Table.Briefing: China (English)

CCTV search for Uyghurs + TSMC progress in Dresden

Dear reader,

Instead of integrating them, China treats all Uyghurs as potential threats and alien elements in the country. It is almost ironic, given that their home region did not voluntarily become part of China. The Qing dynasty annexed it in the mid-18th century and has been under Beijing’s rule ever since. The Han majority now makes up such a large proportion of Xinjiang’s population that the region is considered an integral part of China after all. However, the Muslim part of the population is subjected to appalling unequal treatment and surveillance.

This is also increasingly the case in other parts of the country. The police in several municipalities and cities, including Shanghai, have upgraded their technology, as an exclusive analysis of tender documents by sinologist Bjoern Alpermann has revealed. These indicate that the authorities have been using facial recognition for years to identify citizens of Uyghur origin in the city and to record and analyze their daily routes and contacts with the help of AI.

For many, Shanghai may be far away, but Chinese total surveillance is closer than it appears. China exports the technology behind it to like-minded countries, spreading such practices across the planet and making it more and more the norm.

Moreover, many countries have close economic ties with China; the European supply chain law will make it possible to ask companies about the conditions in the region of origin. The exclusion and spying on an innocent minority continues to become less and less distant, Marcel Grzanna analyzes.

Chip manufacturer TSMC is making good progress with building its factory in Dresden. Felix Lee explains why skilled workers could be a critical bottleneck and how TSMC still manages to find enough skilled labor. One of the company’s goals is to manufacture chips for the German automotive industry.

Your
Finn Mayer-Kuckuk
Image of Finn  Mayer-Kuckuk

Feature

Exclusive: How Shanghai uses AI cameras to monitor and track Uyghurs

Chinese security authorities are using artificial intelligence to systematically track Uyghurs in Chinese cities and generate individual movement profiles. This is confirmed by public tenders for corresponding software, which are exclusively available to Table.Briefings. The documents come from local police departments in Shanghai, various cities and counties in the coastal province of Zhejiang and the southwestern metropolis of Chengdu. The tenders are explicitly aimed at identifying members of the Uyghur minority in public spaces.

The date on the documents indicates that the authorities have been putting out tenders for the development of facial recognition programs that specifically scan for Uyghurs for at least six years. The most recent document is dated 2023 and bears the stamp of the Shanghai Xuhui District Police Department.

Uyghurs are still considered ‘potential criminals’

The authorities’ continued demand suggests that they still harbor a general distrust of the Uyghurs despite years of state re-education measures. “The documents clearly show that the Chinese security authorities continue to systematically treat the Uyghurs as potential criminals and thus as second-class citizens,” says Xinjiang expert Bjoern Alpermann from the University of Wurzburg. According to Alpermann, the fact that the tenders come from different parts of the country indicates that this practice is commonplace.

This refutes the Chinese government’s narrative that, after a tough re-education phase, the ‘danger of extremism’ has now been banished and Uyghurs can enjoy their freedom as normal citizens of China and pursue their dreams,” says Alpermann, who discovered comparable evidence for the digital identification of Uyghurs as part of the research project “Remote Ethnography of the Xinjiang Uyghur Autonomous Region.”

The specifications for the bidders in the Shanghai tender are clearly formulated. Simply put, the artificial intelligence must recognize where Uyghurs are specifically located within the district and with whom they come into contact. Using images from 3,700 surveillance cameras in Xuhui alone, the software not only needs to be able to identify the individuals in question, but also alert the authorities in real-time. A separate file, including a movement profile for the past 30 days, is created for each person recorded based on the yī rén yī dàng (一人 一 档) principle.

‘Police state creates a mentality of insecurity’

The analysis results include facial images and facial data information. People with glasses or beards must also be recognized. In addition, the system needs to compare the analyzed information with the police’s facial image database to retrieve further data on the individuals immediately. The system will be used in 14 police stations, detention centers, and traffic police offices in Xuhui.

“The tenders are striking. They clearly indicate that the Uyghurs are still seen as a threat,” says anthropologist and China researcher Adrian Zenz from the Victims of Communism Memorial Foundation in Washington. “The conclusion is that a police state like China’s does not create security; it creates a mentality of insecurity,” says Zenz. His research on internment in Xinjiang is considered groundbreaking and has also been taken up by the United Nations.

Parliaments speak of genocide

All five documents available to Table.Briefings explicitly mention the need to identify Uyghurs, including an alert function. The 2022 document from Chengdu, the capital of Sichuan in southwest China, also requires the analysis of “racial characteristics.”

China officially recognizes 56 ethnic groups. However, the software does not filter other ethnic groups besides the Uyghurs. The Uyghurs are one of the largest minorities in the People’s Republic. They are predominantly Muslim and are subject to strict family planning controls, which have significantly reduced their numbers in recent decades.

The Uyghurs concerned see their accusations against the Chinese government confirmed. “This shows how the Chinese government regards the Uyghurs as a foreign body separate from the majority Han ethnic group,” says Haiyuer Kuerban, Berlin Director of the World Uyghur Congress (WUC). “This official stance confirms that the Uyghurs have never been part of the Chinese nation in the eyes of the government.” He added that the open discrimination was evidence of a dangerous government stance rooted in racist ideologies. They also showed that surveillance and discrimination against the Uyghurs was not limited to their home region, but had reached a nationwide dimension.

Discrimination led to re-education camps

In 2009, hundreds of people were killed in ethnic clashes between Han Chinese and Uyghurs in Xinjiang’s capital Urumqi. In response to a series of terrorist attacks by extremists, the state ultimately introduced a re-education program for Uyghur citizens.

The discrimination against all Uyghurs increased drastically as a result and led to the creation of camps in which a seven-digit number of Uyghurs have been held against their will since around 2017. The number of inmates in the camps has since decreased significantly. However, the number of Uyghurs sentenced to lengthy prison sentences has skyrocketed.

The fact that the threat situation in Xinjiang still exists in the eyes of Beijing became apparent last year when China’s President Xi Jinping visited the region and called for caution. Xi said that maintaining social stability should always be the top priority. His speech differed significantly from his words in 2020 when he emphasized the economic development of the region in Xinjiang and hardly mentioned the security situation.

  • Artificial intelligence
  • Monitoring
  • Uyghurs
  • Xinjiang

Semiconductor industry: How TSMC helps Dresden achieve high performance

TSMC Dresden
Road signs to the future TSMC plant in northern Dresden.

There is not yet much to see of the new high-tech plant in northern Dresden. But the ground-breaking ceremony for the fab, which is short for “fabrication plant,” i.e., a semiconductor plant, is set to take place in the second half of the year. Christian Koitzsch, President of European Semiconductor Manufacturing Company (ESMC), the newly founded joint venture between Bosch, Infineon and NXP, made the announcement. They each hold a ten percent stake. The majority shareholder is Taiwan-based TSMC. Koitzsch previously headed a Bosch factory in Dresden and has been in charge of the new joint venture between Bosch and TSMC since the beginning of the year.

It is one of the largest construction projects in Germany, emphasized Koitzsch on Monday at the Taiwan-EU Semiconductor Forum in Berlin. But the project is proceeding according to plan. By the end of 2027, the Dresden plant will manufacture 40,000 wafers with a diameter of 300 millimeters per month. Wafers are the baseplates for the production of the actual chips. The TSMC plant in Dresden is the Taiwanese supplier’s first on the European continent.

TSMC is by far the world’s largest and most important contract manufacturer of semiconductor products and is one of the few companies that has mastered the 2-nanometer manufacturing process. On a piece of silicon the size of a fingertip, Taiwanese engineers are able to fit 200 billion transistors and significantly increase performance while keeping energy consumption low.

TSMC follows car customers in Germany

This miniature switch is the basis for digital arithmetic units on microchips. The smaller they are, the more performance can be achieved. Their most modern and smallest forms are what make AI systems possible in the first place. TSMC manufactures these superchips for companies including Apple, AMD, Google and Nvidia.

However, the Dresden plant will not burn the most advanced integrated circuits onto the silicon, but rather, it will burn much larger structures. These chip types have been around since the mid-2010s. So, these are not the chips with the smallest physical structure size that TSMC was one of the first to produce. However, production on a 22-nanometer scale is intended to produce advanced MCU technology, i.e., to be installed in microcontrollers used for sensors and the control of windscreen wipers and brakes, for example. This makes them particularly important for the automotive industry. And Germany is still the heart of this industry.

Chips are the substance of modern industry

Around half of the enormous investment sum of around 20 billion euros will be borne by the taxpayer, five billion of which will come from the German government and another five billion from the EU as part of the Chips Act. Such high subsidies for a very profitable industry drew a lot of criticism. Some media wrote that this would equal five million euros of taxpayers’ money per job. However, Koitzsch stressed the many new jobs that will be created in the region. After all, the arrival of TSMC will bring more suppliers to the region. They will all create high-quality jobs.

There are also positive effects for all of Germany and the EU. “Every sector needs semiconductors nowadays,” emphasized Bernhard Kluttig, Head of the Industrial Policy Department at the German Ministry for Economic Affairs and Climate Action (BMWK), at the forum in Berlin. Microchips are irreplaceable in a modern industrial environment. Ultimately, not only a few thousand, but over ten million jobs in Germany’s entire manufacturing sector depend on them. Kluttig also called it an investment in the future that will pay off, adding that Europe needs this expertise.

Moreover, he says this is not purely a subsidy business; TSMC does not just follow the money, but also the market. “No semiconductor company sets up shop just because of government subsidies,” emphasizes Gunnar Thomas, Managing Director of TSMC Europe. It is only worthwhile for a company to relocate if there is a sufficient customer base. And this is available in the form of European car manufacturers, Thomas said.

The talent pipeline is already filling up

Preparations for the construction of the Dresden plant are in full swing. It is designed to employ around 2,000 people. Koitzsch has observed that the necessary specialists are already arriving. The first cooperation with the TU Dresden has started, he says, and 30 students are already participating in an exchange program and are being sent to Taiwan to be trained at TSMC’s own training center in the city of Taichung, among other places.

He himself has already visited the TSMC headquarters in Hsinchu, Taiwan. The city is home not only to TSMC but also to dozens of semiconductor manufacturers, including UMC, Elan, Windbond, and Powerchip, which are also global leaders. Given this density of semiconductor companies, Hsinchu is now considered the world’s actual Silicon Valley. Koitzsch announced that the TSMC plant in Dresden would invite doctoral students, among others, to develop and use specialized chips for their research projects on-site.

Water from the Elbe river

At the forum in Berlin, Koitzsch also reiterated why TSMC decided to invest around ten billion euros in its first European fab in Dresden. Dresden’s ecosystem was convincing: It is already the largest microelectronics hub in Europe with an existing supplier industry, as well as institutions such as the Technical University of Dresden and other research institutes such as Helmholtz and Fraunhofer with a strong focus on microelectronics. In the end, this was the package that convinced TSMC.

He also addressed the water problem, which has been raised several times. After all, the arrival of a chip giant, which requires a lot of water for production, makes it clear that Dresden’s existing supply will not be sufficient in the long term, especially as Infineon will also be significantly expanding its existing plant. That is why experts assume that the water demand will almost double by 2040. For this reason, a new process water supply system will be built at a cost of around 250 million euros. It will be completely independent of the existing drinking water distribution network and fed from treated river water from the Elbe.

  • Chips Act

Events

17.06.2024, 16:00 Uhr
Confucius Institute at the Free University of Berlin, lecture and panel discussion: State – Society – Individual: Social Engagement and Activism in Contemporary China (with Zhao Dingxin, Bettina Gransow and Daniel Fuchs) More

June 17, 2024, 4 p.m. CEST
Taiwan-AG of the German Association for Chinese Studies (DVCS), lecture series (online): Taiwan’s social change using the example of the LGBTQ movement, with Jens Damm More

June 17, 2024, 4:30 p.m. Beijing time
EU SME Center/European Chamber, Working group meeting (in Beijing): New Quality Productive What? Making Sense of China’s Updated Industrial Policy Goals More

June 18, 2024, 7 p.m. CEST
Young China Watchers, Discussion (in Ixelles, Belgium): From Mao to Xi : Looking back at 5 decades of China-watching with Reinhard Buetikofer More

June 19, 2024; 9 a.m. CEST
Merics, expert briefing (in Berlin): China breakfast for MdB employees More

June 20, 2024; 10 a.m. (4 p.m. Beijing time)
EU SME Center, Webinar: How to Export to China via E-Commerce More

June 20, 2024; 2 p.m. CEST(8 p.m. Beijing time)
Max Planck Institute for the History of Science, lecture (hybrid): Xi Jinping’s Perspectives on Science and Technology (with Erik Baar) More

June 25, 2024; 10 a.m. Beijing time
German Chamber of Commerce Machinery Day (in Suzhou): Powering the Future: Digitalization and Sustainability in the Smart Manufacturing Industry More

June 25, 2024; 6 p.m. CEST (12 a.m. Beijing time)
Confucius Institute-Leipzig, lecture by Eugenio Menegon (hybrid): The Matriarch, the Duchess, the Queen, and the Countess: Aristocratic Patronesses of the Chinese Catholic Mission More

News

G7: This is where they demonstrate unity against China

G7 in Italy: (from left) Justin Trudeau, Olaf Scholz, Emmanuel Macron, Giorgia Meloni, Charles Michel, Joe Biden, Fumio Kishida, Rishi Sunak, Ursula von der Leyen.

The G7 are demonstrating a united front against China’s attempt to bring products onto global markets at below cost. One day after the EU announced increased tariffs on Chinese EVs, Ursula von der Leyen’s signature is clearly recognizable in a statement by the heads of state and government. In the statement, the G7 accuse China of creating harmful overcapacities and distorting global competition through non-market economy practices such as subsidies, threatening domestic jobs and industries as well as the economic resilience and security of the G7 states.

This not only sounds very similar to how the EU justifies its tariffs, but also reads like an echo of the statements made by the US government under Joe Biden, who is also present in Italy. The G7 are also indirectly threatening China with further possible punitive tariffs. They warn of additional measures that they will take – if necessary – to protect workers and companies against unfair practices.

Criticism of China for supplying Putin’s arms manufacturers

In its statement, the group of established developed nations also expresses concern about China’s support for Russia in the war in Ukraine. The G7 call on China to stop supplying goods that can also be used for military purposes and “stop enabling and sustaining Russia’s war against Ukraine.” This would have security policy consequences that could be felt worldwide. Here, too, there was an echo of current politics. The US government only imposed new sanctions against supporters of the Russian war on Wednesday, including Chinese companies.

The G7 group consists of Germany, France, the UK, Italy, Japan, Canada, the USA and the EU. In geopolitical terms, it is increasingly positioned in opposition to Brics+, which claims to represent the Global South vis-à-vis the former colonial powers and established developed countries. fin

  • Geopolitik

Tesla: What impact the tariffs will have on customers

The US electric car manufacturer Tesla will likely raise the price of its Model 3 due to the announced import duties on Chinese EVs in the European Union. “We’re anticipating a requirement for us to increase pricing for Model 3 vehicles as of 1 July 2024,” a notice on Tesla’s website said. “This is due to additional import duties likely to be imposed on electric vehicles manufactured in China and sold in the EU”

Tesla did not initially provide details on how much the price would be increased. Tesla manufactures the vehicles for the European market at its plant in Shanghai. Meanwhile, BYD shares listed in Hong Kong rose by up to nine percent on Thursday after the manufacturer’s tariffs of 17.4 percent turned out to be lower than expected.

Chinese government criticizes tariffs

Beijing urged the EU to “immediately correct its wrong practices, stop politicizing economic and trade issues, and properly handle economic and trade frictions through dialogue and consultation,” said Lin Jian, spokesman for the Chinese Foreign Ministry.

Brussels had given both sides leeway to continue their consultations and find a solution, the state news agency Xinhua wrote in a commentary: “It is hoped the EU will make some serious reconsideration and stop going further in the wrong direction.” He Yadong, spokesman for the Chinese Ministry of Commerce, emphasized that China reserves the right to file a complaint against the EU tariffs with the World Trade Organization (WTO).

The EU Commission announced on Wednesday that it would impose additional provisional tariffs of up to 38.1 percent from July. The new tariffs will come into effect on July 4 if no agreement is reached with China by then. Western car manufacturers importing from China – such as Tesla and BMW – will be treated as cooperating companies. These companies will be subject to a 21 percent tariff. Non-cooperating companies must expect a surcharge of 38.1 percent. Tesla was the only company to apply for an individual duty. rtr/ari/cyb

  • E-Autos

Hong Kong: Why the EU gives the city a bad report card

In its annual report, the EU expressed concern about the development of democracy in Hong Kong. “The 2023 annual report illustrates in great detail the continuous erosion of the rights and freedoms of the people of Hong Kong and the dismantling of the ‘one country two systems’ principle,” said EU High Representative for Foreign Affairs Josep Borrell.

He said the political opposition in Hong Kong was effectively excluded from the elections. “The political opposition in Hong Kong has been effectively excluded from elections.” The developments also impaired Hong Kong’s position as an international economic hub, Borrell emphasized. According to the report, the space for pluralistic voices in Hong Kong had shrunk even further in 2023. The European External Action Service (EEAS) also warns of increasing online censorship and the increased use of the National Security Act.

Meanwhile, Human Rights Watch and other organizations called on the EEAS in an open letter to suspend this weekend’s planned human rights dialogue with China. The EU and its member states should take other, “more effective measures” to exert pressure on the Chinese government, the organizations stated. The 39th Human Rights Dialogue, a regular format between the EU and China, is scheduled for Sunday in Chongqing. ari

  • Democracy
  • EEAS
  • EEAS
  • Human Rights
  • Nationales Sicherheitsgesetz

Argentina: How Milei has cleared the way for a meeting with Xi

According to the Argentine newspaper Clarín, Argentine President Javier Milei will meet with Chinese President Xi Jinping in the coming weeks. The date has not yet been officially confirmed.

Just a few hours earlier, the Argentinian government managed to extend a swap deal with China for five billion US dollars. Such currency swap agreements increase the stability of the relationship between foreign currencies. This is currently very welcome for Argentina. cyb

  • Argentinien

China Perspective

EU elections: How Chinese media report on the rise of the far right

China’s official media covered the EU elections with limited space. Major State news organizations, from the People’s Daily to China Central Television, all matter-of-factly reported the elections’ results, somewhat highlighting the right wing’s gains and Immanuel Macron’s dramatic decision to hold a snap parliamentary election in France. None of them delved into the implications of the results for EU-China relations. A few market-oriented news outlets and Chinese websites of foreign news organizations touched upon this topic.   

Government expert’s balanced evaluation 

In an interview with the nationalistic website Guancha, (the word means observe), a leading official expert provided a cautious analysis. The far-right parties are more about domestic issues and their position on foreign policies are generally not very clear, said Cui Hongjian, director for European studies at the China Institute of International Studies, a think tank under the Ministry of Foreign Affairs. This means it is difficult to draw a simple conclusion about the election result’s impact on EU-China relations, he told Guancha. 

He said that the attitudes of the European far-right parties towards China differ. “Some far-right-labeled parties and ruling parties are actually quite friendly to China. For example, there are pro-China elements in the AfD. At the same time, part of (European) far-right parties is negative towards China,” he was quoted as saying. China should observe the development of these parties’ views on current situations, their judgments about their own political interest, and the results of their coordination and competition in various aspects, he said. 

Although a turn to the right would generally mean being more isolationist and protectionist, European countries’ stances on trade relations would still be complicated. Some would try to block Chinese products from their market to protect local jobs; some believe they need to cooperate with China for economic development and job creation, he said. 

It would be surprising if the role of TikTok in the EU elections wasn’t mentioned in its home country. The Shanghai-based news website The Paper (澎湃新闻), inspired by Politico, reported on young voters’ attitudes toward the elections and their choices. The report’s focus, however, is how European politicians employed social media in their campaigns. The report dubbed the 2024 EU elections “TikTok Election,” citing the success cases of the right-wingers, particularly AfD politicians and Jordan Bardella, the president of the National Rally of France. 

Some still see extreme parties’ strength as boon for China

Another columnist on the Financial Times Chinese website is more optimistic about the election result’s implications for China and Russia. Cao Xin, a research fellow at the Charhar Institute, a non-government think tank, writes that the new European Parliament’s power would mean the United States’ diminished capacity in controlling Europe, which is good news for China and Russia.

The new EU Parliament is likely to seek a quick end to the Ukraine War, a scenario that would be to Russia’s advantage. He also believes it will be more difficult for EU member countries to strike a united decision on launching economic sanctions and constraints on China. It will depend on how China and Russia use their “diplomatic wisdom” to take advantage of the situation, he writes.  

  • Europawahlen 2024

Executive Moves

Christina Zarnhofer is the new Data Analyst Marketing China at Oesterreich Werbung, the country’s national tourism marketing organization. She is based in Vienna and Beijing.

Maximilian Hahn took over the position of Manager Material Planning, Supplier Management & Operations China in the Logistics division at the BMW Group in June. He previously worked for the car manufacturer in the USA as Project Manager Customs/Export Control.

Is something changing in your organization? Let us know at heads@table.media!

Dessert

A Euro 2024 Themed Pop-up Shop in Hangzhou Customers are buying German national team, Nationalteam T-shirts at a Euro 2024 themed pop-up store in Hangzhou, China, on June 13, 2024. Hangzhou Zhejiang China

The Euro 2024 is also interesting to Chinese soccer fans – like this man in a pop-up store in Hangzhou. However, the time of the live broadcasts of the evening matches could once again cause sleep deprivation in East Asia. The kick-off for the opening match between Germany and Scotland will be at three o’clock on Saturday morning.

China.Table editorial team

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Instead of integrating them, China treats all Uyghurs as potential threats and alien elements in the country. It is almost ironic, given that their home region did not voluntarily become part of China. The Qing dynasty annexed it in the mid-18th century and has been under Beijing’s rule ever since. The Han majority now makes up such a large proportion of Xinjiang’s population that the region is considered an integral part of China after all. However, the Muslim part of the population is subjected to appalling unequal treatment and surveillance.

    This is also increasingly the case in other parts of the country. The police in several municipalities and cities, including Shanghai, have upgraded their technology, as an exclusive analysis of tender documents by sinologist Bjoern Alpermann has revealed. These indicate that the authorities have been using facial recognition for years to identify citizens of Uyghur origin in the city and to record and analyze their daily routes and contacts with the help of AI.

    For many, Shanghai may be far away, but Chinese total surveillance is closer than it appears. China exports the technology behind it to like-minded countries, spreading such practices across the planet and making it more and more the norm.

    Moreover, many countries have close economic ties with China; the European supply chain law will make it possible to ask companies about the conditions in the region of origin. The exclusion and spying on an innocent minority continues to become less and less distant, Marcel Grzanna analyzes.

    Chip manufacturer TSMC is making good progress with building its factory in Dresden. Felix Lee explains why skilled workers could be a critical bottleneck and how TSMC still manages to find enough skilled labor. One of the company’s goals is to manufacture chips for the German automotive industry.

    Your
    Finn Mayer-Kuckuk
    Image of Finn  Mayer-Kuckuk

    Feature

    Exclusive: How Shanghai uses AI cameras to monitor and track Uyghurs

    Chinese security authorities are using artificial intelligence to systematically track Uyghurs in Chinese cities and generate individual movement profiles. This is confirmed by public tenders for corresponding software, which are exclusively available to Table.Briefings. The documents come from local police departments in Shanghai, various cities and counties in the coastal province of Zhejiang and the southwestern metropolis of Chengdu. The tenders are explicitly aimed at identifying members of the Uyghur minority in public spaces.

    The date on the documents indicates that the authorities have been putting out tenders for the development of facial recognition programs that specifically scan for Uyghurs for at least six years. The most recent document is dated 2023 and bears the stamp of the Shanghai Xuhui District Police Department.

    Uyghurs are still considered ‘potential criminals’

    The authorities’ continued demand suggests that they still harbor a general distrust of the Uyghurs despite years of state re-education measures. “The documents clearly show that the Chinese security authorities continue to systematically treat the Uyghurs as potential criminals and thus as second-class citizens,” says Xinjiang expert Bjoern Alpermann from the University of Wurzburg. According to Alpermann, the fact that the tenders come from different parts of the country indicates that this practice is commonplace.

    This refutes the Chinese government’s narrative that, after a tough re-education phase, the ‘danger of extremism’ has now been banished and Uyghurs can enjoy their freedom as normal citizens of China and pursue their dreams,” says Alpermann, who discovered comparable evidence for the digital identification of Uyghurs as part of the research project “Remote Ethnography of the Xinjiang Uyghur Autonomous Region.”

    The specifications for the bidders in the Shanghai tender are clearly formulated. Simply put, the artificial intelligence must recognize where Uyghurs are specifically located within the district and with whom they come into contact. Using images from 3,700 surveillance cameras in Xuhui alone, the software not only needs to be able to identify the individuals in question, but also alert the authorities in real-time. A separate file, including a movement profile for the past 30 days, is created for each person recorded based on the yī rén yī dàng (一人 一 档) principle.

    ‘Police state creates a mentality of insecurity’

    The analysis results include facial images and facial data information. People with glasses or beards must also be recognized. In addition, the system needs to compare the analyzed information with the police’s facial image database to retrieve further data on the individuals immediately. The system will be used in 14 police stations, detention centers, and traffic police offices in Xuhui.

    “The tenders are striking. They clearly indicate that the Uyghurs are still seen as a threat,” says anthropologist and China researcher Adrian Zenz from the Victims of Communism Memorial Foundation in Washington. “The conclusion is that a police state like China’s does not create security; it creates a mentality of insecurity,” says Zenz. His research on internment in Xinjiang is considered groundbreaking and has also been taken up by the United Nations.

    Parliaments speak of genocide

    All five documents available to Table.Briefings explicitly mention the need to identify Uyghurs, including an alert function. The 2022 document from Chengdu, the capital of Sichuan in southwest China, also requires the analysis of “racial characteristics.”

    China officially recognizes 56 ethnic groups. However, the software does not filter other ethnic groups besides the Uyghurs. The Uyghurs are one of the largest minorities in the People’s Republic. They are predominantly Muslim and are subject to strict family planning controls, which have significantly reduced their numbers in recent decades.

    The Uyghurs concerned see their accusations against the Chinese government confirmed. “This shows how the Chinese government regards the Uyghurs as a foreign body separate from the majority Han ethnic group,” says Haiyuer Kuerban, Berlin Director of the World Uyghur Congress (WUC). “This official stance confirms that the Uyghurs have never been part of the Chinese nation in the eyes of the government.” He added that the open discrimination was evidence of a dangerous government stance rooted in racist ideologies. They also showed that surveillance and discrimination against the Uyghurs was not limited to their home region, but had reached a nationwide dimension.

    Discrimination led to re-education camps

    In 2009, hundreds of people were killed in ethnic clashes between Han Chinese and Uyghurs in Xinjiang’s capital Urumqi. In response to a series of terrorist attacks by extremists, the state ultimately introduced a re-education program for Uyghur citizens.

    The discrimination against all Uyghurs increased drastically as a result and led to the creation of camps in which a seven-digit number of Uyghurs have been held against their will since around 2017. The number of inmates in the camps has since decreased significantly. However, the number of Uyghurs sentenced to lengthy prison sentences has skyrocketed.

    The fact that the threat situation in Xinjiang still exists in the eyes of Beijing became apparent last year when China’s President Xi Jinping visited the region and called for caution. Xi said that maintaining social stability should always be the top priority. His speech differed significantly from his words in 2020 when he emphasized the economic development of the region in Xinjiang and hardly mentioned the security situation.

    • Artificial intelligence
    • Monitoring
    • Uyghurs
    • Xinjiang

    Semiconductor industry: How TSMC helps Dresden achieve high performance

    TSMC Dresden
    Road signs to the future TSMC plant in northern Dresden.

    There is not yet much to see of the new high-tech plant in northern Dresden. But the ground-breaking ceremony for the fab, which is short for “fabrication plant,” i.e., a semiconductor plant, is set to take place in the second half of the year. Christian Koitzsch, President of European Semiconductor Manufacturing Company (ESMC), the newly founded joint venture between Bosch, Infineon and NXP, made the announcement. They each hold a ten percent stake. The majority shareholder is Taiwan-based TSMC. Koitzsch previously headed a Bosch factory in Dresden and has been in charge of the new joint venture between Bosch and TSMC since the beginning of the year.

    It is one of the largest construction projects in Germany, emphasized Koitzsch on Monday at the Taiwan-EU Semiconductor Forum in Berlin. But the project is proceeding according to plan. By the end of 2027, the Dresden plant will manufacture 40,000 wafers with a diameter of 300 millimeters per month. Wafers are the baseplates for the production of the actual chips. The TSMC plant in Dresden is the Taiwanese supplier’s first on the European continent.

    TSMC is by far the world’s largest and most important contract manufacturer of semiconductor products and is one of the few companies that has mastered the 2-nanometer manufacturing process. On a piece of silicon the size of a fingertip, Taiwanese engineers are able to fit 200 billion transistors and significantly increase performance while keeping energy consumption low.

    TSMC follows car customers in Germany

    This miniature switch is the basis for digital arithmetic units on microchips. The smaller they are, the more performance can be achieved. Their most modern and smallest forms are what make AI systems possible in the first place. TSMC manufactures these superchips for companies including Apple, AMD, Google and Nvidia.

    However, the Dresden plant will not burn the most advanced integrated circuits onto the silicon, but rather, it will burn much larger structures. These chip types have been around since the mid-2010s. So, these are not the chips with the smallest physical structure size that TSMC was one of the first to produce. However, production on a 22-nanometer scale is intended to produce advanced MCU technology, i.e., to be installed in microcontrollers used for sensors and the control of windscreen wipers and brakes, for example. This makes them particularly important for the automotive industry. And Germany is still the heart of this industry.

    Chips are the substance of modern industry

    Around half of the enormous investment sum of around 20 billion euros will be borne by the taxpayer, five billion of which will come from the German government and another five billion from the EU as part of the Chips Act. Such high subsidies for a very profitable industry drew a lot of criticism. Some media wrote that this would equal five million euros of taxpayers’ money per job. However, Koitzsch stressed the many new jobs that will be created in the region. After all, the arrival of TSMC will bring more suppliers to the region. They will all create high-quality jobs.

    There are also positive effects for all of Germany and the EU. “Every sector needs semiconductors nowadays,” emphasized Bernhard Kluttig, Head of the Industrial Policy Department at the German Ministry for Economic Affairs and Climate Action (BMWK), at the forum in Berlin. Microchips are irreplaceable in a modern industrial environment. Ultimately, not only a few thousand, but over ten million jobs in Germany’s entire manufacturing sector depend on them. Kluttig also called it an investment in the future that will pay off, adding that Europe needs this expertise.

    Moreover, he says this is not purely a subsidy business; TSMC does not just follow the money, but also the market. “No semiconductor company sets up shop just because of government subsidies,” emphasizes Gunnar Thomas, Managing Director of TSMC Europe. It is only worthwhile for a company to relocate if there is a sufficient customer base. And this is available in the form of European car manufacturers, Thomas said.

    The talent pipeline is already filling up

    Preparations for the construction of the Dresden plant are in full swing. It is designed to employ around 2,000 people. Koitzsch has observed that the necessary specialists are already arriving. The first cooperation with the TU Dresden has started, he says, and 30 students are already participating in an exchange program and are being sent to Taiwan to be trained at TSMC’s own training center in the city of Taichung, among other places.

    He himself has already visited the TSMC headquarters in Hsinchu, Taiwan. The city is home not only to TSMC but also to dozens of semiconductor manufacturers, including UMC, Elan, Windbond, and Powerchip, which are also global leaders. Given this density of semiconductor companies, Hsinchu is now considered the world’s actual Silicon Valley. Koitzsch announced that the TSMC plant in Dresden would invite doctoral students, among others, to develop and use specialized chips for their research projects on-site.

    Water from the Elbe river

    At the forum in Berlin, Koitzsch also reiterated why TSMC decided to invest around ten billion euros in its first European fab in Dresden. Dresden’s ecosystem was convincing: It is already the largest microelectronics hub in Europe with an existing supplier industry, as well as institutions such as the Technical University of Dresden and other research institutes such as Helmholtz and Fraunhofer with a strong focus on microelectronics. In the end, this was the package that convinced TSMC.

    He also addressed the water problem, which has been raised several times. After all, the arrival of a chip giant, which requires a lot of water for production, makes it clear that Dresden’s existing supply will not be sufficient in the long term, especially as Infineon will also be significantly expanding its existing plant. That is why experts assume that the water demand will almost double by 2040. For this reason, a new process water supply system will be built at a cost of around 250 million euros. It will be completely independent of the existing drinking water distribution network and fed from treated river water from the Elbe.

    • Chips Act

    Events

    17.06.2024, 16:00 Uhr
    Confucius Institute at the Free University of Berlin, lecture and panel discussion: State – Society – Individual: Social Engagement and Activism in Contemporary China (with Zhao Dingxin, Bettina Gransow and Daniel Fuchs) More

    June 17, 2024, 4 p.m. CEST
    Taiwan-AG of the German Association for Chinese Studies (DVCS), lecture series (online): Taiwan’s social change using the example of the LGBTQ movement, with Jens Damm More

    June 17, 2024, 4:30 p.m. Beijing time
    EU SME Center/European Chamber, Working group meeting (in Beijing): New Quality Productive What? Making Sense of China’s Updated Industrial Policy Goals More

    June 18, 2024, 7 p.m. CEST
    Young China Watchers, Discussion (in Ixelles, Belgium): From Mao to Xi : Looking back at 5 decades of China-watching with Reinhard Buetikofer More

    June 19, 2024; 9 a.m. CEST
    Merics, expert briefing (in Berlin): China breakfast for MdB employees More

    June 20, 2024; 10 a.m. (4 p.m. Beijing time)
    EU SME Center, Webinar: How to Export to China via E-Commerce More

    June 20, 2024; 2 p.m. CEST(8 p.m. Beijing time)
    Max Planck Institute for the History of Science, lecture (hybrid): Xi Jinping’s Perspectives on Science and Technology (with Erik Baar) More

    June 25, 2024; 10 a.m. Beijing time
    German Chamber of Commerce Machinery Day (in Suzhou): Powering the Future: Digitalization and Sustainability in the Smart Manufacturing Industry More

    June 25, 2024; 6 p.m. CEST (12 a.m. Beijing time)
    Confucius Institute-Leipzig, lecture by Eugenio Menegon (hybrid): The Matriarch, the Duchess, the Queen, and the Countess: Aristocratic Patronesses of the Chinese Catholic Mission More

    News

    G7: This is where they demonstrate unity against China

    G7 in Italy: (from left) Justin Trudeau, Olaf Scholz, Emmanuel Macron, Giorgia Meloni, Charles Michel, Joe Biden, Fumio Kishida, Rishi Sunak, Ursula von der Leyen.

    The G7 are demonstrating a united front against China’s attempt to bring products onto global markets at below cost. One day after the EU announced increased tariffs on Chinese EVs, Ursula von der Leyen’s signature is clearly recognizable in a statement by the heads of state and government. In the statement, the G7 accuse China of creating harmful overcapacities and distorting global competition through non-market economy practices such as subsidies, threatening domestic jobs and industries as well as the economic resilience and security of the G7 states.

    This not only sounds very similar to how the EU justifies its tariffs, but also reads like an echo of the statements made by the US government under Joe Biden, who is also present in Italy. The G7 are also indirectly threatening China with further possible punitive tariffs. They warn of additional measures that they will take – if necessary – to protect workers and companies against unfair practices.

    Criticism of China for supplying Putin’s arms manufacturers

    In its statement, the group of established developed nations also expresses concern about China’s support for Russia in the war in Ukraine. The G7 call on China to stop supplying goods that can also be used for military purposes and “stop enabling and sustaining Russia’s war against Ukraine.” This would have security policy consequences that could be felt worldwide. Here, too, there was an echo of current politics. The US government only imposed new sanctions against supporters of the Russian war on Wednesday, including Chinese companies.

    The G7 group consists of Germany, France, the UK, Italy, Japan, Canada, the USA and the EU. In geopolitical terms, it is increasingly positioned in opposition to Brics+, which claims to represent the Global South vis-à-vis the former colonial powers and established developed countries. fin

    • Geopolitik

    Tesla: What impact the tariffs will have on customers

    The US electric car manufacturer Tesla will likely raise the price of its Model 3 due to the announced import duties on Chinese EVs in the European Union. “We’re anticipating a requirement for us to increase pricing for Model 3 vehicles as of 1 July 2024,” a notice on Tesla’s website said. “This is due to additional import duties likely to be imposed on electric vehicles manufactured in China and sold in the EU”

    Tesla did not initially provide details on how much the price would be increased. Tesla manufactures the vehicles for the European market at its plant in Shanghai. Meanwhile, BYD shares listed in Hong Kong rose by up to nine percent on Thursday after the manufacturer’s tariffs of 17.4 percent turned out to be lower than expected.

    Chinese government criticizes tariffs

    Beijing urged the EU to “immediately correct its wrong practices, stop politicizing economic and trade issues, and properly handle economic and trade frictions through dialogue and consultation,” said Lin Jian, spokesman for the Chinese Foreign Ministry.

    Brussels had given both sides leeway to continue their consultations and find a solution, the state news agency Xinhua wrote in a commentary: “It is hoped the EU will make some serious reconsideration and stop going further in the wrong direction.” He Yadong, spokesman for the Chinese Ministry of Commerce, emphasized that China reserves the right to file a complaint against the EU tariffs with the World Trade Organization (WTO).

    The EU Commission announced on Wednesday that it would impose additional provisional tariffs of up to 38.1 percent from July. The new tariffs will come into effect on July 4 if no agreement is reached with China by then. Western car manufacturers importing from China – such as Tesla and BMW – will be treated as cooperating companies. These companies will be subject to a 21 percent tariff. Non-cooperating companies must expect a surcharge of 38.1 percent. Tesla was the only company to apply for an individual duty. rtr/ari/cyb

    • E-Autos

    Hong Kong: Why the EU gives the city a bad report card

    In its annual report, the EU expressed concern about the development of democracy in Hong Kong. “The 2023 annual report illustrates in great detail the continuous erosion of the rights and freedoms of the people of Hong Kong and the dismantling of the ‘one country two systems’ principle,” said EU High Representative for Foreign Affairs Josep Borrell.

    He said the political opposition in Hong Kong was effectively excluded from the elections. “The political opposition in Hong Kong has been effectively excluded from elections.” The developments also impaired Hong Kong’s position as an international economic hub, Borrell emphasized. According to the report, the space for pluralistic voices in Hong Kong had shrunk even further in 2023. The European External Action Service (EEAS) also warns of increasing online censorship and the increased use of the National Security Act.

    Meanwhile, Human Rights Watch and other organizations called on the EEAS in an open letter to suspend this weekend’s planned human rights dialogue with China. The EU and its member states should take other, “more effective measures” to exert pressure on the Chinese government, the organizations stated. The 39th Human Rights Dialogue, a regular format between the EU and China, is scheduled for Sunday in Chongqing. ari

    • Democracy
    • EEAS
    • EEAS
    • Human Rights
    • Nationales Sicherheitsgesetz

    Argentina: How Milei has cleared the way for a meeting with Xi

    According to the Argentine newspaper Clarín, Argentine President Javier Milei will meet with Chinese President Xi Jinping in the coming weeks. The date has not yet been officially confirmed.

    Just a few hours earlier, the Argentinian government managed to extend a swap deal with China for five billion US dollars. Such currency swap agreements increase the stability of the relationship between foreign currencies. This is currently very welcome for Argentina. cyb

    • Argentinien

    China Perspective

    EU elections: How Chinese media report on the rise of the far right

    China’s official media covered the EU elections with limited space. Major State news organizations, from the People’s Daily to China Central Television, all matter-of-factly reported the elections’ results, somewhat highlighting the right wing’s gains and Immanuel Macron’s dramatic decision to hold a snap parliamentary election in France. None of them delved into the implications of the results for EU-China relations. A few market-oriented news outlets and Chinese websites of foreign news organizations touched upon this topic.   

    Government expert’s balanced evaluation 

    In an interview with the nationalistic website Guancha, (the word means observe), a leading official expert provided a cautious analysis. The far-right parties are more about domestic issues and their position on foreign policies are generally not very clear, said Cui Hongjian, director for European studies at the China Institute of International Studies, a think tank under the Ministry of Foreign Affairs. This means it is difficult to draw a simple conclusion about the election result’s impact on EU-China relations, he told Guancha. 

    He said that the attitudes of the European far-right parties towards China differ. “Some far-right-labeled parties and ruling parties are actually quite friendly to China. For example, there are pro-China elements in the AfD. At the same time, part of (European) far-right parties is negative towards China,” he was quoted as saying. China should observe the development of these parties’ views on current situations, their judgments about their own political interest, and the results of their coordination and competition in various aspects, he said. 

    Although a turn to the right would generally mean being more isolationist and protectionist, European countries’ stances on trade relations would still be complicated. Some would try to block Chinese products from their market to protect local jobs; some believe they need to cooperate with China for economic development and job creation, he said. 

    It would be surprising if the role of TikTok in the EU elections wasn’t mentioned in its home country. The Shanghai-based news website The Paper (澎湃新闻), inspired by Politico, reported on young voters’ attitudes toward the elections and their choices. The report’s focus, however, is how European politicians employed social media in their campaigns. The report dubbed the 2024 EU elections “TikTok Election,” citing the success cases of the right-wingers, particularly AfD politicians and Jordan Bardella, the president of the National Rally of France. 

    Some still see extreme parties’ strength as boon for China

    Another columnist on the Financial Times Chinese website is more optimistic about the election result’s implications for China and Russia. Cao Xin, a research fellow at the Charhar Institute, a non-government think tank, writes that the new European Parliament’s power would mean the United States’ diminished capacity in controlling Europe, which is good news for China and Russia.

    The new EU Parliament is likely to seek a quick end to the Ukraine War, a scenario that would be to Russia’s advantage. He also believes it will be more difficult for EU member countries to strike a united decision on launching economic sanctions and constraints on China. It will depend on how China and Russia use their “diplomatic wisdom” to take advantage of the situation, he writes.  

    • Europawahlen 2024

    Executive Moves

    Christina Zarnhofer is the new Data Analyst Marketing China at Oesterreich Werbung, the country’s national tourism marketing organization. She is based in Vienna and Beijing.

    Maximilian Hahn took over the position of Manager Material Planning, Supplier Management & Operations China in the Logistics division at the BMW Group in June. He previously worked for the car manufacturer in the USA as Project Manager Customs/Export Control.

    Is something changing in your organization? Let us know at heads@table.media!

    Dessert

    A Euro 2024 Themed Pop-up Shop in Hangzhou Customers are buying German national team, Nationalteam T-shirts at a Euro 2024 themed pop-up store in Hangzhou, China, on June 13, 2024. Hangzhou Zhejiang China

    The Euro 2024 is also interesting to Chinese soccer fans – like this man in a pop-up store in Hangzhou. However, the time of the live broadcasts of the evening matches could once again cause sleep deprivation in East Asia. The kick-off for the opening match between Germany and Scotland will be at three o’clock on Saturday morning.

    China.Table editorial team

    CHINA.TABLE EDITORIAL OFFICE

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