China Policy Monitor No. 1629

MILITARY PURGE DEEPENS, TOP GENERALS ARRESTED
The PLA is conducting a sweeping purge. Vice Chairman of the Central Military Commission He Weidong was arrested on March 11th and his secretary is under investigation for leaking classified information. General Zhao Keshi, former Commander of the Nanjing Military Region and head of the General Logistics Department, has also been taken into custody. Reports suggest the purge has extended to include the deputy commander of the Western Theatre Command Commander and several senior generals from the so-called "Fujian faction," including the Eastern Theatre Navy Commander, the deputy director of the CMC Science and Technology Committee, and the Director of the Military Affairs Office. (India Today, March 18, 2025)

PROVINCES ENCOURAGE BABIES WITH CHILDCARE SUBSIDIES AND MILK
To boost the national birth rate, Premier Li Qiang has announced childcare subsidies and free preschool education. So far, more than 20 provinces are offering such subsidies. Hohhot, Inner Mongolia, for instance, is offering couples a 10,000 yuan ($1382) one-time payment for their first child, a second child will get another 10,000 yuan per year until age five, and a third child fetches an annual subsidy of 10,000 yuan until that child turns ten. Two dairy companies in the city are also providing new mothers an electronic voucher worth 3000 yuan. In 2024, China's population fell for a third consecutive year, and marriages plummeted by a fifth, the biggest drop on record. (Reuters, March 18, 2025)

CHINA EXECUTES FOUR CANADIANS FOR DRUGS
China has announced the execution of four dual Canadian/Chinese citizens convicted of drug smuggling. Ottawa condemned the executions as "inconsistent with basic human dignity." Canada's foreign minister, Mélanie Joly, said: "We will continue to engage with China as we'll continue to not only strongly condemn but also ask for leniency for other Canadians that are facing similar situations." Former Prime Minister Justin Trudeau had asked Beijing to stop the executions. The four men, who were convicted in Guangdong, had been under judicial review for two years before they were executed – a short period, especially for foreigners. "The evidence is solid and sufficient," asserted the PRC Embassy in Ottawa, without providing further details. (NPR, March 20, 2025)

[EDITOR'S NOTE: Another Canadian, Robert Schellenberg, also faces the death penalty in China for drug trafficking. He was originally sentenced to 15 years to prison, but in 2019 was handed a death sentence in a one-day retrial, one month after the Canadian authorities arrested Huawei executive Meng Wanzhou.]

PRC EV MAKERS ACCELERATE GLOBAL PUSH
Chinese EV makers are going global to get around rising trade barriers. BYD was among the first to expand overseas production and in 2023 began investing billions in factories in Thailand, Hungary, Brazil, and Turkey. Last year, BYD sold 417,204 units overseas, up 72% year-on-year. Geely has announced a "global south" expansion strategy focused on the Middle East, Eastern Europe, and Asia. BYD also plans to create specific models for African and Latin American markets. Xpeng, meanwhile, plans to double foreign sales to over 40,000 units and establish more than 300 dealerships worldwide. The firm will establish overseas R&D centers to develop and test its Turing AI driving system for use in its 2026 models. Xpeng sees Asia as its top market, starting with Indonesia where its first foreign factory will begin producing cars later this year. "By 2034, I hope that half of Xpeng's sales will come from China and the other half from global markets," says Xpeng CEO He Xiaopeng. (Nikkei Asia, March 21, 2025)

MAN GETS PRISON FOR HELPING PRESSURE PRC EXPAT TO RETURN HOME
A 58-year-old PRC citizen and U.S. green card holder has been sentenced to 20 months in prison for aiding China's worldwide campaign to repatriate "criminals," known as "Operation Fox Hunt." "Quanzhong An acted at the direction of the (PRC) government to harass and intimidate individuals living on U.S. soil as part of a pernicious scheme to force their repatriation," confirms U.S. Attorney John Durham. In 2017, An, who lives in New York, went to the home of a target's son and pushed him to pressure his father to return to China. He later arranged for a PRC official to pressure the man's son by phone. An acknowledged that the embezzlement case against the man was a pressure tactic and said PRC officials would "keep pestering" him if he didn't return. "Their intent is to make your life difficult," the indictment quotes him as saying. In 2020, An and six others were charged. That number includes An's daughter, Guangyang An, who is currently awaiting sentencing after pleading guilty last May. (Associated Press, March 20, 2025)