China Policy Monitor No. 1602

CHINESE AND RUSSIAN BOMBERS OFF ALASKAN COAST
Two Russian TU-95 and two Chinese H-6 aircraft were "detected, tracked, and intercepted" in international airspace near Alaska by the North American Aerospace Defense Command (NORAD). The aircraft, which were operating in the Alaska Air Defense Identification Zone adjacent to U.S. sovereign airspace, were "very noticeable and concerning" but "not seen as a threat," NORAD said, adding that it "will continue to monitor competitor activity near North America and meet presence with presence." U.S. Deputy Defense Secretary Kathleen Hicks said there was "growing cooperation between the PRC and Russia in the Arctic," which she called "troubling." (Washington Post, July 25, 2024)

HIGH-SCHOOLS, UNIVERSITIES FURTHER RESTRICT FOREIGN TRAVEL
China's high school and universities have issued new rules restricting foreign travel. Students, teachers, and professors must hand over their passports to their school's party committee and receive permission before leaving the country. "The party office will make a list [of those with passports] and the county education bureau personnel department will hold this information. Each department is requested to forward this information to all groups," read one official notice. At Wuhan University, faculty must hand over their passports "for safekeeping" and even trips to Hong Kong must be approved. "The school has to approve it first, then the district education bureau, then finally it's sent to the municipal education bureau which must approve it before you can leave China," said an anonymous local resident. (Radio Free Asia, July 19, 2024) 

MANILA SHUTTERS CHINESE-RUN ONLINE GAMBLING OUTFITS 
Philippine President Ferdinand Marcos Jr. has ordered the closure of more than 400 mostly Chinese-run online gambling operations. "Disguised as legitimate entities, their operations have ventured into illicit areas furthest from gaming such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture, even murder," Marcos said. The illicit outfits, known as Philippine offshore gaming operators (POGOs), employ tens of thousands of Chinese and Southeast Asians, many of whom are illegally trafficked and work in dismal conditions. The industry, which often targets PRC citizens, has flourished thanks to bribes to local officials. In one case, Mayor Alice Guo in Tarlac province was suspended and her assets frozen after her ties to an online gambling outfit and PRC citizenship were revealed. Manila's new policy comes amid Beijing's own crackdown on Southeast Asia-based online illegal gambling and scammers targeting PRC citizens. (Channel NewsAsia, July 22, 2024)

HONG KONG HELPS RUSSIA AVOID SANCTIONS
Following Russia's invasion of Ukraine in 2022, Hong Kong has become central to its efforts to evade international sanctions. Companies are using the city to export hundreds of millions of dollars' worth of high-tech chips to Russia, drone parts to Iran, and are assisting in illicit ship-to-ship oil transfers for North Korea. Between August to December 2023, at least 206 Hong Kong companies were involved in shipping $1.97 billion worth of goods to Russian buyers – 40% of which were 11 high priority items, including semiconductors, data receivers, digital storage units, computer processors, and controllers. "The U.S., EU and their allies have largely avoided targeting these activities at their root – the banks, logistics firms and corporate services agencies that make up the core infrastructure that allows these trading companies to thrive," says Samuel Bickett of the Committee for Freedom in Hong Kong Foundation. (Nikkei Asia, July 22, 2024)

CHINA BROKERS PALESTINIAN RECONCILIATION DEAL 
After three days of talks in Beijing, leaders from 14 Palestinian factions agreed to form an interim national reconciliation government to rule postwar Gaza. Hamas and Fatah met in China for the second time in three months. The signing probably reflects China's diplomatic ambitions more than the reality in the Middle East, however. "The Palestinians have been divided, both politically and physically, since the civil war of 2007. Multiple attempts to broker reconciliation by multiple actors have been unsuccessful. China is not likely to end this feud. But the optics are important to Iran and the Arab world," notes Jonathan Schanzer of the Foundation for Defense of Democracies. Last year, China mediated the restoration of diplomatic relations between Saudi Arabia and Iran. (Nikkei, July 23, 2024)