【Epoch Times News, August 16, 2024】The Mainland Affairs Council of the Republic of China released the “Mainland China Situation Report” for the second quarter of this year on the 15th. The report highlights the continuing rise in debt by the Chinese Communist government, and the lackluster performance of the housing market, private enterprises, and foreign investments, painting a less than optimistic picture for China’s economic outlook.
The key points of the Mainland China Situation Report for the second quarter of 2024 released by the Mainland Affairs Council of the Republic of China on the 15th mention the convening of the “Third Plenary Session of the 20th Central Committee” by the Chinese Communist Party, which passed the “Decision on Further Comprehensive Deepening Reform and Promotion of Modernization in China.” It announced over 300 so-called “important reforms,” with a focus on “redistribution” and “strict regulation,” with a deadline set for completing the reforms by 2029.
The report states that Xi Jinping continues to emphasize strict governance of the Party and anti-corruption efforts. As of the end of July this year, 38 central and state-level officials have been investigated, and in the first half of the year, over 332,000 officials were disciplined, marking nearly a 30% increase from the previous year. The Chinese Communist Party continues to prioritize “Xi Jinping Thought” as the core of its party-building work, with grassroots party organizations exceeding a setup rate of over 99.9% by the end of 2023. Additionally, the CCP has strengthened national security, heightened concerns about foreign infiltration, demanded national secrecy, and enhanced social stability measures.
Regarding the Chinese mainland’s economy, the report mentions that foreign direct investment (FDI) continues to slow down, decreasing by 29.1% annually. Government debt keeps climbing, while the performance of the housing market, private enterprises, and foreign investments remains weak. Coupled with escalating economic and trade friction between China and other countries, the overall projections for China’s economic outlook seem less than optimistic according to various international organizations.
In the second quarter, there were successive incidents of xenophobic violence on campuses in mainland China, highlighting the use of xenophobic violence by lower-income people as a means of release under the pressure of economic downturn. The Chinese Communist Party has introduced new policies promoting tourism in Xinjiang to improve the negative image associated with “re-education camps.”
In terms of foreign relations, the defense ministers of China and the United States met on the sidelines of the Shangri-La Dialogue in Singapore in May to discuss bilateral ties and issues concerning the Taiwan Strait and the South China Sea. Meanwhile, Chinese Foreign Minister Wang Yi met with U.S. Secretary of State Blinken during the ASEAN series of Foreign Ministers’ Meetings in July, accusing the U.S. of intensifying containment and suppression against China. The U.S. expressed concerns about China’s support for Russia’s defense industry and emphasized the importance of maintaining peace and stability in the Taiwan Strait.
Regarding the Hong Kong and Macau situations, a survey indicates that over 60% of Hong Kong residents are unwilling to work in the Greater Bay Area; over 90% of talent imported into Hong Kong comes from mainland China. The Macau government announced that it will hold the Chief Executive election as soon as October. Xia Baolong, Director of the Hong Kong and Macau Affairs Office of the Communist Party of China, visited Macau to underscore the dominant role of the CCP in the “One Country, Two Systems” policy. Reports from the United States, the United Kingdom, and European countries have pointed out restrictions on freedom of speech and assembly, self-censorship concerning religion, inadequate protection measures against human trafficking, while the Chief Executive of Hong Kong mentioned political obstacles hindering Hong Kong’s application to join the Regional Comprehensive Economic Partnership (RCEP).
On the Taiwan front, the report mentions that after the inauguration of President Lai Ching-te and Vice President Hsiao Mei-chin on May 20th, the Chinese Communist Party has continued its campaigns against Taiwan with a combination of propaganda, military intimidation, economic coercion, gray zone intrusions, and legal battles. In response to President Lai Ching-te’s inauguration speech, the Taiwan Affairs Office threatened countermeasures and punishment. Apart from holding the “Joint Swords-2024A” military exercises around Taiwan’s periphery, the PLA vessels have repeatedly intruded into Taiwan’s waters around Jinmen and Mazu Islands, unilaterally suspending the preferential tax rates for 134 items on the Early Harvest List of the Economic Cooperation Framework Agreement (ECFA).
Furthermore, on June 21, the CCP issued the “22 Measures” for punishing Taiwan independence, aiming to intimidate the people of Taiwan with extraterritorial jurisdiction, lifelong prosecution, and absentia trials. The Taiwan Affairs Office and the Ministry of Public Security set up a special column and reporting mailbox on August 7 titled “Punishing Persistent ‘Taiwan Independence’ Elements According to Law,” emphasizing it is not targeting the majority of Taiwanese people. The report also observes that the CCP continues to actively promote integration development and uses exchanges for divisive tactics against Taiwan.
Moreover, the CCP opposes any official interactions and arms sales between the United States and Taiwan, criticizing U.S. officials for misinterpreting UN Resolution 2758. During multiple joint wartime alerts between the fourth and sixth months in the Eastern Theater Command, Chinese military aircraft and ships have continuously harassed the airspace and waters surrounding Taiwan, creating military deterrents against Taiwan.