Last week, we took a look at the latest developments concerning China, including information reportedly provided by a high-level Chinese defector linking the Wuhan lab with the military bioweapons program, and also the crack-down by the CCP on academics and billionaire business moguls to keep them in line. Today, we see how they must have put the screws to Nike, as that corporation’s Chief Executive Officer John Donahoe said in a phone call to Wall Street analysts, “Nike is a brand that is of China and for China.”

That statement, part of a transcript released by Nasdaq, seems oddly inconsistent, considering that as recently as March, Nike expressed concern about “reports of forced labor in, and connected to, the Xinjiang Uyghur Autonomous Region.” In a statement, they said that “Nike is committed to ethical and responsible manufacturing and we uphold international labor standards...Nike does not source products from the XUAR and we have confirmed with our contract suppliers that they are not using textiles or spun yarn from the region.” Read the whole statement, and it sounds as though they were concerned and being quite diligent about this.

https://archive.is/PLRfG#selection-203.111-205.41

But the inconsistencies are stark. According to an article in THE FEDERALIST, there are believed to be over 1 million Uyghur Muslims being held in Xinjiang and used for forced labor to deliver 80 percent of Chinese cotton. And last November, when the Uyghur Forced Labor Protection Act was making its way through the House –- overwhelmingly passed 406 to 3 –- Nike joined with Coca-Cola and Apple to lobby against it. The bill prohibits “certain imports” from Xinjiang and imposes sanctions on those responsible for human rights violations in that region. Why would American corporations have been lobbying against THAT?

Nike is the biggest sports brand in all of China. Donahoe’s revealing phone call came as a new earnings release shows Nike’s sales in China for the past three months at $1.9 billion. This is 17 percent higher than the same time last year.

Incidentally, Nike gave over $604,000 in campaign donations in 2020, 80 percent of which went to Democrats, no doubt because they prefer the Democrats’ looser policy towards China.

“We’ve been in China over 40 years,” Donahoe said in the phone call, “and the biggest asset is consumer equity...it’s real; I saw it in my first week on the job.”

https://thefederalist.com/2021/06/25/of-china-and-for-china-nike-ceo-admits-company-exists-to-serve-communist-china/

We did a little research to try to understand what Donahoe meant by “consumer equity" regarding their marketing plan in China. In general, this term translates to “the present value of the total revenues that the customer base will generate in its lifetime.” This value is driven by three factors: perceived value for the money, emotional connection to the brand, and loyalty to the brand. The greater the consumer equity, the more future revenue can be derived over the lifetime of its clients.

And apparently, in his first week on the job, Donahoe saw evidence that these measures of long-term profitability are strong in China. When it comes to China, Nike is playing the long game, and so they have to stay on the CCP’s good side.

In light of that, a story in the WASHINGTON EXAMINER made some sense out of Nike’s flip-flopping. Apparently, after Nike’s statement in March, they were hit with a backlash on China’s social media. Looks as though the CCP has pulled Nike back into line.

https://www.washingtonexaminer.com/news/nike-ceo-company-china

In March of 2020, the Australian Strategic Policy Institute reported that “the Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labor, Uyghurs are working in in factories that are in the supply chain for 82 well-known global brands in the technology, clothing and automotive sectors, including Apple, BMW, Gap, Huawei, Nike, Samsung, Sony and Volkswagen.”

According to this report, “Since 2017, more than a million Uyghurs and members of other Turkic Muslim minorities have disappeared into a vast network of ‘re-education camps’ in the far west region of Xinjiang, in what some experts call a systematic, government-led program of cultural genocide.” Inside these camps, detainees are forced to undergo political indoctrination, to renounce their culture and religion, and even in some instances to undergo torture. It’s a harsh, military-style life in which the workers are under constant surveillance and the threat of detention.

“There is mounting evidence that that many Uyghurs are being forced to work in factories within Xinjiang,” the report says. “...Some factories appear to be using Uyghur workers sent directly from re-education camps.”

This report is an eye-opener, a must-read. In addition to outlining exactly what China is doing to essentially enslave its ethnic minorities, it also contains a long list of companies, mostly American, “potentially directly or indirectly benefiting” from forced labor. Nike is just one, sharing the honor with many well-known brands. “Some brands are linked with multiple factories,” it says.

I would add that some of these corporations are going overboard right now trying to build an image of “woke-ness” in the United States. How “woke” are they to the idea that slave labor is a bad thing?

Don’t miss Case Study #1: UYGHUR WORKERS MAKING NIKE SNEAKERS IN QINGDAO. It even has pictures.

https://www.aspi.org.au/report/uyghurs-sale

According to this report, these people who apparently make Nike shoes are not free, are not allowed to practice their faith, and must undergo political indoctrination in “night school” after work. They live and labor in a compound surrounded with barbed wire and watchtowers and are monitored everywhere they go.

Under Case Study #3, about workers making selfie cameras for Apple iPhones, the report says their work assignments were “highly politicized.” According to a local Xinjiang newspaper, the workers “were expected to ‘gradually alter their ideology’ and turn into ‘modern, capable youth’ who ‘understand the Party’s blessing, feel gratitude towards the Party, and contribute to stability.”

In its conclusions, the report says, “The tainted global supply chain that results from these practices means that it is not difficult to guarantee that products manufactured in China are free from forced labor.” Can you say, “MADE IN THE USA”?

This report is quite long and detailed, but I hope you’ll read the whole thing. As for Nike, I would say that hearing from their CEO that the Nike brand is “of China and for China” should be enough to tell us that it’s not for America. Nike's marketing plan seems to be based more in China, anyway. And if they’ve decided it’s worth humoring the CCP to maintain “consumer equity” in China, well, they can have it.

But I hope Americans will renounce any brand loyalty THEY might have had and go to the trouble of looking for shoes, sporting gear and clothing made here –- or at least not in China –- by people who choose the work they do, can think and worship as they please, and don’t exist behind barbed wire.

Finally, if you have access to THE EPOCH TIMES’ “premium” reporting, I recommend a related piece, about the CCP’s manipulation of American companies (like Nike) to shape public opinion, influence government decisions, and acquire U.S. technology.

https://www.theepochtimes.com/mkt_breakingnews/china-is-manipulating-american-businesses-to-serve-beijings-interests-house-gop-investigation-finds_3876041.html?utm_source=newsnoe&utm_medium=email&utm_campaign=breaking-2021-06-27-3&mktids=1a70f5541a0c24ba8174d8738f88db5e&est=bkVpu8EfwdI7AI4T%2FwFx5roim0t5jn8TiyEzqyKjt607IohT6Ie3tP46GrGaeMBfWkE3UA%3D%3D

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UPDATE On Chinese Defector, And Some Intriguing Context

By Mike Huckabee

Gordon Chang, expert on China and author of THE GREAT U.S. - CHINA TECH WAR, appeared on TUCKER CARLSON TONIGHT Monday to speak further on the likelihood that Dong Jingwei, the 57-year-old head of counterintelligence for the Chinese Ministry of State Security, had flown from Hong Kong to California on February 10 and defected to the U.S. Defense Intelligence Agency, bringing with him a treasure trove of secret information.

Chang reiterated that he thinks the story is true.

China is denying that this happened, of course, and both BEIJING DAILY and the Hong Kong publication SOUTH CHINA MORNING POST have reported that Dong is in China doing whatever spooky things he normally does in the land of Chinese spooks, such as giving presentations at spy-catcher seminars.

https://www.scmp.com/news/china/politics/article/3137958/top-chinese-spy-catcher-dong-jingwei-warns-agents-look-out

Chang does not believe their reports, as “China has every reason in the world to parade this guy in front of the cameras. That would squelch all sorts of rumors that are damaging to the regime. Now, China hasn’t done that, and that to me says that we have him, and that he, in fact, defected.”

Incidentally, the SOUTH CHINA MORNING POST story makes reference to the “new anti-espionage regulation released in April” that applies to “not only Chinese government departments, but also social groups and businesses, supplemented with lists of Chinese entities that are assigned counter-espionage responsibilities.” This onerous new law has received very little press in the United States, so I'm taking the opportunity here to describe it. Under this law, once entities been designated by the government, they're required to watch for and prevent foreign espionage activity. They must “vet and train personnel, particularly ahead of foreign trips, after which they must be debriefed about any national security issues.” This law treats even universities and private businesses as if they’re “sensitive government agencies.”

https://abc17news.com/news/national-world/2021/04/26/china-targets-foreign-spies-and-hostile-forces-with-new-anti-espionage-rules/

More on this soon, but for now, back to the Chang interview. Tucker brought up the fact that the media are suddenly changing their tune on the origin of the virus, as if they knew...somehow...they could no longer get away with spouting their original fairy tale about bat soup. And Chang noted what seems to be a similar shift of opinion among officials of the Biden administration. This story out of Australia mentions that same shift as evidence that the defection probably happened.

https://www.news.com.au/world/coronavirus/chinese-spy-dong-jingwei-defects-to-the-west-while-offering-covid-secrets/news-story/d61277b586d043c6942bcce7b8b70d44

Chang said this could be due to any of a number of things, perhaps political pressure, but he thinks it’s because they now have evidence of a leak from the Wuhan Institute of Virology.

Even more important is the information that the Chinese military was working with that lab as part of its bioweapons program.

As for China intentionally releasing the virus, Chang believes this scenario is possible but unlikely, given that they didn’t yet have a vaccine. He thinks it was a mistake, and that China “wasn’t able to contain it.” On the other hand, he noted that while foreigners typically believe the leak was accidental, Chinese nationals are more likely to think it was released on purpose. They know their government all too well.

We came across another report from that same Australian news outlet that provides a lot of context for this alleged defection. It says that no “convincing” photo of Dong has been released since last September, and the one that's purported to be him isn't persuading anyone. This story also includes some intriguing background on Dong’s daughter.

https://www.news.com.au/world/asia/who-is-dong-jingwei-why-us-china-wont-prove-they-have-spymaster/news-story/dc431d5bd5c547bae82c71e769cbc29f

All we’d seen in the press about Dong Yang was that she'd been studying at a California university, but now there’s more: She’s reportedly the ex-wife of Alibaba executive Jiang Fan. Alibaba, an international tech firm, has been in the crosshairs of the CCP in recent months. The company is being scrutinized for alleged “antitrust” and “corruption” issues. Jack Ma, Alibaba’s CEO, “disappeared” for several weeks earlier this year.

Since that time, Ma has reportedly “embraced supervision.” (Ah, there’s a euphemism for you.) And he rarely appears in public or makes public statements. The CCP appears to be cracking down in general on billionaires and academics. Interesting case in point: at the same time we were hearing denials of a nuclear accident of some kind at the China Taishan power plant, one of its leading nuclear scientists, Vice President of Harbin Engineering University Zhang Zhijian, reportedly “fell” from his building. No details were given.

Another billionaire, the chairman of a Chinese high-tech firm, got in hot water and was ordered to “keep a low profile” after publishing a historic poem as part of a media campaign. This poem was critical of an ancient emperor. In China, criticism of emperors is banned on social media, as it could be interpreted as criticism of their current leader-for-life, Xi Jinping.

(Wow, you thought censorship on American social media was bad! On the other hand, this story gives us a peek at just how bad it can get, and almost certainly WILL get if we don’t weaken the power of Big Tech.)

Another billionaire, this one in agriculture, lost control of his business after being arrested over a minor property dispute. He’s since been charged with “seeking quarrels and provoking trouble.”

So our speculation is that this kind of crackdown by the CCP might have had some impact on Dong’s daughter, considering her ties, and might even have something to do with the defection. Just a hypothesis. We’ll see if anyone else makes this connection.

I’ll leave you with the words being (falsely?) attributed to Dong from that seminar, as they relate to the way China is cracking down on business moguls and, ironically, might even describe what Dong himself has done by defecting: “In particular, some individuals are willing to be ‘internal traitors,’ secretly colluding with foreign spies and intelligence agencies and hostile forces to engage in anti-China activities. Individuals ‘act behind the scenes’ and send funds to hostile forces through illegal channels to support anti-China activities. These ‘traitors’ and behind-the-scenes gold masters’ have severely endangered the country’s political security. They will eventually be nailed to the pillar of shame in history.”

Translation: we need to keep this man, and his daughter, safe.

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