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Sunday, 31 August 2014

China, Russia to start construction of joint gas pipeline

China and Russia are to start construction of a joint natural gas pipeline in Russia’s eastern Siberia this weekend, in implementation of a natural gas supply contract signed between the two countries.


Chinese Vice Premier Zhang Gaoli flew in from Moscow to Yakutsk, the capital city of Russia’s Sakha (Yakutia) Republic, Sunday evening to attend a start-of-construction ceremony for the Russian part of the East Route of the China-Russia natural gas pipeline.


Zhang’s attendance at the start-of-construction ceremony reflects the importance that the Chinese government attaches to the comprehensive strategic partnership with Russia and its will to expand bilateral cooperation to wider fields and higher levels.


Pipe-welding will begin on Monday in the Russian part of the East Route of the China-Russia natural gas pipeline, which the Russian side named “Siberia Power” pipeline.


According to a contract signed under the witness of Chinese President Xi Jinping and Russian President Vladimir Putin during their Shanghai meeting in May, the pipeline will transmit 38 billion cubic meters of natural gas every year to China over a period of 30 years starting from 2018.


The Russian stakeholder of the pipeline Gazprom estimates that total investment in the project could exceed $5 billion.


Gazprom Chairman Alexey Miller said Saturday that the gas supply contract was just a good beginning of bilateral cooperation in the field of natural gas.


He said the Russian side is working on implementing the consensus reached by President Putin and President Xi and will undoubtedly build the planned West Route of the natural gas pipeline and export gas to China through it.


The start of construction of the East Route of the China-Russia natural gas pipeline signifies a major step forward in implementing the consensus reached by Xi and Putin.


The Russian part of the pipeline will link the Kovyktin and Chayandin gas fields in Siberia with the eastern port city of Vladivostok, covering a total distance of nearly 4,000 km.


Vice Premier Zhang said the breakthrough on the natural gas project and other large-scale projects helped drive the China-Russia comprehensive strategic partnership into a new era of development.


Zhang visited Moscow to co-chair the 11th meeting of the China-Russia Energy Cooperation Committee with Russian Deputy Prime Minister Arkady Dvorkovich in Moscow on Saturday.






Xinhua News via CHINA US Focus http://ift.tt/1u5gyFa

Friday, 29 August 2014

China says will keep responding to US surveillance flights following recent close encounter

China said Thursday it will continue responding to U.S. military surveillance flights off its coast, rejecting American accusations that one of Beijing’s fighter jets acted recklessly in intercepting a U.S. Navy plane last week.


Defense Ministry spokesman Yang Yujun said China’s military would closely monitor U.S. flights and reiterated calls for the U.S. to scale back or end such missions altogether.


“According to different situations we will adopt different measures to make sure we safeguard our air and sea security of the country,” Yang said at a monthly news briefing.


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China, Vietnam Try to Repair Ties After South China Sea Dispute

A Vietnamese envoy’s visit to China this week helped steady ties between the countries after a two-month standoff in the South China Sea, but former Vietnamese officials and security analysts said relief may be temporary amid Beijing’s escalating push to control the disputed waters.


Chinese President Xi Jinping attempted to play down tensions between the nations during a meeting with Vietnamese special envoy Le Hong Anh on Wednesday.


“A neighboring nation cannot be moved, and it is in the common interests of both countries to be friendly to each other,” said Mr. Xi, according to an account by China’s Foreign Ministry.


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Brian Spegele and Vu Trong Khanh, Wall Street Journal via CHINA US Focus http://ift.tt/1n2L1ib

Media Tycoon Critical of China Is Visited by Hong Kong Antigraft Agency

Officers from the anticorruption agency in Hong Kong searched the home of the media tycoon Jimmy Lai on Thursday morning, a month after leaked documents suggested that he had made substantial donations to local pro-democracy parties and politicians.


Mr. Lai is an outspoken supporter of the democracy movement in Hong Kong, whose newspaper, Apple Daily, is frequently critical of the Chinese government.


Besides Mr. Lai’s house, the agency also searched the apartment of his top aide, Mark Simon. The office and the apartment of Lee Cheuk-yan, a legislator who received donations from Mr. Lai, were also searched Thursday morning.


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Alan Wong, New York Times via CHINA US Focus http://ift.tt/1C9nN3q

China says ‘no change’ in policy on improving ties with Japan

China on Thursday rejected remarks by former Japanese prime minister Yasuo Fukuda that Beijing had expressed willingness to improve ties between Asia’s two biggest economies, and said there was “no change” in its policy on Tokyo.


Relations between China and Japan have been frayed by rows over the legacy of Japan’s wartime militarism, a territorial feud over tiny islands in the East China Sea, and mutual distrust over defense policies.


China’s foreign ministry was asked to respond to a speech on Wednesday in which Fukuda described his recent meetings with Chinese leaders, and added that both sides had shown the same sense of crisis over Sino-Japanese ties.


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China Considers Opening Up Stock Market Further

Beijing is considering expanding a trial program that allows yuan raised offshore to be funneled back into China’s capital markets, part of efforts to internationalize the currency and open up its financial system.


Institutional fund managers in Switzerland and Luxembourg may be allowed to join the so-called Renminbi Qualified Foreign Institutional Investor program, according to people who were at a briefing by regulators. The program allows approved foreign investors to tap directly into China’s stock and bond markets that remain off limits to most other money managers because of tight capital controls.


Both countries have growing ties with China and are among countries hoping to become offshore trading hubs for trading the yuan.


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Thursday, 28 August 2014

China to build high-end security forum: DM spokesman

As organizers prepare for the Xiangshan Forum in November, the Defense ministry says they hope to transform the event into a high-end security and defense forum.


The fifth Xiangshan Forum, organized by the China Association for Military Science, is scheduled to be held in Beijing from November 20 to 22, spokesman Yang Yujun told a monthly press briefing.


The biennial event, which focuses on security in the Asia-Pacific region, will be held annually from this year on, he said.


To adapt to a changing security environment in the Asia-Pacific region and the need for security cooperation, the fifth forum will change from a pure academic forum to a high-end security and defense forum, he said.


This year, invitations will be extended to defense or military officials from Asia-Pacific nations, representatives from international organizations, former military or political leaders as well as renowned defense scholars, he said.


The forum will also invite heads of state or heads of government to give keynote speeches. Chinese Defense Minister Chang Wanquan and officials from Chinese Foreign Ministry will also deliver speeches.


Running under the theme of “Cooperation and Win-Win, build an Asian Community of Common Destiny”, the three-day event will discuss regional security, maritime security and anti-terrorism cooperation.


“China welcomes defense and military officials as well as scholars from Asia-Pacific nations to attend,” Yang said.


The forum was first held in 2006.






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Beijing tells US to stop spy flights

China urged the United States on Thursday to stop its close surveillance by patrol aircraft near Chinese territory if it seriously wants to repair damaged bilateral ties.


Speaking at a news conference, Yang Yujun, spokesman for the Ministry of National Defense, denied a claim by the US State Department that Washington had told Beijing of the reconnaissance flights and that the missions are “open and transparent”.


“There has been no notification in advance” every time the US sent aircraft to conduct close-in reconnaissance near Chinese territory, he said.


Frequent US reconnaissance of China made headlines again last week. A Chinese navy J-11 fighter jet took off to conduct routine identification and verification work on Aug 19 as US Navy P-3 and P-8 planes were conducting reconnaissance missions about 220 km from Hainan Island.


Chinese military observers said the US conducted about 500 such China reconnaissance operations every year.


“If an action is wrong, then whether it is transparent or not, or whether other nations were notified, does not make any difference to the error in the nature of such an action,” Yang said.


Such actions “will lead to maritime or airspace accidents” and are not conducive to building mutual trust between the two militaries.


“If the United States does not want to affect bilateral ties, it must reduce and ultimately stop such reconnaissance,” Yang said.


Zhang Junshe, deputy director of China’s Naval Military Studies Research Institute, said the US spy flights pose a huge threat to security because the US planes often fly a route close to China’s territorial waters, about 12 nautical miles from the coastline.


“This has seriously threatened China’s national security and has led to accidents, Zhang said.


The incident on Aug 19 served as a reminder of the collision between a Chinese PLA navy J-8 fighter jet and a US Navy EP-3 spy plane off Hainan Island on April 1, 2001. Chinese pilot Wang Wei was killed and the EP-3 plane forced to land on Hainan Island.


Jen Psaki, spokeswoman for the US State Department, said on Monday, “Both State Department and Department of Defense officials expressed strong concern to the Chinese about the unsafe and unprofessional interception last week.”


Yang denied the allegation and said Chinese pilots operate professionally and take safety into consideration.


“As a developing country, China values its aircraft and pilots’ lives, when compared with some countries that have their military pilots fly close to others’ doorsteps on a daily basis,” Yang added.


By ZHANG YUNBI (China Daily)






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China says wants to mend ties with Vietnam: Xinhua

A top official of China’s Communist Party told a special envoy from Vietnam on Tuesday the two neighbors should try to rebuild their battered ties after a flare-up over sovereignty in the South China Sea, the official Xinhua news agency said.


The visit to Beijing by Le Hongh Anh, a member of the Vietnamese Communist Party’s powerful politburo, is the first sign of a concerted effort to heal the rift between the two countries, which share annual trade worth $50 billion.


“We expect Vietnam to continue to work with us to bring bilateral relations back to the track of healthy and stable development,” Xinhua quoted Liu Yunshan, a member of China’s elite Politburo Standing Committee, as telling the visitor.


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China to Allow Foreign Ownership of Hospitals

China will let foreign companies own and operate hospitals in some parts of the country as part of an effort to overhaul its health-care system.


Foreign investors in some parts of the country will be allowed to set up new hospitals or acquire existing ones under a new pilot program, according to a statement issued jointly by the National Health and Family Planning Commission and the Ministry of Commerce. The notice was dated July 25 but posted on Wednesday.


The pilot program will apply to the cities of Beijing, Tianjin and Shanghai as well as provinces of Jiangsu, Fujian, Guangdong and Hainan, the statement said. Only investors from Macau, Taiwan and Hong Kong can set up hospitals devoted to traditional Chinese medicine, however.


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Fanfan Wang, Wall Street Journal via CHINA US Focus http://ift.tt/1mWJKJi

China rejects Taiwan’s complaint about breach of airspace

China has rejected Taiwan’s claim that two Chinese military aircraft had breached Taiwan’s airspace four times, saying it was a “routine flight”.


Taiwan scrambled its jets to intercept two Chinese military aircraft, identified as Yun-8 transport aircraft, on Monday. The Chinese planes left without incident, Xiong Ho-ji, major general of Taiwan’s Air Force Combatant Command, told reporters on Tuesday.


“Our military aircraft carried out a routine flight on the 25th in the relevant airspace, there was no occurrence of any abnormality,” China’s Defense Ministry said in a faxed statement to Reuters late on Tuesday.


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China’s State-Owned Businesses Will Cut Salaries

Chinese President Xi Jinping’s anti-corruption campaign hasn’t been kind to the employees of China’s many state enterprises. The senior executives of top public firms including PetroChina (PTR) and China Resources Group have been publicly investigated for corruption, in a warning that graft must be curtailed. Xi has banned lavish company banquets and even ordered staff to stop giving the traditional gift of moon cakes at next month’s annual Mid-Autumn Festival.


Now the latest edition of Caijing magazine reports that employees at government-owned firms could see their salaries slashed dramatically. The financial journal article says that a ceiling of 600,000 yuan ($100,000) will be set on top salaries, citing people knowledgeable about a draft plan by China’s labor and finance ministries. The report notes that in 2011 average salaries for top executives at state firms were 720,000 yuan, while those working at China’s big four state-owned banks earned more than 1 million yuan.


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Dexter Roberts, Bloomberg Businessweek via CHINA US Focus http://ift.tt/XV9BMc

After Overwhelming U.S. Visa Program, Where Will China’s Emigrants Go Next?

Wealthy Chinese hoping to move abroad have overwhelmed the immigration departments of the U.S. and Canada—their favorite destinations—this year. But will China’s rich who want a visa head elsewhere or will they hold out for the American dream?


The answer, immigration experts say, is both. Australia, Europe and the Caribbean are emerging as destinations for China’s rich, while Chinese investors still keen on moving to the U.S. are told to expect wait times as long as five years for their visas.


A U.S. State Department official told the Journal that the EB-5 program—which grants visas to those who invest $500,000 in a range of development projects—has hit its quota of 10,000 visas for the fiscal year and won’t receive new applicants until Oct. 1. Chinese applicants made up about 85% of the 10,000 visas granted under the program. It’s the first time in the program’s 24-year history that the quota has been reached.


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Jason Chow, Wall Street Journal via CHINA US Focus http://ift.tt/1mWJIB7

Shanghai FTZ to build 8 int’l trading platforms

The China (Shanghai) Pilot Free Trade Zone(FTZ) will set up eight international trading platforms by 2015, according to a work plan issued by the Shanghai municipal government on Wednesday.


The platforms will respectively focus on oil, gas, iron ore, cotton, liquid chemicals, silver, bulk commodities and nonferrous metals transactions, said the plan.


An earlier report by the Shanghai Securities News, quoting an FTZ official, said an international gold exchange center will start to trade gold in the FTZ on Sept. 26.


In addition, the local government has submitted a plan to pilot a “parallel importing” program for automobiles in the FTZ to the Ministry of Commerce for approval. The program allows importers other than chief dealers to import foreign brand automobiles from their countries of origin.


If the program is successful, the prices of imported cars are expected to drop by at least 15 percent.






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Microsoft CEO to visit China amid antitrust probe

Microsoft Corp Chief Executive Officer Satya Nadella is set to visit China in late September, a source familiar with the matter said on Thursday, as the Chinese government conducts an antitrust investigation into the world’s largest software company.


It is not clear if Nadella, who took over as Microsoft CEO in February, will meet with any Chinese government representatives as part of his visit, or try to resolve issues with the State Administration for Industry and Commerce (SAIC), one of China’s antitrust regulators.


A Microsoft spokesman would not confirm the visit, saying the company does not comment on executive travel plans. SAIC officials could not immediately be reached for comment.


Microsoft is one of many foreign firms to have come under scrutiny as China seeks to enforce a 2008 anti-monopoly law.


Foreign CEOs often pay calls on the world’s second-largest economy to strengthen business and political ties. Nadella would be at least the second major tech executive to have visited the country as antitrust tensions simmer.


Qualcomm Inc President Derek Aberle, looking to end to the wireless chip giant’s own antitrust scrutiny, met with China’s National Development and Reform Commission (NDRC) last week.


Nadella’s predecessor, Steve Ballmer, did occasionally go to China in his 14 years as CEO, but visits were rare to a country where Windows and Office are widely pirated. Ballmer said in 2011 that Microsoft got more revenue in the Netherlands than China.


Microsoft Deputy General Counsel Mary Snapp already met with SAIC officials in Beijing earlier this month to discuss the antitrust matter.


China’s SAIC initiated an antitrust probe into Microsoft earlier this month, saying that the company may have broken anti-monopoly laws regarding compatibility, bundling and document authentication for its Windows operating system and Office suite of applications.


On Tuesday, SAIC head Zhang Mao said at a briefing in Beijing his organization – one of three antitrust regulators in China – was focusing on Microsoft’s web browser and media player, and suspected the company had not been fully transparent with information about its Windows and Office sales.

The investigation has been met with puzzlement outside China, given that Microsoft settled US and European antitrust cases around Windows more than a decade ago, and its desktop software monopoly is now largely irrelevant with the explosion of tablets and phones running Apple Inc or Google Inc software.

The probe comes amid a spate of antitrust probes against foreign firms in China, including Qualcomm and German car maker Daimler AG’s luxury auto unit Mercedes-Benz, renewing fears of Chinese protectionism.






China Daily via CHINA US Focus http://ift.tt/1voVKLH

Wednesday, 27 August 2014

Ties with Vietnam to be put back on track

Friendship serves the common interests of both sides, Xi tells envoy from Hanoi


China and Vietnam sent a clear signal on Wednesday that strained relations will be repaired and maritime tensions brought under control, after a special envoy from Hanoi visited Beijing.


President Xi Jinping and a number of senior officials met with Le Hong Anh, a senior member of the ruling Communist Party of Vietnam.


The envoy arrived in Beijing on Tuesday to address a downturn in relations following anti-China riots in Vietnam in May. The rioting dealt a substantial blow to the Vietnamese economy after operations were disrupted at more than 1,000 factories.


The envoy delivered messages from the General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong, and Vietnamese President Truong Tan Sang.


Xi said he valued these messages.


In Wednesday’s talks, the two countries promised to honor rules for maritime negotiations and also renounced actions that may complicate or exaggerate disputes.


Xi said, “Friendship serves the common interests of both sides”, adding that the two neighbors should have “timely communication on major issues”.


“It is common to see ups and downs between a pair of neighbors, and the key lies in how to face and treat them,” Xi told the envoy. The two countries also agreed to look to the long term and resume and strengthen cooperation in fields including defense, economy and trade, law enforcement and security, as well as culture.


Liu Yunshan, a member of the Standing Committee of the Political Bureau of the Communist Party of China, said Anh’s mission demonstrates the “proactive political willingness” of the Vietnamese Party and government to improve the relationship.


The Vietnamese envoy stated the unchanged commitment of his country’s leaders to the traditional friendship and Hanoi’s diplomatic priority concerning the relationship with Beijing.


“Given the existing intricate international situation, it is more significant than at any time to press ahead with cooperation and solve differences,” he said.


Xi suggested that the two countries should “rule out various disturbances”, calling for goodwill to be nurtured between their two peoples.


Pan Jin’e, a researcher on Vietnamese studies at the Chinese Academy of Social Sciences, said the United States and Japan have been working harder since the turmoil on luring Hanoi to join the ranks of those seeking to contain China.


The two sides reached a consensus that includes stronger direct guidance by leaders of both countries over the relationship.


They also pledged to make full use of the Sino-Vietnamese governmental border negotiation mechanism and seek a lasting solution acceptable to both countries.


They said they are firmly committed to previous consensus reached by their leaders and promised to substantially put into practice a bilateral agreement on basic principles guiding the settlement of maritime issues.


Li Jinming, a professor of maritime law and South China Sea studies at Xiamen University, said, “Peaceful negotiation is the only path.”


China’s recent efforts to ensure its lawful maritime rights and interests have been greeted by fierce reactions from some countries.


“China will not succeed in reining in territorial provocation impulses if it fails to persevere and stick to its positions,” Li said.


Liu Yunshan also suggested that joint development be conducted on a “substantial level”.


By ZHANG YUNBI (China Daily)






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Bringing Order Out of Chaos – the Investigation of Zhou Yongkang

The downfall of Zhou Yongkang and Xu Caihou, both senior officials that used to be considered immune to corruption investigations, is of great practical significance, as it sets a new milestone in China’s deepening anti-graft campaign. What we should remember, however, is that as a former member of the Political Bureau Standing Committee of the CPC Central Committee and its Political-legal Committee, Zhou had served as China’s political-legal helmsman for as long as a decade. How much money he and his connections had rendered is not a big concern. Instead, of most consequence is the harm resulting from his malfeasance in the political and legal fields during all those years. Over more than 10 years, Zhou polluted almost every part of the country’s political-legal realm. The effect of his actions has manifested itself in mechanisms and latent rules running against the requirements of the rule of law.


tong zhiwei Bringing Order Out of Chaos the Investigation of Zhou Yongkang

Tong Zhiwei



With this understanding, it is not enough to merely focus our efforts on an investigation into Zhou Yongkang’s corrupt, law-breaking and discipline-violating responsibilities or to take them just as individual cases. Instead, we should take this opportunity to reexamine and rectify those systems, mechanisms and latent rules in a political-legal realm in the context of the rule of law.


China’s anti-graft campaign, and the downfall of Zhou Yongkang and several other ‘big tigers,’ has cleared the way for the rule of law, a topic to be discussed at the 4th Plenary Session of the 18th CPC Committee scheduled for October. It is our belief that the meeting will further open the prospects for China’s rule of law, including efforts to install anti-graft and clean-government systems and mechanisms.


On the eve of this important CPC meeting, China should try to understand the magnitude of the harm that took shape and gained new ground during Zhou Yongkang’s time. Many of his actions ran against the requirement of the rule of law, and therefore the Chinese society should fully realize the necessity to bring order out of chaos under the leadership of the CPC Central Committee. To paint a full picture of the irregularities associated with Zhou’s rule of the country’s political and legal field, we have classified them into six categories:


1. Giving personal comments and instructions on specific cases, intervention into specific cases, and concluding cases before they are heard.


Left over from the days before China’s reform and opening-up drive, these malpractices kept happening during Zhou Yongkang’s time. In 1979, the CPC Central Committee issued its No 4 document, which called for the termination of these practices. In the amendment of the Constitution of 1999, in particular, it was stipulated that China would build socialism in accordance with law and turn itself into a country under the rule of law. These measures helped redress the above-mentioned malpractices to a noticeable extent. When Zhou ascended to the helm, the situation should have continued and been improved. But, it went the other way. He took the lead to give instructions on specific cases, overstepping laws and regulations. He also brought in non-judiciary departments and organs to ‘coordinate’ cases and encouraged his juniors to follow his example, totally messing up the country’s judiciary system and operation in accordance with the Constitution and other legal regulations.


2. Sabotage of the lawyer system, the sowing of tension and conflicts between lawyers and courts, procuratorates and public security departments


Not long before he took command of the country’s political and legal division, Zhou took the liberty to revise the definition of lawyers and their profession, driving a wedge between lawyers and courts, procuratorates and public security departments. As clearly stipulated in the Act of Lawyers, lawyers are ‘law practitioners engaged or appointed to offer law services to parties concerned.’ Zhou, however, changed it into ‘socialist legal workers with Chinese characteristics.’ This change has, in fact, reverted the definition of lawyers and their profession to what it was in the late 1970s and early 1980s. At that time, all lawyers were officials working with judicial administrations, and their top obligation was to safeguard national interests, with legal services to clients coming in second. As stipulated in the newly amended Act of Lawyers, lawyers should be employed by their client for legal services. What Zhou insisted, however, is that lawyers should take side with and serve courts, procuratorates and public security departments, purposely sowing the seed of conflict.


3. Creation of a lasting source of social turmoil, by acquiescing the erosion of extra-legal dispute settlement mechanisms, such as petitions and complaints handing operations into the country’s overall judicial system


The petition and complaint settlement arrangement has played a very important role in redressing many cases of wrong, false and unjust cases during political campaigns, especially during the Cultural Revolution. It was, after all, an extraordinary measure that had to be taken during an extraordinary period, and as such should have been abolished when a democratic legal system began to develop. This is why the term ‘petition and complaint handling arrangement’ has never been written into any of the country’s laws or regulations. During Zhou’s reign of China’s political and law realm, however, this extra-legal mechanism kept gaining profile and even came to rival the country’s general judicial system, totally messing up the country’s dispute settlement mechanism.


While trying to disrupt the country’s judicial system with the petition and complaint settlement mechanism, Zhou obviously felt the subsequent pressure of a weakening of judicial roles and the loss of control of petitioners. To deal with the situation, he masterminded a nation-wide campaign to suppress petitioners through non-judicial departments. This led to a flood of cases that infringed upon the fundamental rights of citizens. Many petitioners or latent petitioners were put into private jails, illegally arrested, or forced to ‘travel for the purpose of maintaining social order.’


4. A smaller instead of bigger degree of freedom of the person, freedom of speech and freedom of the press


Since China’s start of reform and opening-up, Chinese citizens have seen a continuous improvement in their personal rights and freedom, with the exception of a fairly short period of time. During Zhou’s time, however, this situation reversed, with malpractice and even criminal behaviors such as extortion of confessions by torture flooding the petition and complaint handling sector, as well as fields devoted to reeducation through labor, removal of housing for construction projects, punishment of speech,and so on.


Reeducation through labor, for instance, is a measure to strip citizens of personal freedom by administrative means for a long period of time. It does not meet even the minimum standard on the rule of law. After 1999, when the rule of law was first written into China’s Constitution, reeducation through labor became even more unconstitutional. As the top executive of the legal sector, Zhou should have worked to abolish this unconstitutional mechanism. But he did not. Instead, he winked at some regions and local leaders maximizing its law-violating and human rights infringing effects, as in the case of Bo Xilai, former Party chief of Chongqing Municipality and Wang Lijun, former police chief of the municipality.


As for the forced removal of residents for new construction projects, it was just a measure of expropriating property. The popularization of this practice has a close bearing on the system of tax distribution and the land-based finance propped up by pertinent central government policies. It does not have any positive connection with Zhou Yongkang. Given the unprecedented violence, bloodiness and infringement upon human rights in this sector during the years when he took charge of the legal sector, however, Zhou should shoulder a major portion of the responsibilities. If Zhou had valued the Constitution and acted in strict accordance with law, it would not have been so violent, so bloody, or so disrespectful of the basic rights of citizens.


To declare a person guilty for his speech was a practice popular during the Cultural Revolution, which could even result in the death sentence. Even after China’s start of the reform and opening-up drive, this practice has not been given up. Some fundamental changes, however, have taken place. When Zhou came to rule the political and law realm, however, the situation began to deteriorate. Its ripples continue to extend even today.


To extort confessions by torture and to collect evidence by coercion are barbaric crime-investigating methods that violate human rights. They were rooted out in Western civilizations a long time ago and labeled as unlawful and criminal in our country. During Zhou’s 10-year reign of China’s political and legal realm, however, these barbaric and unlawful practices remained widespread and rampant in the judiciary sector. Even today, few cases of extortion of confession or collection of evidences through violence have ever been dealt with in strict accordance with law. Even when some cases are brought to trial under some extremely special circumstances, few of the police involved have ever been sentenced.


5. Widespread and excessive loss of private assets and property rights due to the lack of protection rendered in accordance with the law


During the days of revolution, the Communist Party of China led the poor to suppress land tyrants and divide their land, and take possession of private capital in the name of a public-private partnership. That, however, was history. When China started a drive to reform and open-up, it stipulated in its Constitution that it should follow the basic economic system in which the public ownership is dominant and diverse forms of ownership develop side by side. It also declared the constitutional protection of the existence and development of the private economy, the mainstream sector of the non-public economy. It specifically stipulated in Article 13 of China’s Constitution (2004edition) that ‘the lawful private properties of all citizens are inviolable,’ and that ‘the State protects the private properties of citizens and their right of inheritance in accordance with law.’


Strangely enough, however, Zhou Yongkang turned a blind eye to these constitutional stipulations and introduced in his realm another set of judiciary policies running counter to the Constitution and allowing relentless deprivation of the property rights of private enterprises and private businesspeople. The so-call gang crackdown masterminded by Bo Xilai and Wang Lijun in Chongqing, for instance, was actually targeted at private businesses. Without going through any legal procedures, they simply deprived these businesses of their properties and property rights through confiscation, auction or trusteeship, propped by Zhou’s policies.


6. Disorder of the country’s legal system due to attempts to control society by the will of a leader instead of law and bringing“social stability” before a strict implementation of the law


Exercise of social control through legislative, executive and judiciary means is the cornerstone of the rule of law, but it is a goal that is not so easy to achieve. It calls for all citizens, and the rulers in particular, to respect, understand, abide by and execute law. It also calls for the creation of a legal order through the strict enforcement of law.


The basic elements of the legal order include a willingness to see individuals fully exercise their rights and restrain from all deeds forbidden by law, the full exercise of power by State organs in line with laws and regulations so as to guarantee citizens’ enjoyment of fundamental rights and punish law-breaking behaviors, and permission of individual citizens and public power executors to rationally interact with one another within the legal framework. Efforts to maintain social stability, meanwhile, are aimed at bridging a superficial harmony between officials and ordinary citizens, between officials themselves, and between all individuals, and to give priority consideration to the will of leading officials. The genuine logic and true goal in the drive to maintain social stability is, therefore, to keep citizens from speaking or acting recklessly. To achieve this goal, the current leaders may employ all kinds of resources, and even violate the Constitution and other laws and regulations.


To carry its anti-graft campaign to an even greater depth and consolidate the results achieved so far, and to keep corruption at the minimum, China must take the path of rule of law. To take this road, it has to set things right in the six sectors mentioned above. This will be a task of great difficulty, and cannot be fulfilled just through the brainstorming of a few people or the occasional promulgation of some documents. The first and foremost condition for its completion is to free our mind, create opportunities for airing views, review the lessons in the judiciary field over the recent decade, and bring officials and the general public to achieve, through full interaction, some common understanding about reforms.


Tong Zhiwei is a professor of constitutional studies at the East China University of Political Science and Law.






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U.S.-China Rivalry Simmers Underseas

A close midair encounter between U.S. and Chinese military planes last week reflected long-running tensions in the skies—a rivalry that is building under the waters below, as well.


The Defense Department didn’t explain the mission for the U.S. Navy P-8 aircraft—a plane designed to track submarines—that was intercepted by a Chinese J-11 fighter over the South China Sea to the east of China’s Hainan Island on Aug. 19. U.S. officials say in that encounter, and several others in recent months, Chinese fighter pilots have flown dangerously close to U.S. aircraft.


One Chinese rear admiral said the U.S. plane was likely spying on China’s nuclear submarines.


The midair intercepts come as the U.S. military has warned that Beijing is quickly expanding its submarine force, including a fleet of Jin-class nuclear-powered ballistic missile subs.


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Taiwan says Chinese military planes breached its airspace

Taiwan said on Tuesday it had scrambled jets to intercept two Chinese military aircrafts, which breached its airspace four times.


The incident occurred on Monday and the Chinese planes, identified as Yun-8 transport aircraft, left without incident after Taiwanese fighter jets warned them off, Xiong Ho-ji, major general of Taiwan’s Air Force Combatant Command, told reporters.


China’s defense ministry did not immediately respond to a request for comment.


According to Xiong, the Chinese aircraft were headed in the direction of the South China Sea and the Philippines.


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Teenager Arrested in Killing of Imam in Western China

Chinese authorities have arrested an 18-year-old man from a village near the oasis city of Kashgar, in far western China, accusing him of inspiring and planning a fatal attack last month on the imam of the nation’s biggest mosque, according to state news media reports.


Reports from Chinese journalists in Xinjiang, the vast western region that includes Kashgar, said late Sunday that the police had detained the suspect, Aini Aishan, a member of the Uighur ethnic minority, while he was in the city of Khotan, another oasis settlement east of Kashgar. The arrest took place just two days after a fatal knife or ax attack July 30 on Jume Tahir, 74, the Uighur imam of the historic yellow-walled Id Kah Mosque.


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China Money Rate Declines on Bets PBOC Will Ensure Adequate Cash

China’s benchmark money-market rate fell the most in three weeks on speculation the central bank will ensure an ample cash supply to help meet demand for banks’ month-end requirements and new share sales.


The People’s Bank of China capped the amount drained via repurchase agreements at 10 billion yuan ($1.6 billion) today, compared with 65 billion yuan of such contracts maturing this week. The PBOC added a net 11 billion yuan in the period ended Aug. 22 by selling fewer repo contracts than those due. Equity offerings may attract 900 billion yuan in subscriptions in the five days through Aug. 29, Shanghai Securities News reported Aug. 22, citing estimates by Shenyin Wanguo Securities Co.


“It’s very likely the PBOC will maintain a net injection this week, given month-end cash demand and new share sales,” said Lin Yijian, a fixed-income analyst at Guangzhou Rural Commercial Bank Co. in the southern province of Guangdong. “Still, the central bank’s open-market operations look rather neutral, and don’t represent a shift into loosening.”


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China Is Awash in Grain Crops

China’s grain cupboard is overflowing.


As the harvest looms next month, the country is on track for an 11th year of bumper grain crops. But production is too much, even for the world’s most populous nation, with warehouses bursting at the seams and posing a dilemma for policy makers.


Estimates from state media say the government will be sitting on 150 million tons of grains that include three of the most important crops for China: rice, wheat and corn. That is double the 75 million tons last year and adds to an oversupply of these agricultural commodities that is pressuring prices lower.


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ASEAN, China agree to negotiate on upgrading FTA

ASEAN and China agreed to negotiate on upgrading the ASEAN-China Free Trade Area (ACFTA) Tuesday to ensure that the ACFTA remained dynamic and commercially relevant, said a joint statement of the 13th AEM-MOFCOM Consultations.


The consultations held in Nay Pyi Taw was part of the series of related meetings of the 46th ASEAN Economic Ministers Meeting (AEM).


The ministers noted that the agreement to upgrade the ACFTA was a testament to the strong positive relationships between ASEAN and China and deepened the economic cooperation of both sides in a mutually beneficial manner.


The ministers also urged to expedite the conclusion of the Custom Procedures and Trade Facilitation (CPTF) negotiation and the review of the Sensitive Track and Rules of Origin and to report progress made to the next AEM-MOFCOM consultations.


The ministers exchanged view on how to further promote China-ASEAN Connectivity cooperation in the future, according to the statement.


China maintained its position as ASEAN’s largest trading partner. According to the joint statement, ASEAN’s total trade with China reached $350.5 billion, accounting for 14 percent of ASEAN’s total trade and representing an increase of 7.7 percent year on year by the end of 2013.


In 2013, ASEAN received $8.6 billion’s foreign direct investment (FDI) inflow from China, a significant 60.8 percent increase year on year and taking up 7.1 percent of total inflow to ASEAN.


The ministers reaffirmed ASEAN’s and China’s commitment to achieving the joint trade volume target to $500 billion by the end of 2015.


The ministers welcome China’s initiatives to establish an Asian Infrastructure Investment Bank (AIIB) to provide financial support to regional infrastructure projects with priority on ASEAN connectivity.


The AEM-MOFCOM consultations were co-chaired by Kan Zaw, Myanmar Minister of National Planning and Economic Development and Gao Hucheng, Minister of Commerce of China.


Gao highlighted in his speech that the year 2014 is the opening year of the second decade of the establishment of China-ASEAN Strategic Partnership. Along with the speeding up of the ACFTA building process, China and ASEAN have made rich achievements in economic and trade cooperation, becoming a bright spot of the overall China-ASEAN relations.


Gao made a four-point proposals at the consultations to expand China’s cooperation with the ASEAN on mutually beneficial basis. The proposals include jointly building the 21st Century Maritime Silk Road, further raising the facilitation level of bilateral trade and investment, expedition of infrastructural construction of connectivity and enhancing cooperation in regional economic integration.


ACFTA, established in January 1, 2010, covers a population of 1.8 billion approaching a gross domestic product of $6 trillion with trade reaching $4.5 trillion and represents the biggest FTA made up of developing countries in the world.


Myanmar is rotating chair of the 10-member Association of Southeast Asian Nations (ASEAN) this year, which comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.






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China to host APEC tourism ministerial meeting in Macao SAR

Tourism officials from across Asia will meet for the 8th Asia-Pacific Economic Cooperation (APEC) tourism meeting in Macao Special Administrative Region on Sept. 13.


Ministers and representatives from 21 APEC members and three observing members will attend the biennial meeting this year, Li Shihong, an official with the China National Tourism Administration, said during the announcement on Tuesday.


They will be joined by members from the World Tourism Organization and the World Travel & Tourism Council.


China holds this year’s chair for APEC, which is a forum for 21 Pacific Rim economies that seeks to promote free trade and economic cooperation.


Before the official gathering, Macao will host a seminar for the APEC Tourism Working Group, Li said.


The event was arranged ahead of the upcoming APEC summit in Beijing, which begins in November.


The tourism forum was first hosted in Seoul, the capital city of the Republic of Korea, in July 2000.






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Chinese lawmakers stress Basic Law in HK electoral reform

The electoral reform set for 2017 in Hong Kong Special Administrative Region (HKSAR) must adhere to Basic Law and regional realities, legislators said Tuesday.


Hong Kong’s universal suffrage must be promoted prudently and steadily as it will be a historic piece of Hong Kong’s democracy and a significant change in its political system.


It involves national sovereignty, security and development, legislators said during the bi-monthly session of the Standing Committee of the National People’s Congress, China’s top legislature, currently underway in Beijing.


Committee members began examining a report from HKSAR Chief Executive Leung Chun-ying on Monday, discussing whether to revise election methods for the region’s chief executive in 2017 and its Legislative Council in 2016.


They hailed Leung’s report as positive, responsible and pragmatic as it summarizes thoroughly the opinions expressed by different sections of Hong Kong’s communities during a public consultation by the HKSAR government from Dec. 4 last year to May 3.


The current chief executive was elected by a committee in 2012. Hong Kong plans to introduce universal suffrage, the right for citizens to vote, during the next election in 2017.


Basic Law requires candidates for the HKSAR Chief Executive be nominated by a “broadly representative” committee.


According to the report, disputes remain in Hong Kong on core questions including how the nomination committee will be formed and other procedures for deciding candidates.


Some proposals were obvious violations of Basic Law, lawmakers said.


The NPC Standing Committee should exercise power granted by the Constitution and the Basic Law of Hong Kong to make decisions on these core questions in order to promote consensus of the Hong Kong residents and ensure smooth implementation of the new electoral process in 2017.


The discussion was attended by Zhang Dejiang, chairman of the NPC Standing Committee.


On Tuesday’s meeting, lawmakers also deliberated a bill to revise the country’s Budget Law and suggested putting it to vote.


A majority of lawmakers said they were content with the current version of the bill, which was up for its fourth reading since December 2011.


The latest version responds to the most controversial issues for the country’s budget management, including problems brought forth by the public.


The bill strengthened transparency, supervision and the ability to make and implement budgets. It will play an important role in promoting the country’s reform, reviewers said.


One of the most controversial issues is local government bonds. The current law bans local governments from issuing bonds, but in practice local governments have sought backdoors to raise funds, mostly for infrastructure. The money has remained unsupervised.


To tackle this loophole, the bill gives the go ahead for bond sales by provincial-level governments but places them under strict conditions. It not only restricts the amount of bonds but also regulates how to issue and use the funds.


To improve transparency, the bill adds detailed provisions on publishing budget reports and improving supervision by lawmakers as well as the public.


It asks government finance departments to publish their budgets and final account reports within 20 days after they are adopted by the legislature. It also gives the public access to information about local government debts, purchases, budgets and audits.


The bill requires lawmakers to examine major expense items and big investments in budget reports as well as inspect the development and efficiency of such projects.






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Tuesday, 26 August 2014

In China, Foreign Firms’ Sweet Spot Turns Sour

For Western consumer brands in China, this is the moment they’ve been longing for.


The ranks of the middle classes are swelling; foreign wares once considered luxuries are now affordable. Yet, just as the sweet spot seems near for makers of higher-end goods, many of the world’s biggest consumer names find themselves under unprecedented attack.


German car companies and Japanese auto-parts makers have been the latest targets in a wave of antitrust investigations that have resulted in fines and steep price cuts. Earlier probes have homed in on makers of dairy products, eyeglasses, pharmaceuticals and software. The campaign has embroiled everybody from Microsoft to Mercedes-Benz.


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Volvo Introduces Its First S.U.V. Made Under Chinese Ownership

Volvo on Tuesday introduced its first vehicle designed and built under Chinese ownership. But the influence, if any, of the new owners from Hangzhou has been carefully hidden by many layers of Swedish aesthetic.


Volvo managers, overwhelmingly from Sweden or other European countries, portrayed the new XC90 sport utility vehicle as Scandinavian to the marrow. It has an interior designed to evoke an elegant Swedish living room and an optional sound system that supposedly replicates the acoustics of the concert hall in Gothenburg, the hometown of Volvo Cars.


China has become Volvo Cars’ largest market since Zhejiang Geely Holding bought the company from Ford Motor in 2010. But that is partly because sales in other markets have been poor. The seven-seat XC90 is aimed primarily at another market: the United States, where Volvo aims to challenge BMW, Mercedes and Audi S.U.V.s in the driveways of the suburban well-to-do.


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China’s restive far west hopes to win hearts with ‘Princess Fragrant’ cartoon

China has struggled to contain ethnic tensions in the far northwest region of Xinjiang, recently launching a crackdown after a series of violent attacks left hundreds dead in recent months.


But authorities think they may have found a new tonic to mend the cultural differences between the region’s indigenous Uyghurs — a mostly Muslim, Turkic-speaking group — and China’s dominant ethnic group, the Han Chinese.


Her name is Ipal Khan. The wide-eyed Uyghur beauty is the protagonist of an upcoming cartoon based on the well-known tale of a girl from the city of Kashgar who captivated China’s Qianlong Emperor with her good looks and sweet fragrance in the 18th century and became his concubine.


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China police seize 30,000 tons of tainted chicken feet

Chinese police have seized over 30,000 tons of tainted chicken feet, common on restaurant menus in China, in the latest food scandal to hit the country.


Authorities have detained 38 people involved in the sale of the chicken feet in provinces including the eastern province of Zhejiang, the official Xinhua news agency reported on Tuesday.


The arrests followed raids on nine supplier factories in nearby Jiangsu, Anhui, Henan and Guangdong provinces, Xinhua said, adding police found that excess hydrogen peroxide was being added to the meat.


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China Said to Consider $16 Billion EV-Charging Fund

China is considering providing as much as 100 billion yuan ($16 billion) in government funding to build more charging facilities and spur demand for electric vehicles, according to two people familiar with the matter.


The policy will be announced soon, said the people, who asked not to be named because the discussions are private. The people declined to provide further details of the plan such as how long the program would last or whether the chargers would be compatible with cars made by Tesla Motors Inc. (TSLA)


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Microsoft not transparent with sales information: regulator

A Chinese antitrust regulator said on Tuesday that Microsoft Corp had not been fully transparent with its sales data on the software it distributes in China, including information on sales of its media player and web browser software.


Microsoft has expressed willingness to cooperate with ongoing investigations, Zhang Mao, the head of the State Administration for Industry and Commerce (SAIC), told reporters at a briefing in Beijing.


“After multiple meetings including at high levels, they’ve expressed a willingness to respect Chinese law and collaborate with investigating officials,” Zhang said.


The Microsoft investigation comes amid a spate of anti-trust probes against foreign firms in China, including mobile chipset maker Qualcomm Inc and German car maker Daimler AG’s (DAIGn.DE) luxury auto unit Mercedes-Benz. The investigations have renewed fears of Chinese protectionism.


The SAIC said earlier this month that Microsoft had been suspected of violating China’s anti-monopoly law since June last year in relation to problems with compatibility, bundling and document authentication for its Windows operating system and Microsoft Office software.


“The investigation is presently ongoing, and we will disclose the results to the public in a timely fashion,” Zhang said, adding that the Microsoft probe is one of nine investigations opened this year which include the software, tobacco, telecommunications, insurance, tourism and utilities sectors.


The companies involved in the nine investigations comprise domestic, foreign, state-owned enterprises and trade associations, Zhang said.


A Microsoft spokesman declined to comment when contacted by telephone.


The SAIC, one of China’s three anti-monopoly regulators, formally announced its investigation into Microsoft’s activities this month after officials raided Microsoft offices in several major cities and met Microsoft Deputy General Counsel Mary Snapp for questioning in Beijing.






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China’s top legislature opens week-long session

The Standing Committee of the National People’s Congress (NPC), China’s top legislature, opened its bi-monthly session on Monday with a dozen important bills under review.


The opening meeting of the seven-day session was presided over by Zhang Dejiang, chairman of the NPC Standing Committee.


Lawmakers started discussions with a report from Hong Kong Special Administrative Region (SAR) Chief Executive Leung Chun-ying on whether to revise election methods for Hong Kong SAR’s chief executive in 2017 and its Legislative Council in 2016.


This is the second step for Hong Kong’s electoral reform. Hong Kong plans to introduce universal suffrage in the election of chief executive in 2017.


Four bills were tabled for their first reading. They include the draft revisions to the Legislation Law, the Advertisement Law and the National Security Law.


The bill on Legislation Law expands the number of Chinese cities having their legislative powers from 49 to 282.


The draft revision to the National Security Law suggests changing the law’s title to the Counterespionage Law and adding more provisions on this line of work.


Lawmakers also read a bill regarding minor revisions to five laws facilitating the central government’s ability to cancel or decentralize administrative approvals. It was the first time the bill had been reviewed.


In January, the State Council, or China’s cabinet, canceled and decentralized a number of administrative approvals. Some of which cannot happen without revision of laws.


The bill suggests changing provisions for laws pertaining to insurance, securities, registered accountants, government purchase and meteorological services.


For instance, the bill removes a provision that asks actuaries to obtain a qualification from the government insurance regulator. It also authorizes provincial governments to punish those undermining the safety of meteorological facilities.


Three bills were submitted to lawmakers for additional readings. The draft amendment to the Budget Law was submitted for its fourth reading while the bill to revise the Workplace Safety Law and one to revise the Administrative Procedure Law were for the second reading.


Lawmakers also discussed two draft resolutions, one about setting September 30 as Martyrs’ Day and the other to set up special courts for intellectual property rights in Beijing, Shanghai and Guangzhou.






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Monday, 25 August 2014

Asia-Pacific Pivot Handicapped in Troubled World

President Obama must have a lot on his mind lately after the world entered what has been called an “eventful summer”. A number of international and domestic crises are threatening to throw his “rebalancing to Asia-Pacific” strategy off balance.


陈向阳 Asia Pacific Pivot Handicapped in Troubled World

Chen Xiangyang



First, the Ukrainian crisis worsened after a Malaysian passenger plane was shot down over the country’s eastern area. The event aggravated the confrontation between the United States and Russia, leaving Eastern Europe in greater instability, which in turn distracted Washington in its overall diplomatic strategy.


The US and the EU joined hands to impose sanctions against Russia, targeting its energy, banking and military industries. Instead of yielding to the pressure, Russian President Vladimir Putin staged resolute counterattacks. Moscow allowed former US National Security Agency contractor Edward Snowden to stay in the country for three more years while imposing sanctions on agricultural products from Western countries. It also resumed deployment of massive forces along the border with Ukraine. Commenting on the confrontation, former Russian Foreign Minister Igor Ivanov and former British Foreign Secretary Malcolm Rifkind, in a rare move, jointly wrote an article for the New York Times to warn of the threat of a “new Cold War”, arguing that tensions in eastern Ukraine could further rise and even escalate into a direct military conflict between NATO and Russia.


Second, the “Arab Spring” has plunged West Asia and North Africa into an utter chaos. The US had intended to fish in the troubled waters but only to see the Middle East political changes spiral out of control to its disappointment.


In Syria, the US supported the rebel forces in an attempt to topple President Bashar al-Assad’s government. But the civil war led to rampant growth of terrorist forces. The Syrian battlefield has become “the best training camp” for international terrorists, who are now plaguing Iraq and harassing Lebanon. Muslim extremists from the US, Europe, South Asia and Southeast Asia who battled alongside Syrian rebels are bringing threats to their home countries.


In Libya, the US-led subversion of the Gadhafi regime has begun to demonstrate its ill effect as battles between Tripoli and Benghazi militias intensified threatening an all-round civil war. Washington was forced to shut down its embassy in the country.


Third, extremist ISIS (Islamic State in Iraq and Levant) forces won their battles against the Iraqi government troops to take many cities, forcing the US to send troops to Iraq again.


The US invaded Iraq in 2003 in disregard of worldwide opposition. After causing tremendous human casualties, the US troops withdrew from Iraq in 2010, leaving the country in a shambles. Much to Washington’s dismay, the extremist forces that began thriving in the Syrian war have grown into a formidable force in Iraq. Gaining advantages in sectarian conflicts and tribal rivalries, they committed one after another genocide and threatened to overthrow the Baghdad government. Haunted by the scenario of Iraq falling apart and “terrorized”, Obama began to take action. He announced on August 7th that he had authorized American troops to launch air strikes on ISIS forces so as to help the government rescue the people trapped by the rebels.


Fourth, the flames of war raged again in the Gaza Strip with the US finding itself no longer able to control the Israel-Palestine conflicts. After three Jewish teenagers were killed by Hamas forces, Israeli Prime Minister Benjamin Netanyahu launched massive attacks on Palestinians in disregard of Washington’s dissuasion. The military offensives caused heavy casualties, creating a serious humanitarian crisis. The US tried to mediate but failed to achieve any result, leaving itself in isolation in the international community. Israel lashed out at Washington’s efforts with “the most scathing remarks” with some officials calling Secretary of State John Kerry “a traitor” and blaming him for “having ruined the Israel-US relations.”


Fifth, Afghanistan continues to suffer from chaos, leaving Washington’s withdrawal plan in doubt. After the 9-11 disaster, the US invaded Afghanistan to plunge itself into “the longest war in American history”. Pessimistic about the prospect of the war and post-war reconstruction and “democratic reform”, Obama was eager to have US troops withdrawn from the country as early as possible. Unfortunately, the Kabul regime failed to live up to Washington’s expectations while Taliban forces showed signs of coming back menacing. The killing of a US major general by extremists in the Afghan government troops signals the high possibility of the country being ruled by Taliban once again.


Sixth, a domestic finance in dire straits forced the White House to slash the military budget while the enmity between Democrats and Republicans keeps hampering Obama’s foreign policies.


The public is more and more dissatisfied with their president’s foreign policies. Media opinions pointed out that Obama’s poor performance in diplomacy may help Republicans win both the House and Senate in the mid-term elections. At present, Obama even faces the possibility of being prosecuted by the House speaker for “abusing power and violating Constitution.”


With the aforementioned “six major constraints”, the “pivot to Asia-Pacific” strategy will lead nowhere. The root cause of its failure lies in the fact that Washington’s ambition goes far beyond its real ability. To make it worse, both of the allies the US pins its hope on for the “pivot” strategy – Japan and the Philippines – have proven to be out-and-out troublemakers.


Chen Xiangyang is Deputy Director & Research Fellow at World Politics Research Institute, China Institutes of Contemporary International Relations.






Chen Xiangyang, Deputy Director, Institute of World Political Studies, CICIR via CHINA US Focus http://ift.tt/1APo6ig

Vietnam envoy to visit China to seek thaw in testy ties

Vietnam will send a special envoy to China this week to try to rebuild battered diplomatic ties with its communist neighbor after they sank to their lowest in three decades, amid a flare-up over sovereignty in the South China Sea.


Vietnam’s Foreign Ministry on Monday said Le Hong Anh, a member of the Communist Party’s powerful politburo, had been invited to meet Chinese leaders to try to ease tension and stabilize ties with Beijing, with which it shares $50 billion of annual trade.


The visit, starting on Tuesday, is the first sign of a concerted effort to heal rifts between two sides locked in a war of words since May 2, when China deployed a $1-billion oil rig in waters Vietnam claims as its exclusive economic zone. China moved the rig on July 16, saying its mission was complete.


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Chinese Intercepts of U.S. Planes Expose Limits of Warming Ties

U.S. Navy planes have had a series of dangerously close encounters with Chinese fighter jets during routine patrols above the South China Sea, U.S. officials said, in what they described as an alarming trend that may involve rogue pilots.


The incidents complicate what has been an unusually cooperative period for the two militaries. They underscore how deep-seated suspicions remain, despite attempts by some senior officers and political leaders on both sides to build a working relationship.


The Pentagon on Friday made public what it characterized as a particularly aggressive encounter on Tuesday. U.S. officials later said that at least three similarly provocative incidents occurred earlier this year in the same general location, all in international airspace.


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Mugabe Meets Xi Seeking China Aid After Shun by Obama

Zimbabwe President Robert Mugabe met his counterpart Xi Jinping in China today, weeks after he was snubbed by U.S. President Barack Obama at a summit of African leaders he hosted in Washington.


Mugabe, 90, was welcomed with an honor guard outside the Great Hall of the People where he received a 21-gun salute. He was then serenaded by three women playing traditional Chinese instruments before heading into closed-door meetings with Xi.


Leader of Zimbabwe for 34 years, Mugabe’s seizure of land owned by white farmers and a series of elections marred by violence and irregularities have made him a pariah to governments in the Western world. His country’s ability to borrow from global institutions has also been undercut. Yet China has long maintained close economic and diplomatic links, with Vice Premier Wang Yang visiting the country in May 2013 on a two-day official visit.


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China targets own operating system to take on likes of Microsoft, Google

China could have a new homegrown operating system by October to take on imported rivals such as Microsoft Corp, Google Inc and Apple Inc, Xinhua news agency said on Sunday.


Computer technology became an area of tension between China and the United States after a number of run-ins over cyber security. China is now looking to help its domestic industry catch up with imported systems such as Microsoft’s Windows and Google’s mobile operating system Android.


The operating system would first appear on desktop devices and later extend to smartphone and other mobile devices, Xinhua said, citing Ni Guangnan who heads an official OS development alliance established in March.


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U.S. rice farmers see opportunity in China

Gg Yielding was given a quixotic task: travel to China and determine if consumers there would be willing to eat American rice.


So he set up tables at some of the most popular supermarkets in southern China, hung American flags and began dishing out steamy samples of rice from Arkansas and California.


“At first they’d say, ‘There’s rice in the U.S.?” said Yielding, head of emerging markets for the U.S. Rice Producers Assn., a Houston-based trade group. “And we’d have to show them a map to explain that it’s grown in California and the South. Then they’d try it, and they would really like it.”


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Friday, 22 August 2014

Natural Gas Production Falls Short in China

Jin Peisheng, a drilling rig foreman, knows the challenges of trying to extract natural gas from a coal seam under the cornfields here in north-central China.


Cracks in the subterranean coal are flooded with water that needs to be pumped out before the gas will emerge. The coal seams are so cold that gels injected into the well, which are meant to help release the gas, sometimes become gummy and block the flow instead. And there is constant concern about hitting the labyrinths of active coal mines that honeycomb the area.


“The big uncertainty is what’s underground — if there’s a tunnel, that’s a big danger. It would be dangerous for the miners,” Mr. Jin said.


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China Says Qualcomm Is Willing to Resolve Dispute

Chinese regulators said Friday that Qualcomm Inc. is willing to make efforts to resolve a dispute that prompted an investigation by Beijing into the company’s pricing practices there.


The National Development and Reform Commission, China’s economic planning body, said in a statement on its website that it met on Thursday with a delegation from the wireless-technology company, including President Derek Aberle. “Qualcomm expressed its willingness to make improvements,” the statement said.


The statement didn’t provide further details. The NDRC didn’t immediately respond to requests for comment. Qualcomm said in an emailed statement that executives met with NDRC officials, discussing “several topics in an effort to reach a comprehensive resolution.” The company is cooperating with the commission, the statement said, adding that the company declined to comment further.


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China uses Deng’s birth date to glorify Xi

China has seized Friday’s 110th anniversary of Deng Xiaoping’s birth to highlight similarities between President Xi Jinping and the paramount leader who set the country on the road to economic prosperity while crushing dissent.


A heavyweight official biography of Deng was published this week, and Chinese television viewers were being regaled with a 48-episode dramatisation of his life, broadcast nationwide in prime time.


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China’s Xi Courts Public Opinion in Mongolia

With assurances of mutual development and good neighborliness, Chinese President Xi Jinping courted public opinion Friday in Mongolia, a country that has often been wary of domination by its massive southern neighbor.


In an address at the Great Hural, Mongolia’s parliament, Xi said China stood ready to share wealth and work with its neighbors for peace and stability.


“We will uphold the guidelines of amity, sincerity, mutual benefit and inclusiveness in neighborhood diplomacy,” Xi said.


Xi told reporters on Thursday that China would always respect Mongolia’s independence, territorial integrity and right to make its own decisions. Those comments reflected concerns among some Mongolians of being subsumed by China, whose size and population of 1.3 billion dwarf this landlocked nation of just 3 million sandwiched between China and Russia.


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China investigates former NDRC finance chief in bribe probe

A former director at China’s economic planning agency who oversaw corporate bond issues between 2003-2006 is being investigated, the country’s top prosecutor said on Friday, the latest official to be implicated in an anti-corruption drive.


Zhang Dongsheng, who was more recently the head of the employment and income distribution division at the National Development and Reform Commission (NDRC), was “suspected of taking bribes”, the Supreme People’s Procuratorate said on its official microblog.


“Zhang has been placed under coercive measures,” it said, referring to actions under law that include residential surveillance, detention and arrest. It did not specify which steps had been taken and offered no further details.


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Investment laws to be revised by next year

Procedures in Shanghai FTZ will be reviewed as part of the process


Revision of foreign investment laws is likely to be concluded in 2015, when the focus will shift to the supervision of investors and their conduct, Assistant Minister of Commerce Wang Shouwen told China Daily on Thursday.


“The revision of foreign investment laws is a key project, and will probably be completed within the 12th Five-Year Plan,” Wang said. That plan covers the years from 2011 to 2015.


“It’s still hard to say what the final versions will be like. There may be a law called the foreign investment law. The essential thing is that it will shift from the regulation of enterprises to the supervision of investors and their investment behavior, and thus it will be an investment law.


“The revised foreign investment laws will define investors and investment conduct. Issues that are under discussion and that fall within the scope of the Company Law will not appear in the foreign investment law,” he said.


“The stipulations in the Company Law will remain in force,” Wang said.


He added that the Company Law, adopted in 1993 to regulate the organization and operation of companies, was enacted after the three laws that govern foreign investment.


The Law on Sino-Foreign Equity Joint Ventures was adopted in 1979. The Law on Foreign-Capital Enterprises was enacted in 1986, and the Law on Sino-Foreign Cooperative Joint Ventures was adopted in 1988.


“We are also reviewing the China (Shanghai) Pilot Free Trade Zone and studying whether the registration-oriented approach, supported by approvals, could be expanded to foreign companies across the country, which will help build a unified, open, competitive and orderly market,” Wang said.


The zone, approved on Aug 22 last year and officially launched the following month, is serving as a trial region for the “negative list” approach, which details sectors barred to foreign investment, as well as “pre-establishment national treatment”, which gives foreign enterprises the same treatment as domestic companies.


Wang Zhile, a senior researcher on foreign investment at the Chinese Academy of International Trade and Economic Cooperation, has urged that foreign investment laws be combined with the Company Law, which will provide overseas companies on the Chinese mainland with national treatment and lay the foundations for corporate governance.


China was the world’s second-largest recipient of foreign direct investment after the United States last year. But in the first seven months of this year, actual FDI inflows, excluding the financial sector, slid 0.35 percent from a year earlier to $71.14 billion, according to the Ministry of Commerce.


“In the January-July period, contracted FDI, which foreshadows investment inflows for the near future, surged 11 percent from the same period last year, suggesting that the prospects are very good, and we are confident in the future. The huge Chinese market is growing into the world’s largest one,” the assistant minister said.


Citing a report from the United Nations Conference on Trade and Development, he noted China remains the world’s most attractive investment destination and the investment environment is “improving rather than deteriorating” despite recent probes into foreign companies such as BMW AG and Microsoft Corp.


The FDI decline in the first seven months of the year was caused by lagging investment in export-oriented and labor-intensive sectors amid rising costs of labor, land and resources, the assistant minister added.


The 18th China International Fair for Investment and Trade will be held in Xiamen, Fujian province, from Sept 8 to 11 to promote inbound and outbound investment.


The event, the only one in China that specializes in promoting international investment, will cover the topics of national economic and technological development zones, transnational companies in China and China’s investments overseas.


By Li Jiabao (China Daily)






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Thursday, 21 August 2014

China’s Top Graft Buster, Wang Qishan, Probing Thousands

When Wang Qishan, China’s top graft-buster, dispatched a dozen investigators to this south China river town last summer, his message was clear: The investigators should inspire “shock and awe” among local officials, according to an account posted on a government website.


Mr. Wang’s inspectors told local media they had settled in at a government-owned hotel. Within days, hundreds of residents lined up to give evidence about what they viewed as wrongdoing by corrupt local officials. Complaints also flooded in via the Internet, according to officials with knowledge of the matter.


Yang Peng, a restaurateur, says he told investigators he was jailed and tortured because of his association with an enemy of an important local mandarin who was accused of rigging the sale of a steel mill in exchange for kickbacks.


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China economy fears deepen as August HSBC flash PMI at three-month low

Growth in China’s vast factory sector slowed to a three-month low in August as output and new orders moderated, a preliminary private survey showed on Thursday, heightening concerns about increasing softness in the economy.


The tepid reading came as China’s economic growth appears to be faltering again, with recent indicators ranging from lending to output and investment all pointing to weakness.


With conditions looking increasingly unsteady, analysts say more stimulus may be needed in coming months to bolster growth and offset the downdraft from the cooling housing market.


The HSBC/Markit Flash China Manufacturing Purchasing Managers’ Index (PMI) fell to 50.3 from July’s 18-month high of 51.7, missing a Reuters forecast of 51.5.


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China tries five cult members for McDonald’s murder

Five people went on trial Thursday in China on charges of beating a woman to death in a McDonald’s restaurant after unsuccessfully trying to recruit her to join their Christian cult.


They allegedly belong to the Church of Almighty God, also known as Eastern Lightning, a group that claims to have millions of members here and believes that God has returned to Earth in China in the form of a female Christ.


The five are accused of trying to recruit the woman in McDonald’s in the eastern city of Zhaoyuan on the evening of May 28. When she refused to give them her phone number, prosecutors charge, they beat her to death with chairs, a mop and, when the mop broke, with its metal handle. Footage of the incident from closed-circuit television cameras and video taken by other diners went viral at the time.


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New Map Shows China’s True Expanse, General Says

Two new maps being issued in China this summer are stirring debate across Asia. The first, an ambitious vertical map issued in June by the Hunan Map Publishing House, uses 10 dashes around the South China Sea to broadly delineate China’s claims to contested waters, shoals, rocks, reefs and islands there. The second is being distributed to units of the People’s Liberation Army. Military officials have said it is the army’s first major revision of a map in 30 years.


The military map has not been revealed to the public yet, but news reports in India have already questioned whether it will show that Himalayan territory contested by China and India is unequivocally part of China.


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