Cassis confirmed as next Swiss president amid COVID-19 tensions (GT/AFP)
2021-12-09

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Lithuania braces for Beijing-led corporate boycott as fallout over Taiwan de facto embassy continues (SCMP)
2021-12-09

Uneasy bedfellows? 'Boycott' statements show Five Eyes each has its own calculations (GT)
2021-12-09

Xi sends congratulatory letter to 2021 South-South Human Rights Forum (Xinhua)
2021-12-08

Chinese spokesperson questions U.S. qualification of holding democracy summit (Xinhua)
2021-12-08

Xi says China to push for new progress in relationship with Iceland (Xinhua)
2021-12-08

White House confirms diplomatic boycott of 2022 Beijing Olympics (SCMP)
2021-12-07

China 'unlikely to take sides' in a Russia-Ukraine conflict (SCMP)
2021-12-07

FM Wang Yi puts 'three dos and three don'ts' for China-India relations when meeting with outgoing Indian Ambassador (GT)
2021-12-07

Canadian ambassador to China Dominic Barton resigns in wake of two Michaels' release (SCMP)
2021-12-07

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Courts have stepped up to foster safe environment in cyberspace (China Daily)
2021-12-09

China population: article demanding Communist Party members have three children goes viral (SCMP)
2021-12-09

Key role of socialist rule of law stressed (China Daily)
2021-12-08

China unveils annual top 10 slang phrases, highlights on aspiration, strength of young generation (GT)
2021-12-07

Anti-corruption, discipline inspection stressed (China Daily)
2021-12-07

China's 10-Year Struggle for Ecological 'Red Lines' (Caixin)
2021-12-07
A winding rural road leads to an area of green and dense forests where the Donghe River flows down from the mountains. Located on the river banks are villages where ethnic Miao people have lived for generations. Soon, the area containing several nature reserves and the Xiangxi UNESCO Global Geopark will be home to the Daxingzhai reservoir, the largest water conservancy project in the Xiangxi Tujia and Miao autonomous prefecture of Central China's Hunan province. The reservoir is a national- and provincial-level infrastructure project deemed key to the local economic development. The problem is, it will occupy about 200 hectares (494 acres) of land that is deemed to be part of an artificially defined ecological conservation red line (ECRL). ECRLs include areas with important ecological functions and ecologically fragile regions prone to soil erosion, desertification and salinization. The ECRL policy aims to create a balance between ecological protection and economic development. The Daxingzhai project exemplifies the twists and turns in China's ECRL policy since its introduction 10 years ago, with authorities issuing one document after another to adjust the "red lines" to prioritize local economic development. It underscores the difficulties the government faces in balancing the imperatives of environmental protection with those of economic development. The environment authorities in the country are working on a new document, called the "Management Measures for the Ecological Conservation Red Line," hoping to settle the lingering issue for good. But whether the "measures" will be able to balance the rigid requirements for uniform ecological protection with the flexibility needed for local development remains to be seen. Wang Shekun, a law professor at Northwest University, told Caixin that it has been difficult to manage ECRLs through uniform legislation since many departments are involved, which has slowed down the legislation progress. In late October, the country's Natural Resources Minister Lu Hao said at a news briefing that administrative regions would have the right to delimit their "red lines" based on their own regional natural geographical pattern, with the ecological protection areas defined ranging from 7.2% to more than 50% of their total land areas. According to an official document issued by Hunan province in July 2018, an area of about 200 hectares under the Daxingzhai reservoir falls within the ECRL. China's regulations stipulate that occupation of areas under the ECRL must seek approval from the State Council, the country's cabinet. But according to an environmental impact assessment (EIA) report, the provincial natural resources department is organizing the assessment and adjustment of the ECRL, indicating that "the land area used for Daxingzhai reservoir project has been removed from the ECRL area." But Beijing-based environment advocacy group Friends of Nature disagrees and questions the adjustment made for the project, according to a volunteer working with the organization. This April, the group filed a request with the local working group of the project to conduct an ecological and environmental impact inspection, arguing that "ecological protection was giving in to industrial development" in the construction of the reservoir. A staff member of the reservoir's coordination leading group told Caixin early last month that the adjustment to the ECRL was not directly linked to the reservoir project. The Daxingzhai reservoir was applying for approval for its occupation of area within the red line area as it is a recognized major project, the person said. Liu Kai, a senior engineer from the local water resources bureau, told Caixin that the reservoir project has prepared documents proving that the present area is an optimal and unavoidable choice, pending approval from the natural resources ministry. The idea of ecological red line was first proposed by the State Council in a document in October 2011, followed by the introduction of "ECRL" in 2013 in another document, with the scope of application expanding to natural resources and environmental quality. A year later, the country's Environmental Protection Law was amended to include the ECRL, stipulating that "ECRLs will be delineated to strictly protect key ecological functional zones, ecologically sensitive areas and vulnerable areas." In early 2017, the central leadership issued a document, proposing that the ECRL must, in principle, be managed according to the requirements of the protection area. Development activities that do not conform to the area's functional orientation, or an arbitrary change in the use of the area is strictly prohibited. Wang noted that this is the single rigid prohibition in the existing documents, but it still leaves loopholes for the construction of "major national infrastructure" projects. In early years, some environmental protection departments were a bit too radical in the delineation of ECRLs, causing dissatisfaction among other departments and then the needs of the adjustments, a source close to local natural resources authorities said, adding that the areas were designated "without scientific verification" and discussion with local governments. "As a result, many local projects that were in line with sustainable planning or spatial planning could not be carried out as planned," the source noted. The 2017 central leadership document noted that the construction of major national infrastructure and major livelihood projects can occupy areas under ECRLs, but the definition of "major national project" remains vague, according to Chu Jun, assistant director-general of Cross-border Environment Concern Association (CECA). She also pointed out that according to the existing documents, any construction project that needs to cross the ECRL is required to demonstrate why the occupation of the area cannot be avoided in an EIA report. However, her team's research shows that 96% of the 104 projects surveyed that crossed the ECRLs lacked sufficient justification. "This can easily degenerate into formalism," she said. "Some EIA reports only discuss issues like compensation, using a high amount of compensation as justification for crossing the red lines. This shows that economic and social issues are prioritized over the protection of ecosystems." In her view, the lack of specific legal provisions is the reason why some projects get leeway to encroach into the ECRLs. But professor Chen Haisong from the Research Institute of Environmental Law at Wuhan University, does not agree. Chen argues that ECRL policy should not be understood as simply drawing circles that define the range of a protection area. Gao Jixi, head of the national ecological conservation red line delineation technology team, echoed the view. He said that the general principle of the ECRL allows for flexibility in determining the ecological function of the red line area, while appropriate human activities can also be conducted if they meet requirements. Wang, the professor, also said that ECRLs are not an isolated concept but a part of the overall spatial planning. It seems difficult to develop one set of rules for all kinds of ECRL areas, but having specific rules for different areas presents challenges to the enforcement of the ECRL policy across the country, he noted. Chen, the environment law professor, said that as long as a specific area is delineated within the scope of the red line, its ecological and environmental interests should be 'strictly protected' under the Environment Protection Law. "If a discrepancy arises … we should follow the 'strict protection' provisions of the national law in the enforcement of the ECRLs," he said. Earlier this year, a copy of the draft "management measures" was circulated online, which has attracted public attention. Gao said that the "management measures" will be published simultaneously with the latest national ECRLs. The document will list "what can be done" in red line areas in the form of a "positive list." "How to make protection provisions that balance flexibility with rigid management is the key to the document," said Zhao Huiyu, associate professor at KoGuan School of Law of Shanghai Jiao Tong University. "China is facing a difficult situation where it needs to find the right balance between human activities, economic development and ecological protection," she said. "If the most critical institutional provisions are too rigid, local governments would be forced to find their own ways to react to them."

Provinces team up on education, healthcare (China Daily)
2021-12-06

PLA's new-type bomber practices island bombing, mine-laying in S.China Sea (GT)
2021-12-05

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Beijing expects to basically eliminate heavily polluted days by 2025 (GT)
2021-12-08

Beijing builds testing reserves for Omicron as variant threatens countries without vaccine barrier (GT)
2021-12-06

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Shanghai neighborhood locked down due to COVID-19 (China Daily)
2021-12-08

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Guangdong implements action plans for low carbon emissions, exceeds target (China Daily)
2021-12-09

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Xi and Tibet -- footprints and blueprint for a green future (Xinhua)
2021-12-08

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China committed genocide in Xinjiang, says UK independent body (SCMP)
2021-12-10

US House passes bill to ban imports made by Xinjiang forced labour (SCMP)
2021-12-09

So-called tribunal 'under control of terrorist groups' (China Daily)
2021-12-07

Xinjiang cultural heritage inheritors refute 'cultural genocide' claims (China Daily)
2021-12-07

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Hong Kong democrats inc. media tycoon Jimmy Lai convicted over banned Tiananmen Massacre vigil (HKFP)
2021-12-09

Hong Kong leader calls on local officials to understand 'vision, spirit' of Communist Party (SCMP)
2021-12-09

Hong Kong press freedom is in 'free fall' as China's journalism crackdown goes global, says Reporters Without Borders (HKFP)
2021-12-08

Hong Kong elections: state leader Xia Baolong urges public to vote in Legislative Council poll, insists Beijing embraces diversity (SCMP)
2021-12-06

Official applauds HK's new electoral system for balancing social interests, promoting democracy (GT)
2021-12-06

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Macao Casinos to Close Lucrative VIP Rooms in Wake of Junket King's Arrest (Caixin)
2021-12-08
The recent arrest of a Macao junket tycoon has chilled the city's gambling industry, as casinos race to close lucrative VIP rooms run by junket operators. Melco Resorts & Entertainment Ltd., one of Macao's six casino licensees, has decided to close its junket-run VIP rooms at City of Dreams and Studio City — two of its casino resorts — from late December, according to a document seen by Caixin. The company informed junket operators on Monday that cooperation will cease from Dec. 21, according to the document shared with Caixin by industry insiders. Citing anonymous sources, Bloomberg reported Tuesday that another casino operator — Wynn Macau Ltd. — plans to shut down its VIP rooms from Dec. 20. The two companies didn't respond to requests for comment as of Wednesday morning. The move came just a week after Alvin Chau Cheok Wa, chief executive and controlling shareholder of Macao's biggest junket operator Suncity Group Holdings Ltd., was detained on allegations of criminal association, illegal gambling and money laundering. According to prosecutors in the special administrative region, a criminal group headed by Chau set up an illicit betting platform in the Philippines that allowed mainland residents to engage in illegal gambling through livestreaming. The group then used the account of its Macao-based company to transfer its illegal gains through "underground banks," the prosecutors said. Chau is the best-known junket operator in Macao's gambling industry, which developed the service in the 1980s to lure high rollers to VIP rooms set apart from the mass gambling halls. Junket operators are responsible for attracting customers, helping them open accounts and deposit funds, and introducing them to loan sharks. The VIP gambling rooms operated by Suncity closed on Dec. 1. An industry insider told Caixin many gambling companies have started shrinking their business, closing VIP rooms and demanding mainland shareholders withdraw their shares. "Alvin Chau Cheok Wa is the leader of Macao's casino junket industry. His arrest will make local junkets and VIP room operators 'shudder'," JPMorgan Chase & Co. said in a report. This sentiment was echoed by a report from state-owned China International Capital Corp. Ltd., which said Chau's arrest could jeopardize Macao's entire junket industry. The CICC said in a report that although other junket operators haven't yet been affected, the incident signals that their current business model may actually be illegal. "In the long run, we believe that the junket business of the gambling industry may continue to face the regulatory threat," the report said. The only location in China where many kinds of gambling are legal, Macao has one of the world's biggest gambling industries, which is central to the local economy. In 2013, two-thirds of the gambling industry's revenue, or some 238.5 billion patacas ($29.3 billion), came from VIP rooms. But since then, the segment has been hit by regulatory tightening from the mainland authorities, as well as the Covid-19 pandemic cutting off the supply of punters. In 2020, VIP rooms' contribution to the former Portuguese colony's total gambling revenue dropped to 43.5%. Part of the tightening is down to Beijing's concern that high-stakes betting can be an illicit channel for currency outflows and money laundering. In 2019, Macao forbid junket operators licensed there from using the territory as a platform to provide gambling services to customers beyond its borders, as Beijing stepped up oversight on cross-border online gambling, especially involving casinos based in the Philippines. The licenses for Macao's six major casino operators are expected to expire in June 2022. However, "the primary consideration of all major gambling enterprises (in Macao) is not competing for licenses, but policy risks," a gambling industry researcher told Caixin. "The first thing is to survive." Bloomberg contributed to the story.

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Taiwan loses another ally, with Nicaragua switching ties to Beijing (SCMP)
2021-12-10

Strengthen Taiwan defences but keep strategic ambiguity: US officials (SCMP)
2021-12-09

Taiwan cyberattack group targets Beijing, Fujian (GT)
2021-12-08

US and Taiwan aim for new trade framework to tackle supply chain and semiconductor issues (SCMP)
2021-12-07

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US dollar-yuan exchange rate: China ups forex deposit reserve requirement ratio in bid to curb currency rally (SCMP)
2021-12-09

PBOC cuts rates on relending facilities for small businesses and rural sectors (Caixin)
2021-12-08
China's central bank has lowered interest rates on two relending facilities by 25 basis points as an incentive to encourage commercial banks to lend more and at lower interest rates to small businesses and rural sectors.  Starting Tuesday, the one-year relending rate under the programs was lowered to 2%, the six-month rate to 1.9% and the three-month rate to 1.7%, according to data released by the People's Bank of China (PBOC).  The move comes one day after the PBOC announced the lowering of lenders' reserve requirement ratio (RRR) to unleash about 1.2 trillion yuan ($188 billion) into the financial system, amid the country's slowing economic growth. Under the programs, small and midsize banks such as city commercial banks and rural commercial banks issue loans to small businesses as well as rural and agricultural sectors first, and then apply for the PBOC's relending funds.  The last time the central bank lowered relending rates on the two facilities was in July 2020, with a cut of 25 basis points.  Economists said lowering the relending rates doesn't signal a change to monetary policy, but it could encourage banks to lend more to relevant sectors.  Rural sectors and micro and small businesses are still the weaker areas in economic development, and need stronger financial support, said Wen Bin, chief analyst at China Minsheng Banking Corp. Ltd. Cutting the relending rates could prompt banks to lower their interest rates for relevant lending, he said.  Ming Ming, head of fixed-income research at Citic Securities Co. Ltd. said that the cut to the relending rates wasn't unexpected, as micro, small and midsize companies and the rural economy have been under sizable pressure.  Analysts at Guotai Junan Securities Co. Ltd. said lowering the relending rates was necessary to support micro, small and midsize companies, which are major job creators but not resilient to risks brought by a looming economic downturn. The rate cut will significantly lower the costs for small and midsize banks to lend to businesses, and is conducive to helping manufacturers and small businesses reduce their financing costs, the analysts said in a report published on Wednesday. 

China delivers stellar trade performance as global clout grows after 20 years in WTO (GT)
2021-12-07

Property sales in China fall for fifth straight month (Caixin)
2021-12-07
China's real estate market continued to flounder in November. The sales of the top 100 property developers plunged 37.6% year-on-year by value, marking the fifth successive month of decline. In the past month, the top 100 developers reported total property sales of 750.8 billion yuan ($117.9 billion), down 3.4% from October, a report released by consultancy China Real Estate Information Corp. (CRIC) on Tuesday showed. Among these developers, four out of five reported lower sales compared to November last year. The continued slump in the property market followed tightened rules on lending to the sector. China's campaign to deleverage the property industry, which had for years thrived on expansive borrowing, restricted developers' financing capability and left property giants such as China Evergrande Group scrambling to repay their debts. Its ripple effects have dampened homebuyer confidence in recent months. The sales of some developers in liquidity troubles continued to shrink considerably. Evergrande only raked in 5 billion yuan in sales last month, well below the monthly average of more than 60 billion yuan last year, according to a report by SWS Research Co. Ltd., a Shanghai-based financial service provider. Kaisa Group Holdings Ltd. and Yango Group Co. Ltd. (000671.SZ +2.74%) also recorded big sales declines. "The sales of these real estate enterprises were so poor because homebuyers don't have confidence in them," said an executive of a real estate company. The more troubled a developer is, the more it needs to rely on sales revenue to maintain normal operations. But homebuyers no longer deem it safe to purchase such developers' housing that is still under construction, worrying that they could go bankrupt and the housing projects may never be completed, he said. The executive said in the past, when one developer plans to exit the market, there would usually be other developers who want to take over the company and their projects. But this year, all developers are short on cash for acquisitions, and they won't take on more debt to acquire another company, he said. The deleveraging campaign had capped mortgage loans banks can hand out and prolonged the mortgage application procedure. But the CRIC report pointed out that the restriction on mortgage loans may be loosening. In cities such as Shanghai, the waiting time for mortgage approval has been cut in half, while banks in cities including Guangzhou and Shenzhen have lowered mortgage rates. Still, the easing of credit policy won't prompt banks to lend to those "problematic" real estate firms, whose liquidity pressure may keep worsening, the report said. One of the most indebted developers, Evergrande said Friday that it could have trouble repaying a $260 million debt guarantee obligation, hinting at the possibility of triggering cross-defaults on its $19.2 billion in outstanding dollar bonds. In response, the People's Bank of China (PBOC) said on the same day that the risks caused by a certain individual real estate company in the short term will not undermine the fundraising function of the market for the medium and long run. Chinese authorities have been trying to restore confidence in the property sector. Analysts at Central Wealth Securities Investment Ltd. recently wrote that the PBOC-backed National Association of Financial Market Institutional Investors, which oversees bond issuance on the interbank market, summoned some property developers to a meeting, and some developers are planning to issue bonds on the interbank market in the near future.

CPC leadership sets tone for economic policy (China Daily)
2021-12-06

China to cut reserve requirement ratio for second time this year to boost economic growth amid strong headwinds (SCMP)
2021-12-06

China calls for better international consultation over monetary policy to ensure 'fairer' international environment (SCMP)
2021-12-06

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Working group of Mongolia-China Intergovernmental Commission holds meeting (Montsame)
2021-12-09

National forum against corruption takes place (Montsame)
2021-12-08

"MPP focuses on revival policy to stimulate economy" (Montsame)
2021-12-06

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Embassy of Switzerland