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Chinese Communist Party Tightens Measures to Retain Power

Chinese Communist Party sends a clear message to those planning to invest in China. In 2021, China is becoming more radical

The Chinese Communist Party in the National People’s Congress has suspended the debut on the stock exchange of the gigantic Ant Group owned by Chinese businessman Jack Ma. The business group was preparing to enter the Hong Kong and Shanghai stock exchanges for close to $ 34 billion, which would make Ma one of the richest men in the world.  

According to the Chinese authorities, “a change in the regulatory environment meant that Ant no longer meets the listing conditions or disclosure requirements.”.

Jack Ma’s plan intended for the Ant Group to receive higher rates for transactions at the expense of state banks, which would also bear most of the risk. It also plans to create a digital currency, maintaining control over the stability of its payment system and having great power over the Chinese economy, which put Beijing on alert.  

China has made efforts to attract foreign investors, however, with the suspension to Jack Ma of what would be the largest IPO in the world, the Chinese Communist Party sends a strong message to investors. Despite belonging to this party, Jack Ma made comments attacking the banking system that is run by Beijing, creating a challenging environment that likely unleashed this second hit on the Ant Group in 2020, after the US proposed in October 2020 to include to this blacklisted conglomerate for its links with the Chinese Communist Party.  

While the Ant Group represents a national security threat to Washington and denounces alleged human rights violations, for Beijing Jack Ma’s business model represents a risk to the Asian giant’s economy, as it is not willing to give up control to a private company.  

Global actors play by China’s rules but not to mention the Communist Party. They rejoice in their new ties to the growing power and at the same time accept and normalize the gag that Beijing puts on them for negotiating with them. Governments and investors even exalt that China has left Marxist doctrines behind as they are now a great economic power, as China curtails off their freedom of expression or bargaining power, taking advantage of the fact that these naive forgets that communism goes beyond economic issues.  

Hong Kong, One Country Two Systems?

Regulatory impositions on Jack Ma reached Hong Kong, where the stock market has again seized Beijing’s power over Hong Kong. Investing in Hong Kong is no longer a matter of local rules based on basic law, but rather, entrepreneurs must assume the conditions of the Beijing totalitarian regime.  

It is evidence that “one country two systems” is not viable when you have the Chinese Communist Party involved. Beijing has been intensifying its control over Hong Kong since 2014 and with recent protests seeking freedom and democracy, China has made forceful decisions using all possible de facto and legal means to undermine the rule of law in Hong Kong.

Since the implementation of the National Security Law by the Chinese regime, the Hong Kong parliament has lost its powers since it now depends on the National Assembly, making Beijing able to persecute not only citizens but also parliamentarians who exercise incorrectly. of their seat, that is, they go against the provisions of the Chinese Communist Party, as happened with the recent dismissal of 4 pro-democracy legislators.  

WHO and Taiwan

On Tuesday, November 10, 2020, the Chinese Foreign Ministry praised the World Health Organization (WHO) for excluding Taiwan from the resumption of the session of the World Health Assembly. According to local press, Chinese Foreign Ministry spokesman Wang Wenbin boasted that the committee’s decision shows that the one-China principle is unshakable and claimed that pursuing such “unpopular proposals related to Taiwan is doomed to failure.”

At the same time, according to Deutsche Welle, Internet users were censored on Facebook, since the WHO restricted the full use of vocabulary regarding Taiwan in live broadcast.  

Before the resumption of the World Health Assembly, the United States, Taiwan’s diplomatic allies and some European countries delivered their requests to the United States WHO Secretary General Tedros in the hope that WHO would allow Taiwan to participate in the World Health Assembly as an observer, but in the end, Taiwan was not invited to participate.

On the other hand, Secretary of State Mike Pompeo announced new economic ties with Taiwan, prompting China’s reaction seeking to maintain military and economic control of the Indo-Pacific region. It should be remembered that the United States has intensified support for allied countries in Asia, including Taiwan, in order to counter the influence of the Chinese Communist Party. U.S. Secretary of State said that Taiwan “has not been a part of China”.

Spokesman Wang responded to Pompeo by reminding Pompeo ¨not to interfere with the relations of the strait and urged the United States to adhere to the one-China principle and the three joint China-United States communiqués, and suspending all forms of exchanges and official contacts with Taiwan and avoiding raising its relationship with Taiwan in any substantial way¨.

U.S. Secretary of State Mike Pompeo said that Taiwan “has not been a part of China”.

American investors have been in line with the rules of the Chinese Communist Party, even members of the Trump Administration maintain strong commercial ties with Chinese companies. In fact, President Donald Trump himself will have to answer to the Bank of China for a USD$ 211 million loan he made on his own behalf in 2012.  

However, the remarkable work of the United States Congress in denouncing and sanctioning China for religious minority abuses and economic practices has made companies more cautious about where and how to invest in the Asian giant. Some companies such as Apple, Lacoste and technological development have had to comply with regulations regarding the protection of human rights. In addition to the well-known case of Huawei, a technological giant banned in many countries thanks to the actions of the United States.  

Regarding the potential Biden government, it is expected that it will continue at least with the defense of human rights and the protection of the victims of Chinese communism. Business relations are likely to start opening but it is something that will develop depending on whether or not Biden achieves a majority in the Senate.  

American investors have been in line with the rules of the Chinese Communist Party, even members of the Trump Administration maintain strong commercial ties with Chinese companies. In fact, President Donald Trump himself will have to answer to the Bank of China for a USD$ 211 million loan he made on his own behalf in 2012.  

However, the remarkable work of the United States Congress in denouncing and sanctioning China for religious minority abuses and economic practices has made companies more cautious about where and how to invest in the Asian giant.

Some companies such as Apple, Lacoste and technological development have had to comply with regulations regarding the protection of human rights. In addition to the well-known case of Huawei, a technological giant banned in many countries thanks to the actions of the United States.  

Regarding the potential Biden government, it is expected that it will continue at least with the defense of human rights and the protection of the victims of Chinese communism. Business relations are likely to start opening but it is something that will develop depending on whether or not Biden achieves a majority in the Senate.  

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