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Thanksgiving is also famous for the three-hour live TV coverage of the parade in NYC with hundreds of floats, helium balloons, marching bands and the occasional superstar looking for a bit of nationwide coverage.


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Those same high winds also caused the New York Police to have to stab and stomp down Barney over crowd concerns. They also stabbed Pink Panther for the same reason. I have searched Youtube for two days trying to find footage of the balloon stabbings, alas nothing. (If you have any please comment!)

[EDITORS' NOTE: After more than 1,500 issues, the China Reform Monitor is undergoing a name change. Beginning with this edition, it will be rebranded as the China Policy Monitor - a title we believe more accurately reflects our recent coverage of Chinese politics and policy, as well as the potential for change within the country at present. Thank you, as always, for your continued readership.]


CHINA SOLD DRONES TO RUSSIA FOR USE IN UKRAINE

According to a recent investigation from Nikkei Asia, Russia has imported drones from Chinese companies, like U.S.-sanctioned DJI, for use in the Ukraine war. The investigation found that between December 2022 and April 2023, Russian companies imported at least 37 unmanned aerial vehicles (UAVs), totaling roughly $103,000, "for use in the special military operation" that Moscow is prosecuting against Kyiv. Since the start of the war in Ukraine last year, however, China's total drone exports to Russia have amounted to a much larger figure: $32 million. For its part, Beijing has denied offering material support for Russia's war in Ukraine, and DJI has disputed Nikkei Asia's findings. (Nikkei Asia, July 1, 2023)


BEIJING SLAPS EXPORT BAN ON RARE EARTH METALS

When Washington levied restrictions on the sale of semiconductors to Beijing in late 2022, China's response was initially muted. That initial restraint has now passed, and Beijing has begun retaliating. Beyond singling out Western companies for shakedowns, the Chinese government is now experimenting with export restrictions on two metals, gallium and germanium, important for commercial uses like the creation of computer chips. Restrictions on gallium and germanium may have a ripple effect on key supply chains, like those for semiconductors and electric vehicles. China produces most of the world's germanium and gallium, but major industrial users of the metals expressed varying levels of concern. The new restrictions are seen as China's way of countering efforts by the United States to "de-risk" critical supply chains, which involves strategically decreasing dependence on Chinese suppliers. (Reuters, July 4, 2023)


NEW SECURITY LAW TAKES AIM AT WASHINGTON'S TECH OFFENSIVE

In late June, China enacted a new law aimed at bolstering its ability to impose "countermeasures" against foreign actions it deems security threats. The new law is unprecedented in scope, and highlights several of Xi Jinping's premier foreign policy initiatives, including the Global Development Initiative and the Global Security Initiative. China's passage of the measure is a response to Western export controls on critical technology and a growing multilateral commitment to "de-risk" supply chains and reduce dependence on China for critical goods and technology. China has condemned these moves, and responded with investigations into American firms like Micron and Mintz Group, as well as by detaining employees of Japanese companies. (CNN, June 29, 2023)


CHINA'S UPDATED COUNTER-ESPIONAGE LAW PROMPTS TRAVEL WARNING 

Late last month, China updated its anti-espionage law to expand the definition of spying and ban the outbound transfer of information related to national security. The expanded law may impact American companies doing business in China. According to the U.S. National Counterintelligence and Security Center (NCSC), "U.S. companies and individuals in China could... face penalties for traditional business activities that Beijing deems acts of espionage or for actions that Beijing believes assist foreign sanctions against China." Relatedly, the State Department has updated its travel advisory for China to warn Americans "to reconsider travel" due to the risk of wrongful detention. (Reuters, June 30, 2023)


"SPY BALLOON" DRAMA PERSISTS IN WASHINGTON 

On June 29, Pentagon spokesman Brig. Gen. Pat Ryder reiterated a claim previously made by Defense Department officials that China's spy balloon did not collect any intelligence during its overflight of the U.S. earlier this year. According to Ryder, "We believe that (the balloon) did not collect while it was transiting the United States or flying over the United States, and certainly the efforts that we made contributed." Ryder's claim, however, contradicts prior reporting from NBC News, which reported that the balloon did manage to successfully collect intelligence. It also comes on the heels of President Biden's characterization of Xi Jinping as a "dictator" - who, according to the president, was "very upset" about not knowing about the balloon's entry into sovereign American airspace. (CNN, June 29, 2023)

New balloons debuting this year include Leo the lizard, a character from a Netflix film, who is more than 40 feet (12.5 meters) tall, as well as ones that have been there before - like SpongeBob, coming in at 44 feet (13.4 meters).

Some characters, like Snoopy, have been in the parade for many years, but this year's balloon is a new Beagle Scout Snoopy version - celebrating the 50th anniversary of his first appearance in the Peanuts comics. 006ab0faaa

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