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SCHWEIZER
BOTSCHAFT IN BEIJING
EMBASSY OF SWITZERLAND IN BEIJING
AMBASSADE DE SUISSE EN CHINE |
Der wöchentliche
Presserückblick der Schweizer Botschaft in der VR China
The Weekly Press Review of the Swiss Embassy in the People's Republic
of China
La revue de presse hebdomadaire de l'Ambassade de Suisse en RP
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DPRK
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Latest US-China trade talks end not with a bang but a whimper, if heard at all (SCMP)
2018-08-24
Talks between the United States and China in Washington this week concluded with no concrete steps toward ending the bilateral trade war that started last month. Since their announcement last week, the relatively low-level negotiations between representatives of the two countries have been clouded in scepticism from pundits and government officials on both sides of the Pacific – a scepticism that has apparently borne out. At the invitation of the US, a Chinese delegation led by the vice-minister for commerce, Wang Shouwen, travelled to Washington for two days of talks starting on Wednesday. The discussions were hosted on the US side by Treasury Undersecretary for International Affairs David Malpass. A short statement released by China's Commerce Ministry after the talks said the two sides had "constructive and frank exchanges" over trade issues, and would "keep in touch". White House Deputy Press Secretary Lindsay Walters told reporters:"We concluded two days of discussions with counterparts from China and exchanged views on how to achieve fairness, balance, and reciprocity in the economic relationship, including by addressing structural issues in China such as those identified in the Section 301 report". "We appreciated the Chinese delegation coming to the United States to participate in these meetings." Previous rounds of talks had involved China's vice-premier Liu He and US cabinet-level department heads, including Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross. This is a mutual probing rather than a serious negotiation aimed at a deal. Neither the US nor China feels it's time to back down. Yun Sun of the Stimson Centre"If Liu He wasn't able to have an agreement how could we expect a vice-minister of commerce to come to the US to have a negotiation with the department of Treasury rather than the US Trade Representative?" Yun Sun, East Asia Programme senior associate at the Stimson Centre, a Washington think tank, said in an interview. "It's not the right level, not the right people and it's not the right institution." Yun continued: "I think the Chinese were interested in this round of talks because the tariffs have been in place for almost two months and they wanted to test the waters to see whether the Trump administration has at all recalibrated its bottom line," Sun added. "This is a mutual probing rather than a serious negotiation aimed at a deal. Neither the US nor China feels it's time to back down." The lack of any progress lowers the chances that a chorus of opposition to the trade war from many US business groups will prevent the rift from harming the entirety of the bilateral trade relationship. The US Trade Representative (USTR) has been phasing in tariffs since July 6 and Trump has threatened to slap them on all of China's exports to the US if Beijing continues to retaliate. Pessimism over the talks had taken hold even before they started.Trump told Reuters on Monday that he did not "anticipate much" from the meeting, and that he had "no time frame" when it came to resolving the escalating trade war. An administration official who briefed reporters on background on Thursday insisted that the president was open to "engaging with Chinese officials on these issues", and that the US hoped China "will take seriously the concerns [we have] raised, and that that can put us on a better posture". But Trump administration officials did not wish "to create any expectation of any announcement coming out" of the meetings. Meanwhile, the trade war continued its escalation on Thursday, as the US enacted punitive tariffs of 25 per cent on US$16 billion of Chinese imports, an action that was immediately mirrored by China. China's Ministry of Commerce said on Thursday that the latest US import duties violated World Trade Organisation rules, and that China had no alternative "but to take countermeasures". This week also saw the USTR hold an unprecedented six-day public hearing ahead of further tariffs on US$200 billion of Chinese goods, expected to go into effect in September. Initially proposed at 10 per cent, the duties could be raised to as much as 25 per cent, at Trump's direction. The additional tariffs would effectively slap levies on half of all Chinese exports to the US, or roughly double what China imports from the US. Business representatives, trade association leaders and legal experts have come out in force at the trade representative's hearing in a bid to dissuade the office from going ahead with the proposed tariffs. Witnesses have spoken of the potential of the punitive action to "decimate" their industries, which range from electronics to apparel to chemicals. Echoing the testimonies of previous hearings, the USTR panel was told that further punitive action would slash profit margins for small and medium-sized businesses that rely on Chinese manufacturing, and would ultimately pass the financial burden on to end-customers, including public institutions like hospitals. Despite resistance from industry and business, support within the agricultural sector – a stronghold of Trump voters – remains solid. Presidential ratings among farmers are even on the rise in some states, despite the fact that soybean producers, many of whom rely exclusively on the Chinese market, are facing the worst of the tariff storm. That loyalty is likely to be bolstered by a US$12 billion bailout for farmers that Trump approved last month. A deal on the North American Free Trade Agreement (Nafta), expected in the coming few days, could also leave Trump on firmer ground when it comes to maintaining his aggressive strategy towards trade with China. Mexico and the US are expected to reach agreement on the deal by the end of this week, though Mexico's commerce minister emphasised yesterday that a final handshake on the trilateral deal would require the presence of all three parties, including Canada. Drawing attention to a deal on Nafta, should it go ahead, is likely to be a higher priority for the White House. "Compared to the case of China, the room for negotiation is slightly bigger in the case of Mexico and Canada," said Sun. "If Trump is able to have better deals with America's traditional trading allies then it will give him more leverage vis-à-vis China because one of China's counter-measures was to try to build a global anti-Trump, anti-trade-war coalition with like minded countries, but [that] has failed with EU. "And if Trump is able to have similar deals with Mexico and Canada, It would strengthen Trump's position with China." ^ top ^
US 'deeply concerned' after China denies BuzzFeed reporter visa (SCMP)
2018-08-24
The US embassy in Beijing said on Friday it was "deeply concerned" about Chinese government restrictions on foreign and domestic journalists after authorities refused to issue a new visa for an American correspondent for BuzzFeed News. Reporter Megha Rajagopalan was forced to leave the country after her visa application was denied. Media freedom advocates say the move raises concerns China was punishing her for her work on subjects considered sensitive by the communist government. China says it handles all visa issues in accordance with the law and has denied cancelling Rajagopalan's visa, saying on Thursday that unlike other accredited journalists, she was not a resident correspondent, indicating that she had been on short-term visas. A Foreign Ministry spokesman, Lu Kang, dismissed as speculation questions about whether the move was made in retaliation for her reporting. "No matter what speculations you made, the context is wrong. It is not about her visa being cancelled. Unlike you, she is not a resident foreign correspondent in China," Lu said at a regular briefing. The embassy statement did not mention her by name. "The United States is deeply concerned that foreign and domestic journalists in China continue to face excessive restrictions that impede their ability to do their jobs," the statement said. However, it listed delays in processing foreign journalist visas, travel restrictions and violence at the hands of local authorities among its concerns. It said better access in China was necessary to "ensure reciprocity" for the open access Chinese media enjoy in the US. During her six years in China, Rajagopalan had reported extensively on human rights abuses and the plight of China's Uygur Muslim minority, among other subjects. Hundreds of thousands of Uygurs have been arbitrarily detained in indoctrination camps, where they are forced to denounce Islam and profess loyalty to the Communist Party. A UN anti-discrimination committee raised concerns earlier this month over the treatment of Uygurs, citing reports of large-scale detentions that it said "resembles a massive internment camp that is shrouded in secrecy." China has angrily denounced such criticism. Reporters working for China's entirely state-controlled media enjoy even less freedom on what they can report. Chinese President Xi Jinping has repeatedly demanded that media serve the party's interests and "tell China's story well". ^ top ^
Huawei says Australian government wrong to block it from supplying 5G on security grounds (SCMP)
2018-08-24
Huawei Technologies, the world's largest telecom equipment vendor, said Australia's decision to bar it and ZTE Corp from taking part in the country's 5G infrastructure development was made on political grounds, a move that undermined fair trade and hurt the interests of local consumers. "The Australian government's decision to block Huawei from Australia's 5G market is politically motivated, not the result of a fact-based, transparent, or equitable decision-making process," Huawei said in a statement on Friday. The decision is not aligned with the long-term interests of the Australian people, and denies Australian businesses and consumers the right to choose from the best communications technology available, Huawei said, adding that a non-competitive market will raise the cost of network construction and have lasting effects on Australia's transition to a digital economy. In the end, everyday businesses and consumers are the ones who will suffer the most from the government's actions, Huawei said. Both Huawei and ZTE, the two leading Chinese telecom equipment vendors which invest heavily on research and development of next-generation networks, have been excluded from building Australia's 5G infrastructure after Canberra laid out new rules on Thursday. The government barred the involvement of vendors who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law, as that may result in failure to adequately protect the 5G network from unauthorised access or interference, it said. Though the security guidance to Australian carriers did not name any telecom equipment vendor, Huawei said in a Twitter post that it has been informed by the government that Huawei and ZTE have been banned from providing 5G technology to the country. "This is an extremely disappointing result for consumers. Huawei is a world leader in 5G. Has safely and securely delivered wireless technology in Australia for close to 15 year," Huawei Australia said in a post on Twitter on Thursday. Canberra's latest decision on Huawei and ZTE also came at a time as the trade war between China and the US escalates. Both sides slapped 25 per cent tariffs on another US$16 billion of each other's imports on Thursday. China's Vice-Commerce Minister Wang Shouwen was also in Washington for talks with US Treasury Undersecretary David Malpass, trying to defuse tensions between the two largest economies in the world. "For any country, fair and robust market competition is essential to strong economic growth," Huawei said in the statement. "The Australian government's actions undermine the principles of competition and non-discrimination in fair trade." Huawei, once again, denied that it has ever been asked to engage in intelligence work on behalf of any government, saying a mistaken and narrow understanding of Chinese law should not serve as the basis for concerns about Huawei's business. "Chinese law does not grant government the authority to compel telecommunications firms to install back doors or listening devices, or engage in any behaviour that might compromise the telecommunications equipment of other nations," it said. The Shenzhen company also counter-attacked Canberra's reasoning that 5G required a network architecture that is significantly different to earlier mobile generations and that the government had found no combination of technical security controls that sufficiently mitigated the risks. "There is no fundamental difference between 5G and 4G network architecture; the core networks and access networks are still separated," Huawei said in the statement. "Moreover, 5G has stronger guarantees around privacy and security protection than 3G and 4G. We urge the government to take an objective and fact-based approach to security issues, and work together on effective long-term solutions." The company goes on to call on "open dialogue, joint innovation, and close collaboration" so that the industry can develop, according to the statement. In July, Huawei scored an A$136 million contract to build and maintain the digital radio systems that deliver voice and data services across Perth's rail network in Australia, in spite of security concerns raised by some Australian lawmakers. The deal came less than a month after it refuted claims by some Australian lawmakers that it posed a security risk, calling the criticism "ill-informed" in an open letter in mid-June. It also occurred at a time when Huawei is lobbying the Australian government not to block it from supplying broadband equipment for Australia's 5G mobile services roll-out. "The government has not issued any specific concerns about Huawei's governance, security, or suitability to safely and securely conduct business in Australia, so we've been given nothing to respond to," Huawei said in the statement on Thursday. The Chinese company also said it will continue to engage with the Australian government, and in accordance with Australian law and relevant international conventions, we will take all possible measures to protect our legal rights and interests. ^ top ^
Trump blames China for 'outrageous' fentanyl overdose epidemic and wants death penalty for dealers (SCMP)
2018-08-24
US President Donald Trump, who this week blamed China for the US fentanyl overdose epidemic, has told Attorney General Jeff Sessions that illegal dealers of the opioid should be sentenced to death, according to three administration officials familiar with the matter. Sessions met Trump at the White House on Thursday to discuss overhauling prison sentences, hours after Trump again ripped into the attorney general in an interview with Fox News. The meeting was cordial and the two men agreed to delay a push for any criminal justice reforms until after midterm congressional elections, one of the people said. Several other administration officials were in the meeting, including Kellyanne Conway, who is overseeing the White House's opioid response, and senior adviser Jared Kushner. On Monday, Trump pointed the finger at China, saying on Twitter: "It is outrageous that Poisonous Synthetic Heroin Fentanyl comes pouring into the US Postal System from China. We can, and must, END THIS NOW!" It's not the first time Trump has mused about sentencing drug dealers to death. Politico reported in March that the proposal would be included in a plan expected from the White House to combat the opioids crisis. Trump wants the death penalty for cases in which fentanyl dealers caused someone's death because of drugs they sold, one of the administration officials said. Under a law signed by President Bill Clinton, people who deal large quantities of drugs or make large amounts of money from the trade can already be sentenced to death. But prosecutors have never sought the penalty out of concern it would be found to be unconstitutional, Politico reported. Fentanyl is one of the world's most dangerous and most profitable narcotics, so powerful that it's been studied as a chemical weapon, Bloomberg Businessweek reported in May. It kills more people than any other opioid, including heroin, because it's so easy to overdose. The drug or its analogues killed an estimated 29,000 Americans in 2017, according to the National Institute on Drug Abuse. Republican Senator Mike Lee of Utah, a supporter of the criminal justice overhaul who met with Kushner Thursday on the issue, said in an interview that the fentanyl death penalty provision would not be added to the criminal justice overhaul, because it would jeopardise passage. Lee added that if the president wants that provision it would have to be done separately. Lee said he sees a breakthrough on moving forward with a compromise backed by the president after the midterm elections. A senior administration official said Trump wants to reach a deal on overhaul but hasn't yet committed to specifics. "We're confident we can get the votes," Lee said. The revised package drops some key provisions in the Senate Judiciary bill providing retroactivity to prisoners in the system today. In a concession to conservatives, the only provision that would be retroactive in the compromise bill is giving judges discretion to apply lower mandatory minimums for people convicted of crack cocaine crimes before a law co-authored by Sessions, then a senator from Alabama, was enacted. Other provisions limiting mandatory minimum sentences for certain crimes such as drug dealing would only affect future cases, Lee said. "We still feel like this preserves a careful balance," Lee said, and thinks it "will get an overwhelming majority of Republicans and an overwhelming majority of Democrats." He predicted they could get 70 to 90 votes for the package. Senate Majority Leader Mitch McConnell of Kentucky has agreed to do a formal whip count after the midterms, one of the administration officials said. ^ top ^
Overseas Chinese 'have role to play' in building political trust abroad for belt and road (SCMP)
2018-08-24
Overseas Chinese have a role to play in building political trust with foreign governments, a top official from Beijing's agency promoting the country's influence abroad said. The call from Xu Yousheng, deputy director of the United Front Work Department, comes as foreign countries are becoming increasingly suspicious of state manipulation of ethnic Chinese on their soil. Xu said he hoped overseas Chinese would actively promote the principle of achieving shared growth through discussion and collaboration under the "Belt and Road Initiative" – Beijing's vast strategy to build infrastructure and trade links around the world. "[Overseas Chinese] should strive to become active promoters of mutual political trust and mutually beneficial relations between China and neighbouring countries," he said in a keynote speech at a forum in Hong Kong on Thursday. Xu said cooperation between the Chinese government and overseas Chinese groups would be strengthened in the future. "We have developed a proposal with the Ministry of Commerce to cooperate with Chinese chambers of commerce and organisations in a few key belt and road countries, so they can become service centres to supply Chinese enterprises with all-round assistance," Xu said. Xu's comments were made against the backdrop of increasing scrutiny from foreign governments which accuse Beijing of using overseas Chinese as agents to promote soft power, influence local politics, or even as spies. In late June, the Australian parliament passed a package of new laws aimed at preventing foreign interference in the country. This followed a series of incidents, including revelations of ties between a politician and a Chinese businessman, and reports by Australian academics that Chinese students and scholars in the country were serving the political ends of China's embassy. The United States has closed down Chinese state-run Confucius Institutes within its borders in recent months, accusing the organisations, which promote language and culture, of having a political edge. In Singapore there are growing concerns that China is seeking to convert cultural affinities among Singaporean Chinese into loyalty to the Chinese "motherland". The United Front Work Department has been under the spotlight during this international scrutiny because of its mission of advancing the country's influence and political interests both at home and abroad. Xu, who also heads the Overseas Chinese Affairs Office, wants overseas Chinese to do more, especially for the belt and road strategy. "We hope overseas Chinese can fully utilise the advantages of being familiar with both China and the country they are in," Xu said. He added that he expected the Chinese diaspora to be a bridge for companies from China starting up in foreign countries, as well as participants in overseas Chinese projects. There are more than 60 million overseas Chinese, spread across more than 200 countries. Of those, Xu said, 40 million live in countries which are participating in the initiative. The Overseas Chinese Affairs Office – responsible for Chinese citizens living abroad or returning from overseas – together with religion and ethnic affairs, came under the purview of the United Front Work Department in a government reshuffle in March. The restructure prompted further criticism from Western governments, which believe the expanded department will provide a more coordinated and organised push for Beijing's state agenda. ^ top ^
Chinese tour agencies revive South Korea packages as THAAD spat cools down (Global Times)
2018-08-23
Travel agencies in Shanghai have resumed tours to South Korea after halting 17 months due to South Korea's deployment of the US Terminal High Altitude Area Defense (THAAD) system. Independent tours and package tours to South Korea could be found on Thursday on the website of a few travel agencies including Shanghai-based Spring Airlines, Jin Jiang Travel. But most travel agencies only offered tours to Seoul. Spring Airlines resumed the tours to Seoul and Jeju Island for up to five days at about 1,900 yuan ($276.5) a person, and also offered visa application services. A Spring Airlines travel agent said that South Korea products resumed Thursday, and no cruise tours were available to South Korea. He asked not to be named. CYTS Tours Holding Company offers package tours to South Korea and visa services for Tianjin and Beijing clients. "Some small and medium-sized travel agencies in East and South China have resumed tours to South Korea this year. However, in Beijing, a small number of tours resumed in December, but are now halted again," a Beijing-based travel industry insider told the Global Times. He refused to give his full name. "Most Chinese tourists visiting South Korea rely on individual travel rather than travel agencies," the insider said. The first group of 32 visitors left Beijing for South Korea for a five-day trip on December 2, Beijing Youth Daily reported. A total 379,891 Chinese mainland tourists visited South Korea in June, 49 percent more than in June last year, according to data published by the Korea Tourism Organization. Travel products to South Korea are not available at online travel agencies such as Ctrip and lvmama.com. "We suspended tours to South Korea since last year following the THAAD deployment, and have not resumed yet," Wang Huabei, media director of the Shanghai-based lvmama.com, told the Global Times Thursday. Chinese experts doubted whether the number of tourists to South Korea could return to the pre-THAAD level, and said the rebounding tourism won't help solve the THAAD issue. "The safety threat THAAD posed to China will not change. Instead it's getting worse with increasing US interference," Zhang Huizhi, a professor at Jilin University's Northeast Asian Studies College, told the Global Times on Thursday. As the US considers China a competitor, it has been using THAAD issue to sour relations between China and South Korea, and the THAAD issue may not be resolved in the short term, Zhang said. ^ top ^
China urges Australia to create fair biz environment (Global Times)
2018-08-23
China urged the Australian government to discard ideological biases and create a fair environment for businesses after Chinese telecom firms Huawei and ZTE were reportedly banned from providing 5G technology in the country. Cooperation between China and Australia has always been mutually beneficial, and Australia should not use any excuse to artificially set obstacles or adopt discriminatory practices, Chinese Foreign Ministry spokesperson Lu Kang said at a daily briefing on Thursday. Lu's remarks come after Huawei's Australia affiliate said on Twitter on Thursday that it was informed by the Australian government that Huawei and ZTE have been banned from providing 5G technology services in the country. Huawei called the move "extremely disappointing" for consumers. The security of 5G networks will have fundamental implications for all Australians, the Australian government said in a statement on its website on Thursday. It added that the Australian government considered "the involvement of vendors who are likely to be subject to extrajudicial directions from a foreign government that conflict with Australian law, may risk failure by the carrier to adequately protect a 5G network from unauthorized access or interference." The statement did not specifically mention Huawei and ZTE. The Australian government has seriously violated the principles of fair competition and non-discrimination in free trade, and Huawei will take legal measures to safeguard its legitimate rights and interests, the company said in a statement sent to the Global Times on Thursday. The Australian government is using security as an excuse to shield its political moves, said Huawei. "However, Huawei has never received any request from the Chinese government to gather information," the company said, adding that misjudgments and biased attitudes should never be a reason for security concerns. The ban shows that the Australian government is completely biased toward Chinese companies, which contradicts the spirit of the free market that it values, said Ruan Zongze, executive vice president of the China Institute of International Studies. "The Australian government becomes paranoid when it comes to matters involving China, which is terrible and absurd," he told the Global Times on Thursday. Ruan said politicizing business, as in the case of the Huawei ban, is against the free trade agreement signed between China and Australia, and will eventually hurt the Australian 5G industry. Higher costs It is a huge loss for Australia's 5G development, as local companies may have to spend more to build and upgrade their networks, Xiang Ligang, chief executive of telecoms industry news site cctime.com, told the Global Times. The ban will lead to higher costs in building 5G networks in Australia, "which could be 30 percent higher," he said. Huawei and ZTE would have competed with some of the world's biggest tech companies in the Australian market, such as Ericsson and Nokia. But with the ban, the latter two will deliver services at higher prices and charge higher management fees, the expert added. Outside of the US, Huawei is expected to be a major supplier of 5G radio and core network gear, according to a report released by British industry intelligence unit Ovum in June 2017. Although ZTE is performing well in China, it still lags behind Ericsson, Huawei and Nokia in other markets, the report noted. Australia will experience very slow progress in its 5G development now that it has blocked these Chinese companies, which was a political move, Fu Liang, a Beijing-based telecoms industry expert, told the Global Times on Thursday. "However, it's still too early to say that Chinese companies will lose all their opportunities in the Australian market," he said. Other Western countries are unlikely to follow Australia in blocking Huawei over security concerns, experts predicted. "Australia followed in the footsteps of the US [by going against China in such a manner], but other countries are unlikely to follow suit," Xiang said. ^ top ^
Xi to announce new actions, measures at China-African forum (Global Times)
2018-08-23
Chinese President Xi Jinping will introduce new concepts and proposals for ties between China and Africa, and announce new actions and measures on practical cooperation with Africa during the Forum on China-Africa Cooperation (FOCAC) Beijing summit September 3-4, with Chinese experts saying that China will further cultivate Africa's autonomous development capability and help boost modernization. A media briefing hosted on Wednesday by Foreign Minister Wang Yi gave more insights on what to expect during the two-day summit. Xi will deliver a keynote speech during the summit's opening ceremony on the afternoon of September 3, in which he will make a comprehensive introduction to new concepts and proposals for ties between China and Africa, and announce new actions and measures on practical cooperation with Africa, focusing on industrial development, infrastructure, trade and investment, human resources development, science, educational, cultural, and health undertakings, environmental protection, and peace and security, Wang said. Song Wei, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation in Beijing, told the Global Times on Wednesday the new set of proposals and measures are likely to be "based on the actual development needs of both sides, and further combine China's development experience and African countries' development potential." "This will further cultivate Africa's autonomous development capability and help boost Africa's modernization," she said. Wang said that the summit is expected to build a closer community of shared future between China and Africa, connect the Belt and Road initiative to African development, lay down a path for China-Africa cooperation at a higher level and boost friendship between the two sides. Xu Weizhong, deputy director of the Institute of West Asian and African Studies at the China Institutes of Contemporary International Relations, told the Global Times on Wednesday that China and Africa share a similar history of being colonized and have the same goal of peaceful development. Direct communication and cultural exchange are of importance as the Chinese and African peoples often only get information on each other via Western media, which could be twisted and not objective, Xu said. The summit will see the signing of the Declaration of the Beijing Summit on building a closer community of shared future between China and Africa and the FOCAC Beijing Action Plan (2019-21) on September 4, Wang said. The declaration will guide development of China-Africa relations in the next three years, Song said. ^ top ^
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China's rising military stars take centre-stage as annual promotions pass over old guard (SCMP)
2018-08-24
China's annual round of military promotions has skipped a generation to focus on the military's rising stars instead. In a break with tradition, no full generals were promoted this year on August 1, the anniversary of the founding of the People's Liberation Army, but in July some 15 officers were elevated to the rank of lieutenant general. The youngest of these was Chang Dingqiu, 51, who led the 2015 fighter jet flights over Tiananmen Square to mark the 70th anniversary of the end of the second world war. Last weekend, Chang was pictured on state television in his new lieutenant general's uniform attending a key military congress, which took place after the top Communist Party leaders' summer gathering at Beidaihe. At the military meeting, President Xi Jinping, in his capacity as chairman of the Central Military Commission (CMC), urged his senior generals to work to develop younger officers and give them tough, frontline assignments. He also talked of the pressing need to develop commanders who can conduct joint operations, adapt to new types of combat, develop advanced defence technologies and excel in strategic management. Xi also highlighted the need for loyalty to the party, moral integrity and a keen sense of responsibility, according to a report by the state news agency Xinhua. While Xi is seeking a new breed of generals to execute his vision of modernising the People's Liberation Army, his unprecedented corruption drive in the military has also provided extra room to promote young officers. The crackdown centred on two disgraced former vice-chairmen of the CMC, Guo Boxiong and Xu Caihou, who were accused of accepting bribes in return for promotions. Guo is now serving a life sentence for corruption and Xu died while under investigation. Since the campaign began when Xi came to power in 2012, some 200 senior generals have been put behind bars or taken early retirement. "In addition to uprooting those corrupt senior military officers who had close relations with either Guo or Xu, Xi can hardly trust the others promoted by the two disgraced former CMC vice-chairmen, even if they have proved to be honest and upright," said Anthony Wong Dong, a Macau-based military watcher. "I believe the newly promoted lieutenant generals are fully trusted by Xi, who approves the shortlist recommended by his allies in the PLA," said Wong, who predicted that these rising stars were likely to be placed in key positions within the next couple of years. Xi's overhaul also includes a shift away from the traditional dominance of land troops, and among the 15 lieutenant generals promoted so far this summer, four are from the air force, including Chang. "The air force has made huge progress in terms of its combat capability over the past few years," said Wong, who credited the anti-corruption campaign with the improvement. A retired PLA pilot has claimed that in the past, when corruption was rampant, it was not uncommon for pilots to forge their flying records. Chang was seen as one of the most outstanding air force pilots ahead of his elevation over the past few years. He is now a deputy chief of staff with the Joint Staff Department. Because of the Chinese Communist Party's tight grip on the PLA, Chang's party position – he is one of the 172 alternate members to the elite Central Committee – also helps his prospects for further elevation. He is seen as a strong contender to head either the Joint Staff Department or the air force in the run-up to the next five-yearly political reshuffle in 2022. Another rising military star, Li Huohui, director of the Training and Administration Department, was also made a lieutenant general late last month. Li, 54, is the youngest head of the 15 departments directly under the CMC and a full member of the party's Central Committee. He was the former commander of the PLA's 73rd Group Army, which was known as the 31st Group Army before the 2016 military reforms. The unit, which is based in the coastal city of Xiamen in Fujian province, is seen as the most trusted by Xi, who spent a total of 17 years based in Fujian. Most of Li's predecessors in the post have gone on to take on senior roles, including General Zhao Keshi, a former CMC member and head of the General Logistic Department; General Cai Yingting, the former commander of the Nanjing Military Command; and General Wang Ning, the serving commander of the People's Armed Police Force. Yu Guang, the deputy political commissar of the PLA's Rocket Force, and Shi Zhenglu, the deputy commander and chief of staff with the Northern Theatre Command, were also made lieutenant generals in the latest round of promotions. Both are incumbent alternate members of the party's Central Committee. Another prominent rising star is Lieutenant General Xu Zhongbo, originally the political commissar of the ground force with the Western Theatre Command, who was promoted last summer. Xu is expected to succeed Lieutenant General Zhang Shuguo as the next political commissar of the Logistic Support Department. He was seen last month on television in logistics department uniform. ^ top ^
Xi sends congratulatory letter to Smart China Expo (Xinhua)
2018-08-23
Chinese President Xi Jinping has sent a congratulatory letter to the first Smart China Expo that opened in Chongqing Municipality on Thursday. "We are currently in a period of gathering momentum for a new round of scientific and technological revolution and industrial transformation, with rapid changes in the new generation of information technology represented by the Internet, big data and artificial intelligence," Xi said. It is a common task of all countries to promote the integrated development of the digital economy and the real economy, step up the transition of driving forces of development, and create new industries and new business forms, Xi said. Xi emphasized that China attaches great importance to innovation-driven development and is firmly committed to its new vision for development by accelerating the industrialization of the digital economy and digitization of industries to promote high-quality development and pursue better lives for the people. China is willing to actively participate in international cooperation on the digital economy and advance its healthy development together with other countries to create new drivers and new room for the world's economic growth, Xi said. With "Smart Technology: Empowering Economy, Enriching Life" as its theme, the expo reflects the trend of global economic development and the people's expectation for better lives in different countries, Xi added. Xi hopes that representatives at the expo can enhance communication and cooperation, and learn from each other to jointly facilitate the development of the digital economy and contribute to building a community of shared future for mankind, according to the letter. ^ top ^
Li: Accelerate western development (China Daily)
2018-08-24
A number of major projects, including the Sichuan-Tibet and Chongqing-Yunnan railways, should be accelerated in the western regions of China to help prioritize economic structure and expand domestic consumption, Premier Li Keqiang said. These projects should focus on western China's shortcomings and also be in line with national planning, Li said when presiding over a meeting of the State Council leading group for promoting western development on Tuesday. The strategy for western development has aimed for balanced regional growth in China for about two decades. It benefits 12 provincial regions, including Chongqing, the provinces of Yunnan and Sichuan, and China's five autonomous regions, such as Tibet. The premier said western regions have made enormous achievements in their social and economic development in the past five years. But they still need to rely on reform and opening-up to increase development momentum and realize industrial upgrading and improvement of people's livelihoods. The central government will offer support, and western regions should actively encourage the participation of private capital in those major projects, Li said. Some key water diversion projects in the provinces of Yunnan, Qinghai and Gansu and the Guangxi Zhuang autonomous region should be promoted, he said. Li called for faster infrastructure construction to dispose of wastewater and trash under an innovative mechanism of investment and management to promote a new-type urbanization. Consumption potential should be tapped by encouraging emerging online shopping and consumption in cultural and healthcare sectors, he said. The western regions should reduce institutional costs and improve the competitiveness of their industries, targeting key issues that hamper the development of enterprises and the public welfare, Li said. In addition, Li urged winning the battle of poverty alleviation in the west and improving public services such as education, healthcare and employment by using new means such as the internet, especially for remote and poverty-stricken areas. The leading group was reshuffled last month, following the new lineup of the State Council, China's Cabinet, in March. The leading group has promoted the strategy of western development since 2000. Li became head of the leading group in 2013 after he assumed office. Western regions cover an area of more than 6.8 million square kilometers with nearly 30 percent of the country's population. Last year, they accounted for one-fifth of China's GDP. Over the past five years, economic growth of these western regions went up by 8.8 percent annually, according to the National Development and Reform Commission. The increase was 7.4 percent in the first half of this year. Fixed-asset investment rose by 13 percent per year. More than 35 million people were lifted out of poverty during those five years. ^ top ^
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| Xinjiang |
BBC views China's Xinjiang governance via bizarre lens (Global Times)
2018-08-23
An article run by the Chinese edition of the BBC claims that the ban on face-coverings in a certain number of countries across Europe serves as an excuse for the Chinese government to justify its "repressive" policies on the Xinjiang Uyghur Autonomous Region. The article went further by listing the European countries that have banned some extreme religious veils and robes. Although extreme conservative costume does not directly lead to extremism, the spread of extremism is undeniably associated with the trend that some religious costumes are turning extreme conservative. This is exactly where the worries of mainstream European society stem from. While the article should have been about finding a solution to the spread of extremism on European soil, it took a U-turn by pointing its finger at China. This BBC article is the epitome of the Western mind-set toward China. Now the West seems to be indulged in a vicious circle: It deems whatever China says or does as wrong and denounces China in every possible way. While the Western media hails freedom of speech, it also leaves ample room for biased reporting. When analyzing Chinese policies, Western media do not look at the background and try to understand the logic behind Chinese governance. Rather, they let partiality and an outdated mentality dominate their reporting. In terms of China's Xinjiang policies, social stability and cohesion of the region are the top priorities of the central government. The peace and stability that Xinjiang and its people are now enjoying should be attributed to regulations of high intensity, and this is a phase that this northwestern region has to go through before normal governance can be enacted. As for Europe which is grappling with terrorism and extremism resulting from an influx of immigrants, the Western media should help find a way to stem the spread of extreme religious ideas instead of bothering about whether it can serve as China's "excuse" for its own policies. The China-through-a-Western-lens is an incomplete, one-sided and defective approach. Western media see a quite different China from the real China. Such an image of China may exist in the Western media sphere for a long time, as the West needs it to cling to its sense of superiority. Sadly, such unwarranted pride will prevent the West from understanding the real China. ^ top ^
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| Hongkong |
How to teach Hong Kong history – a modest proposal for open-mindedness and critical thinking (SCMP)
2018-08-24
Much has been written of late on reforms to the history curriculum in Hong Kong. More ink, still, has been spilled, and more spleen vented, to fuel the interminable history of wars between Japan, China and the Koreas. Against a backdrop of pseudo-historical assertions aimed at buttressing geopolitical claims, Beijing and other regional powers have sought to entrench both at home and abroad their historical narratives, which are presented as indisputable truth. In Hong Kong, our constitutionally guaranteed rights to freedom of conscience and expression vest us with a unique responsibility to provide a platform within China for a more balanced approach, which treats history as a serious academic discipline and not as nationalist mythology. That means teaching history not only to instil a given set of facts, but to provide students with the critical tools to evaluate claims. Because history informs a society's understanding of the past, and so shapes the future, it is crucial to distinguish true history from propaganda. Consider, for instance, the oft-repeated claim that Hong Kong is an inalienable part of China. Hong Kong was, in fact, alienated to Great Britain in 1842 by the Qing Dynasty under a treaty valid in customary international law, as it applied at that time. If China were so minded, Hong Kong, or any other part of the territory of the People's Republic, could likewise be legally alienated to any other state. National borders are not, and have never been, fixed. To those who would cry "colonialism" when the Opium Wars are mentioned, I would reply that the conflicts between the Qing – "China" then was a geographic expression and the imperial rulers referred to themselves by their dynastic name – and the British was in reality a conflict between empires. Contemporary China is the product of successive waves of military expansion, colonisation and settlement. Most dynasties were imperialist and expansionist. The Qing, who roughly established the frontiers of the current People's Republic, vastly enlarged the domain of the Ming through military conquest. Like the British empire, it was an institution run by and for the benefit of a tiny elite. To understand that essential fact is to cast doubt on the prevailing official narrative of Hong Kong having been seized as a "victim" of Western colonialism. It is thus curious that some pro-establishment legislators would seek to "decolonise" the place names of Hong Kong, because there was no single process of "colonisation". If current and future generations of students in Hong Kong are to comprehend their relationship with the British colonial past, Hong Kong's place in China's history and China's place in global history, they must do so from a position of openness. History should be a method of inquiry, where different perspectives are examined and understood in their context. To propagate mythology instead of history is to imbue citizens with a sense of grievance and entitlement and so sow the seeds of conflict. There are controversies on which reasonable people can disagree, and that diversity in opinion is a necessary precondition to a healthy historical debate. We should certainly aim to prevent a polarisation of historical positions across political lines. While few in Hong Kong support independence, when Andy Chan Ho-Tin spoke at the Foreign Correspondents' Club of Britain's enduring legacy in Hong Kong, and his resentment of the tone-deafness of the central government on local issues, he expressed views that are held by some in the city, but increasingly marginalised in the "official" narrative of Hong Kong history. At a time when Hong Kong faces an uncertain future, and the "handover generation" struggles to find its place, a modest proposal would be to promote at all levels of education a mature understanding of our past, with all its difficulties and contradictions. ^ top ^
China may upgrade Hongkongers' travel permits into identity cards, top delegate says (HKFP)
2018-08-23
A local delegate to the National People's Congress has said that mainland authorities could upgrade home return permits used by Hong Kong residents in order to make them into identity cards. Ip Kwok-him, also a member of the Hong Kong government's Executive Council, told an RTHK radio programme that this would provide easier access to public services. Ip said he did not know when the changes will take place but he believed that – if the mainland is willing to study the matter – it is "very likely" that the upgrade will take place. The current home return permit cannot be used to buy train tickets, open bank accounts, or access concessions at travel attractions, Ip said. He added that he has been urging the National People's Congress to look into upgrading the card over the past two years. Ip said it was his understanding that, if the upgrade rolls out, it will be up to the public whether to get the new card: "It will be within your right not to take it." An upgrade would enhance identity recognition for Hong Kong people, he said, since many public services in the mainland rely on electronic platforms: "Such a type of integration is part of the trend." According to Ip, mainland authorities are also studying a plan whereby Hong Kong-registered vehicles – without mainland licence plates – can apply for a permit online so they can cross the border at a designated time and border control point. Asked if the measures were intended to target the pro-independence movement in Hong Kong, Ip said that he believed they were not related. He said the potential measures were to help Hong Kong people understand the country fully through closer contact. Last week, the State Council announced a new kind of Chinese residence permit for Hong Kong people living on the mainland. Ip also said that Beijing was becoming more and more concerned about when the Hong Kong government will enact the national security law under Article 23 of the Basic Law. He said the current Hong Kong government must achieve something to create the right conditions for passing the legislation. ^ top ^
Express Rail to link Hong Kong to 44 mainland destinations, as MTR promises project will turn a profit (HKFP)
2018-08-23
The MTR Corporation has been awarded a ten-year operation agreement for the high-speed rail link which will start operating on Sunday, September 23. The HK$84.4 billion Guangzhou-Shenzhen-Hong Kong Express Rail Link, built by the MTRC, will have services to six short-haul destinations and 38 long-haul destinations, including newly announced locations such as Shantou and Shaoguan. The details were unveiled on Thursday following four months of trial runs. Short-haul trains to the six short-haul destinations will range in cost from HK$78, for journeys to Futian – to HK$247, for journeys to Guangzhou South. For long-haul destinations, it will cost HK$216 to travel to Shantou, HK$1,159 to Shanghai and HK$1,239 to Beijing. The MTRC will pay HK$2.7 billion to the Kowloon–Canton Railway Corporation – which holds the rail system's assets – as a fee to operate the rail link. However, CEO Lincoln Leong said he expected the project to make a profit within the starting period of operation. Deputy Secretary for Transport and Housing (Transport) Kevin Choi said the latest estimated number of passengers will be 72,500 per weekday; 78,100 on Fridays, Saturdays and Sundays; and 90,100 during peak periods. Asked by reporters as to why the number was lower than previous government estimates, Choi said it was "more responsible" to consider a more conservative figure. Transport chief Frank Chan said the government was confident that the service will not incur losses. "From the very conservative projection, we are taking 80,000-plus passengers a day for the year 2018. Given such a low patronage, we are still making a reasonable return," Chan said. And therefore, if we are expecting more patronage in the future, then the probability of incurring a loss would be rather minimal, I would say." The MTRC has reached an agreement with China Railway whereby it will receive a different ratio of the revenue depending on the distance. For instance, the Hong Kong side will receive HK$74 from the HK$78 fares for trains to Futian, and it will receive HK$112 from the HK$247 fares for Guangzhou South trains. Infrequent direct trains Between Monday and Thursday, there will be 70 pairs of short-haul trains. There will be 82 pairs between Friday and Sunday. During the peak period, there will be 114 pairs. Trains to Futian and Shenzhen North will depart every ten to 20 minutes; those to Guangzhou South will depart every 15 to 30 minutes. For long-haul trains, there will be only one north-bound train per day for most destinations. Trains to Shanghai will take eight hours and 17 minutes; trains to Beijing will take eight hours and 56 minutes. There will be three pairs of direct trains to Guangzhou South per day, which will take 47 minutes. Other trains to the station – which will stop at intermediate stations – will take between 50 and 71 minutes. Choi said there were only three pairs directly to Guangzhou South since the mainland train schedule was very busy: "It was lucky for us to get three." It will take 46 minutes on a metro train from Guangzhou South to reach Guangzhou East, the city's business centre. The existing train to Guangzhou East takes around two hours and cost HK$210. Choi said the Express Rail Link will be "competitive" when compared to the existing train service. Plagued by delays and cost overruns, a public "free ticket" day will be held on Sunday, September 2. ^ top ^
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| Taiwan |
US accuses China of 'destabilising' cross-Strait ties after El Salvador severs ties with Taiwan (HKFP)
2018-08-24
The United States on Thursday accused China of destabilizing cross-Strait relations following the announcement this week that El Salvador would end diplomatic ties with Taipei in favour of Beijing. "The United States will continue to oppose China's destabilization of the cross-Strait relationship and political interference in the Western Hemisphere," the White House said in a statement. "This is a decision that affects not just El Salvador, but also the economic health and security of the entire Americas region," it also said of Tuesday's announcement, reiterating that the US would reevaluate its ties with the Central American country as a result. Taiwan and China have been engaged for years in a diplomatic tug-of-war in developing countries, with economic support and other aid often used as bargaining chips for diplomatic recognition. Beijing sees self-ruling, democratic Taiwan as part of its territory to be brought back into the fold and has not ruled out using force to do so. Relations between Taipei and Beijing have worsened since Tsai Ing-wen came to power in 2016 as her government refuses to acknowledge that Taiwan is part of "one China". As a result, China has stepped up its poaching of Taiwan's dwindling official allies. Taiwan President Tsai Ing-wen. Photo: Taiwan Presidential Office. El Salvador became the fifth diplomatic loss under Tsai's presidency and the third this year. But while most countries have established formal relations with Beijing rather than rival Taipei in recent decades, Taiwan still has unofficial relationships with powerful countries. Its most important unofficial ally is the US, which remains Taiwan's leading arms supplier, despite switching diplomatic recognition to Beijing in 1979. Ties have warmed between the US and Taiwan in recent months, incensing Beijing. Some analysts saw the poaching of El Salvador as an indirect slap in the face to the Trump administration and a warning against further friendly overtures. ^ top ^
'We will not forget the spirit of solidarity': Taiwan marks 60 years since China attack as tensions rise (HKFP)
2018-08-24
Taiwan's President Tsai Ing-wen called for unity and vowed not to bow to pressure from Beijing on Thursday as the island marked the 60th anniversary of a deadly Chinese artillery attack. The anniversary of the assault on tiny Kinmen island, known as the "823 bombardment", comes as China steps up pressure on self-ruling Taiwan, which it sees as part of its territory to be reunified. China's People's Liberation Army fired 470,000 shells at Kinmen and nearby islets in 1958, killing 618 servicemen and civilians in an attack that lasted 44 days. Kinmen is part of Taiwan, but lies less than two miles off mainland China, at the narrowest part of the Taiwan Strait. "When we remember the '823 bombardment' 60 years later, we will not forget the spirit of solidarity," Tsai said on her Facebook page. "When we face diplomatic suppression we will not forget how strong our country can be when we are united," she added, saying that while Taiwanese people cherished peace they would not take national security for granted. Tensions with Beijing have worsened under Tsai because she refuses to acknowledge that Taiwan is part of "one China". In response, China has ramped up military drills and poached Taiwan's official diplomatic allies — El Salvador became the third this year to switch ties from Taipei to Beijing on Tuesday. At an anniversary ceremony held in a former army bunker and combat centre in Kinmen, Taiwan's Defence Minister Yen De-fa said today's troops in Taiwan must again make "combat preparations" in the face of what he described as a growing military threat from China. Hundreds of soldiers, relatives and veterans, some in their 80s and 90s, gathered at a Kinmen cemetery where victims of the 1958 bombardment were buried. Lai Jen-hsien, 83, remembered the attack. "We were joking it was firecrackers, but then all of a sudden it was a rain of them (artillery)," said Lai, who was in the combat engineer battalion in Kinmen at the time. He told AFP he did not think history would repeat itself on Kinmen. "Peace is priceless. War is ruthless. We should try our best to peacefully handle the fate of people from both sides of the (Taiwan) Strait," Lai said. China has sought to bring Taiwan back into the fold since nationalist troops fled to the island after their defeat by communist forces on the mainland in 1949. Kinmen historically often found itself on the frontline, although now the island is a popular tourist attraction for both mainland Chinese and Taiwanese visitors. Its most famous souvenirs are kitchen knives made from the remnants of artillery shells. ^ top ^
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| Economy |
China must overcome the fear of yuan depreciation (Global Times)
2018-08-23
At a seminar at Fudan University in Shanghai in December 2016, I argued that it doesn't matter whether or when the yuan would weaken beyond 7.0 to the US dollar, but it would matter if the nation massively depletes its foreign exchange reserves without justified causes. In international economics there is the famous concept of an impossible trinity, which states that a country cannot have an independent monetary policy, an open capital account and a fixed exchange rate at the same time, and it can only have two of the three. In comparison, at the moment, China is facing an impossible quaternity: Among exchange rate stability, preserving foreign exchange reserves, monetary policy independence and national creditworthiness, China can only have three of the four. In my view, the best choice is to give up exchange rate stability and have the remaining three. China started to speed up the liberalization of the capital account in 2012. It was argued at the time that China was having a strategic period of opportunity for the liberalizing capital account. However, since the second half of 2015, confronted with the surge of capital outflows, sentiment changed abruptly and the view that China should tighten capital controls gained the upper hand. To tighten capital controls was absolutely necessary. Nevertheless, if China sticks to an inflexible exchange rate, the burden of the containment of capital outflows would fall entirely on capital controls, which would force the monetary authority to tighten capital controls to such an extent that it has to go back on many promises it had made on freer movement of cross-border capital flows. If this happens, China's international credit would be damaged badly. Instead, if China had a flexible exchange rate, as an automatic stabilizer, the fall in the yuan would reduce capital outflows, due to the rise in the domestic prices of foreign currencies. In other words, a flexible exchange rate would reduce the necessity for the further tightening of capital controls, and make China's international credit less likely to be compromised. Then there is the question of the choice between defending exchange rates and preserving foreign exchange reserves. In 2015 and 2016, to stabilize the yuan, the central bank intervened in the foreign exchange market constantly. In a period of less than two years, China spent some $1 trillion. Some argued that without the intervention, the yuan would have a precipitate fall and hence it was money well spent. The argument is wrong on three accounts. First, the costs for the maintenance of exchange rate stability were too high. During the Asian financial crisis in the late 1990s, the total amount of resources that the IMF and other institutions pledged to provide to Thailand, South Korea and Indonesia was just $120 billion. In fact, after the doubling in 2016, the total resources commanded by the IMF stood at $1.363 trillion. Second, the foreign exchange reserves spent failed to translate to an equal amount of private foreign assets held by Chinese citizens. The money just went missing from China's international balance of payments table and international investment position table. Third, there was no evidence whatsoever that the yuan would have collapsed, if the government had not intervened. This view overestimates the impact of depreciation expectations, while underestimating the self-stabilizing effect of a flexible foreign exchange rate as well as the role of economic fundamentals. Although depreciation expectations strengthened by actual depreciation may cause overshooting, with China's strong economic fundamentals it is difficult to imagine how the yuan would collapse. Even if the yuan devalued very deeply, would a financial crisis follow? A financial crisis led by currency depreciation is related to four problems of an economy. The first is a currency mismatch between domestic and foreign currencies in the banking sector; depreciation will worsen banks' balance sheets and lead to a banking crisis. But in China, foreign currencies only account for a very small fraction of China's bank funds, rendering the concern unnecessary. Second, if a company has a massive amount of foreign debt, the cost of debt in domestic currency terms may shoot up as a result of devaluation, which in turn would plunge the company into a debt crisis. China's corporate debt as a percentage of GDP is more than 150 percent, but Chinese companies' foreign debt as a portion of total corporate debt remains quite low. Third, if a country has large sovereign debt, devaluation may lead to a sovereign debt crisis. But China's sovereign debt is very small. Fourth, devaluation will worsen a country's inflation. China's inflation in 2016 was hardly a serious concern; instead the nation was facing producer price deflation at the time. The yuan exchange rate stabilized in early 2017 and started to appreciate. Was it a result of the policy aimed at stabilizing the yuan exchange rate implemented in 2016? My view is that with or without the intervention in 2016, the yuan exchange rate would have stabilized anyway, because of the fall in the US Dollar Index and the improvement of China's economic performance. With the benefit of hindsight, the loss of $1 trillion from 2015 to 2016 was not only unwarranted but also unnecessary. If there had been no intervention in the foreign exchange market, the yuan would have depreciated but a substantial fall was highly unlikely. Although abandoning intervention would lead to some instability in the exchange rate, economics still tells us that we can only opt for the least-worst choice among all possibilities and it's unlikely that we can pick an absolutely safe bet. Now the yuan depreciation pressure is rising and the exchange rate is approaching 7 per US dollar again. After having learned a costly lesson in the previous round of depreciation, hopefully the decision-makers as well as the market participants will treat the current round of rising depreciation pressure in a much calmer way. ^ top ^
China responds in kind to new levies (China Daily)
2018-08-24
China imposed a 25 percent tariff on an additional $16 billion of imports from the United States in response to the latest US duties, leading to a total of $50 billion worth of goods subject to tariffs from each side since early July as US President Donald Trump's administration continues to adopt unilateral trade policies. China's latest tariff was imposed on Thursday on 333 categories of US products, including coal, bicycles, trucks, engines and chemicals, according to the Customs Tariff Commission of the State Council. The move comes after Washington levied a 25 percent tariff on $16 billion worth of Chinese products such as semiconductors on Thursday, after first imposing tariffs on $34 billion of Chinese imports including electrical and medical equipment in July. Calling the US move "arbitrary", the Ministry of Commerce said China will have to take countermeasures to hit back. Late on Thursday, the ministry announced that China filed a complaint against the latest US tariffs at the World Trade Organization. China resolutely opposes the latest US tariff move under Section 301 of the US Trade Act of 1974, the ministry said in a statement. Vice-Minister of Commerce and Deputy China International Trade Representative Wang Shouwen led a delegation to Washington for two days of talks beginning on Wednesday. Also on Thursday, Foreign Ministry spokesman Lu Kang said China hopes the two sides will meet each other halfway and achieve good results in a rational and pragmatic manner. Business executives warned that the escalating Sino-US trade tensions will financially burden manufacturers, farmers and service sector firms in both countries, and create uncertainties for global economic growth. Denmark's Maersk Line, the world's largest container shipping operator by fleet size, told China Daily that global trade could be reduced from 0.1 percent to 0.3 percent as a result of the US-initiated trade tensions, based on its latest external analysis. Wu Dongxu, general manager of the Foreign Investment Department at Beijing-based Transcontinental Management Consultancy, warned that negotiations between the two countries will be long and bumpy. "If China maintains healthy growth, it would help to promote the global economy," said Gao Yan, chief executive officer of the China unit of German industrial giant ThyssenKrupp AG. "On the other hand, if China suffers economic challenges, then it will become a global challenge." ^ top ^
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| DPRK |
U.S. appoints new special envoy for DPRK to lead negotiations ahead (Xinhua)
2018-08-24
U.S. State Secretary Mike Pompeo on Thursday named Stephen Biegun to be the new special envoy for the Democratic People's Republic of Korea (DPRK). The appointment aims to fill key posts regarding the Korean Peninsula so as to facilitate issues like bilateral negotiations over denuclearization, peace regime and economic sanctions, among others. In a speech to the media at a press conference, Pompeo said Biegun's joining is "timely" as the two of them will travel to the DPRK next week "to make further diplomatic progress towards our objective." "As the special representative, Steve will lead negotiations and spearhead diplomatic efforts with our allies and partners," Pompeo said, noting that "using diplomacy to resolve the North Korean security threat once and for all remains one of President Trump's greatest priorities, and Steve is eminently qualified for the task and clear-eyed in the challenge before us." For his part, Biegun said he fully understands the importance of this job. "The issues are tough, and they will be tough to resolve," he said. "But the President has created an opening, and it's one that we must take by seizing every possible opportunity to realize the vision for a peaceful future for the people of North Korea." "This begins with the final, fully verified denuclearization of North Korea as agreed by Chairman Kim Jong Un at the summit with President Trump in Singapore," he added. Biegun is to continue the mission of Joseph Yun, who resigned from his post earlier this year for personal reasons. U.S. media outlets reported that the departure of Yun, who has been supportive of solving the Korean Peninsula issues through dialogue, was due to his long disappointment over the Trump administration's provocations against the DPRK, and diplomats' lacking of speaking in the government's decision-making process. Earlier this year, the Trump administration also appointed Harry Harris, former commander of U.S. Pacific Command, to become U.S. ambassador to South Korea. U.S. National Security Advisor John Bolton said earlier on Aug. 19 that Pompeo would leave for a trip to the DPRK for the fourth visit since he assumed the current office, adding that Washington expects Pompeo to meet with the DPRK's top leader Kim Jong Un. "To move on with the process of denuclearization remains our highest priority," said Bolton, adding that "it's important that they (the DPRK) demonstrate seriousness" in this regard. Bolton said earlier last month that Washington has had a plan to dismantle the majority of the DPRK's nuke and ballistic missile programs, and Secretary of State Mike Pompeo will be discussing it with Pyongyang while visiting the country. However, State Department spokesperson Heather Nauert said the State Department will not provide a timeline for Pyongyang's abandonment of nuclear and missile program. Pompeo has visited the DPRK for three times, respectively in April, May and July. President Donald Trump on Aug. 20 said he would "most likely" meet with Kim for a second time. He also said that he believed Pyongyang had taken specific steps toward denuclearization, and that he has "great chemistry" with Kim. In the joint statement after the June 12 Trump-Kim meeting in Singapore, Trump committed to provide security guarantees to the DPRK, while Kim reaffirmed his firm and unwavering commitment to a complete denuclearization of the Korean Peninsula. The two leaders also agreed to commit to establish new U.S.-DPRK relations, and to build a lasting and stable peace regime on the peninsula. According to the website of Ford Motor Company, Biegun has been its vice president of International Governmental Affairs, overseeing "all aspects of Ford's international governmental relations, including trade strategy and political risk assessment." Before joining Ford, Biegun worked in the White House from 2001 to 2003 as executive secretary of the National Security Council. He served as a senior staff member to former National Security Advisor Condoleezza Rice. He also served for 14 years as a foreign policy advisor to members of both the House of Representatives and the U.S. Senate. Born in 1963, Biegun graduated from the University of Michigan where he studied Political Science and Russian Language. He is a member of the Council on Foreign Relations and the Aspen Strategy Group. Biegun's appointment was the latest in Pompeo's efforts to fill special envoy posts. Last week, he appointed Brian Hook, head of the State Department's policy planning, to lead the newly established the Iran Action Group. He also named Jim Jeffrey, U.S. former ambassador to Iraq, to be the Secretary's Representative for Syria Engagement, a new position Pompeo created to work on the Geneva Process. Pompeo is expected soon to appoint another former ambassador, Zalmay Khalilzad, to handle issues related to Afghanistan, U.S. media reported. ^ top ^
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| Mongolia |
China, Mongolia to launch FTA feasibility study (Xinhua)
2018-08-24
Chinese and Mongolian officials announced here Thursday that the two countries have agreed to officially launch a joint feasibility study on a free trade area (FTA) next month. When making the announcement at a joint press session with Mongolian Foreign Minister Damdin Tsogtbaatar, visiting Chinese Foreign Minister Wang Yi said that the two sides will jointly promote free trade and resist protectionism in order to preserve global multilateral trade, which is at the core of the World Trade Organization. ^ top ^
Mongolian president meets Chinese foreign minister (Xinhua)
2018-08-24
Mongolian President Khaltmaa Battulga met visiting Chinese State Councilor and Foreign Minister Wang Yi at the State House in Ulan Bator on Thursday. Battulga asked Wang to convey his cordial greetings and best wishes to Chinese President Xi Jinping. He said that Mongolia admires China's development achievements, attaches great importance to China's status in the world, and always regards relations with China as a diplomatic priority. In 2019, Mongolia and China are set to celebrate the 70th anniversary of the establishment of diplomatic relations. In order to take the opportunity to deepen the friendship between the two countries and push the comprehensive strategic partnership to a new level, Mongolia is willing to closely work with China to arrange commemorative activities, the Mongolian president noted. With vast territory and abundant resources, Mongolia is at a critical stage of national development and construction. The country is willing to strengthen cooperation with China in the fields of agriculture, animal husbandry, economy and trade, tourism, and infrastructure construction to help its own development and benefit the two peoples, Battulga said. Wang conveyed President Xi's best regards to Battulga, noting that China and Mongolia are close neighbors linked by mountains and rivers. He said China always respects Mongolia's independence, sovereignty and territorial integrity, and believes that Mongolia will also support China's efforts to safeguard its core interests. China is willing to take the opportunity of marking the 70th anniversary of the establishment of diplomatic relations next year to cooperate with Mongolia to lay out a new blueprint for the future development of bilateral ties, Wang said. Mongolia is one of the first countries to support the Belt and Road Initiative, Wang said, adding the initiative has shown broad prospects for deepening bilateral cooperation. China is ready to strengthen interconnection and mutual trust with Mongolia within the framework of the Belt and Road Initiative, improve both peoples' livelihood, boost people-to-people exchanges, and continuously promote the cooperation between China, Mongolia and Russia, the foreign minister said. He added that China supports Mongolia in consistently upgrading its level of cooperation with the Shanghai Cooperation Organization. He also expressed the hope that the two countries will expedite the talks on the signing of a free trade agreement, so as to bring substantial benefits to both peoples. On the same day, Wang also met with Mongolia's Parliament Speaker Miyegombo Enkhbold, and held talks with his Mongolian counterpart Damdin Tsogtbaatar. ^ top ^
Mongolia's support expressed for Belt and Road Initiative (Montsame)
2018-08-24
On August 23, Speaker of the Parliament M.Enkhbold received Wang Yi, State Councilor and Foreign Minister of the People's Republic of China. The latter is paying an official visit to Mongolia at the invitation of Minister of Foreign Affairs D. Tsogtbaatar. At the beginning of the meeting, Speaker M.Enkhbold emphasized that understanding and respecting mutual interests of the two countries and resolving pressing issues in a way of talks are the foundation of fruitful cooperation. Mr. Wang Yi said, "The People's Republic of China adheres to a principle to treat countries equally. During the meeting with Mongolia's Foreign Minister, we talked over emphatically that China respects independence and sovereignty of Mongolia as its neighbor. It is crucial that the countries have to cooperate with mutual understanding in all levels. I am confident that You, Speaker of the Parliament, would pay attention on it". During the meeting, the sides discussed about efficiency of the Belt and Road Initiative and multilateral achievements expected to be come in the social and economic relations, if Mongolia backs and take part in the initiative. In particular, as infrastructure constructions are conducted within the initiative, it will be significant to augment trade turnover of the country, broaden business cooperation and people-to-people ties and make valuable contribution to the development of the country. China will consider with respect Mongolia's initiative and aspiration of the people. Moreover, Mongolia's involvement in the initiative will create a great opportunity to increase its export, to produce value added products and to develop all types of production, added Mr. Wang Yi. In turn, Speaker M.Enkhbold said, "Mongolia is interested in supporting and being a part of the Belt and Road Initiative. In this frame, the sides are discussing about establishing Mongolia-China-Russia economic corridor, which brought an attracting subject about infrastructure construction. I hope that You, Mr. Wang Yi, would make effort on putting the issues discussed between our two countries into real action". In addtion, China is expected to ratify an Intergovernmental Agreement on Railroad Cooperation between Mongolia and the Republic of China, adopted in 2014. In this regard, the Speaker said he hopes that Mr. Wang Yi will render support on this matter. Concluding the meeting, the parties pointed out that they should make effort on expanding and enriching bilateral ties and cooperation for opening a new chapter in the future, within the framework of the 70th anniversary of establishment of diplomatic relations of the two countries, which will be marked next year. ^ top ^
MPs attending meeting of the Asia-Pacific Parliamentarian Forum on Global Health (Montsame)
2018-08-24
The fourth 'Meeting of the Asia-Pacific Parliamentarian Forum on Global Health' commenced on August 23 in Manila, Philippines. The World Health Organization and the Congress of the Philippines are jointly organizing the meeting under a theme 'The Role of Parliamentarians in Strengthening Financing and Regulation for Universal Health Coverage'. Over 50 parliamentarians from 21 Asia-Pacific countries are attending the meeting. Mongolia is represented by MP and a member of the Bureau of the Standing Committee on Democracy and Human Rights of the Inter-Parliamentary Union B.Saranchimeg and MP B.Undarmaa. At the meeting, MP B.Saranchimeg delivered a speech themed 'Achieving the health objectives for sustainable development through public health insurance' and shared information on the initiatives, outcomes and progress made by Mongolia in this regard. The forum gives the parliamentarians opportunities to exchange views, provide political assistance, enhance their capacity and develop collaboration with the aim of ensuring sustainable activity of the health sector. ^ top ^
Deputy PM U.Enkhtuvshin meets Vice-Premier of the State Council of China (Montsame)
2018-08-24
Deputy Prime Minister U.Enkhtuvshin is working in the Republic of China these days. Following his attendance in the First Smart China Expo, Mr. Enkhtuvshin met with Vice-Premier of the State Council Han Zheng and exchanged views on bilateral relations and cooperation in fields of politics, economy, science and technology. During the meeting, the sides emphasized that the bilateral comprehensive strategic partnership relations and cooperation are forwarding in many sectors, with successful implementations of important projects and activities agreed during bilateral reciprocal high level meetings. They agreed to pay reciprocal high-level visits and to organize joint activities dedicated to the 70th anniversary of establishment of diplomatic relations, which will fall in 2019. The Deputy PM expressed country's willingness to actively participate in projects to be implemented within the Belt and Road Initiatives and to establish joint IT park as well as cooperate in software field. Furthermore, he emphasized Mongolia's aspiration to ratify an intergovernmental agreement on Cooperation for Railway Transit Transportation, as it plans to open its Trade Representative Office in Beijing and Tianjin cities in scope of trade and economic cooperation. At the end of the meeting, Deputy PM U.Enkhtuvshin put forward a proposal to agree on the state railway border-crossing point in Gashuunsukhait-Gants Mod border checkpoints and to establish a new railway crossing through Khangi-Mandal border checkpoints in connection with expanding cooperation. He asked to discuss about crossing point in the near future. ^ top ^
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Yang Xinhui
Embassy of Switzerland
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