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SCHWEIZER
BOTSCHAFT IN BEIJING
EMBASSY OF SWITZERLAND IN BEIJING
AMBASSADE DE SUISSE EN CHINE |
Der wöchentliche
Presserückblick der Schweizer Botschaft in der VR China
The Weekly Press Review of the Swiss Embassy in the People's Republic
of China
La revue de presse hebdomadaire de l'Ambassade de Suisse en RP
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DPRK
Mongolia
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| Foreign Policy |
China's deal with Vatican faces key test with appointment of first bishop under new arrangement (SCMP)
2019-03-29
China's controversial deal with the Vatican may soon face a key test with the nomination of a new bishop, sources have said. The South China Morning Post has learnt that the diocese of Wumeng – traditionally known as the Jining – in Inner Mongolia is finalising the process of selecting candidates to be vetted by Pope Francis. The highly anticipated selection will be the first time the groundbreaking accord signed between Beijing and the Holy See on appointing bishops has been put to the test. For decades the Catholic Church in China has been split between an official, government-controlled church whose bishops are selected by the state, and an underground church, loyal to the Vatican, which maintained its traditional prerogative of appointing bishops. Father Yao Shun, the current administrator of the diocese, is tipped as a likely candidate for the post, which became vacant on the death of the former bishop John Liu Shigong at the age of 90 in 2017. A source said: "Yao shouldn't be a problem because he enjoys a very good reputation. Not only with the government, he is also well-liked by local open and underground Catholic communities. "He taught liturgy in the [state-sponsored] National Seminary of the Catholic Church in China and was being groomed as a future successor when he was transferred back to the Jining diocese." The source continued "he is favoured by both sides so his consecration is only a matter of course", and said that the final procedures had been pushed back in light of the national parliamentary sessions at the start of the month. Clergymen in the Wumeng diocese could not be reached for comment and another source with access to Yao said he did not wish to be contacted "during a sensitive period". It is understood that the Holy See has yet to receive any diocesan nominees from Beijing's Sino-Vatican negotiation team, which is made up of officials from the Ministry of Foreign Affairs, United Front Work Department and State Administration for Religious Affairs. Filling vacant sees is a priority after the signing of the provisional agreement as nearly half of mainland China's 97 dioceses are currently without a bishop. A Hong Kong-based analyst said senior clergy in a number of dioceses, including those in Henan and Shaanxi provinces, have started jockeying for position. "Some began pushing local authorities to take the initiative in kick starting the official process for selecting candidates. "Some ambitious ones have also begun setting aside possible competitors … you will not find any confirmation unless the local governments instruct them to inform the public," said the analyst. Although the content of the agreement remains confidential, experts on the matter expect China will submit a list of two or three candidates to the Vatican – with the party's preference at the top of the list – to be vetted by the pontiff. "This contrasts with Vatican's agreement with Vietnam, where the Holy See will propose three bishop candidates for Hanoi to pick a final candidate," said the Hong Kong-based analyst. Wang Meixiu, a researcher at the Chinese Academy of Social Sciences, an official think tank said a diocese would have to set up an election and consecration working group in order to kick start the process. "A quarter of the two-year duration for the provisional agreement has already passed. I am very much looking forward to seeing how this would work in reality," Wang said. "The election of bishops has to go through layers after layers of administrative approvals. This goes from dioceses to patriotic Catholic associations, bishop conferences and religious affairs authorities at city, provincial and national levels," she said. The Sino-Vatican provisional agreement was signed last September, officially bringing to an end the appointment of bishops without the Vatican's approval. Under the terms of the deal, China recognised the Pope for the first time as the head of the Catholic Church worldwide while Francis was reconciled with seven Chinese bishops who had been excommunicated for accepting state appointments. The deal has since faced extensive criticism, with the Pope being accused of "selling out" underground Catholics who had endured years of persecution, with some leading figures serving lengthy jail terms for staying loyal to the Vatican. China, meanwhile, has been attacked for intensifying its persecution of religious groups as part of its push to "Sinicise" religion. ^ top ^
'A pleasure to see you again' but much work to do: US-China trade talks resume in Beijing (SCMP)
2019-03-29
China and the United States resumed talks in Beijing on Friday, giving their high-stakes trade negotiations another push to try to end their months-long trade war. Chinese Vice-Premier Liu He met US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin at the Diaoyutai State Guesthouse in the Chinese capital, after the two sides kick-started the talks over a working dinner on Thursday in a clear effort to speed up negotiations. "It's a pleasure to see you again," Mnuchin told Liu as they exchanged pleasantries at the guesthouse before the meeting. As the US delegation left their hotel earlier in the day, Mnuchin told reporters that they had a "very productive" working dinner on Thursday evening. A full day of intense negotiations has been scheduled on Friday to cover as much ground as possible. Issues identified included the protection of intellectual property rights, government subsidies for state-owned enterprises, trade barriers, market access and the US' trade deficit with China. White House economic adviser Larry Kudlow said on Thursday that the Trump administration was prepared to stretch the talks for "months" and Washington was in no rush to resolve the problems. "This is not time-dependent," Kudlow in a speech in Washington. "This is policy and enforcement-dependent … If it takes a few more weeks, or if it takes months, so be it. We have to get a great deal, as the president says, that works for the United States. That's our principal interest." Kudlow added that Washington had proposed including in the pact a provision for regular meetings to assess China's implementation of any reforms agreed – including improving treatment of US intellectual property and opening up market access. "We are getting close, but we are not there yet," Kudlow said, adding that Washington also wished to be able to impose tariffs on China with no threat of retaliation if Beijing failed to deliver on its promises. On Thursday, China's commerce ministry spokesman Gao Feng expressed caution about the progress of the talks. "Although some progress has been made during the telephone negotiations between Vice-Premier Liu He and his US counterparts, there is still lots of work to do," he said. Liu, China's top trade negotiator, is expected to visit Washington next week, but any final deal to end the trade war, which has rattled the global economy since last July, must be agreed at a proposed summit between President Xi Jinping and US counterpart Donald Trump. ^ top ^
China's island-building and 'Belt and Road Initiative' are part of same defence strategy, says US Secretary of State Mike Pompeo (SCMP)
2019-03-29
US Secretary of State Mike Pompeo warned on Thursday that China's island-building in the South China Sea and its sprawling international transport and trade initiative are both part of a broad national defence strategy, stepping up his rhetoric after Italy endorsed Beijing's infrastructure plan. The infrastructure that Beijing is building in the South China Sea "is not because they want freedom of navigation", Pompeo said during a discussion in Washington with National Review editor Rich Lowry. "Their efforts to build ports around the world are not because they want to be good shipbuilders and stewards of the waterways, but rather they have a state national security element to each and every one of them. "The 'Belt and Road Initiative' is no different," he said, referring to Chinese President Xi Jinping's flagship investment programme that was launched in 2013 and aims to build infrastructure in 80 countries. Pompeo's comments draw a closer connection between two issues that have caused concern for the United States and its strategic allies. The US' navy and air force have increased warship and aircraft patrols in the South China Sea to ensure a "free and open" Indo-Pacific, while France has been conducting naval operations through the area since 2014. Meanwhile, China's belt and road strategy has made inroads in the European Union, causing division within the trading bloc and with the US. On Wednesday, Pompeo had voiced "disappointment" over Italy's decision to sign a "non-binding" protocol with Xi, which made it the first nation among the Group of Seven economies to become part of the Chinese project. "It's disappointing any time any country begins to engage in behaviour and commercial interactions with China that aren't straight-up," Pompeo told the House of Representatives' foreign affairs committee on Wednesday in response to a question about the Italian decision. The value of goods transiting the South China Sea is about US$3 trillion a year – a third of global trade. China claims it has sovereignty over the waters, but that is contested by its neighbours, including the Philippines, Vietnam, Malaysia and Brunei. The countries named in China's belt and road plans account for 68 per cent of the world's population and 36 per cent of its gross domestic product. Merchandise trade between China and the countries targeted by the initiative is predicted to grow by US$117 billion this year, according to a recent analysis by trade credit insurer Euler Hermes. In Thursday's discussion, part of the National Review Institute's Ideas Summit 2019, Pompeo repeated his warning that belt and road projects are "debt traps" that undermine the sovereignty of nations that agree to Beijing's terms. "We are working diligently to make sure everyone in the world understands that threat," Pompeo said. "I think the world is waking up to this, and I think Asia and Southeast Asia in particular is waking up to this threat." ^ top ^
Country 'will not relax' waste import ban (China Daily)
2019-03-29
China will not relax its ban on imports of foreign waste after seeing a rapid decline last year, a senior official said on Thursday. After the State Council created an action plan in July 2017 to ban imports of solid waste into China, volume declined by 46.5 percent year-on-year to 226.3 million metric tons last year, according to the Ministry of Ecology and Environment. Referring to the ban as a "landmark measure" on the country's path of ecological progress, Qiu Qiwen, head of the ministry's solid waste and chemical management department, said the ministry will continue its efforts to sharply bring down imports, both in volume and variety, and do all it can to meet a target of zero imports by 2020. He said the country's ban on waste imports is like "an arrow that has left the bow", and there's no way to recall it. "China will not relax the ban, but will carry it forward," he said, responding to some media reports that China may ease up on foreign trash. Unlike common raw materials, solid waste usually contains polluting elements－even hazardous substances－that damage the environment and people's health, Qiu said. He rejected the view of some foreign companies and industry associations that China's ban doesn't distinguish between resources and waste. "Raw materials generated from harmless processing of solid waste will not be classified as solid waste if they meet China's national quality standard and don't pose risks to public health or ecological safety," he said, adding that such materials can be traded as general goods and their import will not be affected by the ban. China started to import solid waste in the 1980s, when the waste was considered a source of raw materials. Despite its relatively weak capacity for waste treatment, China has for years been the world's largest importer of solid waste. Some companies have also illegally brought foreign trash into the country for profit. Against a backdrop of rising public awareness about environmental protection and people's anxiety about pollution, the central government published an action plan in July 2017 to ban waste imports. But it included an exception for waste containing certain resources if no domestic alternative is available. ^ top ^
Unity, reality and reciprocity: Europe brings down the barriers for Xi Jinping in Paris (SCMP)
2019-03-28
Chinese President Xi Jinping's week-long Europe tour ended on a surprisingly positive note in Paris on Tuesday, with a rare show of unity between Beijing and Brussels despite a gathering storm in China-EU relations and pressure from the United States. The trip, which also included stops in Italy and Monaco, was originally scheduled as part of a longer visit that would have culminated in Xi's second summit with US President Donald Trump in Florida. But the Mar-a-Lago leg was cut as Chinese and American negotiators failed to iron out an agreement to end their months-long tariff war. French President Emmanuel Macron, German Chancellor Angela Merkel and European Commission chief Jean-Claude Juncker jointly embarked on a charm offensive towards the Chinese leader on the final day of his visit. Instead of focusing on grievances about Beijing's unfair trade practices, unfulfilled promises of reform and oppressive domestic policies, the European leaders struck a conciliatory tone and made a joint effort to call for a more balanced, reciprocal relations with China. They even praised Beijing's "Belt and Road Initiative", an infrastructure drive at the centre of Western countries' wariness of China's global ambitions, and chose global governance, one of Xi's favourite topics, for the Tuesday summit at the Elysee Palace. The unprecedented gathering, which Macron described as an effort to "establish a common definition for a new international order", was supposed to deal with "challenges of multilateralism", a veiled rebuke to Trump's protectionist policies and his unilateral vision of the world. European leaders are keen to present a united front on China, but just like Xi they knew only too well that worsening relations with the US meant neither side could afford a showdown, observers said. Their joint appearance and repeated appeals for a win-win relationship with Beijing were a well-orchestrated response to Xi's weekend success in persuading Rome to be the first Group of 7 country to endorse the belt and road. Nicola Casarini, a senior fellow for Asia at the Institute of International Affairs in Rome, said it was the first time France, Germany and the European Commission had spoken with one voice on China. "Macron wants to show that there is European unity – at least between Europe's two leading nations and the commission – on how to deal with China," Casarini said. "His message was to Italy, which signed the memorandum of understanding on the initiative without consultation with the EU." It was also intended for the 16 central and eastern European countries, including 11 EU member states, accused of helping China divide the EU by signing up for the belt and road, Casarini added. Although EU leaders expressed interest in Xi's initiative, also known as the "New Silk Road", they stressed the need for "reciprocity", something Beijing has been reluctant to touch on. "We, as Europeans, want to play an active part" in the belt and road project, Merkel said after the talks. "That must lead to reciprocity, and we're having a bit of trouble in finding it." Juncker, who will host an EU-China summit in Brussels on April 9, was also blunt. "European companies will need to find the same level of openness when it comes to their access to China's internal market as the one Chinese companies find in Europe: a level of total openness," he said. Chinese state news agency Xinhua did not refer to the remarks by Merkel and Junker. "The statements during the meetings were more of a courteous expression, and were not very substantive," said Oliver Rui, from the China Europe International Business School in Shanghai. Analysts said European leaders had a difficult balancing act, caught between Trump's trade offensives and pressure to side with Washington in its geopolitical and technological rivalry with Beijing. Wang Yiwei, a European affairs expert at Beijing's Renmin University, said France and Germany were being deliberately ambiguous about the belt and road and Chinese telecommunications giant Huawei because of lacklustre economic conditions in Europe. Washington has demanded that European allies not use Huawei's technology, saying it creates a security risk by potentially letting Beijing snoop on sensitive communications. But Germany and France have not ruled out using the company's equipment in their next-generation telecommunications networks. "France and other European nations may be bitter about China's growing influence in Europe and have to echo Washington's concerns on the Belt and Road Initiative due to their obsession of 'political correctness', but they are also keen to attract Chinese investment to tackle domestic economic woes," Wang said. Germany, Europe's biggest economy, is stalling over weaker exports, trade tensions and China's economic slowdown, and the European Commission warned a month ago that France was vulnerable because of its high public debt, weak competitiveness and anti-establishment protests. Macron, a staunch EU supporter who styled himself as a pro-business reformer, has seen his popularity plummet over the protests, rising income equality and poor economic growth. "With Merkel stepping down [in 2021], Macron sees an opportunity to seek the EU leadership. But given his domestic headaches, he needs China more than ever," Wang said. Macron, who is critical of Italy's concession to China and leading an effort towards a united, tougher stand on Beijing, avoided any public discussion during Xi's visit of contentious issues from Huawei to Beijing's mass detainment of hundreds of thousands of Uygur Muslims in Xinjiang. "I don't believe in the efficiency of confrontational postures, but in a demanding spirit of cooperation," Macron said during talks with Xi on Monday. The EU's relations with the Trump administration have also hit a low point over the US president's punitive trade policies, his disdain of the transatlantic alliance as well as Washington's withdrawal from its global leadership role and the multilateral trading regime. Casarini said the EU was caught in the escalating rivalry between Beijing and Washington, and would side at times with the US, and other times with China. "EU-US coordination is evident in Europe's tougher stance on China adopted in the last weeks, as a result of increased transatlantic cooperation on China. EU-China cooperation is also evident on climate change and on the Iran nuclear deal – both China and the EU want to save the deal and are ready to challenge Trump on this issue," he said. At the same time, Xi saw an opportunity to forge closer ties with Macron, offering China's support for France to "play a leading role in the process of Europe's uniting for self-improvement" and asking France to exert a more positive influence on China-EU ties, according to Xinhua. "France is more independent from the US than most other European powers in terms of its industrial policy, security and geopolitical approach. Xi's remarks showed Beijing is willing to continue to invest in Macron, who has the potential to lead the EU and help China dispel growing anti-Chinese sentiment in the continent," Wang said. Chinese analysts also noted a lack of consistency from Paris on the belt and road since Macron's visit to China in January last year. "As long as Macron wants to adopt a transactional approach on flashpoint issues such as the belt and road, China would be happy to play along and strike deals with France," Wang said. Steve Tsang, director of the SOAS China Institute in London, said that despite Xi's repeated pledges of support for multilateralism and European integration, his chequebook diplomacy involving €42.5 billion (US$47.8 billion) in business deals in Italy and France revealed Beijing's real intentions. "While the EU wants to have good and mutually beneficial relations with China, it cannot fail to see that the biggest deal is Beijing's success in getting Italy to break rank with the founder states of the EU. Call it what you will and Beijing can say what it wants, this is what will be seen in the EU as reflecting the real intentions of Xi," he said. Thomas Eder, a research associate at the Mercator Institute for China Studies in Berlin, also said that for European leaders, further integration and unity were of primary importance. "It was really important to draw the line, publicly, when it comes to China respecting European unity. This is obviously still an ongoing process, but this was a step taken with that in mind – both that the three of them met with Xi together, and that these kinds of statements about European unity could be made with Xi sitting next to Macron." But Eder admitted that in the long run, EU powers would have to take a public stand on the belt and road. "Nothing has really changed when it comes to the interest in cooperating with China on connectivity, on infrastructure between the EU and China, and globally. What has changed over the years is that more scepticism has come in both on government and business sides regarding how much European companies can really profit when it is a [belt and road] project," Eder said. "It's become more clear to the European side that this is also about getting more prestige and influence for the Chinese government by having governments around the world endorse Xi Jinping's initiative and thus Chinese foreign policy." ^ top ^
China and Russia may conduct joint naval exercises in late April (Global Times)
2019-03-28
China and Russia will reportedly hold the joint Naval Interaction-2019 exercises right after a parade scheduled late April to celebrate the Chinese Navy's birthday, with Chinese experts expecting five to six Russian warships to participate. The People's Liberation Army (PLA) Navy and the Russian Navy will hold annual bilateral Naval Interaction exercises from late April to early May, according to a statement released by the Russian Defense Ministry, Russia's Sputnik news agency reported on Wednesday. However, the schedule has not been confirmed by the Chinese side, as Wu Qian, spokesperson of China's Ministry of National Defense said at a routine press conference on Thursday that navies of both countries will soon start a second round of talks over this year's joint naval exercises following a first round recently being held, and more information will be released in due time. Joint maneuvering, organization of communication, missile and artillery firing at sea and air targets and search and rescue support are listed as exercise subjects, the Sputnik report said. The report did not reveal the location of the drills, but analysts said it could be in Qingdao, East China's Shandong Province. China will conduct a multinational naval activity in Qingdao in celebration of the 70th anniversary of the establishment of the PLA Navy on April 23, and Beijing-based naval expert Li Jie told the Global Times that it is very possible the drills will be held right after the parade. Li expects five to six naval vessels to participate in the joint exercises, and at least two in the Chinese parade. The Naval Interaction-2018 exercises were originally scheduled to be held in Qingdao, as confirmed by Wu at a routine press conference in April 2018, but the exercises did not take place as planned. The annual Naval Interaction exercises were established in 2012. After the previous exercises in July 2017 in Russia, Chinese vessels joined a Russian parade in St. Petersburg. A rotation mechanism also indicates that the 2019 exercises would be held in China, analysts noted. Chinese military enthusiasts speculate the PLA Navy would possibly send an aircraft carrier and 10,000-ton class Type 055 destroyer for the parade, but no official information was released as of press time. ^ top ^
Reforms advance in line with WTO rules (China Daily)
2019-03-28
China has taken concrete steps in market-oriented reforms in line with WTO rules, said Zhou Xiaochuan, former governor of the People's Bank of China, the central bank, on Wednesday. Since China joined the WTO in 2001, the country has substantially cut government subsidies and tariffs, making the domestic pricing system more compliant with international standards, said Zhou, who is vice-chairman of the Boao Forum for Asia, which officially kicks off on Thursday. In the past, there were a lot of distortions in China's pricing system, so the government had to give subsidies to some enterprises, Zhou said. But such subsidies have been "basically already eliminated" as China's pricing system reforms deepened. Some subsidies remain in the electricity and natural gas sectors, Zhou said. "But not as many people argue that the Chinese government and banking system have systemic subsidies to support State-owned enterprises. That is no longer the situation." Zhou added that as China's market-oriented reforms take many years to complete, there are still some distortions in the Chinese market. "These kinds of distortions will gradually disappear," he said, adding that the Chinese government has a strong willingness to accelerate reforms. Zhou also called for strengthening China's communication with the world to remove misunderstandings about each other. It is important for China to face up to external criticisms, Zhou said. "Some of them, I think, are very useful for China to make stronger decisions to accelerate domestic reforms." Zhou also underscored the importance of accelerating reform of the WTO to facilitate fair global trade. He believes the issue will probably be further discussed in this year's G20 Summit, to be held in Osaka, Japan, in June, at which leaders from 19 countries and the European Union will gather to discuss key economic and financial topics. "There is a growing imbalance in global trade. We should sincerely stick to reforming the WTO," he said. Without a successful push of WTO reforms, some large countries may hinder the dispute settlement mechanism and other functions of the WTO, Zhou said. He also suggested having more backup plans with more compromises in case reforms are not "very successful", so as to maintain and support the free trade system and curb protectionism. Carlos Gutierrez, former United States secretary of commerce, said the function of the WTO dispute settlement mechanism should be further improved to better address rising disputes around world. Chong Quan, president of the China Society for World Trade Organization Studies, a nongovernmental research institute of WTO, said the most imperative part of WTO reform is to revitalize its dispute settlement mechanism. ^ top ^
A victory for Huawei as EU ignores US calls to ban it in 5G security blueprint, despite 'worry' about Chinese security law (SCMP)
2019-03-27
The European Commission has ignored US calls to ban Chinese tech supplier Huawei as it announced on Tuesday a series of cybersecurity recommendations for next-generation mobile networks, in a move which was hailed by the Chinese tech giant. Huawei said in a statement it welcomed the commission's "objective and proportionate" recommendations. In its guidance for the roll-out of ultra-fast fifth generation, or 5G, telecoms systems across the European Union in coming years, the commission urged member states to assess cyber threats to the 5G infrastructure in their national markets. That information should then be shared among EU countries as part of a coordinated effort to develop a "toolbox of mitigating measures" and minimum common standards for 5G network security by the end of the year, the EU's executive branch said. The proposals are a setback for the United States, which has been lobbying allies in Europe to boycott Huawei over fears its equipment could be used by China's communist leaders to carry out cyberespionage. The EU's digital commissioner, Andrus Ansip, acknowledged those concerns, saying they stem from Beijing's 2017 intelligence law that compels Chinese companies to assist in intelligence gathering. "I think we have to be worried about this," Ansip said at a press briefing in Strasbourg, France. However, commission officials signalled they prefer to secure Europe's critical digital infrastructure with a more nuanced approach, rather than bowing to US pressure for blanket bans. The privately owned Chinese company has repeatedly said there has never been evidence it was responsible for any security breaches. "Huawei welcomes the objective and proportionate approach of the European Commission's recommendation on 5G security," the firm said, in a statement by Abraham Liu, chief representative of Huawei to the EU. "Huawei understands the cybersecurity concerns that European regulators have. Based on mutual understanding, Huawei looks forward to contributing to the European framework on cybersecurity. "We are firmly committed to continuing working with all regulators and partners to make the 5G roll-out in Europe a success." Huawei still faces scrutiny under Brussels' plan. Security Commissioner Julian King said EU countries should identify and manage security risks, including by ensuring a diverse range of equipment makers and factoring in "legal and policy frameworks governing third-country suppliers." Countries would have the right to ban companies for national security reasons and could also agree on EU-wide measures to identify products or suppliers considered potentially unsecure, the commission said. Commission guidance is non-binding, but EU countries often use it as the basis for joint policies. 5G mobile networks promise superfast download speeds with little signal delay, advances that are expected to underpin a new wave of innovation, including connected cars, remote medicine and factory robots. Huawei is the world's biggest maker of telecoms infrastructure equipment such as radio base stations and network switches. Telecoms providers like its equipment because it's good quality and cheaper than Scandinavian rivals Nokia and Ericsson. The issue has taken on more urgency as EU countries prepare to auction off 5G frequencies to telecoms operators. The US warned Germany, which began its auction earlier this month, that allowing untrustworthy companies to supply equipment could jeopardise the sharing of sensitive information. ^ top ^
EU leaders hold out olive branch to Chinese 'rival' by saying they want active role in Belt and Road Initiative (SCMP)
2019-03-26
European and Chinese leaders sought to reassure each other over economic cooperation on Tuesday despite the increasing US move towards protectionism, as leading EU figures said they were still open to joining China's "Belt and Road Initiative". French President Emmanuel Macron, who is hosting his Chinese counterpart Xi Jinping on the final leg of his European tour, invited German Chancellor Angela Merkel and European Commission President Jean-Claude Juncker to the meeting in Paris, where the four stressed their support for multilateralism and the pursuit of "mutual trust". Xi said China was determined to protect the world's multilateral system, and was ready to continue with "opening up". He also invited European countries to join the belt and road scheme – which Washington has characterised as a Chinese "vanity project". The project has caused increased concern in the West about the extent to which it will help spread Chinese influence, especially since over the weekend Italy became the first G7 economy to join the project. But Merkel stressed it was an important project that Europeans still wanted to participate in. She continued: "We, as Europeans, want to play an active part and that must lead to a certain reciprocity, and we are still wrangling over that a bit. "We are seeing the project as a good visualisation of interaction, interrelation and interdependence." The visit took place amid growing European scepticism about China's influence and follows a decision by Brussels to brand China a "systemic rival" in a policy paper earlier this month. "We understand that China does not like the expression 'rivals', but it is a compliment describing our shared ambitions," Juncker told a press conference. The EU and China also share concerns about the growing US trend towards protectionism – as manifested in the ongoing trade war between Washington and Beijing. Xi also said China's process of opening up its economy to the world had allowed the country to achieve in the space of 40 years what the Europeans had managed over the course of the Industrial Revolution. "We will continue to open up," he said, "and to make the world a better open economy." He also tried to reassure his European counterparts by saying: "In today's China-EU relationship, cooperation is the defining feature even if there are differences or competition to some extent." "The Belt and Road Initiative has enriched the world's multilateral system; we invite all countries, including France, to join," Xi said. Xi's speech appeared to go off script at one point as he looked away from the printed text before him and began gesticulating as he spoke. "We are marching forward side by side and we should not become suspicious," he said. "We should not always be looking behind our backs. As we walk forward, [we should not] be standing sideways to guard against each other and wary that our partners will do something behind our backs. That is very important," he continued, pointing behind his back for emphasis. The US has also put increasing pressure on European countries to block the Chinese tech giant Huawei, which it sees as a security threat, from playing a role in European communications networks. Despite her support for Xi's stance on multilateralism, Merkel was still keen to express support for America's role in upholding global order. "The triangle between EU, China and US is very important. Without the US, we will not be able to have multilateralism. Our relations from the European side are obviously very important," Merkel said. However, she also noted that the trade war between the US and China was "hitting our German economy" and disturbing the balance. Macron said the four leaders had discussed "friendship" as well as "existing rivalries" between the EU and China and agreed to seek a "trust-based partnership". "Our common will is to avoid... new trade conflicts and isolationist policies," Macron said. Days before meeting Xi, Macron said on Friday at a news conference that "the period of European naivety is over," when commenting on Chinese investment in the continent. He also said that letting Chinese companies buy up EU infrastructure such as ports had been a "strategic error". But Nicola Casarini, a senior fellow for Asia at the Institute of International Affairs in Rome, said he believed the positive note on the EU leaders tried to strike on Belt and Road was more than just politeness. "Merkel and Junker's positive tone on the Belt and Road Initiative is sincere, and the EU wants to collaborate with Beijing," he said. Casarini also argued that many in Europe were "in favour of closer ties with China in a situation characterised by US unilateralism and coldness in transatlantic relations". "The problem for the EU is not China, but individual members joining or embracing the project without prior consultation with Brussels," he said. "[European powers] are waiting to see whether there will be changes in the way China will develop the BRI in the future – ie whether Western norms and principles will be taken on board," he said. Casarini added that Macron had helped the EU achieve a more unified stance on China by getting France, Germany and the European Commission to speak with one voice. François Godement, senior adviser for Asia at the Institut Montaigne in Paris, said Juncker's comments that branding China as a rival was a "compliment" was a way of saying that China's behaviour towards Europe "has now got our attention", but the bloc wants action rather than words when it comes to delivering on its pledges. "France is making strengthening the European negotiators' hands its first priority – however, that does not exclude compromises." ^ top ^
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Wife of Meng Hongwei, missing ex-Interpol chief, slams 'political nature' of his arrest in China and rejects corruption claims (SCMP)
2019-03-29
The wife of Meng Hongwei, the missing Chinese former head of Interpol, on Thursday dismissed allegations by authorities in China accusing her husband of graft and said his arrest was politically motivated. China will prosecute former Interpol chief Meng for graft after an investigation found he spent "lavish" amounts of state funds, abused his power and refused to follow Communist Party decisions, Beijing's anti-corruption watchdog said in a statement on Wednesday. "The press release openly reveals the political nature of Mr Meng's case, without addressing the issues concerning our family's fundamental human rights," Grace Meng said in a statement issued by her lawyers. Interpol, the global police coordination agency based in France, said last October that Meng Hongwei had resigned as its president, days after his wife reported him missing while he was on a trip to China. The Communist Party's Central Commission for Discipline Inspection (CCDI) said Meng was suspected of taking bribes and causing serious harm to the party's image and state interests, adding he should be severely dealt with. Grace Meng, who has remained in Lyon, France with the couple's two children, said China had failed to provide any information about Meng's whereabouts or well-being. "Instead, the CCDI made vague, general, uncorroborated statements," she said. "Chinese authorities have not formulated actual charges or adduced the alleged supporting evidence." The CCDI issued its statement after Chinese President Xi Jinping returned from a state visit to France, where President Emmanuel Macron raised the issue of human rights in China and certain specific cases, a French presidency official said. Grace Meng, who applied for asylum in France in January, had written to Macron ahead of Xi's trip, seeking his help. A source close to the investigation said Beijing had not asked for her extradition and her asylum request was still under consideration. The Chinese anti-graft body said Meng Hongwei had "refused to enact decisions of the party centre" and abused his power for private gain. He "wantonly and lavishly spent state funds to satisfy his family's luxurious lifestyle", it said. In her statement, Grace said her husband was well-known in China for his reformist views and had in March 2017 tendered his resignation to the Central Committee of the Communist Party of China. Meng, 65, was appointed president of Interpol in late 2016, part of a broader Chinese effort to gain leadership positions in key international organizations. Under Xi, China has been engaged in a sweeping crackdown on official corruption. ^ top ^
Top court moves to improve business environment by clarifying rule of law (China Daily)
2019-03-29
The Supreme People's Court issued two judicial guidelines on Thursday to streamline procedures for lawsuits and bankruptcies. The guidelines are meant to foster a favorable business environment and serve the country's high-quality development through the rule of law, according to the top court. Under the new guidelines, the hearing of a civil or commercial lawsuit must be completed within six months. A trial can be postponed twice, at most, under special circumstances - for example, an unavoidable delay. The detailed guidelines are meant to help minimize economic losses for the companies involved in lawsuits, the court said. The new documents also clarify bankruptcy issues, such as how a company should pay off its debts when a bankruptcy case is filed. This will help courts nationwide efficiently handle the rapid increase in bankruptcy and civil cases and to create a favorable legal environment for the nation's reform, development and stability, said Liu Guixiang, a member of the top court's judicial committee. Last year, courts nationwide accepted 18,823 bankruptcy and liquidation cases, up by 97.3 percent year-on-year. Of those, 11,669 cases were concluded, the court said. As of the end of last year, 98 panels for hearing bankruptcy-related lawsuits had been established across the country, while three special bankruptcy courts were opened at the beginning of this year - in Beijing, Shanghai and Shenzhen, Guangdong province. "By improving judicial efficiency, companies heavily in debt can be cleared from the market as quickly as possible, and those that still have value in the market can be rebuilt more quickly," Liu said. Guan Li, deputy chief judge of the top court's No 2 Civil Tribunal, said big data and information platforms will be adopted to speed up the handling of bankruptcy cases. In the past year, the top court has taken a series of steps to offer better judicial services to litigants in civil and commercial cases, such as those related to property rights and financial disputes. Courts nationwide heard 839,000 financial cases in 2018 and set up the country's first court specialized in solving financial disputes in Shanghai. Liu said judicial interpretations of finance-related litigation are also under consideration, including insider trading and market manipulation. ^ top ^
China boosts measures to open economy (China Daily)
2019-03-29
China will further open up to foreign investors and offer them treatment equal to that of domestic companies with firm protection of their legitimate rights, Premier Li Keqiang said at the Boao Forum for Asia on Thursday. The country will fully adopt pre-entry national treatment and negative lists for overseas investment, Li said at the opening ceremony of the forum's annual conference in Hainan province. By the end of June, China will release the amended negative lists for foreign investment access, he said. "The negative lists will only be shortened. … We will ensure fair competition and common development for Chinese and foreign companies with fair supervision," Li told more than 2,000 participants. A negative list shows areas where investment is prohibited; all other areas are presumed to be open. The government has started formulating matching regulations and rules to support implementation of the Foreign Investment Law, adopted two weeks ago, Li said, adding that supporting regulations will take effect along with the law on Jan 1. The draft amendment to the patent law has been submitted to China's top legislators. It sharply increases compensation for infringement to a cost that violators will not be able to afford, he said. Forced technology transfers are prohibited and violators will receive harsh penalties, Li said. The complaint mechanism for foreign-invested companies will be perfected to improve exchanges and coordination between the government and investors, making it an effective way to protect the legal rights of foreign companies, he said. China will not resort to massive economic stimulus to boost growth, but will continue to open up and innovate to energize market players, Li said. The country will further open up its financial sector and accelerate the process to fully lower the market access threshold for foreign investments in banking, securities and insurance, the premier said. Service sectors, including medical care and education, will be opened up along with transportation, infrastructure and energy, he said. Li said China will further make it easier for foreign companies to set up a venture capital presence and will improve regulations on foreign investors' strategic investments in listed companies and their mergers with and acquisitions of domestic enterprises. Also, preferential policies for investments from Hong Kong, Macao and Taiwan will remain unchanged, and greater development opportunities will be offered for them, Li said. Wang Huiyao, president of the Center for China and Globalization, said he was impressed by Li's speech to clean up rules and regulations inconsistent with the Foreign Investment Law as well as to launch a more streamlined negative list. "It shows China's attitude of further opening-up, which is a higher-level and more concrete commitment of China," he said. Leif Johansson, chairman of global biopharmaceutical giant AstraZeneca, said Li's speech reflects the determination to create a more open, fair and transparent investment environment. "Such an optimized market as well as a positive and dynamic investment climate will inspire us to expand our footprint in China and promote more cooperation with domestic firms to realize mutual development," he said. ^ top ^
In Boao, China adds certainty to global prosperity (Xinhua)
2019-03-28
At a time when trade protectionism rises and pressure on the global economy mounts, the world is in dire need to find a way to achieve sustainable development. At the ongoing Boao Forum for Asia (BFA) annual conference, China has voiced its answer loud and clear. "The world should work together to seize opportunities, embrace challenges, seek win-win results in cooperation and inject confidence to the world economy with an open mind, inclusiveness and coordinated action," Chinese Premier Li Keqiang said Thursday at the opening plenary of the BFA in China's southern island province of Hainan. By further opening its economy, promoting multilateral initiatives and advancing structural reforms, China is offering its solution to increase certainties for the world. Attendees of the BFA know one thing for sure: China will open its economy wider to the world. On Thursday, Li announced a new set of measures to further open up the economy, offering reassurance to global investors trying to tap into the country's gigantic market. China will further relax controls on market access and shorten the negative list for foreign investment this year, he said. The country has also started to formulate matching regulations and rules to support the implementation of the newly-adopted foreign investment law, Li said. "It is a very encouraging sign for investors in general. For us, it's an additional confirmation that we can continue with our plans," said Robert Aspell, president of Asia Pacific for Cargill, a U.S.-based agriculture and food company. Following the company's additional investments last year in northeast China's Jilin Province, the company is looking at more investment opportunities in the value-added oil field, as more Chinese are living healthier lifestyles and crave different kinds of oil, Aspell told Xinhua on the sidelines of the BFA. "We are in China for the long term," he said. Economists and entrepreneurs at the BFA agreed that openness and cooperation are the keys to address the so-called "black swan" events, or incidents that are rare but could cause catastrophic ramifications. "There's an old Chinese saying that we should cope with shifting events by sticking to a fundamental principle," said Zhang Yuyan, an economist with the Chinese Academy of Social Sciences. "The fundamental principle here is that the world should always work together to counter the uncertainties," Zhang said. During a heated discussion at the BFA titled "Global Economic Outlook 2019: Certainties and Uncertainties," panelists saw the Belt and Road Initiative (BRI) proposed by China as an effective way to deal with the uncertainties that the world faces. Michele Geraci, undersecretary of state of the Italian Ministry of Economic Development, said the signing of a memorandum of understanding (MoU) with China on the BRI will bring win-win results in areas including infrastructure, especially for water transport projects. Geraci said that he expects other countries to follow Italy to join the initiative and sign the MoU. "We will do more business with China and lead other European countries to see the benefits," Geraci said. Initiatives such as the Belt and Road not only bring Chinese firms more opportunities to expand overseas but add to the chance for the global community to achieve common prosperity, participants at the BFA said. China and other countries should push forward regional integration, build a more dynamic Asian market and better align the BRI with development strategies of all countries, Premier Li said at the opening plenary. Hiria Ottino, president of the Pacific-China Friendship Association, said the BRI has offered a new perspective on how the international community could work together. "In the past, we didn't want to share our knowledge or experiences because we feared losing out. Now we are looking at each other not as competitors but as partners. This is the most important thing about the BRI," he said. At the international conference center of the BFA, two photos showing the sharp contrast of farming in central China's Henan Province have drawn the attention of the participants. In one picture, farmers were plowing a field with two cattle in 1957. In another photo taken last year, several harvesting machines were reaping wheat in a similar field. Technological innovation in the past decades has fostered world economic growth, and it will continue to be the key driving force for global prosperity, analysts said. China has been intensifying its efforts to restructure the economy, with incentives introduced to encourage entrepreneurship and innovation. On Thursday, Premier Li urged all countries to strengthen cooperation in innovation and create an open, fair, transparent and predictable business environment, which will facilitate the sharing of innovation resources and achievements. For Aspell, China's commitment to better protect intellectual property helps companies like Cargill tap into the innovation that is thriving in the country. "There are a lot of young people in China sitting in their apartments coming up with very interesting things," Aspell said, adding that the company is particularly interested in digitalization. In a world that abounds with uncertainties, fostering innovation is one certain thing that countries should resort to for achieving sustainable growth, said Zhang Tao, deputy managing director of the International Monetary Fund (IMF). "Innovation can provide a variety of new technologies which provide opportunities for higher productivity," he said. Hans-Paul Burkner, chairman of the Boston Consulting Group, believed there are more certainties than uncertainties in the future. "The future requires more effort, more restructuring, more reform and more change," said Burkner. "The key is to see that the future is in our hands. It does not just happen. We make it happen," he said. ^ top ^
Top political advisor stresses investigation, research (Xinhua)
2019-03-28
China's top political advisor Wang Yang on Thursday called for more investigation and research to improve the political consultation work. Wang, chairman of the Chinese People's Political Consultative Conference (CPPCC) National Committee, made the remarks when presiding over the 19th chairman and vice-chairpersons' meeting of the 13th CPPCC National Committee. Wang, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, said the methods used in investigation and research should be continuously improved, demanding improved quality and practical results. A report on investigation and research by local CPPCC committees was delivered at the meeting. Wang also underlined the importance of the work concerning proposals, calling for good ideas and suggestions for the reference of Party and governmental departments in decision making. Noting that this year marks the 70th founding anniversary of both the People's Republic of China and the CPPCC, Wang demanded efforts to further improve theoretical study, enhance consultation quality and help build consensus. ^ top ^
WeChat users accuse app of tracking conversations for advertising purposes (Global Times)
2019-03-28
Tencent's social media platform WeChat is in hot water after users found precisely placed advertisements on their accounts, accusing the app of spying on them for advertisers. Such accusations came in a wave after a Southern Metropolis Daily report that two newly registered WeChat accounts, received advertisements for tours to Japan and Japanese cosmetics after they exchanged chats about holidays to Hokkaido, Japan. Many netizens shared their experience of receiving such precisely placed advertisements and accused WeChat of abusing users' private conversations. "The app has never surveilled users' conversations for advertising purposes," a Tencent spokesperson told the Global Times on condition of anonymity on Thursday. "As we have always promised, users have a right to their privacy." He explained that advertisers select a large number of users for their target group, which means some people in the group will find advertisements that match their chat and search history merely "by coincidence." Zhao, a 26-year-old Beijing resident, was not convinced by WeChat's explanation. "I discussed the safety of Audi's interior materials and received the brand's advertisement in my WeChat moments the following day," Zhao told the Global Times. While she usually receives promotions for cosmetics and fashion brands, Zhao wondered "why the car advertisement appeared immediately after I chatted with my parents" about cars. "The targeting is not difficult in terms of technology, but as far as I know it's not likely that WeChat is surveilling users to place advertisements," an internet industry insider surnamed Yang, who worked as an advertisement platform developer, told the Global Times. The car advertisement could be sent after the user shared a relevant news article to WeChat friends, Yang said. A news portal may have detected that a user has read an article about a car brand and then sold the information to advertising platforms. After collecting a huge amount of data, the platform would then place advertisements on a variety of apps installed on targeted groups' devices, said Yang. Several Chinese food-delivery apps were also reported to eavesdrop on users' real-time conversations and then recommending restaurants accordingly.. ^ top ^
Chinese ex-Interpol president Meng Hongwei expelled from Communist Party (SCMP)
2019-03-27
The former Chinese president of Interpol, Meng Hongwei, has been expelled from the Communist Party of China and stripped of all his positions for serious violation of the law and discipline, the party watchdog said on Wednesday. The Central Commission for Discipline Inspection (CCDI) said the Central Committee of the Communist Party had also approved an investigation into Meng, 65, who was a member of the committee and vice-minister for public security. The CCDI accused Meng of abusing his position and power for personal gain, squandering state funds to finance his family's extravagant lifestyle, and disregarding the principles of being a party member. In a rare gesture, the statement also accused Meng of encouraging his wife to use his status to further her own interests. Any assets acquired as a result of Meng's alleged illegal activities would be handed over to prosecutors in accordance with the law, the watchdog said. Once a rising political star, Meng made his way up the ranks of China's public security apparatus to become head of the Chinese branch of Interpol in 2004, and the nation's first president of the global organisation in 2016. His subsequent downfall was seen as the final stage of Chinese President Xi Jinping's sweeping clean-up of the top leadership of the public security ministry, which controls the nation's 2 million strong police force. The dramatic events surrounding Meng's disappearance in September also provided evidence of Beijing prioritising its domestic agenda over the need to present itself as a capable and appropriate leader of an international organisation like Interpol. Deng Yuwen, an independent political analyst based in the United States, said the way in which the incident was handled could affect how China is perceived by the global policing body, but was unlikely to have a long-term impact in other areas. "Meng's case may affect other Chinese officials' chances of leading Interpol for a while as it was really an embarrassment," he said. "But the wider impact on China's role in international organisations will be limited as there are only a few Chinese officials in senior positions, such as at the World Health Organisation." If they ever became embroiled in a corruption scandal Beijing would handle the cases very differently, Deng said. Meng was last heard from on September 25 after leaving his home in the French city of Lyon bound for China. He sent his wife, Grace Meng, a message on social media telling her to "wait for my call", along with a knife emoji suggesting he was in some kind of danger. Grace Meng reported her husband missing to the French authorities on October 4 and was later put under police protection after receiving threatening messages over the telephone and online. Earlier this year she applied for asylum in France. On October 6, Interpol issued a request to the Chinese government for information on Meng's whereabouts and the CCDI replied the next day saying he had been detained in connection with an investigation into alleged corruption. Agence France-Presse reported that Grace Meng, who has not spoken to her husband since he went missing, asked French President Emmanuel Macron to discuss the matter with Chinese President Xi Jinping during his recent European tour. In a letter to the Elysee Palace dated March 21, she "asks to know where and how he is", the report said. Despite her request, there have been no reports that Xi and Macron discussed the matter. ^ top ^
Tsinghua University suspends Xu Zhangrun, Chinese law professor who criticised Xi Jinping (SCMP)
2019-03-27
A liberal law professor at Tsinghua University who openly criticised Chinese President Xi Jinping has been suspended and placed under investigation by the university, according to one of his colleagues and several academics familiar with the situation. Xu Zhangrun, 56, was suspended this month after he wrote several articles criticising Beijing over political and social issues, his colleague Guo Yuhua, a sociology professor at the university, told the South China Morning Post. In one opinion piece last year, Xu questioned the personality cult surrounding Xi and the decision by the National People's Congress to scrap the term limit on the Chinese presidency. The article, and others written by Xu critical of the president, were widely circulated online. Guo said she had spoken to Xu since he received the notice from the university telling him he had been suspended. "They spoke to him in person [as well] but I'm not sure if they actually told him the real reason" why he was suspended, Guo said. Xu was told he would be suspended from all teaching and research activities while the university conducted an official investigation, according to Guo. He would not be allowed to take on new students during the suspension period. Tsinghua University did not respond to inquiries from the Post. Phone calls and messages sent to Xu went unanswered. Friends and colleagues of Xu have called on the university to explain why the outspoken professor has been suspended. Well-known writer Zhang Yihe was one of the first intellectuals to speak out in support of Xu, posting comments on social network WeChat on Sunday questioning Tsinghua's decision. Zhang said she did this "not because of politics or conscience" but for friendship. "I know him well. I of course must do something now that he is in difficulty – this is our tradition and morality," she said. "Hence I want to ask the question: why has Tsinghua banned him from giving classes?" Guo suggested that Xu had been penalised because of his critical articles. "Maybe they didn't like what he wrote, and they thought what he wrote was wrong," Guo said. "But it's against the law and an unreasonable thing to do." Zhang Qianfan, a law professor at Peking University, also expressed support for Xu. "Professor Xu was penalised by Tsinghua not because he said something radical or inappropriate, but because he made some just and honest comments that others dared not make – because free speech is in a difficult situation" in China, Zhang said. He added that Tsinghua should treat its academics properly instead of punishing them for expressing their opinions. "Tsinghua should be proud to have a scholar like Xu, but instead it imposed this unbelievable punishment on him," he said. "This has happened because the university's leadership wants to save their own skin, and as a result the university will pay a price and its reputation will suffer." Zhang also called on members of the Tsinghua community and other Chinese legal professionals to stand up for Xu. "The power of thought is unstoppable," he said. "Not many people know who the president of Tsinghua University is, but many know the university has an academic named Xu Zhangrun." ^ top ^
Pollution containment stepped up at site of Yancheng chemical factory blast in China (SCMP)
2019-03-24
Pollution containment has been stepped up and rescue operations expanded in response to Thursday's deadly pesticide plant explosion in the city of Yancheng, Jiangsu province, with officials reporting leakage from chemical storage tanks on site. The blast killed at least 64 people and injured 604 others, according to the latest official figures, while another 28 people were still reported missing. Yancheng mayor Cao Lubao on Sunday said the scope of the rescue efforts after the blast at the Jiangsu Tianjiayi Chemical plant had broadened from 1.1 sq km to nearly 2 sq km. Cao said six rounds of search operations had been conducted in the first 72 hours after the explosion, which flattened the Tianjiayi plant and damaged neighbouring factories in the Chenjiagang Industrial Park. Most buildings in the park had been searched, but operations to rescue any remaining survivors continued in four factories. The industrial accident has sparked public fear and anger, as the owners and directors of the Tianjiayi plant had been fined and warned several times for violating safety regulations, according to investigators from the Ministry of Emergency Management. Executives of the plant have now been taken into police custody. There had been small explosions at the industrial park in Xiangshui county previously, including one that killed eight people soon after the park opened in 2007. At the time, a China Youth Daily reporter alleged the Yancheng government had sought to cover up the blast by locking up reporters or seeking to buy them off. Local residents told the South China Morning Post earlier that the industrial park was a " time bomb ", with many fearing long before that there would be a major accident. On Sunday, Cao said leaks from sulphuric acid and nitric acid storage tanks had been reported. A comprehensive investigation of chemical plants in the park had begun, with certain types of dangerous chemicals being transported to new sites to prevent secondary pollution, he said. Sewage disposal work had also been stepped up to prevent chemicals from polluting the river that flows through the city. Meanwhile, Minister of Ecology and Environment Li Ganjie called for waste disposal at the accident site to be dealt with as quickly as possible, according to the ministry. It said 30 experts were assisting with the clean-up effort. As of Sunday afternoon, more than 1,600 damaged homes had been repaired near the scene of the blast. Officials said remaining repairs to homes in the area would be fixed within a week, and residents whose homes could not be fixed would be eligible for compensation or they could apply to be relocated elsewhere. But Gu Zhiyou from Wangshang, just 1km from the industrial park, was not optimistic that all the broken doors and windows in the village, where hundreds of homes were damaged, could be fixed so soon. "It could take months or even a year," Gu said. "We only have two or three shops that do window repairs, and there are so many homes that need to be fixed. How much are they going to charge us? And who is going to pay for it? One window of mine cost more than 500 yuan [US$75] to fix." For now, Gu has covered his windows with pieces of roofing iron, in case it rains. Other households in the village are using plastic sheeting to make temporary covers for their windows. All schools in the area are expected to resume classes on Monday, after they were closed to monitor air and water quality. Dozens of workers were busy on Sunday rebuilding the Wangshang primary school, which only had two classrooms left standing after the blast. The Jiangsu Ecology and Environment Department earlier reported unsafe nitrogen oxide levels downwind from the explosion site, with all three rivers in the industrial park polluted with high levels of dichlorethane and dichloromethane. Local authorities were also taking action to prevent polluted water from flowing outside the park. Separately, police said a 21-year-old man had been arrested in Jiangsu, accused of spreading false information about the explosion online. ^ top ^
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Tibet marks 60th anniversary of democratic reform (Xinhua)
2019-03-29
Representatives from various ethnic groups and walks of life gathered in the Potala Palace square in Lhasa Thursday to celebrate the 60th anniversary of the campaign of democratic reform in Tibet. At 10 a.m., Losang Jamcan, director of the Standing Committee of the Tibet Autonomous Regional People's Congress, declared the opening of the celebration meeting in both Tibetan and Mandarin, which was followed by a solemn ceremony of raising the national flag and singing the national anthem. In March 1959, the Chinese central government dissolved the aristocratic local government of Tibet and freed more than 1 million serfs, making them the masters of the nation and society. Tibet has made historic achievements and undergone tremendous changes since the democratic reform that started 60 years ago, said Wu Yingjie, Communist Party of China (CPC) chief of the region, when addressing the meeting. The democratic reform completely obliterated the feudal serfdom of theocracy, changed the production relations of the old Tibet, smashed the shackles of feudal spirit and culture and freed local people from feudal political oppression. The democratic reform is a major historic event in Tibet's development and human rights advancement, Wu said. Over the past 60 years, Tibet's GDP has grown from 174 million yuan (25.9 million U.S. dollars) in 1959 to 147.76 billion yuan last year, marking an average annual increase of 9.5 percent, according to Wu. Decisive progress has been made in poverty alleviation. More than 70 percent of poverty-stricken counties and 80 percent of the poverty-stricken population have been lifted out of poverty, Wu noted. Furthermore, Tibet was the first region in China to provide free education for 15 years, and the illiteracy rate among young and middle-aged people has dropped to 0.52 percent. Medical insurance has covered the whole population in Tibet, and Tibetan people's life expectancy has increased from 35.5 to 68.2 years, Wu said. Penpa, a villager from Gurum Township in Tohlung Dechen District of Lhasa, attended the meeting as a grassroots representative. "My mum used to work for a lord. She had no shoes and not enough clothes to wear. Now, we are living in a house of 400 square meters. What a great change," he said. Penpa used to work in construction sites. Last year, he started to work as an administrator at an express delivery point of JD.com where he earns 4,500 yuan each month. "I feel that we lead a good life," he said. Jamyang Sherab, an officer of the People's Liberation Army (PLA), said at the meeting, "My family witnessed the democratic reform. As a descendant of the serfs in old Tibet, I became a PLA officer and was elected as a deputy to the National People's Congress and a member of the National Committee of the Chinese People's Political Consultative Conference successively." In Beijing, a forum was held on Thursday to commemorate the historic event in Tibet's history. You Quan, a member of the Secretariat of the CPC Central Committee and head of the United Front Work Department of the CPC Central Committee, hailed the democratic reform in Tibet at the forum as a major move that followed the tide of the times, a great achievement of the CPC in resolving the Tibet issue and a tremendous force propelling the economic and social development in Tibet. He called for greater efforts to comprehensively implement the CPC's policies for governing Tibet, strengthen the CPC's leadership over Tibet work, strive for the people's well-being, and realize enduring peace and stability and greater development in the region. Six kilometers to east of the Potala Palace in Lhasa, a memorial hall marking the emancipation of the serfs was opened to the public on Thursday. The memorial hall, with an exhibition area of 3,500 square meters, displays 165 historical documents, 299 items, 331 pictures and four large settings related to the democratic reform in the region, reflecting the darkness, backwardness and barbarity of the old Tibet, as well as the great changes that have taken place in the socialist new Tibet. In 2009, the regional legislature established March 28 as a day to commemorate the emancipation of the 1 million serfs, which represented 90 percent of the region's population at that time. On Thursday, various celebrations were held across Tibet. In Lhasa, over 1,500 people attended a gala at the Lhasa Public Cultural and Sports Center on Thursday evening to commemorate the democratic reform and the great changes that have taken place in Tibet in the following 60 years. "People in Tibet supported the democratic reform," Phutsering, who joined the PLA in 1959 and took part in the emancipation of serfs in Xigaze City, said at the gala. "From the peaceful liberation of Tibet in 1951 to the democratic reform in 1959, people in Tibet made their own decisions." A grand celebration, including raising the national flag, singing the national anthem and watching performances, was held at Kesum Village in Shannan city. After watching a drama titled "Tears of Serfs," directed and performed by the villagers, a senior villager Dawa said, "Before the democratic reform, serf owners beat us up at will and did not give us food. What a good life we have now." In Lhozhag County, more than 500 Tibetan people in traditional Tibetan costumes holding national flags attended a celebration ceremony. "Sixty years ago, the PLA rescued us from the oppression of the serf owners and sent us food and tea," said Chojor, 68. "From then on, we had hope for our lives." Now, Chojor leads a happy life, and his family's total income reached 80,000 yuan last year. "China is boosting the construction of well-off villages along the country's border. We are building a new house, and we will move into it in September," said Chojor. ^ top ^
Timeline: Xi Jinping and Tibet's development (Xinhua)
2019-03-28
China commemorated the 60th anniversary of democratic reform in Tibet Thursday, celebrating the region's fast economic growth, stable society, favorable natural environment and progress in other sectors. Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at the core has made arrangements for social stability, border development, ecological protection and ethnic unity in Tibet and opened a new chapter of improving governance, stability and people's wellbeing there. The following is a timeline of some key moments of Xi's engagement in promoting the development of Tibet as general secretary of the CPC Central Committee. On March 9, 2013, when joining the delegation from Tibet in a panel discussion at the first session of the 12th National People's Congress, Xi said, "To govern the country well we must first govern the frontiers well, and to govern the frontiers well we must first ensure stability in Tibet." In August 2014, Xi called for improvements to transport infrastructure in Tibet to boost the region's development, when marking the 60th anniversary of the opening of the Sichuan-Tibet and Qinghai-Tibet highways. On April 25, 2015, a devastating earthquake in neighboring Nepal caused serious damage in several parts of Tibet. Xi called for all-out efforts to rescue the wounded, accommodate the quake-affected people and carry out the reconstruction by restoring the damaged infrastructure in a timely manner. On July 30, 2015, Xi presided over a meeting of the Political Bureau of the CPC Central Committee, which discussed economic and social development in Tibet and how to ensure the autonomous region achieve prolonged stability. Xi delivered a key speech at the Sixth National Symposium on Work in Tibet held on Aug. 24 and 25, 2015, defining guiding principles, objectives, and tasks in Tibet in the new era. In September 2015, when the country celebrated the 50th anniversary of the founding of the Tibet Autonomous Region, a delegation from the central government presented Tibetan authorities with a plaque inscribed with Xi's words: "Enhancing ethnic unity, building a beautiful Tibet." On Oct. 28, 2017, in a reply to a letter from a herding family in Lhunze County, near the Himalayas in Tibet, Xi encouraged them to set down roots in the border area, safeguard the Chinese territory and develop their hometown. On Oct. 15, 2018, Xi congratulated Xizang Minzu University on the 60th anniversary of its founding in a letter and urged the university to fully implement the Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 19th CPC National Congress, promote core socialist values, and improve education quality. ^ top ^
Beijing 'signals shift' on Dalai Lama with new white paper on Tibet (SCMP)
2019-03-28
The Communist Party's rule over Tibet has ensured religious freedom in the region and overseen "orderly" implementation of the reincarnation system used to choose the Tibetan spiritual leader, Beijing said in a white paper released on Wednesday. The document, released by the State Council's Information Office, comes as Beijing has tightened security in Tibet, closing it off to foreign journalists and diplomats ahead of the 60th anniversary of the 14th Dalai Lama's exile from Lhasa after a failed uprising against Chinese rule. Titled "Democratic Reform in Tibet – Sixty Years On", the white paper also marked a "subtle shift" in the central government's attitude towards the Dalai Lama, a Beijing-based commentator said. The document details Beijing's policy on Tibet under President Xi Jinping, a policy has shifted from a willingness to engage with the Dalai Lama to a policy of "a great leap to socialist system" under Chinese Communist Party's rule. "Tibet has fully implemented the ethnic policy of the Communist Party of China to enhance the awareness of ethnic solidarity and the sense of community of the Chinese nation, and strengthen ethnic communication and integration," it said. "By abolishing serfdom, a grim and backward feudal system, Tibet was able to establish a new social system that liberated the people and made them the masters of the nation and society, thus ensuring their rights in all matters." The paper also said the central government had further institutionalised the reincarnation process of "living Buddhas", enshrined in the "Measures on the Management of the Reincarnation of Living Buddhas of Tibetan Buddhism" guideline published 12 years ago. The Dalai Lama's reincarnation has been one of the most contentious issues between the exiled Tibetan leader and the Chinese government. Last week, the Dalai Lama, which Beijing has called a dangerous separatist, said it was possible that once he died his incarnation could be found in India, where he has lived in exile since 1959. The 83-year-old Nobel peace laureate also warned that any successor named by Beijing would not be respected. His comments drew immediate criticism from Beijing, which insisted that the reincarnation of the Dalai Lama "must comply with Chinese laws and regulations". In Beijing on Wednesday, deputy governor of Tibet Norbu Dondrup said those who criticised China over human rights in Tibet had been "bewitched" by the Dalai Lama and harboured "ulterior motives". He also said the Dalai Lama had no right to talk about the human rights situation in Tibet. Beijing-based commentator on Tibetan affairs Jiang Zhaoyong said the Dalai Lama's "changing attitude towards incarnation" was seen as a source of uncertainty in the region's stability. "The Chinese government is also no longer emphasising that it is keeping the door open to engagement with the Dalai Lama. And that is a change from the previous position," Jiang said. In a white paper released on the 50th anniversary in 2009, Beijing said the "central government has opened and will always keep its door open for the 14th Dalai Lama to return to a patriotic stand". But the white paper this year made no mention of engagement, focusing instead on how Beijing's policies have expanded the region's economy through rapid development in agriculture, fisheries and tourism. Welfare for the local people had improved in the region, with access to free medical treatment, building water conservancy projects, and disaster rescue and relief, the paper said. ^ top ^
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| Xinjiang |
China thanks Kazakhstan for 'understanding and support' on Xinjiang de-radicalisation scheme (SCMP)
2019-03-29
The Chinese government's senior diplomat has thanked Kazakhstan for its support for a de-radicalisation programme in China's far western region of Xinjiang, and said others should follow Beijing's example. Opponents of the programme said China was operating internment camps for Uygurs and other Muslims who live in Xinjiang, although the government described them as vocational training centres and said there was a genuine need to prevent extremist thinking and violence. Foreign Minister Wang Yi said after meeting Kazakh counterpart Beibut Atamkulov in Beijing that de-radicalisation measures in Xinjiang were very effective, the Chinese Foreign Ministry said on Thursday. The steps had "vigorously protected local security and stability and made an important contribution to promoting regional peace and stability", Wang said. The measures also gave a "useful reference for the international community in cracking down on violent terror forces and banishing extremist thought", he said. "We appreciated the Kazakh government's understanding and support for China's position, and we will never let any person or any force damage the friendship and mutual trust between China and Kazakhstan," Wang said. The government of the Central Asian nation has not raised its voice against the programme in Xinjiang but has negotiated the release of about two dozen people with dual Kazakh and Chinese citizenship detained in China. Kazakh police this month arrested a Chinese-born activist who has campaigned on behalf of Kazakhs in China. Xinjiang is home to a Kazakh minority, some of whom have been put into the de-radicalisation system, human rights campaigners said. China has increased its efforts to counter growing criticism from the West and among human rights groups about the programme in Xinjiang. That included inviting foreign diplomats and journalists on chaperoned tours of the region. China denied all accusations of rights abuses in Xinjiang and said there was a genuine need to ensure security there, where hundreds of people have been killed in recent years in unrest blamed by Beijing on Muslim militants and separatist groups. Wang said China and Kazakhstan should strengthen their cooperation in the human rights field and ensure people do not try to "politicise" the issue, the foreign ministry said. ^ top ^
'Extremely absurd': China slams US criticism of its treatment of Muslims (HKFP)
2019-03-29
China on Thursday hit back at criticism from the United States' top diplomat who called its treatment of Muslims "shameful hypocrisy" after speaking with a former prisoner from a Chinese detention camp. US Secretary of State Mike Pompeo made the comment after meeting with Mihrigul Tursun, a member of the Uighur ethnic group who has spoken publicly in the US about what she said was widespread torture in China's prisons for the minority group. Beijing claims the camps are "vocational training centres" that provide language classes and employment, steering locals away from extremism. Pompeo's comments are "extremely absurd and grossly interfere in China's internal affairs", said Chinese foreign ministry spokesman Geng Shuang at a regular press briefing. "Currently, the overall situation in Xinjiang society is stable … and all ethnic groups get along harmoniously," he said. "We urge the US to respect the facts … and stop the malicious smearing and groundless accusations against the Chinese side," Geng added. As many as one million Uighurs and other mostly Muslim minorities are being held in internment camps in Xinjiang, according to a group of experts cited last year by the United Nations. Former detainees say they were detained for simply following Islamic traditions, such as having a long beard or wearing a veil. "China must release all those arbitrarily detained and end its repression," tweeted Pompeo, who had also met with relatives of those detained in Xinjiang. After months denying the existence of the internment camps, Beijing last year launched a public relations campaign to defend its "training centres", organising visits for diplomats and media from friendly countries. However, a delegation of three EU officials who visited Xinjiang in January as part of a carefully organised visit said they had the impression that the people they had spoken to in a "training centre" were reciting a dictated speech. On Wednesday, Pompeo also criticised Beijing's trillion-dollar Belt and Road project after Italy decided to join China's "Silk Road" infrastructure initiative. He accused China of practising "debt-trap diplomacy" with its state-owned or state-controlled enterprises only looking after their own interests. "The US side's statement is inconsistent with the facts," dismissed Geng. "No country sinks into a so-called debt trap because of their co-operation with China." ^ top ^
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| Hongkong |
'Legal malware': National anthem law will enable Beijing to tighten grip on Hong Kong, says new report (HKFP)
2019-03-28
A new report by Hong Kong Watch has said that the upcoming national anthem law is akin to "legal malware," and will open a backdoor for Beijing to enact any laws it wishes in order to tighten its grip on Hong Kong. The draft national anthem law has been tabled at the legislature and is now at the committee debate stage. Under the proposal set to be enacted this year, anyone who publicly and wilfully alters the lyrics or the score of March of the Volunteers, performs or sings the anthem in a derogatory manner, or insults the song, risks a penalty of up to HK$50,000 and three years behind bars. The legislation process in Hong Kong was started after China's top legislature passed a motion in November 2017 to insert the national anthem law into the Annex III of the Basic Law, Hong Kong's de facto constitution. Under Article 18 of the Basic Law, mainland Chinese laws "shall not be applied" in Hong Kong except for those listed in Annex III. Kevin Carrico, a senior lecturer in Chinese Studies at Monash University who wrote the report for the UK watchdog, said Beijing was using Annex III to "legislate away rights guaranteed in the Basic Law that are unrelated to the central government's purview of defence and foreign affairs." Annex III contains national laws in relation to the national emblem and flag, territorial seas, and diplomatic privileges and immunities, among others. "By employing Annex III to legislate away rights guaranteed in the Basic Law that are unrelated to the central government's purview of defence and foreign affairs, Beijing is essentially creating a new precedent to force whatever legislation it pleases on Hong Kong: a particularly dangerous situation as Beijing seeks ever greater control over the city," Carrico wrote. "If the National Anthem Ordinance becomes law, this legislation will threaten the very foundations of the idea of 'one country, two systems,' as well as setting a dangerous precedent for potential future 'national security' legislation under Article 23." Carrico said that the bill has vague definitions on "insult," a considerably extended time limit for prosecution of two years – instead of the more common six months – and a disproportionate punishment. He said it will curtail basic rights of free speech and demonstration guaranteed in the Basic Law and the International Covenant on Civil and Political Rights. "The proposed bill is not only open to potential politicized abuse, but indeed seems almost designed for politicized prosecution, constituting a type of legal malware that will weaken Hong Kong's respected rule of law system," he said. He added that the bill is likely to foster further protest, because it will be practically unenforceable, for instance, when hundreds of football fans boo the national anthem. Instead, the prosecution may act more "practically" to focus in on particular individuals. Carrico cited an example whereby pro-Beijing newspaper Ta Kung Pao singled out Ernie Chow, former leader of the Chinese University of Hong Kong student union, for allegedly booing the anthem at a football match. "Although such images do not provide any clear evidence that Chow was in fact booing the anthem, pro-Beijing media in the city pre-emptively declared him guilty, long before this ordinance had even been drafted," Carrico wrote. "A practically unenforceable law, combined with the recent targeting of activists, makes the National Anthem Ordinance ripe for unjust implementation and politicized prosecution." The report urged the international community to call on the government of Hong Kong to halt legislation, and to use private and public diplomacy to raise questions about the use of Annex III. It also said the UN Special Rapporteur on Freedom of Expression and the UN Committee on Civil and Political Rights should issue further guidance on whether it is permissible for states to use criminal defamation law to penalise those "insulting" a national anthem. Earlier this month, Permanent Secretary for Constitutional and Mainland Affairs Roy Tang said the National Anthem bill simply asks people to "stand solemnly and deport themselves with dignity" when the anthem is played. In January, Secretary for Constitutional and Mainland Affairs Patrick Nip said the law would have no effect on the daily lives of Hongkongers: "The main spirit behind the [national anthem bill] is respect, and I believe that this spirit of respect is easily understood and easily achieved by members of the public." ^ top ^
China's treatment of Hong Kong proves democracy is incompatible with Communist Party, says Taiwan leader (HKFP)
2019-03-28
Taiwan's President Tsai Ing-wen vowed Wednesday to ensure the island's defense as she warned of lessons from Hong Kong, saying Beijing will not allow freedoms in territories it controls. Tsai was speaking as she made a transit stop in Hawaii during a tour of three Pacific island nations that are among the dwindling allies that recognize Taipei rather than communist China. Beijing, which considers the self-ruling democratic island a province awaiting reunification, protested to the United States for allowing the stopover by Tsai, who similarly transited through Los Angeles and Houston last year. In remarks delivered from Hawaii by video to the Heritage Foundation, a conservative think tank in Washington, Tsai accused China of stepping up efforts to "alter the status quo" and to "undermine our democratic institutions." "China's actions have underscored the need for Taiwan to increase our self-defence and deterrence capabilities," she said. "To be clear, we seek peace, not hostility. But we must be capable of defending our freedom, democracy and way of life," she said. Tsai, whose Democratic Progressive Party emphasizes Taiwan's separate identity, warned that the island should heed lessons from Hong Kong, where Beijing has tightened its grip against dissent, including banning a pro-independence party. China guaranteed rights including freedom of expression under its "one nation, two systems" principle — also proposed in the past for Taiwan — when it assumed control of the former British colony in 1997. "The Hong Kong example is deeply concerning. It is a good case study for Taiwan," Tsai said. "It reflects that democracy is inherently incompatible with the Chinese regime, especially the CCP system," she said, referring to the Chinese Communist Party. "Hong Kong is a reminder that all politicians in Taiwan, regardless of political party, should carefully avoid falling into a trap laid by China, which includes economic incentives and other promises but ultimately is to the same destination," she said. Tsai voiced gratitude to the US Congress on the 40th anniversary of the Taiwan Relations Act, which required Washington to provide the island with the means of self-defence even as the United States switched recognition to Beijing. ^ top ^
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| Macau |
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| Taiwan |
Taiwan issue brooks no foreign interference: defense ministry (Xinhua)
2019-03-29
The Taiwan issue is China's internal affairs that concerns China's core interest and Chinese people's national feelings and brooks no foreign interference, a spokesperson of Ministry of National Defense said here Thursday. The spokesperson, Wu Qian, said at a press conference that China "resolutely opposes" the United States' recent moves on the Taiwan issue concerning arms sales to and military relations with the island. "The one-China principle is the commonly accepted norms of international relations and also the political foundation for China-U.S. relations," Wu said. Any word or act violating the one-China principle will shake the foundation of China-U.S. relations, is against the fundamental interests of both countries and "extremely dangerous," he said. ^ top ^
Li: Adherence to one-China policy a must (China Daily)
2019-03-29
Premier Li Keqiang has called for adherence to the one-China policy and the 1992 Consensus, while pledging more supportive measures for Taiwan businesses to invest on the Chinese mainland. Li made the remark when meeting with Vincent Siew, honorary chairman of the Taiwan-based Cross-Straits Common Market Foundation, and other guests from Taiwan on Wednesday during the Boao Forum for Asia in Hainan province. The premier also urged promoting peaceful development of cross-Straits relations and peaceful unification of the motherland, which is in line with the welfare of people on the Chinese mainland and Taiwan. Entrepreneurs and investors from Taiwan have made great contributions to the mainland's economic development, and they are welcome to continue investing on the mainland, Li said. The existing preferential policies for Taiwan businesses will remain unchanged and their legitimate rights will be protected, Li said. In the meantime, new measures will be taken to benefit people from Taiwan, he said. Taiwan businesses can enjoy the benefits of the newly adopted Foreign Investment Law and are also given the same treatment as enterprises on the mainland, Li said. Taiwan businesses will also benefit from the mainland's current campaign of reducing taxes and fees on enterprises, he said. The mainland is willing to expand imports of agricultural and fishery products from the island, and offer more convenience and favorable policies, Li said. The premier said cross-Straits economic and cultural exchanges should be strengthened to boost integration and make Taiwan compatriots share development opportunities with the mainland. In the meantime, the mainland will listen to Taiwan compatriots' suggestions and issue more policies and measures to offer them equal opportunities and treatment when they travel, study, live and work on the mainland, he said. The mainland will do its utmost to do whatever is beneficial to Taiwan compatriots, the premier added. Siew said people on both sides of the Taiwan Straits should work together and help each other. He said his foundation is willing to work with the mainland to build a better common market and promote integration, which is expected to lay a firm foundation for consolidating peaceful development of cross-Straits relations, he said. Late on Thursday, Liu Jieyi, head of the Taiwan Affairs Office of the State Council, also met with Siew. ^ top ^
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| Economy |
Has Hainan's free-trade zone lived up to expectations in its first 12 months? (SCMP)
2019-03-29
When the island of Hainan was designated as China's 12th free-trade zone by President Xi Jinping in April last year, it came with an ambition to make the area operational by 2020, and reach a "mature" development stage in 2035. But one year on, how far has China's southernmost province lived up to expectations? From November to March, the Hainan free-trade zone attracted 185.7 billion yuan (US$27.6 billion) of investment in three batches, allocated to 378 construction projects, including infrastructure, a tax-free town and sewage treatment works, according to calculations based on reports from state-owned news agency Xinhua. Touted as China's "key gateway to the Pacific and Indian Oceans" covering 18 counties and cities in the province, the zone has also signed 195 contracts with parties including international schools and theme parks, with a total investment of 285.9 billion yuan (US$42.4 billion). "Hainan suffered a lot in the first 30 years as it was too eager for results, and as a result, it paid the price in the years to come. The State Council has urged Hainan to have a world-leading business environment in 2021, which will be a huge pressure for Hainan," said Zhang Yansheng, senior researcher fellow at the Academic Committee of the National Development and Reform Commission (NDRC). "Winning preferential policies are not the essential issue for Hainan, but Hainan needs to improve its openness and legal environment." Qin Sibo, a deputy director of the Education Department of Hainan Province said that Great Britain's Harrow School would cooperate with local institutions to open a school in the capital city of Haikou, while negotiations with another British school, Dulwich College, to open a branch in Hainan were also underway. Chen Danhong, deputy director at the Industry Investment Division of Hainan Province, said they planned to announce new batches of projects and new contracts once every two months this year. State media reported that by mid-March, 30 of the world's top 500 companies including Ernst & Young, PricewaterhouseCoopers, Deloitte Touche Tohmatsu and British global travel company Thomas Cook have set up operations in Hainan, while Alibaba Group Holding and Tencent have also set up regional headquarters. Alibaba is the owner of the South China Morning Post. Chen Bo, a professor at Huazhong University of Science and Technology and an adviser to several free-trade zones in China, said the Hainan free-trade zone was different from previous versions that have traditionally focused on the manufacturing industry where there are more individual large-sized investments. "The majority of the investment in the Hainan free-trade zone is on modern service, which distinguishes Hainan from other free-trade zones. Single investment on modern service is generally not large. Hainan has made it clear that it would not focus on traditional manufacturing, that's why there hasn't been a huge amount of foreign investment like Tesla's investment into Shanghai." But Chen Bo said that while Hainan was clearly accelerating construction of the zone, it was hard to pinpoint the pace at which overall development progress has been made. He also questioned how much Hainan could achieve in the field of scientific research. "There are no prestigious universities or institutions in Hainan, and there are no relevant industries to support scientific research," Chen said. The free-trade zone aims to prioritise the development of three sectors – tourism, modern services and hi-tech industries, however, Hainan's appeal among international tourists is still relatively low compared with Indonesia's Bali and Thailand's Phuket. Boao Super Hospital, a flagship project in the free-trade zone, opened in March last year. It is allowed to import sophisticated medical equipment without lengthy approval procedures and also has access to drugs that are not available domestically. The hospital used the first batch of the human papillomavirus (HPV) 9-valent vaccines in mainland China, which led to a health tourism boom in Hainan. In March, Commerce Minister Zhong Shan said that in 2018 Hainan's foreign trade grew by 21 per cent while foreign direct investment increased by 113 per cent. "We can say that we achieved very good results," he said. Hainan recorded a gross domestic product (GDP) growth of 5.8 per cent in 2018, which failed to meet its 7 per cent target. The province has targeted a GDP growth of 7 to 7.5 per cent in 2019 amid the slowing economy. Official figures showed that Hainan ranked 28th among 31 provinces and cities in 2018 in terms of GDP, while disposable income per capita was 24,579 yuan (US$3,648), lagging behind the national average of 28,228 yuan. Last year, Hainan announced an ambitious "one million plan" to attract top talent between 2018-2025 to help build the free-trade zone by offering various incentives including housing, cars, spousal employment and medical insurance. Fu Xuanchao, director of the Hainan provincial development and reform commission, said in March that Hainan had recruited a total of 42,000 "talents of all types". "The most important thing for Hainan to build up a free-trade port is to emancipate the mind, otherwise, it cannot find a way out. Without talent, Hainan cannot succeed. Attracting talent is not only about subsidies, talent must have passion about this place and believe they have a future here," said Renmin University vice-president Wu Xiaoqiu on the sidelines of Boao Forum for Asia in Hainan this week. Hainan announced this week that it has embarked on researching legislation for the Hainan Free Trade Port Law. ^ top ^
Huawei sales cross US$100 billion mark in 2018 as smartphones offset flat network equipment business (SCMP)
2019-03-29
Huawei's consumer business group became the biggest contributor to a record revenue for the first time last year, reflecting the gains that Chinese smartphone brands have made both at home and abroad amid flat sales at its network equipment business. The world's largest telecoms equipment supplier on Friday reported a 19.5 per cent jump in annual revenue to 721.2 billion yuan (US$107.1 billion) in 2018, capping a year in which it came under siege as the US government sought to block use of the company's 5G gear in mobile networks around the world. With its latest financial results, Shenzhen-based Huawei has joined the ranks of multinational technology companies in the US$100 billion club, which includes the likes of Apple and Google parent Alphabet. Revenue for Huawei's carrier business reached 294 billion yuan, roughly the same as the previous year, as revenue at its consumer business surged 45 per cent to 348.9 billion yuan. Revenue at Huawei's enterprise business rose almost 24 per cent to 74.4 billion yuan. "Flat sales in the carrier business were due to 4G roll out while 5G is just starting," said Guo Ping, Huawei's rotating chairman, at Friday's media briefing. "We expect more large-scale deployment of 5G in 2019... 5G will enable broader connectivity, not just among people but also between people and things and among things. That will create huge opportunities." Group revenue growth last year was faster than the 15.7 per cent in 2017. Net profit hit 59.3 billion yuan, up 25.1 per cent year on year. The company said it invested 101.5 billion yuan in research and development in 2018, roughly 14 per cent of its revenue. Privately-held Huawei posted its earnings a day after the UK said the company poses a major risk to the country's telecommunications networks because of the company's failure to fix security flaws found in its equipment and software, according to a report by a government-led watchdog, which ruled out Chinese state interference as the cause of those defects. Earlier this week though, the European Commission ignored US calls for a blanket ban on the Chinese telecoms gear supplier, as it announced a series of cybersecurity recommendations for 5G mobile networks across the continent. While acknowledging US concerns, the commission urged its member-states to assess cybersecurity threats to 5G infrastructure in their national markets. "The UK report states once again that Huawei equipment has no back doors... and that the UK network is not more vulnerable than in previous years," said Guo in the media briefing. "The UK has raised higher requirements to us, and Huawei's board of directors [last year] made the decision to invest an initial 2 billion yuan to improve our capabilities. We want to make sure our results and processes are trustworthy." The road ahead is likely to be challenging though. It is complicated by the US-China trade war, Washington's efforts to block the international deployment of the firm's 5G equipment because of security concerns, and a US case that accuses the Chinese company of financial fraud and violation of trade sanctions against Iran, among nearly two dozen charges. "Cyber security and user privacy protection are at the absolute top of our agenda," said Guo, in Friday's earnings statement. "We are confident that the companies that choose to work with Huawei will be the most competitive in the 5G era." Guo added that countries that choose to work with Huawei will "gain an advantage for the next wave of growth in the digital economy". Sabrina Meng Wanzhou, daughter of Huawei founder Ren Zhengfei, used to lead the announcement of the company's annual results in her capacity as its chief financial officer. She now faces US extradition proceedings in Canada and has sued the Canadian government and police, alleging that her arrest and detention last December was in violation of her constitutional rights. Earlier this month, Huawei said it has filed a lawsuit against the US government in a bid to overturn the US federal ban on its gear, as the company faces increasing scrutiny from the US and its allies over the security of its telecoms network equipment. "Huawei complies with all the applicable laws and regulations in countries where we operate," said Song Liuping, Huawei's chief legal officer at Friday's briefing. "We are always open and want to communicate with the legislative and executive branches of different governments and are very willing to [cooperate with] their investigations." On Wednesday, Huawei's cross-town competitor ZTE Corp, China's second largest telecom equipment manufacturer, reported a record annual loss of 6.98 billion yuan in 2018 after the company ceased major operating activities for nearly four months from April last year. ZTE agreed to pay an additional US$1 billion in fines to the US Department of Commerce and put US$400 million as surety as part of its settlement for violating US prohibitions against selling equipment to Iran. Huawei's record revenue growth was driven by the fast growth from its consumer business group, led by its mobile segment head Richard Yu Chengdong, who has vowed to win 50 per cent of the Chinese smartphone market by the end of this year as it seeks to shoot down South Korea's Samsung Electronics from the global sales crown no later than 2020. The combined shipments of Huawei and Honor phones increased by 34 per cent to reach 206 million units in 2018, compared with the 8 per cent decline and 3.2 per cent slide in shipments of Samsung and Apple last year, according to IDC data. Huawei has confirmed that as of early March it has signed 30 5G contracts – 18 in Europe, 9 in the Middle East, and 3 in Asia-Pacific. Ericsson has publicly announced 16 5G contracts, according to its official website, 5 of them within Europe. Nokia has signed over 70 agreements across the globe, according to information on its website. "Losing parts of Europe, Australia, New Zealand and the US as part of its 5G ambitions will not be fatal to Huawei's plans, as they are still likely to be a key part of 5G roll-outs in Asia and Africa," said Paul Haswell, a partner who advises technology companies at international law firm Pinsent Masons. ^ top ^
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| DPRK |
North Korea eyes travellers from Vietnam after Trump-Kim summit in Hanoi (SCMP)
2019-03-28
North Korean tourism officials on Thursday urged travellers from Vietnam to seize a "golden" opportunity to visit the country on the back of the second Trump-Kim summit in Hanoi last month. With an economy crippled by international sanctions, isolated North Korea is keen to boost its nascent tourism sector by attracting more foreign visitors, the bulk of whom currently come from China. A North Korean tourism official said it was prime time for Vietnamese visitors to travel to the country after Hanoi hosted Trump and Kim for a second round of nuclear talks in February. "We had a very successful summit in Hanoi... this is the right chance, the golden chance for us to generate a tourist market of Vietnam to DPRK," Ham Jin of the official Korea International Travel Company (KITC) said on Thursday. His company hosted a booth at a tourism fair in Hanoi this week – with brochures advertising a dolphinarium, a science and technology complex and the Victorious Fatherland Liberation War Museum in "ever-changing" Pyongyang – while others urged skiers to pay a visit to the Masikryong mountain resort. Kim paid an official visit to Hanoi after his meeting with Trump, piquing curiosity among some Vietnamese eager to know more about the leader and his country. "I want to discover this mysterious country because there are many things to see," said Do Thi Phuong Thuy, who signed up for a tour after Kim's trip. North Korea receives an estimated 100,000 foreign tourists a year, according to industry insiders, though Pyongyang does not publish visitor data. Ham put the number at double that and said visitor numbers grew by as much as 50 per cent last year, though his figures could not be verified. "We (use) tourism to contribute to economic development," he said. A Vietnamese tour operator at the fair said his client numbers have surged this year, but that some travellers remain wary. "People are concerned North Korea isn't safe or is closed to the world... there are the difficulties for us when we promote tours to North Korea," said Nguyen Cong Hoan, director of Hanoi Red Tours. The US has banned Americans from travelling to North Korea after the death of student Otto Warmbier, who was jailed after allegedly stealing a poster from a hotel. He was released in a vegetative state and later died on US soil. Once-popular tours from South Korea to Mount Kumgang near the border came to an abrupt end in 2008 when a North Korean soldier shot dead a tourist from the South who strayed off the approved path. Trump has heralded North Korea's economic potential, praising its "great beaches" that he said would make ideal locations for condos. North Korea is currently building a sprawling seaside resort known as the Wonsan-Kalma Coastal Tourist Area in a zone that has previously been used for artillery drills and ballistic missile launches. ^ top ^
North Korea activity 'inconsistent with denuclearisation' says US general, in blow to Donald Trump negotiating tactics (SCMP)
2019-03-28
North Korea's activity on nuclear weapons and missiles is inconsistent with its pledge to denuclearise, the commander of US forces in South Korea said on Wednesday, in a further blow to Donald Trump's negotiating tactics with the hermit nation. A summit between US President Donald Trump and North Korean leader Kim Jong-un in Hanoi last month broke down over differences about US demands for North Korea to rid itself of nuclear weapons that threaten the United States, and North Korea's demand for substantial relief from international sanctions imposed on it because of its nuclear and missile tests. "Their activity that we have observed is inconsistent with denuclearisation," US Army General Robert Abrams said during a House Armed Services Committee hearing. Abrams did not provide further details. He had been asked if the United States had seen a change in North Korea's production of nuclear weapons, material and missiles. Abrams said that while he had enough intelligence and surveillance resources to deal with the current situation, that might not be the case if relations were to worsen on the Korean peninsula. "If they change negatively then our stance and our posture is not adequate to provide us an unblinking eye to give us early warning and indicators," he said. There has been no sign of direct contact between Washington and Pyongyang since the collapse of the summit, though Trump has stressed his good personal relationship with Kim. Randall Schriver, the Pentagon's top Asia policy official, said there had be no progress on denuclearisation. "Our door is still open for diplomacy, but to date we have not seen movement on denuclearisation," Schriver said. He added that he was not aware of sanctions being removed or changed since Trump tweeted last week that he had ordered the withdrawal of additional large-scale sanctions on North Korea. Several American think tanks and South Korean officials reported that satellite imagery showed possible preparations for a launch from the Sohae rocket launch site at Tongchang-ri, North Korea. There have also been reports from South Korea's intelligence service of activity at a factory at Sanumdong near Pyongyang that produced North Korea's first intercontinental ballistic missiles capable of reaching the United States. Since then however, South Korea's defence minister has said it was premature to say whether recent activity at some of North Korea's rocket facilities involved preparations for a missile launch. Abrams said that despite a reduction in tensions with North Korea, there had been little to no verifiable changes in its military capabilities. "North Korea's conventional and asymmetric military capabilities along with their continued development of advanced conventional munitions and systems all remains unchecked," Abrams said. North Korea has frozen nuclear and missile testing since 2017, and Trump has pointed to this as a positive outcome from nearly a year of high-level engagement with North Korea. The commander of US forces in Asia, Admiral Philip Davidson, also said that China had not been helpful in imposing sanctions on North Korea in the maritime arena. "They are offering zero assistance … They are certainly not monitoring their own territorial seas very well," Davidson said. UN sanctions monitors reported to the Security Council in February that there had been a "massive increase in illegal ship-to-ship transfers of petroleum products and coal" by North Korea that had rendered the latest sanctions ineffective. ^ top ^
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| Mongolia |
Foreign Minister D.Tsogtbaatar to visit China (Montsame)
2019-03-29
Minister of Foreign Affairs D.Tsogtbaatar will pay an official visit to the People's Republic of China on March 31-April 2 at the invitation of Wang Yi, State Councilor and Minister of Foreign Affairs of China. Within the visit, the Prime Ministers will hold official negotiations and Minister D.Tsogtbaatar will meet with Vice President of China Wang Qishan and Minister of Commerce Zhong Shan to exchange views on bilateral relations and cooperation. The visit is special as being made within the 70th anniversary of establishment of diplomatic relations between the two countries. ^ top ^
State Secretary receives delegates of Heilongjiang province (Montsame)
2019-03-29
State Secretary of the Ministry of Foreign Affairs D.Davaasuren received Chinese delegation led by Cheng Zhiming, Vice Governor of Heilongjiang province on March 26. At the beginning of the meeting, the parties noted that this year marks the 70th anniversary of the establishment of diplomatic relations between Mongolia and China, emphasizing that the bilateral ties and cooperation are expected to move forward in many fields. State Secretary D.Davaasuren requested to invite Mongolians companies to participate in the fair and exhibitions to be held in Heilongjiang province, addressing the issues related to construction work of the China-Mongolia-Russia economic corridor, investments from major companies of the province and bilateral non-agricultural and non-mining sector production. Vice Governor of Heilongjiang province Cheng Zhiming noted that he seeks to enrich the existing relations with Mongolia, conduct planned local cooperation, strengthen humanitarian cooperation and mutual trust. ^ top ^
Parliament closes its irregular session (Montsame)
2019-03-29
State Great Khural (Parliament of Mongolia) closed its irregular session on March 27. During the irregular session, the parliament passed revised bills on General Taxation, Corporate Income Tax and on Personal Income Tax, bill to amend the Law on Procurement of Goods, Works and Services with State and Local Funds, and bills to amend the Law on Mineral Resources and other related law. Also, president's proposal on the appointment of the Chief of the General Staff of the Mongolian Armed Forces was supported. MP D.Oyunkhorol was appointed as a head of the Parliamentary Standing Committee on Social Policy, Education, Culture and Sciences. The Parliament Speaker issued an ordinance to convene an irregular session on March 18-29. As it succeeded discussing the agenda and passing the laws, the Parliament has closed its irregular session two days earlier than the date set by the Speaker's ordinance. ^ top ^
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Jennia JIN
Embassy of Switzerland
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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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