The Sinocism China Newsletter 04.25.14

"Sinocism is the Presidential Daily Brief for China hands"- Evan Osnos, New Yorker Correspondent and National Book Award Winner

Xi Jinping’s campaigns are different than those of his predecessor.

The latest example is the “Cleaning the Web 2014” campaign against indecent material. These cleanup campaigns are an annual event that, after a period of noise and naming and shaming, have historically faded away without putting a dent in the huge of amount of lewd content on the Chinese Internet.

Yesterday the campaign claimed an Internet tiger. Sina, one of the country’s top portals, got the full propaganda treatment as the government announced that it was revoking two key licenses and detaining employees for further investigation because of lewd content found on the site. The Thursday CCTV Evening News and page one of the Friday edition of People’s Daily publicized the decision.

Sina, which between its news site and Weibo service has a long history of figuring out how to work with the regulators, appears to have assumed this year’s campaign would be similar to the previous ones. The authorities punished Sina twice in 2013 for indecent content but clearly management figured they could find ways to skirt the law.

They were wrong, and the punishment and humiliating propaganda push are very clear warnings to all the other major Internet players. As occurred with the online rumor crackdown that started last summer, arrests are an escalation that focus the mind and may actually change behavior.

It could have been worse for Sina though, as had this crackdown come during the Weibo IPO roadshow the deal might have failed. Why was Sina the target and not one of the other Internet giants, all of whom have indecent content? I have some guesses but do not know anything for certain.

There also appears to be a cleanup going on among some of the Internet regulators, as yesterday’s newsletter noted.

Just a reminder that the newsletter is still not back to daily on a consistent basis but will be coming out with more frequency than over the last five months.

Today’s Links:


Japan, U.S. fail to reach broad TPP accord before Obama’s departure – 毎日新聞 Japan and the United States were unable to secure a broad deal in marathon two-way talks on a Pacific trade accord despite last-minute efforts to solve remaining issues before U.S. President Barack Obama leaves Tokyo, Japan’s economy minister Akira Amari said Friday.

Related: Abe secured only half of key goals at meeting | The Japan Times Prime Minister Shinzo Abe managed to achieve half of the two critical goals he set for Thursday’s summit with U.S. President Barack Obama: He succeeded in getting America’s pledge to defend the Japan-administered Senkaku Islands, a vow likely to keep China in check. But Abe failed to achieve the other goal, namely a broad agreement on the Trans-Pacific Partnership talks. This was also a setback for Obama, who lobbied hard to seal the free trade deal. The two were thus unable to issue a joint statement after their talks.

Related: Obama Stands With Abe – WSJ Editorial Page A Chinese spokesman this week referred to the U.S.-Japan alliance as a relic of the Cold War. A few years ago he might have had a point, as the difficulty of relocating Marine bases on Okinawa showed. But Beijing’s desire to return to the days when neighboring countries paid tribute to the emperor has brought the alliance to the fore again. Presidential visits are mostly about symbolism, and Mr. Obama’s trip sent the needed message of solidarity with a democratic ally.

Related: Commentary: Misreading Obama’s commitment over Diaoyu islands is dangerous – Xinhua This is a standard U.S. policy, a political cliche, the meaning of which should not be exaggerated. As Obama explained: “This is not a new position.” However, what is extremely dangerous is that Abe and his nationalistic government might be encouraged to challenge China’s bottom line in territorial disputes in the belief that Obama’s pledge is a shield that gives them immunity from all punishments. Unfortunately, it is just another typical Tokyo illusion. Shortly after this commitment, Obama refused to draw a “red line” on China-Japan territorial disputes by saying his government took no side on the issue, and shied away from the question of whether America will intervene militarily if an armed incursion targeting the disputed islands happens

China Strips Sina of Publication, Distribution Licenses Over Lewd Content – the suspension of Sina’s licenses marks the first time the government has used its annual campaigns to go after the country’s largest listed Internet companies. In the past, sites would be taken down and social-media accounts suspended, but the operations of companies like Sina were generally left alone…Although China carries out annual campaigns to combat the distribution of lewd content over the Internet, the most recent crackdown has been significantly more severe than those of recent years.

Related: [视频]“扫黄打非 净网2014”专项行动:新浪网涉嫌传播淫秽色情信息被查处 Sina’s problem with indecent content makes the Thursday CCTV Evening news as well as Thursday’s “Focus” program, in a longer segment 《焦点访谈》 20140424 净网清源

Related: 净网,是底线也是高压线(今日谈)_网易新闻中心 Sina’s indecent content gets mention on page 1 of Friday’s People’s daily, as example of how serious governmentt is this time// “新浪网的互联网出版和网络传播视听也被停止了?”24日,当全国“扫黄打非”办公室通报最新情况后,很多人既惊讶更感叹。大型网站理应为净化网络环境承担更多社会责任。然而,声名广播如新浪网竟也不能免于涉黄,足见“网络黄毒”的范围之大、渗透之深,对它的查处,更折射出“净网行动”打击网络淫秽色情的坚定决心。

Related: 新浪公司涉嫌传播淫秽色情信息(扫黄打非·净网2014)–社会–人民网 Sina’s indecent content case makes page 7 of Friday’s People’s Daily. Company had been penalized twice in 2013 for indecent content…officials says campaign to deepen 

Related: 分析称新浪如失去两证将丢掉小说视频游戏等业务_新闻_腾讯网 Sounds like it is possible Sina will have to shut its gaming business if it loses the two licenses, Total fine may be up to 5.08m RMB, some Sina employees detained // 根据我国相关规定,新浪网最多将被处以508万余元的罚款…读书频道负责人已经被控制,该案仍在进一步工作中…对此,张毅分析,罚款是小事,如果这两个证书被吊销,意味着新浪可能会失去小说、音乐、视频、游戏业务。值得注意的是,作为门户网站,《互联网出版许可证》是这类企业最重要的证书之一,

China Sets Heavier Punishments for Polluters – Passage Thursday closes what has been an unusually vigorous debate among policymakers, academics and activists. Participants said the amendments enshrined in law promises made last year during a high-profile gathering of top Communist Party brass. They set the stage for additional regulations expected to require greater protection of air, water and soil. The amended law will take effect Jan. 1, according to the official Xinhua news agency.

Related: 新环保法“开闸”环境公益诉讼 新华社——经济参考网 Economic Information on how the new environmental law will allow for lawsuits against polluters // 4月24日,十二届全国人大常委会第八次会议以高票赞成通过了新修订的环境保护法,这是环保法实施25年来的首度大修,同时也首次对环境公益诉讼作出了规定。值得注意的是,目前符合诉讼资格的公益诉讼主体已经从最初方案的一两家,扩大至超过300余家。   对于众多环保公益组织而言,上述消息犹如一针“强心剂”。多位业内专家对《经济参考报》记者表示,条件成熟后或许会逐步放开个人诉讼,相比公益诉讼去年上亿索赔零受理的尴尬,修订后的环保法放开了社会组织的诉讼权,新法实施后环保公益诉讼将会迎来一个“井喷期”。

Is China Really Prepared to Shift to Market-Driven Interest Rates? | Institutional InvestorPart 1 of two very smart articles by Teneo’s James Shinn. Part 2–China’s Rate Liberalization Stakes: Who Wins, Who Loses? | Institutional Investor

Young Chinese Maoists set up hippy commune – Telegraph Filled with nostalgia for an era they never experienced, admirers of Chairman Mao have set up a commune where young Chinese can escape the pressures of capitalism

From Half the Sky to ‘Leftovers’ | ChinaFile  There’s very little evidence that urban women have turned their scarcity into economic gain,” [Leta Hong Fincher] writes in Leftover Women, the result of three years voluminous research towards a Ph.D. at China’s prestigious Tsinghua University, which will be released on May 1 in the United States by Zed Books. Hong Fincher presents compelling evidence women’s rights in China have seriously regressed since Mao Zedong proclaimed, “Women hold up half the sky.”

Middle-class flight: Yearning to breathe free | The Economist Not everyone who obtains a green card abroad wants to leave China. Some are global travellers who want a more convenient passport for border crossings. Some want an emergency-exit hatch should the Chinese economy get into trouble or the police come knocking. But many others are going for good, and unlike past waves of Chinese emigrants, they include accomplished mid-career professionals who have little to gain financially by leaving.

Flower Town | the Anthill nice story about changes in a Sichuan village



The “Real Pain” Is About To Begin As Chinese Currency Slumps To 19-Month Lows | Zero Hedge Remember, as we noted previously, these potential losses are pure levered derivative losses… not some “well we are losing so let’s greatly rotate this bet to US equities” which means it has a real tightening impact on both collateral and liquidity around the world… yet again, as we noted previously, it appears the PBOC is trying to break the world’s most profitable and easy carry trade // below 6.25, lots of pain for some. My year end prediction of 5.8-9 not looking too smart right now 

房地产税立法草案或年内“破茧” 新华社——经济参考网 Draft of property tax law expected by end of the year…nationwide property registry now not expected to be complete until 2016, really expect any kind of significant move on property taxes before 2016 at the earliest, without even considering the political obstacles? // 备受社会各界关注的房地产税立法工作正在低调而有序地推进。《经济参考报》记者从多方渠道获悉,房地产税立法工作由全国人大预算工作委员会具体牵头负责。知情人士告诉记者,目前全国人大和财政部、国税总局等国务院职能部门正在密集调研,酝酿在今年年内拿出一份初拟的房地产税立法草案。

Commodity Markets Shift to Brighter View of China – many investors and analysts are betting prices have bottomed. They contend China’s government is likely to avert an economic meltdown and that growth will stabilize at current levels around 7%. While that is below the double-digit expansions of the past decade, the economy is now so large it will continue to suck in rising quantities of raw materials for years to come, they argue.

Land Sales: The Ever-More Lucrative Habit China’s Officials Just Can’t Kick – China Real Time Report – WSJ last year, local government officials sold 367,000 hectares of land, up 14% from the year before. The sales were a bonanza for local government finances, raising 4.2 trillion yuan ($682 billion), a 56% increase over the previous year. By contrast in 2012, governments sold 322,800 hectares, representing only a 3% rise over the previous year. That year, the 2.7 trillion yuan raised by sales was up a comparatively less dramatic 15% from 2011. (The Ministry’s annual reports don’t provide data on earlier years.)

溢价180% 恒大41.6亿北京再夺地_财经频道_一财网 Evergrande buys a plot of land in Daxing, Beijing for 4.16B RMB, 180% over the minumim bid // 该地块东侧至新源大街,西侧至规划纵一路,北侧至义绣路,南侧至规划横一路,吸引了合景泰富、上海复地、华远、旭辉和北辰联合体、保利首开联合体参与,现场经过100余轮竞拍。

Bond Market Belgian Mystery Draws China Focus – Bloomberg Is China the answer to the mystery of why Belgium is now home to so many U.S. Treasuries? The euro area’s sixth-largest economy has boosted its holdings by $140.6 billion since the start of December, making it the third-biggest holder of the world’s benchmark debt, with $341.2 billion in February. That’s almost twice what it had a year earlier.

Adidas Deals With Striking China Factory by Moving Orders – Bloomberg Sports and casual shoe brands including Nike Inc. (NKE), Asics Corp. (7936), New Balance Athletic Shoe Inc., Puma SE (PUM) and Timberland Co. are made by Yue Yuen, the world’s biggest branded footwear maker and operator of the 1.4 million-square-meter (15 million square-foot) Dongguan complex in southern China. Employees at the complex, where more than 40,000 people work, are striking in a dispute over compensation since April 14.



Beijing Tells Petitioners: Please Stay Home – China Real Time Report – WSJ The bureau’s new rules include instruction to government departments to close cases where they are the target of a complaint within 60 days — if they accept the case — and to not extend that period more than 30 days. The state bureau said a complainant unhappy with the initial decision can appeal one step up the bureaucratic ladder within 30 days.

Qinghai official probed for suspected serious violations: CCDI – Xinhua Mao Xiaobing, the Communist Party of China (CPC) chief of Xining, capital city of Qinghai province, is under investigation for suspected serious violations of discipline and law // lots of ties to mining industry

华润金融CEO吴丁被带走调查_金融频道_财新网 Caixin reports that China Resources Capital Holdings CEO Wu Ding has been detained/

广州日报原社长当庭举报市纪委书记被打断_网易新闻中心 former head of Guangzhou Daily on trial for corruption, he and his wife have publicly accused Guangzhou official and CCDI secretary Wang Xiaoling of insider dealings. His wife first made the official accusation at the end of 2013 and has also turned over evidence to a CCDI inspection team 

Chinese prosecutors target bribers in graft fight – Xinhua The campaign will target repeat offenders and cases that involve a large number of bribers, large amounts of money and result in grave consequences, according to a statement released on Thursday after a meeting for the anti-graft offices under various prosecuting organs. SPP figures show that some 5,676 people were prosecuted for bribery last year, accounting for 31.4 percent of total suspects involved in bribery cases and up 17.3 percent year on year.

元老频频亮相踏春 周永康贺国强处境艰难_中国_多维新闻网 Duowei says lack of public appearance by He Guoqiang may be sign he is in trouble, says one of his sons is linked to Song Lin and China Resources//与之相类似的还有温家宝在纪念习仲勋的纪录片中的亮相等等。而退休的上一届七个常委中,目前来看,唯有周永康和贺国强没有正式的公开亮相,周永康已被外界认定是“大老虎”只待案情公布,贺国强出奇的低调或也是因为处境艰难。

习近平谈秘书工作:别认为靠山硬就有恃无恐_网易新闻中心 Xi Jinping sends a warning to official secretaries…in speech in 1990, now getting play//习近平尤其提到,“(秘书)不能认为“机关牌子大、领导靠山硬”而有所依仗、有恃无恐,更不允许滥用领导和办公室的名义谋取个人私利。”“要克服优越感,坚决防止对基层干部群众盛气凌人、态度傲慢、颐指气使、发号施令的现象。”这些话,冀文林等“秘书帮”早听到,早领会,何至于有今天? 另外,习近平则这篇谈话,对于初入行当秘书的人来说,有极强的参考学习价值。领会好,才能进步快,又不走邪路。

近代西方国家政治制度的发展轨迹 _ 2014/08 _求是理论网 Red Flag reiterates it is not a fan of Western political systems //

山西长治“有8个身份证”公安副局长被免职_网易新闻中心 local Shanxi police official who has eight official ID cards is removed from his post

手机“变身”小喇叭(改革就在咱身边)–时政–人民网 People’s Daily has a new series called ” Reform is at our sides”. First one looks at how mobile phones and a “6995” help line are making rural lives better…especially when combined with grid management // 4月10日,记者来到吴付正修葺一新的家,不一会他推门回来了,满脸淌汗搓着手说:“烟苗要移栽了,小组长通知加快田间进度!”“咦,这还真快。”乡党委书记马邹接过话茬:“我上午才打‘6995’布置,你们就忙开了!”   马邹介绍,耈街乡山大谷深,“望山跑死马”。以前乡里安排个事,层层落实到田间地头,也快“跑冒滴漏”完了。如今用“6995”加上分级网格化管理,一传十十传百,分分钟搞定!新厂村党总支书记左玉春也感同身受:开会少了,电话费少了,办事效率却提高了。

China’s Police Will Carry Guns Unlike Any Others – China Real Time Report – WSJ “They also choose nonstandard (proprietary) ammunition to make ammo supply more complicated for criminals who might obtain revolvers from policemen.” In other words, even if a gun is stolen from a police officer, finding the correct ammunition to reload it could be difficult because technically only the police would have access to it.

Kweichow Moutai Q1 net profit lags forecasts | Reuters Kweichow Moutai Co Ltd , China’s top seller of fiery liquor baijiu, on Thursday posted its weakest quarterly profit growth in three quarters due to the Chinese government’s crackdown on luxury spending.

China tells officials to fly discount on government travel – Yahoo News The new rules ban officials from travelling on full-price tickets and force domestic airlines to offer discounts of at least 12 percent. Government employees are also required to take domestic carriers as much as possible when traveling abroad, according to the rules jointly released by the Ministry of Finance and the Civil Administration of China on Tuesday



China, U.S. should respect each other, say Premier Li – Xinhua Chinese Premier Li Keqiang (R) meets with a delegation led by the U.S. House Majority Leader Eric Cantor (L) in Beijing, capital of China, April 24, 2014.// Rep Paul Ryan on trip, per Linkedin Ryan’s brother Stan is still at Cargill in Shanghai

Invitee Masuzoe in Beijing amid chill | The Japan Times Tokyo Gov. Yoichi Masuzoe arrived in Beijing on Thursday in hopes of cooling tensions rising between China and Japan over territorial and historical issues. In the first visit by a Tokyo mayor since 2008,

U.S. Military Voices Worries Over South Korean Use of Chinese Telecom Gear | Washington Free Beacon The U.S. military command in South Korea voiced concerns this week that a Chinese telecommunications deal with South Korea could undermine the security of communications on the tense Korean peninsula. Chris Bush, a spokesman for the U.S. Forces Korea said the command is concerned that a deal between China’s Huawei Technologies, Inc. and the South Korean company LG could undermine operational security.

China welcomes Palestinian unity deal, hopes will help peace | Reuters China’s foreign ministry welcomed on Thursday a unity pact agreed between the Gaza-based Islamist group Hamas and President Mahmoud Abbas’ Palestine Liberation Organisation, saying Beijing hoped this would help peace talks with Israel. While the United States said it was disappointed by the deal, which it said could make peace efforts difficult, China said it regarded the move positively. // Israel doesn’t agree

Illegal Uighur Immigration in Southeast Asia | cogitASIA CSIS Asia Policy Blog China will have to pursue nuanced policies among Southeast Asian nations, who will not automatically cooperate with repatriation requests. Pressure from Beijing will not be as effective in influencing governments in Southeast Asia to deport Uighurs as it has been in Central Asia. Thailand, for instance, must deal with criticisms from domestic human rights groups, international bodies, and its treaty ally, the United States. On the other hand, Thailand faces an enormous volume of refugees, including Cham, Rohingya, and Uighurs, from neighboring countries, and it could use China’s help.

越南在南沙岛屿建邮政站 借邮戳宣示“主权”_新闻_腾讯网 Vietnam sets up a postal station on one of Nansha/Spratly Islands

互联网治理,让更多人享受便利–国际–人民网 People’s Daily on the NETMundial Internet Conference and Internet governance

Justin Bieber visits Yasukuni Shrine, angers all of China – YouTubeTaiwanese Animators strike again



Self-censorship ‘common’ in Hong Kong newspapers, say journalists | South China Morning Post Poll of journalists reveals self-censorship and intrusion by owners a regular occurrence, and public have a negative view of media freedom

Kowloon Walled City-WSJ Multimedia Project

China’s Taiwan Reality Check | The National Interest Blog No less an authority on the Chinese-Taiwanese issue than Richard Nixon imparted wise counsel to Beijing and Washington twenty years ago. The ultimate political realist, who created the original opening to China in 1972, wrote in 1994, even before Taiwan’s democratization process was complete: “The situation has changed dramatically since the Shanghai Communique. Realistic reappraisals of U.S. relations with Taiwan…and between Beijing and Taipei are overdue…The separation is permanent politically, but they are in bed together economically.” // but what can Taiwan do about it given the economic integration and China’s resolve for reunification, other than hope for the status quo? 



《财经》杂志第391期-互联网中国变局 latest issue of Caijing has a good cover package on China’s Internet

Alibaba Plan Puts IPO Record in Sight – Alibaba is expected to officially file for the IPO in the next couple of weeks, though that filing isn’t likely to settle the size and composition of the offering, people familiar with the discussions said. The filing may indicate that both the company and insiders plan to sell shares, but details likely will be completed at a later stage, they said.

Baidu Profit Beats Estimates Advertisers Lured – Bloomberg Revenue increased to 9.5 billion yuan. That compares with the 9.53 billion-yuan average of 13 analyst estimates, and the company’s February projection of 9.24 billion yuan to 9.52 billion yuan in revenue for the quarter.

李彦宏:百度大脑“智商”已相当于两三岁小孩_财经频道_一财网 Robin Li says that Baidu’s “brain” project has reached the intelligence level of a 2-3 year old // “百度内部有个‘百度大脑’的项目,用技术模拟人脑思维,现在大约已经相当于2~3岁孩子的智力水平。未来这样的大脑或许比人脑还要聪明。”



教育部:19大城市小升初要有时间表、任务书、责任人_新闻频道_more on the school enrollment reforms, from Thursday CCTV Evening News //教育部强调,新政要坚持免试入学、划片入学,尽量使片区科学合理。对于热点学校,要尽量扩大覆盖面,进行随机派位,做到机会均等。坚持“阳光”招生,确保整体工作在社会监督下进行。对违规考试、抢夺生源、举办相关培训班、乱收费等行为,保持高压态势,严肃纪律,严格查处。



Northwestern Chinese City Counts Cost of Major Water Pollution Scandal – Caixin Lanzhou Veolia officials have admitted that the results publicized on April 10 came from a sample taken on April 2. Assuming the benzene leak began on April 2, the people of Lanzhou unknowingly drank benzene-contaminated water for nine days. Lanzhou Veolia statements have varied throughout the course of the episode.

They’ve Made Designer Monkeys with Genome Editing—Are Humans Next? | MIT Technology Review Until recently, Kunming, capital of China’s southwestern Yunnan province, was known mostly for its palm trees, its blue skies, its laid-back vibe, and a steady stream of foreign backpackers bound for nearby mountains and scenic gorges. But Kunming’s reputation as a provincial backwater is rapidly changing. On a plot of land on the outskirts of the city—wilderness 10 years ago, and today home to a genomic research facility—scientists have performed a provocative experiment. They have created a pair of macaque monkeys with precise genetic mutations.



Tainted Food in China Cited in Cyclist’s Failed Doping Test – – The International Cycling Union, known by its French initials U.C.I., said Wednesday that Mr. Rogers’s disqualification in that race would stand but that any further sanctions would be dropped as “there was a significant probability that the presence of clenbuterol may have resulted from the consumption of contaminated meat from China.”

湖南衡阳再曝镉含量超标大米:最高超国标21倍-搜狐财经 another batch of Cadmium contaminated rice in Hunan. just don’t eat rice from Hunan // 4月24日,国际环保组织绿色和平发布报告称,湖南省衡阳市衡东工业园(大埔片)周围稻谷、稻田土壤及地表水样本的重金属超标严重。其中,超标最严重的稻米样本中的镉含量超过国家标准近21倍。



强推京津冀一体化_杂志频道_财新网 Caixin on the renewed efforts towards “Beijing-Tianjin-Hebei Integration”…but there are reasons this has made little progress since first mooted ten years ago // 停滞多年的京津冀一体化再度升温。与以往不同的是,此次由最高决策层推动,相关规划由国家部委牵头,超越了此前三地政府层面的推动。

北京通州12.6万平方米自住房网上申购 限价1万_房产_腾讯网 126,000 sq m of subsidized housing to hit the market in Beijing’s Tongzhou, at 10,000 rmb/m, qualified buyers can apply to purchase online over the next 30 days…huge demand for these types of subsidized homes



A Chinese Novelist Goes Global – Scene Asia – WSJ At its heart, “Decoded,” rendered in lyrical prose and beautifully translated by Olivia Milburn, is about the fragile line between insanity and genius. Mr. Mai spoke to the Journal about censorship, his family struggles during the Cultural Revolution and dealing with rejection as a writer. Edited excerpts: // the book on Amazon 

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