"Sinocism is the Presidential Daily Brief for China hands"- Evan Osnos, New Yorker Correspondent and National Book Award Winner
Thanks for reading. The best way to see this daily post is to subscribe by email, especially if you are in China, as Sinocism is still blocked here. You can also follow me on @niubi or Sina Weibo @billbishop.
Gu Kailai did get her day in court, or at least eight hours. The trial is over and now we await the announcement of the verdict. In Court observer: Gu Kailai, wife of Bo Xilai, confessed to murder of Briton in China The Washington Post’s Keith Richburg provides the most detailed report of the crime and the courtroom proceedings I have seen. Richburg writes that:
According to the person inside the courtroom, prosecutors described how on Nov. 10 Heywood sent an e-mail to Bo and Gu’s only son, Bo Guagua, who was attending Harvard University’s John F. Kennedy School of Government. The prosecution said Heywood was upset over a property development deal that went bust and demanded that Bo Guagua, who introduced him to the project, send him 10 percent of the promised returns, about 13 million British pounds ($20 million), according to this account.
A copy of Heywood’s purported e-mail, written in English, was displayed in court with a Chinese translation, the person attending the trial said. According to the Chinese translation, Heywood supposedly warned Bo Guagua that if he did not pay the money, “you will be destroyed.” There was no verification that Heywood actually wrote the e-mail…
Almost all the evidence presented in the court came in the form of written testimony that was read aloud. The only witness to testify in person was a scientist from China’s Ministry of Public Security — seen on CCTV in a short-sleeved white shirt and red necktie with eyeglasses — who said he tested Heywood’s blood in April. That test confirmed the presence of poison, the observer said.
As for the sentencing of Gu, Geremie Barme of the Australian Centre for China and the World told Australia’s ABC News that:
The official line determined in the Maoist era remains if you confess your crimes you can be dealt with leniently. She seems to have confessed and thrown herself on the mercy, if one can use such a word, mercy of the Chinese court system because of the very nature of the case she may well be let off although you would think that just because of the notoriety of what’s happened, the international influence and also the internal Chinese political influence she would be dealt with very swiftly and savagely.
It will be a barometer to an extent for us to tell what’s going on in … if she’s not dealt with severely and given a bullet in the back of the head or an injection we’ll know the Chinese Politburo and the political and legal system are so tenderly and carefully balanced they dare not move any particular direction and will compromise rather than actually doing away with this troublesome person.
The South China Morning Post reports today that Wang Lijun, Bo Xilai’s former police chief and the man whose flight to the US Consulate in Chengdu was the proximate trigger for Gu’s arrest and Bo’s fall, will go on trial next week in Chengdu.
Yesterday’s Sinocism commentary directed readers to The Bo Xilai Affair in Central Leadership Politics, by the Hoover Institution’s Alice Miller. Dr. Miller was my graduate school advisor so I am generally partial to her view of Chinese elite politics. Today the Wall Street Journal published an abridged version of Miller’s essay. I still recommend reading the original (it is not that long), as Miller also does a good job casting doubt on the Financial Times report of the downfall of Zhou Yongkang and takes issue with the widely accepted but oversimplified “Princelings vs. Communist Youth League” construct for analyzing Chinese elite politics. Joseph Fewsmith’s Bo Xilai and Reform: What Will Be the Impact of His Removal?, in the same issue of the Chinese Leadership Monitor, also questions the “Princelings vs. Communist Youth League” framework.
Chinese economic data released Thursday showed continued weakness. FT Alphaville writes that the China data inspires hope, disappointment… and a dilemma while the more bearish now say China has hit a hard landing. Has it?
Today’s Links:
- HSBC:July CPI Below 2Pct, Likely to Promote Another Rate Cut-Caijing
- 茅台欲加冕国酒引发白酒行业争议 五粮液称全国人民都反对-财经网
- Regional Airport Expansion Cleared for Takeoff – Caixin Online
Scores of regional airports are slated for construction in coming years, with local governments footing bills
- Beijing Said to Mull More Steps to Cool Property Market – Caixin Online
increased sales and slow building of affordable housing may prompt central government to act, source says
- 网易农业事业部首次公开招聘农业相关岗位_互联网_科技时代_新浪网
Chinese Internet power Netease going big in building services for China’s rural population
- Why a U.S.-China ‘Grand Bargain’ in Asia Would Fail | The Diplomat
Hugh White’s new book sparking debate//
A new book argues for a ‘concert of powers’ to enhance stability while conceding to Beijing a ‘sphere of influence’. It would be a mistake. - Bo’s ex-ally to face trial next week, sources say | SCMP.com
The trial of former Chongqing police chief Wang Lijun will open next week in Chengdu, Sichuan, two sources say.
A Chengdu-based source said Wang will be charged with treason, which carries the death penalty. But the source said a lenient sentence would be handed down because Wang earned “merits” during the investigation. Another source, close to the Chongqing government, confirmed that Wang’s trial would open in Chengdu in a few days. - China Increases Fuel Prices for First Time in Five Months – Bloomberg
- Chinese Rescue of Battery Maker Saves U.S. Jobs, CEO Says – Bloomberg
A123 Systems Inc. (AONE)’s chief executive officer said the company’s financial rescue by China’s largest auto-parts maker will preserve U.S. jobs, after the agreement drew criticism from congressional Republicans.
A123, a maker of lithium-ion batteries for electric cars, may get financing worth as much as $450 million from Wanxiang Group Corp. The deal that may give Wanxiang an 80 percent stake in Waltham, Massachusetts-based A123, recipient of a $249 million federal grant for U.S. factory construction, is opposed by Representative Cliff Stearns, a Florida Republican. - Hard landing for China as factory prices fall and deflation looms – Telegraph
economy is clearly in trouble here, but this is why i never take very seriously anything ambrose evans-pritchard writes about china//
Yet reformers are locked in a struggle with military hawks and Mao revivalists linked to Chonqing chief Bo Xilai. - China Data Damp Hopes for Rapid Rebound – WSJ.com
BEIJING—China’s factory output showed further slowing, damping hopes that Beijing’s shift to stimulus would trigger a rapid rebound in the world’s second-largest economy, and compounding fears about a flagging global recovery. Industrial output, the key monthly measure of China’s economic health, dipped to 9.2% growth in July compared with a year earlier, down from 9.5% in June and the lowest level since May 2009. Electricity generation eked out a 2.1% on-year increase, pointing to a sharper slowdown in energy-intensive heavy industry.
- Decline Of Super-Rich In China – Business Insider
Jefferies equity analyst Rong Li has a great new note out about the risk of a serious slowdown in the Macau gaming market.
Macau is highly levered (obviously) to China, and in particular the Chinese elites. - Wealthy Chinese charter flights to watch Olympics|China|chinadaily.com.cn
Wealthy Chinese sports fans have been chartering private jets from Shanghai to London to watch the Olympic Games.
More than five chartered jets have set off from Shanghai Hong-qiao International Airport for the British capital since the start of the Games, according to an airport immigration officer who did not want to be identified. - 北京部分知名楼盘暴雨后现”质量门”_中国经济网――国家经济门户
- A Poet From China’s Avant-Garde Looks Back – Scene Asia – WSJ
The Chinese poets grouped together as the “Nine Leaves” school were once considered the country’s most avant-garde, a marked contrast to the propagandistic writing that became common during Mao’s reign.
Nine Leaves’ last living member, Zheng Min, stopped writing along with the other poets in the 1950s after she returned from a sojourn in the U.S. to study literature at Brown University and voice at Juilliard. She picked the pen back up in 1979, a period she calls her “second childhood,” when she began to explore poetry as well as philosophy and translation. - Sorry, Marc “Internet Rich Man” Andreessen Is Not Launching a New China Fund | PandoDaily
Sometimes, though, a piece of Web BS is so utterly ridiculous that it’s worth reading for pure entertainment value. This site claiming that Marc Andreessen is opening a new fund in China is a perfect example.
- Chinese Manufacturers, Carriers And Developers Form An Alliance To Block Apple’s Siri In China | TechCrunch
- Sina Exec: ‘We’re Frightened By Shift to Mobile Internet’
Sina vice-chair Wang Gaofei spoke with Sohu IT about the company’s microblogging service and the difficulties it is facing in China’s changing internet landscape.
- The political implications of a murder trial – ABC News (Australian Broadcasting Corporation)
- China, Latin American and Caribbean States Troika launch regular foreign ministers’ dialogue – Xinhua | English.news.cn
China and the Community of Latin American and Caribbean States (CELAC) Troika agreed Thursday to set up a regular foreign ministers’ dialogue mechanism and hold the first round of dialogue in September.
- China’s industrial output growth weakens again in July – Xinhua | English.news.cn
The growth of China’s industrial output slowed again in July, highlighting persistent challenges for the world’s second-largest economy in restructuring its industries amid sluggish external demand, according to data released Thursday by the National Bureau of Statistics (NBS).
- PLA, armed police delegates elected for CPC congress, Olympic champion included – Xinhua | English.news.cn
The delegates include Jiao Liuyang, a PLA swimmer and a women’s 200-meter butterfly gold medalist at the ongoing London Olympic Games, according to Thursday’s PLA Daily newspaper.
- Bogu Kailai stands trial for intentional homicide – Xinhua | English.news.cn
- Court observer: Gu Kailai, wife of Bo Xilai, confessed to murder of Briton in China – The Washington Post
- 揭秘收费删帖产业链 明码标价分工明确_中国经济网――国家经济门户
- Alice Miller: The Meaning of Bo Xilai – WSJ.com
- Yeah, She Wins – Sinica at the Olympics
This week on Sinica, we go to the Olympics in recognition of what is unarguably the biggest story coming out of London: the spectacular performance of Chinese swimming sensation Ye Shiwen and the subsequent allegations of doping and anti-competitive behavior by the international and particularly American media which has – unsurprisingly – prompted a defensive backlash throughout the Chinese Internet.
- CitronResearch.com » The Two Faces of Nu Skin
Over the past 5 years Citron has written about numerous Chinese companies who were being less than forthright in their disclosures in the U.S. markets. But we now turn the tables — exposing a U.S. domiciled company that is being far less than honest about its operations in China – defying Chinese government regulation while exploiting an ambitious population eager for a formula to climb the economic ladder.
- Hong Kong Media Office Attacked – China Real Time Report – WSJ
The office of a news publication in Hong Kong was attacked by four masked men Wednesday, sending shockwaves through the city’s traditionally free-wheeling journalism community.
Witnesses said that in the early afternoon on Wednesday, four Chinese men wearing surgical masks and gloves rushed into the ninth-floor office of In-media, an independent online publication known for its outspoken, critical attitude toward the governments of both Hong Kong and mainland China. Two women in the office at the time told police the men used hammers to smash a number of computers, scattering parts across the floor. - Chen Nephew Faces Murder Trial
Wang said he believed the local authorities had deliberately scheduled Chen’s trial a day after the murder trial of Gu Kailai, wife of ousted Chongqing Communist Party boss Bo Xilai, in the eastern province of Anhui, to avoid international attention.
“Of course there won’t be any foreign journalists gathered there on Aug. 10,” he said. “Most of the diplomats and Beijing-based correspondents will be putting all their energy into [what is going on in] Anhui.”
“They won’t have the manpower to get over to Shandong on the 10th to focus on Chen Kegui, so they are using the timing to hold Chen Kegui’s trial in a blind spot.” - Chinese court account of Gu Kailai trial | Reuters
Here is Reuters’ translation of the main part of the account of the trial issued by the court in Hefei, provincial capital of Anhui in eastern China, which was given to reporters. It refers to Gu by her official name, Bogu Kailai.
- donga.com[English donga]
A Chinese conglomerate that tried to advance into the North Korean mining industry has been forced out of the Stalinist country due to contract cancellations.
Calling its past five-year investment in the North “a nightmare,” Xiyang Group has filed for arbitration with the Chinese government. - Tencent’s Qzone Social Network Has Over 150 Billion Photos
Chinese Internet giant Tencent claims its Qzone social network now hosts 150 billion photos, enough to encircle the earth and the moon 30 times if printed out…Qzone, an offshoot of the popular QQ messaging service, is roughly the Chinese equivalent of Facebook or Myspace. According to one estimate from May, Qzone has more than 530 million users.
- Bogu Kailai stands trial for intentional homicide – Global Times English Newspaper of China
looks “puffy”. on drugs to keep her “stable”? antidepressants etc can add weight, no?
- 薄谷开来故意杀人案一审开庭现场|薄谷开来|张晓军|尼尔伍德|受审|故意杀人_新浪视频
cctv video report of gu kailai on trial day.
- Bo’s Wife Didn’t Dispute Murder Charges, Court Official Says – Bloomberg
Gu Kailai, the wife of ousted Chinese Politburo member Bo Xilai, didn’t dispute a murder charge against her that she poisoned a British businessman in his hotel room, a court official said.
- China July Car Sales Trail Forecasts as Buyers Await Policy – Bloomberg
China’s passenger-vehicle sales trailed analysts’ estimates for the first time in five months, as demand slowed with the economy and some consumers held back purchases in anticipation of government stimulus measures.
- China July Home Sales Decline as Wen Vows Curbs to Stay – Bloomberg
Seasonally adjusted factors accounted for the slowdown in sales in July, usually a low season for property sales, said Nicole Wong, a Hong Kong-based property analyst at CLSA Asia- Pacific Markets. The value of home sales rose 41 percent in June, the most in a year, as the government eased monetary policies.
- Private Kingdoms Beget Nepotism – Economic Observer News- China business, politics, law, and social issues
A series of scandals involving the Ministry of Railways has highlighted the closed and independent nature of the enormous agency that’s allowed nepotism and cronyism to thrive. Only when the entire system is reformed and opened to the public will things change.
- Prescriptions for Local Debt – Economic Observer News- China business, politics, law, and social issues
Three economists suggest remedies for debt-ridden local governments that have relied on land sales in recent years as the major source of fiscal revenue. This comes as land sales and the overall economy are slowing and debate has begun over whether local governments should issue bonds.
- James Cameron to co-produce 3D film on history of Beijing|Culture|News|WantChinaTimes.com
The film will depict the 800-year history of the Chinese capital, according to a memorandum signed by the Cameron Pace Group (CPG) China, the China Film Group Corporation and another four film companies and administrative organizations.
- FT Alphaville » China data inspires hope, disappointment… and a dilemma
This is the real dilemma: in order to boost growth, it looks like any vestiges of rebalancing that took place in recent months will well and truly be wiped out in the next few months. And that’s the good scenario, remember, as it assumes policymakers have that level of control — they are already walking a tightrope on house prices, for example.
The next question will be, how sustainable will an inevitably capital-intensive rebound be? - China’s local debts start to bite | beyondbrics
local governments are now under increasing funding pressure as debts come due and revenues fall. Over 17 per cent of the loans to local governments, roughly Rmb1.8tn, are due this year, according to the National Audit Administration in July 2011.That is already throwing a big spanner in local government spending plans. Shenzhen, the city across the border from Hong Kong, will have to spend 13 per cent of its annual budget to repay debts this year, including local bonds issued in 2009 to boost the economy after financial crisis, said Southern Metropolis Daily, a local newspaper.
- March of the Penguin: Tencent Takes on the World | PandoDaily
As well as being available in English and hooked up to Facebook Connect, WeChat is also available in Russian, Vietnamese, Thai, Indonesian, and Portuguese – which should give you a pretty good idea of the markets Tencent is targeting. Recently, WeChat also launched in India, with a partnership with Indian gaming site Ibibo, of which Tencent owns a 20 percent stake.So, yes, today Pony Ma and Tencent still get less chatter in the West than do Yahoo and Facebook. But don’t expect it to stay like that forever. This is a company that – like China itself – is only beginning to unlock its international power.
- Rio Tinto: Chinese Stimulus – Business Insider
Rio Tino is one of the biggest commodity players in the world, and its fortunes are highly geared towards China.
- Wealthy Chinese become leading players in US realty market|Economy|News|WantChinaTimes.com
- UCSD IGCC » New IGCC Working Paper on Cybercrime Released
- Wenzhou Reforms Stall – Economic Observer News- China business, politics, law, and social issues
Four months after financial reforms gave Wenzhou a shot of adrenaline, local businessmen are saying they have yet to see any results. Those who’ve tried to establish the private banking institutions that reforms were supposed to allow have met dead ends.
- Owner of Chinese steel company flees with unpaid debts|Economy|News|WantChinaTimes.com
Baoqiang Steel’s chairman Chen Zhiqiang, who won recognition in China as an outstanding entrepreneur, is reported to have gone to ground in order to escape his growing debts.According to the Guangzhou-based 21st Century Business Herald, Chen fled because he could not secure funds to repay the bank loans of a subsidiary he owned in Xinjiang in northwest China.
Thanks for reading. The best way to see this daily post is to subscribe by email, especially if you are in China, as Sinocism is still blocked here. You can also follow me on @niubi or Sina Weibo @billbishop.
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