Foreign Policy

• China, Malaysia seek to resolve South China Sea disputes with new dialogue mechanism (SCMP)
• Donald Trump's team rushes to find escape hatch for China tariffs as trade war goes on (SCMP)
• US lawmakers ask Pentagon for list of companies owned by Chinese military 'to combat economic espionage' (SCMP)
• China and Russia to reach deals, including aerospace, nuclear energy: MOFCOM (Global Times)
• Chinese ambassador urges German politicians to stop interfering in Hong Kong affairs (Xinhua)
• China, U.S. working groups to meet soon: MOC (Xinhua)
• Gladys Liu scandal: Australian PM condemns 'grubby smear' against MP with links to China's 'propaganda arm' (SCMP)
• China to build warship for Thailand (Global Times)
• China Focus: China, Kazakhstan agree to develop permanent comprehensive strategic partnership (Xinhua)
• Xi meets German Chancellor Angela Merkel (Xinhua)

Domestic Policy

• China expands access to public services for travellers from Hong Kong and Macau (SCMP)
• China mulls granting local governments greater autonomy to make their own laws (SCMP)
• Xi Focus: Xi stresses striving for national rejuvenation ahead of PRC's 70th founding anniversary (Xinhua)
• 1.93 mln daily entry, exit trips expected for Mid-Autumn Festival holiday (Xinhua)
• Watchdog warns of graft acts ahead of holidays (China Daily)
• China expected to allow green bonds to fund clean coal projects in potential blow to climate change fight (SCMP)
• China's internet regulator orders online AI algorithms to promote 'mainstream values' (SCMP)

Beijing

Shanghai

Guangdong

Tibet

• Tibet eyes growth and conservation (China Daily)

Xinjiang

• US Senate passes Uygur Human Rights Policy Act calling for sanctions on Chinese officials over Xinjiang camps (SCMP)
• Vocational education and training centers in Xinjiang represents new path to address terrorism (People's Daily)

Hongkong

• Hong Kong police ban another protest as MTR to scrap overnight trains during this year's Mid-Autumn Festival (HKFP)
• Hong Kong Justice Dept. mulls emergency legislation and ban on protesters from wearing masks (HKFP)
• HKers sing national anthem to support patriotic local resident attacked by anti-government protesters (Global Times)

Macau

• President Xi meets Macao's new chief executive (Xinhua)

Taiwan

• Foxconn's Terry Gou quits Kuomintang, paving way for Taiwan presidency bid as an independent (SCMP)

Economy

• Defaults among lower tier government-backed bond issuers in China could rise as US$560 billion matures in next two years (SCMP)
• Foreign companies look to pursue greater business opportunities in China (People's Daily)
• China splashes money on pig production (Global Times)

DPRK

• China welcomes DPRK-US dialogue resumption (Xinhua)
• John Bolton's exit 'a win' for North Korea in Trump-Kim denuclearisation talks, experts say (SCMP)

Mongolia

• Exports of mineral products, textiles and precious metals make up 95.7 percent of total export (Montsame)
• Cabinet news in brief (Montsame)
• Discover Mongolia 2019 international forum to be held (Montsame)

^ top ^

China, Malaysia seek to resolve South China Sea disputes with new dialogue mechanism (SCMP)
2019-09-13
China and Malaysia have agreed to set up a joint dialogue mechanism for discussing South China Sea issues at a time of simmering tensions between Beijing and its neighbours over the disputed waterway. Chinese Foreign Minister Wang Yi announced the plan after meeting his Malaysian counterpart, Saifuddin Abdullah, in Beijing on Thursday. "Tensions in the South China Sea have dropped recently. Littoral states and China are committed to appropriately handling the South China Sea issue and jointly safeguarding peace and stability there," Wang said. "To this end, our two sides have agreed to set up a bilateral consultation mechanism for maritime issues. A new platform for dialogue and cooperation." Abdullah, who referred to Wang as "my brother", said the mechanism would be managed by the two countries' foreign ministries and that more details would follow. The platform is the latest move by Beijing to find ways to settle disputes in the South China Sea on a one-to-one basis. China has had long-running disputes with rival claimants Vietnam, the Philippines and Malaysia, and the issue has also been the focus of rising tensions between Beijing and Washington. Brunei and Taiwan also lay claim to parts of the South China Sea, which is one of the world's busiest waterways. In August, China sent a survey ship, supported by coastguard vessels, to the Vietnam-controlled Vanguard Reef in an apparent effort to prevent Hanoi from carrying out oil and gas operations in the area. Beijing used similar tactics off the Malaysian coast earlier the same month. Meanwhile in Manila, anti-China protesters took to the streets in June after a Chinese vessel struck and sank a Philippine fishing boat, and following repeated passages by Chinese warships through waters claimed by the Southeast Asian nation. Xu Liping, a senior research fellow at the National Institute of International Strategy under the Chinese Academy of Social Sciences, said Beijing's agreement with Kuala Lumpur would help to ease disputes between the two countries and also contribute to overall peace in the disputed waters. "There are two main aims for the dialogue mechanism: one is dispute settlement and addressing sovereignty issues, the other is boosting cooperation in areas like fishing and security," he said. "If China has better cooperation with Malaysia, then ultimately it will contribute to resolving and reaching consensus on issues with other countries." Aside from the deal with Malaysia, Beijing – which has similar bilateral agreements with the Philippines and Brunei – is also pushing for a code of conduct for the South China Sea with the members of the Association of Southeast Asian Nations. An initial draft was presented in August last year, and in November the parties involved committed to finalising the code by 2021. Progress since then, however, has been slow, with Beijing refusing to agree to making the code legally binding, and other countries worrying it will be used to falsely boost trust in the region without resolving disputes. ^ top ^

Donald Trump's team rushes to find escape hatch for China tariffs as trade war goes on (SCMP)
2019-09-13
US President Donald Trump's top advisers are rushing to find an escape hatch for a series of tariff increases in the coming months, worried about the potential for further economic damage. Many of the president's top economic officials are trying to resurrect the terms they previously were negotiating with China, a deal officials said was "90 per cent" done before a sudden impasse this summer, according to a person familiar with the discussions. That approach was rejected by the Chinese at the time, so it is unclear whether the new effort will overcome those hurdles and deliver US-sought commitments from China on agriculture, intellectual property and technology transfer. The goal of the internal administration discussions is to forestall October tariff increases and the next tariffs set to take effect in December, with some advisers arguing that the economic hit is real and must be mitigated before the election year. But the discussions remain fluid and Trump has yet to endorse an approach. The internal discussions were confirmed by two other people close to the talks, who cautioned that nothing has been finalised. What is different now is that administration officials are hoping to leverage a possible stalling of additional tariffs to get China to make commitments on intellectual property, said one of the people. "We are looking for the Chinese to give us what we asked for in May," the person said. Meanwhile, Chinese officials have signalled that they are willing to negotiate after Trump's blow-up in July led to a massive escalation in the tariffs. The economic impact of the trade fight on China is not fully known, but economic indicators show that the country's economy is being hurt. "The idea is to pull the relationship away from where the president loses his temper and could really hurt them," said the person, who was recently briefed by Chinese officials. US and Chinese officials plan to meet later this month to discuss a way forward. Trump on Wednesday evening announced a two-week delay in the next round of tariff increases ahead of those talks. Trump's stand-off with China has rocked markets throughout the past two years, and the latest debate inside the Trump administration is fuelling more volatility with warring leaks. The stock market popped higher on Thursday morning after a Bloomberg report about a potential interim trade deal, but then fell back with a CNBC report countering it. The discussions about some kind of agreement come as the White House holds wide-ranging internal debates about ways to boost economic growth heading into 2020 as data suggest a clear slowdown with the trade wars having an obvious impact, especially on manufacturing. A China deal is the most obvious way for the White House to affect markets and the economy short of various tax cut ideas being floated that are unlikely to pass Congress. One of the people close to the talks said deputy-level officials will start meeting next week to set up a potential preliminary deal involving agriculture purchases by China and, on the US side, easing export restrictions on Huawei and potentially more delays to tariff increases. A primary focus is also likely to be how talks can proceed on core US concerns related to intellectual property, currency, market access and other issues, the person said. Both sides took steps to ease tensions this week. Trump said on Wednesday that he was delaying plans to impose an additional 5 per cent duty on US$250 billion worth of Chinese goods until October 15, or two weeks later than scheduled. The move followed China's announcement earlier on Wednesday that it was exempting 16 items from the retaliatory tariffs it has imposed on American products in response to Trump's tariff moves. US Treasury Secretary Steven Mnuchin said Thursday he was "cautiously optimistic" about the chances for reaching an agreement with Beijing. "We have a deputies meeting planned in the next two weeks where the Chinese will be coming here and they'll be working on material in advance of the vice-premier coming here in the beginning of October to meet with the Ambassador [Robert] Lighthizer and myself," Mnuchin said on CNBC's Squawk Box. "So, we look forward to hopefully making progress the next few weeks." Mnuchin also indicated that the October meeting could be key to reaching an agreement, if positive signals coming out of Beijing are to be believed. "We need to rebalance this relationship, and they acknowledge it," Mnuchin said. "So, if China comes here with a proposal that makes sense, we will consider it. We will take it to the president. And again, I'm cautiously optimistic. I take the Chinese in good faith that they want to come here with a deal." ^ top ^

US lawmakers ask Pentagon for list of companies owned by Chinese military 'to combat economic espionage' (SCMP)
2019-09-13
A bipartisan group of US lawmakers asked the Pentagon on Thursday to name companies owned by the Chinese military operating in the United States in an attempt to curb Beijing's effort to "steal" technology for military purposes. Companies owned by the Chinese government "acquire American firms to transfer proprietary information," among other tactics, said the group of Democratic and Republican senators and representatives, including US Senate Minority Leader Chuck Schumer, in a letter to Defence Secretary Mark Esper. The Chinese embassy did not immediately respond to request for comment. A Pentagon report in 2018 said China dominates the global supply of rare earth minerals critical to US military operations, as well as supplies of electronics and chemicals. "China represents a significant and growing risk to the supply of materials and technologies deemed strategic and critical to US national security," the report said. The lawmakers asked the Pentagon to compile a list of companies owned by the Chinese military operating in the United States, citing a provision in the National Defence Authorisation Act (NDAA) for financial year 1999. The lawmakers requested the public release of an updated list "as soon as possible" to "combat China's economic espionage in the United States". ^ top ^

China and Russia to reach deals, including aerospace, nuclear energy: MOFCOM (Global Times)
2019-09-12
China and Russia are expected to reach a number of deals when Chinese Premier Li Keqiang visits Russia next week, Gao Feng, spokesperson of China's Ministry of Commerce (MOFCOM) said on Thursday. Gao said the deals will include trade, investment, digital economy, agriculture, technology, aerospace and nuclear energy. "The trade cooperation of the two countries is speeding up, and continues to strive for high-quality development," Gao said. Li will visit Russia from Monday to Thursday, the Chinese Foreign Ministry announced earlier, and it is widely believed that his visit will further strengthen and broaden the China-Russia strategic partnership. Trade between China and Russia last year exceeded $100 billion, and China has remained Russia's largest trading partner for nine consecutive years, data from MOFCOM showed. In the first eight months of the year, bilateral trade stood at $70 billion, 4.5 percent higher than last year. Chinese investment has quickly increased, Gao said, adding the field has expanded from the traditional agricultural industry to auto, home appliances and food processing, and the methods of investing have turned to M&As or setting up funds. He said the China-Russia gas pipeline is expected to begin operating at the end of the year, and the agricultural cooperation is also working smoothly. Some 4,431.60 tons of Russian soybeans were cleared by Chinese customs after inspection and quarantine last month, Nanjing customs announced on its WeChat ac-count. This was the first batch of Russian soybeans to China since it approved soybean imports from Russia in late July. ^ top ^

Chinese ambassador urges German politicians to stop interfering in Hong Kong affairs (Xinhua)
2019-09-12
Chinese Ambassador to Germany Wu Ken condemned here on Wednesday some German politicians' move of treating Hong Kong separatist Joshua Wong Chi-fung as their guest, and urged them to stop interfering in Hong Kong affairs. China has lodged stern representations with the German side over its allowing Wong to enter the country and meet with its foreign minister and some other politicians there, Wu said during a press conference in the Chinese Embassy in Germany. Wu said some extremists in Hong Kong were committing serious, violent crimes in the name of so-called "democracy" and some have even started to act like terrorists, adding that they are out-and-out thugs in any country or under any legal framework. "However, some German political forces and politicians treated these violence agitators as their guests of honor. They either have little basic knowledge of Hong Kong, or are trying to gain their own political capital," he said. Wu reiterated that Hong Kong affairs are purely China's internal affairs, and urged certain politicians to respect China's sovereignty and security, and to stop conniving at those violent crimes and interfering in China's internal affairs. German Chancellor Angela Merkel paid an official visit to China last week, during which the leaders of the two countries reached important consensus on how to further develop bilateral ties, Wu said. China was shocked by the move of some German politicians and parliamentarians of meeting Wong at this time, and expressed strong dissatisfaction with and firm opposition to Germany over such a move, he said. Wu also expressed his discontent over the biased reports of some German media outlets, which hyped up the demonstrations in Hong Kong while remaining silent on the violent acts of the radicals. Fighting crimes and defending the dignity of law and social order are the duties of every responsible government and police force, he said, adding he hopes that the German people will remain impartial on the situation in Hong Kong. On Monday evening, German Foreign Minister Heiko Maas met here with Wong, leader of a Hong Kong political group advocating so-called "independence." China's Foreign Ministry spokesperson Hua Chunying said on Tuesday at a press briefing in Beijing that China expressed strong dissatisfaction with and firm opposition to Germany over its allowing Wong to enter the country to engage in anti-China separatist activities and its foreign minister's contact with him. ^ top ^

China, U.S. working groups to meet soon: MOC (Xinhua)
2019-09-12
Chinese and U.S. economic and trade teams have maintained effective communication and the working groups of the two sides will meet soon to conduct consultations and make full preparations for the next high-level economic and trade consultation between the two sides, an official said Thursday. Ministry of Commerce (MOC) spokesperson Gao Feng expressed hope that the United States will meet China halfway, take concrete actions and create favorable conditions for the consultation. "This is in the interests of both China and the United States, and the world as a whole," Gao said. On resuming imports of agricultural products from the United States, Gao said Chinese companies have started to inquire with U.S. exporters about the purchasing prices of agricultural products, including soybeans and pork. The Customs Tariff Commission of the State Council Wednesday unveiled the first set of U.S. goods to be excluded from the first round of additional tariffs on U.S. products. The exemption covers 16 categories of goods. There are three aspects of criteria for examining the exclusion application, Gao said. First, it is difficult to find alternative sources of commodities; second, the imposition of tariffs will cause serious economic damage to the applicants; and third, the imposition of tariffs will have a significant negative structural impact on relevant industries or bring about serious social consequences, Gao said. The commission will continue to work on the exemption process and release subsequent lists in due course, Gao said. ^ top ^

Gladys Liu scandal: Australian PM condemns 'grubby smear' against MP with links to China's 'propaganda arm' (SCMP)
2019-09-12
Australian Prime Minister Scott Morrison has said accusations that Hong Kong-born MP Gladys Liu has inappropriate links with the Chinese Communist Party are a "grubby smear", but has refused to confirm whether security agencies have ever raised concerns about her background. As Labor prepared to target the government for a second day over Liu's background, the prime minister hit out at the opposition for what he called the suggestion the member for Chisholm was "in cahoots" with China's government. "It is a ridiculous suggestion and I think it is an insult to every single Chinese-Australian in this country," Morrison said. "The Labor Party have to take a good, hard look at themselves as to why they are pursuing this matter. "They might want to dress it up as national security, but I think 1.2 million Australians of Chinese heritage get the point." Morrison said there was "no credible suggestion" of any inappropriate behaviour in relation to Liu, saying the speculation about her links to the Chinese regime were based on nothing more than a "clumsy interview". "What we're left with is just a grubby smear by the Labor Party who is in one of their most desperate hours, unable to explain their position on anything and so they have gone after a Chinese-Australian woman, the first so elected in this parliament. "They should be celebrating her election, not attacking it." However, Morrison refused to provide any information on reports that security agencies had flagged concerns with the prime minister's office about Liu's associates that led to a "meet and greet" event being cancelled. He said it was irresponsible for Labor to attempt such a line of questioning in parliament, which it was expected to do again in question time on Thursday. "Anyone who sits around the national security committee of cabinet table, anyone who takes the management of our national security issues and how we deal with security agencies seriously … always knows that you are never in a position to be able to offer commentary on inquiries of that nature," Morrison said. "That would be to undermine absolutely the nature of the relationship between agencies and the government." Morrison said Liu's Sky News interview with Andrew Bolt on Tuesday night, in which she refused to criticise the CCP government, was "clumsy". "She is a new member of parliament and if that were the grounds for which people weren't sitting in the parliament, it would be a pretty empty place," he said. "There are clumsy interviews that are given from time to time and on this occasion one was given by a new member of parliament." Morrison said that as a member of the Chinese-Australian community, Liu was linked to many different organisations, some of which might have conferred membership without her knowledge. "Gladys Liu is part of a community, she is a great Australian," Morrison said. "What I am very concerned about – very concerned about – given what I have just outlined to you about her background, there is 1.2 million Australians of Chinese heritage in this country. "This has a very grubby undertone in terms of the smear that is being placed on Gladys Liu, and I think people should reflect very carefully in the way they have sought to attack Gladys over this matter, and the broader smear that I think is implied in that of over more than 1 million Australians." Morrison said the circumstances around Liu were very different to those of the former Labor senator Sam Dastyari, saying she had not accepted money for personal expenses, nor advocated a change of the government's position on the South China Sea. On Thursday morning, Labor attempted to escalate the pressure on the government over Liu by suspending standing orders to demand Liu give an explanation to parliament. The shadow attorney general, Mark Dreyfus, said Liu needed to explain to the House her membership of groups associated with the "overseas propaganda arms of the Chinese Communist Party". Liu's alleged ties to the propaganda machine linked to the Chinese government were first reported by the ABC, which revealed a Chinese government online record listed her name as a council member of the Guangdong provincial chapter of the China Overseas Exchange Association between 2003 and 2015. The association was an arm of the Chinese government's central political and administrative body, and has since been merged with the Communist Party's propaganda arm, the United Front Work Department. In the Sky News interview, Liu said she could not recall if she was a member of the group and struggled to answer questions about China's activities in the South China Sea. "This is a very serious matter," Dreyfus said. "When this kind of extraordinary revelation comes to light, it goes to whether or not the member concerned is a fit and proper person to be a member of this House." The attorney general, Christian Porter, said the suggestion that Liu was not "a fit and proper person" to sit in parliament based on her previous membership of Chinese organisations was "laughable". "That is the sole basis upon which members opposite put the assertion that the member for Chisholm is not a fit and proper person to be in this place," Porter said. "That is outrageous. That is xenophobic and that is something that you should all be disgraced about. It's absolutely disgraceful." Penny Wong, a Malaysian-born Labor senator, denied the party was making xenophobic claims. "The only person linking these specific and serious concerns about Ms Liu to the entire Chinese-Australian population is Scott Morrison and he should stop," Wong said. Australia recently adopted a series of measures to limit foreign interference in politics, after it emerged that both parties took money from a Beijing-connected billionaire who has now been banned from the country. ^ top ^

China to build warship for Thailand (Global Times)
2019-09-12
China and Thailand have signed a deal that will see a Chinese shipbuilding company build a Type 071E landing platform dock (LPD) warship for the Thai navy, a move which shows deepened arms trade cooperation between the two countries, a Chinese military expert said on Wednesday. China and Thailand signed the agreement in Beijing on Monday, with the general manager of the China State Shipbuilding Corporation Limited (CSSC), Yang Jincheng, and the commander-in-chief of the Royal Thai Navy, Luechai Ruddit, participating, according to a statement CSSC released on Tuesday. This also marks the first time China has exported an LPD, the statement said. The statement did not provide further details, including the ship's worth or when the ship will be delivered. The Type 071 LPD is a 20,000 ton-class warship that can carry combat personnel and equipment, including air-cushioned landing craft (LCAC), amphibious assault vehicles, tanks and helicopters. It is part of the main battle equipment being used by China's People's Liberation Army Navy. Thailand could use the warship to conduct naval transport missions, boosting the country's troop deployment capability in the high seas, Wei Dongxu, a Beijing-based military analyst, told the Global Times on Wednesday. It can also be used for civilian purposes, like disaster relief and humanitarian rescue missions, because as a large naval platform, it can carry relief goods and get victims out of disaster areas, Wei said. The variant of the Type 071 for Thailand is called the Type 071E, with the E possibly meaning "export." It could be a customized version based on the needs of the Thai navy, Wei said, noting that it will likely have no significant changes compared to the domestically commissioned ones in China. Thailand operates other Chinese weapons like the VT4 tanks made by the China North Industries Corporation (NORINCO). Wei said that arms trade cooperation between the two countries is getting deeper, and Thailand could purchase even more Chinese weapons like LCAC, amphibious assault vehicles, and helicopters that could fit the Type 071E. ^ top ^

China Focus: China, Kazakhstan agree to develop permanent comprehensive strategic partnership (Xinhua)
2019-09-12
China and Kazakhstan decided here Wednesday to develop a permanent comprehensive strategic partnership. The decision came as Chinese President Xi Jinping held talks with his Kazakh counterpart, Kassym-Jomart Tokayev, at the Great Hall of the People in Beijing. When reviewing the achievements the People's Republic of China has scored in the past 70 years since it was founded, Xi said such a process of moving forward has never been smooth, and stressed that no matter how the external situation changes, China will unswervingly take care of its own business regardless of outside factors. Xi said China will comprehensively deepen reform, expand opening-up and promote higher-quality development. "We are fully capable of coping with various risks and challenges, and any difficulty or obstacle cannot stop us from moving forward," Xi said. "A stable, open and prosperous China will always be an opportunity for the future development of the world," he said. On China-Kazakhstan ties, Xi said China is willing to deepen all-round cooperation with Kazakhstan, seek synergy between the Silk Road Economic Belt and Kazakhstan's Bright Path new economic policy, and strengthen connectivity. He also called on the two sides to boost cooperation in industrial capacity and science and technology innovation, increase people-to-people and cultural contacts, and facilitate exchanges at sub-national level. China and Kazakhstan should take a clear-cut stand in upholding multilateralism and an open world economy, so as to contribute to promoting a fairer, more just and equitable global governance system, Xi said. Xi also encouraged the two countries to strengthen security cooperation, and jointly fight against the "three evil forces" of terrorism, extremism and separatism. It is necessary to promote the Shanghai Cooperation Organization (SCO) to play a more active role in regional and international affairs, he added. Tokayev, who is paying a state visit to China from Tuesday to Thursday, expressed congratulations on the 70th anniversary of the founding of the People's Republic of China. Tokayev said Kazakhstan is willing to take the decision of developing a permanent comprehensive strategic partnership with China as an opportunity to promote closer bilateral ties. China's reform and opening-up has brought opportunities to various countries including Kazakhstan. Kazakhstan firmly supports the Chinese government and people in safeguarding national sovereignty, security and development interests, he said. Tokayev said Kazakhstan is looking forward to cementing high-level exchanges with China, and strengthening pragmatic cooperation in the areas of economy, trade, infrastructure, energy, 5G, science and technology, and people-to-people and cultural exchanges under the framework of the Belt and Road initiative. Tokayev said the two sides should closely communicate and coordinate within the frameworks of the SCO and the Conference on Interaction and Confidence Building Measures in Asia, jointly combat the "three evil forces," and maintain regional security while opposing external interference. The two heads of state signed a joint statement between China and Kazakhstan after their talks. They also attended a signing ceremony for a number of bilateral cooperation agreements. Before their talks, Xi hosted a welcome ceremony for Tokayev outside the Great Hall of the People. ^ top ^

Xi meets German Chancellor Angela Merkel (Xinhua)
2019-09-07
Chinese President Xi Jinping met with visiting German Chancellor Angela Merkel here on Friday. The current era is full of challenges and increasing risks, Xi said, adding that unilateralism and protectionism pose a serious threat to world peace and stability, and no country can be immune from it. As two responsible major countries, China and Germany need to strengthen strategic communication, coordination and cooperation to address the common challenges facing mankind more than ever. "This is becoming increasingly important not only for China and Germany but also for the world," said Xi. Xi said the two sides must adhere to mutual respect, dialogue and consultation, respect each other's development path, take care of their core interests, and be strategic partners for equal dialogue, mutually beneficial cooperation and mutual learning. Xi stressed that it is necessary to make the pie of China-Germany cooperation bigger. Xi said Merkel's visit to China has reached many economic and trade cooperation results, which proves China matches its words with deeds to expand opening-up. He added that the Chinese market is large enough and will grow larger as China develops, which will bring more new opportunities to Germany and the rest of the world. "Auto industrial cooperation is a good example of mutual benefit between the two countries," he said. Both parties should be open-minded and foresighted, Xi said, calling for strengthened cooperation in emerging fields such as autonomous driving, new energy vehicles, intelligent manufacturing, artificial intelligence, digitalization and 5G to jointly cultivate and explore future markets. China is accelerating the opening of its financial and service sectors, and welcomes the German side's investment in these sectors, Xi said. As Merkel will visit Wuhan, Xi also welcomed German enterprises to participate in the construction of the Yangtze River Economic Belt. Xi called on both countries to strive for broad participation and support of the two peoples, especially young people, in the development of China-Germany relations. He called on China and Germany to demonstrate responsibility, jointly maintain international fairness and justice, safeguard free trade and multilateralism, and strengthen cooperation on climate change and cooperation with Africa. Merkel said Germany-China dialogue and cooperation are extensive and China is Germany's largest trading partner. Cooperation between the two countries is developing in a better direction. Germany is very pleased to share China's achievements in expanding its opening-up policy and is willing to continue to increase investment in China, expand cooperation areas and promote people-to-people and cultural exchanges, said Merkel. She said unilateralism and protectionism also have a negative impact on Germany. All parties should work to resolve differences and frictions through dialogue and consultation. The German side is willing to strengthen communication and coordination in international affairs with China in the spirit of multilateralism and free trade. Germany is willing to play a constructive role in the development of EU-China relations, said Merkel. The two sides also exchanged in-depth views on major international issues and reached a broad consensus. ^ top ^

China expands access to public services for travellers from Hong Kong and Macau (SCMP)
2019-09-13
Hong Kong and Macau residents and "overseas Chinese" may soon be able to have full access to public services on the mainland using their China-issued travel documents, state news agency Xinhua reported. Xinhua reported on Wednesday that the National Immigration Administration was putting a platform in place to enable government agencies and businesses to verify mainland-issued travel permits for Hong Kong and Macau residents. "As soon as the platform becomes operational, these overseas travellers can, from October, have access to 35 public services, ranging from transport, to finance, education, communications, medical care and accommodation," the report said. According to the report, "overseas travellers" cover Hong Kong and Macau residents and ethnic Chinese living overseas. But it did not say why the new measures did not apply to people from Taiwan. The administration did not respond to requests for comment on Thursday. The new measure appears to be part of a long-term strategy by Beijing to foster closer ties between the mainland and Hong Kong and Macau. In the last few years, the central government has launched a host of incentives for Hong Kong and Macau residents and businesses, including opportunities in the Greater Bay Area development plan in southern China. Ivan Zhai, executive director of the Hong Kong Chamber of Commerce in China-Guangdong, welcomed the new measure. "If such an arrangement can be fully implemented, Hong Kong businesspeople who operate on the mainland will be thrilled," Zhai said. The Hong Kong business community has long lobbied for relaxation over areas such as train ticketing and hotel registration. Zhai said that although Hong Kong and Macau residents could now book high-speed train tickets with their mainland-issued travel permits, there were few ticket machines that could automatically read the permits, complicating the process. "There are also hotels on the mainland that can only entertain guests with Chinese identity cards and currently Hong Kong travellers can only go to hotels that are authorised to accept the mainland-issued travel permits," he said. According to the report, there will be stiff penalties for departments or businesses misusing information collected through the platform. Zhai said Hong Kong businesspeople who travelled to the mainland often were more likely to be concerned about convenience than the risk of invasion of privacy. "If you are a frequent traveller in China, you would have expected that the relevant departments of the Chinese government already have information about you anyway," he said. ^ top ^

China mulls granting local governments greater autonomy to make their own laws (SCMP)
2019-09-12
China's national legislature is considering granting greater autonomy to local authorities to decide local rules and regulations, the official Xinhua News Agency reported this week. It could help the likes of Shanghai and Shenzhen to throw off the shackles of nationwide rules that are sometimes too detached from, or even unfit for, local conditions, legal experts said. However, they cautioned that any lawmaking power delegated from Beijing to local authorities would be very limited. The country's Legislation Law, which was amended in 2015, grants lawmaking powers to all cities that are made up of districts, but they are restricted to urban management and environmental and cultural protection. Previously, only provinces, autonomous regions, directly governed municipalities, and "relatively" large cities could make their own laws. The plan still needs to be approved by the Standing Committee of the National People's Congress, the country's legislature that rubber stamps the ruling Communist Party's decisions into law. Rules already vary between cities, with Beijing passing a rule banning smoking in all public places, while Shenzhen is stricter than other municipalities as it requires all car drivers and passengers to wear seat belts, and Shanghai was the first Chinese city to require garbage sorting by residents. But lawmaking powers on property rights, marriage, inheritance, taxation, and criminal penalties are now off limits for local authorities even though many local governments, in the competition for investment and talent inflows, have designed taxation incentives that skirt national restrictions. Horgos, a remote city in the autonomous territory of Xinjiang on the China's border of with Kazakhstan, had made itself into "a tax haven in the desert" for movie studios and film companies after the local authority showered tax holidays on such businesses until national and provincial authorities intervened. While local governments are not allowed to change national tax rates, including personal tax rates that range up to 45 per cent, the likes of Shanghai and Shenzhen have designed local programmes to help reduce the tax burden for qualified professionals. The new free-trade zone in Shanghai has also promised to provide subsidies to selected professionals until their tax burden is reduced to the same level as low-tax locales like Hong Kong, which has a 17 per cent salary tax. Wang Jianxun, an associate professor at the China University of Political Science and Law, said local legislatures, which answer to local Communist Party committees, would be allowed to make rules for investment project approval procedures, investment promotions as well as other less important issues where local conditions do not have nationwide implications. "Compared to the high degree of autonomy that local governments have in other countries, local governments in China have little autonomy," Wang said. "The only reason for their limited legislative powers is because the central government can't micromanage a vast country with over 2,000 counties." According to the statistics from the National People's Congress, there are over 12,000 local regulations in effect across the country, however, some are no more than a reiteration of existing national regulations. A report by the Nanfang Daily newspaper last month said that Shenzhen is the most aggressive Chinese city in making its own rules. The city, which is designed as a testing ground for economic and social change, has made 445 local laws covering, among other things, intellectual property, state asset management, bankruptcy and liquidation, labour contracts, and even human organ transfers. Of Shenzhen's local rules, about one third cover in areas where there are no nationwide standards. One important provision in Beijing's new blueprint to make Shenzhen a global example of a socialist city calls for its legislature to have greater autonomy so that it can "make flexible changes to laws, regulations and local ordinances according to its authorisation and based on Shenzhen's need for reform and innovation". An editorial in the Shenzhen Special Zone Daily, an official newspaper of the Shenzhen government, argued that the greater flexibility the city has been granted to make its own rules "is the greatest support" that Beijing has provided. Chen Bo, an adviser on the Shenzhen plan who conducts research on free trade zones at the Huazhong University of Science and Technology in Wuhan, said it basically gives the city the green light to "conduct bold trials as long as there is no explicit ban". However, it remains to be seen how far a local government can go on issues where Beijing maintains tight control. Chinese cities, including Shanghai, Tianjin, Shenzhen and even Wenzhou, have tried to bore a hole on China's capital account controls to enjoy more freedom in moving money in and out of the country, but all trials have either been aborted or are proceeding very slowly. ^ top ^

Xi Focus: Xi stresses striving for national rejuvenation ahead of PRC's 70th founding anniversary (Xinhua)
2019-09-12
Chinese President Xi Jinping on Thursday called on the whole Party and nation to strive for realizing the two centenary goals and the Chinese Dream of national rejuvenation. Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the call when visiting a revolutionary memorial site in the Fragrant Hills in suburban Beijing ahead of the 70th founding anniversary of the People's Republic of China (PRC). He urged the whole Party and nation to work together closely to consolidate the achievements made in the past seven decades and make the country better in the future. Wang Huning, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and a member of the Secretariat of the CPC Central Committee, also attended the tour. On March 23, 1949, the CPC Central Committee and Comrade Mao Zedong left Xibaipo, a revolutionary base of the CPC in Hebei Province, for Beijing. Two days later, they moved to the Fragrant Hills, making it the seat of the CPC Central Committee at that time. During the tour, Xi first visited Shuangqing Villa, where Mao Zedong had worked and lived, and then walked to another nearby place, where other members of the older generation of revolutionaries Zhu De, Liu Shaoqi, Zhou Enlai and Ren Bishi had worked and lived. After that, at a revolutionary memorial museum, he visited an exhibition on the history of the CPC Central Committee during that period, watching documentaries and reliving the history of how the CPC Central Committee moved into Beijing in 1949. The Fragrant Hills was the headquarters for the CPC to win the War of Liberation and the New Democratic Revolution, and a symbol marking the shift of the focus of China's revolution from rural areas to cities, Xi said. Commemorating this part of history is to strengthen confidence in the path, theory, system and culture of socialism with Chinese characteristics, to embolden ourselves to carry out the great struggle with many new historical characteristics, and to overcome any difficulties ahead, Xi said. He also stressed the need to always have the wholehearted support of the people, to always maintain close ties with the people and to always fight to realize the aspirations of the people to live a better life. The CPC members should always maintain the enterprising spirit, ensure the Party's purity and advanced nature, and pass the test of the new era, Xi said. "Looking ahead, China has a very bright prospect for development," Xi said. ^ top ^

1.93 mln daily entry, exit trips expected for Mid-Autumn Festival holiday (Xinhua)
2019-09-12
China's border check agencies are expected to see an average of 1.93 million inbound and outbound trips made by Chinese and foreign tourists per day during the three-day Mid-Autumn Festival holiday, the National Immigration Administration said Thursday. The figure indicated a year-on-year increase of 1.6 percent, according to the administration. It said the average daily trips at major airports in the cities of Beijing, Shanghai, Guangzhou and Chengdu are expected to reach 85,000, 109,000, 54,000 and 21,000 respectively. The administration asked border check agencies nationwide to ensure sufficient personnel and disclose passenger flow information in a timely manner to properly handle the holiday travel surges. It also advised passengers to avoid traveling during peak hours. The Mid-Autumn Festival falls on Sept. 13 this year. ^ top ^

Watchdog warns of graft acts ahead of holidays (China Daily)
2019-09-12
China's top anti-graft watchdog will attach great importance to investigating public officers who violate the Party's eight-point frugality code during the Mid-Autumn Festival from Sept 13 to 15 and National Day holidays from Oct 1 to Oct 7. With the two holidays approaching, the anti-graft department at each level will take every precaution and strengthen education for the officials to prevent them from violating the disciplines of the Communist Party of China or laws, the Central Commission for Discipline Inspection of the CPC Central Committee said in a statement on Tuesday. "Once we discover such cases, we will immediately investigate the involved officials and expose their alleged corruption cases in a timely manner to warn others, securing a clean atmosphere to celebrate the 70th anniversary of the founding of the People's Republic of China," the statement said. Fighting corruption and tightening self-supervision to rule out luxurious lifestyles and excess bureaucracy on the part of officials have been priorities of the Party since the 18th CPC National Congress in late 2012. On Dec 4, 2012, the CPC released its "eight-point frugality code", requiring officials to strictly practice frugality and clean up undesirable work styles, including bureaucratism, hedonism and extravagance. Practices such as the use of public funds to buy gifts, hold banquets and pay for holidays have since been strictly banned. Figures provided by the CCDI showed that, last year, the anti-graft authority nationwide investigated 92,215 officials who violated the Party's eight-point code, an increase of 27.5 percent compared with the number in 2017. Between January and the end of June this year, 37,207 officials involved in 26,341 cases were put under investigation for violation of the eight-point frugality code. Also on Tuesday, the CCDI exposed six typical cases of the violation of such codes involving officials that were found accepting bribes and using public funds for banquets and traveling. Their punishments ranged from a serious intraparty warning to dismissal. In one case, Huang Jun, deputy head of Pingtang county in Southwest China's Guizhou province, was given a serious intraparty warning and a serious administrative demerit for receiving 30 bottles of expensive liquor, 17 cartons of premium cigarettes and money from 2014 to 2018 when he was in office in the counties of Sandu and Pingtang. In another case, Wang Ling, general manager of a sales center at the Shanghai branch of China Unicom, one of the country's leading telecom operators, was given a serious intraparty warning and an administrative demerit for reimbursing 3,280 yuan ($460) of dinner and public bath bills. Wang was also found to have committed other disciplinary offenses. According to the CCDI, anti-graft departments at all levels will beef up supervision and encourage the public to report more clues about the public officials who act with bureaucracy, hedonism or extravagance during the holidays. Moreover, they will pay attention to cases that involve those who don't restrain themselves and still violate the Party's eight-point rules, or even abuse their power to get involved in graft, especially after the 18th CPC National Congress. ^ top ^

China expected to allow green bonds to fund clean coal projects in potential blow to climate change fight (SCMP)
2019-09-12
China's central bank is expected to take the controversial decision to include clean coal projects in the official catalogue of items that are allowed to be financed by green bonds, a technical but significant move that could put its environmental financing standards at odds with the European Union and even affect global efforts in fighting climate change. The People's Bank of China (PBOC), which oversees green bond issuance on the interbank market in China, is expected to officially allow coal projects which use enhanced technologies to cut air pollution but leave carbon emissions largely unaccounted for to be financed by green bonds, according to several people who have been briefed on the matter. The designation is important because it will encourage investors to fund such projects as climate-warming coal fired power plants while claiming they are financing green development. The PBOC has been seeking input from other government agencies, state-owned energy companies, financial institutions, green groups, and international organisations about the potential impact of the decision. "There has been very limited resistance to putting clean coal on the list of projects that can receive green bond financing," according to a person who took part in the latest round of consultations last week hosted by the China Society for Financing and Banking, an organisation under the central bank. "Without major objections, the list is likely to be adopted soon," added the source, who asked not to be named as the information has not been officially made public. The central bank declined to comment, but if confirmed, the decision would signal Beijing's endorsement of climate-warming coal projects in a country that consumes half of the world's coal and generates 60 per cent of its electricity from coal. Chinese coal consumption rose for the second consecutive year in 2018, reversing a three-year fall from 2014 to 2016, fanning fears among climate scientists that the world's largest emitter of greenhouse gases is not serious about cutting emissions. With US President Donald Trump publicly supporting "beautiful clean coal", China is also a key promoter of the loosely defined concept, which in general means relying on technologies such as refining coal before burning, high-efficiency boilers and converting coal to chemicals. Senior Chinese officials and academics have encouraged applying clean coal technologies to improve efficiency and reduce air pollutants as part of the country's ongoing campaign to reduce smog. China's National Energy Administration claimed earlier this year that China had "built the world's largest electricity supply system powered by clean coal" with 70 per cent of coal-fuelled power plants achieving "super low [air pollution] emissions". Environment groups, however, are concerned that financing coal projects through the country's green bond market would send the wrong signal to investors that could lock-in a carbon-intensive energy structure and slow down the transition to a low-carbon economy. Clean coal projects are currently not eligible to be funded with the proceeds from green bonds anywhere in the world, as the effects of emission cuts from such projects are still a matter of debate. Reuters reported in late 2018 that an analysis of data by the US Environmental Protection Agency showed that clean coal power generation regularly fails to deliver on its environmental promises, based upon the output of two North Carolina power plants studied over three years. Dr Liu Junyan, senior climate and energy campaigner with Greenpeace East Asia, said clean coal projects will lead to an overall increase in carbon emissions. "Even one green bond used for clean coal negates any progress made by dozens of other green energy projects and spoils the batch," Liu said. Making clean coal eligible for green bonds could "hold China's entire green finance sector back", Liu added. China and the European Union have been working with each other to strengthen the international green bond market since 2017, with the PBOC and the European Investment Bank establishing a joint green finance initiative to align the definitions of what projects are considered to be green. Clean coal has been a contentious issue in China's green financing policymaking, with the situation further complicated by two different sets of guidelines for green bonds issued separately by the National Development and Reform Commission (NDRC), which governs bonds issuance by state-owned enterprises, and the central bank, which oversees bond issuance on the interbank bond market. In March, the NDRC published a catalogue of green industries and projects that included clean coal, aimed at providing a basis for a consistent set of standards for green financing, including green bonds. The central bank has been pondering whether to follow the NDRC or the global standards, a second source involved in the debate said. The PBOC has an incentive to follow the global standard because it is trying to attract global investment to China. For instance, the Principles of Responsible Investors, a network of global investors that collectively manages more than US$80 trillion in assets, discourages investment in coal related projects, while the green taxonomy currently developed by the European Union does not include coal in its catalogue of permitted activities for green finance. However, the central bank may join the NDRC in endorsing coal projects in its green financing guidelines to recognise the importance of the domestic coal industry, the source said. Chinese financial institutions provided at least US$1 billion in green financing to coal-related projects in the first half of 2019, Reuters reported. China has emerged as a key player in the fledgling green bond market, becoming the second largest issuer in 2018, just behind the United States. However, an increasing proportion of China's green bonds fail to meet global criteria. In the first half of 2019, of the US$21.8 billion worth of green bonds issued in the first half of this year, only 49 per cent would have met global criteria, according to research published by the Climate Bonds Initiative (CBI), a non-profit group backing green bond standards. That was a sharp drop from 2018, when nearly 73 per cent of China's green bonds were in line with global standards, data from the CBI showed. ^ top ^

China's internet regulator orders online AI algorithms to promote 'mainstream values' (SCMP)
2019-09-11
Chinese social media platforms, websites and apps that use algorithms powered by artificial intelligence to recommend or suggest content to their users must ensure the technology steers people towards material that adheres to "mainstream values", the country's top internet regulator said. The Cyberspace Administration of China released its draft regulations on "managing the cyberspace ecosystem" on Tuesday in another sign of how the ruling Communist Party is increasingly turning to technology to cement its ideological control over society. The proposals will be open for public consultation for a month and are expected to go into effect later in the year. Since President Xi Jinping rose to power seven years ago, Beijing has significantly stepped up its efforts to "clean up" the internet. Authorities now regularly crack down on "illegal" and "harmful" content on websites, mobile phone apps, forums, instant messaging and live-streaming platforms, shutting down sites and accounts, and punishing operators with hefty fines and service suspensions. But the latest rules point to a new strategy to use AI-driven algorithms to expand the reach and depth of the government's propaganda and ideology. The regulations state that information providers on all manner of platforms – from news and social media sites, to gaming and e-commerce – should strengthen the management of recommendation lists, trending topics, "hot search" lists and push notifications. "Online information providers that use algorithms to push customised information [to users] should build recommendation systems that promote mainstream values, and establish mechanisms for manual intervention and override," it said. The government's long list of "encouraged" content includes resources that promote Xi Jinping Thought, party policies and socialist core values, that showcase the country's economic and social development, and which help to promote Chinese culture and stability. On the banned list is material that undermines national security and interests, and "harmful information" that is sexually suggestive, promotes extravagant lifestyles, flaunts wealth or hypes celebrity gossip and scandals. The idea of using "mainstream values" to rein in algorithms has gained traction among Chinese academics, state media and officials. In a commentary published last year, party mouthpiece People's Daily decried the spread of "false information and vulgar content" aided by recommendation algorithms. Despite the best efforts of some internet platforms to control content – one app company deployed half its workforce to censorship duties – the commentary said they repeatedly failed. The reason, it said, was an overreliance on technology that was designed to consider only users' interests and habits, rather than the quality of the content. "Every single technical framework, every line of code, every interface represents a choice, indicates a judgment and carries values," it said. "Technology is not an excuse for evading responsibility by claiming to be neutral, but should instead become a gateway to inspire thinking, awaken wisdom and spread mainstream values." Several social media sites have already taken steps to keep the authorities happy. Last year, the Twiter-like microblogging platform Weibo suspended its "hot search" and "hot topics" lists for a week after it was blasted for failing to properly censor material and promoting vulgar content. When the features returned they incorporated a new section titled "The New Era", which recommended topics promoting "positive energy", covering everything from the party's anti-corruption inspections to "China's contributions to the world's economic growth". ^ top ^

 ^ top ^

 ^ top ^

 ^ top ^

Tibet eyes growth and conservation (China Daily)
2019-09-13
The Tibet autonomous region has been making efforts to balance its economic growth and environmental protection and will maintain the region as one of Earth's purest lands, the region's Party secretary said on Thursday. "The region's GDP has soared from 129 million yuan in 1951 to 147 billion yuan ($21.8 billion) in 2018. And disposable income per capita of urban residents reached 33,797 yuan last year, while that of rural residents hit 11,450 yuan," said Wu Yingjie, Party chief of Tibet. Although Tibet is thriving on a path of rapid modernization, the region has made ecological conservation a top priority and remains one of the best ecological environments in the world, Wu said at a news conference at the State Council Information Office. "It now has become common sense among the public to protect the environment," he said. "Highly-polluting, energy-intensive and water-consuming production facilities are by no means allowed in Tibet. We would rather achieve a slower growth rate than cause any damage to the environment." The region has also been coordinating efforts of eco-projects and people's livelihoods by hiring over 700,000 former farmers and herders as wildlife and forest rangers in natural reserves to better protect the environment, he said. The region invested more than 11 billion yuan in ecological construction projects last year and has the largest nature reserves nationwide covering more than 413,000 square kilometers. According to the Chinese Academy of Sciences and departments on environmental protection, Tibet maintains a stable ecological structure in terms of its air, water, soil, radiation level and ecological environment. Major cities witnessed fairly good air quality on more than 95 percent of days last year, and the water quality of major rivers and lakes such as the Yarlung Zangbo River has been classified as grade I and grade II. China has a six-grade water quality grading system, with the highest three grades suitable for human consumption and the lowest "below grade V" level. With its green mountains, babbling brooks and fresh air, the region, home to distinct landscapes and rich wildlife, saw nearly 33.7 million tourist visits last year, up 31.5 percent year on year, and tourism revenue went up 29.2 percent to 49 billion yuan, according to Qizhala, the region's chairman. Though tourism is becoming one of its pillar industries, Tibet still regards protection of the plateau as a vital task for its development. It banned ordinary tourists entering the core zone of the Qomolangma National Nature Reserve in December. The ban was aimed at restoring the area's vulnerable ecosystem after years of rapid tourism development. ^ top ^

US Senate passes Uygur Human Rights Policy Act calling for sanctions on Chinese officials over Xinjiang camps (SCMP)
2019-09-12
The United States Senate has passed a bipartisan bill urging the government to take action to counter China's crackdown on Muslims and other minorities in its far western region of Xinjiang. The Uygur Human Rights Policy Act, which passed on Wednesday, appeals for the Trump administration to consider human rights sanctions against Chinese officials and prohibit the export of US goods and services to state agents operating in Xinjiang. It also calls on US President Donald Trump to condemn the abuses and urges Chinese President Xi Jinping to immediately close the massive network of internment camps. Human rights groups in the West have accused Beijing of using the camps to detain upwards of 1 million Uygurs and other minority groups and subjecting them to political indoctrination. The bill is the latest escalation of pressure from Washington over China's mass detention and surveillance programmes, which have faced a growing international outcry in the past two years. A second, similar piece of legislation is awaiting a vote in the US House of Representatives. Experts said the bill's passage represented progress on the issue but cautioned it would be only symbolic if the executive branch failed to act on its proposals. "Given the capriciousness and demonstrated willingness of the current occupant of the White House to sacrifice principle for personal political gain, one cannot help but feel that this act could become a bargaining chip to be dealt away in pursuit of a wider deal with Beijing on trade," said Michael Clarke, an associate professor at the Australian National University in Canberra. But it might also spur US allies and like-minded states to initiate their own responses to the abuses in Xinjiang, he said. Beijing on Thursday rejected Washington's move, calling it "gross interference in China's internal affairs". "We urge the US to respect the objective facts … abandon its cold war mentality and stop making use of Xinjiang matters to interfere in China's internal affairs," a foreign ministry spokeswoman said. The US should "put a stop" to the act to "avoid damaging Sino-US relations", he said. Beijing has described the camps as "vocational training centres" where "trainees" can learn Chinese and gain job skills to stop them becoming victims of "terrorism and religious extremism", which it blames for the ethnic unrest that has claimed hundreds of lives across the country over the past decade. But Uygur activists say the facilities are concentration camps and some scholars have described the crackdown in Xinjiang as "cultural genocide". Two of the bill's leading supporters, Senators Marco Rubio of Florida and Bob Menendez of New Jersey, applauded the Senate's approval of the act, calling it an important step in countering Beijing's "widespread and horrific human rights abuses". "It's long overdue for the United States to hold the Chinese government and Communist Party officials accountable for the systemic and egregious human rights abuses and probable crimes against humanity in Xinjiang," Rubio said. "I urge the House to swiftly pass this legislation and send it to the president's desk." The Trump administration has twice stopped short of imposing economic sanctions under the Global Magnitsky Act on Chinese officials responsible for the internment camps out of concern that doing so might jeopardise the ongoing trade talks between the two countries. The new bill says US Secretary of State Mike Pompeo should consider "the applicability of existing authorities, including the Global Magnitsky Act, to impose targeted sanctions" on Chinese officials who are "credibly alleged" to be responsible for human rights abuses in Xinjiang, including the region's party boss Chen Quanguo. Pompeo would then be required to submit a report to Congress within 90 days of the bill's enactment to assess whether Chen and other officials deserved sanctions. The bill also calls for the appointment of a State Department coordinator on Xinjiang and requires the department, the FBI and other federal agencies to report to Congress on issues related to security risks, the protection of US citizens from Chinese government intimidation, Beijing's disinformation campaigns and the scope of abuses in Xinjiang. ^ top ^

Vocational education and training centers in Xinjiang represents new path to address terrorism (People's Daily)
2019-09-10
Two letters about China's governance of Xinjiang were recently sent by two groups of UN ambassadors to the UN Human Rights Council, presenting two completely different views, especially in regards to the vocational education and training centers China has set up in the region. To analyze such a rare case in UN history helps us gain an understanding of Xinjiang affairs, and teaches us how to judge between right and wrong based on facts. On July 10, ambassadors from 22 countries (later increased to 24) sent a signed letter to the United Nations High Commissioner for Human Rights, expressing concerns over the human rights of Uygurs and other ethnic minority groups in Xinjiang, calling on China to halt the vocational education and training centers there. Two days later, 37 ambassadors (later increased to 50) at Geneva sent a joint letter to the UN's Human Rights Council, speaking highly of China's achievements in human rights development and commending the country's counter-terrorism and de-radicalization measures including setting up vocational education and training centers. They mentioned that safety and security have returned to Xinjiang and the fundamental human rights of people of all ethnic groups there are safeguarded. The vocational education and training centers are at the core of the two contrasting views, and what people care about is which one is accurate. Here's the background of setting up the vocational education and training centers. Xinjiang, at the hinterland of Asia, borders with eight countries, some of which are seriously threatened by violent terrorist activity. Such crimes also impact Xinjiang. In recent years, ethnic separatists, religious extremists and those affected by extremism have launched over 100 terrorist attacks in Xinjiang, killing and injuring hundreds of police officers and innocent people. A terrorist attack in April 2013 resulted in 15 deaths, including 10 Uygurs, 3 Han Chinese and 2 Mongolians. Under such circumstances, the setting up of the vocational education and training centers represents an exploration to save those involved in minor violations of the law and eliminate sources of terrorism. These centers deliver a curriculum that includes an understanding of the law, standard spoken and written Chinese, how to launch normal religious activities as well as vocational skills. Trainees will receive certificates of completion when they reach the expected criteria. Most trainees have now returned home, and over 90 percent of the trainees who graduated from these centers go on to secure stable jobs and are earning a decent income. Facts speak for the remarkable effects of vocational education and training centers. No terrorist incidents have occurred in Xinjiang for nearly three years since the education and training started. In 2018, tourists from inside and outside China totaled over 150 million, a year-on-year increase of 40 percent. The following two things deserve attention. Firstly, the 24 western countries decrying China on Xinjiang affairs have a total population of less than 600 million, and none of them are Muslim countries. On the contrary, the 50 countries from Asia, Africa, Latin America and Europe that support China have a population of 2 billion, and 28 of them are member states of the Organisation of Islamic Cooperation. Secondly, China welcomes foreigners to visit Xinjiang. Many ambassadors to China and foreign journalists have been invited to the region to visit and interview, and they hold almost the same opinion about this place – what they saw there was completely different from the reports by western media. The reports made by foreign journalists who physically went to Xinjiang were also objective. Journalist Obidov Mukhammad Dalimovich from Uzbekistan published a lengthy report after visiting Xinjiang. "We visited Urumqi, Kashgar, Aksu, Hotan and other regions and cities in Xinjiang, and we were accompanied by English, Russian, Turkish, and Japanese interpreters," Dalimovich wrote. "We were told to have free conversations with any officials or trainees at the centers, for as long as we wanted. I chose not to have an interpreter as Uzbek is similar to Uyghur." "So what are the vocational education and training centers? They are like boarding schools. Every dormitory has 3 to 4 bunk beds, as well as chairs, closets and a bathroom. The teaching buildings have classrooms and libraries, and trainees can learn 15 vocational skills in the vocational training buildings, including IT, hairdressing, gardening, hotel management and cooking." "How long will it take the trainees to complete the training? It depends on their respective capabilities. Some passed all the exams in nine months, while some took one and a half years." Dalimovich said in the article that the international society should not make a judgment based on western media, as western reports are not always objective. "I never saw the wire obstacles portrayed by western media at the vocational education and training centers we visited. And every center has a communication room equipped with telephones so that the trainees can get in touch with their families at any time. Are such centers called prisons or concentration camps?" More people realize that people should be objective and open-minded in understanding the vocational education and training centers in Xinjiang, as these centers represent a new path for the world to address both the symptom and root causes of terrorism. Such valuable experiences should be recognized and promoted, rather than being slandered and defamed. ^ top ^

Hong Kong police ban another protest as MTR to scrap overnight trains during this year's Mid-Autumn Festival (HKFP)
2019-09-12
Hong Kong police have banned a protest and rally set for Sunday citing safety concerns and past instances of violence. Last Friday, the Civil Human Rights Front (CHRF) applied for a letter of no objection for a march that would start at East Point Road in Causeway Bay and end at Chater Road in Central. The march was meant to reiterate the five core demands of the anti-extradition law movement, with organisers saying that it was not enough for Chief Executive Carrie Lam to withdraw the bill. In a letter to CHRF convenor Jimmy Sham, police said that the ban was made on the grounds of "public safety, public order and the protection of the rights and freedoms of others." Police included a list of 25 protest events since June which involved clashes. "The public meeting and march that you proposed is very close to high-risk facilities, including Causeway Bay MTR station, Wan Chai MTR station, Wan Chai Police Headquarters, Admiralty MTR station, Central Government Offices, Central MTR station, Government House and the Court of Final Appeal," police added. Protesters were likely to deviate from the proposed route and use violence to attack the buildings, the letter read. The pro-democracy coalition – which attracted millions to their previous marches this summer – will appeal the decision. Meanwhile, Hong Kong's metro operator said on Thursday that it will not provide overnight train services during Saturday's Mid-Autumn Festival, departing from past practices. The decision was made after having "conducted a risk assessment with relevant government departments in the light of the recent situation," the MTR Corporation said. Train frequencies will be stepped up from 3pm on Friday to cope with increased passenger flow, the rail operator added. The MTR has become protesters' latest target in a long summer of dissent, triggered by ill-fated extradition bill. Since June, large-scale peaceful protests have morphed into sometimes violent demonstrations over Beijing's encroachment and alleged police brutality. Separately, billionaire businesswoman Pansy Ho spoke at the UN Human Rights Council on Wednesday to condemn the "increasingly escalating violent acts of the Hong Kong radical protesters." Ho was speaking in her capacity as the head of the Hong Kong Federation of Women, of which Hong Kong leader Carrie Lam is an honourary patron. "An alarming rate of young children are running away from home to become frontline riot fighters radicalised to perpetrate criminal acts," she claimed. "Children of all ages are indoctrinated with police hatred and anti-establishment beliefs at school and online, mobilised to conduct massive school strikes." Ho said that the protests have resulted in friction in the schoolyard and in homes, adding that small businesses were also forced to close, leaving workers jobless. She called on the international community to reprimand those "promote hatred and violent extremism" in Hong Kong. ^ top ^

Hong Kong Justice Dept. mulls emergency legislation and ban on protesters from wearing masks (HKFP)
2019-09-12
Secretary for Justice Teresa Cheng said on Wednesday that the government has been studying the possibility of enacting emergency legislation as well as a law that would ban protesters from wearing masks. The Hong Kong government was first rumoured to be considering the Emergency Regulations Ordinance late last month. The legislation could grant the city's leader and her council of advisors wide-ranging powers to "make regulations on occasions of emergency or public danger." Cheng confirmed the reports but did not elaborate: "The use of the Emergency Regulations Ordinances requires a consideration of many factors and influences. This is something we are continuing to study to deal with the situation in Hong Kong." Major pro-Beijing parties the DAB and the Federation of Trade Unions also proposed last week that the government should ban masks at protests. The pro-establishment camp made similar calls in the aftermath of the 2016 unrest in Mong Kok. "As for the law banning masks, we have heard many opinions on this as [the law] has been brought up before these few months. On this point, we are also conducting legal research," Cheng said on Wednesday. The proposal to enact emergency legislation was met with alarm from the pro-democracy camp, who said it would be "disproportionate" and "akin to martial law." Democratic Party lawmaker James To said that the ERO was a "suppressive law" from the colonial-era that granted the chief executive unlimited power – allowing for arrests, detention, curfews, deportations, media censorship and property seizure. Critics have also said the use of ERO may have dire economic implications, though Secretary for Commerce and Economic Development Edward Yau said that the law would not affect economic activity as it provided a "stable and peaceful environment." Cheng on Wednesday dodged a question over whether the ERO, if used, would affect Hong Kong's status as an international arbitration centre. Since June, large-scale protests against the soon-to-be-withdrawn extradition bill have morphed into sometimes violent displays of dissent over Beijing's encroachment, democracy, alleged police brutality, surveillance and other community grievances. Demonstrators continue to demand a complete withdrawal of the bill, a fully independent probe into police behaviour, amnesty for those arrested, universal suffrage and a halt to the characterisation of protests as "riots." The latest opinion polls from the Hong Kong Public Opinion Research Institute showed that Cheng's approval rating was at 17.7 points, a record low for her and the lowest among the principal officials. Cheng said she will "continue to work hard to serve the public," and said her department would carry out prosecutions independently and impartially. More protests are planned for this weekend, including one on Sunday organised by the Civil Human Rights Front. It has yet to receive police approval. ^ top ^

HKers sing national anthem to support patriotic local resident attacked by anti-government protesters (Global Times)
2019-09-12
Hundreds of Hong Kong residents gathered at IFC shopping mall in Central on Thursday noon to sing the Chinese national anthem to support a man who had been beaten by anti-government protesters Wednesday night. They organized and participated in a flash mob to sing the Chinese national anthem at 1 pm. "We love China, We Love Hong Kong!" one of the organizers said, noting that the activity aims to show HongKongers love peace, and to reject violence. They also waved Chinese flags and cheered, "Add oil HK, Add oil China!" They also sang "Ode to the Motherland" and shouted, "Support Hong Kong police!" This flash mob was initiated by Hong Kong residents, as some of them were outraged on Wednesday night after a man with three children being attacked by anti-government protesters at Amoy Plaza. Protesters have been chanting slogans and singing the so-called protest anthem "Glory of Hong Kong" at various shopping malls in recent days. When a man, who is also believed to be a local teacher, encountered some of them at Amoy Plaza on Wednesday night, he argued with them and sang the Chinese national anthem. Protesters then allegedly beat him up, stole his smartphone, and scared his children. Online netizens in Hong Kong were outraged and spontaneously organized the flash mob. "This act (beating a man who sang national anthem) was inhuman," said a netizen on Chinese Twitter-like Weibo on Wednesday. "This father is a hero," another netizen said. A local resident surnamed Zheng told the Global Times she and her husband decided to join the activity as soon as she saw it in an online chat group. "I don't worry about those anti-government protesters who might take my photo and track me down online as I support patriotism," she said. As his husband works in the IT industry, Zheng said she worries about the current social turbulence in Hong Kong. "We may consider moving to the Guangdong-Hong Kong-Macao Greater Bay Area if the tariffs in the region are lowered," she said. ^ top ^

President Xi meets Macao's new chief executive (Xinhua)
2019-09-11
President Xi Jinping on Wednesday met with Ho Iat Seng, the newly elected and appointed chief executive of the Macao Special Administrative Region (SAR), at the Great Hall of the People in Beijing. Xi congratulated Ho on his appointment by the central government as the fifth-term chief executive of the Macao SAR. "You has long adhered to the position of loving the country and Macao, enthusiastically served the Macao society, worked wholeheartedly on public posts including as a member of the National People's Congress Standing Committee and president of the Legislative Assembly of the Macao SAR, and made contributions to the country's reform and opening up, modernization, as well as prosperity and stability of Macao," Xi said to Ho, adding that the central government fully recognizes such efforts. "Your nomination and election with overwhelming support fully show that you have won broad endorsement in Macao," Xi told Ho. This year marks the 20th anniversary of Macao's return to the motherland. For the past 20 years, under the leadership of two chief executives Edmund Ho Hau Wah and Chui Sai On, the Macao SAR government has united people from all walks of life, fully and accurately understood and implemented the principle of "one country, two systems," firmly upheld the authority of the Constitution and the Basic Law, passed on the core values of loving the country and Macao, promoted Macao's rapid economic growth, sustained improvement in people's livelihood and social stability and harmony, demonstrating to the world a successful practice of "one country, two systems" with Macao characteristics, said Xi. "One country, two systems" has proved to be a workable solution welcomed by the people, said Xi. Xi hoped that Ho will accurately grasp Macao's situation and the country's strategic development needs, unite and lead the Macao SAR government and people from all walks of life to strive for the region's long-term development and continue the successful implementation of "one country, two systems." Ho said he is honored to be appointed the fifth-term chief executive of the Macao SAR by the central government. Ho pledged to, under the leadership of President Xi and the central government, firmly implement the "one country, two systems" principle, safeguard the authority of the Constitution and the Basic Law, maintain favorable relations between the central government and the Macao SAR, uphold the central government's overall governing power, defend the country's sovereignty, security and development interests and make steady progress in implementing the "one country, two systems" principle. Han Zheng and other senior officials also attended the meeting. ^ top ^

Foxconn's Terry Gou quits Kuomintang, paving way for Taiwan presidency bid as an independent (SCMP)
2019-09-12
Taiwanese billionaire-turned-politician Terry Gou has quit the Kuomintang, dealing a blow to the island's embattled opposition party, which had urged the Foxconn founder to give up on his plan to run for the presidency. The latest twist came on Thursday when the mainland-friendly opposition party published a half-page advertisement in several major newspapers appealing for unity and asking Gou to cooperate in January's election with Kuomintang (KMT) presidential candidate Han Kuo-yu, who beat Gou in the party's primaries in July. But instead of being persuaded to give up his bid, Gou chose to leave the party he had rejoined only four months earlier. He is now expected to run as an independent candidate. "While announcing my withdrawal from the party at this time, I still have my struggles," Gou said in a statement. "Emotionally I feel dejected for not being able to continue to fight side by side with the party, but rationally I know I am doing the right thing – a thing that will turn around the fate of the Republic of China," he said. Guo said late Taiwanese president Chiang Ching-kuo would have been pained to see the KMT party he once led losing its ideals and its supporters. "The elections of seven presidents and the three rounds of transfer of power in past decades have indicated that neither the blue [mainland-friendly] camp nor the green [pro-independence] camp are able to bring hope to the Taiwanese people," he said. Gou's office issued a statement earlier on Thursday saying the tycoon's loss of faith in the KMT had led to his decision to resign. "Taiwan people will never agree with such an out-of-date party as well as conservative and archaic central standing committee members who put their own interests before the party," Gou's office said in a statement. "This has contradicted what Mr Gou thought when he [decided] to return to the party." "For this, Mr Gou will withdraw from the KMT immediately," the statement said. Gou has claimed the primaries were conducted unfairly so as to favour Han, and has since refused to meet Han and KMT chairman Wu Den-yih. Thursday's advert, signed by 31 senior KMT figures including Wu, former chairman Lien Chan and Taiwan's former president Ma Ying-jeou, called for unity in the century-old party so that members could work together to "save" the Republic of China (ROC), referring to Taiwan by its official name. "The elections of the president and legislators in 2020 are crucial because they will decide the fate of the ROC and the future of Taiwan and its people," the ad said. It called on Gou to work with Han so that all KMT supporters could vote for the latter to increase Han's chances of defeating incumbent Tsai Ing-wen of the independence-leaning Democratic Progressive Party, thereby "saving the ROC and rescuing cross-strait peace". Beijing, which sees Taiwan as a breakaway province and has not ruled out using force to unify it with mainland China, has suspended exchanges with the self-ruled island since Tsai's election in 2016. It has also been increasingly confrontational in staging war games around the island and poaching several of its diplomatic allies. The KMT gave Gou an honorary citation in April to confirm his party membership after the billionaire had shown an interest in entering the presidential primaries. To stand as an independent, Gou must submit his application by Tuesday. Independent candidates then have until November to gain enough support to be eligible to enter the presidential poll. The KMT's information and cultural affairs director Chen Mei-hua said the KMT primaries were conducted in a fair, just and open manner. The losers in the polls should adjust to the frustration they felt after the race, she said. On whether Guo's honorary citation would be retracted, Chen said the party would follow standard procedures on such matters. Lee Che-hua, the KMT's organisational affairs director, accused Gou of damaging party unity. "What has the KMT done to make you do this?" he said. Han's office also expressed "deep regret and disappointment" over Gou's decision, saying the presidential candidate would do all he could to rally party supporters behind him. Tsai has not commented on Gou's decision, but his move could benefit her as it is likely to split the KMT vote. The DPP said Gou's withdrawal was expected, given his reluctance to meet Han and Wu after the primaries. Gou instead spent a month overseas. When he returned last month he teamed up with Taipei mayor Ko Wen-je and former parliament speaker Wang Jin-pyng in what local media described as an attempt to form an alliance to support his presidential bid. Ko said on Thursday that it was time for Taiwan to do away with the heavy-handed political approach of both the KMT and the DPP. "If Gou decides to run for president … I will give him my vote because he has the vision best suited to running" Taiwan, he said, adding that Han was not good enough to be president. The latest opinion polls released by the Cross-Strait Policy Association on Thursday showed Tsai leading Han by 50.1 per cent to 33.7. Assuming Gou joined the race, the poll said he would have 23.2 per cent of the vote, against Tsai's 38.7 per cent and Han's 26.7 per cent. ^ top ^

Defaults among lower tier government-backed bond issuers in China could rise as US$560 billion matures in next two years (SCMP)
2019-09-13
China's debt market is at a crucial juncture. With 3.8 trillion yuan (US$560 billion) of bonds issued by government affiliates maturing in the next two years, defaults among lower tier issuers could rise, according to S&P Ratings. But the chances of default vary widely among China's state-owned enterprises (SOEs) and local government financial vehicles (LGFVs) as a debilitating trade war with the US slowed China's economy to a record low of 6.2 per cent in the second quarter. "Large state-owned enterprises (SOEs) with a large impact on the market are likely to see increased support from the government, but the smaller, lesser known, less impactful SOEs, particularly those engaged in sectors hit by the trade war, might see defaults rise," Charles Chang, an analyst at BNP Paribas, said during S&P Ratings annual credit roadshow in Hong Kong, on Wednesday. Gloria Lu, an infrastructure analyst at S&P, said local governments remain committed to supporting SOEs and LGFVs' fundraising plans to finance infrastructure development. But the fundraising capacity varies between governments at different levels. "For example, a provincial government with stronger sources of income will have much more resources that could be moved around to support an LGFV, compared to a city-level or county-level government," she said. The ratings of LGFVs vary, depending on their risk profile. Investors used to have implicit faith in government-backed bonds issued by SOEs and LGFVs. However, recent incidents, including late payment of interest and skipping of call options has left investors wondering if the chances of default are rising if the governments backing these issuers are unable to bail them out once they are in trouble. Jilin Transportation Investment Group, an LGFV in northeast Jilin province, said on Monday that it plans to skip the call option on a 4.64 per cent 1.5 billion yuan perpetual note. Instead, it will pay an increased coupon of around 8 per cent on the note. In August, Qinghai Provincial Investment Group, another LGFV, delayed interest repayment on its 2020 dollar bonds for five business days from the original coupon due date. "The burning question is whether debt-strapped governments will be able to quickly bailout LGFVs that become distressed," said Lu. "If defaults or bankruptcies among high-profile LGFVs become epidemic, it would erode market confidence, tarnish government reputations, and destabilise the financial system. "It could also shut down financing to other local state-owned enterprises, at least initially. This would be highly disruptive at a time when China is counting on infrastructure development, along with other fiscal stimuli, to sustain economic growth and social stability." In a separate report on Tuesday, analysts from Moody's Investors Service said that they expect offshore LGFV bond issuance in 2019 to exceed last year's record US$22 billion, while at the same time they see some US$21 billion of bonds maturing from the second half of this year through 2020. Strong issuance growth in the first half of the year was driven by China speeding up infrastructure investment as a way to arrest a slowdown in the economy. The momentum will continue in the second half, spurred by the US Federal Reserve's interest rate cut in August, it said. ^ top ^

Foreign companies look to pursue greater business opportunities in China (People's Daily)
2019-09-12
Executives of multinational corporations expressed that they see China as a major investment destination, and they are interested to continue to expand investment in China anticipating greater benefits. "We will continue to invest in China and benefit from it," said Harley Seyedin, President of American Chamber of Commerce (AmCham) in South China, at the 2019 China International Fair for Investment & Trade (CIFIT) and the Belt and Road Investment Congress, which is being held in the southeast coastal city of Xiamen. It is the 17th time AmCham South China has attended the fair. This time, it brought more than 100 companies to the event, including large multinationals such as Apple, Deloitte, Johnson & Johnson, Nike and KPMG. The chamber said in a report that nearly all its member companies remained profitable in 2018 in China, and they still have a strong interest in investing in China, mainly due to the growth potential of the Chinese market and its high return on investment. China has been continuously rolling out new measures to upgrade industries and attract investment. These have provided powerful support for the development of multinational enterprises in China, said Cai Hua, government affairs director of US food processor OSI Group's China office. China has maintained steady growth in attracting foreign investment according to the latest World Investment Report 2019 (Chinese version) released by the United Nations Conference on Trade and Development (UNCTAD). The report also shows that the global outward direct investment dropped by 13 percent year-on-year to $ 1.3 trillion in 2018, with weak growth in international investment. However, China attracted $139 billion worth of foreign investment in 2018, accounting for more than 10 percent of total investments worldwide. China continues to be the world's second largest recipient of foreign investment. ^ top ^

China splashes money on pig production (Global Times)
2019-09-09
China's top economic planner the National Development and Reform Commission (NDRC) and the Ministry of Agriculture and Rural Affairs (MARA) are handing out one-off subsidies of no more than 5 million yuan ($701,000) to newly constructed pig farms, expansion projects, and farms above the designated size to stabilize hog production. A Chinese expert said on Monday that the move by the central government is expected to shore up hog production at a time when African Swine Fever (ASF) has seriously cut the production of the staple food and pork prices have kept rising. Pork accounts for more than 60 percent of China's meat consumption, and prices of the meat rose more than 25 percent in August from July, according to media reports last week. The circulars issued by the NDRC and MARA stipulated that large-scale pig farms that are set up before 2020, farm expansion projects, and relocation projects from environmentally protected areas are entitled to central budget subsidies, which are aimed at boosting the development of large-scale pig farming. The sum of the subsidies ranges from 500,000 yuan to 5 million yuan and the funds will mainly be used to support animal quarantine, the treatment of animal waste, improvement of the environment in pig farms and automation. Li Guoxiang, a research fellow at the Rural Development Institute of the Chinese Academy of Social Sciences, told the Global Times on Monday that the government policy is aimed at encouraging pig farmers to raise hogs at a time when their confidence is low and the fear of the impact of ASF is high. The main purpose of the financial incentives is to entice farmers and investors to invest in pig farming, so that with increased supply the runaway pork prices could be subdued in the coming months. "Although the periodical issue of overcapacity can still cut pork prices even under the current circumstances, daring pig farmers could actually make a return by tapping government subsidies and benefiting from the current high pork prices," Li said. The circular by the two ministries also announced subsidies of no more than 30 million yuan for 100 large pig farms with capacity of at least 100,000 hogs across the country. China, the biggest pork consumer in the world, has culled 1.16 million hogs since ASF was first reported in August 2018. China had recorded 143 outbreaks of ASF, which is fatal for pigs but harmless for humans, as of July 3 this year, MARA said in July. ^ top ^

China welcomes DPRK-US dialogue resumption (Xinhua)
2019-09-13
China on Thursday said it welcomed the positive signals from the Democratic People's Republic of Korea (DPRK) on resuming talks with the United States, calling on the US side to take practical measures to ease tensions and promote talks. State Councilor and Foreign Minister Wang Yi made the remarks when responding to a query at a joint news conference held Thursday with Malaysian Foreign Minister Saifuddin Abdullah. "This is an important step taken by the DPRK side to promote the process of political settlement of the Korean Peninsula issue, and China welcomes it," said Wang. "The benign interaction between the parties over time has also accumulated conditions for the resumption of dialogue," Wang said, stressing that China is pleased to see the DPRK and the United States resume dialogue in late September as scheduled. According to news reports, the DPRK early this week proposed a meeting with the US, saying it is willing to sit with the US side at an agreed-upon time and place in late September to comprehensively discuss issues they had taken up thus far. Wang said that the practice to only put forward conditions and draw up a list, or even try to force the other side to make unilateral concessions through "maximum pressure" will never work. "This is true in the DPRK-US dialogue, as well as in other country-to-country dialogues." "Since last year, the DPRK has taken a series of positive measures, and on these grounds requested the US to meet them halfway with a positive response. We think this is fair and reasonable," said Wang, who hoped that the US side will also take practical measures in this regard, and make due efforts to ease tensions and promote talks. Also, the UN Security Council should consider initiating discussions on the reversible provisions of the DPRK sanctions resolution at an appropriate time, so as to help the DPRK ease the economic and livelihood difficulties caused by the sanctions, and create conditions and provide support for a political settlement of the Korean Peninsula issue, he suggested. China will continue to play a constructive role and make unremitting efforts to maintain peace and stability on the peninsula, promote the establishment of a peace mechanism on the peninsula and realize the denuclearization of the peninsula, he said. ^ top ^

John Bolton's exit 'a win' for North Korea in Trump-Kim denuclearisation talks, experts say (SCMP)
2019-09-12
North Korea will welcome US President Donald Trump 's firing of his national security adviser as a sign of softening attitudes in Washington as the regime seeks to restart stalled denuclearisation talks, according to seven analysts canvassed by This Week in Asia. Trump announced John Bolton's departure on Tuesday night, saying his "services are no longer needed" after repeated policy disagreements. Widely regarded as among the most hawkish figures in Washington, Bolton argued in favour of pre-emptive military action against the North and supported the "Libya model" of denuclearisation under which Muammar Gaddafi shipped key materials to the United States only to be toppled with the help of US forces seven years later. The former US ambassador to the United Nations had repeatedly been singled out for invective in North Korean state media, which once labelled him "human scum" and a "war maniac". "Pyongyang has viewed Bolton as the biggest threat even since the time of the George HW Bush administration given his hardline views such as advocating regime change in North Korea," said Ryo Hinata-Yamaguchi, a visiting professor at Pusan National University in South Korea. "Given that North Korea has always expressed their dislike of Bolton, they would feel that Trump is flexible in meeting their demands. North Korea could move the goalpost in an attempt to persuade Trump to remove the other hardliners. "Moreover, Bolton's departure would be interpreted as a relief … but also an opportunity for Pyongyang to lure Trump into favourable agreements," said Hinata-Yamaguchi. Kim Jong-ha, a security expert at Hannam University in Daejeon, South Korea, said Bolton's exit would give the North greater confidence of being able to extract concessions such as the signing of a peace treaty to bring a formal end to the Korean war, which Pyongyang has long demanded as a precursor to the removal of US troops from South Korea. "Kim Jong-un is likely to expect the US policy on North Korea to be somewhat eased by the replacement of Bolton," Kim said. Leif-Eric Easley, associate professor of international studies at Ewha Womans University in Seoul, said while the end of Bolton's tenure had more to do with US foreign policy challenges in Iran, Afghanistan and Venezuela, the timing was convenient for Washington's diplomacy with Pyongyang. "Kim Jong-un can spin this personnel change in Washington as a win in North Korean domestic politics. That would increase the likelihood of denuclearisation talks restarting soon." Daniel Pinkston, a former Korean linguist with the US Air Force who now lectures at Troy University in Seoul, said the North Koreans would feel better able to appeal directly to Trump's deal-making instincts and distrust of the traditional foreign policy establishment. "They've always wanted to deal with Trump one-on-one," Pinkston said. Srinivasan Sitaraman, North Korea expert and Clark University professor, pointed out: "Now that Bolton is out of the way and as the UN General Assembly gets underway next week in New York, there is no one to stop Mr Trump from making a deal with North Korea." Speaking after Bolton's exit, US Secretary of State Mike Pompeo played down the likelihood of a shift in foreign policy, cautioning foreign leaders against any "assumption" about such changes. Soo Kim, a former Korea analyst with the CIA, said Bolton's departure did not necessarily indicate there would be a sharp shift in policy. "I just don't see the administration suddenly shifting from the current approach to sanctions relaxation," she said. Trump's removal of Bolton comes after North Korean Vice-Foreign Minister Choe Son-hui said on Monday that Pyongyang was willing to have "comprehensive discussions" about its nuclear programme before the end of September, while warning Washington against adhering to an "old scenario". The overture came on the heels of repeated short-range missile launches by Pyongyang since June – although the North followed its outreach with the launch of two more projectiles into the sea just hours later. The push for a resumption of talks also comes after Chinese Foreign Minister Wang Yi met with North Korean Foreign Minister Ri Yong Ho last week during a three-day visit to Pyongyang. Negotiations between Washington and Pyongyang have been stalled since February, when Trump walked out of his second summit with Kim in Hanoi, Vietnam. Trump told media the summit collapsed after the North Korean side demanded a complete lifting of sanctions, while North Korean officials insisted they had only sought partial sanctions relief. The Hanoi summit came after the two leaders signed a vaguely-worded statement in Singapore last year committing the North to work toward the "complete denuclearisation of the Korean peninsula". Trump and Kim agreed to return to working-level talks during a brief third meeting in June, but negotiations have yet to get off the ground. Lim Jae-cheon, a North Korea studies professor at Korea University in Seoul, said that Pyongyang was likely to reject any demand from the US for a "big deal" on denuclearisation during resumed negotiations. "The North appears to prefer a step-by-step approach," said Lim. "If North Korea-US talks restart, the North may want to know specific concessions that the US can provide in a gradual denuclearisation process." ^ top ^

Exports of mineral products, textiles and precious metals make up 95.7 percent of total export (Montsame)
2019-09-12
In the first 8 months of 2019, Mongolia traded with 143 countries from all over the world and total trade turnover reached USD 9.5 billion, of which USD 5.4 billion were exports and USD 4.1 billion were imports. In August 2019, exports and imports reached to USD 815.6 million and USD 584.0 million, respectively. Compared to the previous month, exports increased by USD 183.1 million and imports decreased by USD 29.4 million. In the same period of 2019, total foreign trade turnover increased by USD 1.0 (11.9%) billion, of which exports increased by USD 715.8 million (15.3%) and imports increased by USD 289.2 million (7.6%) compared to the same period of previous year. In the first 8 months of 2019, foreign trade surplus reached USD 1.3 billion, which increased by USD 426.6 million from USD 869.2 million in the same period of 2018. In August 2019, foreign trade surplus reached to USD 231.6 million. Compared to the previous month, foreign trade surplus increased by USD 212.5 million. The 715.8 million increase in exports from the same period of previous year was due to the increases of USD 294.8 million in bituminous coal and USD 199.8 million in gold, unwrought or in semi-manufactured forms exports. The USD 289.2 million increase in imports from the same period of previous year was mainly due to USD 57.2 million increase in mineral products imports, especially, USD 99.0 million increase in diesel imports and USD 176.0 million increase in transport vehicles and its spare parts. Exports of mineral products, textiles and textile articles, natural or cultured stones, precious metals jewelry make up to 95.7 percent of total export. On the other hand, 68.6 percent of imports are mineral products, machinery, equipment, electric appliances, transport vehicle and its spare parts and food products. ^ top ^

Cabinet news in brief (Montsame)
2019-09-12
At its regular meeting dated on September 11, the Cabinet made the following decisions. The Cabinet adopted Mongolia-Kyrgyz Intergovernmental Cooperation Agreement on Counter-Terrorism and issued a government resolution. By establishing the agreement, it will become available to exchange information on international terrorism and take multi-sided measures such as detecting, preventing and intercepting planned terrorist attacks. The First Congress of Scientific Workers will be held in Ulaanbaatar city between September 26 and 27. Minister of Finance was assigned to provide required funding for the congress from the Government reserve fund. The Cabinet approved a resolution on marking the 30th anniversary of establishment of diplomatic relations between Mongolia and the Republic of Korea. In frames of the anniversary celebration, the sides planned to organize 30 events throughout a year. To make public transport services more accessible and operative, the Governor's Office of the Capital City developed an infrastructure project and introduced it at the meeting. The Governor's Office planned to fully change and renew structure of public transport routes, introduce electromagnetic transportation system, establish aerial vehicle transport in underpopulated areas and special road buses and upgrade payment system. ^ top ^

Discover Mongolia 2019 international forum to be held (Montsame)
2019-09-12
The 17th annual Discover Mongolia conference will be organized on September 26-28 by the Ministry of Mining and Heavy Industry, the Business Council of Mongolia and the Mongolian National Mining Association. The event is aimed at showcasing key private sector led projects that are ongoing or advancing towards development, discussing political and public sentiment ahead of the 2020 Parliamentary election, government legislative plans, including proposed constitutional amendments, whether it leads to change of mining laws and other issues genuinely impacting investors and financiers. The head of the organizing committee of the Discover Mongolia 2019 B.Munkhdul noted this year's conference will touch on issues concerning Mongolia's resource sector, public and private partnership in the mining sector, its geological potential, including coking coal and mining and guests of mining industry to deliver presentation on latest topics of the resource industry, such as Oyu Tolgoi development update, launch of Mongolia's first state-owned enterprise on international capital markets and so on. "The Government of Mongolia revoked a number of mining exploration licenses and permits in recent times, raising concerns by local and foreign mining companies. Therefore, topics covering mining activities and licenses will be deliberated by the participants, mining investors and companies allowing them to further express their voices to the government". Mr.B.Munkhdul added "Delivering correct and reliable information on state policy on mining, responsible mining, mining business environment and the current situation of mining sector in Mongolia is one of the purposes of this event. In addition some side events are planned for this year's forum". On September 26 ahead of the event, a presentation meeting of Discover Mongolia 2019's sponsors and international investors with the Minister of Mining and Heavy Industry and government officials will be held to exchange information on mineral industry and legal environment regarding the mining sector of Mongolia. Furthermore, the Bank of Mongolia is also planning to give a presentation to the participants on monetary policy and national 'Gold-2' program and Oyu Tolgoi site visit will be organized on the sidelines of the conference. ^ top ^

Jennia Jin
Embassy of Switzerland