the Beijing Municipal Party Committee
‘Absurd and irresponsible’: China hits back after Biden calls Xi a dictator; China moves to shut a lifeline for cash-strapped local governments; Biden Says Xi Was Not Informed About Spy Balloon
Welcome to this issue of The China Brief. Today is June 21, 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.
Exclusive: New and Former Secretaries of the Beijing Municipal Party Committee
The former secretary of the Beijing Municipal Party Committee, Cai Qi, hailing from Fujian, has been promoted to a permanent member of the Communist Party's Central Politburo and the standing secretary of the Central Secretariat, effectively acting as the Prime Minister within the party. During Cai Qi's tenure, the Mayor of Beijing, Chen Jining, and the Deputy Mayor, Yin Yong, were both protégés of the then Minister of the Organization Department, Chen Xi, thus also aligned with the Fujian faction.
Chen Jining, born in 1964, could still serve a term as a permanent member at the Communist Party's 21st National Congress five years from now. Yin Yong, being five years younger than Chen Jining, could theoretically continue to serve for another ten years after the 21st Congress. Unsurprisingly, Chen Jining and Cai Qi, handpicked by Chen Xi from Fujian and personally cultivated by Cai Qi during his tenure as secretary of the Beijing Municipal Party Committee, will likely become leading figures of the Fujian faction.
Prior to the 20th National Congress of the Communist Party, the aforementioned three key leaders of Beijing all came from the Fujian faction. There were no intricate arrangements or severe conflicts like those seen amongst the current members of the Politburo and the main leaders of Shanghai. The fundamental reason for this lies in the fact that Beijing is the capital, and stability was essential during the period of Xi Jinping's consolidation of power. Chaos was not an option.
After the 20th National Congress, the personnel arrangements in Beijing have continued to prioritize stability. The newly appointed Secretary of the Beijing Municipal Party Committee, Yin Li, comes from Shandong, the hometown of Xi Jinping's wife, Peng Liyuan. Prior to his appointment as the secretary of the Beijing Municipal Party Committee, Yin Li served as the Secretary of the Fujian Provincial Party Committee and has a mutual understanding with Fujian officials. Having Yin Li succeed Cai Qi as the Secretary of the Beijing Municipal Party Committee does not appear as abrupt as when Chen Jining of the Fujian faction replaced Li Qiang of Zhejiang as the Secretary of the Shanghai Municipal Party Committee. The position of Mayor of Beijing was handed from Tsinghua University's Chen Jining to Yin Yong of the same faction, keeping this prestigious role within their circle. The newly appointed Secretary of the Beijing Municipal Party Committee, Yin Li, and the new Mayor, Yin Yong, both have connections to Fujian. The personnel arrangement did not intentionally create any conflicts, with the underlying rationale being the need for harmony within the capital.
Similar to the former Mayor of Beijing, Chen Jining, Yin Li is also a scholar-official. He attended Shandong Medical University from 1980 to 1988, earning both his bachelor's and master's degrees. From 1988 to 1993, he studied abroad in the former Soviet Union and obtained a Ph.D. in medicine, establishing himself as a public health expert.
During the outbreak of Severe Acute Respiratory Syndrome (SARS) in Beijing in 2003, Yin Li participated in an expert symposium organized by then-Premier Wen Jiabao. He contributed to the scientific epidemic prevention and was the only health expert present.
During the COVID-19 pandemic in 2020, Yin Li, as the Governor of Sichuan Province, led the epidemic prevention and control work in Sichuan. His performance in terms of virus containment, determining designated hospitals for treatment, and organizing medical teams to assist Wuhan was superior to other provinces.
However, soon after Yin Li took over as the Secretary of the Beijing Municipal Party Committee in November 2022, the nation's epidemic prevention and control was suddenly relaxed. The capital, Beijing, was briefly in a state of complete chaos, leading to medical overcrowding and a series of human tragedies. During this time, Yin Li, like most high-ranking officials, was largely absent from the public view.
Judging from Yin Li's performance during several epidemics, as a scholar-official, he is obviously different from regular officials. When conditions permit, he excels in his area of expertise. However, scholar-officials are first and foremost officials and differ from scholars. When conditions do not permit, scholar-officials, like most officials, prioritize politics.
Joe Biden calls Xi Jinping a dictator
Telegraph
US President Joe Biden has compared Chinese President Xi Jinping to a dictator and claimed that Xi was embarrassed when a suspected Chinese spy balloon was blown off course over US airspace earlier this year. Biden made the remarks at a fundraiser in California, stating that Xi didn't know the balloon was there and it was a great embarrassment for dictators when they don't know what happened. Beijing responded to Biden's comments, calling them "ridiculous" and expressing firm opposition. The remarks came after US Secretary of State Antony Blinken's visit to Beijing, where he met with Xi to discuss stabilizing US-China relations. While they agreed to continue diplomatic engagement, no breakthroughs were made during the visit. Biden stated that progress was made and that US climate envoy John Kerry may visit China soon.
‘Absurd and irresponsible’: China hits back after Biden calls Xi a dictator
The Sydney Morning Herald
China has criticized comments made by US President Joe Biden in which he described Chinese leader Xi Jinping as a dictator. The Chinese Foreign Ministry called Biden's remarks "extremely absurd and irresponsible" and said they violated diplomatic protocol. The criticism comes just after Secretary of State Antony Blinken's visit to China, which aimed to ease tensions between the two countries but did not achieve any solid results. The US and China have been engaged in a number of disputes, including over Taiwan and intellectual property theft.
Dysfunction and dissonance define U.S.-China relations
Japan Times
The current relationship between the US and China is characterized by deep mistrust, dysfunction, and dissonance. China sees the US and Western countries as threats to its ruling regime and believes that they aim to destabilize China's political system. The US, on the other hand, mistrusts China's political system and values, as well as its efforts to eject the US from the region and rewrite international institutions. There are concerns about China's growing track record of economic coercion, abrogation of international agreements, and rapid militarization. This negative spiral in relations has the potential to escalate into a kinetic conflict that could have significant consequences for Japan and the broader Indo-Pacific region. To decrease the chances of conflict breaking out, it is important to re-establish dialogue between Washington and Beijing. Middle powers such as Japan, Canada, Australia, ASEAN, and the EU can play a role in protecting their national interests by lobbying both countries to prioritize dialogue and cooperation. They can also invest in the rules-based order in the realms of security, trade, and international law to insulate themselves from the friction that will emanate from US-China relations.
In Hosting Modi, Biden Pushes Democracy Concerns to the Background
NY Times
US President Joe Biden has hosted Indian Prime Minister Narendra Modi at the White House, despite concerns over Modi's democratic record. Biden has said the struggle between democracy and autocracy is the defining issue of his presidency, but has concluded, as his predecessors did, that he needs India’s support, despite concerns over human rights. India is seen by the US as a bulwark against China, and Biden sees the relationship as “one of the defining partnerships of our age.” While Biden will raise human rights and democracy concerns with Modi, he will not publicly criticise him. The invitation also highlights India’s growing economic power, as India has just overtaken China as the world’s most populous nation and has the fifth-largest economy globally. India’s trade with the US is worth around $190bn a year, and could soon be worth $500bn. Critics have said that while India has an important role to play, the US should not overlook the erosion of democracy under Modi.
JPMorgan cuts around 20 Asia investment banking jobs
Reuters
JPMorgan Chase has cut around 20 investment banking jobs in Asia as dealmaking in the region slows. The majority of those affected are junior bankers, ranging from analysts to executive directors. The cuts are the second round of layoffs at JPMorgan in Asia this year, following the bank's decision to cut around 20 investment banking jobs in the first quarter. Other global banks, including Bank of America, Goldman Sachs and Citi, have also recently trimmed their investment banking teams in Asia.
Taiwan reports Chinese aircraft carrier sailed through strait
Reuters
A Chinese aircraft carrier group led by the vessel Shandong sailed through the Taiwan Strait on Wednesday, according to Taiwan's defence ministry. The Shandong had sailed in a southerly direction through the western part of the strait, and Taiwan dispatched "appropriate forces" to monitor the Chinese activities. China has stepped up military activities near Taiwan to assert its sovereignty over the island, which it claims as its own territory. Taiwan strongly disputes Beijing's claims and has vowed to defend itself if attacked.
Chinese Official Blasts US Over Taiwan After Blinken-Xi Meeting
Bloomberg
China has accused the US of distorting its "one China" policy on Taiwan, just days after a high-level meeting between Chinese President Xi Jinping and US Secretary of State Antony Blinken brought hope of stabilising ties. Yang Tao, a foreign ministry official, criticised the US for appending the Taiwan Relations Act and the Six Assurances to its one China policy, claiming they conflicted with Beijing and Washington's mutual agreement. China has long viewed Taiwan as a core interest and has been alarmed by President Joe Biden's repeated statements that the US would defend the island if attacked.
Exclusive: Taiwan on alert for Chinese-funded election interference
Reuters
Taiwan's government has warned that China will attempt to interfere in key elections in January by illicitly funding candidates using communications apps or group tours, according to internal security reports reviewed by Reuters. Beijing could also offer free trips to China to hundreds of Taiwanese involved in election campaigns ahead of the vote to "influence voting decisions", according to the reports.
Ant Group confirms it is working on own AI large language model
Reuters
Ant Group, a technology research and development team in China, is developing its own large-language model (LLM) called Zhenyi. The model is currently in development and there is no information on when it will be publicly released. China has been investing in the development of AI algorithms and has launched 79 large-language models domestically over the past three years.
TikTok prepares ‘Project S’ plan to break into online shopping
Financial Times
TikTok's Chinese parent company, ByteDance, is expanding its online retail offerings by selling products through the viral video app. The company is seeking new revenues that can justify its $300bn valuation ahead of an expected IPO in the next two years. ByteDance is building an online retailing unit to challenge rivals such as fast-fashion brand Shein and Pinduoduo’s sister app Temu. The company is also recruiting employees from Shein to boost its ecommerce business. TikTok's marketplace, TikTok Shop, has been successful in markets in south-east Asia, but it is still struggling to gain traction in the UK. ByteDance had previously attempted to launch shopping apps, but they were either shut down or abandoned.
Biden Says Xi Was Not Informed About Spy Balloon
NY Times
US President Joe Biden claimed on Tuesday that Chinese President Xi Jinping was unaware of the spy balloon that entered US airspace earlier this year. The balloon, which was carrying spy equipment, was shot down by an American fighter jet in a move that angered Beijing. Biden said that Xi's ignorance of the balloon's presence embarrassed him. This is the first public acknowledgement of the incident, which occurred in January and led to a rupture in US-China relations for months.
China moves to shut a lifeline for cash-strapped local governments
Japan Times
The Chinese government is moving to shut down a private funding channel for its financing arms, which will reportedly increase credit risks and default concerns for the country's cash-strapped local governments. As we have previously noted, China's local governments face escalating fiscal risks and have become increasingly dependent on LGFVs to finance infrastructure investment. While Beijing looks to reduce the sector's $9.5tn debt burden, the government still relies on spending to help prop up the country's ailing economy.
China State Media, Government Advisers Call for Economic Support
Bloomberg
Several prominent state media and top government advisers in China are calling for economic stimulus measures in order to revive consumption and spur investment. Expectations for more monetary and fiscal stimulus have risen following the People’s Bank of China’s surprise rate cut last week. However, officials have been slow to follow up with any specific support measures. Several investment banks have downgraded their growth forecasts for China in the past week amid mounting evidence of a slowdown.
East Asia needs another 189 years to achieve gender equality: WEF
Nikkei Asia
Countries in the East Asia and Pacific region are expected to take an average of 58 years longer than their global peers to close the gender gap, according to the World Economic Forum's (WEF) annual report. At the current rate of progress, it will take women in the region 189 years to catch up with men. The global average is 131 years. The report also found that progress in East Asia and the Pacific has been stagnant, with the gap widening by 0.2 percentage point in the past year. Japan is ranked 125th out of 156 countries, with a score of 64.7%.
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