Switzerland

• Nestle to weigh US$1 billion sale of local Chinese brands Hsu Fu Chi and Yinlu (SCMP)

Foreign Policy

• China-linked hackers stealing military and government text messages, says cybersecurity firm FireEye (SCMP)
• China urges India to respect its territorial sovereignty (Xinhua)
• China, US carry forward trade talks despite APEC cancellation (Global Times)
• China says it won't sit back if US deploys intermediate range missiles in Asia (SCMP)
• Chinese premier calls for openness for closer China-Uzbekistan ties, better SCO cooperation (Xinhua)
• French President Emmanuel Macron to attend Shanghai import expo as EU continues push for China trade agreement (SCMP)
• Chinese professor accused of spying by Belgium, barred from entering Schengen Area (SCMP)

Domestic Policy

• Xinhua Headlines: Key CPC session highlights strength of China's system, governance (Xinhua)
• Telecom 'big three' kick off 5G commercialization (China Daily)
• China must relax residency curbs, land rights to offset effect of trade war, former finance minister says (SCMP)
• Blockchain endorsement from China's Xi Jinping could lead to fraud and speculation, technology analysts warn (SCMP)
• Xi Focus: Xi's letters highlight China's commitment to greater opening-up (Xinhua)
• 'Bigger incentives will mean bigger public buy-in' for China's social credit schemes (SCMP)

Beijing 

Shanghai 

Guangdong 

• Chinese city of Shenzhen is using big data to become a smart, 'socialist model city' (SCMP)

Tibet 

• U.S. urged to stop using Tibet-related issues to interfere in China's internal affairs (Xinhua) 

Xinjiang

• China urges U.S., Britain to stop distorting facts on Xinjiang-related issues (Xinhua)
• Statement at UN supports China on Xinjiang (China Daily)

Hongkong

• China's Communist Party elite wrap up meeting with pledge to safeguard national security in Hong Kong (SCMP)
• Halloween protests in Hong Kong: police fire tear gas in Mong Kok, Central and Sheung Wan as people denounce alleged force brutality and march against mask ban (SCMP)

Macau

Taiwan

• US bill to protect Taiwan from Chinese diplomatic pressure wins congressional committee approval (SCMP)
• Taiwanese court orders police to compensate injured 'Sunflower Movement' protesters (HKFP)

Economy

• No rush for China to cut rates: experts (Global Times)
• Beijing to offer offshore Eurobonds (Global Times)

DPRK

• Respected North Korea envoy Stephen Biegun tapped as Donald Trump's Deputy Secretary of State (SCMP)
• North Korea fires two projectiles into sea in apparent attempt to ramp up pressure on US over stalled nuclear negotiations (SCMP)
• North Korea rebuffs South, refuses talks over historic flagship resort (Global Times)

Mongolia

• Ministers meet representatives of Asian Infrastructure Investment Bank (Montsame)
• Interest of establishing long-term partnership expressed (Montsame)

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Nestle to weigh US$1 billion sale of local Chinese brands Hsu Fu Chi and Yinlu (SCMP)
2019-10-30
Nestle is weighing options including a sale for two ailing Chinese units after years of attempting to turn them around, people familiar with the matter said. The food giant has been reviewing its ownership of Hsu Fu Chi, a local confectionery brand, and Yinlu, known for its ready-made Chinese porridge, according to the people. It is seeking more than US$1 billion for its controlling stakes in the two companies, the people said, asking not to be identified because the information is private. Nestle acquired both companies in 2011 as it sought to tap burgeoning demand in China, only to find itself confronted with sluggish growth a few years later. Since becoming chief executive officer in 2017, Mark Schneider has been weeding out the Swiss company's portfolio, jettisoning assets such as US chocolate brands, a dermatology business and a life insurance unit for about US$15 billion total. Nestle, which makes Nespresso coffee and Gerber baby food, has made almost two dozen divestments under Schneider. It could opt to sell only part of its stakes in one or both of the Chinese units, according to one of the people. No final decisions have been made, and there is no certainty the deliberations will lead to a transaction, the people said. A spokesman for Nestle declined to comment. Mergermarket reported earlier that Nestle was conducting a strategic review of the Yinlu business, citing unidentified people. Yinlu has sales of about 1 billion Swiss francs (US$1 billion), Nestle said earlier this month. About two-thirds of the business is made up of local products like peanut milk and congee, whose sales have been "disappointing," the CEO said at the time. The rest is ready-to-drink coffee, which has been going better. "We're working very, very hard to address that situation," Schneider said on a call with analysts on October 17. He has repeatedly said Nestle will sell businesses that are non-strategic if it's not possible to fix them. Hsu Fu Chi, which makes confectionery products and snacks, probably generates annual revenue of some 700 million francs (US$700 million), according to Vontobel analyst Jean-Philippe Bertschy. Nestle has tried to improve the packaging of Hsu Fu Chi chocolates and added nutritious snacks to appeal to more health-conscious millennial consumers. ^ top ^

China-linked hackers stealing military and government text messages, says cybersecurity firm FireEye (SCMP)
2019-11-01
A state-linked Chinese hacking group is using malware to steal SMS text messages from high-ranking military and government targets, according to cybersecurity company FireEye. The hacking technology, known as MESSAGETAP, "allows China to efficiently steal data from multitudes of sources from one location", Steven Stone, FireEye's director of advanced practices, said in a statement. "Espionage-related theft and intrusions have been long occurring, but what is new is the vast scale due to the use of this tool." The company's finding, released in a blog on Thursday, underscores the growing concerns about China's use of technology for espionage and the theft of intellectual property. Telecommunications pose a special concern, as the US seeks to persuade its allies not to build their next-generation networks with tools from Chinese companies such as Huawei Technologies. But even on networks that China has not built, sophisticated hacking operations might allow access to data. In 2019 alone, FireEye observed eight attempts to target telecommunications entities by groups with suspected links to the Chinese government. Four of these hacking attempts were conducted by the group known as APT41 that is now using MESSAGETAP. APT41 began "state-sponsored cyber-espionage missions as well as financially motivated intrusions" as early as 2012, FireEye said. But the cybersecurity company said it discovered the use of MESSAGETAP only this year while probing a hack of a telecommunications network provider. "During this intrusion, thousands of phone numbers were targeted, to include several high-ranking foreign individuals likely of interest to China," Stone said in the statement. "Any SMS containing keywords from a predefined list such as the names of political leaders, military and intelligence organisations and political movements at odds with the Chinese government were also stolen." Even though FireEye has detected the use of MESSAGETAP by China-linked hackers, it is difficult to defend against the malware. "There are virtually no actions that a user can take to protect these messages on their devices or even gain awareness to this activity," FireEye said in the statement. ^ top ^

China urges India to respect its territorial sovereignty (Xinhua)
2019-11-01
China on Thursday urged India to respect its territorial sovereignty and abide by relevant agreements reached between the two sides after the South Asian country announced in the day the establishment of the so-called "Union Territory of Jammu and Kashmir" and "Union Territory of Ladakh," placing part of Chinese territory under Indian administration. Foreign Ministry spokesperson Geng Shuang made the remarks when asked to comment on the issue. "China deplores and firmly opposes this. India is challenging China's sovereign rights and interests by unilaterally revising domestic law and administrative division," said Geng. "This is illegal, null and void. It will neither change the fact that the relevant region is under China's actual control nor produce any effect." He urged India to take concrete actions to safeguard peace and tranquility in the border region and create favorable conditions for a proper settlement of the border issue with China. China's position on the issue of Kashmir is consistent and clear. It is a dispute left over from history and should be resolved properly and peacefully in accordance with the UN Charter, relevant Security Council Resolutions and bilateral agreements. Parties to the issue should resolve disputes through dialogue and consultation to maintain peace and stability in the region, said Geng. ^ top ^

China, US carry forward trade talks despite APEC cancellation (Global Times)
2019-10-31
Trade consultations between China and the US are going smoothly and the two sides are moving the talks forward, with more phone calls planned, despite the cancellation of the APEC summit in Chile, where an interim trade deal was widely expected to be signed, according to Chinese officials and experts on Thursday. Chile's decision to scrap the APEC summit sparked widespread concern about the fate of the first phase of the trade agreement between China and the US, particularly in the US, where officials and businesses appear more anxious to sign the deal to end the costly trade war, analysts noted. In China, officials seem to be cool-headed and more focused on the negotiation process and analysts argued that, though the cancellation adds more work to the two teams, the most important thing is to first agree on a balanced deal. Following much speculation overnight, the Chinese Ministry of Commerce (MOFCOM) issued a brief statement on Thursday, stressing that the two sides had been keeping close contacts and "the consultation work is progressing smoothly." "The two sides will continue to push forward consultations and other works as planned," read the statement, adding that leaders of the two negotiating teams will talk on the phone on Friday. Geng Shuang, a spokesperson for the Chinese Foreign Ministry, also echoed the MOFCOM statement at a press briefing on Thursday, but noted that leaders of the two countries remain in contact through "various means." Though MOFCOM did not mention the APEC episode, it was apparent that the statement was aimed at quelling concerns over the trade consultations, analysts noted. As negotiators continued to make "positive progress" in recent talks, the two sides were widely expected to sign the first phase of the trade agreement when the leaders of the two countries were supposed to have met on the sidelines of the APEC summit as originally planned. "Certainly, that will have some impact on the arrangement because it means the two teams now have to find an alternative location on top of consultations over the text of the deal," Song Guoyou, director of Fudan University's Center for Economic Diplomacy, told the Global Times on Thursday. As of press time, it was still unclear whether the two sides had discussed a potential location for the signing or whether the two sides will be able to reach a deal within the "same time frame," as the White House said it hopes to do so. "We look forward to finalizing Phase One of the historic trade deal with China within the same time frame," Hogan Gidley, a spokesman for the White House, said in a statement on Thursday. "We're awaiting potential information on another location." However, reaching a balanced deal is more important than finding a location for the signing of the trade deal, said He Weiwen, a former senior Chinese trade official and an executive council member of the China Society for World Trade Organization Studies. "The easy part is to change the location; the most important part is to reach an agreement," he told the Global Times on Thursday. The White House statement and widespread speculation in the US media underscored a great sense of urgency among US officials and the public to reach a trade agreement with China, as the trade war continues to weigh on businesses and economic growth. US economic growth further slowed to 1.9 percent year-on-year in the third quarter, down from 2 percent in the second quarter and 3.1 percent in the first quarter, according to official US data on Wednesday. "[The White House] cannot fight two wars at the same time," said a Beijing-based observer, who spoke on condition of anonymity, referring to the US-initiated trade war with China and the political fight within the US, where President Donald Trump faces impeachment. "There is almost no chance [for Trump] to be elected, [without a deal]," he noted. On the Chinese side, while actively pushing forward a trade deal, officials are more pragmatic and calm after having fought for more than a year, said Huo Jianguo, vice chairman of the China Society for World Trade Organization Studies. "If the US wants to sign a deal, then China welcomes it; however, the precondition is that the deal would have to be balanced," Huo told the Global Times on Thursday, adding that if the US wants to reach a deal, it should show "more sincerity" instead of undercutting the talks. Huo noted that even as they are anxiously trying to reach a deal with China, US officials, including US Vice President Mike Pence and US Secretary of State Mike Pompeo, have in recent days continued to smear China and interfere with China's internal affairs related to the island of Taiwan, Hong Kong SAR and the Xinjiang Uyghur Autonomous Region. "This does not help in any way to ease tensions between the two sides," he said. ^ top ^

China says it won't sit back if US deploys intermediate range missiles in Asia (SCMP)
2019-10-31
China will not take a "laissez-faire" approach if the US deploys intermediate range missiles in Asia-Pacific, the Chinese defence ministry said on Thursday. The ministry spokesman Wu Qian expressed China's "resolute opposition" to such plan and urged Washington to take a responsible attitude and act with caution, to "avoid wrongdoing". "If the US forces its way through, it would severely sabotage regional countries' security interests and harm peace and stability," Wu told a regular press conference. Wu accused the US of attempting to gain unilateral military advantages by quitting the Intermediate-Range Nuclear Forces Treaty. "The US withdrawal from the INF Treaty is yet more evidence it is pursuing unilateralism and shirking international responsibilities, which has direct negative impact on global strategic balance and stability, regional peace and security as well as international arms control systems," he said. The US is continuing to develop security ties in Southeast Asia but a senior American diplomat insisted on Thursday that it was not seeking to dominate the region. David Stilwell, the assistant secretary of state for East Asia and the Pacific said the US view was that "without security, you can't have trade". "There has to be a security element. Nobody is better suited to it than the US, mostly because we include others in that security apparatus in terms of allies and partners," he said. He also encouraged the 10-member Association of Southeast Asian Nations to group together and resist China's moves to militarise the South China Sea, where four Asean members – Vietnam, the Philippines, Malaysia and Brunei – have disputes with China. The 1987 INF Treaty is a disarmament deal between the US and Soviet Union in the cold war, which removed the two superpowers' land-based missiles with a range of 500km to 5,500km (310-3,420 miles). The US formally pulled out from the Treaty on August 2 accusing Russia of violating the deal, and test-fired the first previously banned missile on August 19. US Defence Secretary Mark Esper said at the time that he wanted to deploy ground-based missiles in Asia "sooner rather than later" to counter China, 80 per cent of whose missile inventory falls within the INF range, and began a tour in the region looking for possible bases. China in the past 32 years has built a powerful ground-based medium and intermediate range missile arsenal, capable of hitting US military bases and allies in the region. Last week, Russian defence minister Sergei Shoygu condemned the US's withdrawal from the INF Treaty at a regional security forum in Beijing, saying that such move was targeting Russia and China, and warned of the likelihood of the US deploying INF missiles in Europe and the Asia-Pacific. ^ top ^

Chinese premier calls for openness for closer China-Uzbekistan ties, better SCO cooperation (Xinhua)
2019-10-31
Chinese Premier Li Keqiang on Thursday called for commitment to openness in promoting cooperation with Uzbekistan as well as other member states of the Shanghai Cooperation Organization (SCO). Li made the remarks ahead of his first official visit to Uzbekistan as Chinese premier starting Friday in a signed article published on local newspapers. Calling Uzbekistan a friendly neighbor and cooperation partner of China, the Chinese premier said it was the shared commitment to openness that contributed to glorious chapters in the two countries' history. "Today, openness has again become a key word for the development and revitalization of both countries," Li said in the article entitled "Promoting Openness and Cooperation for Common Development." "China sees itself as Uzbekistan's partner for open cooperation," said Li. "With a shared commitment to openness, we will support and facilitate each other's development as we open up further, and leverage our comparative strengths to deepen mutually beneficial cooperation and create and share development opportunities together." "China stands ready to form stronger synergy between the Belt and Road Initiative and Uzbekistan's development strategy, and develop a better-structured architecture for even more productive cooperation," he added. While in Uzbekistan, Li will also attend the 18th Meeting of the Council of Heads of Government of the Member States of the SCO. The Chinese premier said: "I look forward to working with other leaders of SCO member states to reaffirm the Shanghai Spirit, expand mutual openness, raise the level of trade and investment liberalization and facilitation, advance regional economic integration, and build an open and inclusive platform for mutually beneficial cooperation." Noting that the world is faced with complex changes, rising protectionism and unilateralism, and mounting downward pressure on the global economy and trade, Li said openness today requires the courage to rise above barriers such as various restrictions and prejudices. He said that it is China's hope to work with all SCO member states to firmly uphold the UN-centered international system and the WTO-centered multilateral trading system, give strong support to multilateralism and free trade, and promote open cooperation between the SCO and the rest of the world. "We stand ready to work with Uzbekistan, other SCO member states and the rest of the world to pursue greater openness and better achieve common development," he added. ^ top ^

French President Emmanuel Macron to attend Shanghai import expo as EU continues push for China trade agreement (SCMP)
2019-10-31
A number of European leaders – including French President Emmanuel Macron and incoming EU trade commissioner Phil Hogan – will visit this year's Shanghai import expo as the European Union continues its push for a trade and investment agreement. Macron's visit to the expo, which runs from November 5-10, will be tied with an official state visit and a stop in Beijing, where he is expected to discuss climate and trade issues with his Chinese counterpart Xi Jinping. Hogan, the current EU agriculture commissioner, is also visiting China's two largest cities, and is expected to take over as the bloc's trade chief once the new commission is confirmed. Both Macron and Hogan are likely to push for the completion of the EU-China Comprehensive Agreement on Investment, which has been under discussion for the past six years. Both sides pledged to complete the deal by the end of next year at the annual EU-China summit in April and the EU delegation in Beijing said talks were now taking place on a monthly basis. Last week, during a visit to France, Chinese Foreign Minister Wang Yi said he was "very confident" that the deal would be completed on time. Beyond pushing for the agreement, Macron is expected to promote French companies and seek to reduce the country's €29.2 billion (US$32.5 billion) trade deficit with China. One possible market is China's rapidly growing appetite for luxury brands, which hit US$115 billion last year and is expected to grow to US$170 billion by 2025, according to a report by McKinsey. The complete list of foreign government leaders attending the Expo is not finalised, though Macron and Hogan will be joined by Greek Prime Minister Kyriakos Mitsotakis, Jamaican Prime Minister Andrew Holness and Serbian Prime Minister Ana Brnabic. For last year's inaugural event the EU called for a more "genuine open and level playing field" for European companies in China. It issued a list of 10 policy requests to further open up China's markets, including a call for greater transparency and an end to unfair subsidies. ^ top ^

Chinese professor accused of spying by Belgium, barred from entering Schengen Area (SCMP)
2019-10-30
A Chinese professor who headed a Confucius Institute in Brussels has been barred from entering the Schengen Area for eight years after being accused of espionage, amid growing scrutiny of the Beijing-run cultural offices that have been established at universities around the world. Song Xinning, former director of the institute at the Vrije Universiteit Brussel (VUB), said he had been accused by authorities in Belgium of supporting Chinese intelligence activities in the city – an accusation he denied. The Schengen Area comprises 26 European countries that have abolished passport and other types of controls at their mutual borders. The Belgian newspaper De Morgen reported on Tuesday that VUB had ignored a warning from the State Security Service about the institute's activities. The article said also that Song had acted as a recruiter for Chinese intelligence services and hired informants from the Chinese student and business communities in Belgium. The Belgian government did not immediately reply to requests for comment. "I found this accusation very laughable as I do not even have students in Belgium. My PhD students are in China," said Song, who is also a professor at Renmin University in Beijing. He denied sharing contact and work information with the Chinese authorities, or receiving help from them after his travel ban became public. He said he suspected the decision to impose the ban had been influenced by the United States, claiming it was made after he had rejected an offer by an American diplomat to "cooperate with American intelligence units". Song said he had met the envoy at several events held by the VUB Confucius Institute and on other occasions. "From my memory, he put it rather bluntly, asking, 'I know you cooperate with the Chinese intelligence service, can you cooperate with us?'" He said he immediately rejected the request, which he said was made in early April at a time when he was waiting for his work permit and visa to be extended to the end of July, which would have marked the end of his three-year term in charge of the Confucius Institute and his return to Beijing. Song said he was granted a work permit but told by Belgian immigration authorities on July 30 that his visa would not be renewed because he "supported Chinese intelligence activities". "I was warned at the meeting [with the American diplomat] that if I did not cooperate, there would be serious consequences," he said. "So obviously this is the result. I was prepared." Song named the diplomat he said had spoken to him, but the Post was unable to contact that person to verify his claims. The US embassy in Brussels declined to comment on the issue. Song said he was told by the Belgian embassy in Beijing in September about the ban on him entering the Schengen Area. He is now appealing the ruling with the help of a Belgian lawyer, who Song said was in possession of a report from Belgium's security services that accused the academic of having ties to Chinese security officials, luring Belgian scholars to spy for China and making plans to retire to Belgium. Song said he did know Geng Huichang, a former Chinese state security minister, as they had both taught at Renmin University, and admitted to mingling with European scholars at academic conferences in China. As for where he intended to live after he finished work, he said: "I plan to retire in China." Confucius Institutes, which are overseen by China's education ministry, have been set up in more than 480 higher education institutions around the world. Over the past decade they have come under increased scrutiny from Western governments over allegations they have links to espionage activities. Several institutes in the US and Australia have been forced to close due to allegations they had undue influence on campus, while several Chinese academics and researchers have been investigated, dismissed and even arrested in the US on suspicion of stealing intellectual property or failing to disclose funding ties with Chinese universities. In Europe, the Confucius Institutes at the University of Leiden in the Netherlands, Stockholm University in Sweden and University Lyon in France have all been closed. And the British Conservative Party's human rights commission earlier this year launched a campaign for schools to stop partnering with the institutes pending the results of a review. Ingrid d'Hooghe, a researcher at the Leiden Asia Centre and Clingendael Institute who specialises in higher educational ties between Europe and China, said scrutiny of Chinese academics was increasing in Europe. Song's case was an example of how authorities in Europe seemed to have been "strongly encouraged by the US", she said. The Chinese academic, who has now returned to his job at Renmin University, spent three years living in Brussels with his wife. He also worked from 2007-10 at UNU-CRIS, a United Nations research institute in Bruges. Song is expected to be replaced at VUB by Zhou Jun from Sichuan University, who is currently awaiting his visa. "If people believe everything we [Confucius Institutes] do is related to intelligence collection, there is little that can be done about it," Song said. Professor Jonathan Holslag, who works at VUB and is also a special adviser to the European Commission, said it was "not a surprise" that Song had been banned from entering Belgium. "Song is a nice, polite gentleman but the institute is clearly an instrument of propaganda … and shouldn't be part of the academic community," he said. The worrying part was its ability to "identify young and bright students with a potential to join the EU at a later stage" and to influence young European students with an uncritical, positive view about China, he said. ^ top ^

Xinhua Headlines: Key CPC session highlights strength of China's system, governance (Xinhua)
2019-11-01
The 19th Central Committee of the Communist Party of China (CPC) concluded its fourth plenary session in Beijing on Thursday with the release of a communique. Xi Jinping, general secretary of the CPC Central Committee, made an important speech at the session presided over by the Political Bureau of the CPC Central Committee. The plenary session heard and discussed a work report delivered by Xi, who was entrusted by the Political Bureau of the CPC Central Committee, according to the communique. The session reviewed and adopted the CPC Central Committee's decision on some major issues concerning how to uphold and improve the system of socialism with Chinese characteristics and advance the modernization of China's system and capacity for governance. Xi explained the draft document to the plenary session. "The system of socialism with Chinese characteristics is a scientific system developed by the Party and the people through their long-term practices and explorations," the communique read. All the work and activities of China's national governance are carried out in accordance with the system of socialism with Chinese characteristics, said the document, noting that the country's system and capacity for governance are a crystallization of the system of socialism with Chinese characteristics and its enforcement capability. The session fully affirmed the work of the Political Bureau of the CPC Central Committee since the Third Plenary Session of the 19th CPC Central Committee, acknowledging its endeavors that led to major achievements in various causes of the Party and the country despite complicated situations marked by increasing risks and challenges at home and abroad. The communique said, as proven by practice, the system of socialism with Chinese characteristics and China's system for governance are systems of strong vitality and huge strength. These systems are able to push for the continuous progress of the country with nearly 1.4 billion people and ensure the realization of the two centenary goals toward the rejuvenation of the Chinese nation, which has a civilization of more than 5,000 years, it added. The communique said China's state and governance systems enjoy notable strengths in the following aspects: Upholding the centralized and unified leadership of the CPC, following the CPC's scientific theories, maintaining political stability and ensuring that the country keeps advancing in the direction of socialism; Seeing that the people run the country, promoting the people's democracy, maintaining close ties with the people and relying on them to push forward the country's development; Ensuring law-based governance in all fields, building a country of socialist rule of law, and guaranteeing social fairness and justice and the people's rights; Ensuring the whole country works together and stimulating the enthusiasm of all aspects to mobilize resources for major undertakings; Upholding equality between all ethnic groups, creating a strong sense of community for the Chinese nation to work jointly for common prosperity and development; Upholding the dominant role of the public sector and common development of economic entities under diverse forms of ownership, the distribution system whereby distribution according to labor is dominant and a variety of other modes of distribution exist alongside it, the synergy between the socialist system and the market economy, and continuously unlocking and developing the productive forces; Upholding common ideals and convictions, values, and moral standards, promoting China's fine traditional culture, revolutionary culture and advanced socialist culture, as well as inspiring the people to embrace shared ideologies and mindsets; Adhering to the vision of making development people-centered, and continuously guaranteeing and improving people's livelihoods and improving people's wellbeing to achieve common prosperity for everyone; Continuing reform and innovation, moving with the times, and promoting self-improvement and development to build a society full of vitality; Selecting officials based on integrity and ability and on the basis of merit regardless of background to cultivate more talented individuals; Keeping the armed forces under the Party's command and ensuring that the people's armed forces are completely loyal to the Party and the people so as to safeguard China's sovereignty, security and development interests; Upholding the principle of "one country, two systems," maintaining lasting prosperity and stability in Hong Kong and Macao, and promoting the peaceful reunification of China; Adhering to the unity of independence and self-reliance and opening up to the rest of the world, taking an active part in global governance, and continuing to make contributions to the building of a community with a shared future for humanity. "All these notable strengths are the fundamental basis for fostering stronger confidence in the path, theory, system and culture of socialism with Chinese characteristics," the communique said. The session stressed upholding and improving the fundamental, basic and important institutions that underpin the system of socialism with Chinese characteristics. A set of institutions that are well conceived, fully built, procedure based and efficiently functioning must be built to better transform institutional strength into effective governance, it added. The session vowed to see that institutions in all fields are notably improved when the CPC marks its centenary before the modernization of China's system and capacity for governance is basically achieved by 2035 and realized in full as the People's Republic of China celebrates its own centenary. The session underscored: Upholding and improving the system of institutions for Party leadership to improve its capacity to practice scientific, democratic and law-based governance; Upholding and improving the system of institutions through which the people run the country and developing socialist democracy; Upholding and improving the system of socialist rule of law with Chinese characteristics and improving the Party's capacity for law-based governance and law-based exercising of state power; Upholding and improving the government administration system of socialism with Chinese characteristics. A law-based government administration with well-defined functions and duties shall be built, it added; Upholding and improving China's basic socialist economic system and promoting the high-quality development of the economy; Upholding and improving the system to make advanced socialist culture prosperous and developed to consolidate the common ideological foundation upon which all people are united and work together; Upholding and improving the livelihood system for protecting both urban and rural residents and working to meet people's ever-increasing needs for a better life; Upholding and improving the social governance system based on collaboration, participation and common interests, as well as maintaining social stability and defending national security; Upholding and improving the system for developing an ecological civilization and promoting the harmonious coexistence between humans and nature; Upholding and improving the Party's absolute leadership over the armed forces and ensuring that they will faithfully fulfill their missions in the new era; Upholding and improving the system of "one country, two systems" and advancing the process toward the peaceful reunification of China; Upholding and improving the independent foreign policy of peace and working to build a community with a shared future for humanity; Upholding and improving the Party and state oversight systems and strengthening checks on and oversight over the exercise of power. The session was attended by 202 members of the CPC Central Committee and 169 alternate members of the CPC Central Committee. Also present were members of the Standing Committee of the CPC Central Commission for Discipline Inspection (CCDI), senior officials of relevant departments, a number of delegates to the 19th CPC National Congress who work at the grass-roots level as well as experts and scholars. The plenary session decided to admit two alternate members of the CPC Central Committee -- Ma Zhengwu and Ma Weiming -- into the Central Committee as full members. The session also reviewed and adopted a CCDI investigation report on the severe violations of Party discipline and the law by Liu Shiyu, confirming the punishment previously decided by the Political Bureau of the CPC Central Committee that he would be placed on probation within the Party for two years. ^ top ^

Telecom 'big three' kick off 5G commercialization (China Daily)
2019-10-31
China officially kicked off commercialization of 5G services on Thursday, with the nation's big three telecom operators rolling out their 5G data plans. The move shows consumers can finally pay to access the superfast speed of 5G, as more than 86,000 5G base stations have already entered services in China. Chen Zhaoxiong, vice-minister of industry and information technology, the nation's industry regulator, said China has been working hard to extend 5G network coverage. By the end of this year, more than 130,000 5G base stations will enter into service to support the network, marking one of the world's largest 5G deployments. The big three telecom operators, China Mobile, China Unicom and China Telecom, for the first time chose to price tariffs by internet speed rather than data allowance. For instance, China Unicom prices the data plan which allows peak speed of 500Mbps at 199 yuan. For those who want to enjoy peak speed of 1Gbps, they have to pay at least 299 yuan. Lyu Tingjie, a telecom professor at Beijing University of Posts and Telecommunications, said although the thresholds of 5G data plans are far higher than that of 4G services, the price per gigabyte of 5G is lower. About 497,000 5G smartphones have already been shipped to the Chinese mainland in the past three months, data from the China Academy of Information and Communications Technology shows. The three telecom operators have already pushed 5G preregistration with plentiful discounts and free 5G data allowance and managed to attract interest from more than 10 million subscribers after the National Day holiday. ^ top ^

China must relax residency curbs, land rights to offset effect of trade war, former finance minister says (SCMP)
2019-10-31
China should speed up reform of its household registration and land-use systems to offset the impact of the trade war with the United States by encouraging the free flow of capital and labour, an outspoken former Chinese finance minister said. China's decades-old hukou registration system, which divides the population into rural and urban citizens, and its rigid collective land-ownership model have long been criticised for dragging on economic growth and exacerbating the country's urban-rural divide. But Beijing has so far been reluctant to make major changes to the policies. In an article published on Tuesday, Lou Jiwei, who led China's Ministry of Finance between 2013 and 2016, urged the central government to undertake rapid reform of the two systems in the face of rising populism and anti-globalisation. "The current household registration system [in China] is a significant and unreasonable institutional problem," Lou wrote in an article published by the economic magazine Comparative Studies. The former minister also argued that China's restrictive rural land-ownership model was a legacy of China's command economy and that it segregated the countryside from urban areas, preventing Beijing from developing a unified "socialist market economy" with free flows of labour and capital. "The defects of the two fundamental systems have caused a series of economic, social and political problems … it is really time for us to solve them," said Lou, who is now director of the foreign affairs committee of the Chinese People's Political Consultative Conference (CPPCC), a key government advisory body. Lou's remarks were published as hundreds of top Communist Party leaders gathered in Beijing this week to discuss governance as part of the fourth plenary session, an annual policy setting conference. The meeting comes amid increasing calls from inside China to deepen economic and social reforms and further open up its market in a bid to support a slowing economy. Lou is famous for being one of the most outspoken reformist officials in China. Earlier this year he also said the government's "Made in China 2025" industrial policy was a waste of taxpayers' money. Critics have long described China's hukou system as a form of internal passport that limits freedom of movement and has stalled urbanisation. Under the system, rural migrant workers cannot access services such as education and health care in cities, meaning they and their families must return to their hometowns or regions to do so. This has stopped many rural residents from moving to urban areas or forced them to move back to their home villages as China's economic growth has slowed to its lowest rate in decades. The flow of migrants seeking industrial jobs in cities has declined substantially, Lou said, resulting in a shortage of workers at a time when the nation's overall labour force was shrinking. Slower-than-expected land and hukou reforms were among the major risks facing China's urbanisation and economic growth, Morgan Stanley economists lead by Robin Xing said in a note on October 15. A number of local governments have taken steps to relax hukou restrictions, as sluggish population growth and fewer rural labourers seeking work in urban areas had put pressure on fiscal revenue and economic momentum in some small and medium-sized Chinese cities. The southern province of Hainan announced last week it would remove hukou restrictions and abolish the distinction between agricultural and non-agricultural households. That came after the National Development and Reform Commission, the country's top economic planning agency, called on small and medium-sized cities to relax hukou restrictions to provide an incentive for 100 million migrants to move to cities by 2020. But there is still some reluctance among policymakers in China's bigger cities like Shanghai or Beijing, who fear that easing hukou restrictions would lead to an influx of rural migrant workers that would burden public services. Lou said China's land-use system posed an even bigger problem for the economy. Under existing laws, individuals cannot own rural land because it is owned by collectives. Farmers have a right to sign long-term leases and build on the land, but they must transfer the land back to collectives without compensation if they move to an urban area. Because of the difficulties involved in moving to cities, many rural migrants hold onto their homesteads as a fallback plan. "Relevant information shows that at least one-quarter of homesteads in underdeveloped [rural] areas have been abandoned, a huge waste of valuable land," Lou wrote. China should transfer rural land ownership from local collectives to the state – mirroring the scheme for urban land – and allow farmers to freely transfer the rights to build on their land, Lou added. China's current rural land-use system was adopted in the early 1980s, but it now seen as a hindrance to consolidation of small farms into larger, more productive industrial agricultural units – a problem highlighted by the battle over soybean imports amid the US-China trade war. Yang Baolong, president of China Soybean Association, said in August that China needed a "revolution in the collective ownership of rural land". In August, China revised a land administration law to give farmers more property rights, improve the transparency of rural land acquisitions and extend the duration of farm leases for another 30 years from 2027. Still, some observers say there is more work to be done to reduce inefficiency and ramp up development. "Many idle or inefficiently used homesteads are still zombie assets that could delay urbanisation and large-scale farming to a certain extent," Liu Zhengshan, deputy director of China strategy and policy research at the Dongbei University of Finance and Economics, wrote after the new law was passed. ^ top ^

Blockchain endorsement from China's Xi Jinping could lead to fraud and speculation, technology analysts warn (SCMP)
2019-10-31
China's blockchain technology frenzy following President Xi Jinping's endorsement last week has raised concerns over the potential for fraud as well as duplicate or worthless projects. The technology, which is virtually unknown to the general public and is in early stages of application in China, underlies bitcoin and other cryptocurrencies, many of which are still banned in China. However, Xi said China should treat blockchain as a vital technology that would allow the country to master other areas of the digital economy. The endorsement from China's leader prompted a surge in the price of bitcoin, while in China, companies and institutions involved with the development of blockchain applications were celebrating Xi's speech as a blessing for the industry. One blockchain society even officially proposed that China should designate October 24, the day Xi delivered his endorsement, as "Blockchain Day". Analysts are now wary that Xi's endorsement could lead to interest groups ranging from local officials to tech start-ups and cryptocurrency investors to misuse and distort the technology to further their own agendas. This could lead to financial bubbles, fraud and subsequently, social unrest. Precedents for this include the 2015 stock market rout and the collapse of some high-profile peer-to-peer (P2P) lending platforms that wiped out millions of retail investors, and brought thousands to the streets looking for their money back. "When there is high level political support for a technology, the sceptics who point early to the risks are drowned out by people who fall into the right political line and trumpet the technology," said Martin Chorzempa, a researcher from the Washington-based Peterson Institute for International Economics. However, Chorzempa warned China not to repeat the mistakes of its P2P lending frenzy, which saw too much money pumped into an unproven technology, leading to extreme financial speculation. He also argued that blockchain has low efficiency and is difficult to implement across society as a whole. "The People's Bank of China has said that blockchain cannot handle the volume of transactions they need for [its version of a central bank digital currency]. They know it is inefficient. The question after [Xi's] speech is, does that technically correct position remain politically acceptable to hold?," he said. "I believe if China widely implemented blockchain today, its growth would slow even more rapidly. Blockchains are famously inefficient and only should be used in specific scenarios where the goal is some degree of decentralisation." Beijing often attaches great importance to technological development as it seeks to close the gap with the United States. Technological upgrading of traditional manufacturing, the use of big data and the roll out of artificial intelligence have been among the innovations championed by the government in recent years. Blockchain is the latest technology to catch the national imagination, with Xi's speech overriding concerns among scientists, technology professionals and financial investors about its efficacy. "It's worth discussing whether it is appropriate to use the force of an entire nation to promote a specific technology," said Ding Shuang, chief Greater China economist of Standard Chartered Bank. "I believe decision-makers are emphasising more [of blockchain's] technological attributes rather than its financial applications." However, it is easy to turn a popular subject into financial speculation, Ding warned, a lesson China should have learned from the outcry over the collapse of P2P lending platforms, which were supposed to help solve the country's funding problems, but many later proved to be fraudulent Ponzi schemes. Valuations of dozens of developers of blockchain applications or products rose by their daily limit of 10 per cent on Monday, the first trading day after Xi's speech, while the price of bitcoin has risen by nearly 25 per cent in the past week, surpassing US$10,000 at one point. More than 20 provinces and municipalities have adopted blockchain-promoting policies since it was first mentioned in a State Council planning document in 2016 and there are already 10 blockchain industrial parks nationwide. The autonomous region of Tibet and the province of Guizhou have announced efforts to use blockchain for poverty alleviation, a signature Xi campaign, and to improve financial transparency. Local media in Zhejiang province reported that the provincial government has used blockchain to streamline medical insurance for patients, while a project in the remote western province of Ningxia is reported to have used the technology for quality control of agricultural products. Qu Qiang, a researcher with the international monetary institute at Renmin University of China, said the decentralised nature of blockchain technology jarred sharply with China's central planning of its economy and vision for its digital currency, which would also be managed centrally. He also warned that it could lead to widespread fraud, similarly to the P2P sector. "Many years after the notion was brought forward, we seldom heard that any countries or companies use blockchain to tackle real problems or create new values," he said. "We are now preoccupied with preventing financial risks, such as illegal deposit-taking, frauds, and high leverage ratio. None of them can be really helped by blockchain technology." ^ top ^

Xi Focus: Xi's letters highlight China's commitment to greater opening-up (Xinhua)
2019-10-31
China's resolve to pursue high-quality development and greater reform and opening-up was underpinned at a number of recent summits, conferences and other events it hosted since October. Chinese President Xi Jinping has paid high attention to these events. From Oct. 11 to 29, Xi has sent a total of 17 congratulatory letters in 19 days. In these letters, "development" was a frequently used word. China has adopted the vision of innovative, coordinated, green and open development that is for everyone, boosted its economy for high-quality development and fully implemented the UN 2030 Agenda for Sustainable Development, said Xi in a congratulatory letter to the first sustainable development forum that opened last Thursday. Amid mounting downward pressure, China's economy has shown sufficient resilience and great potential. The country's GDP expanded 6.2 percent year on year in the first three quarters of 2019 to about 69.78 trillion yuan (about 9.89 trillion U.S. dollars), according to the National Bureau of Statistics (NBS). In a congratulatory letter to the 2019 China International Digital Economy Expo that opened on Oct. 11, Xi also stressed that China has paid close attention to the development of the digital economy, accelerated digital industrialization and industry digitalization and pushed forward deep integration of the digital economy and real economy to promote high-quality economic development. With nearly 1.4 billion people, China has always been a good example of an open economy and a promoter of global cooperation. The door of China's opening-up will only open wider and wider, the business environment will only get better and better and opportunities for global multinationals will only be more and more, Xi said in a congratulatory letter to the first Qingdao Multinationals Summit that opened on Oct. 19. Global entrepreneurs are welcome to invest in China, strive for mutual benefit and win-win outcomes and jointly create a better future, Xi said. The improving business environment is widely applauded by market entities that are operating businesses in the country. During the first three quarters of the year, foreign direct investment into the Chinese mainland expanded 6.5 percent year on year to 683.21 billion yuan, according to the NBS. During the period, more than 30,000 new foreign-invested enterprises were established in the country. The president noted in a congratulatory letter to the fourth Understanding China Conference which opened Saturday that as a contributor to and a beneficiary of economic globalization, China will remain steadfast in pursuing the path of peaceful development and an opening-up strategy of mutual benefit to continue adding impetus to an open world economy. China will work with other countries to promote economic globalization and make it more open, inclusive, balanced and beneficial to all, he said. ^ top ^

'Bigger incentives will mean bigger public buy-in' for China's social credit schemes (SCMP)
2019-10-27
Chinese authorities need to ramp up incentives in their social credit schemes if they are to really encourage "good behaviour", according to a researcher who studied two cities piloting non-punitive systems. Dev Lewis, a fellow at the Hong Kong-based think tank Digital Asia Hub, said he studied test schemes in Xiamen, Fujian province, and Fuzhou, Fujian province, and found only a minority of residents opting in to the cities' low-key programmes. "I think the key will be when you get good incentives for people to join and then they will – then, you will have that scaling up. [Right now] the rewards are not that great anyway, so people don't really care that much," he said. But other researchers warned that a focus on incentives could just be official cover for intruding into people's lives. Xiamen and Fujian are two of more than 40 local governments across the country testing systems of rewards and punishments to promote "trustworthiness" in society. The pilot schemes are separate from central government blacklists of "untrustworthy" individuals and businesses barred from air and train travel as well as access to financial markets. But the authorities aim to scale the schemes up into a national system by 2020. Lewis, whose study was funded by a grant from Yenching Academy at Peking University, said that residents in the 40-plus schemes were assessed on their "adherence to laws, promise keeping and credit in daily life", with some cities using scores as a tool. Residents could boost their scores by paying their utility bills on time, donating blood, volunteering, and working in the public sector. And only public data from government bodies and state-owned enterprises was used to calculate the score. While people who opted into the Xiamen and Fujian schemes were not penalised for a bad score, the rewards for their good behaviour were small. In Fuzhou, for example, citizens with high credit scores could join an express queue for government services, while high scorers in Xiamen could borrow library books without paying a deposit. "In its present iteration the scores seem more like a government version of a loyalty scheme – all citizens get access to the basic service however some can opt-in for fringe benefits for convenience and comfort," Lewis said. So far, only 21 per cent of Fuzhou residents and 5 per cent in Xiamen have registered for the programmes. Lewis said this was because of the limited range of rewards for good behaviour, as well as authorities' lack of promotion of the schemes. "[Authorities] haven't gone on a full-on propaganda blitz that you are usually accustomed to seeing with new policies," Lewis said. "According to people we interviewed, it's pretty much been left to a word-of-mouth strategy." "Being lower-level tier two and three cities, Xiamen and Fuzhou are less in the limelight so they have more freedom to experiment and innovate," Lewis said. But Lewis took aim at the systems' lack of transparency around the metrics used to score people. He said factors such as "employment strength" and "personal ability", which were used in Fuzhou's social credit system, were difficult to quantify. Shazeda Ahmed, a doctoral candidate who is researching China's social credit system at the University of California, Berkeley, said local governments were likely less willing to risk imposing punitive measures that may be excessive or ineffective. "Their resources are limited, social credit pilot tests don't strike me as being among their most pressing priorities," she said. Adam Knight, a Leiden University doctoral student who is also researching the topic, said the authorities' emphasis on rewards over punishments might be "largely a tool for propaganda" that served as a cover for the social credit system's intrusiveness into people's lives. Knight said there had been a noticeable trend in the past few years to "introduce a more positive slant to the system". "The idea behind it is to create user buy-in among the population for a policy that is otherwise incredibly invasive … under such a system of incentives and user buy-in, citizens 'want' to be rated," he said. ^ top ^

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Chinese city of Shenzhen is using big data to become a smart, 'socialist model city' (SCMP)
2019-11-01
Shenzhen is experimenting with a "party and technology" development model as it aims to become a "socialist model city". The city, which is known for its technology industry, was told by Beijing in August to find "the best modern governance practices that promote high quality and sustainable development so it can be held up as an example of civilised society of law and order where people enjoy a high degree of satisfaction". About a month later, He Lifeng, the minister in charge of China's National Development and Reform Commission, published an article in People's Daily, the mouthpiece of the Chinese Communist Party, in which he said Shenzhen faced "unprecedented new tasks" which bore great significance for the rest of the country. "Shenzhen is an international and innovative city. The problems encountered in the modernisation of our country are likely to appear in Shenzhen first," the article said. "We will be the world's first modern powerhouse not built on the road of capitalism, but by practising socialism with Chinese characteristics. The leadership of the Communist Party of China is the most essential feature of socialism with Chinese characteristics." Xie Maosong, a professor at the University of the Chinese Academy of Sciences, said it was Shenzhen's pioneering role that had made such a pilot experiment important. "Being a socialist pilot demonstration zone, the governance models that have proven successful in Shenzhen will be replicated in other Chinese cities," he said. "That is why watching Shenzhen's public administration and other developments will give you a very good idea of what China's governance model will look like in the next few years." While "modern governance practises" may sound hollow to most outsiders, the rallying call by Beijing has a familiar ring to officials and cadres in Shenzhen who have pioneered measures that infuse party rules with modern technology in enhancing their effectiveness and impact for a number of years. Speaking on the sidelines of the recent World Internet Conference in Wuzhen in Zhejiang province, a Shenzhen official, who declined to be identified because he is not authorised to speak on the issue, said the city began its big data and smart city plan in 2013. The goal then was "collecting as much data as possible, and mining the data deeply to provide useful information to leaders for the management of any potential risks and the provision of public services for people's convenience", he said. "This is one of our most concrete answers to the leadership's call to modernise our governance system and capability." Shenzhen established a Government Services and Data Management Bureau to handle big data collection and analysis in February, he said. As well as data sets covering populations and the economy, the official said Shenzhen had also built "thematic databases" that could empower officials who handled social disputes and public grievances. As party of the city's plan, Shenzhen also launched its "Weaving Net Project" in 2013 under which it divided the city into thousands of data zones and designated an "information collector" to each zone. The system also uses 2 million surveillance cameras dotted about the city. Li Shihua, head of the video division of the city's public security bureau, said at a forum in August that big data and video analysis were widely used. "About 80 per cent of criminal cases are solved with the help of video surveillance. Almost all criminal cases can be solved in 24 or 48 hours with the help of these technologies," he said. Shenzhen is also the first Chinese city to launch a "party building measurement indicator" backed by big data and artificial intelligence. Hu Jin, who runs the project said: "Now we have a standardised, scientific and quantifiable method for measuring the quality of party building." According to the anonymous Shenzhen official, the city had taken a much bolder data strategy than Hong Kong in using big data to enhance governance. "The biggest difference between Hong Kong and Shenzhen is the mindset," he said. "We are constantly looking for more efficient and advanced ways to run and govern the city, while Hong Kong believes in its 'small government, non-interventionist' approach." Chen Dongping, president of the Shenzhen Institute of Smart City and Big Data, said Shenzhen could benefit from smart governance as it had a large population but only a small number of civil servants. "In 1979, Shenzhen's population was 310,000, but by September this year, our system has already recorded 22.89 million population data sets," he said. Hu Xiaoqing, deputy director of Shenzhen's economic trade and information technology commission, said in an article by local newspaper Nanfang Daily in September that the government's data platforms had accumulated more than 22.1 billion pieces of data about 20 million people, 3.6 million companies and 14 million properties. Chen said there were only about 40,000 civil servants in Shenzhen, of which about 25,000 were police officers. "Shenzhen's civil service is actually very small so it has to take the digital path to resolve its manpower shortage problem," he said, adding that the city had a relatively big pool of technology specialists and had enjoyed an early start in data collection. He said that in 2013, Shenzhen was able to carry out predictive analysis of the public demand for education and health care services. "As a national pioneering area, Shenzhen is about six or seven years ahead of other cities in China [in smart city implementation]. The experience we have accumulated should serve as a lesson for other cities, so they won't repeat our mistakes," he said. Shenzhen's e-government reforms had also helped the government to review its approval processes and streamlining of its organisational structure, Chen said. "The process of simplifying government approvals was a trigger for the government to carry out the restructuring reform. By the same token, this is going to be the same path that we are taking in building a smart city." ^ top ^

U.S. urged to stop using Tibet-related issues to interfere in China's internal affairs (Xinhua)
2019-10-30
China strongly urged the United States to stop using Tibet-related issues to interfere in China's internal affairs, a foreign ministry spokesperson said Tuesday. Spokesperson Geng Shuang made the remarks in response to a query about Sam Brownback, the U.S. ambassador at large for international religious freedom, recently meeting with the Dalai Lama in India and his words about picking a successor to the Dalai Lama. Pointing out that the 14th Dalai Lama is a political exile under the cloak of religion who has long been engaging in anti-China separatist activities, Geng said China resolutely opposes any form of contact between any foreign official and the Dalai Lama. "Relevant words and deeds of the U.S. official violated the U.S. commitment to recognize Tibet as part of China and to not support 'Tibetan independence.' China is firmly opposed to this move," Geng told a press briefing. The reincarnation of living Buddhas is an institution of succession unique to Tibetan Buddhism and is governed by fixed religious rituals and historical conventions. The reincarnation system is respected and protected by such legal instruments as the Regulations on Religious Affairs and Measures on the Management of the Reincarnation of Living Buddhas, Geng said. "The institution of the reincarnation of the Dalai Lama has been in existence for several hundred years. The 14th Dalai Lama himself was found and recognized following religious rituals and historical conventions and his succession was approved by the then central government. Therefore the reincarnation of living Buddhas including the Dalai Lama must comply with Chinese laws and regulations and follow religious rituals and historical conventions," said the spokesperson. "We strongly urge the U.S. side to stop any form of contact with the Dalai clique, stop making irresponsible remarks, stop using Tibet-related issues to interfere in China's internal affairs, and do more to advance China-U.S. mutual trust and cooperation," he added. ^ top ^

China urges U.S., Britain to stop distorting facts on Xinjiang-related issues (Xinhua)
2019-10-30
China on Wednesday urged countries including the United States and Britain to stop distorting facts on Xinjiang-related issues and make real and concrete efforts to support the healthy development of the international human rights cause. Foreign Ministry spokesperson Geng Shuang made the remarks at a press briefing when he was asked to comment on what happened during the dialogue between the Third Committee of the United Nations General Assembly and the Committee on the Elimination of Racial Discrimination. On Oct. 29, a few Western countries including the United States and Britain delivered a common speech during the dialogue, criticizing China's Xinjiang policy, while more than 60 others countries also made common speeches supporting China's position on Xinjiang, praising China's great progress in human rights protection and opposing interference in China's domestic affairs under the name of human rights. "The anti-China show put on by a handful of Western countries was a disgraceful failure," Geng said. He said the vocational and educational training institutions in Xinjiang were set up as preventive measures to combat terrorism and radicalization, which have turned the security situation around. For three years, not a single violent or terrorist incident has taken place in Xinjiang, and the region now enjoys social stability and unity among all ethnic groups, said Geng, adding that people there are now living a happy life with a stronger sense of fulfillment and security, while their rights to life, health and development are also significantly improved. "We urge countries like the United States and Britain to stop calling white black and standing on the opposite of facts," Geng said. Geng noted that in March this year, the 46th session of the Council of Foreign Ministers of the Organization of Islamic Cooperation (OIC) adopted a resolution, which spoke highly of and fully recognized the efforts China has made for Chinese Muslims. In July, ambassadors from more than 50 countries to the UN office at Geneva co-signed a letter to the president of the UN Human Rights Council and High Commissioner for Human Rights, praising China for its respect and protection of human rights in fighting terrorism and deradicalization. "These events fully indicated to us what is the overwhelming opinion of the international society. Tarnishing China will not get support and is completely futile," Geng said. As countries like the United States and Britain have disgraceful human rights records, they have no right to judge other countries and should seriously reflect on themselves, said Geng, adding that China urges those countries to stop politicizing and using double standards on human rights issues, and stop interfering in other countries' domestic affairs under the pretext of human rights. ^ top ^

Statement at UN supports China on Xinjiang (China Daily)
2019-10-30
Belarus made a joint statement Tuesday on behalf of 54 countries in firm support of China's counterterrorism and de-radicalization measures in the Xinjiang Uygur autonomous region. During a discussion on human rights at the Third Committee of the United Nations General Assembly at UN headquarters in New York, Belarus made the statement on behalf of countries including Pakistan, Russia, Egypt, Bolivia, Democratic Republic of the Congo, and Serbia. It praised China's people-centered development philosophy and development achievements. The statement spoke positively of the results of counterterrorism and de-radicalization measures in Xinjiang, noting that these measures have effectively safeguarded the basic human rights of people of all ethnic groups in Xinjiang. The statement said that terrorism, separatism and religious extremism have caused enormous damage to all ethnic groups in Xinjiang, which has seriously infringed upon human rights, including the right to life, health and development. "China has undertaken a series of counterterrorism and de-radicalization measures in Xinjiang, including setting up vocational education and training centers," the statement said, adding that safety and security have returned to Xinjiang now and "the fundamental human rights of people of all ethnic groups there are safeguarded". The statement also supported China's commitment to openness and transparency, mentioning it has invited a number of diplomats, international organizations, officials and journalists to Xinjiang to witness the progress of the human rights cause and the outcomes of counterterrorism and de-radicalization. "What they saw and heard in Xinjiang completely contradicted what was reported in the (Western) media," it wrote. The statement expressed opposition to relevant countries politicizing the human rights issue and called on them to stop baseless accusations against China. "We express our firm opposition to relevant countries' practice of politicizing human rights issues, by naming and shaming, and publicly exerting pressures on other countries," it wrote. "We call on relevant countries to refrain from employing unfounded charges against China based on unconfirmed information before they visit Xinjiang," it wrote. At the meeting, more than 30 countries, including Kyrgyzstan, Pakistan, Russia, Cambodia, Myanmar, Vietnam, Ethiopia, Cuba and Nicaragua, voiced support for China's position and measures on human rights. The Kyrgyzstan representative said the Kyrgyzstan Republic considers Xinjiang Uygur autonomous region affairs to be purely an internal affair of China and "appreciates the efforts of the government of China to preserve the Uygur culture and religious freedom and freedom of nationalities of Xinjiang and supports the measures taken by the Chinese side to ensure Xinjiang's security, stability and development". "The measures taken by China to address the situation and continue the economic development in Xinjiang are fundamental for the people of China, which is supported and appreciated by the international community," said the Cambodia representative. "We commend China's efforts to combat terrorism and extremism in Xinjiang in accordance with the laws. We would like to reiterate our opposition to any countries to use human rights as an excuse to interfere any country's internal affairs and attempts to put pressure in the name of human rights should be avoided," said the representative from Myanmar. Zhang Jun, permanent representative of China to the UN, refuted the "baseless" comments on Xinjiang made by the United States and some other countries. Zhang said that the US and a few other countries made "groundless accusations" against China, which is "gross interference in China's internal affairs and a deliberate provocation of confrontation". "China firmly opposes and rejects it," he said. He reiterated that Xinjiang's preventive measures of counterterrorism and de-radicalization are based on law and consistent with the will of the people. "This is not about human rights and has nothing to do with racial discrimination," he said. "China wants to tell the United States and other countries not to confront the international community and not to go any further on the wrong path." ^ top ^

China's Communist Party elite wrap up meeting with pledge to safeguard national security in Hong Kong (SCMP)
2019-11-01
Chinese Communist Party leaders ended their four-day plenary meeting in Beijing on Thursday by issuing a communique that revealed little in the way of new policy initiatives but included a pledge on Hong Kong to safeguard national security through legal means. "'One country, two systems' is an important system of the party … to achieve peaceful reunification of the motherland," the document issued by the fourth plenum of the party's Central Committee said. "[We must] strictly govern the Hong Kong special administrative region and the Macau special administrative region in strict accordance with the constitution and the Basic Law, and safeguard the long-term prosperity and stability of Hong Kong and Macau. "[We must] establish a sound legal system and enforcement mechanism for safeguarding national security in the special administrative regions," it said, without elaborating. The references to a legal system and mechanism for national security come after more than four months of protests in Hong Kong triggered by a now-withdrawn extradition bill and calls for the introduction of local legislation on national security. Macau introduced its own national security law 10 years ago but proposals for similar legislation in Hong Kong met stiff resistance. The plenum sessions – attended by more than 300 full and alternate members of the Central Committee – provide an opportunity for the party's most senior members to discuss and forge consensus on key policy issues. The reference to Hong Kong in the communique was evidence the city had featured on the agenda. The document made no reference to the trade war between China and the US, or to Xinjiang, two sources of international pressure for Beijing. The reference to one country, two systems being an important part of China's political system suggests Beijing has no plan to alter the arrangement but experts said the emphasis on the national security law suggested the leadership might push for local legislation in Hong Kong. "With Article 23 not enacted for so long, there's no law [in Hong Kong] that has proved to be effective in preserving national security in the city," said Lau Siu-kai, vice-chairman of Beijing's top think tank on Hong Kong affairs. "Beijing doesn't have much trust in the SAR government that it can complete the legislation, so it is likely to take active steps to address the issue and there are several ways to do it," he said. Lau said the National People's Congress, China's legislature, could issue an interpretation of the Basic Law, or enact a national law directed at Hong Kong. It passed a similar bill in 2005 – the Anti-Secession Law – to target the pro-independence movement in Taiwan. Beijing might also issue a mandate to Hong Kong's Chief Executive Carrie Lam Cheng Yuet-ngor, Lau said. Li Xiaobing, an associate law professor at Nankai University in Tianjin, said Macau was a good example of the concept of having a "legal system and enforcement mechanism for safeguarding national security". "Beside's Macau's national security law, which took effect in 2009 and is the legal system, in 2018 it also established a high-level committee to protect national security, chaired by its chief executive," he said. "That committee is the enforcement mechanism. Macau also banned non-Chinese judges from ruling on cases of national security." Hong Kong-based China watcher Johnny Lau Yui-siu said he expected to see a clear shift in policy direction as Beijing looks to strengthen its control over Hong Kong. "This is clearly suggesting a wide range of unprecedented controls that are going to be exerted over Hong Kong as Beijing has lost its patience for one country, two systems," he said. "The communique sends a strong political message that might see Hong Kong respond by introducing new legislation to restrict free speech online, outlaw abuse of the police and increase controls on campus," he said. Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said the reference to national security underscored the party leaders' determination to tighten their grip on Hong Kong despite the pressure coming from the United States. "Although pushing for it might affect Hong Kong's [free port] status, Beijing is determined to deal with the current turmoil firmly," he said. "From Beijing's point of view, this might affect the ongoing trade talks [with the US] but it still believes that's a better option than allowing Hong Kong to become a base of subversion." ^ top ^

Halloween protests in Hong Kong: police fire tear gas in Mong Kok, Central and Sheung Wan as people denounce alleged force brutality and march against mask ban (SCMP)
2019-10-31
Halloween festivities in Hong Kong took on a darker than usual hue on Thursday night as police fired tear gas to disperse protesters in Mong Kok and Central who had gathered against alleged brutality by the force and in open defiance of a ban on masks. After roads in the downtown hub of Central were occupied by more than 1,000 protesters, the force fired multiple rounds of tear gas on Pedder Street. Further up the road in the clubbing district of Lan Kwai Fong, police used pepper spray on a crowd of mostly reporters while two women were arrested. A police source also confirmed an assistant clerical officer from the chief secretary's office was arrested for unlawful assembly, wearing a mask and assaulting a police officer in Mong Kok The actions were just one of many throughout the evening that began in Mong Kok. Protesters surrounded Mong Kok Police Station and stood outside Prince Edward MTR station from late afternoon. At around 7pm police dispensed tear gas and pepper spray as protesters hurled water bottles at police wagons and threw bricks prised from the pavements to obstruct traffic. They also vandalised traffic lights and exits of Mong Kok MTR station, forcing the station to close, before starting a fire on Nathan Road at about 9pm. During the police operation in Central, a man RTHK identified as one of its video journalists was hit with pepper spray by police after he asked officers to show him their identification numbers. A spokesman for the broadcaster said the reporter was wearing a vest with its logo clearly displayed. He said reporters had been injured by officers' "unnecessary force" while carrying out their work, and had also been obstructed by police. "[RTHK] expresses anger and issues a reprimand," the broadcaster said in a statement, and urged police to respect press freedom. The Hospital Authority said six people were injured on Thursday night, including one who was in a serious condition. Meanwhile, the Social Workers' General Union claimed one of its members was hit on the head by a police officer in Prince Edward. The union claimed as the social worker was being taken to an ambulance an officer said: "Do you know how you got injured? Are you sure you did not just fall?" On Hong Kong Island, about 100 people, most with their faces covered, started to gather at Victoria Park in Causeway Bay at 7pm for an unauthorised march to Lan Kwai Fong to protest against a government ban on wearing masks at public assemblies. Marchers wore all kinds of disguises, ranging from Halloween masks to paper cutouts of political figures and fictional characters. Office worker Kenny Chum, in his 30s, wore a mask of US President Donald Trump. He said he wanted to use this festive occasion to protest against the anti-mask law and police's use of force. "I feel it's a day where it's fine to wear face mask, like all Halloweens in the past," he said. "Police are overly sensitive and have made things feel tense. It's supposed to be a day for fun." Loo Lo, 25, said she always celebrated Halloween but there was a political side to this year. She dressed as the Joker, a character she said symbolised the fight against the government and the anti-mask law. "We could all be the Joker and we are connected, to fight the same cause," she said. Earlier in the day, streets in the bar district had been barricaded with water barriers for the first time and about 30 police officers in full riot gear were seen on Wyndham Street in Central. They were among 3,000 officers expected to be mobilised on Thursday night, while three water cannons were also stationed on Hong Kong Island. The Lan Kwai Fong Association, a business body composed of about 100 restaurants and service providers in the area, hired marshals to set up the barriers from 4pm. Shopkeepers and restaurant workers said it was the first time such barricades had been used. The marshals refused to allow people without party passes or bookings to pass through. Police sources said Halloween party-goers could be forced to wipe off face paint if they looked suspicious, while undercover officers would blend into crowds during the planned march from Victoria Park in Causeway Bay to Central. At Tipsy Bird bar in Lan Kwai Fong, an employee called Alex Batthaly, 35, said sales so far were down between 35 and 40 per cent year on year. "It's so quiet," he said, adding it was the worst business he had seen for the bar in his three years working there. Frankie Chan, a food and beverage business developer, also said business had been difficult in the past few months. "I've been operating restaurants in Lan Kwai Fong for nearly three decades. This year, I had no choice but to shut down three of my stores in the area," he said. Among the revellers in Lan Kwai Fong was Wing Siu, 36, who works as a personal life coach. Siu came to the nightlife district with his two-year-old son who had his face painted like a clown. He said the festive atmosphere was quieter in the entertainment area compared with last year and admitted there were safety risks. "We will just take good care of ourselves," he said. "We still have to eat and live anyway." Peter Law, 26, wore a mask featured in V for Vendetta. The engineer said he had not celebrated Halloween in previous years, but this year wanted to express his dissatisfaction over the anti-mask law. He insisted he was not taking part in a public assembly, but to celebrate the festival. "If police arrest people celebrating, then I have nothing to say. It only proves Hong Kong is a police state." In Lan Kwai Fong, most bars were opened as usual, but even those on the main road were not full or busy. Nevertheless, police blocked the junction between D'Aguilar Street and Wellington Street at 8pm, causing a stand-off between officers and hundreds of residents. Waqas, a bartender at a bar called Chocolate, said the police presence had made business worse. "If police weren't here, at least some of our regular guests would have come for a drink," he said. Sahil Md, 33, an employee at two bars at Win Wah Lane, said police blocking the entrances meant no businesses for them. He recalled the two stores made about HK$120,000 this time last year, but the figure had dropped 90 per cent in 2019. Earlier in the evening, residents gathered outside Prince Edward MTR station in Mong Kok to denounce alleged police brutality. Police and protesters clashed inside the station on August 31, leading to a number of injuries. When the number of people hurt was revised, rumours circulated that some protesters had died in the station, prompting the disciplined services to issue several statements clarifying the situation. The station was shut at 2pm on Thursday, while Mong Kok station was closed at 8pm out of safety concerns. Rail operator MTR Corporation also said Central station would be shut at 9pm. The entire MTR network, except for the Airport Express, shut down at 11pm and the MTR Corp warned that individual stations or entrances could close at any time depending on further risk assessment or whether protesters damaged facilities. A woman, who only gave her surname Ng, was seen limping to find an entrance at Prince Edward MTR station just before 2pm. She said she had just seen a doctor about a torn ligament and complained that the MTR had closed the entrance she usually used. More than 100 people gathered around a "Lennon Wall" outside the station from 5pm, chanting slogans associated with the protest movement. They called again for the release of CCTV footage during the police action on August 31. University student Chan Pak-san, 24, who was replacing a flower on the wall at the station said: "I come here regularly to protect this place and to preserve the memory of what happened on [August] 31. I hope the citizens of Hong Kong will remember what happened. We need to support the movement." A secretary, who gave her surname Tsoi, said she was hit by tear gas when she finished dinner in Mong Kok with her boyfriend. "I walked out of the restaurant and saw this crowd. So I walked over to see and immediately police fired tear gas," she said. "What if people are just passers-by. This is unreasonable." She called for the police force to be disbanded because she said they had been acting above the law. On Lockhart Road in Wan Chai, bars and restaurants were open as usual, with reduced footfall compared with normal happy-hour time. Angelo Ocambo, a bartender at a restaurant there, said sales in October fell between 20 and 30 per cent year on year. He recalled there was a continuous flow of customers from 4pm last Halloween, but this year diners only started coming in at around 5.45pm. "It's quite unusual for this time of the year," he said. Meanwhile, pro-democracy activist Ventus Lau Wing-hong's appeal to overturn a police ban on a rally at Victoria Park on Saturday night was shot down on Thursday evening. Lau said people could also attend two rallies in Chater Garden and Edinburgh Place on Saturday evening, which had been approved by police. At midnight, a police source said at least 30 people were arrested in Central and Mong Kok. ^ top ^

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US bill to protect Taiwan from Chinese diplomatic pressure wins congressional committee approval (SCMP)
2019-11-01
The US took another step towards a shift in Taiwan policy on Wednesday when the House of Representatives foreign affairs committee voted unanimously to approve its version of the Taiwan Allies International Protection and Enhancement Initiative (Taipei) bill. Analysts said the legislation signalled a change in US attitudes towards cross-strait issues and that instead of allowing Taiwan and Beijing to resolve their differences, the US should work with Taiwan in dealing with the mainland. A day after the Senate passed its version, the House committee approved the bill which called on Washington to help Taiwan hold on to diplomatic allies in the face of pressure from Beijing. The House's bill would authorise the US State Department to consider "reducing its economic, security and diplomatic engagements with nations that take serious or significant actions to undermine Taiwan". The bill was expected to be approved by a House floor vote in November, and Congress would then compare both versions and create a bill for President Donald Trump to sign into law. Taiwan's semi-official Central News Agency reported that the House said the US government should help Taiwan to take part in international organisations, either as a member or an observer. Washington should also lobby for Taiwan's interests when it [the US] deals with Beijing, the House said. The report quoted Representative Steve Chabot of Ohio, co-chairman of the Congressional Taiwan Caucus, as saying that Taiwan was a "critical ally" for the US in the Pacific. Chabot also referred to a switch by the Solomon Islands and Kiribati in September that left Taiwan with 15 allies, mostly impoverished countries in the Pacific and Latin America. Washington switched recognition to Beijing from Taipei in 1979, but passed the Taiwan Relations Act soon after to ensure informal but close ties with the island that included a commitment to supply Taipei with defensive arms against a possible military adventure by Beijing. Beijing considers Taiwan a wayward province that must return to the mainland fold, by force if necessary. Cross-strait relations – which warmed when Ma Ying-jeou of the mainland-friendly Kuomintang was president between 2008 and 2016 – soured in 2016 after Tsai Ing-wen of the independence-leaning Democratic Progressive Party was elected president and refused to accept the one-China principle. Beijing then suspended diplomatic exchanges with Taiwan, staged war games around the island and poached seven allies away from Taipei. While the House's version of the bill is almost identical to the Senate's, the upper chamber called for Trump's administration to consider a free-trade deal with Taiwan. On Thursday, Tsai voiced her appreciation for efforts to pass the Taipei act and said it would help Taiwan maintain its place on the world stage. Arthur Ding, an honorary professor of international relations at National Chengchi University in Taipei, said the bill's progress "reflects that the anti-China position is the mainstream opinion in the US Congress". "With his support for Taiwan, Trump is expected to sign the act, but it remains to be seen how the law would be implemented," Ding said. Lai I-chung, executive director of the international cooperation committee at the Taipei-based Taiwan Thinktank, said Wednesday's vote also indicated a change in US policy in dealing with both sides of the Taiwan Strait. "In the past, the US used to think that it should be Taiwan which had to face suppression from the mainland and resolve the issue by itself," he said. "But now, the US is taking into account the survival of Taiwan internationally, believing it needs to work with Taiwan to (help it) cope with the problem and other related issues". ^ top ^

Taiwanese court orders police to compensate injured 'Sunflower Movement' protesters (HKFP)
2019-11-01
Police in Taiwan have been ordered by a court to pay compensation to a group of protesters who were injured during clashes in 2014 over a controversial trade pact with China. Hundreds of people stormed the government's headquarters five years ago until riot police eventually dislodged them using shields, batons and water cannon. More than 100 activists and police officers were injured in the clashes which were part of a period of political protests against then-president Ma Ying-jeou's Beijing-friendly policies that became known as the "Sunflower Movement". On Wednesday a district court in Taipei ruled in favour of 14 protesters who were injured by police while holding a sit-in outside the building. The court said officers used "excessive" force which led to "serious injuries" as it ordered the police to pay around Tw$1.11 million (US$35,900) in compensation. The police department said it respected the ruling but would consult with lawyers on whether to file an appeal. The Sunflower Movement was sparked by President Ma's perceived cosiness with Beijing. During his 2008-16 presidency, Ma oversaw an unprecedented thaw in ties with mainland China. But his decision to push ahead with an unpopular trade deal sparked a major backlash with young voters especially alarmed by his administration's growing closeness to the authoritarian mainland. The student-led Sunflower protesters occupied the island's parliament and the backlash eventually led to a landslide defeat for Ma's Kuomintang party at elections later that year. His successor Tsai Ing-wen, from the Beijing-sceptical Democratic Progressive Party, dropped a lawsuit against 126 protesters who stormed the cabinet headquarters, saying the movement had "legitimacy" and reflected societal concerns. Tsai is seeking re-election in January and is facing off against an opponent who favours closer ties with Beijing. China's communist leaders still see the democratic island as part of its territory and have vowed to seize it if necessary, even though the two sides have been ruled separately since 1949. Since Tsai's election, Beijing has ramped up economic and military pressure on Taiwan and poached half a dozen of its dwindling band of diplomatic allies. ^ top ^

No rush for China to cut rates: experts (Global Times)
2019-10-31
China is in no hurry to relax its monetary policy on a broad scale, as existing settings are sufficient to maintain stable GDP growth in the short term, experts said Thursday. The comments followed a cut in US interest rates. On Wednesday (US time), the US Federal Reserve (Fed) announced it will lower the federal funds target rate by 25 basis points (bps) to a range of 1.5-1.75 percent, given "the implications of global developments for the economic outlook as well as muted inflation pressures," according to a statement on the Fed website. Hours after the Fed's decision, many countries and regions announced interest rate cuts in lock-step with the US. Brazil cut its benchmark rate to a record low of 5 percent. A technical recession is driving authorities and banks in Hong Kong to cut benchmark rates. The Hong Kong Monetary Authority said on the same day it will adjust its base rate down to 2 percent, cutting the rate by the same amount as the US. HSBC cut its best lending rate by 12.5 bps to 5.0 percent, the first cut since 2008. Standard Chartered trimmed its best rate by the same amount to 5.25 percent. The People's Bank of China (PBC), the country's central bank, skipped open market operations for the third day in a row on Thursday, citing abundant liquidity in the market. Although there is no doubt that many countries will adopt an easier monetary policy in the low-interest rate global environment, China will maintain a neutral but slightly loose monetary policy to preserve more "policy space" for future growth, Wan Zhe, chief economist with China National Gold Group Corp, told Global Times on Thursday. Many economies face downward pressure in part due to uncertainties brought about by US protectionism. In the latest World Economic Outlook, the IMF adjusted its global growth forecast down to 3.0 percent for 2019, its lowest since 2008-09. Against this backdrop, Ming Ming, an analyst with Citic Securities, said in a note that China is not in a hurry to ease monetary policy, as it wishes to maintain the long-term effectiveness of common tools. If domestic GDP growth can reach the national target, the quality of economic growth should be given much more priority over the actual number, the note said. "The fourth quarter may be an important opportunity to assess China's monetary policy," it said. The Institute of Industrial Economics of China Academy of Social Sciences forecast on Thursday that China's economic growth will stand at 6.2 percent this year, falling into the government's growth target range of 6-6.5 percent for 2019. Although China's economy is still resilient - with vibrant markets and robust demand - the country still needs to boost market-oriented reform, as the effectiveness of policy has become key for China's economic growth and upgrading, Wan said. "Take interest rates, for example. When monetary policy might not be sufficiently accommodative, the liquidity released by the central bank can't be funneled into certain companies due to the absence of a smooth transmission system in the market. Hence, the supply-side distortion weakens the efficiency and effectiveness of policies," she explained. Liu Feng, chief economist at China Galaxy Securities, shared Wan's view, saying that "Monetary policy isn't a miracle cure." A loose fundraising environment to help small companies raise capital is more urgently needed to maintain stable GDP growth amid the diminishing marginal utility of monetary tools, he said. Given the task of stabilizing economic growth, there is still policy space for the PBC to cut banks' requirement reserve ratios and adjust downward the rate on the central bank's medium-term lending facility, read a Bank of Communications note on Thursday. ^ top ^

Beijing to offer offshore Eurobonds (Global Times)
2019-10-31
A planned offshore euro-denominated sovereign bond, the first in 15 years, will expand the Ministry of Finance's (MOF) revenue amid domestic economic pressure and may signal China's willingness to increase assets denominated in currencies other than the US dollar, Chinese experts said on Thursday. The move to issue sovereign debt in the EU, with no word of any issue in the US, shows that China is reducing its exposure to the US, as the trade war initiated by the latter enters its 15th month. Bank of China Ltd said on Wednesday that it will assist the MOF with an issue of euro-denominated sovereign bonds after a 15-year hiatus. The remarks were made by the lender in a post on its official website. The news had little impact on the bank's shares in Shanghai, which edged up 0.27 percent to 3.7 yuan ($0.53). "The ministry's revenue is squeezed by government efforts to cut taxes and fees. Simultaneously, there is a need to increase spending under a proactive fiscal policy," Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Thursday. China's third-quarter GDP growth reached a multi-year low of 6 percent. China cut 1.5 trillion yuan in taxes and fees in the first eight months, according to media reports in October. The MOF issued sovereign bonds valued at 1 billion euro and $500 million in 2004. The euro-denominated 10-year bonds had a return of 4.25 percent, according to a report on financial news outlet yicai.com. The dollar-denominated bond issued that year had a return of 3.75 percent. The amount and target yield and timing of the new eurobond are not known yet. But 21jingji.com, a domestic financial news site, said the scale of the issue is expected to be "billions of euros." A dozen domestic and foreign banks will also take part in the issue. Dong Dengxin, director of the Finance and Securities Institute at Wuhan University of Science and Technology, told the Global Times Thursday that the issuance of eurobonds could be a signal that China hopes to reduce the proportion of US dollars in its reserves and companies planning offshore issuance in foreign currency may follow this hint. China has cut nearly $90 billion from its US Treasury holdings since June 2018. China issued a tranche of dollar-denominated bonds valued at $2 billion in October 2017 and then another tranche valued at $3 billion in October 2018. The dollar-denominated bond issue by the MOF were well-received in the market, 21jingji.com reported. Xi Junyang said that the new bonds are expected to be favored by global investors. "Investors also see reality. In reality, China is one of the best countries in the world in paying its sovereign debt." ^ top ^

Respected North Korea envoy Stephen Biegun tapped as Donald Trump's Deputy Secretary of State (SCMP)
2019-11-01
Stephen Biegun, a respected US foreign policy veteran in the difficult job of leading diplomacy with North Korea, was named on Thursday as the State Department No 2 – a role that could become even more key in coming months. President Donald Trump announced Biegun's nomination to replace Deputy Secretary of State John Sullivan, who has been tapped to be ambassador to Russia. The nomination is drawing particular attention amid growing speculation that Secretary of State Mike Pompeo will run for Senate next year in Kansas, meaning that Biegun could become the acting top US diplomat, at least briefly. Biegun, whose nomination requires Senate confirmation, will remain as the special representative on North Korea, a job he took last year after Trump's historic first summit with leader Kim Jong-un, a US official said. Biegun initially received a cold shoulder from North Korean officials who, mindful that the countries' leaders were negotiating directly about Pyongyang's nuclear programme, saw little reason to deal with an envoy on anything other than logistics of meetings. But Biegun enjoyed a breakthrough of sorts in early October when he met North Korea's lead negotiator Kim Myong-gil in Sweden. North Korea walked away from the talks, denouncing the US attitude, but the United States issued a comparatively upbeat statement saying that Biegun never planned to resolve all issues in a day and that the two sides would meet again. At a time of deep polarisation in Washington, Biegun, 56, has won respect across party lines and in foreign capitals for his affability and for offering cogent analysis rather than ideological lectures. A lifelong Republican, Biegun spent his career in behind-the-scenes roles in Congress and in former president George W. Bush's administration, where he served in senior staff positions at the White House and State Department. Unlike Sullivan, who is expected to be confirmed to go to Moscow, Biegun's expertise in fact lies in Russia, where he lived from 1992 to 1994 as part of US democracy promotion work. In an interview with an alumni publication at the University of Michigan, Biegun recalled that he became fascinated by Russia when a high school history teacher wrote "tsar" in Cyrillic script. "It was one of the most exotic things I'd ever seen. It left such an impression on me that I went to the town library and checked out a book to teach myself Russian," he said. A native of Michigan, Biegun is the third generation of his family to work at the Ford Motor, handling the carmaker's relations with foreign governments before being tapped as the North Korea envoy. ^ top ^

North Korea fires two projectiles into sea in apparent attempt to ramp up pressure on US over stalled nuclear negotiations (SCMP)
2019-10-31
South Korea's military said North Korea on Thursday fired two projectiles toward its eastern sea, an apparent resumption of weapons tests aimed at ramping up pressure on Washington over a stalemate in nuclear negotiations. Seoul's Joint Chiefs of Staff said the weapons were fired from a region near the North Korean capital of Pyongyang. In a statement, the South's military said the projectiles were "short range", travelling an estimated 370 kilometres and reaching an altitude of 90 kilometres. Japan's Defence Ministry said it believed the North Korean weapons were ballistic, but that they did not reach Japan's territorial waters or its exclusive economic zone. North Korea's latest launch follows statements of displeasure by top government officials over the slow pace of nuclear negotiations with the United States and demands that the administration of President Donald Trump ease sanctions and pressure on Pyongyang. Senior North Korean official Kim Yong-chol on Sunday said his country was running out of patience with the US over what it described as unilateral disarmament demands, and warned that a close personal relationship between the leaders alone would not be enough to prevent nuclear diplomacy from derailing. He said the Trump administration would be "seriously mistaken" if it ignores an end-of-year deadline set by North Korean leader Kim Jong-un for mutually acceptable terms for a deal to salvage nuclear diplomacy. Nam Sung-wook, a North Korea expert at Seoul's Korea University, said North Korea is likely to ramp up its weapons demonstrations in coming weeks to increase pressure on Washington ahead of Kim's deadline. There's a possibility that the North fires some of its powerful mid-range missiles over Japan, like it did during a provocative run in weapons tests in 2017, Nam said. "North Korea is investing all its strength in a hard-line position against Washington and Seoul," said Nam, a former president of the Institute for National Security Strategy, a think tank affiliated with South Korea's main spy agency. "If its missiles fly over Japan, the international impact would be huge because the United States and Japan would find it difficult to let it go," he said. Earlir this month, the North test-fired an submarine-launched ballistic missile for the first time in three years. The North has also tested new short-range ballistic missile and rocket artillery systems in recent months in what experts saw as an effort to use the standstill in talks to advance its military capabilities while increasing its bargaining power. Negotiations have faltered after the collapse of a February summit between Kim Jong-un and Trump in Hanoi, Vietnam, where the US rejected North Korean demands for broad sanctions relief in exchange for a piecemeal deal toward partially surrendering its nuclear capabilities. The North responded with intensified testing activity while Kim said he would "wait with patience until the end of the year for the United States to come up with a courageous decision." Washington and Pyongyang resumed working-level discussions in Sweden earlier this month, but the meeting broke down amid acrimony with the North Koreans calling the talks "sickening" and accusing the Americans of maintaining an "old stance and attitude." After the breakdown in Sweden, North Korea released a series of photos showing Kim riding a white horse to a snow-covered Mount Paektu, a volcano considered sacred by North Koreans and a place where the leader has often visited before making key decisions. Speaking to officials near the mountain, Kim vowed to overcome US-led sanctions that he said had both pained and infuriated his people. News of the launches came after South Korea said earlier Thursday that Kim Jong-un had sent a message of condolence to South Korean President Moon Jae-in over his mother's recent death. The two leaders met three times last year and struck a set of deals aimed at easing animosities and boosting exchanges. But in recent months, North Korea has drastically reduced its engagement and diplomatic activities with South Korea, after Seoul failed to resume lucrative joint economic projects held back by US-led UN sanctions. Last week, Kim ordered the destruction of South Korean-built facilities at a long-closed joint tourist project at North Korea's scenic Diamond Mountain resort. South Korea later proposed talks but North Korea has insisted they exchange documents to work out details of Kim's order. "The North Korean leader does not ride a white horse to the top of Paektu mountain because he is satisfied with the status quo," said Leif-Eric Easley, a professor at Ewha University in Seoul. "Kim's year-end threat is as much a deadline for economic progress as it is a diplomatic ultimatum," Easley said. "This is why Pyongyang is increasing pressure on Seoul and Washington in the form of announcing plans to bulldoze even stalled inter-Korean projects, such as at Mount Kumgang, while continuing provocative missile tests." ^ top ^

North Korea rebuffs South, refuses talks over historic flagship resort (Global Times)
2019-10-29
North Korea on Tuesday rejected Seoul's request for talks on the fate of a flagship tour complex condemned by leader Kim Jong-un, dismissing meetings as "unnecessary," South Korea said. The abrupt rebuff is a stark illustration of the dire state of inter-Korean relations, which have plummeted since the collapse of a February summit between Kim and US President Donald Trump in Hanoi, Vietnam on the North's nuclear program. Pyongyang has repeatedly excoriated Seoul, saying it has "nothing to talk [about] any more" with the South. Kim has lambasted the Mount Kumgang resort, built by the South's Hyundai Asan group on one of the peninsula's most scenic mountains. He described South Korean-built facilities there as "a hotchpotch with no national character at all" and "like makeshift tents in a disaster-stricken area or isolation wards," ordering their removal, Pyongyang's official KCNA news agency reported last week. The North sent a message on Friday that Seoul should come and raze the buildings at an "agreed-upon date." In response, South Korea on Monday asked for working-level talks on the issue, but the North refused Tuesday and "insisted on an exchange of documents" instead, said Seoul's Unification Ministry, which handles inter-Korean relations. The Mount Kumgang complex once drew hundreds of thousands of Southern visitors and was a symbol of economic cooperation between the two Koreas. But the tours came to an abrupt end in 2008 after a North Korean soldier shot dead a tourist from the South who strayed off an approved path, and Seoul suspended travel. The North has long ­wanted to resume the lucrative visits, but they would now violate international sanctions imposed on Pyongyang over its nuclear and ballistic weapons programs. ^ top ^

Ministers meet representatives of Asian Infrastructure Investment Bank (Montsame)
2019-10-31
Minister of Construction and Urban Development Kh.Badelkhan on October 28 met with a delegation led by Konstantin Limitovskiy, Senior Advisor to the President and Chief Programming Officer at Asian Infrastructure Investment Bank (AIIB). The sides exchanged views on the priority construction and urban development projects and programs of Mongolia, in particular, building, public utility, and infrastructure engineering projects financed by soft-loans, and non-refundable aid from China, South Korea, as well as international banks and financial institutions and the ones that can be implemented with funding from foreign resources under the 150 unit apartment complex national program. They also discussed opportunities for collaborating on the development of the Aerocity and Maidar eco city and investing in the infrastructure of the cities. On October 29, Minister of Energy Ts.Davaasuren met with the delegation. At the meeting, Mr. Konstantin Limitovskiy noted the purpose of their visit was to hold talks and explore investment opportunities in infrastructure projects and other fruitful areas, energy projects prioritized by the government of Mongolia, and bilateral cooperation. Providing the representatives with information about the Midterm national program on the implementation of state energy policy 2019-2023, Minister Ts.Davaasuren told them that investment is much needed for the construction of power transmission lines. He then noted the importance of embarking on a project on connecting the eastern and western regions to the central power system. Choibalsan-Undurkhaan-Baganuur and Baganuur-Choir lines will connect the east to the central and western regions and help satisfy the energy demand for oil extraction in the east and Uliastai-Durgun-Myangad line will connect the west to the central region and transmit the power generated in the Erdeneburen hydropower plant to be built in the west, he said. The Minister also pointed out for developing renewable energy it is important to develop reliable solar and wind power transmission system and improve capacities of the other transmission lines. ^ top ^

Interest of establishing long-term partnership expressed (Montsame)
2019-10-30
Yesterday, October 29, President Kh.Battulga received delegates led by Alan Turley, the Deputy Assistant Secretary of Commerce for China and Mongolia in the U.S. Department of Commerce's International Trade Administration. Mr. Alan Turley is being accompanied by authorities of large global companies operating in agriculture, IT, mining equipment, chemistry and railway infrastructure spheres. He emphasized that the visit aims to realize the talks of President Kh.Battulga and President Donald Trump on expanding economic and trade relations. He said that U.S. Department of Commerce has much interest in cooperating with Mongolia in agriculture and animal husbandry and it is also seeking other means of business and cooperation based on ongoing construction works of railway and air transportation and growing active internet users. President Kh.Battulga introduced in detail about ongoing projects and programs and emphasized it would be a basis of mutually beneficial business when there is a favorable technological and financial condition regardless of any sector. Thanking for providing detailed information about favorable business opportunities and ongoing construction works in Mongolia, the delegates of U.S. Department of Commerce and private sector expressed their aspiration to establish a long-term partnership relations, but not a one-time profit-making business. ^ top ^

Jennia Jin
Embassy of Switzerland