The Sinocism China Newsletter 09.11.13

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

Just links today:


Japan could anger China by putting government workers on isles | Reuters A year ago on Wednesday, the Japanese government bought three of the isles from a private owner, inflaming anger in China where there were big anti-Japan protests over the purchase…Chief Cabinet Secretary Yoshihide Suga, speaking on the eve of the sensitive anniversary, said it was “extremely regrettable” that Chinese government ships had repeatedly entered what he described as Japan’s territorial waters…Asked if Japan might station government workers on the islands, Suga said: “That is one option”. // and just before the one year “nationalization” September 11 and September 18 Mukden Incident anniversaries. unhelpful. If they do land people on the islands China would have to respond, at least with their own landing if not more

Related: Japan must cease islands provocations, China warns|Politics| Beijing vowed “zero tolerance” on Tuesday for any escalation by Japan that infringes on China’s territorial sovereignty over the Diaoyu Islands in the East China Sea. The remarks by a Foreign Ministry spokesman came in response to comments by Japanese Chief Cabinet Secretary Yoshihide Suga, who said earlier on Tuesday that stationing government personnel on the islands was one option being considered by Tokyo to assert its territorial claim.

Related: China Voice: China-Japan ties cooled on territorial row anniversary – Xinhua A year on from Japan’s announcement of its plans to “nationalize” China’s Diaoyu Islands, political and economic ties between the two countries have weakened, and they will remain weak if Japan continues its stance. Since its “purchase” of the islands despite Beijing’s warnings on Sept. 10, 2012, the Japanese government has never stopped its provocative moves and denial of history, leading to grave difficulties in bilateral relations. Now, with Tokyo having won the right to host the 2020 Olympics, an event that advocates peace and harmony, it is the right time for the Japanese government to adjust its attitude on its war-time history and break the stalemate by taking concrete action to win back its neighbors’ trust.

Related: One year on, China’s Diaoyu Islands patrol mission continues – Xinhua Looking back the law enforcement operations regarding the Diaoyu Islands in the past year, the Chinese government has made historical breakthroughs in its regular patrols by ships and planes:

China-Style Obamacare for 1 Billion People Saves Toddler – Bloomberg As U.S. President Barack Obama struggles to implement reforms that will extend health coverage to more of the estimated 50 million uninsured Americans, China’s 1.4 billion people are experiencing a revolution in care. Chinese leaders are betting that better, more affordable medical treatment will help defuse social tension, as well as boosting economic growth by freeing up savings set aside for possible health crises. // Xi has been very clear about focusing on “people’s livelihood issues” and health care is one of the top ones…Glaxo crackdown could be looked at in this perspective. Who beside GSK execs, shareholders, other pharma firms and doctors is unhappy to see the cost of medical care forced down by the government? But unless Beijing mandates much better pay for doctors the corruption is not going away…

Related: 甘李药业胰岛素被曝为IPO去年涉嫌行贿近3亿_证券时报网 domestic insulin firm Gan & Lee paid 300 million RMB in bribes last year to bulk up business to prepare for IPO, reports the 21st century herald // 国内胰岛素领域最负盛名的企业甘李药业卷入商业贿赂丑闻。有知情人士向记者爆料称,甘李药业2012年业绩突飞猛进,在这背后,是公司总额近3亿元商业贿赂的“功劳”。 “2012年,甘李新增用药患者数为50万人。现在从每月收回的回访卡来看,甘李药业已经超过了外企,我们内部预估市场份额为8%左右。虽然总量不大,但增速非常快。”9月9日,甘李药业医药代表吴德江(化名)向记者介绍。甘李药业是国内目前唯一能够生产第三代胰岛素的企业,其主要竞争对手是诺和诺德、礼来和赛诺菲三家外资企业。正因如此,甘李药业一直被奉为民族制药业的骄傲。

China Shadow Banking Returns as Growth Rebound Adds Risks – Bloomberg “If credit growth picks up persistently from here, China’s current growth recovery may well last a bit longer and go a bit further,” said Yao Wei, China economist at Societe Generale in Hong Kong. “However, that only adds to the downside risk afterwards, as the leverage of Chinese corporates and local governments keeps rising from the already alarmingly high level.” M2 money supply growth accelerated to 14.7 percent, the fastest in three months….A government-engineered cash squeeze in June sent money-market interest rates to record highs and helped curb shadow banking, reducing longer-term dangers while adding to forces slowing economic growth. Now it appears that the crunch in liquidity and credit is over, Wang Tao, chief China economist at UBS in Hong Kong, said yesterday.

Related: China Stocks Hit Bottom as Consumers to Spur Rally, Allianz Says – Bloomberg The four-year low that the Shanghai Composite index reached in June marked a bottom for Chinese shares and the rally will continue, said Raymond Chan, Allianz Global Investors’ chief investment officer for Asia Pacific. “I don’t see much downside” in Chinese stocks, Chan, who helps manage $409 billion at Allianz, said in an interview at Bloomberg’s headquarters in New York yesterday. “China can continue to deliver the growth, maybe a slower growth, but it’s not going to crash.” //time for some of the more vocal bears to walk back their premature summer triumphalism? or is the answer “we were not wrong or early, and now will be even more right when the bigger, inevitable crash hits?”

Related: China is growing faster, again, in the same old ways | FT Alphaville More generally, overall credit is still growing at a 20% y/y rate which should sustain strong investment spending for a while. The omens for the short term are good, but at the cost of making the economy’s structural problems worse.

Related: China New Yuan Loans at CNY711Bln,Social Financing Jumps-Caijing Chinese financial institutions extended 711.3 billion yuan in new loans in Augsut, higher than the previous month’s 699.9 billion yuan, central bank data showed on Tuesday. Total social financing in the month stood at 1.57 trillion yuan, up 750 billion from the previous month—which saw the lowest level in 21 months — and 321 billion more than that a year ago, the People’s Bank of China said in a statement on its website. M2, the broad measure of money supply, grew 14.7 percent last month from a year earlier, the bank said. That compares with a year-on-year growth of 14.5 percent in July and 13.5 percent in the same month last year.

Related: Chinese rebound built on stimulus money – The current pick-up in growth is also partly a delayed consequence of a surge in credit issuance at the start of the year. But after a liquidity squeeze in June, credit growth has started to slow. “A continued slowdown would bolster our view that the economic rebound will peter out over the next few months,” Mark Williams, an analyst with Capital Economics, wrote in a recent note. Still, improved sentiment can provide a tangible boost to the economy. Variations of the so-called Keqiang index, named for Premier Li’s fondness for supposedly more reliable economic indicators, have showed a surge in electricity generation and railway freight.

Apple Offers New IPhones For China’s Two Smaller Carrers – Bloomberg The lower cost iPhone 5C that can run on the networks of China Unicom and China Telecom will be priced between 4,488 yuan ($733) and 5,288 yuan, Apple said on its website. Xiaomi’s newest handset costs 1,999 yuan. Lenovo’s flagship K900 IdeaPhone sells for 3,299 yuan. The iPhone 5S for both carriers will cost between 5,288 yuan and 6,888 yuan, according to the site. /$735+ for iPhone 5c, $867+ for 5s in China

Related: China Mobile may postpone iPhone launch to complete TDD-LTE network According to KGI analyst Ming-Chi Kuo, China Mobile will introduce Apple’s iPhone to its 700 million subscribers by the end of the year, but the world’s largest telecom first needs to finish rolling out its TDD-LTE network, a task that could delay the phone’s launch until November.

Related: Cheap iPhone Might Not Be Cheap Enough in China – China Real Time Report – WSJ this WSJ piece originally assumed the 5c would be about 3000 RMB..some big booboos by industry and sell side analysts on what Apple would charge in China..though the biggest booboo may turn out to be Apple’s // Likening the challenge of selling a cheaper iPhone to one he currently faces selling Samsung’s middle-range handsets, Mr. Tao also said he didn’t think the iPhone 5c would fly off the shelves as quick as cheaper Chinese made phones. “Xiaomi phones are 1500 yuan. They’re cheap and they have about the same hardware as more expensive Samsung phones,” he said, referring to phones made by Xiaomi Inc., a popular vendor that sells high-spec phones close to cost. “If the inside is the same, but [the phone is] 1,000 yuan cheaper, people will choose it,” he said.

Beijing reveals annual vehicle emissions load – Xinhua The capital currently has 5.35 million vehicles, which consume over 4 million tons of gasoline and more than 2 million tons of diesel annually, said Li Kunsheng, an official in charge of vehicle emission management with the Beijing Municipal Environmental Protection Bureau. The annual vehicle emission load is about 900,000 tons and contains 77,000 tons of hydrocarbons and over 80,000 tons of nitrogen oxides, according to Li. “Vehicle emissions have been proven to contain over 100 kinds of carcinogenic substances. Even worse, the emissions are discharged at low altitudes, which may affect people’s health more directly,” Li said…A report by a research team from the Chinese Academy of Sciences revealed that vehicle exhaust has beaten industrial emission to become Beijing’s top sources of air pollution, contributing to 22.2 percent of PM 2.5 particles.

Related: Beijing Begins Worst Traffic Month – Economic Observer too many people, roads too narrow, public transportation still under-built…imagine what it would be like without the 2008 Olympics infrastructure building spree? That was hugely positive for Beijing, but still not nearly enough // As Beijing enters what will likely be its busiest month for traffic in history, a number of new congestion alleviation initiatives are being put to the test. But in spite of massive spending on these initiatives, car ownership and the overall population are growing faster than infrastructure can keep up with.

Crackdown On Bloggers Is Mounted By China – good piece by Chris Buckley, quotes yours truly // China has experienced deep chills on Internet opinion before. In 2011, the Communist Party began a crackdown on dissent, fearful that the uprisings across the Arab world would inspire protests in China. In July of that year, however, the deadly crash of a high-speed train prompted an outpouring of anger on the Internet that eroded the controls. “I don’t think these intimidation tactics will work,” said Hung Huang, a magazine publisher with millions of followers on Weibo. “People will shut up for a month. Then they’ll come back. Maybe not the same people, but another group of people.” // that has been the pattern in the past. This time different?

Related: Closely Grasp the Leadership Power, Management Power and Discourse Power in Ideological Work | China Copyright and Mediatranslation of recent Red Flag article // Strengthen online social management according to the law. Strengthen the management of new technologies and new applications, all sorts of forums, blogs, microblogs, micromessaging services, search engines mobile telephone newspapers, mobile news clients and other businesses that have news, public opinion and social mobilization functions, must be brought under licensing management. We must, through strengthening online topical propaganda, improve online criticism work, optimize the online environment, and forge an online positive public opinion atmosphere; through strengthening Internet propaganda management organ construction and team construction, forge systems and mechanisms where the various departments mutually cooperate, and all areas of society vigorously participate, and constitute a nationwide “one network” management structure; through deeply launching online public opinion struggles and tightly preventing and restraining online attacks and acts of infiltration, organize forces to refute mistaken ideologies and viewpoints.–(The author is a CCP Hebei Provincial Committee Standing Committee Member and Director of the Propaganda Department)

What Are Chinese Attitudes Toward a U.S. Strike in Syria? | ChinaFile Conversation Like China—the Arab League opposes the U.S.’s proposed military action in Syria, and both favor a political solution to the conflict, arbitrated by the United Nations. China, of course has a lot of business at stake. Middle Eastern oil accounts for about 60 percent of China’s oil imports. Syria itself is one of China’s more “modest” regional suppliers, and although China is one of Syria’s foremost trading partners, Syrian trade is a marginal component of Chinese GDP. It’s the conflict’s potential spillover into countries like Iran and Saudi Arabia—which Syrian President Bashar al-Assad appeared to warn against in his recent interview with French newspaper Le Figaro—that has made the U.S.’s proposed military offensive prescient for Beijing.

Related: 大国当自重 大国当作为 钟 声 《 人民日报 》 Zhong Sheng on Syria and responsibilities of a big power //叙利亚问题只能政治解决。中国的立场是鲜明的,行动也是务实有力的… 人类命运共同体意识亟须强化,理应体现在事关国际关系走向的重大行动中。大国当自重,大国当作为。

王岐山:公款购买节礼侵蚀党风和社会风气|王岐山|公款|党风_新浪新闻 Wang Qishan making it very clear that party members and SOEs should not use public funds to buy gifts for next week’s mid-autumn festival…have Beijing friends who used to make bank off of next week’s holiday, but this year very depressed, business down so much // 严禁利用公款“两节”送礼,整顿享乐主义、奢靡之风,中央三令五申。这一次,王岐山特别提到,享乐主义和奢靡之风传染性强,党员干部身上的不正之风影响到民风,社会上讲排场比阔气,要“面子”、不要“里子”的奢靡之风,也对党风产生不良影响。 “历览前贤国与家,成由勤俭败由奢。”王岐山说。他提出,狠抓党风建设,促进民风转变、移风易俗。Wang even quotes Li Shangyin to make his point…

Related: 天安门国庆摆花“瘦身” 政府机关不再摆放花坛_网易新闻中心 Even the flower displays for National Day are under siege from the austerity campaign…cut way back all over the country including in Tian’anmen square. Flower businesses been hurt at least as bad as F&B since the frugality campaign started…and whoever had the lucrative Beijing public flower contracts must be unhappy these days

Related: China’s baijiu, drink of generals, pushed to bargain bin | Reuters For decades, famed baijiu makers Kweichow Moutai Co Ltd and Wuliangye Yibin Co Ltd enjoyed fat profit margins that once dwarfed those of Apple Inc, helped by the Communist Party’s penchant for a brew that fuelled many a business deal and smoothed over countless egos. But at more than $300 a bottle, premium baijiu was also the perfect target for President Xi Jinping’s campaign against extravagance as his administration tries to assuage public anger over corruption and restore faith in the party. Last week, market leader Moutai reported its weakest first-half profit growth since 2001, and the company is set to post its slowest annual growth since it listed // guess my Xi Jiu speculation won’t be paying for kids’ college… 



China August Industrial Output Rises 10.4%, Exceeding Estimates – Bloomberg The advance in industrial production compared with the median estimate for 9.9 percent growth in a Bloomberg News survey of 45 economists and a 9.7 percent increase in July. Retail sales compared with the median projection for a 13.3 percent advance and a 13.2 percent gain the previous month.

China Premier Li Says To Promote Financial Reforms | MNI Li told business executives attending the summer World Economic Forum in the north eastern city of Dalian that the government will continue to push forward liberalisation of interest and currency rates. “We will continue to promote yuan’s convertibility under the capital account,” Li said. “Currently, we have developed offshore yuan business and we will have more choices.” “The progress of reform should match China’s economic strength, the extent of maturity of financial system and our regulatory capability,” he added. He said the government will consider making Switzerland an offshore yuan centre.

Govt Debt may Exceed 15t Yuan: Researcher-Caijing China’s government debt may exceed 15 trillion yuan ($2.45 trillion), said a government researcher, amid an ongoing audit of total borrowing. Zhao Quanhou, head of financial research at the Fiscal Science Research Center affiliated with the Ministry of Finance, suggested that the figure may even run up to 18 trillion yuan.

Banks Said to Be Preparing to Issue Preferred Shares – Caixin Many banks have been preparing to issue preferred shares, pending the approval of financial regulators including the China Securities Regulatory Commission, a source from Central Huijin Investment Ltd. says. As the controlling shareholder of the Big Four state-owned banks, Huijin reportedly has opposed the issuance of preferred stocks for fear of losing leverage in the banks. But the source said these reports are not true because Huijin can offset the impact by acquiring the preferred shares.

Analysis: German business confident as China shifts gears | Reuters “There’s a lot of competition from China, but thank God the Chinese are not as innovative as we are – they are known for copying things rather than bringing new developments onto the market, so they tend to be a step behind us,” said Sabine Herold, co-managing director at DELO Industrial Adhesives, based near Munich.



Migrant worker set off blast at Guilin school after child rejected | South China Morning Post A migrant worker set off an explosion in front of a primary school in the resort city of Guilin after the school rejected his child as a pupil, according to a source close to local police. The blast killed two people – including the father – and injured 44, including 22 primary-school children. Eleven of them were in serious condition in hospital yesterday.

INNER SANCTUM (20): Secretive advisers behind China’s key policy campaigns – AJW by The Asahi Shimbun Another person Xi often turns to for advice is Gen. Liu Yuan, according to a senior executive at a state-run publishing company. Liu is the son of Liu Shaoqi, who was China’s president from 1959 to 1968. Liu Yuan spent his early childhood in the area within Zhongnanhai, which was also Xi’s sphere of life.

“中石油窝案”续:业内传中油中泰董事长苏士峰涉案|中石油|中油中泰|苏士峰_21世纪网 21st Century herald reports another PetroChina exec is under investigation….PTR has a lot of execs, investigators could be busy for a very long time. no wonder ones above a certain level have been told to hand in their passports, and the head of SASAC has now visited with the firm twice in the last few days // 原中石油管道局局长、党委书记,中油中泰燃气投资集团有限公司董事长苏士峰已被相关部门带走。与此同时,消息人士还透露,天津燃气集团因卷入中石油腐败案,其高管也于上周被调查。

Taking SOEs Back to Their Roots – Caixin The recent corruption scandals all share a common trait: most misconduct involves asset acquisition. Some market manipulators are based at home but more operate from abroad. They appraise target assets higher than market value. The more cautious type profits from an acceptable margin of error in asset appraisal, but corrupt officials in the most recent cases had bigger appetites. They merely used the appraisal as a cover for stealing state money. The amount depends on the position of the officials. The extent to which regulation has failed is beyond imagination.  This is the grim reality of corruption in SOEs. Academic discussions on this problem have drifted far from reality. Some economists study the economic implication of SOE monopolies, but this is not an economic problem. SOEs have simply become interest groups’ channels for their profit. SOEs monopolize public resources and the interest groups controls SOEs.

如何落实八二宪法——专家学者众人谈 Yanhuang Chunqiu convenes a small forum of experts to discuss the Consitution and Constitutionalism// 编者按:“宪法与国家前途、人民命运息息相关。维护宪法权威,就是维护党和人民共同意志的权威。捍卫宪法尊严,就是捍卫党和人民共同意志的尊严。保证宪法实施,就是保证人民根本利益的实现。”习近平总书记在首都各界纪念现行宪法公布施行30周年大会上的讲话中说,“只要我们切实尊重和有效实施宪法,人民当家作主就有保证,党和国家事业就能顺利发展。反之,如果宪法受到漠视、削弱甚至破坏,人民权利和自由就无法保证,党和国家事业就会遭受挫折。这些从长期实践中得出的宝贵启示,必须倍加珍惜。我们要更加自觉地恪守宪法原则、弘扬宪法精神、履行宪法使命。” 今年7月19日,本刊编辑部召开小型座谈会,就如何落实宪法进行座谈。参加座谈会的有郭道晖、李步云、张千帆、展江、蒋劲松、李炜光、丁锡奎、秋风、张维迎、蔡霞等专家学者,以及本刊编辑部工作人员。下面是部分学者的发言节录。话题主要涉及宪法落实的必要性和阶段性问题,以及法治、民主、公民权利和人权保障、财政预算和私人财产保护等宪法条款的落实问题。



Philippines mulls removing “Chinese” blocks at shoal – Channel NewsAsia Philippine officials are considering removing concrete blocks allegedly installed by China on a disputed shoal in the South China Sea, the Filipino navy chief said on Tuesday.

Sri Lanka chases the Chinese bandwagon | beyondbrics Cabraal and his delegation hope to convince Chinese banks to invest more in Sri Lankan banks in addition to helping develop trade financing in the country. “There is scope for greater engagement (with Chinese banks)… that is why the top bankers in Sri Lanka are joining me in Beijing,” says Cabraal. If that does not work, there is always Japan. Cabraal says Japanese companies have shown more interest in Sri Lanka since Prime Minister Shinzo Abe took power last year.

China-Russia Energy Impasse-Caijing Upon taking office, newly-appointed Chairman of China National Petroleum Corporation (CNPC) Zhou Jiping proposed making the Henry Hub natural gas futures contract price adopted by the New York Mercantile Exchange (NYMEX) the benchmark import price. The Henry Hub price has become the lowest of its kind as natural gas production in the United States saw explosive growth in recent years thanks to the U.S. shale gas revolution. In response, Russia proposed using the Japan Crude Cocktail (JCC) price, the highest of its kind worldwide, as the benchmark price.



Taiwan’s Ma asks speaker of legislature to step down | Reuters  Taiwan President Ma Ying-jeou on Wednesday urged Legislative Speaker Wang Jin-pyng to step down over accusations of illegal lobbying, in a move that paves the way for a power struggle for the president and his ruling party.



Sandberg Beats China’s Facebook Ban With Call to Lean In – Businessweek Facebook may be banned in China, but for one night anyway, Chief Operating Officer Sheryl Sandberg made herself heard in the world’s most populous nation. Sandberg, promoting the Chinese translation of her book “Lean In” that was released in the U.S. in March, brought a message of change to a standing-room-only crowd of more than 800 at the Cheung Kong Graduate School of Business in Beijing.

Jack Ma’s Case for an Alibaba Listing in Hong Kong – Digits – WSJ“ We are not concerned about where to go public, but we do care that wherever we end up going, the public must support this type of open, innovative, responsible culture that values long-term development,” said Mr. Ma in the letter. 

First Batch of 4G Permits Issued to Handset Makers – Caixin The telecoms regulator has awarded the first batch of permits to mobile phone makers so they can offer handsets compatible with the fourth generation (4G) wireless network. On September 9, the Ministry of Industry and Information Technology approved four mobile phone models to use the TD-LTE 4G network that China is building. The approved devices are from Samsung, ZTE Corp., Huawei Technology Co. and Sony



Zhang Yimou tries Peking Opera – Xinhua Chinese filmmaker Zhang Yimou’s first Peking Opera is set to hit the stage in the National Center for the Performing Arts in Beijing during the upcoming National Day Holiday. Zhang’s Peking Opera, titled “You and Me”, takes inspiration from a 2,700-year-old royal tale of Chinese history. It tells the story of a king whose brother and mother trap him in a political conspiracy. // want to go. wonder how much the tickets are

Shanghai Authorities Demolish Artist Yuan Gong’s Compound in Changning District – China Real Time Report – WSJ A local resident surnamed Jin who has lived in the neighborhood for 30 years said she was indifferent to Mr. Yuan’s current woes. “If the building needs to be demolished for the road, and if legal procedures have been followed, Yuan Gong should abide by the law,” she said, adding that her neighbors had moved out quickly without any disputes.

老外红卫兵回忆文革:其父被关押获周恩来道歉_网易新闻中心 Cultural Revolution remembrances from a “foreign Red Guard” // 后来,我们“红星”战斗队的队部变成了俱乐部,大家买些酒,在那过夜。这时候我们的精神状态,已经不是当初的“豪情万丈”了 柯马凯(Michael Crook),英国人。其父戴维·柯鲁克和其母伊莎白·柯鲁克,均为英国共产党党员,抗战中来华,终身在中国工作。柯马凯1951年出生于北京,文革中,参加了红卫兵组织。以下节录自柯马凯口述。

陈毅之子向文革挨斗老师当面道歉[图集]_中国_多维新闻网 pictures of Marshal Chen Yi’s son Chen Xiaolu apologizing in person to a teacher he persecuted during the cultural revolution // 2013年8月19日,北京八中老三届博客发布了陈毅元帅之子陈小鲁反思“文革”的道歉信,他在信中写道:“我希望能代表曾经伤害过老校领导、老师和同学的老三届校友向他们郑重道歉。”在2013年的“教师节”到来之际,北京八中老三届同学会会长陈小鲁和老同学代表,分别探望了20世纪60年代他们在八中学习时的老校长温寒江先生和李阿玲老师。图为2013年9月1日,陈小鲁和同学会理事计三猛(曾任校革委会委员)、崔勇、黄坚和李大震(曾任校革委会副主任)同学前往人济山庄看望曾任北京八中校长的温寒江老先生。

毛泽东逝世37周年 毛新宇全家纪念堂里缅怀先辈-中新网 pics of Mao Zedong’s grandson General Mao Xinyu and his family commemorating the death of Mao



Half of China’s Antibiotics Now Go to Livestock | Mother Jones A research team led by scientists from China and Michigan State University recently found “diverse and abundant antibiotic resistance genes in Chinese swine farms,” as the title of the paper, published in the Proceedings of the National Academy of Sciences journal, put it. According to a recent analysis by a Beijing-based agribusiness consulting firm, more than half of total Chinese antibiotic consumption goes to livestock.



江苏太湖发现罕见紫鳗虾虎鱼:形似科幻异形生物_高清图集_新浪网 wow, that is a scary looking eel caught in Lake Taihu..slideshow

China airspace: military might puts squeeze on flights | beyondbrics Another civilian air traffic control official, Du Qiang, was even more blunt. “Military aviation should not be granted priority over civilian flights,” he told the conference. “We should have more flexible use of the airspace.” The ultimate goal, Du added, was “shared administration of civil and military aviation”. If achieved, that would mark a major breakthrough in the management of China’s airspace.