Foxconn: election interference or tax probe?
...and China Coast Guard rams Philippines’ ship | October 23, 2023
Dear reader:
Here’s something you don’t read about every day: Michael Pillsbury is a former U.S. government official and author of The Hundred-Year Marathon, which, according to its publisher, “reveals China’s secret strategy to supplant the the United States as the world’s dominant power, and to do so by 2049.” Pillsbury is often called a “China-hawk” and is sometimes credited with shaping the China policy of the last two years of the Trump administration. Trump loves strongmen, and it looked like he might have found a way to get along with Xí Jìnpíng 习近平 when he visited Beijing in November 2017, and touched shiny gold things in the Forbidden City. The idea that Pillsbury’s thinking is responsible for the change in mood at the White House is not absurd. So it’s quite surprising to read that today he attended a forum in Beijing run by the Center for China and Globalization (CCG), a Chinese think tank that has been accused in American media of being directed by the United Front Work Department, a propaganda, networking, and lobbying group run by the Communist Party to generate support among overseas Chinese and the general population of foreign countries. Even more surprising, Pillsbury gave a speech in which he argued strongly in favor of the One China Policy, and criticized increased American military activities with Taiwan, and former Secretary of State Mike Pompeo’s proposal to formally recognize Taiwan. He also spoke positively of communication, and mutual visits and exchanges by American and Chinese officials. But as for the future: he is not an optimist. You can read a transcript of Pillsbury’s speech or listen to a recording of it here, via Pekingnology, a newsletter run by a staffer at CCG. There’s just over a week to go to our NEXTChina conference in New York. Come meet me and our team there on November 1 and 2 and take part in the best-informed discussions on China you’ll hear in the U.S. Our Word of the Day is: Foxconn (富士康 fùshìkāng), a.k.a. Hon Hai Precision Industry Co. Ltd (鴻海精密工業股份有限公司 hónghǎi jīngmì gōngyè gǔfèn yǒuxiàn gōngsī). If you’re not already a subscriber, sign up for our Daily Dispatch, or our free Weekly. |
Jeremy Goldkorn
Editor-in-Chief
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CURRENT AFFAIRS
Apple contractor Foxconn hit with tax and land-use probe in China |
Is he the target? Terry Gou, a 72-year-old billionaire and founder of iPhone maker Foxconn, campaigns for his presidential bid in Taipei, Taiwan, on October 18, 2023. Photo by Jameson Wu, EYEPRESS. |
Chinese authorities have launched a probe into Taiwan-based Foxconn, the world’s largest manufacturer of iPhones.
Some think this constitutes election interference. The probe comes just a few months after Foxconn’s billionaire founder Terry Gou (郭台銘 Guō Táimíng) announced he would run in Taiwan’s presidential elections, which will be held in January.
The news may also shake the confidence of foreign firms in China during an already uncertain time. Click through to read more.
Anthony Tao |
NEWS BRIEFING
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Here’s what else you need to know about China today:
The Philippines summoned its Chinese ambassador over two South China Sea collisions, the latest escalation over disputed waters in recent weeks. Manila accused a China Coast Guard (CCG) vessel of “dangerous blocking maneuvers” after it collided with a Philippines-contracted resupply ship around the Second Thomas Shoal yesterday morning. Two hours later, Manila said that a Chinese maritime militia boat “bumped” into a Philippine coast guard ship during the same operation to deliver supplies to a nearby outpost. The Chinese Foreign Ministry has issued a statement hitting back at the accusations, stating the CCG’s actions were “professional and restrained.” It also reiterated calls for the Philippines to tow away the “illegally grounded” warship stationed at the shoal, and to “stop stirring up trouble and making provocations at sea, stop making dangerous moves, stop groundlessly attacking and slandering China.” Philippine President Ferdinand R. Marcos Jr. today called for a special security conference over the collisions and ordered the Philippine Coast Guard (PCG) to immediately conduct a maritime investigation. An executive and two former employees of London-based WPP Plc, one of the world’s biggest advertising companies, have been arrested in China over allegedly taking bribes. The arrests are part of the raids carried out by Chinese authorities last week at the Shanghai offices of WPP-owned media agency GroupM, as Beijing steps up scrutiny of foreign businesses operating in the country. China plans to host its twice-a-decade financial policy gathering on October 30–31, according to Bloomberg. The closed-door meeting is expected to set medium-term priorities and to address ways to resolve financial risks, including China’s beleaguered property sector and mountains of local government debt. Chinese and Russian companies signed a raft of cooperation deals today at a regional conference in Shenyang, the capital of northeastern Liaoning Province. It’s the latest sign of deepening ties between the two counties, after Russian President Vladamir Putin and Chinese counterpart Xí Jìnpíng 习近平 spoke for three hours at the third Belt and Road Forum in Beijing last week. Chinese state media: Xinhua News Agency’s top story today has a very long headline: “In a collective conversation with members of the new leadership team of the All-China Federation of Trade Unions, Xí Jìnpíng 习近平 emphasized that [we] should uphold the Party’s overall leadership over the trade unions and organize and mobilize hundreds of millions of workers to actively participate in the great cause of building a strong country and national rejuvenation.” China’s trade unions are subordinate to the Communist Party, and are not allowed to organize independently. The People’s Daily print edition focuses on women today, with one article titled “The flower of women blooms in a new era,” subtitled “A Record of the leadership of the Party Central Committee with Comrade Xi Jinping as the core in promoting the development of women’s causes,” and another titled “The story of the General Secretary’s care and concern for ‘Half the Sky,’” a long polemic about Xi Jinping’s feminist credentials, but including dubious verbiage such as, “Every year at the National Two Sessions, female representatives and committee members performing their duties for the people are a beautiful sight.” Máo Zédōng 毛泽东 famously said that “women hold up half the sky” (妇女能顶半边天 fùnǚ néng dǐng bànbiāntiān). Under Xi’s tenure, the ruling Politburo failed to include a single woman among its 24 members selected in 2022, breaking a tradition of two decades. The current National People’s Congress, whose annual gathering is the major event of the Two Sessions, has only 790 women out of 2,977 representatives.
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THE CHINA AGENDA
The China Agenda for October 22–29: Newsom to China and NPC legislative meeting |
California governor Gavin Newsom. Photo by Gage Skidmore. |
From our new weekly preview of upcoming events for the week October 16–22:
California governor Gavin Newsom traveled to China on October 22. He is leading a delegation that will stop in Hong Kong, Shenzhen, Guangzhou, Beijing, Shanghai, and Jiangsu Province.
Australia’s prime minister Anthony Albanese is visiting the United States October 23–26 before he travels to China on November 4.
The 14th National People’s Congress (NPC) will hold its 6th legislative meeting on October 20–24.
The Party Central Committee is expected to hold a quinquennial plenary session soon, too. Learn more about this and other important upcoming happenings by clicking through.
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HISTORY
The American dentist who influenced Sun Yat-sen and his Nationalist Party |
Illustration for The China Project by Derek Zheng |
When Sun Yat-sen (孙中山 Sūn Zhōngshān) rose to speak at the Kuomintang’s First National Congress in Guangzhou in 1924, many in the audience — including Chinese communists — expected a vaguely socialist speech. What they got instead was a repudiation of Marxism.
Nobody in China had heard of William. But in the months leading up to the KMT congress, Sun became captivated by the obscure dentist’s ideas.
Those were different — and interesting — times, Harry Saunders writes: when an American dentist could speak across boundaries to China’s leading revolutionary.
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FROM THE NEWSBASE
Below are links from our NewsBase to other noteworthy reports published in the last 24 hours from and about China.BUSINESS AND TECHNOLOGY:U.S. companies are moving out of China Stock markets Banking Waste management U.S.-China tech war Graphite Local government debt AI Real estate and property development Foxconn Country Garden TikTok SCIENCE, HEALTH, AND ENVIRONMENT:Climate change Endangered animals POLITICS AND FOREIGN AFFAIRS:Corruption Espionage BRI ASEAN Taiwan California governor visit to China Japan Philippines Australia Israel-Hamas war Pakistan Serbia Estonia Russia Finland Cyberscams in Southeast Asia SOCIETY AND CULTURE:Anti-consumerism attitudes spread in China Film Books Senior living Sports
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