Michael Pettis writes on the interbank stresses in Crunch Time (Foreign Policy):
The surprising thing about this process has been the government’s determination to see it through. Policymakers in Beijing have not backed down from the implications of rebalancing China’s economy away from its addiction to investment and debt, even though economic growth is slowing and banks are pleading with the government to turn back on the liquidity spigots. Whereas the administration of President Xi Jinping’s predecessor, Hu Jintao, never allowed growth to slow much before losing its nerve and increasing credit, Xi seems determined to stay the course…
Last week is a reminder that Beijing is playing a difficult game. The rest of the world should try to understand the stakes, and accommodate China’s transition to a more sustainable growth model. As policymakers in China continue to try to restructure the economy away from reliance on massive, debt-fueling investment projects that create little value for the economy, the United States, Europe, and Japan must implement policies that reduce trade pressures.
Interesting that in this Foreign Policy article Mr. Pettis does not use the word “crisis” to describe what has been going on?
Professor Nicholas Lardy (bio), who apparently is in Beijing this week, has written an OpEd in the Financial Times on the recent liquidity crunch and its possible benefits for reform of state-owned enterprises. In China could reform its state businesses by stealth Professor Lardy writes that:
While rates have since come down, a view has taken hold that the People’s Bank of China was caught by surprise and was slow to react to the freezing up of short-term money markets. Some analysts even reckon there was a serious policy miscommunication.
But such views are not well founded…
Indeed, the episode is generally positive for the trajectory of economic reform under China’s new leadership. Mr Li in recent speeches has specifically rejected the view that a new stimulus programme should be launched to counter slowing growth. He warns that the room for further stimulus is narrow and, in any case, would create new risks and problems. Rather, he has signalled that China should rely more on the market to sustain economic growth…
I have heard that at the Sunnylands Summit President Xi told the Americans that SOE reform was in the second phase of his reform plans. SOEs may be too powerful to tackle directly right now, but there should be ways to weaken them enough to allow for a more successful assault in 2014 or 2015. In addition to financial reforms that could lead to increasing interest rates for the SOEs, resource price reform may also be another avenue to reduce their power. Has anyone written “How Would Sun Tzu Tackle SOEs” yet?
It’s hard to believe June is almost over. Thanks for everyone who has supported Sinocism this month. If you have not, please consider making a contribution.
Today’s Links:
THE ESSENTIAL EIGHT
China Policy Bank Provides $100 Billion in Liquidity Since May – Bloomberg Agricultural Development Bank of China has provided 615.7 billion yuan ($100.1 billion) in liquidity to the markets since late May, signaling efforts from the nation’s largest lenders to ease a cash crunch. The funds were distributed mainly through overnight money market transactions and used to help institutions overcome liquidity shortages, the bank said in a statement on its website today. The capital was provided to members of its bond underwriting syndicate, the lender said. Syndicate members include Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. (939) and Bank of China Ltd., according to the Chinese government bond clearing house website.
Related: Minsheng Bank tells the story of Beijing’s credit worries | Reuters Short sellers are betting on a further drop in Minsheng’s shares. As much as 61.8 percent of Minsheng’s Hong Kong stock that can be borrowed — a measure of interest from short sellers — was out on loan on June 25, according to data provider Markit, compared with a market average of around 15.3 percent.
Related: Did China’s Central Bank Blink? – China Real Time Report – WSJ “The central bank had to calm the market,” said Li Daokui, a former adviser to the PBOC. Speaking at a conference in Beijing, he said that ultimately monetary policy alone wasn’t enough to sort out the problems in the banking system. Mr. Li said that more measures may be on the way. At that point, market rumors might well start flying again.
Related: 6月流动性危机：一场受控的＂金融核试验＂_21世纪网-21cbh.com Gotta love 21st Century Business Herald…has a mushroom cloud (or is that a radioactive jellyfish?) in the graphic in its “June Liquidity Crisis” section // screenshot on Twitter
Related: 审计署：银行间债市输送利益较突出_经济频道_财新网 Don’t underestimate the possibility of increased party discipline/judicial actions to attempt to modify bank behavior // 审计署对五家银行的审计，发现债市利益输送问题11起，涉及非法输送利益6亿多元；另外，部分贷款被客户挪用，或转入民间金融市场，用于高利转贷、归还民间借款
Related: 纪志宏谈央行断奶:央行的爱是强硬的爱不是溺爱_证券时报网 “tough love” talk from a PBoC official // [纪志宏] 英语里面有一个强硬的爱，而不是溺爱的爱，要管教你的孩子，又要关爱他，中国的央行做得很好，一方面惩罚坏孩子，我还是很赞赏这种做法的。中国银行对未来保持一个好的期待，对于中国未来金融市场应该有一个更好的期待。
Xi’s call for “mass line” answered by actions – Xinhua | In early July, all 31 provincial level regions and the Xinjiang Production and Construction Corps (XPCC), as well as central government organs and people’s organizations, will convene work conferences to set up concrete plans in order to carry out an education campaign. Standing committees of the Party committees of all 31 provincial-level regions and the XPCC have held meetings as well as regional seminars to learn from Xi’s speech.
Related: [视频]各地区各部门各单位研究贯彻举措 筹备启动第一批党的群众路线教育实践活动_新闻频道_央视网 Thursday CCTV Evening News on the convening of work conferences to plan for the education campaign…80 million Party members will be spending lots of times studying the mass line education campaign, and writing about what the have learned (their 心得)…if each Party member spends 20 hours on this campaign, you are looking at 1.6 Billion hours, and it could be more…// 央视网消息(新闻联播)：本台消息，党的群众路线教育实践活动工作会议后，各地区各部门各单位迅速传达学习习近平总书记重要讲话和会议精神，研究贯彻举措，筹备启动第一批教育实践活动。
Related: 人民日报-用实际成效取信于民 ——四论学习贯彻习近平同志6月18日重要讲话精神 本报评论员 Fourth in series of page 1 People’s Daily commentaries on the spirit of Xi’s speech at the opening of the mass line education campaign June 18
Related: 不信清风唤不回——中央“八项规定”落实情况综述-新华时政-新华网 八项规定，是新一届中央领导集体强化作风建设的切入口。一项项落实举措，一个个积极变化……回眸八项规定颁布实施这半年多时间，从城市到乡村，从机关到企业，大力推动作风转变正在向纵深发展。
Related: 专家学者解读中共中央政治局专门会议精神-新华时政-新华网 此次会议传递了哪些新信号？有哪些新亮点？又将会给未来的中国带来哪些新启示？记者２７日就此采访了相关专家学者。
Is Xi Jinping’s Fight Against Corruption For Real? | ChinaFile Conversation Roderick MacFarquhar, Winston Lord, Andrew Nathan, Orville Schell weigh in.
Related: 借整风破特权 中国式养廉能否解积弊？_中国_多维新闻网 Duowei on the what it calls the rectification campaign (and has been calling it that for months) // 因此，有了“高标准、严要求”的规程制度之外，还需要看能否“落地”，而其中“规范”和“透明”是必须的保障措施。这就需要将习近平在中共政治局专门会议上指出的“把制度约束作为刚性约束，令行禁止、不搞例外，坚决整治对中央规定变着法子进行规避的各种行为，绝不允许上有政策、下有对策，绝不允许打擦边球”落到实处。另一方面，也要善用群众的力量，善用舆论监督、媒体监督等，让那些无视规定、滥用权力、奢靡成风的官员们受到惩处，这样才能让社会公众看到整风的实效，消除人们集聚已深的不信任感。否则即便口号喊得震天响，也不过是一场自导自演、自说自话的闹剧，徒遭人戏谑。
Related: 人民日报- 迎接新的时代大考（反对“四风” 服务群众·深入开展党的群众路线教育实践活动——写在党的群众路线教育实践活动即将深入开展之际 meeting the big test of the new times, opposing the four elements, serving the masses. Page 1 People’s Daily lead in to much longer piece on page 4 // 64年前，毛泽东同志率领中共中央机关离开西柏坡向北平进发时壮言：“我们去进京赶考。但愿我们能考出好成绩，不要退回来，我们不做李自成。” 64年后，这场以为民务实清廉为主要内容、以贯彻八项规定为切入点、进一步突出作风建设的教育实践活动，堪称在新的时代背景下全党上下的一次大考。 在这场时代大考中，考生是全体党员，考题是如何保持党和人民群众的血肉联系，考试重点是解决形式主义、官僚主义、享乐主义和奢靡之风这“四风”问题，考官是广大人民群众，考试结果则直接关系到能否保持党的先进性纯洁性、能否巩固党的执政基础执政地位、能否全面建成小康社会。
Related: 人民日报-迎接新的时代大考（反对“四风” 服务群众·深入开展党的群众路线教育实践活动） ——写在党的群众路线教育实践活动即将深入开展之际 meeting the big test of the new times, opposing the four elements, serving the masses…the longer piece on page 4…bets on many of the 80 million party members are no longer Party members after this campaign concludes? // 人若多日不洗澡，就会泥垢满身；房子长期不打扫，就会蛛网遍布。因此，经常洗洗澡、隔段时间给房子来次大扫除，是十分必要的。 眼下，一场旨在清洗思想和行为上灰尘的“大扫除”——党的群众路线教育实践活动即将在全党深入开展，8000多万党员正在迎来一场新的时代大考。摒弃模糊认识，破除思想障碍，充分认识深入开展教育实践活动的必要性、紧迫性. 这是一项重大决策，这是一个重大举措…有的党员干部认为，“四风”问题主要针对领导干部，离普通党员很远，让全体党员投入活动，会不会有“部分得病、全体吃药”之嫌？ 这样的看法也是一种误区。活动在要求以“县处级以上领导机关、领导班子和领导干部为重点”的同时强调，“切实加强全体党员马克思主义群众观点和党的群众路线教育”。这就明确地传递出一个信息：这次活动，每个党员都是参与者，没有人可以当“观众”。
Related: 人民日报–狠刹奢靡之风，重在清廉（人民观点） ——党的群众路线新思考之五 本报评论部 纵览历史，从“六王毕，四海一，蜀山兀，阿房出”到“戍卒叫，函谷举，楚人一炬，可怜焦土”，秦朝二世而没的教训引人深思；从“骊宫高处入青云，仙乐风飘处处闻”到“渔阳鼙鼓动地来，惊破霓裳羽衣曲”，唐代由盛而衰的转折令人嗟叹。治乱交替、盛衰无常，其中的关键就在于，“历览前贤国与家，成由勤俭败由奢”。..奢靡之始，危亡之渐”。没有什么比奢靡之风更能把党与群众隔离开来。如果成天忙于应酬、耽于享乐，穿梭于高档会所，沉迷于推杯换盏，常常是醉醺醺、昏沉沉、轻飘飘，哪有时间深入基层、深入群众？哪有时间思考问题、研究工作？把有限的社会资源用于满足奢华的口腹之欲，又如何不让群众追问：权力究竟是在谋一己之私，还是为人民服务？任由奢靡之风蔓延，我们党就会脱离群众，就会失去根基、失去血脉、失去力量…邓小平曾感慨：“为什么过去很困难的局面我们都能度过？根本的问题是我们的干部、党员同人民群众一块苦。”在实现中国梦的新征程上，狠刹奢靡之风，全心全意与群众一块苦、一块干、一块过，我们才能从亿万群众中凝聚起实现梦想的磅礴力量。
Related: China to investigate military construction projects – Xinhua crazy rumors going around about the scale of corruption in the Gen Gu Junshan case // China will launch a sweeping investigation into construction and real estate projects owned by the military. Fan Changlong, vice chairman of the Central Military Commission(CMC), told a national teleconference held Thursday that the investigation should be “thorough, accurate and reliable.”… No timetable was given for the investigation, which has been seen as part of the military’s efforts to curb corruption.
China faces test over plans to cut industrial capacity | Reuters Beijing has sought to tackle overcapacity in sectors such as aluminium and steel for about a decade, but plans have faltered due to resistance from local governments anxious to protect growth and boost revenues. In a sign Beijing may be getting more serious, cutting capacity is becoming a performance target for local officials…The latest plan is likely to seek to block new projects, push for more mergers and acquisitions and raise targets to shut old capacity. China was previously committed to closing 7.8 million tonnes of outdated steel and 273,000 tonnes of aluminium capacity in 2013. The plan will be supported by steps designed to cut air pollution in cities by closing or relocating heavy industry. // Hear that at Sunnylands was very clear in discussing China’s massive overcapacity problem
Related: 人民日报-坚定信心 稳中有为 本报评论员 interesting Page 2 People’s Daily commentary on the state of the economy and the ongoing challenges // 稳中有为，就要稳中提质，着力提高经济发展的质量和效益。要进一步研究采取既利当前又利长远、既稳增长又调结构的举措，充分挖掘有效需求。要分门别类抑制和消化严重过剩产能，把先进产能的作用发挥出来。调整优化投资安排，把有限的钱花在建机制、增效益上，通过压缩行政开支特别是“三公”经费，给民生支出以更大保障。要让质量与效益、就业与收入、环境保护与资源节约协调推进，稳中求好、稳中求优，努力打造中国经济“升级版”，夯实发展后劲。 下半年经济工作任务繁重，我们要坚定信心，凝聚共识，真抓实干，按照中央的决策部署，坚定信心、稳中有为地推动各项经济工作，确保全年经济社会发展目标顺利实现。
Dui Hua Human Rights Journal: Corruption, Shuanggui and Rule of Law Both the anti-corruption effort and the notion of enhancing rule-based governance converge in a recent article (translated below) in the Guangzhou magazine South Reviews by legal journalist Ye Zhusheng. Ye looks at the practice of shuanggui—a form of investigative custody used against Communist Party members accused of serious disciplinary violations such as corruption or dereliction of duty—and how the recent passage of regulations within the party might be a sign of efforts to bring this controversial corruption-fighting measure under rule of law.
China and South Korea Reaffirm Efforts to End North’s Nuclear Threat – NYTimes.com A joint statement issued after the meeting between the leaders, President Xi Jinping of China and President Park Geun-hye of South Korea, also said they had agreed on the importance of faithfully carrying out United Nations Security Council resolutions that called for sanctions against North Korea, as well as a multilateral agreement in 2005 under which the North was obliged to give up its nuclear weapons programs in return for economic and diplomatic benefits.
Related: 中韩面向未来联合声明（全文）-新华国际-新华网 双方积极评价１９９２年建交以来两国关系发展成果，就中韩关系、朝鲜半岛局势、东北亚及地区形势、国际问题等共同关心的问题深入交换意见，提出以互信为基础，进一步充实发展中韩战略合作伙伴关系的未来愿景。
Related: The Chosun Ilbo – Cheong Wa Dae Officials on Tight Leash During China Trip Cheong Wa Dae officials have been put through a training program and given strict orders to avoid any embarrassments during President Park Geun-hye’s trip to China. The aim is to forestall any repeat of the sexual harassment scandal that overshadowed her U.S. visit, which saw the abrupt sacking of presidential spokesman Yoon Chang-jung for molesting an embassy intern. Officials are under strict orders to stay clear of foot massage parlors and entertainment venues and avoid venturing out into the Beijing night alone.
The Secret Foreign Donor Behind the American Enterprise Institute | The Nation The right-wing think tank received big money from Taiwan’s government at the same time that it was churning out policy papers and articles urging US military aid to Taipei…The American Enterprise Institute (AEI) has emerged as one of the Beltway’s most consistent advocates for the sale of advanced fighter jets to Taiwan. Previously undisclosed tax filings reveal that while issuing research reports and publishing articles on US-Taiwan relations, AEI received a $550,000 contribution from the government of Taiwan, a source of funding the think tank has never publicly acknowledged. In 2009, AEI, a nonprofit 501(c)(3) organization, received the contribution from the Taipei Economic and Cultural Representative Office (TECRO), Taiwan’s equivalent to an embassy.
Related: So What If Taiwan Funds AEI? | Flashpoints | The Diplomat Moreover, while the article focuses on TECRO’s financial contributions to AEI, it makes absolutely no mention of the much more substantial — and oftentimes less transparent — donations to U.S. think tanks and academic institutions by the People’s Republic of China (PRC) government, wealthy Chinese individuals, or corporations with strong business interests in China (to that we can also add the co-optation of retired U.S. generals and government officials via highly lucrative corporate positions). Nor is it said that through those institutions, the PRC is attempting to sever U.S.-Taiwan ties, end U.S. arms sales to the island, and encourage the perception that the “re-unification” of Taiwan and China is inevitable, by force if necessary, even if this goes against the wishes of Taiwan’s 23 million people. In short, by being so selective, the article completely omits the tremendous influence that the much stronger party in the dispute, China, has on U.S. policy on Taiwan.
Buying old Beijing – BEIJING – Globaltimes.cn Prices have certainly increased, but at a more steady pace than apartments, according to Zhang Rencang, a property lawyer specializing in courtyards. In 2007, courtyards were priced at 40,000 to 60,000 yuan per square meter, and nowadays the price has risen to about 80,000 to 100,000 yuan per square meter for courtyards within the Second Ring Road, he said. Those available for rent or purchase mostly fall between 300 to 700 square meters in size.
BUSINESS AND ECONOMY
China’s Sinovel Charged With Stealing Trade Secrets – Bloomberg Sinovel Wind Group Co., a Chinese wind-turbine company, was charged with stealing trade secrets from its former U.S. partner, a case of industrial espionage that may heighten tensions in U.S.-China relations in the wake of the Edward Snowden affair. U.S. prosecutors secured an indictment of the company and two of its executives in federal court today in Madison, Wisconsin.
U.S. lawmakers to examine Smithfield-Shuanghui deal | Reuters U.S. lawmakers will examine the proposed purchase of Smithfield Foods (SFD.N), the world’s largest pork processor, by Shuanghui International of China at a hearing in July, Debbie Stabenow, the head of the Senate Agriculture Committee, said on Thursday. Smithfield Chief Executive Larry Pope will be among those to testify at the July 10 hearing. Other witnesses have not been announced.
APCO Appoints James McGregor Chair for Greater China James McGregor, author of the bestselling book One Billion Customers: Lessons from the Front Lines of Doing Business in China and No Ancient Wisdom, No Followers: The Challenges of Chinese Authoritarian Capitalism, was appointed today as chairman for the Greater China region at APCO Worldwide, founder and CEO Margery Kraus announced today. Jennifer Hart was promoted to deputy managing director of the Beijing office.
人民日报-国务院调整国务院促进中小企业发展工作领导小组组成人员 马凯任组长 Ma Kai appointed head of small group to promote SME development // 根据通知公布的组成人员名单，国务院副总理马凯任组长，副组长为工业和信息化部部长苗圩、财政部部长楼继伟、国务院副秘书长肖亚庆。成员包括工业和信息化部、发展改革委、科技部、财政部、人力资源社会保障部等１８个部门的有关负责人。 通知还明确，领导小组办公室设在工业和信息化部。工业和信息化部总工程师朱宏任兼任领导小组办公室主任。
China Out of 10 Biggest Stocks as PetroChina Ousted by J&J – Bloomberg Chinese shares are underperforming U.S. equities by the most since 1998 as the American housing and jobs markets improve. Stocks in the world’s second-largest economy, which climbed 345 percent over the past decade and accounted for half of the world’s top 10 in 2007, are falling as the country struggles to develop a consumer market while the government tries to clamp down on a credit boom amid concern that bad loans and bank failures will deepen the slowdown. “Investors are looking at the U.S. because there are actually signs of growth, versus China where it’s exactly the opposite,” Wayne Lin, a money manager at Baltimore-based Legg Mason Inc
审计署报告：省会城市债务率最高达189%-财经网 有的地方债务率最高达189%，债务偿还过度依赖土地收入，4个省和17个省会城市本级政府负偿还责任的债务余额中，有55%承诺以土地收入偿还，但这些地方2012年需还本付息额已达其可支配土地收入的1.25倍
“钱荒”来袭：房地产业“钱景”不明_财经频道_一财网 虽然现在就来评估“钱荒”对地产业的影响还有点为时过早，但是，作为一个资金密集型的行业，流动性紧张只会限制其发展的速度，同时也意味着资金成本的上升。 从去年底开始的资金“蜜月期”看来已经结束。 一个有趣的现象是，今年在一线城市争抢地王的开发商，绝大多数在往年都没有拿过“地王”的经历。这也意味着，他们都没有吃过拿“地王”的苦头。
POLITICS AND LAW
State Council to Move on Hukou Reform – Economic Observer For big cities like Beijing, the pace of intergrating new residents will inevitably be slow. On the one hand, the cost of providing social services like education, health care and insurance for migrant workers is steep, with some scholars estimating that each new urban resident will cost the city 200,000 yuan. On the other hand, an influx of large numbers of people pouring into these very large megacities, raises the question of whether city management can keep up. It’s likely going to be a long time before migrants arriving in big cities like Beijing will be able to apply for permanent residence.
Death toll from Xinjiang attacks rises to 35 | South China Morning Post Beijing yesterday raised the death toll from a series of attacks in Turpan , Xinjiang , on Wednesday from 27 to 35. Twenty-four were killed by rioters, including two policemen, Xinhua said, adding that 16 of them were Uygurs. Police killed 11 rioters, while 21 police officers and civilians were injured.
China urged to end forced resettlements in Tibet | Reuters The report, by New York-based Human Rights Watch, said Chinese authorities threw lives into disarray by denying rights to forcibly relocated ethnic Tibetans with insufficient compensation, sub-par housing and lack of help in finding jobs. “The scale and speed at which the Tibetan rural population is being remodeled by mass rehousing and relocation policies are unprecedented in the post-Mao era,” said Human Rights Watch China Director Sophie Richardson.
中纪委：会员卡清退已结束 即将公布结果_资讯频道_凤凰网 此外，根据新华社记者在各地了解到的部分情况，受到此次清退活动的影响，一些曾热销的高尔夫球卡、高档会所消费卡等不同程度受到“冲击”，有些曾高达百万元的高尔夫会员卡市场价格罕见地出现了下降。
北京警方证实李天一案侦查完结 将不公开审理_财经频道_一财网 update on Li Tianyi gang rape case. netizens don’t expect justice, already pointing out the word games in the official statemement… // 李天一的代理律师薛振源正式辞去为其代理涉嫌强奸案的律师工作，但他自称“有些原因不方便说，也不好说”，拒绝正面回应辞职的真实原因。
31家非法从事新闻业务网站被关闭-法制网 31 illegal news web sites shut // 新华网北京6月27日电(记者王小鹏、贾楠)记者日前从国家互联网信息办公室获悉，自5月9日开展规范互联网新闻信息传播秩序专项行动以来，“人民内参网”、“广东删帖公司网”、“中国人民新闻网”、“中国焦点新闻网”、“人民在线网”、“中国新闻资讯网”、“中国新闻调查网”等31家未依法取得互联网新闻信息服务资质，冒用合法新闻机构名义非法“采访”，编发负面虚假信息敲诈勒索的网站被依法关闭。(名单附后) 经查明，上述非法网站大多由个人主办，多数未依法登记备案或标注虚假备案信息，均未依法取得互联网新闻信息服务资质。这些网站打着网络媒体旗号到各地进行所谓“采访”，有的违规设立“记者站”、“地方频道(分站)”，大量违规编发虚假新闻信息；有的以假乱真，冒用合法新闻网站名义承揽稿件提供、版权合作、广告经营等业务，实施欺诈；还有的以“舆论监督”为名，借“曝光”、“爆料”负面失实信息，对企业、单位和个人敲诈勒索，社会影响恶劣。
FOREIGN AND DEFENSE AFFAIRS
Chinese Defense Ministry Accuses U.S. of Hypocrisy on Spying – NYTimes.com In recent days, Chinese state-run media have amplified criticisms of the United States, and the remarks from the Defense Ministry spokesman, Colonel Yang Yujun, struck a tougher tone. He did not refer explicitly to the United States, but he left no doubt about his target. “The Prism-gate affair is itself just like a prism that reveals the true face and hypocritical conduct regarding Internet security of the country concerned,” Colonel Yang said at a monthly news conference in Beijing. The comments from the briefing, which was open only to Chinese reporters, were reported on the Web site of the Defense Ministry. “The Prism-gate affair again reminds us that we must attach even more importance to Internet and information security protection, and resolutely protect Internet security and national security,” said Colonel Yang.
有的国家滥用技术优势谋一己之私 却对别国无端指责——国防部网站 Col. Yang’s original comments// 杨宇军：“棱镜门”事件正如同一面多棱镜，折射出有关国家在网络安全方面的真实面目和虚伪言行，这其中的是非曲直自有公论。 网络安全是各国普遍面临的综合性安全挑战，维护网络安全是各国的共同责任。一方面滥用信息技术优势谋求一己之私，另一方面又对别国无端指责，这种双重标准的做法无益于网络空间的和平与安全。“棱镜门”事件再次提醒我们要更加重视网络与信息安全防护工作，坚决维护网络安全和国家安全
Dempsey: China Doesn’t Think Cyber Theft is Wrong | Defense News | defensenews.com The Chinese government feels that it’s in the clear when it comes to stealing data from US companies using cyber tools, an issue leaders of the two countries will address next month as part of dialogues on cybersecurity, Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, said Thursday…Dempsey made a point of differentiating between intelligence gathering activities, the type outlined by documents leaked by Snowden, and intellectual property theft. // Snowden has forced much more specificity about what is ok in the cyber world..no more conflating by media or government officials of legitimate intelligence efforts with IP theft
Asia-Pacific Defense Budgets ‘To Outstrip N. America By 2021’ | Defense News Defense budgets in the Asia-Pacific region will overtake the United States and Canada by 2021, according to a study by respected analysts IHS Jane’s published Tuesday. Weapons spending in China and other Asia-Pacific countries is expected to rise 35 percent above its 2013 level to $501 billion (€383 billion) by 2021, outstripping North America, the “Balance of Trade” study concluded.
Japan says it will help Philippines amid China sea row | South China Morning Post Japanese Defence Minister Itsunori Onodera said China’s contentious claim to nearly all of the South China Sea and its territorial dispute with Japan in the East China Sea were discussed during top-level talks in Manila. “We agreed that we will further co-operate in terms of the defence of remote islands… the defence of territorial seas as well as protection of maritime interests,” Onodera told a joint news conference. “We face a very similar situation in the East China Sea of Japan. The Japan side is very concerned that this kind of situation in the South China Sea could affect the situation in the East China Sea,” he said, speaking through an interpreter.
Confrontation over the South China Sea ‘doomed’, China tells claimants | Reuters Wang’s comments came days before the minister is due to attend a meeting of foreign ministers of the Association of Southeast Asian Nations grouping in Brunei from Saturday to Tuesday. The 10-member ASEAN hopes to reach a legally binding Code of Conduct to manage maritime conduct in disputed areas. For now a watered-down “Declaration of Conduct” is in place.
China state media report ‘US cancelling blacks’ voting rights’ in another blunder | South China Morning Post The article, entitled “A federal state of the United States cancels African-American suffrage,” ran on Wednesday afternoon on the website of China Radio International (CRI), a state-run news outlet. It claimed that US state Alabama’s Supreme Court had decided to “cancel several core clauses of the Voting Rights Act, [and that] all African Americans of [Alabama] would no longer possess the proper voting qualifications.” The article said this decision had caused an “uproar” in the United States, with both the National Association for the Advancement of Coloured People as well as President Barack Obama expressing deep regret.
U.S. targets entities, persons linked to DPRK’s missile program – Xinhua The Obama administration on Thursday slapped sanctions on entities and individuals with alleged links to the Democratic People’s Republic of Korea (DPRK)’ s ballistic missile and weapons of mass destruction (WMD) programs. The Department of Treasury blacklisted Daedong Credit Bank (DCB) , its front company, DCB Finance Limited and DCB Finance Limited’s representative, Kim Chol Sam, in its latest efforts to cut off financing for what it called DPRK’s illicit activities.
Inside the Ring: China breaks sanctions – Washington Times “On the basis of the information currently available, the panel considers it most likely that the Democratic People’s Republic of Korea deliberately breached the end-user guarantee that it officially provided to [China‘s] Wuhan and converted the WS51200 trucks into transporter-erector launchers,” says the annual report of a U.N. panel of analysts, dated June 11. According to the report, Chinese officials told the United Nations that the six transporter-erector launchers were sold as “lumber transporters” and were manufactured by China’s Hubei Sanjiang Space Wanshan Special Vehicle Co., and that they could not be used for transporting missiles.
Commentary: Returning Australian PM has opportunity to further deepen China ties – Xinhua | English.news.cn will he have a 诤友 redux, or did he learn his lesson? // Rudd, one of the few leaders of major Western countries who can speak fluent Chinese, has a sizable fan base on Sina Weibo, a popular Chinese microblogging service. By Thursday, the number of his followers has exceeded 370,000…Despite the apparent cultural bond, China-Australia relations did not go all that well when Ruddy was Australian prime minister between December 2007 and June 2010. Many Chinese still remember his sometime harsh criticism of China. But things do change. In Rudd’s case, he has become a maturer and more seasoned leader since his humiliating defeat in a power struggle with outgoing Prime Minister Julia Gillard within Labor Party in 2010.
Workers of fortune – Globaltimes.cn Lu had no idea that she was among tens of thousands of staff from North Korea dispatched to work in factories and restaurants in different cities in China. There are no official statistics for the number of North Korean workers in China. Chosun Ilbo, a South Korean daily, reported around 120,000 North Koreans were sent to work in China last year, the highest ever yearly total, but this figure has not been verified by either Chinese or North Korean authorities. Officials in Dandong, a bordering city of North Korea, refused to comment on the matter when approached by the Global Times.
HONG KONG, MACAO AND TAIWAN
Hong Kong Travelers Set to Suffer For Snowden Decision – China Real Time Report – WSJ what about the people who sheltered Snowden? will they have a special time entering the US if they try to travel there? // After Hong Kong authorities allowed the former government contractor to board a flight for Moscow despite an extradition request from the U.S., the State Department warned that discussions aimed at granting Hong Kong passport holders 90-day visa-free access to the U.S. for business or tourism could suffer as a result.
Qianhai economic zone chief says it won’t compete with Hong Kong | South China Morning Post Zhang Bei, the top official in charge of developing Qianhai says the small but important zone will help, rather than compete with its near neighbour, Hong Kong. “We will not compete with Hong Kong in any areas where Hong Kong has already done a great job,” says Zhang, director general of the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Co-operation Zone.
前海综合规划出台 金融创新力度空前-新闻-中国证券网 昨日,前海管理局正式对外披露了日前获得深圳市政府批复通过的《前海深港现代服务业合作区综合规划》（以下称《综合规划》。
TECH AND MEDIA
Mainland China copyright watchdog monitors Apple and Amazon | South China Morning Post Technology giants Apple and Amazon will come under scrutiny from the mainland copyright watchdog in its yearly campaign against online piracy. The pair, along with local leaders including Taobao, would have to report on their measures for protecting copyright and handling complaints filed by copyright holders, the National Copyright Administration said. Officials would crack down on uploading and disseminating content without permission and selling pirated products on e-commerce platforms, it said.
Father of the Great Fire Wall resigns due to deteriorating health, Chinese netizens wish him an early death | Offbeat China There is probably no one more hated by Chinese netizens than Fang Binxing, the name behind the organization and development of China’s nation-wide Internet censorship system known as the Great Fire Wall (GFW)…Yesterday, Fang announced his resignation from his post as the president of the Beijing University of Posts and Telecommunication during the university’s 2013 graduation ceremony
SOCIETY, ART, SPORTS, CULTURE AND HISTORY
Chinese Parents Push Kids to Elite Western Summer Schools – WSJ.com That kind of exposure doesn’t come cheap. Upper-middle-class Chinese families who accompany their children on those U.S. study programs can spend up to $30,000 on airfare, lodging, and tuition, based on interviews with parents. A three-week program at Eton College, arranged as a group tour by Shanghai-based consultancy BE Education, costs $10,000 for each child, according to BE.
姜伟的城堡_王泰安_博联社 Cool pictures of the renovation of an old fortress in Shanxi…the owners are working on their fortress dream…// 姜伟是我的老友亦是父母世交还是老乡，几十年来他的心血卓有成效，在山西太谷的一座深山的巅峰买下一座旧城堡的废墟，开始园自己的城堡梦……6月24日我走马观花记录了这古城堡的修复中……当地老乡叫这里是青龙寨。
Belly Dancing For The Dead: A Day With China’s Top Mourner : NPR File under “one of the oddest jobs ever”: professional mourner. China’s funeral rituals date back 2,000 years to the Han dynasty, but were banned during the Cultural Revolution as superstition. Now these funeral rituals have become an income source to a select few who stage funeral extravaganzas, marrying ancient Chinese traditions with modern entertainment.
Performing at funerals: professional mourners in Chongqing and Chengdu—Danwei 2010, without the great sounds from the NPR story// A fascinating feature story in The Beijing News earlier this week took a look at the careers of professional wailers, performers paid to present the eulogy at a funeral and lament the deceased through anguished songs.
ENERGY, ENVIRONMENT, SCIENCE AND HEALTH
No Easy Answers for Clean-up of Milk Powder Industry – Caixin Premier Li Keqiang said in late May at a State Council meeting that the government would supervise the quality of infant milk powder using the same standards as those used for drugs…
FOOD AND TRAVEL
应对葡萄酒“双反” 部分酒商转战“新世界”_财经频道_一财网 rumors of increased tariffs on European wine could be boon for “new world wine”…too bad the California wine industry has no effective trade group pushing their goods in China // 不少酒商提前囤货百元以下中低端酒。6月初，商务部开启对欧盟葡萄酒反倾销和反补贴立案审查程序。
BEIJING
北京环球影城项目最快年内启动–中国证券报·中证网 Construction of Universal Studios Park in Tongzhou, Beijing to start by year end? // 权威人士透露，备受关注的北京环球影城项目获重大进展。北京市相关负责人曾表示，已在积极准备前期工作，预计最快会在今年内启动项目实施。业内人士指出，北京环球影城项目若启动，将会带来巨量投资，对当地房地产和基建业形成直接利好，在此地区拥有较大土地储备或者重大项目的上市房企将最先受益。此外，项目建成后，将会催生庞大的影视、旅游消费产值，当地影视、旅游公司有望迎来长期红利。