The Sinocism China Newsletter 10.22.15

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

Today’s Links:


1. CPC’s new clean governance rules focus on moral ethics – Xinhua The rules, adopted at a meeting of the Political Bureau of the CPC Central Committee on Oct. 12, updated the previous regulation, which was released in 2010 and considered obsolete as the party now has a much higher standards of morals on its members. The new rules for the first time expanded its coverage from only leading cadres to all CPC members. In stark contrast from the previous rules, which listed 53 articles party cadres are forbidden from doing, the new 8-article regulation mainly stipulates moral ethics for party members.

Related: 中共中央印发《中国共产党廉洁自律准则》《中国共产党纪律处分条例》—中央纪委监察部网站 通知指出,《准则》自2016年1月1日起施行,《中国共产党党员领导干部廉洁从政若干准则》同时废止。// The full texts on CCDI web site

Related: 党纪:公开反对改革开放决策开除党籍政经频道财新网 《中国共产党纪律处分条例》指出,通过信息网络、广播、电视、报刊、书籍、讲座、论坛、报告会、座谈会等方式,公开发表坚持资产阶级自由化立场、反对四项基本原则,反对党的改革开放决策的文章、演说、宣言、声明等的,给予开除党籍处分  //  not translated in the summary of the new rules is the punishment up to expulsion for publicly supporting “bourgeois liberalization”, opposing the Four Cardinal Principles, opposing the reform and opening policies

Related: China Focus: New rules separates CPC discipline from law – Xinhua  The Communist Party of China (CPC) Central Committee has published new rules on clean governance and sanctions for those who violate the Party code of conduct, as the CPC improves the management of its 88 million members. The two new regulations, adopted at a meeting of the Political Bureau of the CPC Central Committee on Oct. 12, updated existing rules deemed incompatible with the Party following the launch of its anti-corruption drive.

Related: 所有党员注意,以下六种“负面清单”碰不得 People’s Daily App on the updated rules as a “negative list” with 6 items for Party member behavior // 负面清单一:突出政治纪律,谁在党内搞团团伙伙、对抗组织审查必被严惩!; 负面清单二:强调组织纪律,谁再参加老乡会、违规提拔干部必受处分!; 负面清单三,强调廉洁纪律,谁敢纵容子女亲属经商,必遭党纪严惩!; 负面清单四,重视群众纪律,为群众办事还吃拿卡要,再这样就处分你!; 负面清单五,明确工作纪律,不负责、乱干预、泄秘密,结局只有被处分!; 负面清单六,严肃生活纪律,作风不好,不违法就能免制裁?做梦!

Related: Golf and gluttony in the rough as China tees off against graft | Reuters Beyond golf, the new rules also mention “improper sexual relations”, broadening the scope of proscriptions that before only referred to “keeping paramours and conducting adultery”. The charge of adultery is frequently leveled at high-ranking graft suspects as a way of showing they are morally degenerate and deserve punishment. Forming “cliques” that seek to split the party is also banned under the new regulations, along with hiding personal issues that should be reported, and abusing positions of power to seek gain for family members and staff.

Related: [视频]王岐山发表署名文章:《坚持高标准 守住底线 推进全面从严治党制度创新》新闻频道央视网( Thursday CCTV Evening News on Wang Qishan’s signed commentary coming in Friday’s People’s Daily, on the new conduct and discipline rules…just in case anyone thought the corruption crackdown was winding down?

2. 中央巡视组即将入驻一行三会金融频道财新网 Caixin-CCDI inspection teams going into the big banks, financial regulatory bodies…certainly a target-rich environment, and Wang Qishan knows all the tricks in the finance sector // 财新记者从多个渠道获知,中央巡视组10月底将同时入驻银监会、证监会,后者亦将于近日召开动员大会。中央此轮对金融系统(“一行三会”及国有商业银行)的专项巡视由此正式拉开序幕。  此次对于金融监管系统的专项巡视是“一托二”,即银监会和证监会为一组,央行及保监会为一组,巡视工作都将于近期展开。一般巡视组派驻时间为两个月。2011年,金融监管机构及部分国有大行被巡视过。

3. Urgency for Reform Rises as Bold Pioneers Fade-Caixin Hu Shuli Editorial An emotional outpouring tempered by a sense of business left unfinished has followed the death of Du Runsheng, a former government official known as China’s “father of rural reform.” Du, who died on October 9 in Beijing at the age of 102, became the latest of several well-known pioneers of the country’s reform process to die in recent months. Each retired from public office years ago, yet none had been forgotten. Recent tributes paid to Du and other standard bearers of reform reflected deep respect for who they were and what they accomplished. At the same time, each death serves as a fresh reminder that what’s urgently needed now is for others to finish the reforms they began.

4. Schieffer Series: Assessing U.S.-China Relations after the Obama-Xi Summit | Center for Strategic and International Studies Kurt M. Campbell , Demetri Sevastopulo, Christopher K. Johnson

Related: Video: The Heart of the Matter: Reassessing the Foundations of U.S.-China Relations | Wilson Center Roy, Glaser, Shambaugh, Scissors, Daly 

Related: Moving Forward with the Obama-Xi Cybersecurity Agreement | Center for Strategic and International Studies it is misleading to emphasize the difficulties. There is no credible alternative to the agreement. Sermons and chest-beating, while pleasing to a domestic audience, do not work. Some say better cyber defenses – we’ve been saying that for twenty years and it hasn’t worked because the internet cannot be made defensible. Building a Maginot line in cyberspace is pointless. Some say we should deter China – another failed approach, in good measure because espionage isn’t deterreable. We couldn’t deter Soviet espionage with the threat of nuclear war and we should not expect to deter China with comparatively puny cyber threats.

5. A New Look at Japan’s Wartime Atrocities and a U.S. Cover-Up – The New York Times That is detailed prominently in exhibition notes and an audio guide in the black marble building that lies like a split box here in Pingfang, on the edge of Harbin in northeast China: “Out of considerations of its national security, the U.S. decided not to prosecute the leader of Unit 731 and the criminals under him. They all escaped trial for war crimes.” Led by Dr. Shiro Ishii, Unit 731 bred plague microbes, then deliberately infected thousands of men, women and children. It conducted vivisection and frostbite and air pressure experiments, transfused prisoners with horse blood and studied the effect of weapons on the body, among many things.

Related: Q. and A.: Gao Yubao on Documenting Unit 731’s Brutal Human Experiments – The New York Times The museum in the district of Pingfang enlarges an earlier one on the site where Japanese doctors of Unit 731 carried out medical atrocities on prisoners that rivaled in brutality, or perhaps even surpassed, those committed by Dr. Josef Mengele in Nazi Germany.

6. “十三五”环保战略调整图明晰 _ 经济参考网 _ 新华社《经济参考报》官方网站 Economic Information Daily on what may be in the 13th Five Year Plan about the environment  //  《经济参考报》记者日前从环保部了解到,目前环保部正在加快制定“十三五”规划,规划将以环境质量改善为核心,气水土三大环境战役将推进实施。按照计划,该规划有望明年3月上报国务院。 值得注意的是,与“十一五”、“十二五”相比,在目标实施上,环保“十三五”规划将从单一目标即总量控制目标、减排目标,变成双目标即环境质量改善和污染物总量控制,内容将涉及绿色经济、核安全问题、土壤环境保护、生态环境保护、水环境污染防治等诸多方面。多位专家预计,环保未来5年的发展方向和投资重点将上升至国家战略角度,成为政府重点投资领域。围绕着环保领域的十万亿级盛宴或将启动。

7. Five Provinces Blamed for Half of Export-Linked Carbon Emissions-Caixin Five provinces are responsible for almost half of China’s carbon emissions linked to making goods for export, a study has found. Factories in the eastern province of Shandong making export goods coughed up as much carbon dioxide in 2007 as India did that year, a report published in September in the scientific journal Nature Climate Change said. Factories in the eastern province of Jiangsu and Guangdong, in the south, spewed out as much CO2 as Canada did in that year, the report said. The northern province of Hebei and coastal Zhejiang rounded up the list of the country’s worst polluters of this type.

8. Spy Claims Fade as Chinese Decipher Depression-Caixin Eight years ago, suspicious health officials apparently fearing a foreign espionage plot prevented Chinese psychiatrists from collaborating with U.S. and British counterparts on a major study of depression. Those suspicions, possibly originating at a high-level government agency, forced some psychiatrists and hospitals to drop out of the medical study launched by researchers from America’s Virginia Commonwealth University (VCU) and Britain’s Oxford University. Oxford’s Dr. Jonathan Flint, who led the research with VCU’s Dr. Kenneth Kendler, said that at one point during the lengthy study so many Chinese hospitals dropped out that the project had to be temporarily suspended. But Flint and Kendler persisted in their search for collaborators until eventually finding enough cooperative – even courageous – psychiatrists in Shanghai, Shenyang and other cities to complete the project this year.


China says outflows normal, no panic capital flight | Reuters China is confident in keeping international payments and receipts balanced in the future thanks to a positive economic outlook, Wang Xiaoyi, deputy head of the State Administration of Foreign Exchange (SAFE) told a news conference. “Current changes (in capital flows) are normal, which should not be regarded as capital flight,” Wang said.

China’s Record Capital Outflows Put Tobin Tax Back on the Agenda – Bloomberg Business “We are currently studying measures including Tobin Tax, unremunerated reserve requirement and handling fees for foreign-exchange trading to suppress any abnormal and significant flows of short-term funds that seek arbitrage,” Wang Xiaoyi, deputy administrator of the State Administration of Foreign Exchange, said Thursday at a press conference in Beijing. Central bank Deputy Governor Yi Gang called for such punitive measures to be introduced to deter currency speculators in China Finance magazine, a People’s Bank of China publication.

McDonald’s shows first signs of a turnaround with strong Q3 earnings In its high-growth markets, which includes China, sales grew 8.9%. Analysts had expected 4.7% growth. // another reminder that Yum’s results are not really representative of much more than their own performance and management

China requires real-name for courier service after deadly mail bombs – Xinhua The move is part of a five-month long campaign launched by the central comprehensive management office, along with 14 government departments including the Ministry of Public Security and the State Administration of Work Safety, to reinforce safety management of delivery services nationwide, according to a central statement issued Thursday. The delivery service staff must also check the goods before packaging, and all envelopes and parcels must go through a X-ray machine.

Loans to Parent of Troubled Solar Panel Maker at Risk, Bank Admits-Caixin A bank in the northeastern province of Liaoning has said in a prospectus for a listing in Hong Kong that nearly one-third of its lending to the parent of troubled Hanergy Thin Film Power Group Ltd. is at risk of default because trading in the solar panel manufacturer’s shares has been suspended. In a revised prospectus released on October 14 that Caixin has viewed, Jinzhou Bank said that it had given Hanergy Holding Group Ltd. a credit line of 9.46 billion yuan as of the end of June, and 2.77 billion of that is at risk.

China securities regulator taps Stanford graduate Fang Xinghai for role – Mr Fang will replace departing deputy chair Liu Xinhua, who reached the mandatory retirement age of 60 last month…He received a bachelor’s degree from Tsinghua University in Beijing, China’s top school for science and engineering, before earning a PhD in economics from Stanford. Mr Fang worked as an economist at the World Bank in Washington before returning to Beijing for a senior role at China Construction Bank, the country’s second-largest lender

Renmin University’s President ‘Close to Joining Central Bank’-Caixin The president of one of China’s top universities will become a deputy governor of the central bank, a post that could one day lead to becoming the country’s representative at the International Monetary Fund, several people with knowledge of the matter say. Chen Yulu, 49, has been vetted by the Communist Party’s personnel department for the central bank position, the sources said, and the appointment is expected to be announced soon.

地方置换债额度超需求经济频道财新网 Caixin reports local debt swap qotas exceeding demand  //  各省分配到的置换债额度不一定会全部用完,有省份会置换部分未到期债务

Uber CEO Travis Kalanick: 30% of Our Trips Take Place in China – WSJ The number of Uber trips in China is nearly as large as in the U.S., he said. Chengdu, in China’s western Sichuan province, has the highest number of rides, Mr. Kalanick said in an interview at the WSJDLive conference.

China SOE profits tumble in Jan.-Sept. – Xinhua Profits declined 8.2 percent year on year in the January-September period to 1.74 trillion yuan (274.13 billion U.S. dollars), and the drop was only 6.6 percent in the first eight months, according to data from the Ministry of Finance on Wednesday. SOEs in the areas of petrochemical, oil refining and construction materials saw substantial profit declines, while the steel, coal and non-ferrous metal sectors continued to suffer from major losses. However, profits of companies in transportation, electronics and chemical engineering improved in the period.


Beijing Bull: The Bogus China Model | The National Interest Daniel A. Bell argues that the world can learn from the undemocratic “China Model.” Yet the China he lauds is an illusion.  //  Andrew Nathan reviews Bell’s latest book

要闻——中央纪委监察部网站 CCDI releases feedback from recent inspection tours

China captures corruption suspect thought to have fled overseas | Reuters he returned home in 2004, as his mother’s health was failing, and there is no record of his having left the country subsequently, it added. It is not clear why Zhu was not apprehended when he re-entered China. After years of investigation, authorities persuaded his father to convince Zhu to give himself up, the paper said, and on Oct. 12, he surrendered at his parents’ Shanghai home. He is the 15th person on China’s list of overseas fugitives to be caught.

Two local officials under graft probe – Xinhua A procuratorate in Shanghai has decided to investigate Lu Jin, deputy head of Shanghai’s Jinshan District, on suspicion of taking bribes. Jiangsu provincial procuratorate has decided to investigate Zhang Xiong, president of Nanjing Sport Institute, on suspicion of embezzlement of public funds.

China says Tibet officials must be ‘fortress’ against separatism | Reuters Tibet party boss Chen Quanguo, writing in the official People’s Daily, said there was “nothing more harmful than chaos”, and China’s stability as a whole rests on the stability and security of Tibet.

中宣部专项整治党报党刊搭车摊派违规发行–时政–人民网 新华网北京10月22日电 2016年度党报党刊发行暨报刊发行秩序专项整治工作视频会议22日在京召开。会议强调,要认真贯彻落实《中共中央办公厅关于做好2016年度〈人民日报〉、〈求是〉杂志发行工作严格规范报刊发行秩序的通知》精神,一手抓重点党报党刊发行,一手抓违规发行专项整治,确保报刊发行平稳有序。

河北宁晋公安局政委被撤职 遭亲生女儿举报通奸新闻腾讯网 adulterous police official in Hebei loses his job after his daughter files a complaint


China offers artillery training to foreign military students – Xinhua These students, from 37 countries including Pakistan and Egypt, will be taught about rocket artillery, and antitank missiles, among other topics, according to the academy. The academy has cultivated more than 120,000 officers for the PLA, and trained over 3,100 artillery students from nearly 70 countries.

Retired general known as father of China’s body armour industry suspected of graft, military mouthpiece reports | South China Morning Post A retired PLA general widely accredited with launching the protective body armour industry in China is being investigated for corruption, the army’s mouthpiece said on Wednesday. Zhou Guotai, 66, was the deputy head of supplies and fuel at the General Logistics Department, a persistent source of graft in the military, before he reached retirement age.

2 Chinese Diplomats Are Shot to Death in Philippines – The New York Times Initially, the police said it was a woman married to a consular official who had shot the diplomats. But late Wednesday, after reviewing security-camera footage of the shooting, Rey Lyndon Lawas, a police spokesman, said it was Mr. Li who had fired the weapon.

Senior US Navy officers visit Chinese aircraft carrier – Pacific – Stripes Both China and the U.S. appeared to want to keep this week’s visits low-key, with China’s official Global Times newspaper not reporting on them until Wednesday. The U.S. Navy’s official website made no mention of them. The visits had been long planned and were in reciprocation for a weeklong visit by 29 Chinese naval officers to the U.S. in February, the first time China had sent a delegation of such size, reported the Global Times, which is published by the ruling Communist Party’s flagship People’s Daily newspaper.

Robert Mugabe of Zimbabwe Is Awarded the Confucius Peace Prize – The New York Times A group based in Hong Kong that says it is the official organizer of the prize, which was first awarded in 2010, has selected Mr. Mugabe as this year’s recipient. Among the finalists for the award were United Nations Secretary General Ban Ki-moon, President Park Geun-Hye of South Korea and Bill Gates.


Cloud Storage Firms Told to Crack Down on Pirated Material-Caixin The National Copyright Administration sent a notice to cloud storage firms on October 14, and published it on its website on October 20. It says the companies must put technologies in place to prevent users from uploading, storing and sharing pirated products on their platforms.

WeChat Said to Start Charging Users for Payments, Money Transfers-Caixin Users of the app known as Weixin and WeChat will be charged 0.1 percent for spending and transfers over 20,000 yuan per month, the source said. He said on October 21 the company made the change on October 17. The money used to send virtual red envelopes, which are popular gifts among friends during Spring Festival, the holiday many people know as Chinese New Year, will not be affected by the change, the employee said.


In China, intellectuals have different responsibility-Dr. Xiaoxiong Yi In contemporary China, almost seven decades of authoritarian rule has further brought the modern “shih ta-fu” to their knees. The intellectuals in China today have become ever more compliant, opportunistic and corrupted. The Chinese intellectuals are compliant to a dominant ideology, “the ideology of the dominant class,” in Karl Marx and Friedrich Engels’ words. “The ideas of the ruling class are,” wrote Marx and Engels in The German Ideology, “in any age, the ruling ideas.” In today’s China, the “ruling idea” of the ruling party is a “vulgar” nationalism.

Wentworth golfers told to tee up £100,000 to retain membership – Wentworth golfers face missing the cut after the venerable club’s new Chinese management told them they must pay a £100,000 fee or lose their membership. The Surrey club, one of England’s most exclusive sporting institutions and the headquarters of the PGA European tour, was bought for £135m a year ago by Chinese conglomerate Reignwood from restaurateur Richard Caring.

Jackie Chan surprise guest for Xi and Royals – YouTube Action movie icon Jackie Chan was the surprise guest at a cultural event in London on Wednesday, to help celebrate ties between Britain and China. He was greeted by Prince William, his wife the Duchess of Cambridge and Chinese President Xi Jinping


China environment bureau says Coca-Cola bottling plant falsified pollution data | Reuters In a report on its website, the Lanzhou city office of China’s Environmental Protection Bureau said authorities found Gansu COFCO Coca-Cola Beverage Co Ltd had tampered with data by altering the way it sampled and monitored its sewage output. The news was carried by local media outlets on Thursday. Police detained at least one of the facility’s executives for five days earlier this month as punishment, the Lanzhou environmental bureau’s statement said.

First gene-edited dogs – Business Insider By tweaking a dog’s DNA to cut out a gene for the muscle-limiting protein myostatin, they created a beagle with twice the normal amount of muscle, they reported last week in the Journal of Molecular Cell Biology.


China Turns to Online Courses, and Mao, for Soft-Power Mission – NYTimes When “Introduction to Mao Zedong Thought,” taught by Feng Wuzhong, an associate professor at Tsinghua’s School of Marxism, made its debut last month, it quickly found a large audience, attracting about 3,100 students from 125 countries, including more than 700 from the United States. The course is one of more than a hundred offered on edX and other top education platforms by mainland Chinese universities. There are classes on philosophy, architecture and computer science, but also a handful on subjects deemed politically sensitive in China, such as international relations or law, in which Chinese professors must adhere to the party’s views.


China-made regional jet set for delivery, but no U.S. certification – Business Insider you first  //  The Comac ARJ-21 regional jet, which can seat up to 90 passengers, received the Civil Aviation Administration of China (CAAC) type certification last December and will be delivered to launch customer Chengdu Airlines shortly, two people familiar with the plane’s program told Reuters. The plane will fly without U.S. Federal Aviation Administration (FAA) certification despite a five-year effort to have the FAA endorse CAAC’s certification procedures, the people said.


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