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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 de Chine
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  29.10-2.11.2018, No. 740  
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Foreign Policy

Imran Khan's China play threatens Middle East headache for Beijing (SCMP)
2018-11-02
Pakistani Prime Minister Imran Khan has arrived in China for talks with his "iron brothers" that are likely to shape both his country's financial stability and its involvement in Beijing's Belt and Road Initiative. The discussions will also help to shape a partnership of sorts between China and Saudi Arabia in the economic development of Pakistan. Beijing stands to benefit from an extension of its overland belt and road route from Xinjiang to the Pakistani port of Gwadar, but runs the risk of being dragged into the intense rivalry between Saudi Arabia and Iran. Khan hopes China will join Saudi Arabia, an equally close ally, and the International Monetary Fund (IMF) in pumping billions of dollars of emergency financial assistance into Pakistan's threadbare coffers, to avert a balance of payments crisis caused by the profligate policies of his predecessor, Nawaz Sharif. But the grandeur and warmth of China's welcome is matched by its concerns about the Khan administration's rebalancing of Pakistan's foreign policy towards the West and Middle East. Its obsession with finding proof of corruption by Sharif in projects linked to the China Pakistan Economic Corridor (CPEC), the estimated US$50 billion showcase of the belt and road, has also created concerns in Beijing. The CPEC is a 15-year programme to connect China's economy overland with the oil-rich Persian Gulf via restive Xinjiang and Gwadar on the Arabian Sea. Since the launch of the CPEC in 2015, power generation and infrastructure projects in Pakistan worth US$28 billion have either been completed or proceeded to advanced stages of construction. "I think [the Chinese] are putting on a good front of being accommodating, and they will do their best to maintain a positive public narrative, but they had questions about [Khan's] government before it took office, and the handling of CPEC and the China relationship writ large has given further cause for concern," said Andrew Small, author of The China-Pakistan Axis. Since assuming power after a July general election marred by allegations of favouritism by the powerful military and activist judiciary, the Khan administration has slashed development expenditure as part of an austerity drive to control Pakistan's runaway fiscal deficits. It has also cut the envisioned value of CPEC to US$50 billion from US$62 billion, and ordered an audit of projects agreed by Sharif's government. While Khan is bound to receive a polite, attentive hearing from his Chinese partners, they are likely to have pressing questions and will want reassurances. "I think they are still waiting for the dust to settle, which may not happen until after the Imran Khan visit. They are willing to give the new government more time to find its feet but there have been a lot of raised eyebrows in the last couple of months," Small said. Khan's immediate priority is to secure China's participation in a convoluted bailout for the Pakistani economy. He will arrive in Beijing days after securing a three-year US$6 billion financial assistance package from Saudi Arabia. Two days after the conclusion of his visit on November 5, Pakistani finance minister Asad Umar is expected to begin negotiations with the IMF for a medium-term programme. As well as CPEC borrowings, China has loaned Pakistan US$6 billion since last year to increase its dwindling foreign exchange reserves. It is likely to acquiesce to Khan's request for further financial support but only if Pakistan commits to the structural economic reforms required by the IMF. Khan's government has slashed subsidies for utility bills, an unpopular inflationary measure, but it has no plans to reduce the size of Pakistan's civil service or cut spending on defence. "China may be willing to provide more assistance in conjunction with an IMF programme, just not as an alternative to one. "China has already been providing financing but was quite clear that it wanted the new government to go to the IMF," Small said. Khan has posited that Chinese and Saudi financial assistance will reduce the amount Pakistan needs to borrow from the IMF, mitigating Pakistan's susceptibility to US demands its CPEC debt be transparent. China wants to avoid such transparency because exposing the terms of CPEC project agreements could validate US criticism of the belt and road as a debt trap for emerging economies. The US and its allies, particularly India – Pakistan's neighbour and arch-rival – were alarmed when Sri Lanka handed over control of Hambantota port to a Chinese state operator in June, settling a US$1 billion loan from Beijing in 2013 to develop the white elephant project. The deal provided China with control of a third maritime facility in the western Indian Ocean, after Gwadar in Pakistan and Djibouti, across the Red Sea from Yemen where a Saudi-led Arab coalition has been fighting Iran-backed Houthi rebels since 2015. China has steered clear of Middle Eastern rivalries but the undisclosed terms of Pakistan's deal with Saudi Arabia for US$6 billion in financial assistance brings complications for both the Khan administration and Beijing. The deal was struck on the sidelines of the "Davos in the desert" investment conference hosted last weekend by Crown Prince Mohammed bin Salman, the focus of international outrage following the brutal murder of Jamal Khashoggi, a columnist for The Washington Post, at the Saudi consulate in Istanbul. The Khan administration claims Riyadh's aid came with no political strings attached but Saudi Arabia has long chafed at Pakistan's neutrality in its regional rivalry with neighbouring Iran, particularly since it refused to join the Arab military coalition in Yemen three years ago. "Saudi moves and investment in Pakistan are a set and established policy that seeks to better integrate Islamabad into Riyadh's camp," said Theodore Karasik, senior adviser at Gulf State Analytics, a geostrategic consultancy in Washington. He said the US$6 billion aid package also sets out to "align US and Saudi policy with Pakistan as part of the larger picture of the Islamic Military Counter Terrorism Coalition". Led by former Pakistani army chief of staff Raheel Sharif, the coalition was ostensibly established by Riyadh in December 2015 to fight Islamic State and other terrorist groups, but it is widely viewed as an attempt to build an alliance of Sunni-majority Muslim states against Shia-majority Iran. As part of the bailout, Khan has invited the Saudis to invest in energy and mineral projects near Pakistan's border with Iran. They include a multibillion-dollar oil refinery and strategic storage complex to be located at the Chinese-managed port of Gwadar, the centrepiece of CPEC. But the prospective Saudi presence near Iran's eastern border threatens to bring their proxy wars in the Middle East into the Gwadar area. The potential complications for Pakistan and China were made apparent on October 16, when 14 Iranian guards stationed near the border with Pakistan were kidnapped by militants of the Jaish al-Adl, an extremist Sunni faction active in the area. Pakistani security forces have been unable to locate the abductees, increasing the threat of Iranian reprisals. "The issue of the amount of sway the Gulf Arabs have over Pakistan is growing because of Khan and his own vision," Karasik said. "These Arab states are looking to China to cooperate in Pakistan on a number of issues obviously related to CPEC but also investment in ports. Thus Pakistan finds itself at the nexus of an Arab pull but also a Chinese push." ^ top ^

Donald Trump and Xi Jinping have 'good conversation' about trade war ahead of G20 meeting (SCMP)
2018-11-02
US President Donald Trump and his Chinese counterpart Xi Jinping have agreed to try to resolve their differences on bilateral trade during an upcoming G20 summit as the trade war that started in July continues. Trump said in a tweet on Thursday that he had a "long and good [phone] conversation" with Xi about their trade issues, while Xi told Chinese media that both nations must work out a proposal to settle trade disputes. "Over the past period, China and the US have had differences on trade, and this has caused negative impact on the industries of both nations and global trade. China doesn't want to see that," Xi was quoted as saying by Chinese state-run channel CCTV. "China and the US have precedents of resolving difficult trade and economic issues through dialogue. The economic teams of both sides must step up communication and coordination on issues of their concern to put forward a proposal acceptable to both sides." In his tweet, Trump said the two leaders "talked about many subjects, with a heavy emphasis on Trade," adding that "Those discussions are moving along nicely, with meetings being scheduled at the G20 in Argentina." Xi also told CCTV that China's upcoming Import Export Expo in Shanghai can showcase his country's commitment to opening up and enlarging imports. The expo, which will be held in Shanghai between November 5 and 10, was announced last year as part of Beijing's efforts to show its commitment to global trade, according to the event's organisers. The expo was dubbed one of the country's "four major diplomatic events at home" for 2018. Trump's comments follow an increase in hard-line rhetoric from top officials in his administration, coming a day after Secretary of State Mike Pompeo admonished China to "behave like a normal nation on commerce". Pompeo was referring to US government data that put China's trade surplus with America at a record US$375 billion last year, as well as recent federal indictments of Chinese government employees who allegedly tried to steal American aviation technology. The agreement between Trump and Xi to discuss trade issues comes about a month after Vice-President Mike Pence accused Beijing of meddling in US elections and CIA Director Christopher Wray portrayed China as a bigger threat to American national security than Russia. Tensions between the world's two largest economies have been rising since Trump slapped a first round of punitive tariffs on Chinese tariffs in July, sparking a tit-for-tat trade war that has targeted more than half of the goods shipped between the two countries. Complaints from US companies about rising prices resulting from the tariffs may have prompted Trump to keep the talks on track, said David Adelman, a former US ambassador to Singapore. "The impact of the tariffs have been felt quickly throughout the US and American business leaders are communicating with the Trump administration in hopes that they will find a resolution to the trade issue," said Adelman, now a New York-based partner at law firm Reed Smith. The impact of the US-China trade war is spurring foreign and Chinese firms to consider moving parts of their supply chains out of both the US and China over the longer term and delaying or cancelling investment in both countries, according to a new survey by the American Chamber of Commerce for South China. The survey showed 72 per cent of the 219 firms polled said they were considering moving supply chain sourcing out of China, while 77 per cent said they would move supply chains out of the US. The firms surveyed, which included Chinese and foreign businesses, said they believed the trade war would last longer than a year. Expectations about whether Trump and Xi would meet at G20, and under what terms, had previously varied widely. The Wall Street Journal, for example, recently cited anonymous government officials on both sides that Trump would not meet Xi unless the Chinese side was prepared to discuss rules that force foreign companies operating in China to transfer proprietary technology to their local joint venture partners. Bloomberg News reported on Saturday, citing two anonymous sources, that the White House may exclude trade from the agenda of the summit between Trump and Xi in order to increase the likelihood of a bilateral deal. "The whole world will be watching when [Trump and Xi] meet and the stakes are extremely high," Adelman said. "Both the US and Chinese economies are under pressure because of these trade tensions." ^ top ^

Nation ready to assist in global poverty fight (China Daily)
2018-11-02
China is ready to work with all parties in the world to carry forward global poverty reduction work, and achieve the poverty relief goal set by the 2030 Agenda for Sustainable Development of the United Nations, according to President Xi Jinping. He made the remark in a congratulatory letter to the International Forum on Reform and Opening-up and Poverty Reduction in China, which is hosted by the Chinese government and the World Bank Group, and opened on Thursday in Beijing. Xi, also general secretary of the Communist Party of China Central Committee, said China has created a miracle by lifting more than 700 million people out of extreme poverty in the past four decades, Xi said. It is China's solemn promise to integrate poor people and poor areas in a moderately prosperous society together with the rest of the country, the president added. "We will stick to the people-centered philosophy of development, vigorously implement targeted poverty alleviation, give full play to China's institutional advantages, stick to the leading position of the government, deepen cooperation between eastern and western regions, mobilize the whole of society, combine poverty reduction with educational improvement and coordinate development-oriented poverty relief with government-subsidized poverty reduction to make sure absolute poverty is eradicated by 2020," he said in the letter. Antonio Guterres, UN secretary-general, also sent a congratulatory letter to the forum, saying China's experience in poverty relief can provide valuable lessons, and encouraged China to continue its leadership in global poverty reduction. Huang Kunming, a member of the Political Bureau of the CPC Central Committee and head of the Publicity Department of the CPC Central Committee, said at the forum's opening that the international community's participation in the event shows China's reform and opening-up and its achievements in poverty reduction have gained global attention and recognition. Huang said extreme poverty is still the biggest challenge, with around 30 million to be lifted out of poverty in China and 700 million globally. ^ top ^

Chinese envoy urges end to U.S. embargo against Cuba (Xinhua)
2018-11-01
A Chinese envoy said Wednesday that the United States should end its embargo against Cuba. "All countries should uphold the process of mutual understanding and development for all peoples," said Ma Zhaoxu, China's permanent representative to the United Nations, at a UN General Assembly meeting on the nearly six-decade blockade imposed on the Caribbean island by Washington. "The international community must tackle issues together," he said, urging Washington to cease the unilateral coercive measure, which has been reinforced during U.S. President Donald Trump's administration. The General Assembly has adopted resolutions repeatedly to have the embargo dropped, yet it still has not ended, said the ambassador, noting that the blockade "is contrary to the principle of the United Nations Charter and cause huge financial and economic damage for Cuba." "It hinders Cuba's ability to achieve the Sustainable Development Goals," Ma noted. In its annual report to the UN, Havana indicated that economic losses due to the U.S. blockade totaled more than 4.3 billion U.S. dollars between April 2017 and March of this year. ^ top ^

Britain to sell China 'unlimited' amount of military radar equipment, technology (SCMP)
2018-11-01
A British defence company has been given the green light to supply an unlimited quantity of goods to China's military, including airborne radar technology likely to be used by the PLA Air Force. Although the supplier has not been named, the "open individual export licence" (OIEL) has been in place since April – two months after British Prime Minister Theresa May visited Beijing – according to information from Britain's Department for International Trade. Unlike previous deals involving British arms sales to China, which were capped by amount and value, under the new agreement the supplier can "export an unlimited quantity of goods", including equipment, components, software and technology for military radar systems, the department said. Its strategic export control database described the equipment covered by the licence as "target acquisition, weapon control and countermeasure systems" for "aircraft, helicopters and drones". "It's potentially a big licence, and it does say the end user is the air force," said Andrew Smith, a spokesman for the London-based NGO Campaign Against Arms Trade. While open individual export licences usually remain valid for between five and 10 years, "the values are never published, so the figure could be very high", Smith said. But Britain is not the only European country that sells military equipment to China. "Almost all the other big arms exporters do exactly the same," Smith said. The trade department declined to comment on the deal. While Britain remains a close ally of the United States, the deal suggests London is prepared to deal with China despite the ongoing trade and strategic tussles between Beijing and Washington. Li Bin, a senior fellow working jointly in the Nuclear Policy Programme and Asia Programme at the Carnegie Endowment for International Peace at Tsinghua University in Beijing, said Britain was facing many challenges at home and abroad due to its pending departure from the European Union. While many companies, including financial firms in London, are considering reallocating to mainland Europe, China last year doubled its direct investment in Britain to more than US$20 billion. Against that backdrop, Britain seemed keen to do more business with China, Li said. And while Washington might not like the radar deal, it might not be able to stop it, he said. The export licence is not the only connection Britain has with China on radar systems. Last month, Professor Hugh Griffiths, one of Britain's top radar scientists and chairman of the Defence Science Expert Committee at the Ministry of Defence, was officially recognised by Beijing for his contribution to the advancement of Chinese radar technology. Wu Jianqi, chief designer of China's first anti-stealth aircraft radar system, presented Griffiths with an "Outstanding Award for Chinese Radar International Development" in front of more than 700 Chinese scientists at a conference in Nanjing, capital of east China's Jiangsu province, according to information on official websites. Griffiths, who has been a regular visitor to China since the 1980s, did not respond to requests for comment. Meanwhile, David Stupples, a British professor of electronic and radio systems at City, University of London, whose research focuses on electronic intelligence and warfare, said he had been invited to lecture at the technical institute associated with intelligence services in China. "China has made tremendous progress in radar design over the past 10 years and must be considered in the [world's] top 10," he said. In space-based radar systems, for instance, China has shown "expertise and ingenuity", but for maritime and airborne applications, "the UK is marginally ahead", Stupples said. Britain was also ahead on designing complete intelligence, surveillance and reconnaissance systems, although the Chinese military's "individual components are first rate", he said. Cao Yunhe, an award-winning military radar scientist at Xidian University in Xian, capital of northwest China's Shaanxi province, said the export licence was good news for China's military strength and radar research. "If they are willing to sell we are willing to buy," he said. "We want to know how their systems operate. It will help us improve our own design," he said. However, it was unlikely the technology and equipment being sold by Britain would be its most advanced. "There will always be some restrictions. If not on quantity, then on quality," he said. Wang Tong, who is also from Xidian University and works on radar systems for China's military aircraft and satellites, said the exchanges between Chinese and British experts would not go "too deep". Britain shares a lot of intelligence with the US, so China could not possibly allow British experts to get directly involved in its military radar programmes, he said, "Sharing information about models and specifications is strictly prohibited. I believe both sides are fully aware of the consequences," Wang said. "Most of the time people are just talking about physics, mathematical models and new theories." ^ top ^

Xi's Philippines visit: in New Clark City, Chinese cash can fill a hole left by the US (SCMP)
2018-11-01
When President Xi Jinping visits the Philippines in November, China is expected to seal a multibillion-dollar deal with the Southeast Asian country to develop a 500-hectare industrial estate in Clark, which was the home of an American military base for almost nine decades. This investment in New Clark City was billed to be China's largest in a single project in the Philippines, and another example of how President Rodrigo Duterte has, since coming to power two years ago, moved the country away from long-time ally the United States to forge new alliances. Vivencio Dizon, president of the Bases Conversion and Development Authority responsible for Clark's development, said the agreement underscored the improving ties between the two countries. "China is so important for the growth story of the Philippines – not just in terms of investment or trade but also in terms of tourist arrivals," Dizon said in Manila on Tuesday. In the first seven months of this year, 937,000 South Koreans visited the Philippines, followed by 764,000 Chinese. Last year, 968,447 Chinese tourists travelled to the Philippines, a 43.3 per cent increase from 2016. Bilateral ties had been "getting better and better" under Duterte, despite tensions during the reign of former president Benigno "Noynoy" Aquino III, said the head of the body tasked with transforming former military bases and properties into sources of economic growth. During Aquino's presidency, the Philippines and China became tangled in a dangerous stand-off in 2012 that lasted for months over the Scarborough Shoal in the South China Sea, which both countries claim as their own. In 2013, the administration initiated a legal challenge against Beijing's territorial claims at the Permanent Court of Arbitration in The Hague. The tribunal rejected Beijing's claims in 2016, saying they lacked legal basis, but Duterte said he would set aside the ruling when he took office that same year. Dizon said: "On the political front, the president has made it clear that China is a friend. But this is being done without compromising any of our claims in the West Philippine Sea. We can live together in friendship and in an environment of mutual respect." Dizon's comments come after Chinese foreign minister Wang Yi wrapped up a two-day goodwill visit to Duterte's hometown of Davao on Monday, where he inaugurated a new Chinese consulate over the weekend. He and newly minted foreign secretary Teodoro L. Locsin shared warm smiles as they signed agreements on Chinese grants to the Philippines, including US$1 million to support disaster relief and rehabilitation from Typhoon Vinta, which struck Mindanao province last year. At a joint press conference with Locsin, Wang gave his assurance that China would follow a code of conduct being drawn up by Asean states for the South China Sea. As for New Clark City, located about 120km outside the capital Manila, Dizon said China would pump in "a couple of billion US dollars", making it what he said could be its largest single investment in one project. The estate, touted as a smart city that would be sustainable and resilient to natural disasters, is next to a tax-free zone offering financial breaks to investors. The first phase is expected to be completed in about four years. Dizon said the property of 500 hectares was a huge space and thus a lot of Chinese companies would be investing there. Construction will start next year and the first phase of the estate is expected to be completed in around one to one and a half years. The industrial estate will become home to technology companies and light industries such as the manufacturing of semiconductors. "The [estate] will be a huge investment. It will really provide the impetus for long-term development in Clark and the New Clark City. We are very excited about this," he said. China's Ministry of Commerce will sign the agreement with the Department of Trade and Industry of the Philippines, he said. While Dizon remained tight-lipped about other agreements that would be signed during Xi's visit, the Department of Finance of the Philippines said on Monday at least five economic agreements would be signed between the two countries. The agreements would include loans and guarantees, economic and technical cooperation, as well as support for feasibility studies on the Philippines' infrastructure projects. Manila is notorious for its traffic jams, with a trip as short as 8km taking 40 minutes even during the non-peak hours. The development at New Clark City is aimed at reducing the snarl in Manila. Once a 106km-railway connecting Manila to Clark is completed in 2021, travelling time between the two places will be just 55 minutes. The Clark International Airport is also being expanded. By 2020, its capacity will have increased from 4.2 million passengers per year to 12.2 million. Dizon, formerly an assistant economics professor at De La Salle University, said that during Duterte's two years in office, China had jumped from being the Philippines' fifth largest trading partner to its largest. In August, total Philippine exports to China were valued at US$939.98 million, 34.4 per cent higher than a year ago. The development at Clark is part of Duterte's "Build, Build, Build" infrastructure programme aimed at decentralising power from Manila. It is also aimed at reducing the squeeze in the city of about 12.8 million and spurring growth elsewhere in the country. "Since growth is centred on Metro Manila, Metro Manila makes up of about 35 per cent of the entire country's GDP," said Dizon. "It's a vicious cycle because a lot of the jobs are in Metro Manila. That pushes a lot of inward migration in Metro Manila." ^ top ^

Chinese vice president expected to attend Bloomberg-sponsored forum in Singapore (Global Times)
2018-11-01
Chinese Vice President Wang Qishan is expected to attend a new economic forum organized by US tycoon Michael Bloomberg in Singapore on November 6 and 7, the forum website said on Thursday. Wang will deliver a keynote speech right after Bloomberg's opening remarks on November 6, according to the website. Called "Bloomberg New Economy Forum," the gathering's goal is "to stimulate productive, fact-driven dialogue among participants in an effort to promote deeper understanding and develop actionable solutions on important global issues." US President Donald Trump's former adviser Steve Bannon will also attend the forum, according to the Hong Kong-based South China Morning Post on Wednesday. The forum was originally scheduled to be held in Beijing in November, but was relocated to the city-state because the dates clashed with the China International Import Expo in Shanghai, according to SCMP. A roundtable discussion entitled "Financing Belt and Road" will also be held. Among the topics to be discussed is "Can China afford to keep up the lending?" Among those who will participate in the discussions are Robert Blackwill, the former US Ambassador to India, Abul Hassan Mahmud Ali, foreign minister of Bangladesh and Zhang Xiaoqiang, Executive Vice Chairman of the China Center for International Economy Exchanges. The Chinese Foreign Ministry has yet to confirm Wang's participation in the forum and his potential speech contents. ^ top ^

Xinhua Headlines: From made-in-China to sold-in-China, foreign firms set to benefit at CIIE (Xinhua)
2018-10-31
Five days away from the first China International Import Expo (CIIE), foreign exhibitors at the event are rushing to make final touches to their booths to ensure their exhibits shine. The CIIE is slated to kick off in Shanghai on Monday, with the world set to witness China's transformation from being the biggest exporter in goods to an even bigger buyer. At the booth of Italian high-tech company Leonardo Helicopter, engineers are busy assembling three slick models. The company has high hopes for the China debut of one of the models -- the AW189. The high-performance, 8.6-tonne super-medium-sized twin-engine helicopter is priced at 200 million yuan (28.7 million U.S. dollars). It can be used for a wide range of missions for search and rescue, commercial passenger transport and offshore oil-exploration operations. The company said it plans to establish a helicopter training center and a final assembly workshop in China. Leonardo has received more than 200 orders from China and its helicopters have been commissioned in medical rescue fleets in over 20 Chinese provincial-level regions. A flying car developed by AeroMobil, a Slovakian engineering firm, is expected to make its Asia debut at the CIIE. As a star exhibit at the expo, it was shipped to Shanghai on Oct. 18, but has remained veiled. More than 3,000 companies from over 130 countries and regions have so far confirmed their participation in the event, bringing more than 5,000 new products and technologies to China, Vice Commerce Minister Fu Ziying has said. Jimmy Choo Yeang Keat OBE, co-founder of London-based luxury shoe brand Jimmy Choo, said he and his godson, a jewelry designer for Reggie Hung, will bring their new luxury brand Genavant to China through the event. The brand, featuring jewelry-studded shoes, is set to unveil one pair priced at 30 million yuan at the CIIE. "I have never done a whole pair of shoes covered with pink diamonds before. We spent almost one year on it," Choo said. "The expo is big news, not only for China but the whole world," the 70-year-old said. Arancha Gonzalez, executive director of the International Trade Center, called the CIIE "a very unique fair" and "an example of how international trade can be win-win." "It signals a commitment of China to move from being a global factory to being a global market," Gonzalez said. He said his organization sponsored 100 SMEs to take part in the expo in order to help firms from less-developed countries benefit from China's opening-up. Foreign visitors arriving in Shanghai via Pudong International Airport can take a subway ride directly to the expo's venue, the National Exhibition and Convention Center (Shanghai), where they will be greeted by the event's mascot "Jinbao," a giant panda wearing a blue and yellow scarf embroidered with the CIIE logo. According to the organizer, yellow represents the Silk Road Economic Belt, while blue represents the 21st Century Maritime Silk Road. A four-leaf clover logo is featured on the mascot's hand representing the shape of the exhibition center. Strolling in the exhibition area of 270,000 square meters, visitors can shop goods from all over the world, from Russian ice-cream, Georgian red wine, Persian carpet, Turkish handicraft products to Egyptian dates. Damon Paling, trade commissioner of New Zealand Trade and Enterprise, told Xinhua that some 90 New Zealand companies will showcase dairy products, fruit, honey and beverages, among other food and agricultural products at the expo. "The year 2019 is a special tourism year between China and New Zealand. We really look to grasp that opportunity and showcase the best of New Zealand to more Chinese tourists," Paling said. Shanghai is gearing up for over 300,000 visitors during the expo. The event is going to bring a big inflow of visitors to neighboring cities in the Yangtze River Delta. Since April, the municipal government of Shanghai has approved 30 year-round platforms for exhibitions and trade of imported goods, many of which are scheduled to open before or soon after the expo. The platforms are designed to expand the benefits brought about by the six-day CIIE, so that import exhibitions and trade can be available to businesses permanently, said Shang Yuying, director of the Shanghai Municipal Commission of Commerce. "Mexican food and agricultural products getting exposure via the expo will make their way to ordinary Chinese households with the help of the year-round platform," said Yonanetl Zavala Cadena, president of Shanghai operations at the Mexican Chamber of Commerce in China. The platform that Cadena is referring to here is the Greenland Global Commodity Trading Hub, which offers a permanent exhibition space for foreign firms to demonstrate their products after the expo closes. The platform also provides services to help introduce exotic products to channels like the high-end supermarket of G-Super in China. Cadena said that, thanks to the service, dozens of Mexican companies will be encouraged to bring "a bite of Mexico" to the expo, ranging from chilli sauces, blueberry, raspberry, tortilla, seafood, beer, coffee to canned nopal. Li Wenchang, director of sales at the Greenland Global Commodity Trading Hub, said the hub hosts an African pavilion for 10 countries including South Africa, Morocco, Angola, Senegal and Ghana. Thanks to this initiative, fresh fruit will go from the fields of these countries to the doors of Chinese families. "Through the expo, the hub is expected to clinch contracts with over 110 national chambers of commerce, leading industry associations and renowned companies from over 40 countries and regions to better help foreign imports reach the Chinese market," said Li. Tomoaki Komori, managing director of Shanghai Takashimaya Co. Ltd., a renowned Japanese department store, said 85 percent of the company's revenue comes from overseas consumers. The company is eager to expand its business to China. The Takashimaya exhibition center in Shanghai, one of the permanent platforms, will focus on bringing foreign clothing, children's products and food to the Chinese market. Explorium, a perennial exhibition center owned by Fung Group, a Hong Kong-based company, aims to introduce new technology and high-tech gadgets to China. One of the service platforms is called "Oriental Express," boasting services to help imported products rush to Chinese consumers. With the slogan "New Era, Shared Future," the CIIE marks China's strong boost to free trade worldwide and endeavors to inject vitality into global economic growth, said Liang Ming, senior researcher with the Chinese Academy of International Trade and Cooperation. ^ top ^

China eyes bigger role for UNSC in maintaining int'l peace, security (Xinhua)
2018-10-31
China will work to ensure the United Nations Security Council (UNSC) plays a bigger role in maintaining international peace and security during its rotating presidency this November, China's Foreign Ministry said on Wednesday. "China will take over the rotating presidency of the UNSC this November from tomorrow on," Foreign Ministry spokesperson Lu Kang said at a routine press briefing. "As far as I know, the UNSC will hold a number of sessions in November on issues of Syria, Lybia, Iraq, Lebanon, the Middle East, Bosnia and Herzegovina, and the Sahel region situation," Lu said. As rotating president, China is considering open sessions on strengthening multilateralism and the role of the UN, as well as African peace and security under the current situation, Lu said, adding that the Chinese side is consulting with other UNSC member states about the working agenda of the next month. He said that the UNSC, the core of collective security mechanisms established after the Second World War, serves as an important platform for global security governance. "Currently, we are faced with complex challenges in international peace and security." "As rotating president of the UNSC, China is to work towards a bigger role for the Security Council, in line with the missions and principles of the UN Charter, in upholding objectiveness and fairness, cooperating in the spirit of unity, taking effective actions, and making positive steps to ensure political settlement of regional hotspot issues, thus playing a major role in maintaining international peace and security," Lu said. The Chinese side will also interact more with non-UNSC members, especially states on the UNSC agenda, so as to exercise its responsibility in a more open and transparent way, Lu added. The presidency of the Security Council is held by one of the 15 member states in turn for one month. The last time China took the role was in July, 2017. ^ top ^

Angela Merkel's exit may mean a policy shift for China in Europe (SCMP)
2018-10-31
China will have to reconsider its approach to Europe when German Chancellor Angela Merkel makes her exit and the political landscape in the region changes, according to analysts. They say Merkel's departure will bring new uncertainties to an already inward-looking European Union and add to the complexity for Beijing as it tries to counter rising protectionism in the United States and the tide of anti-globalisation sentiment. Following heavy losses in regional elections in Hesse and Bavaria for her coalition, Merkel on Monday said she would step down as leader of the Christian Democratic Union in December and would not seek re-election when her fourth term as chancellor ends in 2021. Cui Hongjian, a research fellow on European issues at the China Institute of International Studies, said Merkel's departure would raise the question of whether China and Germany could continue their "pragmatic" approach to cooperation. "China will be most concerned about whether the new leadership in Germany can maintain the policies of the Merkel era," Cui said. Since she took office in 2005, Merkel has visited China 11 times and there have been regular official meetings between the two sides trying to consolidate bilateral trade relations and cooperation on technology, despite their diverging views on human rights. Merkel has dominated European politics over the past 13 years and was an anchor for the EU during the global financial crisis and its sovereign debt crisis. China has for years tried to foster close ties with Germany as a means to push forward its relations with the European Union. But its growing presence in central and eastern Europe via the "16+1" grouping led by Beijing has been met with wariness in Germany and drawn criticism from Brussels and EU nations, who say it is trying to win over peripheral member states to damage unity and influence European policies on China such as human rights and the South China Sea. "For China, the first priority should be to stabilise its economic cooperation with Germany, which would benefit both sides and be informative for other EU countries," Cui said. Growing Chinese investment in the EU – in particular its push to acquire hi-tech German assets and its ambitious trade and infrastructure strategy, the "Belt and Road Initiative" – has also raised alarm bells in Germany. Berlin has long shared Washington's complaints about market restrictions, intellectual property protection and heavy subsidies for state-owned enterprises in China. Observers say Germany's concerns about those issues have influenced other European countries on China and Merkel's departure could mean more room for Beijing to develop ties with other EU members. Wang Yiwei, a professor of international relations at Renmin University, said Beijing should consider a new approach to managing its relations with Europe, and that its diplomacy in the region and the West may come under pressure in the post-Merkel era. "The multilateral trading system and world multipolarisation is facing a huge challenge. It is crucial for China to obtain support from the European Union, especially from Germany, after Britain leaves the bloc," Wang said. Klaus Larres, a history and international affairs expert at the University of North Carolina, said Germany's role as an anchor in the EU could also come to an end when Merkel goes. "Also, the German economic boom can't last forever and there are signs that it is coming to a gradual end, which would further add to instability," Larres said. China, meanwhile, may be lacking an "effective diplomatic policy on the West", according to Wang. He said Beijing would need a broader approach to Europe rather than putting more emphasis on a single country, working with more EU members to stabilise relations. When Merkel last visited China in May, the two countries endorsed efforts to defend globalisation and found common ground on salvaging the Iran nuclear deal after the US decided to withdraw from it, as well as fighting climate change. "As Merkel's grip on power dwindles, Germany may now be headed for a period of prolonged political introspection which does not bode well for those who want a strong European voice on the world stage," said Herve Lemahieu, director of the Asian Power and Diplomacy Programme at the Lowy Institute. "Merkel was seen as a key centrist and her policy of maintaining strategic independence from President [Donald] Trump's America enjoyed broad support in most European capitals." Cui said Beijing would need to consider how to avoid the negative impact from future political changes in Berlin. "We are expecting changes in the political and economic aspects of bilateral relations [when Merkel leaves office]," Cui said. "But there is no alternative in the region to the China-Germany economic ties in the short term. For Germany, rational politicians won't be looking to make major policy deviations." ^ top ^

China trade vs economic growth: the dilemma for Brazil's new Trump-style president (SCMP)
2018-10-29
Brazil's far-right president-elect could struggle with his twin commitments to cut Chinese investment in his country and accelerate its economic development, given that China is – and is likely to remain – Brazil's biggest trading partner, diplomatic observers said. Sixty-three-year-old president-elect Jair Bolsonaro campaigned on a Trump-style platform that included warning against Beijing's growing influence and amplifying fears about Chinese investment in Brazil's energy and infrastructure sectors. "China isn't buying in Brazil. China is buying Brazil. This is a big problem that we should be worried about … Are you willing to leave Brazil in the hands of the Chinese?" Bolsonaro said in the months leading up to the election. He vowed to reshape Brazil's foreign policy and improve ties with Washington, overturning the country's decade-long policy. On Monday, Chinese foreign ministry spokesman Lu Kang congratulated Bolsonaro and said China would deepen cooperation with Brazil. Analysts said Bolsonaro's presidency would bring a dramatic shift in China-Brazil relations, and the power politics of BRICS, the association of the five major emerging markets of Brazil, Russia, India, China and South Africa. "Bolsonaro's rhetoric has also largely been about reducing China's investment [and] this is likely to cause tensions between both Beijing and the new Brazilian government," James Floyd Downes, a lecturer in comparative politics at the Chinese University of Hong Kong, said. Downes said Bolsonaro's administration might reduce funding that was originally earmarked for areas such as railways and infrastructure, which Beijing has promoted. Roland Vogt, an international relations specialist at the University of Hong Kong, said the incoming president's lack of international experience could also create uncertainty for China's ties with Brazil. "Bolsonaro is not only very controversial and divisive both in his political rhetoric and posture, but also very inexperienced in matters of foreign affairs and trade," Vogt said. Bolsonaro has pledged to reduce Brazil's engagement with regional blocs such as BRICS, which was formed as a counterweight to Western dominance of international institutions. "A succession of presidents from the political left of Brazil has shared that agenda [of strengthening its involvement in BRICs]. But, The new president, by being pro-US, may decide to limit Brazil's involvement with BRICS," said Zhang Baohui, director of the Centre for Asian Pacific Studies at Lingnan University in Hong Kong. Chinese diplomats based in Brasilia have sought to highlight the need for bilateral cooperation in meetings with top Bolsonaro advisers in recent weeks, according to Reuters. China remains a major investor in Brazil, ploughing US$124 billion into the country since 2003, mostly in the oil, mining and energy sectors. China is also eager to bankroll railway, port and other infrastructure projects here to speed the movement of its Brazilian grain. Trade between China and Brazil stood at US$75 billion last year, according to Brazilian government data. And as the US trade conflict with China intensifies, Brazil became one of China's major investment destinations. This relationship could continue, given that China's investment is needed to meet another of Bolsonaro's campaign pledges – to speed up Brazil's economic development. "It is a paradox," Downes said. "Brazil is now heavily reliant on China's economy for its future economic development. Thus, there is likely to be a disconnect between the new Brazilian president's rhetoric and overall policy once in office, and that could upset the core supporters who voted for him. Vogt said diplomatic ties with China were likely to be cooler "but trade will continue … China, after all, is one of Brazil's most lucrative customers". ^ top ^

Australian state of Victoria signs MoU with China on Belt & Road (Global Times)
2018-10-28
Victoria became the first Australian state to sign a memorandum of understanding (MoU) with China's economic planning authority on the Belt and Road initiative following a signing ceremony in Victoria's capital city Melbourne, the Chinese Embassy in Australia said Friday. Chinese experts said on Sunday that China is moving in the right direction by dealing with not only central governments of other countries when it comes to cooperation under the Belt and Road initiative (BRI). The MoU was signed between Victoria's state government and China's National Development and Reform Commission and a ceremony was held on Thursday attended by Chinese Ambassador to Australia Cheng Jingye and the Premier of Victoria Daniel Andrews, said a statement from the website of the Chinese embassy. Business dealings with China already pump around $19.1 billion a year into Victoria's economy in merchandise trade alone, and Andrews believes the agreement will help cement Victoria as China's trade and investment gateway to Australia, the Xinhua News Agency reported on Friday. "In four years we have more than tripled Victoria's share of Chinese investment in Australia and nearly doubled our exports to China," Andrews said. Victoria signed a sister state agreement with East China's Jiangsu Province in 1979. Jiangsu, with a GDP of 4.48 trillion yuan ($640 million) in the first half of 2018, is the second largest contributor to China's overall GDP. The Australian state also signed a sister state agreement with Southwest China's Sichuan Province in 2016. Wang Yiwei, director of the Renmin University of China's Institute of International Affairs, told the Global Times on Sunday that Victoria is a state that is more focused on business than politics compared to Australia's capital Canberra. While Canberra deals more with issues related to national security and ideology, local governments tend to be more practical in their cooperation, Wang said. Han Feng, a research fellow at the National Institute of International Strategy under the Chinese Academy of Social Sciences, told the Global Times on Sunday that he expects more Australian states to make similar moves, as China-Australia ties have begun to recover from recent lows. The Australian Financial Review reported on Friday that the government of Victoria bypassed the Australian federal government in signing the agreement, noting the federal government has not yet signed up to the initiative. It is "naive" to ignore the potential opportunities from the Belt and Road initiative, the report quoted senior Australian businessman Malcolm Broomhead as saying. When meeting with Chinese State Councilor and Foreign Minister Wang Yi on September 24, Australian Minister for Foreign Affairs Marise Payne said her country values the Belt and Road initiative, and is willing to enhance collaboration with China on bilateral, regional and global agendas through dialogues, Xinhua reported. Australia is not the only country that recently expressed greater interest in the China-proposed Belt and Road initiative. Japanese Prime Minister Shinzo Abe said on Friday during his official visit to China that the initiative is a promising concept. Japan is willing to strengthen cooperation with China in a wide range of fields, including jointly exploring third-party markets, Xinhua reported. Australia and Japan, which the US drafted into its "Indo-Pacific strategy," have realized that the US strategy not only damages the interests of China, but also harms their own, Li Haidong, a professor at the China Foreign Affairs University in Beijing, told the Global Times on Sunday. The positive moves from Australia and Japan toward the BRI are signs that that US efforts to isolate China are failing, said Li. ^ top ^

 

Domestic Policy

China to blacklist those who misuse social insurance (China Daily)
2018-11-02
Chinese authorities plan to implement a blacklist system that punishes those who illegally use social security benefits, reported China News on Tuesday. Under the new rule, individuals or companies involved in social insurance misconduct, such as refusing to pay insurance fees, forging certificate materials and trafficking personal data, could be prohibited from working at government positions and traveling by train or plane. The Ministry of Human Resources and Social Security published the draft guideline on Oct 16 to solicit public opinion. In China, the social insurance system is composed of several parts: pension, medical insurance, work-related injury insurance, unemployment insurance, maternity insurance and the housing providence fund. Employers are required by law to cover social insurance for their employees, but in reality, many of them shy away from their responsibilities. More than 70 percent of companies failed to pay mandated social insurance premiums for their employees, and 32 percent of them only paid the minimum, according to a report published this year by 51shebao, an independent social insurance agency. The new rule is the latest attempt by the Chinese government to blacklist people for dishonest behavior. In March, authorities published a regulation, stating that individuals who spread rumors, engage in fraudulent activities or misbehave on planes, could be banned from traveling by airplanes for a year. The country's social credit blacklist has punished 12 million people as of Oct 26, according to the National Development and Reform Commission. ^ top ^

China to nurture more competent officials with 5-year training plan (Xinhua)
2018-11-01
China will organize thousands of cadres annually to receive education and training in the following years, in a move to cultivate more competent and professional officials, according to a detailed plan unveiled by the Communist Party of China (CPC) Central Committee. The education and training plan for officials nationwide from 2018 and 2022, reviewed by the Political Bureau of the CPC Central Committee at a meeting in September but only recently made public, sets to strengthen the ideals and convictions of the cadres, update their knowledge and skills and deepen the official training system so that they can better play their roles in advancing socialism with Chinese characteristics. Training sessions will target Party and government chiefs from the ministerial and provincial-level to primary levels and rank and file civil servants, executives of state-owned enterprises and young officials, according to the plan. The plan also touches on the training of professional and technical personnel -- the Ministry of Human Resources and Social Security is delegated to train one million such professional talents annually while the Organization Department of the CPC Central Committee is in charge of the training of high-level experts. Training opportunities will also be provided to some entrepreneurs of private enterprises, said the plan. Participants in the training sessions will study Party theories, rules and regulations and knowledge on various aspects including those related to the internet, big data, cloud computing and artificial intelligence (AI). They will also be trained to better implement key Party and state policies, such as poverty alleviation, rigorous governance over the Party, supply-side structural reform and the Belt and Road Initiative. ^ top ^

China ponders adoption of hydrogen-powered vehicles to beat smog (Global Times)
2018-11-01
China is thinking of replacing gas-powered cars with fuel cell vehicles powered by hydrogen to combat air pollution and save energy, experts said on Thursday. New-energy vehicles refer to vehicles powered by non-traditional fuels, for example, electric and hybrid vehicles. The fuel cell vehicles are powered by hydrogen, making them reportedly more efficient than conventional internal combustion engine vehicles with no tailpipe emissions. They emit water vapor and warm air. China's Ministry of Science and Technology and the United Nations Development Programme (UNDP) have been jointly implementing a Global Environment Facility-funded project that utilizes this innovative solution to help mitigate the impact of climate change. Devanand Ramiah, a UNDP deputy country director, told the Global Times on Thursday that "we have launched a pilot program in five cities including Beijing and Shanghai. Three hydrogen-powered buses served during the 2008 Olympic Games and another six were used at the Shanghai World Exposition in 2010." Some 5,000 fuel cell vehicles are expected to be on the road by 2020 and can be estimated to reach 1 million by 2030, he said. Zhang Weidong, a program manager at UNDP, told the Global Times on Thursday that hydrogen fuel cell vehicles have advantages over pure battery-powered electric vehicles: fast-refueling speeds, a longer life and low maintenance. Promoting hydrogen vehicles could also help poorer rural areas as hydrogen could also be generated from re-forming ethanol that can be extracted from farm crop residue such as sugar-rich straw, Zhang said. But hydrogen is flammable, sparking safety worries. Hydrogen is classified as a hazardous chemical substance in China, Zhang said, meaning that under the current regulatory framework, building new hydrogen fuel stations is not as easy or smooth as building fossil fuel stations. A total of 777,000 new-energy vehicles were sold in the Chinese market last year, up 53.3 percent year-on-year, the Xinhua News Agency reported, citing the China Association of Automobile Manufacturers. "China is studying relevant research for when to stop the production and sale of traditional fuel cars," Wang Cheng, an official at the China Automotive Technology and Research Center, told the Global Times. ^ top ^

'The biggest story in Chinese politics right now' – silence over Communist Party's autumn meeting (SCMP)
2018-11-01
As China's ruling Politburo wrapped up its October meeting on Wednesday, there was still no word on a key autumn meeting of the Communist Party, which according to party convention should be taking place soon if not convened already. Analysts said the likely delay of the Central Committee meeting – expected to focus on mid to long-term economic policies – might suggest a lack of consensus among the Chinese leadership over how to battle the growing headwinds facing the world's second-largest economy. The autumn plenum that comes a year after the party's national congress is largely seen as the most important full meeting of the party's roughly 400-strong political elite, who gather behind closed doors at least once a year. In recent decades, it was often an occasion when Chinese leaders revealed major reform programmes and new economic blueprints. It was at this plenum in 1978, for instance, that late paramount leader Deng Xiaoping launched the "reform and opening up" that placed China on its path of economic liberalisation. Another autumn plenum in 1993 endorsed the concept of the "socialist market economy", which dismantled a large part of China's state-owned sector. But this year, as China reaches the 40th anniversary of Deng's reforms, a cloud of uncertainty and anxiety is hanging over the country's future path. Many people are watching its slowing economy, faltering stock markets and the dispiriting retreat of its beleaguered private sector. Their gloomy outlook is exacerbated by the prolonged trade war with the United States, which threatens to spill into all-out conflict in spheres ranging from technology to geopolitics to defence. Some had hoped the country's ruling elite would use the plenum to give a clear verdict on which direction China would take, and what it should do to counter the headwinds from the trade war and its economic downturn. But as September and October slipped by, silence around the plenum persisted. The Politburo meeting chaired by President Xi Jinping on Wednesday delivered a stern warning on the "growing downward pressure" on the economy and the "profound changes" in the external environment – the first time the Chinese leadership has publicly acknowledged China's economic slowdown since the trade war. However, the meeting did not mention anything about the plenum – a noticeable departure from party tradition. "It's the biggest story, or non-story, in China right now," said Trey McArver, co-founder of Trivium China, a Beijing-based research consultancy. "When they didn't set a date [for the plenum] in the September Politburo meeting, I was shocked by that. But what I've been shocked more by is that in general nobody is talking about the plenum at all." Usually, a third plenum would take place in the autumn, after the first plenum introduced the party's new leadership immediately after the party congress and the second plenum settled personnel arrangements for state offices ahead of the annual legislative meetings in March. But since the party's 19th national congress in October, three plenums have already been convened by the new leadership. An extra one was convened at the start of the year to approve a controversial revision to the state constitution which scrapped the term limit that would have required Xi to step down in 2023. A lot had changed since then, said Chen Daoyin, a political observer in Shanghai. "Back in March, Xi's administration was still full of confidence about China's future development, otherwise he would not have been so unstoppable in consolidating his power since the party congress and pushing through the constitutional amendment," he said. "But now, the ordinary Chinese people have started to lose hope on China's economic development." According to party tradition, the date of a plenum must be announced at a Politburo meeting, which usually takes place towards the end of every month. With October's meeting ending with no mention of the plenum, the earliest time it could be held would be near late November, given Chinese top leaders will have a busy schedule throughout November. The first China International Import Expo, one of the key events of the year for the Chinese government, will be held in Shanghai next week, followed by the Asia-Pacific Economic Cooperation summit on November 17 and 18 in Papua New Guinea and the G20 summit in Argentina at the end of the month. The delay of a fourth plenum, according to Chen, could be due to a lack of consensus among the party's elite on the solutions to the problems facing China. Beijing might also be waiting for the results of the US midterm elections and the meeting between Xi and US President Donald Trump at the G20 summit in Buenos Aires to make a better assessment, he added. "The key factor that has led to the change of the situation China faces in the past year is the US factor," he said. "It is hard for the Chinese leadership to make concrete responses given all the uncertainties at the moment." But Beijing-based political commentator Zhang Lifan said that even if Trump's Republicans suffered losses in the midterm elections, Washington would not necessarily relax its pressure on China. "[Beijing] might be deferring [the plenum] … and waiting for the midterm results," Zhang said. "But I doubt it would have much impact. Suppressing China is a bipartisan consensus." He also said the Communist Party elites appeared yet to reach a consensus on the future course of the country, citing the sometimes conflicting messages from Xi's recent tours of the northeastern rust belt and the liberal southern province of Guangdong. "Are we continuing reform and opening up, or pursuing a self-reliant strategy? There may not be a high degree of consensus among the establishment yet," Zhang said, citing as an example Beijing's swaying remarks on the role played by state-owned enterprises (SOEs) in China's economy. The silence is also a stark contrast to the high-profile preparations leading to the third plenum in November 2013, a year into Xi's administration. Back then, the meeting was announced with three months' notice, after the Politburo meeting in August. Two weeks before the plenum, Yu Zhengsheng – then the fourth-ranking member in the Politburo Standing Committee – promised in public that the closed-door meeting would unveil "unprecedented" economic and societal reforms. Indeed, the much-anticipated plenum pledged to allow the market to play a "decisive" role in the economy, while maintaining the importance of the party's hand and the state sector. A party directive following the meeting listed more than 300 specific reform measures in 60 categories. But implementation of many reforms has been on a piecemeal basis. While progress has been made in areas such as liberalisation of prices for several crucial commodities, the tougher reforms, such as on SOEs, have seen little progress. The private sector, although contributing about 80 per cent of the country's new jobs, is increasingly losing ground to the SOEs, which have been consolidated and strengthened. This year alone, at least 47 distressed non-state companies have disclosed plans to sell stakes to government-backed investors, according to Bloomberg. McArver, from Trivium China, said the reform measures announced at the 2013 plenum were not on a five-year time frame but on a seven-year one towards 2020. "The reason we don't have much hyping about new reform is that Xi and the broader leadership are not changing course," he said. "They see the 2013 plenum as a road map all the way through to 2020." ^ top ^

Birth rate set to continue decline, despite two-child policy (China Daily)
2018-10-31
The number of births in China is expected to continue to fall this year, the third year of the implementation of a national policy designed to encourage couples to have a second child, according to president of the China Population Association. "The number of people born will undoubtedly continue to fall this year, as well as over the next few years," Zhai Zhenwu, who is also a prominent professor in population studies in Renmin University of China, said. Zhai, president of the China Population Association, said a major reason for the declining birth rate is the rapidly decreasing number of women of childbearing age, which has kept going down by between 5 million and 6 million every year. "So even if the birth ratio remains the same, the total number of people born will keep decreasing," he said. Another reason for the expected decline of births is that many women who planned to have a second child rushed to get pregnant and give birth in the first several years of the implementation of the policy, and the peak in births will be over soon, Zhai said. However, Zhai said the universal second child policy has helped to increase the birth rate, and the number of second children born in China has accounted for about half of all the births in China last year. "Without the universal second child policy, the number of births would see a more drastic fall," he said. Zhai suggested creating a more friendly environment for couples to give birth, such as establishing more nurseries for infants, to encourage the birth of a second child. "However, we should realize the fact that various measures designed to encourage births will not stop the dwindling birth rate, as experiences in some developed countries such as Japan and South Korea have shown," he said. ^ top ^

China's 12th National Women's Congress opens (Xinhua)
2018-10-31
The 12th National Women's Congress (NWC) opened in Beijing on Tuesday. President Xi Jinping, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, attended the opening of the congress at the Great Hall of the People. The meeting was also attended by other leaders of the CPC and the state including Li Keqiang, Li Zhanshu, Wang Yang, Wang Huning and Han Zheng, all of whom are members of the Standing Committee of the Political Bureau of the CPC Central Committee. Zhao Leji, also a member of the Standing Committee of the Political Bureau of the CPC Central Committee, delivered a speech on behalf of the CPC Central Committee. A total of 1,637 delegates from all walks of life and 79 specially-invited delegates from the Hong Kong Special Administrative Region (SAR) and the Macao SAR, attended the congress. Shen Yueyue, vice chairperson of the National People's Congress Standing Committee and executive chairperson of the presidium of the 12th NWC, announced the opening of the meeting. Women's federations at all levels have taken Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as a guide, and made new contributions to the development of the women's cause and consolidating public support for the Party's governance since the 11th NWC, Zhao said. Xi's discourses about women and the work of women have provided fundamental rules for the cause of women and the work of women's federations in the new era, he noted. Zhao called on Chinese women to have firm ideals and convictions, act under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, contribute to the new era, advance the great cause, and continue their efforts to achieve the two centenary goals and the Chinese Dream of national rejuvenation. When making a report on behalf of the 11th Executive Committee of the All-China Women's Federation (ACWF), Huang Xiaowei, executive chairperson of the presidium of the 12th NWC, called for holding high the great banner of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and contributing to securing a decisive victory in building a moderately prosperous society in all respects and realizing the Chinese Dream of national rejuvenation. A draft amendment to the ACWF constitution was submitted to the delegates for deliberation.  ^ top ^

Chinese official stresses importance of Xi's discourses on poverty relief (Xinhua)
2018-10-29
A senior Chinese official on Monday stressed the importance of the discourses of Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, on poverty alleviation. Xi's important discourses serve as the fundamental guidance, general framework, core requirement, basic strategy and source of power for winning the tough battle against poverty, said Hu Chunhua, a member of the Political Bureau of the CPC Central Committee and head of the State Council Leading Group of Poverty Alleviation and Development, at a symposium. Successful poverty relief practices since the 18th CPC National Congress have fully proved the scientificity and truthfulness of those discourses, Hu said. In the final stage for winning the tough battle, China must resolutely meet Xi's requirements and stand firm to the existing lines, principles and policies, he said. China should raise the quality of poverty relief, push forward the fight against poverty based on different local conditions, and connect the fight against poverty with the country's rural revitalization, he said. The country should also strengthen the Party's leadership on the fight against poverty to gather the strength of the whole Party and society to win the tough battle against poverty, he added. ^ top ^

China's top legislature wraps up bimonthly session (Xinhua)
2018-10-27
The Standing Committee of the National People's Congress (NPC) closed its five-day bimonthly session Friday, adopting a revised Criminal Procedure Law, revisions to the organic laws of courts and procuratorates, among others. Presiding over the closing meeting, Li Zhanshu, chairman of the NPC Standing Committee, said the NPC attached great importance to achieving judicial reform and justice via legislation and supervision. The revised Criminal Procedure Law introduces "default judgment" in criminal trials, which allows the prosecution of suspects who stay overseas and are involved in corruption, severely endangering state security or terrorism. Citing the first NPC Standing Committee inquiry on judicial work ever held during a bimonthly session, Li said it was an exploration of the NPC exercising its supervision over judicial organs. Before the closing meeting, Li presided over a chairpersons' meeting of the NPC Standing Committee. At the closing meeting, lawmakers voted to enact a new law on international criminal judicial assistance and to adopt a resolution to mandate the Supreme People's Court to handle cases related to intellectual property rights, which require more expertise. Lawmakers also approved the one-year extension of a pilot program, which aims to spur innovation and reduce inefficiencies in the country's drug approval system. The so-called "marketing authorization holder" mechanism, introduced by the State Council in a three-year pilot reform in late 2015, expands those eligible to acquire drug manufacturing licenses from pharmaceutical companies to drug researchers and institutions. In addition, a package of revisions on 15 laws, including the Wild Animal Conservation Law and the Metrology Law, were adopted in accordance with a key institutional reform plan adopted by the NPC on March 17. For example, the customs and quarantine offices used to be parallel law enforcement agencies under the Wild Animal Conservation Law, but the latter are now a part of the customs administration. Two treaties between China and Grenada, one on extradition and the other on criminal judicial assistance, were also ratified at the closing meeting. During the session, lawmakers for the first time reviewed two State Council reports on state-owned assets. Lawmakers also deliberated reports on the implementation of the Law on Protecting Against and Mitigating Earthquake Disasters and the Law on Quality and Safety of Agricultural Products. ^ top ^

National political advisors discuss population issues (Xinhua)
2018-10-27
Chinese national political advisors convened a bi-weekly seminar Friday to discuss issues about population, family planning policies and aging. Population remains a comprehensive, long-term and strategic issue for China, said Wang Yang, chairman of the National Committee of the Chinese People's Political Consultative Conference, who presided over the meeting and made a speech. Efforts are needed to balance the size and structure of the population, and accommodate the development of science and technology, so as to realize a sustainable population in the long run, said Wang, who is also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee. A total of 15 political advisors and representatives from academia put forward their suggestions, according to a press release published Saturday. They agreed that the country's family planning policies have effectively contained the population growth that was too fast and relieved pressure on the environment and supply of resources. While the population is growing steadily and its structure is optimizing, new problems have occurred when significant changes happened to the general situation of population and people's perception about birth, they noted. They suggested that more resources be allocated to researches on the long-term change of population, and to public services related to birth such as nurseries. They also called for better vocational education to foster a knowledge-based skillful and innovative work force, and more comprehensive healthcare services to take care of senior citizens. ^ top ^

 

Xinjiang

China's anti-terrorism tactics should not be seen as targeting Uygurs, says 'Eastern Nato' (SCMP)
2018-10-29
The head of the "Eastern Nato" has commented on Beijing's anti-terrorism tactics in Xinjiang autonomous region, saying terrorism cannot be defined by "nationalities, geographical adherence or religion". Rashid Alimov, secretary general of the China-Russia led Shanghai Cooperation Organisation (SCO), said: "We don't divide terrorists in terms of their nationalities, their geographical adherence or religion. Because terrorism does not have any of that. "It does not matter what terrorists claim to do or the highest purpose they claim to serve to justify terrorism. Because every terrorist's goal is to kill. It's number one goal is to kill peaceful people." Alimov, a former foreign minister of Tajikistan – one of eight member countries of SCO – was responding to global criticism of China's forceful, systematic detention and enforced political education of up to one million ethnic Uygurs and other Muslims. China has called these camps "vocational training centres" to "educate and transform" people influenced by extremism. "If you look at all terrorists attacks, they occur at peaceful places … How can it be connected to terrorists' religion, city, region? It has nothing to do with it. Therefore we will continue to decisively work towards taking the root out of the terrorist, and it is evil," Alimov said. He did not elaborate on methods of taking the "root" out. The SCO was set up in 2001 to fight the "three evil forces" of terrorism, separatism and extremism. Beijing has blamed these "forces" for the sporadic violence in its northwestern Xinjiang region, relating them to ethnic nationalism and radical Islam that promotes separatism. Xinjiang is home to more than 10 million Uygurs, a Turkic minority with stronger cultural links to Central Asia than to the rest of China, which is dominated by the Han ethnic majority. The stability of Xinjiang is of political and economic interest to a majority of SCO member countries which border the region. These include Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Pakistan, India, and observer country Mongolia. Ethnic Kazakhs and Kyrgyzs, or nationals from these countries, have been reportedly detained or missing in Xinjiang and in May this year Kazakhstan's foreign ministry formally raised the issue during a bilateral meeting with China, requesting "an objective and fair review of affairs and the release of those ethnic Kazakhs detained in China who have dual citizenship." Alimov said China's contributions to the fight against international terrorism were "big and rational" and that all member countries had praised China's work during its rotating chairmanship which ended this year. The SCO, which evolved from the "Shanghai Five" has expanded its original mission to resolve border disputes among China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. Today its wide-ranging goals include economic cooperation, cultural exchanges, and security. It has been dubbed the Eastern version of the transatlantic security alliance formed in the West against the Soviet Union during the cold war. Since its inception, the organisation has repeatedly stressed that it has no intention to become a military bloc. "Yes we conduct drills, but they are of an anti-terrorist character. These drills are not directed at any country, any organisation or anyone," Alimov said. India and Pakistan, long-time regional rivals, officially joined China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan as full members of the organisation this year. The group currently has four observer countries: Mongolia, Iran, Afghanistan and Belarus; and six dialogue partners: Turkey, Sri Lanka, Nepal, Cambodia, Azerbaijan and Armenia. ^ top ^

 

Hongkong

Hong Kong ranked world's 4th easiest place to do business (Xinhua)
2018-11-01
Hong Kong was ranked the fourth globally on the ease of doing business, moving up one place from being the fifth last year, the Hong Kong Special Administrative Region (HKSAR) government quoted a World Bank annual report as saying on Wednesday. The World Bank's Doing Business 2019 Report, which was released Wednesday, compared the ease of doing business in 190 economies through 10 indicators. Hong Kong performed well in a number of the indicators and was ranked the first for both "paying taxes" and "dealing with construction permits". "The score of Hong Kong has improved from 83.44 last year to 84.22 this year, reflecting continuous enhancements in our business facilitation measures," the HKSAR government said. "The World Bank commends Hong Kong for the successful implementation of reform measures to improve the ease of doing business." "In the past 10 years, Hong Kong has maintained its position among the world's top ranking economies in the report, re-affirming our favorable business environment for overseas companies to set up their regional headquarters and offices, and for all businesses to flourish," a spokesman said. The HKSAR government will study the report carefully and continue to work closely with the business sector and other stakeholders to reform the existing regulatory regimes, enhance regulatory efficiency and reduce business compliance costs, so as to further improve the business environment in Hong Kong, the spokesman added. ^ top ^

Rule of law and freedom of speech going strong in Hong Kong, city leader tells Japanese media (SCMP)
2018-11-01
Hong Kong's leader has assured Japan of the city's rule of law and freedom of speech, after being bombarded with questions over a political storm associated with a British journalist recently denied a work visa who moderated a talk on independence from China. During her maiden official visit to the country, Chief Executive Carrie Lam Cheng Yuet-ngor on Thursday was grilled by Japanese media about Hong Kong's rule of law and freedom of speech after the government denied Financial Times journalist Victor Mallet's work visa following the forum. Mallet, who left Hong Kong last month, was petitioning against the Hong Kong government's decision, the chief executive said, pending a review by Lam and her cabinet, the Executive Council. "Hong Kong is proud of its rule of law and freedom of speech," Lam said on the sidelines of a trade symposium in Tokyo. She added she had yet to field "a single question" from the business community about the issues. Asked if the city's stature had suffered due to a perceived erosion of free speech, Lam replied that the city had been ranked the freest economy in the world by the US think tank The Heritage Foundation for 24 straight years, and No 1 in the category this year by the Canadian think tank The Fraser Institute. "That so many overseas media, especially Japanese media, have been using Hong Kong as a base for reporting is by itself a good indication of the freedom of reporting of journalism in Hong Kong," she continued. "Hong Kong is vibrant and is not affected by the perception you have read." Lam is among a group of about 300 delegates from the city aiming to deepen trade ties with Japan. The five-day mission, themed "Think Global, Think Hong Kong", marked the first time the city has formally promoted trade in the country since 2012. More than 2,000 people attended the symposium. The trip took place amid persistent global economic uncertainty surrounding the US-China trade war. In addition, Lam said, both Hong Kong and Japan were facing challenges arising from climate change and an ageing population. "Hong Kong's strengths are in research and development, but mainly in academics," she explained. "We can learn from Japan, which works closely with the industrial sector to apply their innovation." "Japan is a strong partner in IT," she added, after touring a number of facilities dedicated to innovation, such as the country's smart city Kashiwa-No-Ha and the University of Tsukuba. Calling Hong Kong "a latecomer" to IT, Lam described the city as "full of energy" and noted her administration had invested HK$50 billion (US$6.37 billion) to develop the sector. Hong Kong has been the largest importer of Japanese agricultural and seafood products for more than a decade, a relationship that last year generated US$33.6 billion in revenue. More than 400 daily flights connect Hong Kong and Japan, links that made their economic and cultural ties close, Lam said. ^ top ^

Opponents of land reclamation 'do not represent Hong Kong', property tycoon Gordon Wu says (SCMP)
2018-10-28
The collective voice of thousands of residents who marched to oppose a controversial multibillion-dollar reclamation project earlier this month "do not represent Hong Kong", an outspoken property tycoon said on Sunday. And if the government kept acquiescing to "minority" opposition, the city's future would be destined to decline, according to Gordon Wu Ying-sheung, founder and chairman of Hopewell Holdings, a major developer. "In Hong Kong, the silent majority never say anything," Wu said on a TVB programme on Sunday, shrugging off the October 14 rally's larger than expected turnout. Organisers did not have a tally, but police put the figure at 5,800. "Can a few thousand people represent all of Hong Kong? Can some granny in Cheung Chau who believes it is environmentally damaging claim to be an expert on environmental protection?" Wu said the city's biggest "challenge" was "learning to be democratic", adding that many people believed that just because they had a right to be consulted, they had a right to veto or stop a project. "Let's say we get a Michelin-starred chef to come to Hong Kong and we're all sitting down for dinner. There's a consultation: some don't want fish, some don't like chicken. But do they come up with the menu? "If you keep retreating when some people come out to protest, then Hong Kong's future will go this way," he explained, pointing his finger downwards. The 82-year-old tycoon raised eyebrows last week by upping the ante on Hong Kong's reclamation plans, proposing a 2,600-hectare artificial island east of Lantau Island and another measuring 445 hectares near Lamma. This would be bigger than Chief Executive Carrie Lam Cheng Yuet-ngor's "Lantau Tomorrow Vision", which centres on building a new residential and business hub on 1,700 hectares of reclaimed land in roughly the same area to cater to 1.1 million people. She unveiled the blueprint in her policy address on October 10. Critics argue that reclaiming such a large swathe of sea would end up a massive flood-prone white elephant costing taxpayers up to HK$1 trillion, while spelling disaster for the marine environment. Despite official estimates that Hong Kong's population would peak at 8.2 million by 2043, Wu said the city needed to conceptualise a long-term plan for at least 10 million inhabitants to drastically increase the amount of average per capita living space, which, at 170 sq ft, is one of the smallest in the world. Without surplus land, he said, "your property prices will just keep getting more expensive. You are just benefiting the government and the property developers." Wu believed officials had the responsibility to furnish data and conduct studies such as environmental impact assessments. People could challenge them via judicial reviews if they saw fit. Eddie Tse Sai-kit, convenor of the Save Lantau Alliance, one of the march's organisers, said the fact that so many people turned out for the march on just three days' notice clearly reflected public opinion and pent-up grievances. "It was spontaneous, and we did not mobilise anybody to come," he added. Several opinion surveys have also shown people did not agree that land reclamation was the best solution for solving the city's housing crisis. "As for what's scientific, many professional consultancies are paid by developers to conduct studies and assessments," Tse said. "Wu himself has proposed reclaiming thousands of hectares around Hong Kong to sell for decades, so it is very clear where his interests stand. "If the people or the inhabitants of these affected islands aren't representative, can a small circle of property developers claim that they are?" ^ top ^

 

Taiwan

Xi Jinping reminds new diplomatic ally El Salvador: 'Stick to the one-China principle' (SCMP)
2018-11-02
President Xi Jinping on Thursday called on El Salvador to strictly uphold the one-China principle and pledged more bilateral economic cooperation with the Central American nation, months after it switched diplomatic recognition to Beijing from Taipei. Xi made the remarks during a meeting with Salvadoran President Salvador Sanchez Ceren in Beijing, his first visit to China since official ties were established in August. El Salvador's decision to switch recognition is seen as part of Beijing's efforts to ratchet up pressure on Taiwan and isolate the self-ruled island since pro-independence President Tsai Ing-wen took office in 2016. Taipei now has just 17 diplomatic allies left. The US has warned that El Salvador's move would "affect the economic health and security of the entire Americas region" and accused the nation of "falling prey" to China's interference. On Thursday, Xi said establishing diplomatic ties between China and El Salvador was the "decision of two sovereign nations" and was done in accordance with international laws. The two nations faced the "important task" of further boosting their relations by improving trust, Xi was quoted as saying by state broadcaster CCTV. "El Salvador has to stick to the one-China principle, which is the foundation of China-El Salvador relations, to build a more solid base for bilateral relations," Xi said. He also said Beijing would encourage more Chinese companies to invest in and take on more infrastructure projects with the Central American nation. China was willing to increase imports from El Salvador, provide expertise and promote the nation as a destination for Chinese tour groups, Xi said. He added that the two nations should work together to protect multilateralism and push forward China's relations with Latin America. Sanchez Ceren, meanwhile, said establishing ties with Beijing would bring benefits to Salvadorans, and that he was confident about their bilateral relations. China has stepped up its investment and presence in Latin America and the Caribbean in recent years. Dominican Republic President Danilo Medina will also visit China this week after it cut off ties with Taiwan. China has also encouraged Latin American countries to take part in the "Belt and Road Initiative", a strategy launched by Xi to boost trade and infrastructure links. But Chinese companies' interest in building ports in the region has caused unease in the United States. In July, US ambassador to El Salvador Jean Manes warned that China planned to turn the La Union commercial port in the country's east into a "military base". Meanwhile, Taiwan has blamed the Central American nations of falling into Beijing's "dollar diplomacy" trap. Beijing considers Taiwan a wayward province to be taken back, with the use of force if necessary. ^ top ^

Pentagon official urges Taiwan to boost defence spending in face of possible attack by mainland (SCMP)
2018-10-31
A Pentagon official is urging Taiwan to ramp up its defence budget to protect against potential attacks from mainland China. David Helvey, US principal deputy assistant secretary of defence for Asian and Pacific security affairs, told a conference in Annapolis, Maryland on Monday that the self-ruled island "must have resources to modernise its military and provide the critical materiel, manning and training needed to deter, or if necessary defeat, a cross-strait invasion". Helvey said "Taiwan's current efforts will falter" unless its defence budgets keep growing, according to a transcript of his remarks released by the US-Taiwan Defence Industry Conference on Tuesday. The official also accused China of attempting to "erode Taiwan's diplomatic space in the international arena while increasing the frequency and scale of [People's Liberation Army] activity within and beyond the First Island Chain". The first island chain refers to the first chain of major archipelagos, including Taiwan and Japan, out from the East Asian continental mainland coast. Helvey said that by stepping up Beijing's ability to strike with advanced equipment, including long range bombers, the PLA was trying to end the era of zero military conflict that had existed in the Taiwan Strait since 1949, when the mainland's Communist Party won a civil war that drove the Nationalist government to the island. "These coercive acts only make more difficult the peaceful resolution of cross-Strait issues in a manner and scope, and at a pace, acceptable to the people on both sides," the official said. Under the Taiwan Relations Act, the US has been selling arms to Taiwan to maintain the island's self-defence capability as part of an overall effort to prevent the mainland from taking it over by force. Helvey's comments come four days after President Xi Jinping, during an inspection tour in Guangdong province, told the Chinese military region responsible for monitoring Taiwan and the South China Sea to "prepare for war". Defence Minister Wei Fenghe also vowed on Thursday not to cede "a single inch" of territory to Taiwan, which the mainland has consistently regarded as a wayward province, to be brought into line by force if necessary. Wei is expected to meet US defence chief James Mattis in Washington next week. Pentagon spokesman Christopher Logan said in an email that Mattis has invited Wei to visit the US capital during the week of November 5. Helvey told the defence industry meeting that the US and Taiwan both needed to update their thinking on arms procurement, planning and training to counter a potential strike against the island by mainland forces. "These changes are essential if we are to look dispassionately at the military balance in the region and devise a way ahead that ensures Taiwan has the ability to resist coercion and deter aggression," the Pentagon official said. US President Donald Trump has approved two separate packages of arms sales to the island in less than 18 months. The first, valued at US$1.4 billion, came in June 2017, the second, worth US$330 million, in September. Rupert Hammond-Chambers, president of the US-Taiwan Business Council, speculated on Sunday during a press conference that the US government would likely notify the US Congress of new arms sales to Taiwan, worth at least US$50 million, sometime before the end of this year. The Washington-area business council is a non-profit group advocating for closer business ties with the self-governing island, focusing on defence procurement. The US is Taiwan's sole arms supplier even though no formal diplomatic relations exist between the two. Taiwan's deputy defence minister, Chang Guan-chung, who led a Taiwanese delegation to the two-day Annapolis conference, declined to confirm whether a new arms deal with the US would occur this year. York W. Chen, the deputy secretary general with Taiwanese President Tsai Ing-wen's National Security Council, told reporters the Taiwanese government would welcome future new arms sales by the US. He also said Taiwan would welcome "normalised and multilevel" arms sales with the US based on a case-by-case review of requests for weapons purchases. A new system could result in more "frequent" sales of arms to Taiwan, Chen said. The Pentagon already has advocated for establishing such a system for its arms sales to Taiwan. Randall Schriver, the US assistant secretary of defence for Asian and Pacific security affairs, was quoted by Taiwan's Central News Agency this month as saying the US was moving towards a "more normal foreign military sales relationship" with the island. China strongly opposes any US arms sales and official contact with Taiwan. Chinese Foreign Ministry spokesman Lu Kang last week urged the US "to correct its mistakes, stop any official contact and military ties with and arms sales to the Taiwan region". Meanwhile, Taiwan has continuously expressed a desire to acquire advanced American weapons. Its defence ministry has said it needs M1A2 Abrams battle tanks and has suggested it plans to acquire US F-35 fighter jets, saying it wants "new fighters capable of vertical or short take-off and landing and having stealth characteristics". Derek Grossman, a senior defence analyst with Rand Corp, said "Taiwan is certainly interested in acquiring the F-35 for the vertical/short take-off and landing capability it would provide its air force". Grossman said Taiwan's interest in getting F-35s is driven by the accuracy of China's short-range ballistic missiles, which could target the Taiwan air force's runways in precision strikes to keep the island's aircraft grounded. "If tensions continue to persist in the US-China relationship, it's conceivable Washington might ramp up arms sales beyond just once or twice a year," Grossman said. The Trump administration, however, "could alternatively dangle the prospect of cutting arms sales as a bargaining chip in broader policy discussions with China, whether on North Korea, trade, or the South China Sea", Grossman said. ^ top ^

 

Economy

Aid to private businesses pledged (China Daily)
2018-11-02
President Xi Jinping sent a strong signal of maintaining supportive policies toward private businesses, including such measures as tax reductions, at an unusual meeting with entrepreneurs on Thursday. Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, was briefed by 10 entrepreneurs, mostly from small and medium-sized companies, at the Great Hall of the People. He talked with them about their difficulties and required that related government departments study how to address the problems properly. After the briefing, Xi delivered a speech pledging to support the development of private businesses as always. Private businesses' status and role in China's economic and social development are unchanged; the Party's policies of unswervingly encouraging, supporting and guiding the development of private businesses are unchanged; and the Party's dedication to improving the environment and providing more opportunities for private businesses is unchanged, Xi said. China's private businesses can only become stronger in the process of building a moderately prosperous society in all respects, he said, and they should play on a broader stage. Since the reform and opening-up policy was introduced 40 years ago, private businesses have become an important force in promoting the country's development, Xi said, adding that private companies have contributed to entrepreneurship, employment, innovation and revenue. The Party's stance is clear and consistent on upholding its basic economic system, which has already been enshrined in the country's Constitution and the Party's Constitution, Xi said. He added that the strengthening of the public sector does not contradict support for the private sector. All private companies and private businesspeople should focus on the development of their businesses without doubts or anxiety, Xi said. Xi said the problems of some private firms in such areas as market, finance and transition are caused by multiple factors, and these problems will be resolved in the process of their development. It's natural that China, which is in the process of development, comes across problems such as rising uncertainties in economic development, increasing pressure from economic slowdowns and more difficulties for businesses, he said, adding that China has great potential from its huge market and the rising middle class. Xi introduced six measures, including easing companies' tax burdens, resolving private companies' difficulties in borrowing money, building a fairer environment for competition and protecting the safety of private businesspeople and their wealth. The president's commitment to supporting private businesses is in line with his remarks during his recent inspection tours in Liaoning and Guangdong provinces, where he visited private companies and reaffirmed the Party's unswerving support for private businesses. Lu Weiding, board chairman of Wanxiang Group, an auto components manufacturer based in Hangzhou, Zhejiang province, said after the meeting that he was greatly encouraged by Xi's commitment to supporting private businesses. "General Secretary Xi talked with us face-to-face, and we are assured that the Party's supportive policies for private businesses and entrepreneurs have never changed in the 40 years since the reform and opening-up began," he said. Lu said China has comprehensive industrial chains and an excellent workforce with a good educational background. He said he is quite confident about the future of his business. Yi Huiman, chairman of the Industrial and Commercial Bank of China, said the president's remarks put private entrepreneurs' minds at ease. ICBC will make further efforts to implement Xi's requirements on supporting private businesses and provide better financial services to private companies, he said. ^ top ^

 

DPRK

ROK, DPRK stop all hostile acts in border area as agreed upon in Pyongyang summit (Xinhua)
2018-11-01
The Republic of Korea (ROK) and the Democratic People's Republic of Korea (DPRK) on Thursday stopped all hostile acts in border area as agreed upon in the military agreement, signed by defense chiefs of the two Koreas during the Pyongyang summit in September, according to Seoul's defense ministry. The ministry said in a press release that the military authorities of the two Koreas would stop all hostile acts against each other on land, in waters and the air as of 12 am local time Thursday (1500 GMT Wednesday) in accordance with the comprehensive military agreement. The military agreement was signed on Sept 19 in Pyongyang on the sidelines of the third summit between ROK President Moon Jae-in and top DRRK leader Kim Jong-un. Under the agreement, the two sides would stop the live-fire artillery drills and the field maneuvering exercises by regiment or bigger units within the 5-km border areas from the military demarcation line (MDL) dividing the Korean Peninsula. The operation of drones, helicopters and other aircraft would be banned over the border areas up to 40 km away from the MDL. The live-fire coastline artillery drills and the maritime maneuvering exercises would be prohibited in maritime buffer zones in the eastern and western waters. The Seoul ministry said the DPRK side officially expressed its willingness to implement the military agreement during the general-grade military talks on Oct 26. The DPRK military was implementing the agreement given the recent closure of coastline artilleries in the western waters, according to the Seoul ministry. Stopping all hostile acts would become an effective action to defuse military tensions and build trust between the two Koreas, and become a meaningful step toward the denuclearization of the Korean Peninsula and the settlement of lasting peace, the ministry added. ^ top ^

Sexual abuse by senior North Korean officials is 'an open, unaddressed and widely tolerated secret', rights watchdog says (SCMP)
2018-11-01
North Korean police and other officials prey on women with near-total impunity, a rights group said on Thursday, in a rare report on sex abuse in the isolated nation. US-based Human Rights Watch drew on interviews with more than 50 North Korean escapees to chronicle gruesome details of rape and other abuses perpetrated by security officers such as border guards, but also civilian officials. The nuclear-armed North, which is accused of widespread rights abuses by the United Nations and other critics, is a deeply hierarchical and patriarchal society where traditional values of deference to authority still hold sway. But the vast majority of both defectors and market traders in the North are female. Many women have more freedom of movement than men as they are not assigned a state job from which their absence will be noticed. North Korean women caught fleeing the country to China or who are repatriated from its neighbour face severe punishment including torture, imprisonment and sexual abuse, the report said. "Every night some woman would be forced to leave with a guard and be raped," said one abuse victim in her 30s who was once held at a border detention centre. "Every night a prison guard would open the cell. I stood still quietly, acting like I didn't notice, hoping it wouldn't be me." Park Young-hee, a farmer, was sent back to North Korea after she was caught by Chinese police, and during her interrogation she said the policeman "made me sit very close to him and touched me over my clothes and underneath. He also touched me between the legs and put his fingers inside of me several times during different days". She felt her life was in danger and her fate in the hands of the interrogator, and felt she had no choice but to answer his sometimes sexually explicit questions. Traders who smuggle goods across the border with China to sell at state-sanctioned private markets are forced to pay "bribes" including sexual favours, the report said. Perpetrators include managers at state-owned enterprises, and gatekeeper officials at the markets and on roads and checkpoints, such as "police, prosecutors, soldiers, and railroad inspectors on trains," it said. But the concept of rape is different in the North, it added, where it is seen as applying only if violence is used. One anonymous former textile trader in her 40s recounted being treated like a sex toy "at the mercy of men". "On the days they felt like it, market guards or police officials could ask me to follow them to an empty room outside the market, or some other place they'd pick," where they forced sexual encounters, she said. "It happens so often nobody thinks it is a big deal. We don't even realise when we are upset. But we are human, and we feel it. So sometimes, out of nowhere, you cry at night and don't know why." Some interviewees talked about rape victims in the North being expelled from university or beaten and abandoned by a husband for bringing shame to the school or their family. North Korea attempts to portray itself as a socialist paradise free of crime, and in a submission to the UN last year said only five people were convicted of rape in 2015 and seven in 2011. But the Human Right Watch report paints a different picture. Eight women who were former prisoners described experiencing "sexual, verbal, and physical abuse" at the hands of authorities. "After this report, North Korea can't say sexual violence doesn't exist, so they have to either change their tune or fix the problem," said Kenneth Roth, the executive director of Human Rights Watch. "Kim Jong-un could stop this, he could enforce the laws North Korea already has on the books." The issue is discussed so little in North Korea that researchers found that concepts such as domestic violence and sexual violence had no clear definition. The Korean language in the North relies on a host of euphemisms that often downplay the severity of the act. "Sexual violence in North Korea is an open, unaddressed, and widely tolerated secret," Roth said. "North Korean women would probably say 'Me Too' if they thought there was any way to obtain justice, but their voices are silenced in Kim Jong-un's dictatorship." Kim is the third generation of his family to rule the country, where state surveillance is widespread and dissent not tolerated. With the authorities imposing total control over the media the global #MeToo campaign against abuse of women has entirely passed North Korea by. Pyongyang maintains that it protects and promotes "genuine human rights", and says there is no justification for the West to try to set human rights standards for the rest of the world. It condemns international criticism on the issue as a smear campaign to undermine its "sacred socialist system". According to data submitted by Pyongyang to an UN panel on gender equality a total of five people were convicted of rape in the North in 2015. The HRW report quoted another victim – who also used a pseudonym – who said she had been raped by a police officer after being denied food for three days in a dark room at a border detention centre. Now that she lives in the South, she said: "I know it's sexual violence and rape." ^ top ^

 

Mongolia

DP faction announces its refusal to attend meetings of parliament and standing committees (Montsame)
2018-11-01
D.Erdenebat, head of the faction of Democratic Party in the parliament, announced today that MPs from DP would not attend plenary meetings of the parliament and meetings of standing committees until the Parliament and Government stop their illegal acts. He said, "The DP faction in the Parliament demands the Government's dissolution. The DP faction warns to take legal actions on MPs, who received loans for their private companies by ignoring justice and national interest, and the faction's members will not be present at the meetings until the misconducts are immediately corrected." ^ top ^

Proposal to consult on self-dissolution of the Parliament sent (SCMP)
2018-10-30
President of Mongolia Kh.Battulga handed over an official letter regarding "consultation" to Chairman of the State Great Khural M.Enkhbold on October 29. In the official letter, President Battulga condemns the Parliament and the Cabinets that were formed as a result of the 2016 General Elections over failures to fulfill their election promises and work in conformity with the law in exercising the State power. The official letter reads, "…The Members of Parliament, having fully surrendered to the ways of treating the budget with a pre-election attitude based on narrow interests, trifling with the national economy, and using their power and influence for personal gains, are completely exploiting the constitutional principle: "A member of the Parliament is an envoy of the people and represents and upholds the interests of all the citizens and the state." This has led to the loss of public support and trust in the highest organ of State power and further to the lack of guarantee that the forming of third and fourth Cabinets would result in national development and tangible outcome. The Constitution of Mongolia declares that the State power is vested in the people of Mongolia. In this solid case where the highest organ of State power, the members of which are elected by the citizens, has clearly lost the trust and support of the citizens, it is no longer in a position to carry out its mandate. The Section 2 of Article 22 of the Constitution of Mongolia states that "The Parliament may decide on its dissolution if not less than two thirds of its members consider that the Parliament is unable to carry out its mandate, or if the President, in consultation with the Chairman of the Parliament, proposes to do so for the same reason." The Section 11 of Article 12 of the Law of Mongolia on President states that "If it is considered that the Parliament is unable to carry out its mandate, the President shall officially notify to the Chairman of the Parliament on the proposal to consult on self-dissolution of the Parliament. The Chairman's disapproval of the proposal will not prevent the President from proceeding with his proposal in the Parliament." Therefore, I am hereby delivering a proposal to consult on self-dissolution of the Parliament." ^ top ^

 

LEW Mei Yi
Embassy of Switzerland
 

The Press review is a random selection of political and social related news gathered from various media and news services located in the PRC, edited or translated by the Embassy of Switzerland in Beijing and distributed among Swiss Government Offices. The Embassy does not accept responsibility for accuracy of quotes or truthfulness of content. Additionally the contents of the selected news mustn't correspond to the opinion of the Embassy.
 
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