"Sinocism is the Presidential Daily Brief for China hands"- Evan Osnos, New Yorker Correspondent and National Book Award Winner
The best way to read this blog is to subscribe by email, especially if you are in China, as Sinocism is still blocked here. The email signup page is here, outside the GFW. You can also follow me on @niubi or Sina Weibo @billbishop. Comments/tips/suggestions are welcome, and feel free to forward to recommend to friends. Thanks for reading.
Caixin advises us not to get too excited about the May loan data. In Loan Demand Remains Weak Despite Higher May Figure, Caixin writes that “commercial banks exceed expectations, but experts say large portion of note financing meant overall interest in credit was poor.” Caixin published a cover story on weak loan demand a few weeks ago.
The Los Angeles Times has a story about Hollywood cooperation with China that should bring joy to the eyes of many Republicans who might see political advantage in hearings about an industry that is a vital source of Democratic Party funds. In Hollywood gripped by pressure system from China the LA Times reports that “”to appease China and gain access to moviegoers and financing, movies include positive references to the nation (no Chinese villains!) and face censorship.”
As usual, follow the money. The Wall Street Journal, in Summer Blockbuster Slump? It’s China to the Rescue, explains that “the world’s fastest-growing movie market is expected to head to the theaters this summer in droves, helping to lift Hollywood movies’ ticket sales by as much as $50 million per film, up from $15 million per film a year earlier…”
The Wall Street Journal invited Minxin Pei to review Andrew Wedeman’s new book Double Paradox: Rapid Growth and Rising Corruption in China. Pei is not convinced by the book’s argument, writing in Explaining China’s Corruption Paradox that:
Andrew Wedeman’s “Double Paradox” attempts to explain the mystery of how sustained, rapid economic growth is possible under a regime engaged in predatory corruption. By collecting the official data to construct his own database, Mr. Wedeman offers a sophisticated though somewhat convoluted and ultimately unpersuasive answer..
Mr. Wedeman’s book sheds much light on the predatory nature of the current Chinese system. But by focusing on a corruption-growth paradox that may not exist in the way he claims it does, he fails to ask the right questions about that system’s future.
Pei of course has argued for many years that corruption will bring down the Communist Party. He may still be proven correct, but we should not be surprised that he did not like Wedeman’s book, as it appears to contradict some of Pei’s core arguments. I bought Double Paradox yesterday and will add some comments once I read it. And don’t forget, there may still be a lot of money to be made in SOE privatization.
In the meantime, can those who believe that there are senior Chinese leaders pushing for Western-style political reform, and the transparency and media freedom that are sine qua non of such reform, please explain why they would be willing to expose their family interests and how they would handle the fallout? Again, I suggest following the money, not the speeches or the pundits.
Today’s links:
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Probe of Chinese stocks menacing | TribLIVE Authorities in China have arrested, harassed or investigated researchers looking into possible fraud by Chinese companies traded on American stock exchanges, the Tribune-Review has learned.China: 23 Arrested in U.S. Gun Scheme | World | TIME.com Chinese police on Tuesday announced the arrests of 23 people as part of a joint U.S.-Chinese investigation into a gun trafficking ring that smuggled dozens of firearms into the country.
- House of Dimon Marred by CEO Complacency Over Unit’s Risk – Bloomberg
I guess Jamie Dimon won’t the next Treasury Secretary..
- Summer Blockbuster Slump? It’s China to the Rescue – China Real Time Report – WSJ
The world’s fastest-growing movie market is expected to head to the theaters this summer in droves, helping to lift Hollywood movies’ ticket sales by as much as $50 million per film, up from $15 million per film a year earlier, says Robert Cain, a Los Angeles- based independent film consultant.
- Waiting for the smoke to clear | Jiang Gaoming – China Dialogue
China’s fields are burning as farmers clear the crop stubble after the harvest. Local communities are choking, says Jiang Gaoming, as the country wastes a valuable resource for power generation, fertiliser and food.
- Hollywood gripped by pressure system from China – latimes.com
the Republican Congress would have fun bashing a Democrat money base in hearings on this issue…//
To appease China and gain access to moviegoers and financing, movies include positive references to the nation (no Chinese villains!) and face censorship. - Waking Green Dragon: Helen Caldicott, MD: China Nuclear Policy and Fukushima
- 刘乐飞卸任中信产业基金董事长 王东明兼任_金融频道_财新网
where next for Liu lefei?
- Illegal Steelmaker Moves Out of Shadows – Caixin Online
Government recognition of Shougang Qiangang gives hope to other ‘heihu,’ which operate under constant threat of closure
- Closer Look: Policies to Promote Private Investment Just Symbolic – Caixin Online
A flurry of proposals to encourage private investment is impressive on the surface, but may not accomplish much
- Stalled by Scandal, Rail Reform Back on Track – Caixin Online
Private investors may soon hop aboard more Ministry of Railways projects, but only if new reforms go deep
- Loan Demand Remains Weak Despite Higher May Figure – Caixin Online
so maybe we should not get too excited about the May loan numbers//
Commercial banks exceed expectations, but experts say large portion of note financing meant overall interest in credit was poor - 人民日报:网络批评太多非理性 无助于解决问题_新闻_腾讯网 People’s Daily–Internet criticism can be irrational, excessive and unconstructive
- Chinese premier meets Henry Kissinger – Xinhua | English.news.cn
- 构建信息安全体系 推广自主可控产品 – 电子信息产业网
China worried about backdoors in telecom gear too. Bad news for Cisco
- 人民日报-温家宝会见基辛格
Kissinger in town, meets Wen Jiabao, makes page 2 of People’s Daily, with no picture. Guess he has moved past his embarrassing appearance at a Bo Xilai red rally in Chongqing last year?
- 人民日报-周永康在政法干警核心价值观教育实践活动汇报会上强调 Page 1
把政法干警核心价值观教育实践活动作为政法工作
和政法队伍建设的灵魂工程基础工程抓紧抓好 - China Economic Watch | Financial Repression and the One-Child Policy
This is likely to be a nonissue. While the aging trend in China is rapid, changes in the savings rate will be much less so. The savings rate will likely fall in the future as the proportion of retirees increases, but this process of adjustment will occur over years and decades rather than through a sharp decline.For more detailed discussion of financial repression in China see the introduction [pdf] to my latest book, Sustaining China’s Economic Growth after the Global Financial Crisis.
- China’s mega-cities: expensive, “yes”; pleasant, “no” | beyondbrics
shanghai 16, beijing 17 on the list//
Contemplating life as an expat in China? Then take a deep breath, get your renminbi ready and be prepared for some serious spending. China isn’t getting any cheape - Wall Street Journal Fires Iraq Reporter Who Slept With White House Source
is this uncommon, especially in a war zone?
- Zynga Brings ‘Draw Something’ to China, But Will It Help?
Social game company Zynga announced Tuesday that Draw Something was being made available in 12 new languages, including simplified and traditional Chinese, on all platforms.
- Auto prices fall — Shanghai Daily
CHINA’S passenger vehicle prices fell the most in about two years in May because of a worsening glut at auto dealerships.
- China suspends ministerial meetings with Britain over Dalai Lama row – Telegraph
China has indefinitely suspended minister-level meetings with Britain in protest at David Cameron’s decision to meet the Dalai Lama.
- 明鏡新聞網: 焦利“三把火”打爛前兩任央視台長班底
rumors from mirror news that CCTV head jiao li is cleaning house of his predecessors’ people?
- Railways and Environment: the Case of China
Experience demonstrates that environmental impacts can be effectively mitigated if appropriate measures are taken, says a new World Bank paper which reviews environmental practices employed in China’s railway development.
The paper titled China: The Environmental Challenge of Railway Development draws on almost 30 years of World Bank’s involvement in railway development in China to attempt to answer this questio - Hong Kong Pledges Currency Peg After Yam Urges Review – Bloomberg
Hong Kong’s incoming leader, financial secretary and top central banker all pledged their commitment to the city’s currency peg after former monetary chief Joseph Yam called for a review of the link to the dollar.
- China Doesn’t Provide Sufficient Data About Subsidies, WTO Says – Bloomberg
China doesn’t provide adequate data about subsidies and other government assistance it gives to its domestic industries, the World Trade Organization said in its biennial review of the Asian nation’s trade policy.
- Fury over Iran oil sanctions for Beijing | SCMP.com
China is playing by UN rules, official insists as United States prepares to cut off financial ties with banks paying for crude imports from Islamic state
- Woman astronaut gets her own toilet and bedroom | SCMP.com
Veteran pilot will be able to sleep and groom in private during mission on Tiangong-1 space lab
- Angry Bagmaker Shows China Slowdown Worst in Wenzhou – Bloomberg
hard to be sympathetic to overextended wenzhou speculators. in the go-go days they embodied much of what was/is wrong with the economy. surprised this bloomberg piece does not discuss what so many wenzhounese were doing, like mortgaging their factories to speculate in real estate, stocks, wine, basically anything you can speculate in. //
Jiang Xiangsong has 18 days to pay a 2 million yuan ($314,000) bank debt or his suitcase company in eastern China will go bankrupt. He’s close to tears as he realizes his last hope, a government-backed office, won’t help.
“This is totally useless: If I had any collateral, why the hell would I come here?” he yells at an official in Wenzhou’s state-run loan service, set up to help small businesses after rising bankruptcies and suicides prompted Premier Wen Jiabao to visit in October and pledge support. - China Detains 2 for Wuhan Pollution Rumor, Daily Reports – Bloomberg
Police in the Chinese city of Wuhan detained two people for spreading rumors that heavy pollution in the capital of Hubei province was caused by an industrial accident, a newspaper controlled by the local Communist Party reported.
- Chinese Software Company Allegedly To Launch a Smartphone With Retina Display! » M.I.C. Gadget
Qihoo 360 quietly disclosed they are making a new budget phone that would sport a 4.5-inch Retina display. The news came from the official weibo of Qihoo 360 chairman Zhou HongYi.
- Anti-Corruption Drive Hits China’s Postal Savings Bank | China Bystander
- Has China’s Young Jedi Knight Just Joined the Dark Side? | Tea Leaf Nation
Han Han, writer, car racer, and China’s youth opinion leader, recently sealed a deal with massive Chinese Internet company Tencent and founded an e-journal, “One.”
- Uli Sigg Donation Will Be Game-Changer For Hong Kong & Chinese Contemporary Art–Jing Daily
1,463 Works By Top Artists Like Zhang Xiaogang & Zeng Fanzhi Included In Donation
- The clean-up begins on China’s dirty secret – soil pollution | Environment | guardian.co.uk
- China’s capital flight: US real estate edition | beyondbrics
To the rising flow of anecdotal evidence suggesting China’s rich are taking their money out of the country, add this: China is now one of the fastest-growing sources of international buyers for US real estate.
According to a report published by the National Association of Realtors this week, buyers from China and Hong Kong made up the second largest group of foreign buyers of homes in the US in the 12 months to March – behind only Canadians – accounting for $9bn of sales. - Q&A: James Fallows on China, Aviation and Ambition – China Real Time Report – WSJ
- Wing cracks, other flaws delay China jet manufacture | Reuters
as leaders of the global aerospace industry gather in Beijing for an International Air Transport Association meeting that kicks off on Sunday, a closer examination by Reuters shows that the potential challenge from China might be greatly overblown, and that its aircraft sector is unlikely to pose any credible competition for at least a decade.
- Job-hunting TV show stirs controversy |Hot Issues |chinadaily.com.cn
- Escape to Beijing’s villages-Caijing
Stretch your legs and broaden your horizons with our villages guide
- Rebound of New Loans Needs to be Sustained-Caijing
The rebound of new lending in May sends a positive message that Beijing’s recent easing efforts are starting to work.
- Wang Xiaoshuai’s 11 Flowers-Caijing
The Beijing Bicycle director on bringing his childhood to the screen
- 央行特急文件:首套房贷利率最低可达7折_中国经济网――国家经济门户
- 通州地块楼面价达11800元/平米 创近三年历史新高-财经网
plot of land in Beijing’s Tongzhou just went for highest price in 3 years
- School’s out: Chinese graduates fight to be heard – CNN.com
- Bo Xilai inquiry complete: Duowei|Politics|News|WantChinaTimes.com
The official investigation into the disgraced Chinese politician Bo Xilai has been completed and a detailed report has been forwarded to the CCP Central Committee for a decision on his fate, reports Duowei News, an outlet run by overseas Chinese.
- China Bond Market Ready for Takeoff After Bold Moves – Bloomberg
China’s 4.2 trillion yuan ($666 billion) corporate bond market is just 9 percent of its gross domestic product. In the U.S., the $7.9 trillion in fixed-income securities is equal to more than half the size of economic output.
The government wants to change that, to give corporate bonds a bigger role in boosting growth and to divert risk from the state-owned banking system that provides 75 percent of the nation’s credit. A mature bond market also would provide funding for capital-hungry small businesses that have few options beyond the unregulated world of shadow banking, which officials are seeking to wrestle under control. - Goldman Sachs Hires Schwartz Back to Run Asia Pacific – Bloomberg
Goldman Sachs Group Inc. (GS) brought back Mark Schwartz to run its Asian business from Beijing, after an 11-year hiatus during which he ran George Soros’s hedge-fund group and started an investment firm with Raj Rajaratnam.
Schwartz, 57, will also be vice chairman of the firm, New York-based Goldman Sachs said in a statement today. He fills a role left by J. Michael Evans, who served as chairman of the region since 2004 and is now based in New York as vice chairman and global head of growth markets. - Microsatellites: A Bellwether of Chinese Aerospace Progress? | Andrew S. Erickson
- Bus crash kills police officer – China News – SINA English
A police officer was killed when a bus ran into the back of his patrol car in downtown Beijing on Friday afternoon, according to the police.
The best way to read this blog is to subscribe by email, especially if you are in China, as Sinocism is still blocked here. The email signup page is here, outside the GFW. You can also follow me on @niubi or Sina Weibo @billbishop. Comments/tips/suggestions are welcome, and feel free to forward to recommend to friends. Thanks for reading.
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