Hello everyone, welcome to “Tang Qing’s Current Affairs” on Epoch Times. At the beginning of 2025, a series of events have captured headlines. Gold is being fiercely sought after; TEMU and SHEIN have stumbled in the United States; a scam park in Myanmar explodes, and the military releases mysterious signals.
What is the story behind these storms? Let’s discuss it together.
Recently, a “gold buying frenzy” has swept across various parts of China, reminiscent of the Spring Festival travel rush. In front of a traditional gold shop at the SKP shopping mall in Beijing, a long line formed early in the morning on February 9th. Some people endured the freezing winds for five hours before reaching the counter, while others waited for seven hours only to leave empty-handed.
In Shanghai’s Yuyuan area, people started queuing with suitcases as early as 4 am, and within just two hours of opening, the line reached over two hundred. Hangzhou saw even more extreme scenes with queues forming circles, causing many observers to give up directly at the sight.
Why is there such a frenzy for gold? In simple terms, it’s about “preserving value and hedging risks.” A woman named Lu from Shandong said: “It’s hard to earn money now, the depreciation of the Renminbi is severe, bank interest rates are pitiful, so buying gold for value preservation seems like a better option.” This kind of anxiety resonates with many people.
Where there is a crowd, there is “opportunity”. Gold traders immediately sensed the “gold” rush. Gold bars from multiple banks were sold out long ago, leaving only pre-sales available.
According to the traders in line, gold was being fiercely sought after even before the lunar new year. Popular styles like gourds and vajra rods were selling out within hours, and some traders even sourced goods from Hong Kong. In China, it’s not easy for ordinary people to buy high-purity gold bars.
Financial scholar Cheng Xiaonong analyzed it thoroughly: the depreciation of the Renminbi coupled with limited investment channels has left the Chinese people with no alternatives. The Chinese stock market is in shambles, making it difficult to even preserve capital, let alone profit. Want to invest in US stocks? Sorry, policies have shut that down. Pathetic bank interest rates leave savings “shrink”. Moreover, with President Trump recently imposing tariffs on the Chinese Communist Party, the pressure to safeguard the Renminbi has increased. Now, gold has become the “last refuge.”
Do you think only ordinary citizens are after gold? As a matter of fact, the Chinese government is more eager to hoard gold than anyone else. This is where it gets interesting. According to Bloomberg, China has allowed insurance companies to increase their gold investments for the first time. The top 10 insurance companies can allocate up to 1% of their corporate assets to buy gold, which means a surge of 200 billion RMB into the gold market.
Moreover, the People’s Bank of China has been busy too, increasing its gold reserves for three consecutive months. Last year alone, it purchased 44.17 tons, bringing the total reserves to 2,279.57 tons, ranking sixth globally.
Now you might wonder: with the public and the government rushing for gold, how long will this “gold storm” last? Will gold prices continue to soar? Is it time to buy or to wait and watch?
However, no matter how fiercely the gold rush is, it cannot conceal the setbacks that the Chinese Communist Party is facing elsewhere. Take the past few days for example, the United States has sent a clear warning to TEMU and SHEIN, thwarting China’s dream of e-commerce exports.
Recently, TEMU and SHEIN have been facing worrying sales declines in the United States— TEMU dropped by 32%, while SHEIN’s decline ranged between 16% to 41%. Both companies faced five consecutive days of decline, wiping out the gains from the end of January.
Did you know? These two companies were making a fortune in the US. Especially TEMU, with a transaction volume of GMV reaching $20 billion in the first half of last year, surpassing the total of $18 billion for the entire year in 2023. And the US market accounted for 45% of TEMU’s business.
The reasons for this dramatic decline, you ask?
Let’s first talk about how TEMU and SHEIN took the US market by storm. They capitalized on a loophole in the US policy— duty-free for packages under $800.
The US has long had a rule for duty-free parcels under $800. As a result, China took advantage of this, flooding the market with cheap products to lower overall prices.
Last year alone, the US received 13 million such duty-free packages, with TEMU and SHEIN accounting for nearly half of them. This is not merely doing business; it is plainly fleecing the US.
Now, the US has tightened the policy on the duty-free threshold of $800, and may even impose additional tariffs. When consumers see that buying from TEMU and SHEIN is no longer cheap, they immediately stop making purchases.
As the saying goes, “pulling the wool too much, finally provokes the shearers.”
Taking this hit, SHEIN was caught off guard. Originally planning to go public in London this year, that plan is likely on hold now.
Despite doubling its profits last year and earning $2 billion, with a valuation of $50 billion, SHEIN has a lot of skeletons in the closet. The company had considered listing in the US before, but the fear of scrutiny over “sweatshops” and “supply chain shadiness” made them back out; now they turn to London for listing? It’s not easy either.
Some scholars have pointed out that the US’s move not only affects TEMU and SHEIN but also strikes at the economic jugular of the Chinese Communist Party.
Shanghai, seen as a barometer of the Chinese economy, is not immune to the downturn. With foreign capital withdrawing, shops closing down, the vitality is disappearing, and the sight of desolation is everywhere.
Now, let’s turn to look at the movements within the Chinese military.
Have you noticed that recently, the Chinese military newspaper has quietly sent out an intriguing signal—a new military inspection regulation has been released, but without the key phrases “Chairman of the Military Commission responsibility system.” This is a significant detail that could directly affect Xi Jinping’s position within the military. We will delve into the hidden meanings and implications.
On February 12th, the Chinese military newspaper reported that the Central Military Commission of the Chinese Communist Party had just issued revised “Regulations for Military Inspection Work” that will take effect from February 1st this year, replacing the 2018 “Central Military Commission Inspection Regulations,” which have now become history.
This is the second time the military inspection rules have been discarded. The first time was in 2018 when the 2013 version was abolished, including the inspection team rules of the former General Political Department. Each time the rules have been discarded, it indicates some crucial changes and realignments.
Let’s revisit the changes made in 2018 which were quite dramatic.
In the 2013 regulations, the guiding ideology revolved around the thoughts of Deng Xiaoping, the “Three Represents,” and the concept of scientific development, along with a mention of “resolutely implementing Chairman Xi’s series of instructions,” though it did not imply personal reverence.
By 2018, the tone had completely changed—the new “Inspection Work Regulations” were filled with Xi Jinping’s influence throughout:
For instance, the guiding ideology combined Marxist-Leninist principles, Mao Zedong’s ideology, and Xi’s thoughts, explicitly mentioning “Xi Jinping’s Strong Military Ideology” in four ways; it clearly stated “resolutely upholding and implementing the Military Commission Chairman responsibility system”; and emphasized “ensuring the implementation of instructions from the Party Central Committee, the Central Military Commission, and Chairman Xi.”
These regulations did not just outline military inspection rules; they essentially stood as a declaration of loyalty to Chairman Xi. It is noteworthy that in 2018, following the 19th Party Congress where Xi’s ideology was embedded into the party’s constitution, and Xi became the third leader after Mao Zedong and Deng Xiaoping to have his thoughts enshrined in the party charter, solidifying Xi’s authority to unprecedented levels.
From that point onwards, the military newspaper was filled with slogans of “loyalty to Chairman Xi,” with phrases like “establish,” “uphold,” and “implement” dominating the content, overshadowing the rest of the Military Commission members who were reduced to mere decorations. However, this kind of personality cult management style was breeding dissent within the military ranks, with many high-ranking military officials reluctant to comply. Consequently, Xi Jinping began a series of purges each year, aimed at eliciting absolute loyalty.
Now, regarding the new regulations, though the complete text has not yet been made public, the initial report from the military newspaper on February 12th hinted at some significant changes.
In comparison to the Xi-centric tone of the 2018 regulations, the telltale signs in the recent report suggest that several key terms have suddenly disappeared—
The mention of the “Chairman of the Military Commission responsibility system” was omitted. Also absent was the mention of “Chairman Xi” in the text.
Upon closer inspection, this is a glaring signal. The “Chairman of the Military Commission responsibility system” is the core of Xi Jinping’s military authority and was a critical aspect of the 2018 inspection regulations. Now, with the military newspaper avoiding this phrase, it likely signifies that this explicit attachment to Xi Jinping has been removed in the new rules.
This is not just a mere linguistic shift; it indicates the redrawing of the military leadership landscape.
In fact, this change in the direction had begun last year. Do you remember hearing the rumors last July about Xi Jinping having a stroke? Following that, a series of strange events unfolded in the upper echelons of the military, with the military newspaper beginning to contradict what was ostensibly being propagated—
On August 10th last year, the military newspaper spoke at length about “democratic decision-making” and released the “Democracy Centralization Readings” booklet, emphasizing the implementation of democratic decision-making in the military sphere too. This was a direct challenge to the supreme authority of Xi.
On December 9th last year, the “Great Wall Watch” section of the military newspaper directly undermined the personality cult around Xi Jinping, underscored by affirmations such as “Collective Leadership is the Highest Principle,” emphasizing “the Division of Responsibilities” rather than the “Chairman of the Military Commission responsibility system.”
This open rebuke against Xi was quite audacious. The abrupt transformation in the military dynamics, with the constant power struggle surfacing in various forms, led to a trail of conflicts, indicating potential rifts within the senior military ranks.
Considering the recent incidents within the Chinese military, the growing discontent and internal power struggles, the intense expressions in the military newspaper, and the public dissent against the prevailing political regime, one cannot help but speculate about the underlying implications and the imminent power play that might unfold within the Chinese military leadership.
Feel free to share your thoughts on the recent upheavals reported in the Chinese military newspaper. It’s a delicate situation that warrants close observation and careful analysis. Don’t forget to like, subscribe, and share; until next time.
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