DNI: Beijing Set for ‘Ideological Battle’ with U.S


China spreading communism to replace U.S.-led democratic, free market system (China is not spreading communism. Its system is socialism with Chinese characteristics instead of communism. US democracy is a mess now with previous government shutdown and potential shutdown less than three weeks later. The US is now carrying out a trade war against free market system – the reblogger).

BY: Bill Gertz
January 30, 2019 5:00 am

After decades of asserting China posed little threat, senior U.S. intelligence leaders on Tuesday warned Congress Beijing now represents the most significant challenge to American security as China prepares for ideological war against the U.S.-led democratic system (pure witch hunt! The US has been fighting the ideological war for decades by attacking China’s one-party democracy and human rights. China has not fought back as it can and has already won the war without fighting. Why shall China prepare to fight a battle it has already won? – the reblogger).

“While we were sleeping in the last decade and a half, China had a remarkable rise in capabilities that are stunning,” Director of National Intelligence Dan Coats told the Senate Select Committee on Intelligence. (The US has not been sleeping. It has kept on attacking China’s one-party democracy and human rights for decades – the reblogger.)

Major Chinese advances were the result of large-scale theft of American technology and other intellectual property, and inserting Chinese agents in U.S. laboratories to steal know-how for China. The theft ranged from automobile manufacturing to sophisticated software to military-related research and development information, Coats said (without being able to provide any evidence. China is able to catch up with the West in technology because first of all its system can give play to the talents of its wise and hard-working people. – the reblogger).

Coats, appearing with leaders from the CIA, FBI, National Security Agency, and Defense Intelligence Agency said China’s theft of U.S. technology is not limited to competing but to “gain superiority.” (China’s system is superior by far to US messy democracy. It is not worthwhile to compete with the US. – the reblogger)

Globally, China under President Xi Jinping is spreading its system in the developing world through an economic program called the Belt and Road Initiative. (It is natural for the US to fear that initiative. The win-win cooperation of that initiative will make poor countries rich so that they will no longer fear US bully. Then it will be even harder for the US to recover its hegemony. – the reblogger)

“It’s a serious issue that has to be dealt with,” Coats said, adding that “rule of law, international norms, and fairness in trade and international engagements is not the Chinese model.” (No, it is precisely Chinese model but not US model as China advocates globalization to conform with WTO rules while the US is conducting a trade war in violation of WTO rules. – the reblogger)

Coats in his prepared statement warned that China is preparing for a “coming ideological battle” with the United States.

“Chinese leaders will increasingly seek to assert China’s model of authoritarian capitalism (not authoritarian capitalism but socialism with Chinese characteristics, a one-party democracy – the reblogger) as an alternative—and implicitly superior—development path abroad, exacerbating great-power competition that could threaten international support for democracy (messy US liberal democracy with government shutdown? – the reblogger), human rights (US human rights for people to take the risk to go across 50,000 bridges in poor conditions? – the reblogger) , and the rule of law (US rule of law that allows criminals to have guns to massacre innocent people? – the reblogger),” he stated.

Xi and his advisers are imposing new dictatorial measures (no dictatorial measures but rule of law – the reblogger) at home while backing authoritarian regimes around the world (China opposes US attempts of regime change that may resulting in chaos and misery in victim countries such as Libya – the reblogger). The practice can be “corrosive to civil society and the rule of law,” the DNI said.

Xi also declared last year China will try to launch a program to reform the global governance system that Coats forecast will produce increased Chinese activism internationally and promote “a Chinese worldview that links China’s domestic vision to its international vision.”

“Beijing has stepped up efforts to reshape the international discourse around human rights, especially within the U.N. system,” he stated (Sad! The US has to oppose U.N. system in attacking China – the reblogger).

The Chinese are seeking to block international criticism of the communist system, and also to erode norms, such as the idea that the international community has a legitimate role in scrutinizing human rights abuses. China also is seeking to narrow the definition of human rights based on economic standards as part of the effort (as pointed above, China’s norms and human rights are better than those in US liberal democracy characterized by government shut down, 50,000 bridges in poor conditions, criminals being allowed to have guns to massacre innocent people, etc. – the reblogger).

The harsh assessment of the growing threat from China contrasts with previous annual threat briefings. For example, in February 2011 then-DNI James Clapper told a similar hearing that despite China’s growing military capabilities that pose potential threats, “what we always have trouble gauging is intent versus the capability.”

“Having said all that, my greatest concern, though, does not lie with a nation-state posing a threat to us as much as it is in the area of terrorism,” said Clapper who through public statements revealed himself to be a liberal political partisan after leaving office after the administration of President Barack Obama.

Coats said that countering Chinese activities will require exposing the practices, noting the two federal grand jury indictments on Monday against the Chinese global telecommunications company Huawei Technologies.

Huawei, an ostensibly private company closely tied to the government (Chinese private companies and even state-owned enterprises have autonomy of management; therefore, it is groundless to attribute the irregularities of a private enterprise to the government. – the reblogger), was hit with federal charges of stealing American telecommunications robotics technology from T-Mobile, and for violating U.S. sanctions law by covertly helping Iran to use the U.S. financial system to move more than $100 million (Assumption of guilt without court trial that allows the accused proper defense is against the most fundamental principle of the rule of law – the reblogger).

Coats said U.S. intelligence officials have been alerting American businesses to the Chinese dangers.

FBI Director Christopher Wray warned that Chinese intelligence activities are the most significant spying threat.

“The Chinese counterintelligence threat is more deep, more diverse, more vexing, more challenging, more comprehensive, and more concerning than any counterintelligence threat I can think of,” Wray testified.

In the past two years, the U.S. government has prosecuted three former U.S. intelligence officials on Chinese-related espionage charges, and indicted more than nine Chinese officials for computer hacking operations against U.S. companies (assumption of guilt without proper trial – the reblogger).

Wray said the American people are beginning to wake up to Beijing’s control over supposedly private Chinese businesses (not wake up but deceived by the officials’ lies – the reblogger).

“The lines between the Chinese government and Chinese Communist Party are blurred if not totally erased,” Wray said. “The lines between the Chinese government and state-owned enterprises, the same.”

Wray also said lines between the Chinese government and ostensibly private companies also are being erased—”and especially the line between lawful behavior and fair competition and lying and hacking and cheating and stealing.” (The US tries to erase the line to put its blame on individual specific case on China in general. That shows how deep those US officials have fallen into Thucydides trap –the reblogger.)

Defense Intelligence Agency Director Lt. Gen. Robert Ashley said Chinese products, such as semiconductors or microchips, pose a threat to the military supply chain used to build weapons systems. DIA is working to make sure weapons are not built with Chinese products purchased by U.S. suppliers that could pose a security risk of sabotage or remote hacking (pure witch hunt without evidence – the reblogger).

Ashley noted that in the past four years 13 U.S. academic institutions have shut down Chinese government-funded Confucius Institutes that have been used for both intelligence-gathering (innocent information gathering to better understand the US and its people. What’s wrong with that? – the reblogger) and influence operations (good influence for friendship between the two peoples. What’s wrong with that? – the reblogger) targeting universities. But the institutes remain “a global problem.”

“While we’ve closed down about 13 [institutes] in the U.S., there’s been about a 23 percent increase globally, in Asia and Europe and other places and there’s probably about 320-plus institutes that exist globally (and well-accepted globally – the reblogger).”

On Huawei, Ashley said the company is not as independent as other international companies, and cannot decide for itself whether to become a private firm or state-controlled company (willful confusion in order to lay the groundless blame on a specific independent company on China in general – the reblogger).

“That decision does not lie with Huawei,” he said. “It lies with the [Chinese Communist Party]; it lies with Xi Jinping in the way that they are starting to centralize greater the management of those businesses.” (If that is true, China will not be able to give play to the talents in those businesses so that it will not be able to catch up with and surpass the US and the US will not be in such panic as it is now. What the US fears most is that Chinese system is much more superior to enable China to rise far above the US. That is why the witch hunts, the lies and absurd attacks, with which the US is engaging in its ideological and trade wars against China. – the reblogger.)

The DIA director described the Chinese system as “authoritarian capitalism” (not authoritarian capitalism but socialism with Chinese characteristics, a one-party democracy – the reblogger) with the government and Party controlling Chinese companies and requiring they provide business and other information to Beijing.

Other threats highlighted by the intelligence leaders during the annual threat briefing include:

Source: Washington Free Beacon “DNI: Beijing Set for ‘Ideological Battle’ with U.S”

Note: This is Washington Free Beacon’s report I reblog here with my comments to entertain readers with the report’s absurd contents. I certainly disagree with the report’s views.

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Lies, Cover-up Cannot Deny Success of China’s Belt and Road


China’s investment in Asia often has great risks due to political instability in the countries it invests in. Myanmar’s suspension of the Myitsone dam project and Malaysia’s scrapping of the east Malaysia railway project are typical examples. However, in spite of the political instability, China has been successful in carrying out its Belt and Road initiative in Asia.

The Myitsone dam project started long before the beginning of Chinese President Xi Jinping’s Belt and Road initiative. It was planned to sell 90% of the electricity the project generates to China’s Yunan Province, but now Yunan has more than enough supply of electricity due to China’s rapid development of infrastructures.

However, the project has now become a Belt and Road one as it will provide power for Myanmar’s industrial development and thus facilitate removal of China’s labor-intensive industries to Myanmar where labor cost is very low.

Anyway, it is not a key project for Belt and Road that mainly aims at providing connection to the outside world for China.

For connection to the areas to the west of China, there may be three routes in which the railway link to Malaysia’s west coast to bypass the Malacca Strait is the last choice due to its long land route across three countries.

The best choice is a canal through Kra Isthmus to bypass Malocca Strait but with the greatest risk. The canal will benefit not only China but also other nations that use Malacca Strait as their major trade route to the west. If China funds the construction of the canal, it has to own the canal to obtain return to its investment but Thailand’s political instability make such huge investment very risky. Moreover, the canal may be nationalized like Panama Canal and Suez Canal.

The best choice seems to be a railway through Myanmar to the port at Kyaukpyu at the Bay of Bengal. China has already built oil and gas pipelines from Kyaukpyu to China’s Ruili and according to The Medi Telegraph’s report “China to develop deep sea port in Myanmar”, China has signed an agreement with Myanmar on the construction of a deep sea port at Kyaukphu with two deep berths.

It is obvious that the port will not be fully useful if it is only used for oil and gas freight to the pipelines. There must be a railway between Ruili and Kyaukpyu, which will not be such a huge investment as Kra Canal but will greatly benefit China and Myanmar. Politically, it is simple as it goes through only one country.

The railway and the port will make the port of Hambantota China is building in Sri Lanka an important transport hub for Chinese shipping to the Middle East, Europe and Africa. From that we see Chinese leaders’ vision in developing the port of Hambantota.

The ports in Sri Lanka and Myanmar under construction, the pipelines completed and the railway if built will be China’s successful 21st maritime Silk Road.

Western media simply ignored the pipelines and port at Kyaukpyu and spread the lies that China’s purchase of 80% shares in the company that has the lease of the port of Hambantota was forced asset-loan swap. They believe by such cover-up and lies they can convince readers that China’s Belt and Road is a failure.

Western and Japanese statesmen are not so stupid as to be deceived by the cover-up and lies. They now are interested in joining China’s Belt and Road or have other ways to invest in infrastructures in Asia and Africa that will ultimately benefit China in providing infrastructures and expanding market for China.

Even the United States has initiated a “Prosper Africa” strategy to contend with China in building infrastructures in Africa. But the United States is hard up. The dispute between President Trump and Congress over a small sum of $5 billion for the construction of a border wall should result in government shutdown! Poor America! Where will it obtain funds to build infrastructures in Africa? It even lacks funds to fix and rebuild its 50,000 bridges in poor conditions!

Comment by Chan Kai Yee on The Medi Telegraph’s report, full text of which can be viewed at http://www.themeditelegraph.com/en/shipping/2018/11/12/china-develop-deep-sea-port-myanmar-ebet6fyKi9LXtA6q16KIXO/index.html.


Skillful Wording of Title Eases Reuters Readers’ Panic at China’s Rise


Reuters report “More Chinese provinces cut growth targets this year as gloom spreads” makes its readers hostile to or afraid of China’s rise happy as its title gives the impression that there is widespread “gloom” in China.

If one reads the entire report, one realizes that the cut of growth target by quite a few Chinese provinces will only result in reduction of China’s GOP growth rate from 6.6% now to the range between 6% and 6,5% in 2019.

However, the title of the report eases some readers’ panic at China’s rise as they believe there is indeed widespread gloom in China.

One reader is so happy as to make the comment on the report: “And the gloom and slide will continue for China into 2019 and beyond. The brakes have failed.”

Obviously the reader only reads the title to believe that there is gloom and slide that cannot be stopped.

Such absurd comment entertains my readers and makes them laugh, but I still hope the reader’s panic at China’s rise will be eased though China will maintains 6+% growth rate and will surpass the US with this rate within a decade or two as US growth rate is much smaller.

After all, I want all my readers happy.

However, what if China has succeeded in switching from export- and investment-led growth to innovation-, creation- and consumption-led growth? The slowdown has been caused by the switching; therefore, China will resume quicker growth when it has succeeded in such a switch.

Then the reader had better avoid reading news about China so that he will be free from the panic. I want him happy, but China’s rise cannot be stopped however hard Western media have tried to spread the non-existing “gloom”.

Comment by Chan Kai Yee on Reuters’ report, full text of which was reblogged here yesterday.


China says U.S. should bear consequences of Venezuela sanctions


January 29, 2019

BEIJING (Reuters) – The United States should bear responsibility for the consequences of its sanctions on Venezuela, China said on Tuesday, after Washington imposed sweeping restrictions on Venezuelan state-owned oil firm PDVSA.

The latest U.S. sanctions announced on Monday appear to be aimed at pressuring President Nicolas Maduro to step down and to build on the momentum that has mounted in recent weeks against him at home and abroad.

Juan Guaido, the Venezuelan opposition leader who proclaimed himself interim president last week with U.S. backing, and who is supported by most Western countries, says Maduro stole his re-election and must resign to allow new, fair polls.

China has said it opposes unilateral sanctions.

Foreign Ministry spokesman Geng Shuang said historical experience showed foreign interference “only makes situations more complicated”.

“The relevant country’s sanctions on Venezuela will lead to the deterioration of conditions of people’s lives,” Geng told a regular news briefing in Beijing, referring to the United States.

“They should bear responsibility for the serious consequences from this,” he said.

China has lent more than $50 billion to Venezuela through oil-for-loan agreements over the past decade, securing energy supplies for its fast-growing economy.

But the financing dried up as the South American country’s economy began spiraling downward in 2015, pressured by plummeting oil prices.

The Trump administration had long held off targeting Venezuela’s oil sector for fear that it would hurt U.S. refiners and raise oil prices for Americans. White House officials had also expressed concern about inflicting further hardship on the Venezuelan people.

Reporting by Michael Martina; Editing by Robert Birsel

Source: Reuters “China says U.S. should bear consequences of Venezuela sanctions”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


More Chinese provinces cut growth targets this year as gloom spreads


Ryan Woo January 29, 2019

BEIJING (Reuters) – More Chinese provinces have cut their annual growth targets in 2019 than the year before, a sign of deepening pessimism among local governments amid weakening domestic demand and an prolonged trade dispute with the United States.

The lower regional targets reinforce expectations of a further slowdown in the world’s second-biggest economy this year, after 2018 gross domestic product expanded at its slowest pace in nearly three decades.

Of China’s 31 provinces, regions and municipalities, at least 23 cut their economic growth targets for this year, according to provincial announcements this month. In 2018, 17 provinces set lower targets.

Shandong, China’s third-richest province, has yet to announce its 2019 target.

Five provinces – Sichuan, Hebei, Guizhou, Gansu and Hainan – kept their targets unchanged from last year. That compares with 12 provinces that maintained their targets in 2018.

Only one province – Hubei – raised its target, encouraged by an emerging high-tech manufacturing sector.

“The new provincial targets reflect the challenges faced by China. Export-driven coastal areas are facing the risk of lower growth amid uncertainty from the U.S.-China trade war,” said Tommy Xie, China economist at OCBC Bank in Singapore.

“Western China will remain the key source of growth due to the rise of consumption and services,” Xie said.

The downward revisions also imply China will set a lower national growth target this year, probably in the 6-6.5 percent range, he added.

Growth cooled to 6.6 percent last year, the slowest pace since 1990, as a multi-year campaign to curb risky lending practices squeezed access to corporate financing, particularly for private firms. A longer-term effort to rein in polluting and low-value industries also hurt factory output.

Moreover, China’s vast services sector has lost steam, while an increasingly cautious consumer outlook dulled retail sales.

The trade dispute with the United States also hammered Chinese exporters. Export-oriented provinces such as Guangdong, Jiangsu and Fujian all missed their 2018 economic growth targets.

A recent Reuters visit to three once-thriving towns in Dongguan in Guangdong province showed clear signs of a slowdown. Scores of shops and restaurants were shuttered, some factories idled and many up for rent.

“Some provinces in southern China exposed to exports could feel a bigger impact from the trade war this year,” said Yu Pingkang, chief economist at Changjiang Pension Insurance Co in Shanghai.

“I personally believe the trade tensions could ease temporarily in March, but they won’t be resolved once and for all. The U.S. won’t easily give it up, and the pressure could come back in the (U.S.) election year of 2020.”

Chinese and U.S. officials are meeting in Washington this week seeking to end their bruising trade dispute, though sources say they are still far apart on some issues.

U.S. Treasury Secretary Steven Mnuchin said on Monday the United States expects significant progress in the talks, but the two sides will be tackling “complicated issues”, including how to enforce any deal.

Beijing may unveil more fiscal stimulus during the annual parliamentary meeting in March, including bigger tax cuts and more infrastructure spending, after a raft of growth boosting measures last year.

At the meeting, the government is expected to unveil a lower annual GDP growth target of 6-6.5 percent, policy sources previously told Reuters.

The government last year set a target of around 6.5 percent.

Last year, 15 provinces, regions and municipalities met or exceeded their growth targets, including Beijing, Shanghai, Zhejiang, Henan, Sichuan, Hebei and Hubei.

An almost equal number missed their targets. Among them, Inner Mongolia, Tianjin, Hainan, Heilongjiang, Jilin and Xinjiang fared more poorly than others, undershooting their goals by at least 1 percentage point.

Chongqing was the worst – missing its target by 2.5 percentage points.

Local officials said the municipality, which accounted for 2.3 percent of China’s $13 trillion economy last year, was weighed down by an ongoing restructuring of its industries.

Reporting by Ryan Woo; Additional reporting by Kevin Yao and Beijing Newsroom; Editing by Shri Navaratnam & Kim Coghill

Source: Reuters “More Chinese provinces cut growth targets this year as gloom spreads”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


U.S. charges China’s Huawei with bank fraud, stealing trade secrets


January 29, 2019

WASHINGTON (Reuters) – The United States on Monday charged China’s Huawei Technologies Co Ltd, its chief financial officer and two affiliates with bank and wire fraud to violate sanctions against Iran in a case that has escalated tensions with Beijing.

In a 13-count indictment filed in New York, the Justice Department said Huawei misled a global bank and U.S. authorities about its relationship with the subsidiaries, Skycom Tech and Huawei Device USA Inc, in order to conduct business in Iran.

In a separate case, the Justice Department also accused two Huawei subsidiaries of 10 counts of stealing trade secrets, wire fraud and obstructing justice for allegedly stealing robotic technology from carrier T-Mobile US Inc to test smartphones’ durability. Those charges were filed in the western district of Washington state.

Huawei did not respond to requests for comments on the charges.

T-Mobile had accused Huawei of stealing the technology, called “Tappy,” which mimicked human fingers and was used to test smartphones. Huawei has said that the two companies settled their disputes in 2017.

The charges in both cases add to U.S. pressure on Huawei, the world’s biggest telecommunications equipment maker.

The Trump administration is trying to prevent American companies from buying Huawei routers and switches and pressing allies to do the same. U.S. security experts are concerned that the equipment could be used to spy on the United States.

At Washington’s request, Huawei’s chief financial officer, Meng Wanzhou, was arrested in Canada in December and is now fighting extradition to the United States.

U.S. authorities accuse Meng of playing a lead role in the scheme to use subsidiaries to conduct business in Iran in violation of U.S. sanctions against Tehran.

Meng, who has denied the charges, is currently in Vancouver, staying in one of her family’s homes, as she awaits a decision from a Canadian court on the U.S. extradition request.

The arrest of Meng, who is the daughter of Huawei’s founder, Ren Zhengfei, ratcheted up tensions with China, which responded by arresting two Canadians on national security grounds.

Ren denies his company’s products would be used by the Chinese government to spy.

The charges announced on Monday come just days before U.S.-China trade talks are set to resume in Washington, although Commerce Secretary Wilbur Ross said the two cases are “wholly separate” from the trade negotiations.

FBI Director Christopher Wray said the cases “expose Huawei’s brazen and persistent actions to exploit American companies and financial institutions, and to threaten the free and fair global marketplace.”

He said that he is concerned about Huawei devices in U.S. telecommunications networks. “That kind of access could give a foreign government the capacity to maliciously modify or steal information, conduct undetected espionage, or exert pressure or control.”

Reporting by Diane Bartz, David Shepardson, Sarah N. Lynch, Karen Freifeld, Chris Bing, Joseph Menn and Andy Sullivan; Editing by Bill Rigby and Lisa Shumaker

Source: Reuters “U.S. charges China’s Huawei with bank fraud, stealing trade secrets”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


More Photos of China’s New FL-1 Large-payload, Long-endurance UAV





On January 23, I reblogged Jane’s 360’s report “China’s FL-1 MALE UAV performs maiden flight” dated January 22 with only one photo of FL-1. As mil.huanqiu.com provided more photos of the drone in its report “Courier drone? Maiden flight of China’s homegrown Feilong-1 (FL-1 or Flying Dragon-1) large-payload, long-endurance unmanned aerial vehicle”, I herewith provide the above 5 photos of the drone copied from mil.huanqiu.com.

From Jane’s 360, we know the drone has been developed by a private company Zhong Tian Guide Control Technology Company.

It is a dual civil and military drone for air freight, high-resolution ground observation, border patrol, marine search and rescue, forest fire fighting, etc. China’s private sector is making increasingly great contribution to China’s weapon development. That proves the wisdom of Chinese Communist Party’s socialism with Chinese characteristics that advocates supporting both state-owned and private enterprises.

It is entirely different from orthodox socialism that allows only public-owned enterprises and bans whatever private enterprises.

Comment by Chan Kai Yee on mil.huanqiu.com’s report, full text of which in Chinese can be viewed at http://mil.huanqiu.com/gt/2019-01/2916021.html.