"Sinocism is the Presidential Daily Brief for China hands"- Evan Osnos, New Yorker Correspondent and National Book Award Winner
Today’s Links:
THE ESSENTIAL EIGHT
As Chinese Leader Takes On Graft, Relatives Are Said to Shed Investments – NYTimes As President Xi Jinping of China prepares to tackle what may be the biggest cases of official corruption in more than six decades of Communist Party rule, new evidence suggests that he has been pushing his own family to sell hundreds of millions of dollars in investments, reducing his own political vulnerability.
Asia Unbound » Podcast: A Conversation with Evan Medeiros Asia Unbound is proud to announce a new podcast series. Our first guest is Special Advisor to the President and Senior Director for Asian Affairs at the National Security Council Evan Medeiros.
China Sends Top Diplomat To Begin Talks With Vietnam – NYTimes.com The official, Yang Jiechi, will meet with Deputy Prime Minister Pham Binh Minh of Vietnam in the first high-level discussions between the two countries since early May, when sea vessels from the two sides rammed each other near the installation. Mr. Yang, a state councilor with a foreign policy portfolio, is known as a blunt promoter of China’s expansion in the South China Sea, and he is unlikely to offer concessions or a breakthrough in the tense situation, said diplomats here, who declined to be named because of the sensitivity of the issue.
Related: China, Trying to Bolster Its Claims, Plants Islands in Disputed Waters – NYTimes.com “It’s changing the status quo,” said Carlyle A. Thayer, an emeritus professor of politics at the University of New South Wales in Australia. “It can only raise tensions.” Since January, China has been building three or four islands, projected to be 20 to 40 acres each, one Western official said. He added that there appeared to be at least one installation intended for military use, and that the new islands could be used for resupplying ships, including Chinese maritime patrol vessels.
CCTV Executives May Have Crossed a Fuzzy Line – Caixin The blurry boundary that separates advertising offices and content production at China’s powerful broadcaster CCTV may have encouraged racketeering by a group of top executives. The racket of undisclosed proportions is now at the center of an anti-corruption investigation targeting several executives including Guo Zhenxi, director of the state-owned TV network’s finance and economics channel CCTV2, and Tan Liwu, one of the channel’s producers.
Related: 郭振玺朋友圈被指分红黑两系 任总监8年捞20亿-搜狐财经 [UPDATE–This article has been deleted from mainland sites, is still available here on Sina HK] more on the CCTV-Guo Zhenxi corruption case, including one report that he controlled several companies through which companies would pay “protection fees” to avoid being the subject of critical CCTV reports, and that Guo personally made at least 2B RMB from this protection racket…No way to confirm, but if even 1/10 true Tony Soprano would have been proud, and jealous // 有报道称，郭振玺实际掌控着十几家公关公司。
Related: Duowei on some of the rumors about the CCTV case// 传央视女主播欧阳智薇涉郭振玺案被带走_中国_
Chinese rights lawyers warn of crackdown after arrest of Pu Zhiqiang | World news | theguardian.com Chinese rights lawyers have warned that they are under mounting pressure, with the formal arrest of one of China’s best-known advocates, Pu Zhiqiang, and multiple detentions. One bleak joke doing the rounds is that “even lawyers’ lawyers need lawyers” these days. Advocate Liu Weiguo posted a poem online which begins: “If I am arrested one day/Friends, fellow lawyers/You must/Must/Go public, take a stand and make a fuss.”
Related: Mainland China code seeks to muzzle lawyers who publicise cases through social media | South China Morning Post Mainland lawyers are angry about a new code being drafted by the national bar association that restricts what they can say online. The code urges lawyers to exercise extreme caution when commenting about cases on the internet and bans them from revealing case information before court rulings. An association spokesman confirmed yesterday that such a draft was being considered but would not give details.
Concerns in China over alleged secret trial of Uighur scholar Ilham Tohti | World news | The Guardian Lawyer representing academic cites unconfirmed reports of ‘heavy’ sentencing after arrest and charges related to separatism // grim
Caixin-Qingdao Metals Trader Facing Probe over Collateral ‘Got 15 Bln Yuan in Loans’ – Several bank sources said the China Banking Regulatory Commission is collecting information about how much Dezheng Resources Holding Co. Ltd. and its subsidiaries have borrowed. Its preliminary findings are that banks lent the company and its subsidiaries a total of 14.8 billion yuan. Banks were eager to lend to Dezheng Resources and its subsidiaries in recent years. “We all do business with Dezheng companies,” one employee of the finance department of a large bank’s Qingdao branch said. Banks are apparently worried that the borrowing total the CBRC arrived at may only be the beginning. “The figure only shows the loans in Qingdao, and banks are examining whether there are other loans to Dezheng Resources and its subsidiaries across the country,” an employee of another bank said.
Related: Citic Resources Can’t Locate All Its Metals Held at Qingdao Port – Bloomberg Citic sought a court order to find its copper and alumina held at the port and the court was unable to locate about 123,446 metric tons of its alumina, Citic Resources said in statement to the Hong Kong stock exchange. The company holds title documents to 223,270 metric tons of alumina and 7,486 metric tons of copper it has stored at the port, it said.
China’s Yuan Fixings Shift Seen as a Boon for Bulls – Bloomberg The most reliable emerging-market currency bet of the past nine years is making a comeback on signs China is finished engineering the sharpest-ever decline in the yuan.
BUSINESS, ECONOMY AND TRADE
China introduces ratings on local govt bonds-Caijing Credit ratings will be introduced to a local government bond-issuance pilot, in a move to enhance risk prevention, the Ministry of Finance announced on Friday. The ratings will come in nine levels, which are AAA, AA, A, BBB, BB, B, CCC, CC and C. The AAA rating indicates an extremely low default risk, with C suggesting inability to repay debts, according to a document released by the ministry.
央行将创设基础货币投放工具PSL_财经频道_一财网 CBN says the PBoC to launch a new tool–Pledged Supplementary Lending // 据《第一财经日报》了解，
多地“抢人救楼市” 户籍改革或为分类调控助力_财经频道_一财网 some cities starting to use hukou reform as way to save real estate market, by allowing non-locals a pathway to hukou through property ownership // 如 今楼市已进入一个“敏感期”，
False Start for New Bonds as Regulators Fiddle – Caixin The central bank has put the brakes on a proposed credit securitization bond product that had been approved by the banking regulator and was poised to debut on a bourse. The decision by the People’s Bank of China to block the securitization bonds, at least temporarily, underscores friction among regulators over rules for the country’s emerging credit securitization market. The central bank jointly oversees the market, which is in a pilot phase, with the China Banking Regulatory Commission (CBRC), which had approved the asset securitization plan.
Pharmaceuticals in China: So long, easy money | The Economist MULTINATIONAL drug companies, now looking forward to a sustained boom in the Chinese market, should instead be bracing themselves for a collapse in profits over the next few years. So concludes a new report by Bain & Company, an American management consultant.
SeekPanda is Primed to Upend Traditional Interpretation in China | TechNode SeekPanda was originally conceived as a means of helping business travelers by taking care of many of their needs before they arrive in China. After realizing this was not a scalable business model, according to Kohn, the idea morphed into a marketplace where bilingual Chinese and English speakers could sell their services. “The inspiration of the idea was let’s just connect these two populations… the way Airbnb connects different populations with apartments,” Conger said.
China Blocks European Shipping Pact, Sending Maersk Tumbling – Bloomberg The Chinese Ministry of Commerce said on its website that the proposed P3 vessel-pooling accord, which also included Mediterranean Shipping Co. and CMA CGM SA, would “restrict competition” on the busiest Asia-Europe routes.
Citic Adds Investors Including Tencent, Och-Ziff to Share Sale – Bloomberg The company, which agreed last month to sell $5.1 billion of shares, will offer an additional $690 million of stock to ten investors, according to a Hong Kong exchange filing yesterday. Tencent, Asia’s largest Internet company, and Och-Ziff Capital Management Group are each purchasing $50 million of stock at HK$13.48 a share, according to the statement.
老赖曝光网创办者：网站能成为法律的补充_深度_新京报网 Ni
10省份公布今年工资指导线 多地涨幅下调_新闻_腾讯网 10 provinces release wage increase guidelines, many suggest lower increases than last year
China’s corporate debt: Big, but not the biggest | The Economist IT IS one of those superlatives that China could most certainly do without: the world’s biggest market for corporate debt. So concluded Standard & Poor’s, the global ratings agency, in a report published on Monday that garnered attention throughout major financial news media—the latest piece of evidence that China’s debt levels have scaled dangerous heights. But though the S&P report shines light on a murky problem, the headlines appear to have got ahead of the truth. A closer look at the data shows that Chinese companies, while on track to eventually take the crown as the world’s biggest debtors, are still a good distance shy of it for now. The report’s $14.2 trillion figure for Chinese corporate debt is an overestimate, perhaps by as much as 25%.
POLITICS AND LAW
Google block set to continue – Global Times Chinese tech blogger William Long told the Global Times Monday that the block would not affect Google’s market share, as most users would use a type of virtual private network (VPN) to access the blocked sites, and would not shift to a domestic search engine such as Baidu. This is because people like to stick to websites they usually use. The block on Google has spurred the VPN market in China. An anonymous Chongqing-based VPN retailer said he is dealing with more purchasing inquiries and more deals have been closed in the past week. Such a VPN can cost 98 yuan ($15.7) monthly for a single user.
How Corrupt Is the U.S.? Just Watch ‘House of Cards,’ China Party Arm Says – China Real Time Report – WSJ A well-known private-equity investor, China eCapital Corp. Chief Executive Wang Ran, responded to the “House of Cards” kerfuffle with a pointed comment on his Weibo account: “Another notable difference between the two countries—only one of them can make and screen this type of TV show.”
专家解析：”红白事”怎样办算是”大操大办”?——要闻——
民主生活会一年盘点：常有常委边哭边批评_网易新闻中心 tak
China’s State Council checks petitions – Xinhua From the end of June to the middle of July, the State Bureau for Letters and Calls, the Ministry of Human Resources and Social Security, the Ministry of Land and Resources, the Ministry of Housing and Urban-Rural Development, the Ministry of Civil Affairs and the Legislative Affairs Office of the State Council will establish five groups to check how complaints are dealt with in 15 provincial regions and 10 ministerial departments.
CPC needs new recruitment rules to deter opportunists from exploiting system – Global Times According to official statistics, the number of CPC members has been soaring since the 1990s, with an annual increase of more than 2 million new members. So far, the overall number of CPC members has surpassed 8.6 million, which makes the CPC undoubtedly the largest political party in the world. This gives rise to a series of brand-new challenges: how to manage this colossal team of CPC members, how to improve the structure of this team, how to maintain reasonable size of party branches at different levels, how to stimulate Party members to set a better, pioneering model, and how to build a dynamic exit mechanism for Party membership.
FOREIGN AND DEFENSE AFFAIRS
China’s Information Warfare Campaign and the South China Sea: Bring It On! | The Diplomat China should not be permitted to pursue information warfare in order to have it both ways – circulating a position paper to the UN in order to demonstrate the serious nature of its dispute with Vietnam and rejecting UN arbitration. The United States and Australia should press for a UN Security Council debate. Japan and other maritime powers with a stake in stability in the South China Sea should join in. China should be forced into the uncomfortable position of opposing any Security Council debate and thus scuttling its attempt to use UN for propaganda purposes, or to veto any resolution arising from a debate in the Security Council critical of China’s action in the South China Sea.
Xi stresses CPC’s absolute leadership of air force – Xinhua President Xi Jinping stressed the Communist Party of China (CPC)’s absolute leadership of the air force at the 12th Air Force Party Congress on Tuesday in Beijing. Xi said he has every confidence in the prospects for the air force to shoulder its historical responsibility and build a strong force that integrates aviation and space power, strike and defense capabilities essential to national security and development.// 习近平：
China Dominates US Naval Strategy Discussion | Defense News | defensenews.com “The rise of China as a challenger is the most significant strategic challenge for the US,” Hal Brands, a historian at Duke University, told a “Current Strategy Forum” audience Tuesday at the Naval War College here. “The US is not devoting enough resources to addressing China’s rise,” claimed Aaron Friedberg, a professor of international affairs at Princeton University. “We need to develop a credible military strategy for countering China,” Friedberg continued. “Our ability to come to the aid of our allies depends on having a plausible strategy in which our friends and allies believe.”
Greenert: Don’t ‘Unnecessarily Antagonize’ China | USNI News Open discussion of how U.S. forces could deter Chinese ships and aircraft could unnecessarily antagonize one of America’s largest trading partners, the Navy’s top admiral said during an address at the U.S. Naval War College on Tuesday. “If you talk about it openly, you cross the line and unnecessarily antagonize,” said Chief of Naval Operations (CNO) Adm. Jonathan Greenert during the Current Strategy Forum in Newport, R.I. in response to an audience question. “You probably have a sense about how much we trade with that country, it’s astounding. “
Is this a model of China’s next aircraft carrier? | Popular Science The strongest possible caveat must be added that this model could be unofficial, including even the work of Chinese military enthusiasts. However, Chinese military projects, like the J-31 stealth fighter, PLZ-05 self propelled howitzer, Lijian drone and YJ-12 supersonic anti-ship missile, have a history of impromptu debuts as models at arms shows and military exhibitions. In addition, the presence of PLA officers at the exhibit’s launch is notable.
New Chinese Threats to U.S. Space Systems Worry Officials-National Defense There is strong evidence that the anti-satellite weapon China tested in May 2013 went higher than low-Earth orbit, said Charles Miller, president of NextGen Space LLC, a space and public policy consulting group. If China continues to make strides and develops weapons that reach farther, it could one day threaten key satellites in geosynchronous orbit. The damage caused by an anti-satellite missile is two-fold: Not only does it destroy its target, but it also causes a massive ripple affect with debris from the collision striking other satellites. China’s 2007 test created a large debris field, which could damage other spacecraft, said Gen. William Shelton, commander of Air Force Space Command.
China, Britain issue joint statement, pledge to forward cooperation – Xinhua The document, issued after the annual meeting between visiting Chinese Premier Li Keqiang and his British counterpart David Cameron, underlined that since the establishment of the China-Britain comprehensive strategic partnership a decade ago, bilateral relations have made significant progress. China and Britain agreed that their comprehensive strategic partnership has become an indispensable element of each other’s foreign policy agendas, the document said. China and Britain stand ready to expand economic and trade cooperation and promote development in each other’s markets. They renewed their commitment to the joint target of 100 billion U.S. dollars by 2015.
Queen welcomes Chinese premier to Windsor Castle – video | UK news | theguardian.com Both Li and his wife greet Her Majesty in English
UK media hype over visit unprofessional – Global Times Editorial British public opinion remains prejudiced against China and highly expects to embrace an opportunity to prove that it is superior compared with the emerging nation. Nevertheless, engaging in economic cooperation with Beijing is in its practical interests. Whenever Chinese and British leaders meet with each other, the British media habitually hypes China’s human rights and calls on the British government not to sell its soul in exchange for Beijing’s trade pacts. Britain’s national strength cannot be placed in the same rank as China now, a truth difficult to accept for some Britons who want to stress their nobility. If they refuse to recognize this fact and find fault with China on purpose, even at the cost of bilateral relations, they will not find any mental comfort. Chinese society is more and more relaxed in dealing with Sino-UK ties, while the British could not be pettier.
China’s Li Calls Woman Journalist to Show Rights Respect – Bloomberg At a joint news conference with U.K. Prime Minister David Cameron, Li appeared impressed when the first question from the British side was asked, in Mandarin, by the BBC’s China Editor, Carrie Gracie. “It is prescribed in China’s constitution that human rights must be respected and protected,” Li replied, speaking through a translator, before turning to the side of the room where Chinese reporters were. “To show respect for women, and also to show respect for human rights, I would also like to give this opportunity to raise questions to a female journalist.” He later gave a second female Chinese reporter the chance to put a question.
Deals worth billions signal new era for UK-China relations – Telegraph Together with David Cameron, Mr Li presided over the signing of £14bn of business deals in London. Meanwhile, Britain and China set a target of boosting bilateral trade to $100bn (£60bn) by the end of next year.
China Keeps a Close Eye on Oil Interests in Iraq – NYTimes.com The C.N.P.C. field that is the farthest north, Al Ahdab, is located more than 110 miles southeast of Baghdad. Three other fields in which C.N.P.C. also operates — Rumaila, Halfaya and West Qurna 1 — are located farther south, near the Iraq-Iran border. One Chinese state-owned energy company, Sinopec, does have a stake in an oil field in the north, but that field is in the autonomous region of Iraqi Kurdistan, which is protected by formidable ethnic Kurdish militias that have vowed to defend their mountainous home region against ISIS.
China Seeks Shorter, ‘More Portly’ Troops With Brainpower – Bloomberg Male recruits can now be 1.6 meters tall (5 foot 2 inches), down from 1.62 meters, while the minimum height for women will reduced by the same margin to 1.58 meters, the paper said, citing the Ministry of Defense’s recruitment office. The upper weight limit for male enlistees was also relaxed to “allow more portly young men” into the military, it said. Eyesight standards were also lowered because nearly 70 percent of high school and university students in China are short-sighted, it said. Mental illnesses including schizophrenia, dissociative disorder, depression and bipolar disorder has also been removed from a list of conditions barring candidates from enlisting, according to the paper.
The Chosun Ilbo (English Edition) – Japan Inches Closer to Severing All Ties with Korea The Kono Statement forms one of the two pillars that have maintained a fragile working relationship between Seoul and Tokyo over the last two decades. The other pillar is a statement in 1995 by then-Prime Minister Tomiichi Murayama who apologized for Japan’s colonial rule over the Korean Peninsula from 1910 to 1945. The Abe administration has attempted to undermine the apology since it came to power in December 2012, and these efforts continue by fair means or foul.
HONG KONG, MACAO AND TAIWAN
Macau Tightens Chinese Visitor Stays in Visa-Abuse Crackdown – Bloomberg Transit visitors from China who don’t depart for another destination within the five days will be in violation of the new rules, effective July 1, and will be penalized upon their next visit, the city’s Public Security Police Force said in a statement yesterday. Repeat violations will result in denial of entry, according to the statement.
TECH AND MEDIA
Alibaba has a new way of explaining its controversial Alipay spinoff – Quartz May 2014: Alibaba filed with the US regulator for an IPO. The first draft of the prospectus argues that this spinoff was “pursuant to regulations issued by the PBOC.” However, in an oddly worded sentence, it also seems to acknowledge that those regulations never materialized, saying, “At the time when the licenses were first issued, no such additional regulations governing foreign-owned payment companies had been put in place.” June 2014: Alibaba filed an updated prospectus, tweaking some of the language concerning Alipay. The PBoC still hasn’t issued any separate regulations governing foreign-funded payment platforms.
‘Am I a Good Person?’ Documentary Chronicles Life With Alibaba’s Jack Ma – China Real Time Report – WSJ “Crocodile in the Yangtze” tells the story of how Alibaba founder Jack Ma transformed a 17-person startup working out of a small apartment to China’s first global Internet company, with 24,000 employees. Drawing on 200 hours of archival footage, the slightly hagiographic film covers 1995 to 2009, when Mr. Erisman—who had been the company’s vice president in charge of international marketing and corporate affairs—left the company to pursue other ventures, including making the film.
Alibaba Partners Include Onetime Top Cop – China Real Time Report – WSJ When Alibaba Group Holding Ltd. disclosed on Monday the names of the 27 partners that control the e-commerce giant’s board of directors, one of the most unlikely names on the list was Shao Xiaofeng. Mr. Shao is a 48-year-old former cop who gained a small measure of fame in China for cracking a brutal murder case more than a decade ago. Though listed as the company’s chief risk officer, he also as of last year held another essential post, according to one government website: secretary of Alibaba’s Communist Party Committee.
国家版权局：“剑网2014”重点打击非法转载传统媒体作品-
央视曝光“危险的WiFi” 无线上网存巨大安全隐患-财经频道-新华网 CCTV investigates free WiFi, declares it a security risk
GData-Chinese Android smartphone shipped with spyware This makes it possible to retrieve personal data, intercept calls and online banking data, read emails and text messages or control the camera and microphone remotely. The affected model “N9500” is produced by the Chinese manufacturer Star and looks very similar to a smartphone from a well-known manufacturer. It is not possible to remove the manipulated app and the spyware since they are integrated into the firmware. Large online retailers are still selling the Android device at prices ranging from 130 to 165 euros and distributing it across Europe.
SOCIETY, ART, SPORTS, CULTURE AND HISTORY
Nike’s Chinese star finally holes out | China Sports Insider This is exactly what the PGA Tour – and Nike – would have hoped for when it launched its China Series earlier this year. 27-year-old Shanxi native, who signed with Nike almost exactly a year ago alongside 19-year-old Li Haotong, finally won a tournament after a succession of near misses. He now leads the overall standings in the race to win one of five spots for next year’s US-based Web.com Tour, itself the feeder of the PGA Tour.
2014 China Tour – PGA Tour China Series-PGA Tour China Series
Golf in China: Birdies, bribes and bulldozers | The Economist Dan Washburn, a journalist who lived in China for a decade, uses golf as a barometer of change. Under Mao Zedong the sport was banned, like so many things that were decadent and fun. When the country began to open up under Deng Xiaoping, a few golf courses were allowed, to entertain foreign investors. As China grew richer, more and more locals wanted to try the sport. Suddenly more golf courses were being built in China than anywhere else, despite the fact that their construction was technically illegal.//The book on Amazon
randian – History in the Making II: Sketches for Iconic Paintings This exhibition, composed of sketches of famous paintings, presents the process in which the “Red Classics” oil paintings came into being from 1950s to the late 1970s
李银河：同性恋为何不敢出柜_共识网 Li Yinhe on why many Chinese gays do not dare come out of the closet// 从我早年对同性恋所做的调查中可以看到，
《我的文革纪事》之：八一八，结束与开始_真话-网易新闻客户端
AllSet Learning Pinyin on the App Store on iTunes If you’re studying Mandarin Chinese, this is the pinyin chart for you. It’s the only pinyin chart for the iPad to make full use of zooming and panning controls to make pinyin study easy and enjoyable. The interface is simple, clean, and ad-free. Every pinyin syllable has audio associated, and toggling between the four different tones of Mandarin
ENERGY, ENVIRONMENT, SCIENCE AND HEALTH
China Exclusive: Climate change thawing Tibet plateau’s frozen earth – Xinhua The volume of frozen earth on the plateau has decreased from 1.5 million to 1.26 million square km, researchers with the Chinese Academy of Sciences (CAS) found after decades of study using remote sensing and satellite monitoring. The thawing of the frozen earth is an immediate result of global warming, as the Qinghai-Tibet Plateau, at an average altitude of 4,500 meters, is extremely vulnerable to climate change, said a research paper published by the CAS Institute of Tibetan Plateau Research and seen by Xinhua on Monday.
The changing face of growing old in China – FT.com $$ Though there is a shortage of hospital beds for Chinese pensioners needing long-term care or medium-term rehabilitation, retirement homes that provide significant medical services have unexpectedly proved less popular than facilities where seniors live independently, and receive little nursing. Foreign-invested eldercare providers say they have run up against barriers, from culture to cost, that have made it hard to fill even a few hundred beds in a city the size and wealth of Shanghai, with more than 3.5m people of retirement age.
BEIJING
北京幼升小严审非京籍五证 民办小学称招不到人-财经网 新华网北京6月17日电（
东城派位7成进优质校 小升初就近入学比例88.4%-教育频道-新华网 昨天上午，
细数即将搬离北京的行业和企业_真话 “Strategy Thinktank” tries to account for all the Beijing companies and industries being moved out of Beijing as part of the Beijing-Tianjin-Hebei integration plan. This time things are happening, unlike the talk of the previous ten years // 京津冀一体化这次算彻底火了。虽然大家都知道，
老北京歇后语的来源 on the “xie houyu” of Beijing hua // 北京话有大量歇后语，从来源分，
北京一夜惊雷6790次破纪录_头版_新京报电子报 been a stormy June in Beijing, and the early hours of the 17th saw 6790 thunder claps, a record says The Beijing News…Beijing certainly needs the water // 17日凌晨降雨创多项纪录；