The Sinocism China Newsletter For 05.20.13

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

Just links today:


Chinese premier starts official visit to India in maiden foreign tour – Xinhua | Bilateral trade between China and India has grown strongly in recent years, with a total volume reaching 66.5 billion U.S. dollars in 2012. China has become India’s second largest trade partner and India is China’s largest trade partner in South Asia. The two sides aim to expand bilateral trade to 100 billion dollars by 2015, a goal set by the two countries’ leaders.

Related:  Li may raise Depsang incident in talks – The Hindu An agreement to resolve the border issue is not on the cards but sources here expect Chinese Premier Li Keqiang to explain to his Indian counterpart Manmohan Singh why the Depsang incident took place, when the two leaders closet themselves for talks a few hours after the second-ranking Chinese leader’s arrival here on Sunday.

India’s and China’s deft diplomacy reflects strategic common ground | East Asia Forum India is now more often than not taken for granted in the West, seen as a pawn in the growing power game between America and China, or so pre-occupied within its region as to stunt its potential global role. There remain expectations that India would fall into defence alignment with the United States on China…Strategic autonomy is the organising concept in Indian diplomacy. China’s and India’s political and strategic interests are not so differently aligned vis-à-vis those of the US as some might imagine or wish. // except that mistrust runs very deep

India Poll 2013 | Lowy Institute for International Policy The poll results suggest wariness towards China from the Indian public. A large majority (83%) considers China a security threat. The poll reveals multiple reasons for this mistrust, including China’s possession of nuclear weapons, competition for resources in third countries, China’s efforts to strengthen its relations with other countries in the Indian Ocean region, and the China-India border dispute. Although China has become India’s largest trading partner, only 31% of Indians agree that China’s rise has been good for India. But in responding to China’s rise, most Indians want an each-way bet: 65% agree India should join other countries to limit China’s influence yet a similar number (64%) agree that India should cooperate with China to play a leading role in the world. Almost two thirds of Indians (63%) would like relations with China to strengthen.

Chinese cyber crime: More crooks than patriots – The hackers focused on the emails of Terry Gou, Foxconn’s founder and chief executive. The intruders found correspondence in which Mr Gou lobbied top Communist party leaders to move against Wang Chuanfu, founder and chief executive of BYD. “Terry Gou complained that [in the investigation of the IP theft allegations], the authorities were only looking at BYD middle management but argued that Wang Chuanfu was the mastermind,” says one person who saw the email. The mail included a letter to Jia Qinglin, then a member of the party’s Standing Committee and the most senior politician in charge of Taiwanese affairs.

Exposés of China’s Elite a Big Lure in Hong Kong – The People’s Recreation Community bookstore and several others on Hong Kong’s teeming shopping streets specialize in selling books and magazines banned by the Chinese government, mostly for their luridly damning accounts of party leaders, past and present. And at a time when many Chinese citizens smolder with distrust of their leaders, business is thriving.

Why China’s Riches Won’t Bring It Freedom – Bloomberg Pankaj Mishra— Perhaps we should discard the ideological prejudice that assumes the universalization of liberal democracy. We might then be able to see dispassionately the true multiplicity of political forms, how they came into being and what they portend. …“Development is the only hard truth,” Deng claimed. “If we do not develop, then we will be bullied.” Speaking of the “China Dream,” the new Chinese leader, Xi Jinping, upholds the same imperatives of national unity, strength and pride against the need for broad democratic reforms. And he may be right to think he has a receptive audience. Soothsayers have been predicting the collapse of the Chinese regime for decades. In recent years, they have transferred their hopes onto the main beneficiaries of China’s economic growth: the middle classes. Last year’s leadership transition generated much wild talk about imminent revolution.

Bloomberg snooping scandal alerts China on data security – Xinhua | The recent snooping scandal involving global financial information and news provider Bloomberg LP has sounded an alarm for the Chinese financial industry and its heavy reliance on foreign data services…”For a country like China that has such huge foreign exchange reserves, its forex investment portfolio has always been under the global spotlight,” said financial commentator Yu Fenghui. “Any chance of China’s investment intention being snooped on or leaked may cause huge market fluctuations or losses.”..[Yu] said the Bloomberg snooping scandal highlights the need for China to develop its own financial information services as the country’s financial industry becomes more integrated into the world market, “otherwise China’ s economic and financial safety may be threatened.”

Governments toughen their stance towards environmental protesters | South China Morning Post Kunming mayor reminded people on Weibo that the annual college entrance exam is on june 7 so the city needs calm // Growth-obsessed local governments have become more sophisticated at handling rising environmental protests on the mainland, as recent cases against controversial chemical projects in southwestern cities Kunming and Chengdu show.

Related: 成都50余代表考察后称彭州石化项目系国家战略_网易新闻中心 and Chengdu’s planned Pengzhou PX plant part of national strategy, highly unlikely it will be moved// 为啥项目非得选址彭州?决策是否科学?项目如何进行监管……昨日上午,50余名成都市商会会员代表考察了四川石化项目。在了解了项目情况后,代表们认为,石化项目并非空穴来风,选址彭州确属国家战略布局。

Home prices rise slower in April|Economy| Official figures showed that local governments saw fiscal revenue expand 14.7 percent year on year in April on the back of sharp increases in housing transactions, as compared to a 2.2-percent drop in the central government’s fiscal revenue amid weak economic recovery… “The latest round of property price hikes was fuelled by the abundant supply of credit in 2012. If the government can not control the capital flows into the housing market, the prices will rebound.”

Related: China Home Prices Climb as Buyers Defy Government Curbs – Bloomberg Prices climbed in 68 of the 70 cities the government tracked last month from a year earlier, the National Bureau of Statistics said in a statement today. The same number of cities posted gains in March, the most since September 2011.

京楼市供应饥荒:开发商感叹“拿证比登天还难”_新浪房产_新浪网 new housing project approvals caught in Beijing bureaucracy, Beijing property market facing supply “famine”?  // 提要:“现在拿证比登天还难!”北京(楼盘)一开发商感慨地说。目前北京房屋预售证和现房销售价格的确定均需预先通过副市长陈刚签字,进一步加大了开发商拿到预售证的难度。

房产税试点扩容提上日程–中国证券报·中证网 more talk again of expanding the property tax trial // 消息人士19日向中国证券报记者透露,房产税试点扩容已提上日程。继上海、重庆试点房产税征收后,今年有望新增数个城市进行房产税试点。新增试点城市执行方案与标准将因地制宜,预计主要针对增量征收。

Tainted rice scandal hits Guangzhou eateries |Society | the cadmium content of six batches of rice and another two batches of rice noodles exceeded national standards. “All the packages of tainted rice and rice noodles have now been sealed shut,” said the statement that was published on Sunday. The rice was purchased from neighboring Hunan province and the noodles were produced by two factories in Dongguan, a Pearl River delta city in Guangdong province.

Related: 湘苏“毒大米”溯源_财经频道_一财网 cadmium rice scandal a result of heavy metal pollution in soil? // 本次广州查获的湖南“镉米”均来自当地有色金属之乡;苏南土壤重金属污染亦催生问题水稻。



Special Report: The Rise and Fall of China’s Sun King | Reuters Whether Shi has any future with the company he created is unclear. Whether Suntech can survive China’s solar eclipse is equally uncertain. The Wuxi government that Shi was so tightly linked to is trying to maintain Suntech’s production capacity – and the thousands of local jobs it accounts for. A March 21 Suntech statement said “the primary goal” of the court-appointed administrators of the company “is to restructure Wuxi Suntech’s debt obligations while continuing production and operations.” // so far no has called Shi “China’s Icarus”?

China wealth management sector shrinks |Markets | Chinese authorities’ recent tightening over banks’ wealth management products has led to a decrease in the number of new products and their yields. Chinese banks and financial institutions in April issued 2,439 wealth management products, a kind of high-interest deposits. The figure was 12.8 percent lower than in March, according to In the first week of May, 35 Chinese banks issued 282 products, as compared with more than 400 products sold in the previous week. According to the website, average yields of products with a term of shorter than one month have fallen 28 basis points to 3.58 percent in the week ending May 11, from the last week of March, during which the latest tightening measures were launched

China Small-Cap Bubble Seen Bursting by Chen After 43% Advance – Bloomberg Chen Li, the UBS AG (UBSN) strategist who predicted the tumble in China’s smallest shares two years ago, says the companies are poised to retreat again after valuations rose to the biggest premium over larger stocks since 2010. The ChiNext index of Shenzhen-listed companies with a median market value of $765 million has climbed 43 percent this year while the CSI 300 Index, which has a median capitalization of $3.5 billion, rose 2.7 percent.

China’s national problems start in local government – Appeals for financial restraint and prudent investment have failed, writes George Magnus

Property developer ‘trapped in China’ after joint venture goes sour – Telegraph A British property developer has claimed that he and his family are being prevented from leaving China after a joint venture with a state-backed company turned sour.

A Toehold for China on Wall Street – The group, which started last summer in Beijing, aims to help Chinese investors overcome cultural, political and logistical hurdles to doing business in the United States. Sponsored by DKI Capital, a Beijing-based investment firm, the China Investment Federation now has a toehold in the symbolic center of American capitalism.

Chairman’s Letter | DKI Capital | 貔亿投资 Mr. Shengli Yang currently serves as the Chairman of the Board for DKI Capital.  He also serves as Co-Secretary General of the International Investment Committee for Peking University HSBC Business School, Vice President of their Executive MBA Alumni Association, Secretary-General of Red Star Entrepreneurship Support Fund (China Association of Poverty Alleviation & Development), Chairman of Handan City Tianze Investment Advisory Co., Ltd., and Chairman of Hebei Qixia Valley Co., Ltd

The middle-class trap[1]| A recent report by The Times of London describes the Chinese middle class as “on their way to becoming the most powerful social bloc on the planet”. The Wall Street Journal quoted statistics from McKinsey & Co, which defines this group as those with annual disposable incomes of between $16,000 and $34,000. Han, an IT engineer with a US company, and his wife Qian Jin, an accountant in a private domestic enterprise, were startled at the suggestion that they fitted into this category. “Middle class? Call me middle-class when I have at least two houses and a Beijing hukou,” says Qian. A hukou is a permanent household registration in the city, which allows the resident full privileges in housing, education and health services.

发改委官员透露户籍改革“顶层设计”思路 · 时局 · 2013-05-19 ,南都网,数字报,电子报,南方都市报 NDRC official talks to southern metropolis about what may be in forthcoming urbanization plan// 日前,国家发改委发展规划司官员向南都记者透露,《规划》将全面取消小城镇落户限制,对小城镇来说,除了就业、居住外,不再设社保年限。同时提出建立农民工市民化成本分担机制,在政府、企业和个人三者间分担成本,个人需承担社保和住房的私人成本。此外,对于公共成本的分担,中央政府重点承担跨省农民工市民化的成本,省级政府重点承担省内跨市县农民工市民化的成本。

外媒据习近平李克强博士论文分析中国城镇化方向_网易新闻中心 trying to understand urbanization plans via the doctoral theses of Xi Jinping and Li Keqiang// 结合两位领导人的博士论文观点以及中国的实际情况,未来中国城镇化建设或将把重点放在以下三个方面:首先,在城镇化过程中,将不断提高环保意识,提高居民生活质量;其次,对农村地区给予多种税收减免及金融扶持政策,提高农村地区的自立能力和产业化程度。同时将出台法律,禁止地方政府强征农民土地;最后,改革户籍制度。

肖钢上任两月 证监会翻旧案查10公司_网易财经 CSRC head Xiao Gang appears to be cracking down on market misbehavior…much needed, but Sisyphean task? // 昨日(5月19日),业内人士告诉《每日经济新闻》记者,肖钢上任短短两个月,证监会掀起雷厉风行的稽查风暴,特别是集中翻查旧案,严打违法行为,这是保护投资者的积极举措。

网易特别策划_多城市公积金贷款收紧 北京系统升级停贷超一月 北京公积金贷款系统升级已超月余,至今仍未受理个人公积金贷款,对于何时恢复办理,工作人员却称没有具体时间表。这场没有期限的等待正使得房屋交易双方陷入极度地焦虑当中。 与北京地区不同的是,包括厦门、石家庄等城市在升级完成第二天后均开始正常受理公积金 贷款业务。在此背景下,目前北京地区公积金无法办理究竟是系统原因还是调控手段正引发市 场猜想。需要注意的是,国内多个城市的公积金贷款审批呈现出越来越紧态势



Scholar urges setting up of exit plan for members of Communist Party | South China Morning Post An article in the latest edition of the People’s Forum Biweekly Political Commentary, a magazine run by the party’s mouthpiece, People’s Daily, suggests the world’s biggest political and ruling party establish a comprehensive “exit mechanism” and management system to trim the roughly 83 million members to what the author said was a more reasonable 51 million.

New probe of Maoming city’s massive graft scandal | South China Morning Post The Communist Party’s top graft-busting agency recently sent dozens of disciplinary officials to Maoming , Guangdong, to reopen an investigation into a massive corruption scandal that brought down the city’s former party chief and more than 300 local officials, a person familiar with the matter said.

High court review for rape victim’s mother – Xinhua | The Hunan Provincial People’s High Court said on Sunday that it has accepted plaintiff Tang Hui’s bid to have her appeal on the matter heard. It did not specify a date for the review of the case of Tang, who last year was briefly placed in a re-education-through-labor camp over her protests.

University in Shanghai cancels ‘crony capitalism’ lecture | China News Network SHANGHAI, China (China News Network) – Graduate students at a university in Shanghai were ordered to cancel a lecture with a prominent Chinese investigative journalist invited to speak about government corruption after a high level official warned administrators the topic was too controversial to talk about in class. Graduate students studying journalism at Shanghai International Studies University invited Yang Haipeng to discuss the wealth amassed by powerful Chinese government officials and their families

人民日报海外版-政坛“黑马” 陆昊 Lu Hao has had quite the political career at a young age. People’s daily Overseas Edition looks at the “black horse of political circles” // 他是当时西安唯一的中学生党员;他是“文革”后北大经直选产生的第一位学生会主席;他35岁时就出任北京市副市长;他是目前内地最年轻的省长;他就是屡屡刷新“最年轻官员”纪录的陆昊。

【舒立观察】行政审批改革如何动真格_杂志频道_财新网 行政审批改革不仅需要在现有决定基础上的坚定性和执行力,还需要修法并健全监督制约机制,才能减少反复

内部人士:铁路审批权仍归铁总 别被放权口号迷惑_网易财经 接近中国铁路总公司的内部人士称,日前国家铁路局(下称铁路局)“三定”方案中取消的14项职责,大部分仍将难逃铁总的掌心。“不要被放权的口号眩惑了耳目。”该人士称。

权力报复的病根在“公权私用” – 新华评论 – 新华网 归根结底,权力报复的本质是“公权私用”,是权力失去制衡和监督的恶果。先贤曾言:“权力应当成为一种负担。当它是负担时就会稳如泰山,而当权力变成一种乐趣时,那么一切也就完了。”权力蜕化为特权,无疑已成部分人的“乐趣”,这是很危险的。惟有让权力在透明的玻璃窗下运行,置于群众和社会的全方位监督下,才能遏制权力的徇私冲动,回归到法治的轨道

Top restaurants find new rules hard for them to stomach |Society | A separate study of the catering industry over the May Day holiday by the China Cuisine Association saw similar results. “There has been an obvious decline in high-end food consumption,” the association summed up in its report. “The fall in business for Shun Fung, Royal Garden Hotel and Xinhuafu Hotel all exceeded 50 percent.” For some, it has been even worse. A manager at an exclusive restaurant close to Beijing’s West Second Ring Road, who spoke on condition of anonymity, estimated on Thursday that she has had 80 percent fewer customers since the rules were announced.

高档餐饮转型,公款吃喝少了几分? – 新华评论 – 新华网 高端餐饮转型确实说明了一些问题,但是,遏制公款吃喝、转变作风,仍然是一项持久而艰巨的任务。这既有赖于落实“八项规定”、“厉行节俭”的常态化、制度化,也需要政府放权、让权力接受监督等方面改革,向更深层次推进。

Twitter / niubi: Dadong restaurant owner says … Dadong restaurant owner says on weibo that Saturday best day of year w 1.4m rmb turnover across his 4 Beijing spots, his point that even in face of crackdown on official banqueting there is hope for high end restaurants who deliver good service/food

县委书记谈吃喝:今天喝酒不努力 明天努力找酒喝_新闻_腾讯网 Outlook News Weekly talks to local officials, discovers it is very difficult to obey Xi’s 8 rules and stop official eating and drinking, deeply embedded in official culture…// 本刊记者近期在全国多地采访发现,随着中央和地方持续开展转变作风各项活动,公款吃喝之风初步得到遏制。但受拉关系、跑项目、要资金等利益驱动,“酒桌办事”依然大行其道,有的干部对中央规定“左顾右盼”,心态复杂…此次采访,本刊记者的足迹遍及12个省市。据观察,会议研讨、检查评比带来的公款吃喝明显减少,但对300余名基层干部发放问卷调查的结果显示,83%的受访者认为目前最经常的公务接待活动仍然是吃饭喝酒。

“财政饭”不能成“闲饭”(热点聚焦·政府如何过“紧日子”⑤)–时政–人民网 如此多的人争吃“财政饭”,成为我国财政供养人员规模庞大的推动力之一。据清华大学公共管理学院教授、廉政与治理研究中心主任程文浩研究,1998年以来我国经历了几轮大的机构改革,但无论从财政供养人员的绝对数量还是从财政供养率这一相对数量来衡量,我国财政供养人员规模仍然偏高。 据介绍,我国的财政供养人员主要由三部分组成,一是供职于党委、人大、政府、政法机关、政协、民主党派及群众团体等公共机构的人员,二是各类事业单位人员,包括教育、科研、卫生等领域,此外就是党政群机关和事业单位的离退休和长休人员。



Chinese embassy in DPRK working on detention of fishermen |Politics | PYONGYANG – The Chinese Embassy in the Democratic People’s Republic of Korea (DPRK) is working on the detention by the DPRK of Chinese fishermen with a vessel, asking Pyongyang to ensure the safety and legitimate rights and interests of the fishermen, a Chinese counsellor to the DPRK told Xinhua here on Sunday. // with allies like these…

Launchings By North Korea Raise Tensions – SEOUL, South Korea — North Korea launched a short-range projectile into waters off its east coast on Sunday, as South Korea condemned the North’s provocations and urged it to accept a proposal for dialogue. // look at me, look at me…

Asia’s Naval Procurement Sees Major Growth | Defense News | The Asia-Pacific makes up roughly 25 percent of the global projected new ship market, said Bob Nugent, vice president of advisory services at AMI International, a US naval analysis firm. “AMI projects that navies within the Asia-Pacific region will spend a combined [US] $180 billion, almost 800 new ships, surface craft and submarines through 2031,” he said.

Obama walks a fine line with Myanmar president’s landmark visit | Reuters President Barack Obama will walk a fine line between fostering a U.S. ally in China’s backyard and trying to defend human rights when the president of Myanmar becomes the first head of his country to visit the White House in 47 years on Monday.

Under Pressure, China Measures Its Impact in Myanmar – In response to the broad opposition, Beijing has ordered secretive state-owned Chinese companies to do something they have rarely done before: publicly embrace Western-style corporate social responsibility practices and act humbly toward the people who live near their vaunted projects.

安倍声称:从未同意搁置钓鱼岛争议 中国说谎_资讯频道_凤凰网 Abe’s Foreign Affairs interview making waves in China, especially the part where he says china is lying about any deal to set aside differences over the Diaoyu/Senkakus

China offers gradual steps to Mideast peace – As the only important power outside the Quartet on the Middle East, which comprises the US, the EU, the UN, and Russia and serves as the main diplomatic body dealing with the Palestine-Israel issue, China has an important role in promoting the peace talks. That’s also the important reason for the successive visits of the officials from Palestine and Israel. ..Zhao Jianming, an associate professor of the Institute of International Relations at Shanghai Academy of Social Sciences



Banyan: Seas of troubles | The Economist IN THE convoluted dramas in the seas around China, Taiwan is often cast as a bit player, the optional extra to the lengthy lists of contending parties to the many territorial disputes. But the fatal shooting on May 9th of a 65-year-old Taiwanese fisherman by the Philippine coastguard has shifted Taiwan to centre stage. The killing provoked a crisis in its relations with an important economic partner that happens also to be a treaty ally of America—the ultimate guarantor of Taiwan’s own defence. In the bigger picture, its involvement in such disputes inevitably draws attention to the island’s unsettled international status, and to the future of its relations with China.

Philippines waiting for Taiwan anger to cool – Channel NewsAsia  The Philippines is waiting for tempers in Taiwan to cool before settling the dispute over a shot Taiwanese fisherman, the head of an office in charge of relations said on Sunday.



China’s King of All Social Media – Tencent is China’s Facebook, Twitter, Zynga, and Tumblr all rolled into one, and it’s pushing hard into e-commerce. How it stays on top, and why the shares could climb 20%…Tencent has a solid balance sheet, with HK$25 billion, or HK$13.57 a share, in net cash, and it is expected to generate HK$20 billion in free cash flow this year. Though it pays just a small dividend now—the stock yields 0.3%—executives said they will look to a higher dividend and continued share buybacks to return cash to shareholders.

Qihoo 360 Reports First Quarter 2013 Unaudited Financial Results — BEIJING, May 19, 2013 /PRNewswire/ — Total monthly active users of Qihoo 360’s products and services reached a record 457 million in March 2013, compared to 411 million in March 2012(3)… Total smartphone users of Qihoo 360’s primary mobile security product (4) reached approximately 275 million in March 2013, compared to 74 million in March 2012… Monthly active users of Qihoo 360’s browsers reached a record 332 million in March 2013, compared to 273 million in March 2012 (3).

王小川口述:360员工跳槽来搜狗 股票就没了_科技频道_凤凰网 Qihoo is Sogou’s biggest competitor? so says Sougou CEO Wang Xiaoshan // 搜狗的第一竞争对手是360。360对外喊打百度、打腾讯,但内部第一竞争对手是搜狗。比如360内部可能会说,你跳槽去百度、腾讯都无所谓,只要不去搜狗,股票都可以给你保留,去搜狗就不给你。

Cannes Hit by Second Burglary–Hollywood Reporter China Film Group vice president Zhang Qiang had all of his luggage stolen from his rented Cote d’Azur apartment, leading the senior exec to tweet: “This film festival is not worth mentioning!”



CNS STORY: Sainthood cause of 16th-century Jesuit moves to Vatican Although it has taken more than 400 years, the sainthood cause of Jesuit Father Matteo Ricci, the 16th-century missionary to China, appears to be back on track.

山西稷山:农民手绘名人领袖画像_史云平_博联社 Bishe–Pictures of a Shanxi peasant artist who paints very good pictures of Chinese leaders

The Last Days of Bali Village 八里村最后的日子 | Andrew Stokols Like other Chinese cities, Xi’an is home to many so-called “urban villages“.  These communities are generally the remnants of villages that have been swallowed up as cities expanded into the countryside over the last 30 years of China’s breakneck economic growth. Xi’an’s Bali Village is one of the more well-known in the city.



Greying China taps rural elderly to care for those even older | Reuters In their search for affordable eldercare models, Beijing’s leaders have turned their attention 450 km (280 miles) to the south in Hebei’s Feixiang county, where Qiantun lies. The practice of old people taking care of each other posed a simple and attractive solution. Labelled “mutual assist eldercare”, the Feixiang model is set to be expanded to the rest of rural China, with 3 billion yuan ($490 million) set aside by the central government to get it started over the coming three years.

H7N9 more likely to transmit among humans than other bird flu – Xinhua | A China, World Health Organization (WHO) joint report said the H7N9 bird flu virus has a higher potential for human-to-human transmission than any other known bird flu virus.

China tops table for disaster-induced migration–China Dialogue Natural hazards like floods and storms have forced almost 50 million people in China from their homes over past five years



Hukou Age Limits Anger Graduates – Economic Observer College graduates with certain jobs in Beijing have traditionally been able to obtain a local hukou (household registration). However, a new law has barred people over certain ages from enjoying this, which has prompted cries from graduates of illegality and unfairness…When he called the Beijing Municipal Bureau of Human Resources and Social Security (BMBHRSS), they confirmed that there was indeed a new policy limiting the age for university graduates who want to get a Beijing hukou after their study. The age limit for undergraduates is 24 years old, 27 for post-graduates, and 35 for Ph.D students.



May 22 – Speaker Series with Bill Bishop (北京) | ATLAS-China TIME: Wednesday May 22, 7:30pm LOCATION: Guomao neighborhood – RSVP for details