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Wednesday, 31 July 2013

Banking sector achieves goal of risk control

The chief of China’s top banking regulator said on July 31 that the banking sector has achieved its risk control goal in the first half of 2013, with growth in some financial products slowed and loan risks in a few target sectors under control.


In the January-June period, loans via local government financing vehicles (LGFVs), wealth management products (WMPs), as well as businesses of trust companies all grew at a slower pace, said Shang Fulin, president of the China Banking Regulatory Commission (CBRC).


By the end of June, outstanding loans via LGFVs stood at 9.7 trillion yuan ($1.57 trillion), up 6.2 percent year-on-year. The growth rate was 9 percentage points lower than the average growth rate for all categories of banking loans, the CBRC data show.


The balance for WMPs came at 9.08 trillion yuan by the end of June, with non-standard credit assets totaling 2.78 billion yuan, 7 percent short of the level recorded in late March, when the CBRC released a notice on regulating the WMP business of the country’s commercial banks.


The balance of trust assets totaled 9.45 trillion yuan, with monthly growth rates gradually slowing from 5.2 percent in January to 0.44 percent in June.


Shang also said that credit risks for certain sectors have been put under effective control. By the end of June, commercial banks’ non-performing loans (NPL) stood at 539.5 billion yuan, representing an NPL rate of 0.96 percent.


The real estate sector’s new loans in the first half also demonstrated a better structure, with the proportion of loans extended for property development dropping to 24.55 percent and that for personal home purchases rising to 74.17 percent.


Meanwhile, bank liquidity has returned to normal levels, according to the CBRC. The loan-to-deposit ratio stood at 72.43 percent, with the reserve requirement ratio kept above 20 percent as of the end of June.


China’s bank regulator has moved to tighten regulation over some financial services to dissolve risks in the country’s shadow banking system amid the central government’s call to guard against financial risks.


In June, China’s banking sector experienced a liquidity crunch that sent interbank rates to double digits, which some analysts believed to be the pain resulted from the country’s economic deleveraging.






Mandy Peng via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/NaW4ym_SvnE/

Ozone adds to dangers of pollutants

Air quality report from ministry paints worrying picture for cities


Ozone has become a major air pollutant in addition to fine particles, posing an even higher risk, according to a report released on Wednesday.


The air quality report from the Ministry of Environmental Protection covers three key areas and 74 cities during the first half of 2013.


The average levels of ozone in Beijing, Tianjin and Hebei province, the Yangtze River Delta area, and the Pearl River Delta area all exceeded the national level by about 20 percent from January to June.


Baoding in Hebei province recorded the highest reading for the daily average ozone level — 500 micrograms per cubic meter — more than twice the national level.


Although ozone in the stratosphere blocks high levels of ultraviolet from reaching Earth, it is highly destructive to the respiratory tract, according to research findings.


High levels of ozone are also irritating to the eyes and may cause irreversible damage to the lungs and central nervous system.


The report says that based on the data for June, air pollution caused by ozone in the Yangtze and Pearl River delta areas was even more serious than pollution caused by PM2.5 — particulate matter smaller than 2.5 micrometers in diameter that can reach deep into the lungs.


Ozone is more hazardous to human health than PM2.5, more complicated and harder to control, according to Zhao Hualin, head of the pollution prevention and control department at the Ministry of Environmental Protection.


Zhong Liuju, an atmospheric environmental expert from Guangdong province, said ozone is also dangerous because of its invisibility, which means that pollution can be severe even on blue-sky days.


Chai Fahe, vice-president of the Chinese Research Academy of Environmental Sciences, said high levels of ozone can also enhance the process in which PM2.5 is formed.


Chai said ozone does not come directly from emissions involving human activity, but is formed when there is strong sunshine and high temperatures through the reaction of nitrogen oxides and volatile organic chemicals.


He said one way to control ozone levels is to reduce nitrogen oxides, which come mainly from vehicle exhaust emissions.


In Baoding, the city government has listed ozone as one of the major pollutants in its plan to improve air quality.


Measures have been taken to reduce exhaust emissions by removing highly polluting vehicles from the roads, restricting barbecue stalls in the open air and removing small boilers, said Chen Zhenhui, an official from the city’s environmental protection department.


The report also said that almost 40 percent of the 74 cities that publicized their readings failed to meet the national standard for fine particle pollutants — less than 35 micrograms per cubic meter — for more than three months in the first half of the year.


In Hebei, seven cities are on the top 10 list for having the most severe air pollution.


Shijiazhuang, the provincial capital, saw fewer than 20 days of good air quality in the first six months of the year.


A provincial action plan for air quality, which includes much tougher measures to cut major pollutants in the next five years, especially PM 2.5, will be released soon, according to an official from the provincial environmental protection department in Hebei, who declined to be named.


Four cities in the province — Shijiazhuang, Tangshan, Langfang and Baoding — were recently included on the central government’s list of key areas for air pollution control.


The province has set emissions caps for major pollutants from highly polluting industries, such as the thermal power and iron and steel industries.


The official said the caps will come into force from July 1, 2014, adding that other measures will also be taken, such as strengthening supervision and building early warning and emergency response systems.


The situation for the region of Beijing, Tianjin and Hebei province is even more worrying.


Its PM2.5 level was recorded at 115 micrograms per cubic meter, more than three times the national standard, meaning that no cities in the area had good air quality.


By WU WENCONG in Beijing and ZHENG JINRAN in Shijiazhuang ( China Daily)






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Aso’s Nazi remarks alarm Asian nations: FM spokesman

A spokesman for China’s Foreign Ministry said Wednesday that Japanese Deputy Prime Minister Taro Aso’s Nazi remarks have alarmed Japan’s neighbors and the international community about the country’s development direction.


On Monday, Aso said in a lecture that Japan should learn how Germany’s constitution under the Weimar Republic was transformed by the Nazis in the early 1930s before anybody knew what was happening.


Aso also said it is natural to visit the war-linked Yasukuni shrine to pay tribute to those who sacrificed their lives for the country.


The shrine to the 2.5 million Japanese war dead, including 14 convicted Class-A war criminals, is seen as a symbol of Japan’s past militarism.


Japan’s neighbors in Asia and the international community have to heighten their vigilance over the country’s development direction, since a major Japanese leader spoke openly to amend the pacifist Constitution following an example set by the Nazis, spokesman Hong Lei said in a press release.


The Yasukuni shrine issue concerning how Japan views its history of aggression and whether it respects the feelings of people of war-victim countries in Asia, said Hong.


“We demand the Japanese side reflect on its history, fulfill its commitments on historical issues and win the trust of Asian neighbors and the international community through concrete actions,” he said.






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7.5% GDP growth ‘in reach’

Fine-tuning will consider varying needs of areas, sectors, NDRC official promises


China’s top economic planner expressed confidence in achieving the 7.5 percent gross domestic product growth target this year through hard work after the government decided to adopt further measures to stabilize market expectations and release enterprises’ vitality.


National Development and Reform Commission Minister Xu Shaoshi showed his determination on Wednesday in an interview with Xinhuanet.com, one day after President Xi Jinping vowed to guarantee the year’s target by further clarifying the government’s policy stance for the second half of the year and confirming the direction of ongoing structural reforms.


Xu stressed the need to maintain “moderately abundant” monetary liquidity and efficiently make use of credit and fiscal capital to support the industrial economy.


“Policy fine-tuning will be likely at the right time,” he said.


“Diversified adjustments that take into consideration the different situations of regions, industries and enterprises will be taken in the second half” to strengthen enterprises’ confidence by maintaining growth within a reasonable range and preventing risks, Xu said.


For the next step of reform, the minister also pledged the nation would launch demonstration projects for private funds to invest in infrastructure construction and public services, as well as eliminate unreasonable fees in banking services.


A statement from the Political Bureau of the Communist Party of China’s Central Committee laid out its main strategies for the coming quarters on Tuesday. They include increasing public consultation, maintaining rational investment growth and supporting small and medium-sized enterprises.


It said economic growth in the first six months of the year was “stable” despite extremely complicated domestic and international conditions.


The country’s economy experienced 7.6 percent year-on-year GDP growth in the first half of the year. The second quarter growth slowed to 7.5 percent from 7.7 percent in the first quarter.


Lian Ping, chief economist at the Bank of Communications, said in the second half of 2013, it is unlikely to see a substantial economic rebound although the reforms may accelerate.


“Industrial enterprises may see better conditions in the second half if the investment in infrastructure construction and public services can support stable economic expectations while benefiting small-scale businesses,” said Lian.


He said the problem of excessive production capacity is still serious and that it is hard to boost domestic consumption or promote exports over a short period.


Yao Wei, chief economist in China with Societe Generale, a French financial group, said the Political Bureau’s meeting indicated little change from the balanced stance that has been communicated to the market in the past few weeks.


The top leadership signaled only modest policy easing, preferably in the form of economic restructuring and reform, Yao said.


“Excess credit growth will still be contained and there will be no large-scale fiscal stimulus. One implication is that capacity consolidation may speed up so that resources and capital can be freed up from inefficient sectors.”


According to a survey released on Wednesday by Netease Annual Economist Conference, 71.25 percent of China’s economists are “cautiously optimistic” about the new leadership’s reform determination, while 23.75 percent said they are “optimistic”.


Half the number of economists surveyed said the largest problem for China’s economy is “overcapacity”, while the second largest concern, for about 24 percent of the respondents, is the existence of a property bubble. Nearly 65 percent said “average household income” should be the major indicator to measure realization of the “Chinese dream”.


Yu Yongding, a former member of the Monetary Policy Committee of the People’s Bank of China, warned at the conference that local government debt is an issue that policymakers should be “highly alert” to because the government actually “has no idea” of how large the debt exactly is.


Xu Shanda, former deputy director of the State Administration of Taxation, said at the conference he was glad to see the Political Bureau meeting held on Tuesday emphasize the key areas for reforms, but it did not mention “curbing the property market” as it always had done before.


“This is a very important message. Instead of restricting home purchasing, the meeting mentioned ‘unleashing’ demand, which showed a new and different approach,” Xu said.


By CHEN JIA and ZHENG YANGPENG ( China Daily)






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Xi vows to protect maritime interests

Country will enhance enforcement to match its national strength


China’s top leader has vowed to protect the country’s maritime interests and be fully prepared for the complex issues in the region.


President Xi Jinping made the pledge on Wednesday while chairing a group study session of the Political Bureau of the Communist Party of China Central Committee to discuss a roadmap to becoming a maritime power.


Xi stressed China will stick to the principle of “shelving disputes and carrying out joint development” for areas over which China owns sovereign rights.


“We love peace and will remain on a path of peaceful development, but that doesn’t mean giving up our rights, especially involving the nation’s core interests,” Xi said.


The country will enhance its maritime law enforcement capacity to match its overall national strength, he said.


Li Guoqiang, deputy director of the Center for Chinese Borderland History and Geography at the Chinese Academy of Social Sciences, said Xi’s speech showed the country’s decision to protect its maritime interests, an important part of building China into a maritime power.


“The speech also emphasized solving maritime issues through diplomatic and political means, reflecting that China, as a responsible country, will not use force rashly,” Li said.


Sea disputes between China and other countries have surged in recent years. In the South China Sea, the Philippines, Vietnam, Malaysia and Brunei all have competing claims over some Chinese islands, while Sino-Japanese relations have been strained since September when Tokyo “illegally purchased” three islands in the East China Sea.


Yang Baoyun, an expert on Southeast Asian Studies at Peking University, said Xi’s speech signaled that China will maintain steady development in its neighboring areas and protect its maritime interests.


“It will be tough for China, but we are making all efforts,” Yang said.


Xi also stressed the importance of developing the marine economy, protecting the marine environment and strengthening marine science and technology research.


“A developed marine economy is an important part of building maritime power,” Xi said, adding that China will foster and strengthen emerging high-tech marine sectors and optimize the structure of the marine industry, while completing a general plan for innovative marine technology.


The emerging sectors in the marine economy include marine bio-pharmaceuticals, seawater utilization and renewable energies, and offshore equipment manufacturing.


While boosting the country’s marine economy, Xi emphasized the importance of protecting the marine environment, saying efforts will be made to control the worsening marine environment.


He said marine environmental protection will be given the same priority as marine exploration.


A mechanism to enforce compensation for marine ecological damage to protect the ocean will be created, he said.


By WANG QIAN and ZHANG YUNBI ( China Daily)






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Apple CEO met China Mobile head, discussed cooperation

(Reuters) – Apple Inc CEO Tim Cook on Tuesday met with the head of China Mobile Ltd, the world’s largest mobile carrier by subscribers and the only Chinese carrier that doesn’t offer iPhones and iPads.


The meeting with China Mobile Chairman Xi Guohua in Beijing was to discuss matters of cooperation, the Chinese firm told Reuters in an emailed statement. It gave no further details.


Read Full Article HERE






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Europe’s Biggest Solar Projects Threatened by China Deal

Europe’s decision to curb imports of Chinese solar panels threatens to limit the biggest projects using the technology in the 28-nation bloc while having little impact on the manufacturers accused of dumping their products.


The agreement to set a minimum price of 56 euro cents ($0.74) a watt for panels until the end of 2015, reached this weekend, will hurt developers of ground-mounted plants and reduce installations, said Bloomberg New Energy Finance, IHS Inc. (IHS) and the U.K. Solar Trade Association. Developers were already buying Chinese panels cheaper, they said.


Read Full Article HERE






Marc Roca, Bloomberg via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/1sOy7wOJ8nM/

China’s Bo to plead guilty, but maybe not to all charges: sources

(Reuters) – Disgraced Chinese leader Bo Xilai has agreed to plead guilty at a trial likely to be held within weeks, three sources said, in an apparent bid to earn a more lenient sentence and allow authorities to close the door on the country’s biggest political scandal in decades.


But it was not clear if he would plead guilty to all or only some of the charges of accepting bribes, corruption and abuse of power.


Bo’s downfall is the country’s most divisive political scandal since the 1976 downfall of the Gang of Four at the end of the Cultural Revolution.


Read Full Article HERE






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China Exports to North Korea Fall

BEIJING — Newly released Chinese trade data show that during the first six months of the year, exports to North Korea fell for the first time in four years. The figures were made public shortly after Chinese Vice President Li Yuanchao wrapped up a visit to North Korea to mark the 60th anniversary of the end of the Korean War.


Newly released figures from China’s General Administration of Customs shows exports to North Korea shrank by more than 13.6 percent from January to June, to $1.59 billion when compared with the same period last year.


Read Full Article HERE






William Ide, Voice of America News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/NPN5Vx-OS88/

Insight: Corporate sleuths on edge after China detains foreign consultants

(Reuters) – The detention by Chinese authorities of a British corporate investigator and his American wife in the wake of a corruption probe into pharmaceutical giant GlaxoSmithKline has had a chilling effect on other risk consultants working in China.


It’s unclear why Peter Humphrey and Yu Yingzeng, whose firm ChinaWhys has done work for GSK and other drug makers, were detained. But corporate investigators said they were concerned about the repercussions for the industry.


Read Full Article HERE






Alexandra Harney, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/6lBiGYguAio/

Tuesday, 30 July 2013

Obama’s African Policy in Dilemma

As the least developed region, Africa has been the focus for global governance. However, in recent years, Africa’s economy has seen rapid development, especially after the financial crisis when steady economic growth in Africa attracted global attention. In 2000, The Economist described Africa as a “hopeless” continent, but this changed into a “hopeful Africa” in 2011. Actually, the impact of Africa’s rise has gone beyond the regional level and gained far-reaching global significance. For the rest of the world, Africa’s rapid development means these countries offer more investment choices, broader overseas markets. But for the United States, Africa also becomes an important region to maintain and expand its global interests.


Since 2009, the Obama administration has affirmed the importance of Africa in U.S. national strategy, and clearly defined the core U.S interests in Africa, including: (a) ensuring the security of the United States, its citizens, and allies and partners; (b) promoting democratic states that are economically vibrant and strong partners of the United States on the world stage; (c) expanding opportunities for U.S. trade and investment; (d) preventing conflict and mass atrocities; and (e) fostering broad-based, sustainable economic growth and poverty alleviation. These can be generally summarized into four categories, namely security interests, political interests, economic interests and development interests.


To this end, the Obama administration has committed to enhance its efforts in four areas: (1) strengthen democratic institutions, increase assistance for responsible government efforts, while promote U.S.-Africa partnership based on shared responsibility and mutual respect; (2) expand its military presence in Africa to support African peacekeeping capacity, and attach importance to the interacting effects of military and diplomacy; (3) create a favorable trade and investment environment, support African economic self-development, while improve the awareness of U.S. companies to invest in Africa and promote US-Africa economic and trade relations; (4) strengthen public health care, ensure social justice and equality of opportunity and promote sustainable development in Africa. The United States tried to improve relations with African youth leaders, eliminate racial prejudice and discrimination against women, and closely cooperate with international/regional institutions like the United Nations, African Union.


Obviously, the Obama administration has made some adjustments on the traditional U.S. diplomacy in Africa since its first term, both in diplomatic concepts and actual policy measures. However, these adjustments haven’t brought ideal results, with the manifestation of widespread criticism from the United States and African countries, which reflects the dilemma of the United States’ African diplomacy.


The Obama administration tried to expand trade opportunities between Africa and the United States and promote U.S-Africa partnership. However, it seems the Obama administration has failed to effectively extend US-Africa trade volume, especially compared with the significant growth of China-Africa trade. In 2011, China-Africa and US-Africa trade volume reached $127.3 billion and $94.3 billion respectively. Actually, since 2009, China has been Africa’s largest trade partner.


President Obama has repeatedly stressed the importance of Africa and tried to develop the U.S.-Africa partnership, but so far with out concrete actions. Analysts noted that President Obama in the first term only visited one African country, Ghana, forless than 24 hours. Moreover, the U.S. has always regarded itself as the preacher of African governance, which makes U.S.-Africa relations unequal. South African President Jacob Zuma made it clear that Western countries must change their old “colonial” approach to Africa. In view of this, the Nigerian newspaper Daily Trust wrote in an editorial: “Obama’s challenge is to break from that legacy and work with Africa’s leaders in a partnership of mutual trust and confidence to found an Africa united in purpose, political stability and economic progress.”


For African countries, Obama’s African diplomacy in the first term sounded beautiful, but failed to meet African countries’ expectations. First, Africa’s security situation has not improved. The Obama administration focused on using more drones, establishing secret intelligence agencies and deploying special forces to strengthen its military presence in Africa. However, these measures do not ensure African security, and even make the situation worse as terrorists establish new bases in African countries. Second, African countries do not fully agree with the Obama administration’s “prescription” for democracy building and national governance. Andrew M. Mwenda, founder of the Ugandan newspaper The Independent, has pointed out western leaders’ suggested solutions for Africa’s problems, like corruption and poor governance, are based on prejudice and stereotypes. According to Mwenda, western leaders think subjectively by “copying and pasting” the western political system and hoping it can solve all of Africa’s problems. But actually, “our problems are largely (certainly not entirely) domestically generated, as are the demands to solve them…They cannot be solved by foreign diktat.” From this perspective, Obama’s policy in Africa faces a serious “trust” crisis.


It should be noted that some African countries are still very hopeful for the future Obama’s African policy. Lindiwe Zulu, international relations adviser to President Jacob Zuma said after Obama’s victory in the U.S. election 2012: “We also hope that in the next four years Africa will occupy a higher space in his agenda.” However, efforts to restore the U.S. image, reputation and influence in Africa still have a long way to go.


Firstly, the Obama administration faces a number of international and domestic challenges, such as ending the Afghanistan and Iraq wars, reviving the U.S. economy, resetting U.S.-Russia relations, etc. These challenges are more urgent and important for US than the African issue.


Secondly, Obama’s African strategy has grand, long-term goals, but lacks maneuverability now. In other words, Obama’s policy in Africa does not fully comply with the current actual requirements of African countries. For most African countries, the desire is to strengthen infrastructure construction, promote economic development, and improve people’s livelihood.


Thirdly, the zero-sum strategic competition has been the main logic for the Obama administration, which limits the effectiveness of U.S. African policy and creates the barriers for major powers to jointly help African development. Chris Coons, the chair of the Senate Foreign Relations Subcommittee on African Affairs, made a comment in the report Embracing Africa’s Economic Potential: “China, which has made dramatic inroads across the continent in recent years, may undermine or even counter value-driven U.S. goals in the region…” In fact, the relationship between China and the United States in Africa is not doomed to be competitive. It can be cooperative. In many fields, such as strengthening Africa’s own capacity building, maintaining African security as well as preventing and controlling infectious diseases, there is a wide range of common interests for China and the United States to cooperate.


In late June and early July, President Obama made his first trip to Africa in the second term, visiting Senegal, South Africa and Tanzania with the aim to reinforce U.S. commitment to expanding economic growth, investment, and trade; strengthening democratic institutions; and investing in the next generation of African leaders. This can be considered the concrete actions of Obama administration to change its poor performance in African diplomacy in the first term. During his visit to South Africa, President Obama made these remarks at a joint press conference with President Zuma: “I actually welcome the attention that Africa is receiving from countries like China and Brazil, and India, and Turkey…I don’t feel threatened by it…it’s a good thing.” If that is indeed the case, it is good news for all the countries related.


Chen Jimin, Ph.D, is an Assistant Research Fellow for the Institute for International and Strategic Studies at the Party School of Central Committee of C.P.C.






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PBOC repo move aims to aid credit supply, cut rates

The People’s Bank of China injected 17 billion yuan ($2.77 billion) into money markets on Tuesday through seven-day reverse bond repurchase agreements, the first such move in five months, to ease concerns over a credit crunch that pushed benchmark interbank lending rates to four-week highs.


Analysts said that although the volume of the operation was limited, it sent a signal to money markets.


“I see the levels more as a shift in the PBOC’s stance to actively manage money market conditions to avoid a re-run of the liquidity squeeze in June,” Societe Generale economist Chong Wee-khoon said in a note the same day.


It was the first time that the PBOC, the central bank, had conducted open market operations since June 20. It was also the first time the bank injected funds into the money markets.


“The levels could also serve as a signal that the era of ultra-loose and easy money is over,” Chong wrote.


The PBOC’s moves since the liquidity squeeze in June in the open market may help alleviate market fears that the money crunch in June might be repeated at the end of July, said a trader with an Asian bank in Shanghai.


The benchmark seven-day repurchase rate spiked to 5 percent on Tuesday for a second straight session, following a jump to 4 percent on July 26. It exceeded 5 percent on Monday for the first time in four weeks.


The rate reached a record – 12.45 percent – on June 20.


Liquidity eased on Tuesday in response to the central bank’s money injection. The seven-day Shanghai interbank offered rate, a gauge of the availability of cash in the banking system, fell 8.5 basis points to 4.97 percent, according to a weighted average compiled by the National Interbank Funding Center.


Amid tight funding conditions anticipated for the remainder of the year, and the country’s determination to achieve its growth targets, the central bank may take some measures to ease conditions in the money market, according to Oliver Chiu, head of research and investment advisory of retail banking in the global consumer group at Citibank (China) Co Ltd.


Stocks rose on Tuesday, with the benchmark Shanghai Composite Index climbing for the first time in five days as it added 0.7 percent to close at 1,990.38. The gauge has risen 0.6 percent this month after sinking 14 percent in June.


Share prices of lenders rose on Tuesday after plunges in the past few weeks. Ping An Bank Co gained 3.1 percent, Citic Securities Co climbed 1.9 percent and Bank of China Ltd rose 2.3 percent.


A total of 85 billion yuan in central bank bills will mature this week, compared with zero last week, data compiled by Bloomberg show.


By Wu Yiyao in Shanghai ( China Daily)






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2,290 disciplined for excessive extravagance

Government officials violated new Party guidelines against corruption


More than 2,000 Party and government officials have been punished as of late June for breaking new Party rules against extravagance and excess formality, an official from China’s top anti-graft agency said on Monday.


A total of 2,290 officials violated the guidelines, said Xu Chuanzhi, head of the department responsible for the supervision of Party officials’ work habits under the Central Commission for Discipline Inspection of the Communist Party of China.


The CPC Central Committee issued the guidelines in December to improve Party work habits.


The commission publicized eight typical cases, in which officials had misappropriated public funds for entertainment purposes or illegally accepted cash and gifts.


In one of the cases, an official from Qingshan district of Wuhan, the capital of Hubei province, received a grave warning for taking 10 civil servants sightseeing to Hainan province at public expense.


Anti-corruption authorities ordered those officials to pay for their trips, the commission said.


In another case, Wang Qinsheng, deputy head of the Hunan provincial department of justice, received a warning for accepting money and gifts at his son’s wedding in January, the commission said.


The official was exposed in an online post that accused him of taking bribes at the event. The post also pointed out that more than 20 police vehicles and 100 officials from judicial authorities attended the wedding.


The Hunan Party Commission for Discipline Inspection announced afterward that Wang received around 140,000 yuan ($22,800) from 78 people at the wedding, and the official has turned over the money to the commission.


In the wake of that scandal, the Hunan Party Commission for Discipline Inspection released the draft of a new rule last week that bans officials from accepting bribes at birthday celebrations and their family members’ weddings and funerals.


In response to some people’s claims that accepting gifts and money at birthday celebrations and wedding ceremonies is a private issue and should not be banned, Hunan’s anti-graft agency said on Monday that the officials can either accept the ban or resign.


The release of typical cases and the number of officials punished is a regular occurrence that aims to push forward the Party’s campaign to improve work habits.


The guidelines include reducing traffic controls imposed for officials’ convenience, banning red-carpet arrangements, and resisting extravagant and bureaucratic visits and meetings.


The CPC Central Committee also initiated the “mass line” campaign in mid-June. The campaign, which is scheduled to run a year, requires officials to give top priority to the interests of the people and maintain close ties with the public.


The Central Commission for Discipline Inspection of the CPC asked officials and Party members to stick to the eight bureaucracy-busting guidelines, eliminate improper work habits and firmly carry forward the “mass line” campaign, the statement said.


It also urged disciplinary authorities at all levels to strengthen inspection and supervision and punish those violating the anti-bureaucracy rules.


Public complaints allowed


A new regulation in Nanjing, Jiangsu province, forbids government employees from preventing people from making complaints to city leaders, Chinanews.com reported on Monday.


The regulation rules that no complaints from people to city officials are to be prevented during fact-finding missions or inspections of grassroots units in Nanjing. There should be no time limit for meetings during inspections or symposiums, according to the regulation.


City leaders are required to schedule at least one day a season to receive visits from the public — or go to grassroots units — to hear their suggestions.


The regulation was drafted because of public complaints during the city’s mass line campaign, which refers to the guideline to prioritize and protect the interests of the people.


By AN BAIJIE ( China Daily)






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Top leader vows to meet growth target

China still faces a strategic opportunity and economy is poised to expand steadily.


China’s top leadership says it will guarantee that the 7.5 percent growth target for this year will be met, despite the continuing economic slowdown.


President Xi Jinping made the remark on Tuesday when he chaired a meeting of the Political Bureau of the Communist Party of China’s Central Committee to lay out the economic strategy for the second half of the year.


The meeting decided that China will “maintain steady growth, adjust economic structure, and forge ahead with reform” to guarantee “this year’s key tasks for economic and social development will be fulfilled”.


According to a statement from the political bureau, major economic indicators for the first half are still in a reasonable range, despite extremely complicated domestic and international conditions.


The authorities believe the country still faces a “strategic opportunity” and has the conditions for steady and healthy economic growth. “The economy will maintain steady growth in the second half of this year,” the statement said.


The meeting also underlined the need to prepare for complex and difficult situations, as the global economic recovery has not been progressing well.


The government will maintain “stable macroeconomic policy, flexible micro policy and social policy that can support the bottom line,” the statement said.


Policy fine-tuning will be possible at the right time, it added.


China’s economic growth rate in the second quarter slowed to 7.5 percent from 7.7 percent in the first three months, with the leadership determined to transform development patterns and focus on long-term rebalancing.


In the first half, the Consumer Price Index – a main gauge of inflation – increased by 2.4 percent year-on-year, compared with 3.3 percent in the same period of 2012, lower than the year’s target of 3.5 percent.


The political bureau highlighted key areas to guide macroeconomic policy and to focus on improving the quality of economic growth:


Maintaining a proactive fiscal policy and prudent monetary policy, and improving efficiency of fiscal funds to support the industrial economy;


Upgrading public consumption, maintaining rational investment growth and encouraging healthy development of the real estate market;


Strengthening policy support and services for small and medium-sized enterprises, and removing administrative fees to ease the burden on small businesses;


Accelerating the development of the information, energy conservation, environmental protection and new-energy industries, as well as boosting emerging services;


Stabilizing foreign trade, broadening exports and raising imports, while encouraging qualified enterprises to invest overseas.


Analysts said more detailed measures are expected to be announced after the third quarter to improve structural reforms and release stronger driving power for economic growth.


“China is on the right track for economic reform,” said Jean Pierre Petit, president of Green Economic & Financial Notebooks, a French economic research organization founded in 1986.


He was quoted by French newspaper Le Monde last month as saying that China has weathered the global financial crisis better than any other major country.


Addressing China’s economic situation, Petit said an economic slowdown in the country may have a negative impact on the global economy.


But in the long run, China will welcome the shift from an investment- and export-driven economy to a model favoring consumption. “This is a welcome trend,” he said, adding that this is the right direction for the new leadership to take.


Zhu Haibin, chief China economist with JPMorgan, expects “the economy’s sequential growth momentum to stabilize and improve modestly in the second half”.


He added, “Not surprisingly, Premier Li Keqiang has reiterated maintaining the 7.5 percent growth target for 2013 – with labor market conditions being the key area of concern.”


Zhu said the service sector is in better shape, but the manufacturing sector is suffering because of overcapacity.


While GDP growth slowed to 7.6 percent in the first half, growth in tertiary-sector GDP, which mainly reflects service activities, improved modestly to 8.3 percent year-on-year, according to the National Bureau of Statistics.


Possible fine-tuning by policymakers in the second half may see the central bank cut the reserve requirement ratio to supplement market liquidity if capital outflows increase, Zhu said.


“But a more important task for the central government is to improve financial reforms,” Zhu added.


Tuo Yannan in Brussels contributed to this story.






China Daily via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/3lqv2dHhZbA/

China-U.S. talks yield “incremental progress”: U.S. trade chief

The United States and China made “incremental progress” on a number of issues in the recent high-level bilateral talks, U.S. trade chief Michael Froman said on Tuesday.


In a conversation with Tom Donohue, president and CEO of the U.S. Chamber of Commerce in Washington, U.S. Trade Representative (USTR) Froman said he saw encouraging signs for U.S.-China relations as Chinese President Xi Jinping met with U.S. President Barack Obama in California in June and the two sides concluded the annual Strategic and Economic Dialogue (S&ED) in Washington earlier this month.


For example, during the recent round of S&ED, “China agreeing to start negotiations on a bilateral investment treaty based on the principles of national treatment and pre-establishment, and based on the ‘negative list,’ is a potentially very important development and could help drive reform in China,” said Froman, who took up the post of USTR last month.


“We took that as an encouraging sign and look forward to engaging with them” on a lot of issues, he added.


Froman also said that China’s new leadership was grappling with a set of economic issues, including economic transition, air pollution and food safety, and hoped these moves would have positive effects on bilateral relationships.


In terms of the Trans-Pacific Partnership (TPP) trade negotiations, which involved 12 countries and completed 18th round of talks, Froman said he was “cautiously optimistic” that a final agreement could be reached by the end of this year.


“It’s an incredibly complex negotiation … it’ s a challenge for everybody but I feel good, we’ve got momentum and there’s a real focus on getting it done,” he said.


Turning to the transatlantic trade deal between the United States and the Europe Union, which concluded the first round of talks earlier this month, Froman noted that the key of the agreement was not only eliminating tariffs and addressing non-traditional trade barriers, it’s also eliminating unnecessary differences on regulatory standards between the two sides. That’s “going to be tough,” he said.






Xinhua News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/apA5nOrktn8/

Over 10 die of heatstroke in “hottest Shanghai summer”

Over ten people in Shanghai have died of heatstroke in the east China city’s unprecedented summer heat, local health officials said Tuesday.


The Shanghai Municipal Center for Disease Control & Prevention said the persisting high temperatures this summer have caused a spike in the number of heliosis patients in the city. But center officials declined to disclose the specific number of deaths.


Temperatures in Shanghai surpassed 39 degrees Celsius on Tuesday, the 8th straight day for temperatures to rise above 38 degrees Celsius, the Shanghai Meteorological Center said.


The center said that with 24 days of temperatures at or above 35 degrees Celsius monitored so far, this July has been the hottest for the financial and business center since weather records started 140 years ago.


In an eye-catching demonstration of the hot weather, a reporter from a Shanghai TV station successfully barbecued pork slices on outdoor marble in just ten minutes.


The disease control and prevention center said over 30 percent of the patients who died were hit by summer heat when they were indoors.


A doctor from Shanghai Minhang District Center Hospital said three elderly patients have died of sunstroke at his hospital, while two others were in life-threatening condition.


The doctor surnamed Zheng advised all elderly citizens not to avoid using air conditioning, referring to widely held belief among elderly Chinese that air conditioning is unhealthy or a waste of money.


Heat waves continued to scorch many parts of China on Tuesday, triggering level two emergency response to heat from the China Meteorological Administration (CMA).


The emergency response covers provinces including east China’s Anhui, Jiangsu, Zhejiang and Jiangxi, central China’s Hunan and Hubei, south China’s Fujian, and Shanghai and Chongqing municipalities.






Xinhua News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/UoiMermPRJY/

US, China Begin Human Rights Dialogue

U.S. and Chinese officials discuss the sensitive topic of human rights during talks beginning Tuesday in southwest China.


Washington and Beijing agreed earlier this month to hold the two-day U.S.-China Human Rights Dialogue in Kunming, the capital of China’s Yunnan province.


The U.S. State Department says the U.S. side will bring up the rule of law, freedom of religion, freedom of expression, labor rights, and the rights of ethnic minorities in China.


Read Full Article HERE






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China urbanization cost could top $106 billion a year: think-tank

(Reuters) – The cost of settling China’s rural workers into city life in the government’s urbanization drive could be about 650 billion yuan ($106 billion) a year, the equivalent of 5.5 percent of fiscal revenue last year, a government think-tank said on Tuesday.


The figure is based on the assumption that 25 million people a year settle in cities, with the government spending the money on making sure they enjoy the same benefits in healthcare, housing and schools that city residents have, the Chinese Academy of Social Sciences(CASS) said.


Read Full Article HERE






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Japan envoy meets China foreign minister amid strained ties

(Reuters) – Japan’s top career diplomat met China’s foreign minister on Tuesday in the latest bid to ease strains between Asia’s two biggest economies over a bitter territorial row, while a Chinese official newspaper said Beijing had ruled out a leaders’ summit.


Hawkish Japanese Prime Minister Shinzo Abe, who cemented his grip on power in an upper house election last week, has been signaling a desire for dialogue with China since the victory – although he has also rejected any conditions set by Beijing.


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Biden Says U.S. to Push China for South China Sea Code

Vice President Joe Biden said the U.S. is pushing China to negotiate quickly with Southeast Asian nations on a code of conduct for the South China Sea, an area that’s a “major, major, major highway of commerce.”


China agreed during an Association of Southeast Asian Nations-hosted forum in Brunei late last month to meet with the 10-member group in September to develop rules to avoid conflict in the waters. Nguyen Tan Dung, prime minister of Asean member Vietnam, warned in May that miscalculations over territorial disputes could disrupt commerce, with two-thirds of all maritime trade moving through the area.


Read Full Article HERE






Haslinda Amin and Sharon Chen, Bloomberg via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/GnxgYmJ8mww/

China’s Leaders Vow Steady Growth With Economic Reforms

China’s ruling Politburo pledged to stabilize growth while pressing on with economic reforms after exports fell by the most since the global financial crisis and manufacturing and investment cooled.


Authorities will maintain steady second-half expansion amid “extremely complicated domestic and international conditions,” the official Xinhua News Agency said today after a meeting led by President Xi Jinping. China will keep a prudent monetary policy and a proactive fiscal stance, Xinhua said.


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Monday, 29 July 2013

The wolf and the lamb

In Aesop’s fable about the wolf and the lamb, the wolf wants to eat the lamb yet does not want to convey an unreasonable or greedy self-image. Keeping this in the back of its head, the wolf invents a series of excuses ranging from “you muddle the water from which I am drinking,” to “you insulted me last year” and “you feed on my pasture.” Nonetheless, the lamb is able to refute every single one of these accusations. These refutations range from “I cannot be the cause for the water being muddy because it runs down from you to me” to “I have not yet tasted grass.” The wolf gobbles up the lamb anyway. The moral of this story? A tyrant will use any excuse to do evil.


To the larger Chinese public, the U.S.-China row over cyber security and whistleblower Edward Snowden seemingly reproduces the narratives contained in the fable.


On the American side, Google accused the Chinese government of accessing “the accounts of dozens of U.S.-, China- and Europe-based Gmail users” and with that left the Chinese market. Former Secretary of State Hillary Clinton warned against the risks of investing in “countries with aggressive censorship and surveillance policies.” American information security firm Mandiant reported that “140 companies have been hacked … and hacking groups from China were responsible for most of the attacks.” American Attorney General Eric Holder announced a plan to “fight the quickly growing threat from cyber spies.” National Security Advisor Thomas Donilon was concerned about “cyber intrusions emanating from China on an unprecedented scale” and warned that “the international community cannot afford to tolerate such activity from any country.” Finally then, President Obama pushed the hard ball game to new heights by charging the Chinese government with endorsing espionage activities, and consequently called for U.S. Congress to take action in “protecting people’s privacy and civil liberties.”


From the Chinese side then, some claimed that the U.S. wolf controlled most of the world’s Internet resources and was unreasonable in voicing such allegations against the Chinese lamb. Moreover, China said that China itself was in fact the most vulnerable target and biggest victim of hacking activities emanating from the U.S. Former Foreign Minister Yang Jiechi responded that “the Chinese government opposes hacking activities,” “anyone who tries to fabricate or piece together a sensational story to serve their political motives will not be able to blacken the name of others or whitewash oneself,” and “what cyber space needs is not war, but rules and cooperation.” Newly installed Prime Minster Li Keqiang simply dismissed American accusations as being a “presumption of guilt.” Chinese President Xi Jinping called for “conducting good-faith cooperation” as to “remove misgivings and make information security and cyber security a positive area of cooperation between China and the U.S.”


Yet for now, let us be reasonable – even in a post-Snowden era. The abovementioned American accusations are “fair” in the sense that they leave China room to refute. Surely, the Chinese refutations have not been heard by a wider global public since the American commercial media often dominates the global public opinion and redemption has to come within the West. Let us just say it is “fair” for the simple reason that China is able to give an explanation.


As the fable goes, for every excuse the wolf comes up with, the lamb is able to refute the claims and back up its arguments with evidence. However, the American trick – dubbed “21st century statecraft” – has gone far beyond what the wolf in Aesop’s fable could ever imagine. Let us here reiterate the rationale used by Mike Rogers, chairman of the House Permanent Select Committee on Intelligence. In his efforts to defame Chinese telecommunication companies Huawei/ZTE, he said: “China has the means, opportunities and motives to use telecommunication companies for malicious purposes.” This charge implies a future tense that China is unable to rebut. In comparison with Mr. Rogers, the wolf in Aesop’s fable is still being quite reasonable.


The dispute over cyber security in the post-Snowden era between the U.S. and China has evolved onto psychological and cosmological levels. The issue of cyber security was discussed by a working group installed under the fifth China-U.S. Strategic and Economic Dialogue. To many members of the global public, it appeared China wasted its chance at a full-fledged counterattack. Germany and Brazil, for example, would like to discuss the cyber security matter with the U.S., but their efforts did not materialize. The reason that China actually was able to do so, stemmed from the fact that the cyber security working group had been approved well before Snowden blew the lid off America’s mass Internet surveillance, at the initiative of John Kerry and with the original purpose to shame China. Instead of fighting back, China asked for nothing but an explanation over the Snowden case and even this request was brushed aside. The Chinese philosophy behind this grand retreat is one of “live and let live,” with the kind expectation that the U.S. would take the message and back down. Nevertheless, this gesture was completely misinterpreted.


The U.S. mistook China’s kindness for cowardice. The reason behind this misinterpretation occurred on a cosmological level. The U.S. adores the zero-sum game mentality, making China’s reservations a stimulus for more American attacks. According to Norwegian peace researcher Johan Galtung, this American cosmological view of objects and people exists in terms of competition and tries to decide “who is best, who is worst, who wins and who loses.” After a bizarre period of truce between both countries, running from early June when the first document was revealed through early July when the fifth China-U.S. Economic and Strategic Dialogue started, the U.S. went back to its old disapproving ways. During their so-called truce, China had wanted to give President Obama the benefit of the doubt and did not undertake any counterattack – despite its people learnt Chinese institutions had indeed been systematically hacked into. The U.S. entered stand-off mode, mainly to observe China’s reaction to the Snowden scandal. By the fifth China-U.S. E&SD, the U.S. thought it had figured China out and decided to resume its earlier accusations. Following American logic, when China is involved with espionage activity, it is called IPR theft. Whenever America does it, it is for the sake of national security.


If American accusations continue on the same level as before, China may still find it worthwhile to prove its innocence by providing counter evidence. However, politically-motivated American style accusations are bound to grow and self-escalate.


I would say that the abovementioned points to the typical American mentality that once it has gained any advantage over others (with the term “others” often referring to the former Soviet Union, large parts of Asia, the Middle East, Africa and the global South), it would use it against them; it mistakenly assumes China shares this same zero-sum mentality.


The American history is too short for it to realize that if you overstretch yourself, it will come back to you. In other words, the U.S. need to follow the Dao in international relations. China has learned to respect this adage thousands years ago. “Whoever relies on the Dao in governance does not try to force issues or defeat enemies by force of arms because for every force there is a counterforce; violence, even well intentioned, always rebounds upon oneself” (taken from the “Dao De Jing,” 551-479 BC, Para.30).


The American cyber, hot and cold warring mentality has to be dropped. Its propaganda of righteousness to showcase its moral superiority must be halted – unless it fixes its democracy deficit. My earlier analysis of the sudden rise of American accusations of China over cyber security issues were three-fold: to divert world attention over the American domination of Internet resources through the Internet Corporation for Assigned Names and Numbers, to create a new enemy to stimulate the imagination of the American public and bridge polarized party politics and to keep Chinese businesses out of the U.S. in the name of national security while using its leverage to expand American business in China.


A solution for the aforementioned issues may already be overdue as severe harm has been done. The privacy and commercial secrets of global citizens and companies have been intercepted and/or stolen. There is also the particular element of the ultimate breaking point igniting a global sentiment of anger. American senior officials try to justify their actions to American citizens by saying that these activities are directed against foreign citizens. This kind of phrasing had Germans, Brazilians, Indians and Chinese speechless. The damage is done. However, fixing these problems would indeed make a fundamental difference: preventing the country from falling into fascism. At this time, governments ranging from China to Russia, France to Germany are surprisingly silent – with a few Latin American exceptions. By remaining silent, comes the possibility that many of these governments have become willing partners of hegemony and business interests. If that is the case, we will have to re-define the wolves and the lambs.


By Xu Peixi






China.org.cn via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/AAMKSH6_4Wk/

Chinese WeChat goes abroad

Competition in the text messaging market is heating up. One program, carving out a bigger share of the market, is WeChat or Weixin in Chinese owned by Chinese internet giant Tencent. It’s currently the number one messaging App in China.


Tang Li, a student from University of California Berkeley, is leaving a voice message for his mother at home in Jiangsu Province, China. The communication is completely free through the popular messaging App WeChat. He says, “we chat among students on WeChat here to talk about homework assignments, about like club meetings and I also chat with my parents on WeChat.”


Fellow Chinese student Ashley Ji used to message with the popular WhatsApp, but switched to WeChat because of the playful emotions. She says, “WeChat? we can add our own emotions, not only what Tencent provides, also our own designs, more interesting. More personal.”


Marcos Sanchez from App Annie says “some of our Asian markets, Korea in particular, some of the companies that float to the top in terms of revenue are actually emoticon companies. We don’t see that in the US market per se.” App Annie measures global app metrics.


In Google’s Play Store Facebook Messenger is the runaway leader among communications app downloads. At Number 6 is U-S based “WhatsApp.” On this particular day, WeChat comes in at number 21. Its ranking is lower on the iPhone. But on Apple’s platform, WeChat has at one time or another, reached number one in 45 different countries, ranging from Madagascar to Mexico. In the US, WeChat use is on the rise.


Sanchez says, “I’ve used one feature called look around and it will actually tell you the users nearby. [edit] Probably a good 80-90 percent of the users were Chinese But it was funny to me I did actually notice a few folks that were American.”


Mark Niu says, “Tencent, which now has several offices in the US, hopes to grow their WeChat user base in America. The company did recently announce that it had 70 million registered WeChat users outside of China a jump of 30 million users in roughly three months.”






CCTV via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/UZFzzkJ1XZk/

Sino-Japanese summit ruled out

Troop relocation invites outside intervention in region, experts say


Manila’s plan to relocate its major air force and navy camps to a former US naval base near the South China Sea is designed to increase pressure on China and introduce more outside forces to the region to contain the country, experts said.


As soon as funding is available, the Philippine government plans to transfer air and naval forces, with their aircraft and warships, to Subic Bay, northwest of Manila, to gain faster access to the South China Sea, Philippine Defense Secretary Voltaire Gazmin said on Sunday.


“It’s for the protection of our West Philippine Sea,” said Gazmin, using Manila’s newly adopted name for part of the South China Sea.


Subic’s location will cut the time it takes for fighter aircraft to get to the South China Sea by more than three minutes, compared with flying from Clark Air Base, north of Manila, where some air force planes are currently based, according to a confidential defense department document obtained by The Associated Press.


The natural deep harbor can also accommodate two large warships that the Philippines recently acquired from its ally the United States, and will grant visiting US forces, ships and aircraft temporary access to more of its military camps to allow for more joint military exercises than are currently held, the media reported.


The first US coast guard cutter was relaunched as the Philippines’ largest warship in 2011. Philippine President Benigno Aquino III will lead ceremonies on Aug 6 to welcome the second ship at Subic, the Philippine navy has said.


Aggressive stance


Li Guoqiang, deputy director of the Center for Chinese Borderland History and Geography at the Chinese Academy of Social Sciences, said Manila is building up and concentrating its military forces near the South China Sea “with a clear target — China”.


The move continues Manila’s stance on the issue this year, which violates the spirit of the Conduct of Parties in the South China Sea and increases the risks of conflicts in the region, Li said.


“If all related parties resort to military means as Manila has for a resolution, the region will surely become a powder keg.”


China, the Philippines, Malaysia, Vietnam and Brunei have overlapping territorial claims over parts of the South China Sea. China’s call for a peaceful solution has recently gained a positive response from nearly all the involved parties, but not Manila.


The report AP cited said that the cost of repairs and improvements at Subic needed for an air force base there will be at least $119 million.


Despite the high cost, the plan is likely to take place with assistance from Washington, which has been shifting its strategic focus to the Asia-Pacific region, and Tokyo, whose ties with Beijing have been strained after Japan illegally “nationalized” China’s Diaoyu Islands in the East China Sea, Li said.


Complicating issue


Su Hao, a professor of Asia-Pacific studies at China Foreign Affairs University, said external forces that share the Philippines’ goal of containing China are complicating the regional South China Sea issue.


“What Manila sometimes did was to meet the needs of Washington and US allies, to seek more support from them,” he said.


Japanese Prime Minister Shinzo Abe presented Manila 10 patrol boats for the country’s weak naval forces last week, during his third trip this year to Southeast Asia.


The US-based Military Times website said that with the Pentagon’s strategic focus shifting to the Pacific, the Philippine bases are an ideal stopping point that’s roughly 1,600 km west of Guam, where four US ships are based.


“With this recognition of an existential threat from China, I think there’s much more interest in having the US presence,” the media quoted Carl Baker, a Hawaii-based defense expert at the Center for Strategic and International Studies, as saying.


But Su said the role Washington can play in the future is still unclear. “The US would like to see Manila posing threats to China or to back Manila behind the scenes, but it is reluctant to have open conflicts with China,” he said.


By Zhao Shengnan ( China Daily)






China Daily via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/lAKRSueDAmE/

Sino-Japanese summit ruled out

Tokyo ‘must show sincerity’ to improve strained relations


Beijing ruled out the possibility of an upcoming leaders’ summit with Tokyo on Monday, urging the Japanese government to take concrete measures to improve strained ties rather than brandishing “empty slogans”.


The message from a government official, who declines to be named, comes after Isao Iijima, a close adviser to Japanese Prime Minister Shinzo Abe, said on Sunday that Abe could hold a summit with President Xi Jinping in the “not-too-distant future”.


Iijima said his assumption is based on his four-day visit to Beijing in mid-July, during which he met “several prominent figures”close to Xi, the Yomiuri Shimbun newspaper reported.


But the official said that Iijima did not meet any Chinese government officials.


“What Iijima told reporters on Sunday is not true and is fabricated, based on the needs of Japan’s domestic politics,”he said.


His visit to China was mainly to discuss his tour of the Democratic People’s Republic of Korea, and there was no consultation between the two sides on a leaders’ meeting, according to the official.


The Ministry of Foreign Affairs said in a brief statement on Monday that Iijima has not conducted official activities during his visit to China, and Chinese officials were not in contact with him.


Iijima’s remarks were widely quoted by the international media, with the world watching to see how Asia’s two biggest economies are to mend ties that have been hit by the dispute over the Diaoyu Islands.


However, Japanese Chief Cabinet Secretary Yoshihide Suga said at a news conference on Monday, “No immediate schedule for a leadership summit has been set.”


Iijima is not the only politician in Japan playing up the possibility of a leaders’ summit.


During his just-concluded visit to Southeast Asia, Abe also repeatedly called for dialogue with Beijing without any conditions attached.


Beijing responded to Abe’s move by saying its door is always open for talks, but the problem lies with Japan’s unwillingness to face up to reality and start serious consultations with China.


Japan should “stop using empty slogans about so-called dialogue to gloss over disagreements”, Foreign Ministry spokesman Hong Lei told China Daily on Monday.


Analysts said that as Abe faces huge pressure to break the deadlock with China, what he and his administration want now is to achieve progress in China ties with the minimum price paid.


Given Japan’s hard-line stance on the territorial dispute, it is unlikely that the leaders of the two countries will agree on a meeting that cannot make progress on existing problems, experts said.


Liang Yunxiang, a professor of Japanese studies at Peking University, said Abe hopes to improve relations with China on a macro level, because worsening ties cause great concern in Japanese society, and extending an olive branch to China gives him the diplomatic initiative.


But Liang said fragile Sino-Japanese relations will not improve if Japan continues to send “dialogue signals”without showing sincerity.


“Tokyo needs to realize that the situation hinges on when it pulls back from its previous false claims,”he said.


Jin Canrong, deputy head of the School of International Studies at China’s Renmin University, said the message from Iijima is mainly aimed at helping Abe shake off the pressure to improve ties with China from Japan’s economic sector and the United States.


During his troubled 2006-07 term in office, Abe tried to mend ties with China that had become frayed during the five-year stint of his predecessor, Junichiro Koizumi.


Li Wei, director of the Institute of Japanese Studies at the Chinese Academy of Social Sciences, said: “Japan has all the time resorted to empty talk about improving China-Japan relations, but it never engages in substantive actions.


“It is doing so (sending out information about bilateral meetings) to make the Japanese people believe that the Abe government is making efforts to mend the Sino-Japanese relationship.”


The earliest date for a meeting between Xi and Abe on the international stage might be the G20 Leaders’ Summit in St Petersburg, Russia, on Sept 5-6.But the Chinese official said that based on the status quo, it is unlikely that there will be a China-Japan leaders’ summit during this event, and not even at the Asia-Pacific Economic Cooperation forum meeting in Indonesia in October.


Japanese Vice-Foreign Minister Akitaka Saiki arrived in Beijing on Monday for a two-day visit. Japanese media once again played up Saiki’s trip. The Kyodo News reported that Saiki will discuss the leaders’ summit with Chinese officials during his visit.


The Chinese official said, “Saiki is the newly appointed vice-foreign minister and he is just undertaking a routine visit after taking the job.”


Foreign Minister Wang Yi and Vice-Foreign Minister Liu Zhenmin will hold talks with Saiki and are expected to raise the Diaoyu Islands issue with him.


By WU JIAO and PU ZHENDONG ( China Daily)


Cai Hong in Tokyo and Zhang Yunbi in Beijing contributed to this story.






China Daily via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/4aU2lV_t7_U/

In Fixing the Economy, China Aims for Low-Hanging Fruit

For all the strong rhetoric, China’s latest policy actions suggest a shift in focus on the economy to mix relatively pain-free overhauls that burnish Beijing’s credentials for change with measures to prop up sagging growth.


While Prime Minister Li Keqiang of China provides a drip-feed of easy changes, he will avoid more radical moves for fear of tipping the Chinese economy over the edge.


Analysts from top government research institutions say there is no reason to doubt the government’s commitment to shifting China’s economy away from an investment- and credit-driven growth model to one that relies more on consumption and innovation.


Read Full Article HERE






Kevin Yao, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/QbEV1u65duA/

Japan’s top diplomat heads for China, seeking better ties

Japanese Vice Foreign Minister Akitaka Saiki will visit China on Monday and Tuesday for talks with senior officials, the latest in a series of efforts by Prime Minister Shinzo Abe to improve relations soured by a bitter territorial row.


The hawkish Abe, who cemented his grip on power in an upper house election last week, has since then been signaling a desire for dialogue – even though Japan has raised its assessment of the risk of China’s military buildup and maritime assertiveness.


Read Full Article HERE






Linda Sieg, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/tMVMgo8J_DU/

Biden Says U.S. to Push China for South China Sea Code

Vice President Joe Biden said the U.S. is pushing China to negotiate quickly with Southeast Asian nations on a code of conduct for the South China Sea, an area that’s a “major, major, major highway of commerce.”


China agreed during an Association of Southeast Asian Nations-hosted forum in Brunei late last month to meet with the 10-member group in September to develop rules to avoid conflict in the waters. Nguyen Tan Dung, prime minister of Asean member Vietnam, warned in May that miscalculations over territorial disputes could disrupt commerce, with two-thirds of all maritime trade moving through the area.


Read Full Article HERE






Haslinda Amin and Sharon Chen, Bloomberg News via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/fDLoM40R138/

China military puts best foot forward, plays down tensions

With handshakes and smiles, China’s military put its best foot forward on Monday as it opened a secretive base to a rare visit by journalists, in an effort to allay Asia’s growing fears about the country’s strategic intentions.


China has advertised its military ambitions with displays of new hardware, from its first test flight of a stealth fighter jet in early 2011 to its launch of a fledgling aircraft carrier – both technologies that need further years of development.


The moves come as China jangles nerves in Asia and the United States with increasingly bold moves to assert territorial claims in the East and South China Seas.


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Ben Blanchard, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/MeVzwDB54EQ/

China Plans Audit of Debt Government Has Incurred

The National Audit Office of China said on Sunday that it would conduct a broad audit of debts incurred by government agencies, in the latest sign of Beijing’s concern that heavy borrowing by local governments and their affiliates might pose a broader threat to the economy.


The audit office issued a single-sentence statement saying that it had been instructed by the State Council, or cabinet, to carry out the audit.


Western economists have estimated total local government debt in China at $2 trillion to $3 trillion and rising.


Read Full Article HERE






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U.S. says Israeli-Palestinians peace talks to resume on Monday

The Israelis and the Palestinians are set to resume their peace talks in Washington D.C. on Monday, the U.S. State Department said on Sunday.


Secretary of State John Kerry extended his invitation to both sides in his phone talks with Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas, department spokeswoman Jen Psaki said.


The top American envoy “personally extended an invitation to send senior negotiating teams to Washington to formally resume direct final status negotiations,” Psaki said in a statement, adding “Initial meetings are planned for the evening of Monday July 29 and Tuesday July 30.”


The initial meetings, which come as a direct result of Kerry’s six trips to the Middle East region since he took office on Feb. 1, will be attended by Israel’s chief negotiator and Justice Minister Tzipi Livni and Yitzhak Molcho, Netanyahu’s personal envoy.


The Palestinians will be represented by chief negotiator Saeb Erekat and Mohammad Shtayyeh, a senior member of Abbas’ Fatah party, Psaki said.


“As Secretary Kerry announced on July 19 in Amman, Jordan, the Israelis and Palestinians had reached agreement on the basis for resuming direct final status negotiations,” she said. “The meetings in Washington will mark the beginning of these talks.”


“They will serve as an opportunity to develop a procedural workplan for how the parties can proceed with the negotiations in the coming months,” she added.


The Israeli government on Sunday approved the release of 104 veteran Palestinian prisoners during the upcoming negotiations, which will last at least nine months, meeting a demand by the Palestinians for the resumption of talks.


The Palestinians have also conditioned resumed talks on Washington’s guarantee of future negotiations based on the borders prior to the 1967 war and Israel’s halt of settlement activities, while Israel has rejected talks with preconditions.


Israel captured the West Bank, Gaza Strip and East Jerusalem in the war, territories the Palestinians want as their future state.


Peace talks between the two parties have gone off and on during the past two decades, and Netanyahu and Abbas last talked to each other for about 16 hours in a period of three weeks in September 2010, under the mediation of the Obama administration, before leaving the negotiation table over Israel’s refusal to extend a ban on settlement building in the West Bank.


Israeli-Palestinian final status negotiations cover Jerusalem, the Jewish settlements, borders and refugees, the so-called core issues between the two sides.






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Audit targets local government debt

Move ‘aims to reveal mounting risks and pave way for reform of finance system’


The National Audit Office declared on Sunday that it will start a nationwide assessment of local government liabilities, which will address concerns about rising debt from overambitious development projects.


The announcement was made following Chinese media reports that the State Council has made the audit campaign one of its “urgent” tasks, and that all government auditors are being given crash training so they can start the audit as early as next week.


Their work is expected to update China’s local government debt figures, which stood at 10.7 trillion yuan ($1.75 trillion) by the end of 2010.


By comparison, China’s GDP was close to 52 trillion yuan in 2012.


But an estimate by the International Monetary Fund last month put China’s total government liability, including government-led infrastructure development projects, in excess of 45 percent of the country’s GDP.


Experts said the new audit aims to reveal mounting risks from rising local government debt, which has sparked fears of a hard landing for the economy amid a continuous slowdown.


In the meantime, the effort will pave the way for a possible overhaul of the public finance system to build a healthier and more responsible financial administration, they said.


In the short term, the move will provide decision-makers with clear options, said Zhao Quanhou, head of financial research at the Fiscal Science Research Center affiliated with the Ministry of Finance.


If the results turn out to be good, he said, new policies could loosen local government financing, as the economy still yearns for capital to restore growth.


“But given local government debt conditions in recent years, the results are unlikely to be promising,” he said.


In a June report, a survey of 36 provinces and cities showed debt levels expanded 13 percent over the past two years.


Du Xiangqian, a government auditing researcher, said the 2011 audit work was completed and made public within five months, and this year’s project may require about the same time.


But this year’s task will not be easy, as the scope of the audit might be broadened to include village governments.


Du said local conditions were really “complicated”.


“Some village heads borrowed in their own names for public spending because they’re more reliable than the village council,” he said, adding that local government financing channels are quite diverse.


Jiang Chao, chief analyst of the debt market with Haitong Securities, estimated that the amount of local government debt was around 15 trillion yuan — 9.5 trillion yuan in loans, 3 trillion yuan in trust funds, 2 trillion yuan in city investment bonds and 0.65 trillion yuan in local government bonds.


He warned that infrastructure investment might stall if financing via trust funds is halted, as the investment is mainly supported by off-balance sheet borrowings.


Zhang Houqi, vice-president of China Asset Management, said on his micro blog that the audit will unveil many irregularities in local government account books.


“It is definitely bad news for the stock market and may even turn into a significant event for the economy this year,” Zhang wrote.


Zhao from the Fiscal Science Research Center said that although local governments will not go bankrupt, as Detroit did in the US, local officials will be removed for fiscal failures. But Zhao said the NAO’s move was one of a series of measures to digest China’s debt risks.


On July 18, the Finance Ministry issued a notice asking each province to submit an action plan to tighten budget execution and control cash management by the end of the month, reflecting the government’s commitment to quickly improve fiscal practices at the local level.


“The central government has been proceeding in measured steps as it seeks to balance its twin objectives of granting local governments more autonomy with respect to their financing needs and of maintaining strong controls to ensure that debt levels are affordable,” said Moody’s Investors Service in a report.


Ultimately, a local government bond market would help improve monitoring and regulation of local governments’ indebtedness, improve accountability for their investments and borrowing decisions, and discourage them from engaging in irregular financing activities, Moody’s said.


By WEI TIAN ( China Daily)






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$81 b for shantytown renovation in Beijing

Beijing is to invest 500 billion yuan ($81.49 billion) over five years for the shantytown renovation inside the fourth ring road, according to the Beijing Municipal Committee of Housing and Urban-Rural Development.


The projects will involve some 700,000 residents of 230,000 households in 527 communities, the People’s Daily reported on Monday.


The first 83 projects will be finished this year.


The project will involve compensation and relocation of residents, the report said.


However, renovation work will only be launched with the consent of 90 percent of residents involved in each project.






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Abe’s Right-wing Politics a Path to Isolation

Japan’s House of Councilors election last week, the first national election since Abe’s return to office, ended with a victory for the ruling LDP- New Komeito coalition. It put an end to the unbalanced Diet caused by Abe’s 2007 loss of upper house majority to the opposition and ushered in a period of LDP supremacy reminiscent of Japan’s political structure in 1955. Abe’s right-wing politics have already aroused heightened vigilance around the world.


刘军红 Abes Right wing Politics a Path to Isolation

Liu Junhong



When Abe returned to Japan’s top political job, he borrowed a page from Keizo Obuchi’s “reverse promotion”, which featured a finance-led economic recovery. He ordered an overhaul of Japan’s central bank, excessively eased money supply, which led the Yen to devalue and the stocks market to boom, thus winning impressive support at political polls. Abe’s return took place against the backdrop of a divided Democratic Party, a rising third pole and a weakening LDP, all reflections of a shifting landscape of Japan’s party politics and drastic changes in the country’s domestic and international environment.


When Abe stepped down in September 2007, taking responsibility for LDP’s poor showing at the House of Councilors election, the United States was barely one month into its subprime crisis. This means that in the following five years, Japan was to face a political environment of ongoing and continuous crises in the world. As a resource-poor country heavily dependent on trade and investment, Japan had to get to grips with a crisis-laden external environment characterized by shrinking global market, chaotic energy supply and confusing capital flows. At home, Japan was beset by a net downturn in its working population which had begun in 2006, zero population growth, sluggish innovation, rising social security spending, mounting government debt that hampered the state’s capacity to act. At the same time, the massive nuclear mishap caused by the 2011 huge earthquake led to a breakdown in the industrial supply chain and undermined Japan’s capacity as a major production material supplier. Japan’s share of the overseas market was eroded by competitors and Japan’s growth drive and product competitiveness were on the decrease.


Shifts in Japan’s domestic and international environment were reflected in the country’s party politics, particularly the change in its political party structure. A typical example was the rise of the Democratic Party, which ended the long-standing domination of the LDP (or LDP-led coalition) in government. However, instead of working to transform itself from a party seeking power to one actually exercising it, the Democratic Party was bogged down in an intra-party power struggle that led to its ultimate split. Externally, it misjudged the post-crisis global growth structure and kept the LDP focus on the “Asian Circle”. In rebuilding the international order, Japan was simultaneously at loggerheads with Asia, the US and Europe, thus worsening its internal and external environment, hurting its growth potential and causing a major shift in national politics. At the unified local elections shortly after the 3/11 earthquake, both the Democratic Party and LDP suffered dismal losses, but local political parties in Osaka, Tokyo and Nagoya made significant gains, forming themselves into the third pole of Japanese politics. Finally, the Democratic Party split and the two-party structure became history.


Japan’s shifting domestic and international landscape created a condition favorable for Abe’s return to power. But, instead of having a clear understanding of the real changes in a post-Lehman world, Abe chose to stay where he had been in 2006 insofar as his mindset was concerned. Worse still, he saw the shift in Japan’s party structure as the result of his successful political horse-trading, and the changes in world growth structure as a sign of shifting power centers of international systems. During his visit to the US, Abe, in a display of a rather un-Japanese candor, shouted publicly that “Japan was Back”. In domestic politics, Abe reintroduced various conferences at his official residence, advocated more centralized power for the prime minister and fanned up right-wing hyperbole aimed at revising Japan’s peace constitution, rearming Japan for external expansion, dismantling the post-war framework and promoting a third rise of Japan. In foreign policy, Japan believed that both the US and Europe had been weakened by the crisis and the emerging countries had lost growth momentum as well, which gave Japan the best opportunity for revival. While balancing the US, Europe and Russia diplomatically, Japan sent envoys to Southeast Asia, Middle East, India and Africa to advance its goals for market, resources and votes needed to make Japan a permanent member of the UN Security Council. At the same time, Japan set out to seek and dominate the geopolitical circle, currency circle and security circle in an effort to secure a position in determining the international order and the rules in the post-crisis world. For example, in Asia, Japan used the TPP to build a 10+6 geopolitical circle (RCEP) with the ASEAN and used it as a tool to undercut Chinese and American influence in the region through a proposed regional institution based on a Japan-ASEAN-India (EPA) axis. In currency policy, Japan took advantage of the Japan Money to conduct policy negotiations with the US and Europe while keeping large numbers of Japanese financial companies in the Asian market. Using such opportunities as fund replenishing of the Chiang Mai initiative and signing currency cooperation agreement with ASEAN, Japan built a currency circle it could use to transfer its debt crisis to others and shore up Yen’s international position. In security policy, Japan saw the crisis-weakened US and Europe as Japan’s opportunity to dominate the region’s security arrangement. By recklessly stirring up territorial disputes with neighboring countries and intensifying disagreement on history issues, Japan used the opportunity to seek an equal status in a “rebalancing structure” with the US.


It has become quite obvious that Abe’s political and diplomatic line of a right-wing Japan has turned a blind eye to the post-crisis reality characterized by fair competition and a lack of power gaming. By acting in an opportunistic way for recovering the lost ground or achieving Japan’s revival, Japan has unavoidably put itself on a collision course with its neighbors and into an isolated position in the world. The election victory has undoubtedly inflated Abe’s arrogance and his ambition for further expansion. That, however, can only lead Japan into a dead alley where it will find no friends in Asia and few supporters in the world.


Liu Junhong is a Research fellow at the Chinese Institute of Contemporary International Relations.






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Friday, 26 July 2013

Chinese developer buys LA site for $1b project

Shanghai’s Greenland Holdings Group acquired a site in downtown Los Angeles from a California teachers’ pension fund on Friday to build a $1 billion project that will include a hotel, office units and residences. The property purchase marks the latest foray by Chinese developers into overseas markets.


The state-owned real estate developer – which is building China’s second-tallest tower – acquired the 25,600 square-meter site from the California State Teachers’ Retirement System, the second-biggest US pension fund. “We have a signed agreement for purchase of the property,” said Michael Sicilia, media-relations manager for CalSTRS. He would not disclose the purchase price. The company expects to begin construction in six to nine months, he said.


Greenland could not be reached for comment.


Chinese developers are moving into the US and other overseas markets as China’s leadership maintains residential-property curbs aimed at holding down skyrocketing prices. Greenland said earlier this month it planned to spend 10 billion yuan ($1.63 billion) on overseas property projects this year.


“We are extending the China market abroad, and we prioritize our investment to countries where Chinese immigrants, students and tourists like the most,” Greenland Chairman Zhang Yuliang was quoted as saying in a statement Friday.


In February, China Vanke Co, the largest Chinese developer traded on the nation’s stock exchanges, announced a $620 million luxury high-rise condominium project in San Francisco with its New York-based partner, Tishman Speyer Properties LP. Xinyuan Real Estate entered the US market in October with a $54.2 million residential-land purchase in Brooklyn, New York.


Three years ago, Greenland said it would spend 30 billion yuan ($4.8 billion) to build a 636 meter (125-story) tower in Wuhan, the capital of Hubei province. The Wuhan Greenland Center, which would be the country’s second-tallest after a proposed 660-meter structure in Shenzhen, is expected to be completed in 2016.


The developer said on Friday that its $480 million redevelopment project in Sydney that it announced in March has been approved by Chinese regulators and sales will start this year, according to Bloomberg News. Shanghai Greenland and Canada’s Brookfield Asset Management bought two buildings for the redevelopment, which Shanghai Greenland said at the time was the biggest deal of its kind by a Chinese firm in Australia.


By MICHAEL BARRIS ( China Daily)






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