"Sinocism is the Presidential Daily Brief for China hands"- Evan Osnos, New Yorker Correspondent and National Book Award Winner
Today’s Links:
THE ESSENTIAL EIGHT
1. MSCI delays including China ‘A’ shares’ in benchmark index | Reuters “In our 2015 consultation, we learned that major investors around the world are eager for further liberalization of the China ‘A’-shares market, especially with regard to the quota allocation process, capital mobility restrictions and beneficial ownership of investments,” said Remy Briand, MSCI Managing Director and Global Head of Research. MSCI said the decision around China-listed shares will remain on the 2016 review list for potential inclusion into its emerging market index. The decision may fall outside of its regular schedule of classification reviews, MSCI said in a statement.// MSCI PDF with more details, Shanghai Composite down about 0.5% as of this writing
2. No, China Is Not Reclaiming Land in the South China Sea | The Diplomat – Carl Thayer No, China is not reclaiming land. China is building forward staging bases on artificial islands for its fishing fleet, oil and gas exploration vessels and maritime law enforcement vessels. When China completes building its infrastructure, including long range radar, it will be only a matter of time before military aircraft and naval warships make their appearance. In sum, China has succeeded in legal alchemy by transforming UNCLOS into “international law with Chinese characteristics.” This development will bolster China’s assertion of “indisputable sovereignty” over the South China Sea. As I have argued elsewhere, China is slowly and deliberately excising the maritime heart out of Southeast Asia.// lawfare can work
Related: G-7 Leaders’ Declaration | The White House Maintaining a Rules-Based Maritime Order and Achieving Maritime Security We are committed to maintaining a rules-based order in the maritime domain based on the principles of international law, in particular as reflected in the UN Convention on the Law of the Sea. We are concerned by tensions in the East and South China Seas. We underline the importance of peaceful dispute settlement as well as free and unimpeded lawful use of the world’s oceans. We strongly oppose the use of intimidation, coercion or force, as well as any unilateral actions that seek to change the status quo, such as large scale land reclamation. We endorse the Declaration on Maritime Security issued by G7 Foreign Ministers in Lübeck.
Related: Commentary: South China Sea issue not major concern of Western countries – Xinhua The Group of Seven (G7) industrialized countries — Canada, France, Germany, Italy, Japan, Britain and the United States — voiced their worries in a declaration released at the end of their two-day summit earlier in the day. Although the G7 leaders stopped short of mentioning any specific country in the declaration, it is obvious that the Western countries pointed fingers at China — the largest stakeholder in the South China Sea issue. In fact, no member state of the G7 group is a party to the issue, and unreasonable interference in maritime disputes between China and some Asian countries will not only harm relations between the West and China, but also threaten peace and stability in the Asia-Pacific region. First, there is no need for China to adopt “any unilateral actions” to “change the status quo” of South China Sea islands because they are legally and historically owned by China.
Related: Malaysia Toughens Stance With Beijing Over South China Sea – WSJ Malaysia said Monday it will protest what it called the intrusion of a Chinese Coast Guard ship into its waters north of Borneo, an unusually assertive step by the country amid tensions in the South China Sea. “This is not an area with overlapping claims. In this case, we’re taking diplomatic action,” National Security Minister Shahidan Kassim said in an interview, adding that Malaysian Prime Minister Najib Tun Razak will raise the issue directly with Chinese President Xi Jinping.
Related: Top Aust diplomat denies ‘anti-China front’ | Business Spectator The news came as foreign affairs department chief Peter Varghese meets with Indian foreign secretary S. Jaishankar and Japanese vice foreign minister Akitaka Saiki in New Dehli for trilateral talks on security. According to a report in The Hindu, the officials hope Beijing will agree to a “code of conduct” signed with fellow ASEAN countries, as China’s reclamation activities in the South China Sea continue to raise tensions in the region. Speaking to The Hindu, the foreign affairs department chief confirmed China’s activities in the South China Sea had been a topic of conversation amongst the three nations.
Related: Should the U.S. Change its China Policy and How? | ChinaFile Conversation China Daily’s Chen Weihua-I agree with scholars such as Hugh White who argue that the U.S. should accommodate China and leave space for a rising China. That includes sharing power and letting China take the lead on certain issues. Yet on the South China Sea issue, the U.S. has acted in a way that reinforces the Chinese thinking that the U.S. seeks to curtail China’s growing influence in the region, as reflected in the U.S. rebalancing strategy, the Trans Pacific Partnership and its bid to block the Asian Infrastructure Investment Bank. Freedom of navigation has been cited by the U.S. as a major concern in the South China Sea. China, now the world’s largest trading nation, needs that same freedom of navigation, in its own neighborhood, no less. Does it make any sense to assume that China wants conflict and confrontation when it has enough domestic headaches? A peaceful external environment serves China’s goals best. It’s absurd for some to argue that China needs such external distraction to divert attention from thorny domestic issues. Will the U.S. give China an opportunity to show that it has the wisdom to sort out the South China Sea issues peacefully with its neighbors?
3. After Yangtze Ship Tragedy, A Deleted Report Drives Speculation – WSJ The disappearance of a Chinese newspaper report on the ship that sank in the Yangtze River with hundreds aboard last week has added to speculation over what caused China’s worst nautical disaster in nearly seven decades. The report in the Beijing News, a leading commercial newspaper in the Chinese capital, said the Eastern Star had received retrofits that made the vessel less safe. “Changes to the ship’s structure and additions to its length made it less stable, and increased the risk of capsize,” the report said, citing company officials and ship inspectors that it didn’t name. It also alleged that the ship’s owner maintained “special” ties with local shipping inspectors, particularly during the periods when the vessel was constructed and retrofitted. The article’s allegations couldn’t be independently verified. // 长江沉船曾改造：倾覆危险增加 不利逃生
4. 《在人间》第64期：两个高考生-凤凰新闻 long slideshow contrasting the lives of two high school seniors. One, a privileged kid from Beijing who skipped the Gaokao because he is going abroad for college, the other from a rural Henan family for whom doing well on the Gaokao is seen as his only chance…
5. 经济参考网 – 环保“十三五”规划转向双目标 明年3月上报国务院，投资有望超17万亿 Economic Information says it has some details of the 13th Five Year Plan the Ministry of Environmental Protection is working on, will be sent to State Council next March, may include 1.7 Trillion RMB of investment, will have twin targets of of improving overall environmental quality and controlling total amount of pollutants // 《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，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。
6. 中纪委最近连发重磅文章！反腐败将有新动作 来源：人民日报客户端 记者：雷崔捷、王威 –中纪委又一次成为了媒体关注的焦点，不过这次不是因为拿下了哪个老虎，而是因为官网上的三篇文章。近日，中纪委网站“学思践悟”专栏连发重磅文章——《讲政治 顾大局》、《突出执纪特色》、《创新监督审查方式》，这三篇文章的题目虽然“有些平”，不够抢眼，但细细研读，内容却是分外重要，透露出的信号值得关注，在推动反腐从治标到治本转变的关键阶段，中纪委似乎又在酝酿新的大动作。// Article in the People’s Daily app tries to explain what the CCDI is signaling about the corruption crackdown with its three recent articles…but what is the CCDI really signaling? Still plenty of rumors that the top-level tiger hunt is on hold, some see these recent CCDI pronouncements as confirming that, I am not yet convinced those rumors are true, still think too early to say though clearly there has been a lull recently…
7. Huawei’s epic PR fail | AFR Huawei has spent millions of dollars attempting to burnish its public image outside China in recent years. The telecommunications giant has sponsored sporting teams, hired lobbyists and set up research institutes in an attempt to portray itself as open and transparent. In reality it remains a paranoid and secretive organisation. The Australian Financial Review got a first hand look at this on Friday, as part of a government-organised tour which should have been an opportunity for Huawei to showcase its technology. Instead, things got a little crazy when the issue of national security was raised. In both English and Chinese, Huawei could not have looked more defensive.
8. 《红色娘子军》被判侵权 中芭不服 a fascinating legal case, encapsulates so many of China’s changes over last decades…Liang Xin, the original screenwriter of the 1961 movie “Red Detachment of Women” has won a 120,000 RMB judgement in a copyright infringement case against the Central Ballet Troupe for its production of a ballet version of the story since 2003 // 影片《红色娘子军》编剧梁信一方诉中央芭蕾舞团演出芭蕾舞剧《红色娘子军》侵犯其著作权一案，法院日前作出一审判决，判决中央芭蕾舞团为2003年至今的演出赔偿梁信12万元，并判中芭书面赔礼道歉。中央芭蕾舞团昨天下午举行案情说明会，正式回应此次判决，并称已向知识产权法院提出上诉。说明会邀请了中央芭蕾舞团此案的辩护律师陈界融和芭蕾舞剧《红色娘子军》的原创编导之一蒋祖慧、原创作曲家之一杜鸣心、芭蕾舞剧《红色娘子军》第一代琼花的扮演者之一钟润良和第一代洪常青的扮演者之一王国华，以及该剧第一代演员黄民暄。
BUSINESS, ECONOMY AND TRADE
Stock Investors Have a Harder Time Getting Money for Leveraged Buys-Caixin Financial institutions have become more cautious about lending money to investors playing the A-share market, which is seeing its strongest rally in nearly eight years even as analysts issue warnings of a collapse. Several sources at securities firms, trust companies and asset management firms – the primary sources of capital for leveraged trading – say they have tightened their requirements for borrowing and lowered the amounts investors can get, even though demand is still strong.
两融有望松绑 合约到期料能展期_证券时报网 this report says margin debt coming due soon may be allowed to be rolled over // 近期屡屡被“冷空气”袭扰的两融业务，有望迎来政策春风。 证券时报记者获悉，监管部门在修订融资融券管理办法，其中一项重大变化是，两融合约满6个月可能不用强行平仓了。
Rural farmers chase China’s stock rally-CNBC CNBC’s Eunice Yoon visits a village in China’s Shaanxi province where farmers are sowing their savings into the country’s stock market. // This village was all over Chinese media last week. Here is People’s Daily last week on this Shaanxi “punter’s village” 让钱生钱，农民离股民有多远? says a positive sign of increased financial investment options…even if you believe this is now a massive bubble, the greater fool theory could apply for a long time here given how many people China has, how many are not yet in the market, and how much savings even rural, potential punters have….
Why China is blowing an equity bubble – FT.com The FT just figured this out? // Why, you might ask, would those charming officials in Beijing wish to encourage a bubble? A consequence of the investment boom is that many state-owned enterprises are lossmaking, while state-owned banks have lent excessively to these companies and to local governments. The authorities are urging them to lend more despite the fact that they will never be repaid in full. The obvious way to de-risk this dangerous game of extend and pretend is to recapitalise the state-owned corporate sector. Bubble valuations will make this easier and cheaper.
马化腾演讲：A股互联网妖股在行业根本排不上号-搜狐科技 Tencent’s pony ma speaks at CSRC, says the a share listed internet stocks basically all crap // 马化腾称，对A股市场中连续飙升的妖股不可理解，认为这些企业都在互联网行业中排不上号。他还提到，全球市值最大十家纯互联网公司，中国占五席，能力突出，且发展空间依然巨大。
China’s Early Indicators Show a Property Revival in May – Bloomberg Business Early release surveys, high frequency market prices and big data provide insights on critical aspects of China’s economy ahead of the official numbers. The signs for May are tentatively optimistic, with real estate sales picking up and the factory sector stabilizing.
China Billionaires Beat Bank Crunch by Pledging Shares – Bloomberg Business Collateralizing stock comes with risk. Lenders can call back the pledged shares if stock prices fall to a certain threshold. The Shanghai Composite Index has climbed 59 percent this year, extending a 49 percent gain in 2014, when it was the world’s best-performing benchmark gauge in U.S. dollar terms. The index is trading at 20.5 times estimated earnings, the highest in Asia, according to data compiled by Bloomberg. Paul Gillis, an accounting professor at China’s Peking University, said there’s “irrational exuberance” in the stock market and predicts a major correction.
Uber Spends Heavily to Establish Itself in China – NYTimes Another problem for Uber may be its own drivers. On Taobao, Alibaba’s e-commerce site, vendors run a thriving black market for driver accounts, allowing purchasers to circumvent Uber’s background checks. Jacky also confirmed reports in local news media that many drivers log fraudulent Uber rides using fake passenger accounts to get some of the bonuses the company is offering.
China Shadow Banker Sidesteps Default Concern to Sell Debt – Bloomberg Business A Chinese trust company has sold the first dollar bond since the late 1990s, when the industry’s implosion saddled international investors with heavy losses. Zhongrong International Trust Co. raised $225 million selling three-year notes to yield 6 percent Monday. It’s the only financial institution from China with a BB score from Standard & Poor’s currently to tap the market, and the first since Fujian International Trust & Investment Corp. sold U.S. currency notes in 1997.
China to invest $900b in Belt and Road Initiative| China Daily China Development Bank, one of the country’s policy banks, said it will invest more than $890 billion into more than 900 projects involving 60 countries, as part of its efforts to bolster the initiative, the 21st Century Business Herald reported on Thursday. The newspaper cited the bank’s vice-president Li Jiping that over $10 billion has been poured into projects covering coal and gas, mining, electricity, telecommunications, infrastructure, agriculture, and so on.
USCBC China Economic Reform Scorecard – Marginal Improvement; Impact Still Limited | US China Business Council The latest US-China Business Council (USCBC) assessment of China’s economic reform efforts finds signs of more reform activity but continues to show that this activity has a limited impact on the top concerns of American companies doing business in China. Recent months have seen both positive and negative signals in key areas, such as investment openings and equal treatment for foreign products.
Economists React: China Inflation Eases, But Deflation Risks Rise – WSJ Today’s data support our view that, the usual volatility in food inflation aside, price pressures are rising and that deflation concerns are overplayed. Looking ahead, we expect inflation to rebound over the coming quarters. A sharp fall in pig numbers in recent months will likely put upward pressure on pork price inflation. More broadly, the sharp fall in global commodity prices during the second half of last year will soon provide a much weaker base for comparison that should push up both CPI and PPI, which ought to help assuage any lingering concerns over deflation. — Julian Evans-Pritchard, Capital Economics
Corporate China goes on a borrowing binge – FT.com some pessimists anticipate that this borrowing binge will lead to many more defaults…Despite such alarming numbers, fears about massive defaults may no longer be warranted. Today, a combination of euphoria in the stock market, the central bank’s determination to drive down interest rates in China, and signs that the banks have become more willing to extend credit in recent weeks have led to a diminution of the fear of a debt crisis.
建行鼎新——专访中国建设银行董事长王洪章封面封面文章_财经网 latest Caijing cover story is an interview with China Construction Bank Chairman Wang Hongzhang
兴业银行“前员工”卷款30亿失踪：疑有“内鬼”？财经新京报网 did an Industrial Bank employee run off with 300 million RMB?
POLITICS AND LAW
No role for daughter of former Chinese leader at new state-owned firm, report says | South China Morning Post Li Xiaolin is moved out of China Power Investment after merger creates nuclear reactor giant, Caijing reports. She instead takes up vice-president position at China Datang Corporation // Datang denies 中国电力董事长李小琳调任大唐电力被否认
传李小琳仍未到大唐报到 知情者称情况复杂-新闻频道-和讯网 sounds like quite the setback for Li Xiaolin. So is the end or the beginning of something for her and her family? // 中电投和国家核电重组已水落石出，“一姐”李小琳的去向却继续扑朔迷离，坊间更有“摔门”爆料绘声绘色。李小琳被调往大唐集团担任副总经理的消息曝光后旋即遭内部人士否认。但事实并非如此简单。 “实际上，上周主管部门就和大唐集团打过招呼了”，一位内部消息人士透露，国资委已经就李小琳的任职问题和大唐集团进行了沟通，此事并非空穴来风。但李小琳本人至今未到大唐报到。“情况比较复杂”，上述人士表示，目前还不敢完全确定，不排除后续有变化的可能性。
李庄诉中青报名誉侵权获立案政经频道财新网 Beijing court accepts Li Zhuang’s defamation suit against China Youth Daily for a story it wrote after he was arrested in Chongqing in 2009. The court had previously declined to take but Li re-applied after new rules came into effect reducing the courts’ “discretion” in accepting cases // 据北京东城法院日期为6月8日的《受理案件通知书》显示，“经审查，起诉符合法定受理条件，本院决定立案审理。” 2009年11月，李庄曾为在重庆打黑中被控“涉嫌组织、领导黑社会性质组织罪、故意杀人罪”的龚刚模辩护。12月10日，龚刚模检举李庄，称其教唆他编造“被刑讯逼供”的虚假口供。其后，李庄被重庆警方抓捕并押回重庆，所涉罪名为“辩护人伪造证据、妨害作证罪。当年12月14日，《中国青年报》发表《重庆打黑惊曝“律师造假门”——律师李庄、马晓军重庆“捞人”被捕记》，指李庄为“律师造假门”的“始作俑者”，称“律师李庄的确能‘装’，一手‘捞人’一手‘捞钱’”。文中还称，经调查，李庄在重庆向龚刚模亲友炫耀自己“上面有人”，利用家属捞人心切，夸口组织“跨区域打捞队”，并向京城同行发出信息：“够黑，人傻，钱多，速来！”
最高法：拆迁纠纷一律登记立案国内新京报网 Supreme Court says courts should accept every land reclamation/relocation dispute case // 昨日，在最高法院新闻发布会上，最高法院新闻发言人孙军工称，从5月1日开始，立案登记制实施一个月以来，全国各级法院共登记立案113.27万件，同比增长29%。孙军工表示，拆迁纠纷等案件，各级法院一律登记立案。
四川教师因争高铁游行被刑拘 Linshui teacher arrested over recent rail line protests, strange case, he had applied to police to protest, was turned down, so he did not join and told people not to go…but still arrested // 兰明川在被约谈后，遂中止了一切与“保路”游行有关的行为。据张庭源了解，他后来通过QQ、微博、微信，多次表达了不同意、不参加、不鼓励未经批准的游行活动。然而邻水县公安局在5月22日以涉嫌非法集会、游行、示威罪将兰明川刑事拘留，最近又以聚众扰乱公共场所秩序、交通秩序罪将其逮捕。
The China Quarterly – The Rise of the Chinese Security State – Cambridge Journals Online looks interesting but don’t have access to CQ // Over the past two decades, the Chinese domestic security apparatus has expanded dramatically. “Stability maintenance” operations have become a top priority for local Chinese authorities. We argue that this trend goes back to the early 1990s, when central Party authorities adopted new governance models that differed dramatically from those of the 1980s.
Senior leader urges progress of Party members’ discipline awareness – Xinhua Senior leader of the Communist Party of China (CPC) Liu Yunshan has called for self-discipline and honesty among Party members through political education. Liu, a member of the Standing Committee of the CPC Central Committee’s Political Bureau, made the remarks during an inspection tour in Fujian Province in east China from Saturday to Monday. The visit focused on a national campaign to promote a series of requirements for officials to improve their life and work style raised by President Xi Jinping in March last year. The concept means to be strict in moral, use of power and disciplining oneself and to be honest in decisions, business and behavior. // 三严三实
公安部：建立居民身份证异地受理、挂失、招领制度-新华网 据公安部网站消息，国务委员、公安部部长、部全面深化改革领导小组组长郭声琨6月8日主持召开部全面深化改革领导小组第十次（扩大）会议，研究审议关于建立居民身份证异地受理、挂失申报和丢失招领制度的意见。郭声琨强调，要以问题为导向，以改革为动力，以法律为依据，以信息化为支撑，建立居民身份证异地受理、挂失申报和丢失招领制度，为群众办理居民身份证提供更多便利，为居民身份证的社会应用创造更安全的环境。
经济参考网 – 中央和省级政府将推“收费清单” 逾万亿收费基金面临全面清理规范，清单外收费一律不得执行 继“权力清单”之后，中央和省级政府将向社会公开“收费清单”。《经济参考报》记者获悉，我国正在全国范围内清理收费和政府性基金，清理规范后保留的行政事业性收费、政府性基金和实行政府定价的经营服务性收费，将于今年三季度由中央和省两级政府编制目录清单，并向社会公布。每年一万多亿元的行政事业性收费和政府性基金的征收将进一步走向透明化，清单之外的涉企收费一律不得执行。 据悉，中央部门目前正对本部门、本系统、所属单位、主管的行业协会商会及举办企业的收费进行全面清理，9月底前公布取消、调整和规范全国性及中央部门和单位收费的政策措施，编制并公布全国性及中央部门和单位收费基金目录清单。
内地推出公民网络身份识别系统 公安部签发eID_凤凰资讯 参考消息网6月9日报道 外媒称，除了个人身份证以外，中国公民可能增加一个网络电子身份标识（eID），当局称这能避免公民个人信息的泄露，但也有分析认为，有关部门对公民网上活动的追踪掌握也会得到强化。 据新加坡《联合早报》网站6月9日报道，上海《新民晚报》报道称，该报记者从公安部第三研究所获悉，独立于公民身份信息系统之外的“公安部公民网络身份识别系统”，已通过国家密码管理局的安全审查，开始向公民签发eID，用虚拟身份的推广，避免公民个人信息的泄露。// PSB rolling out eIDs for citizens’ online activities
《红旗文稿》斥历史虚无主义：百姓都懂的道理有些公知却不懂舆论场澎湃新闻-The Paper 为什么一些连普通老百姓都懂的道理，反而一些持有历史虚无主义观点的学者和公知却不懂呢？道理很简单。这些持历史虚无主义者打着澄清历史真相、解密历史档案等学术研究的幌子，实际上却是为了实现巧妙地攻击党主流意识形态的目的。
庆安官员进京举报领导被打死-财经 Qing’an, Heilongjiang local disciplinary inspection commission official beaten to death after several attempts at petitioning in Beijing to expose local corruption…shockingly the local police have still not cracked the case.. // 黑龙江庆安纪委干部被蒙面人群殴致死，生前曾数次赴京举报县领导。当地官方破案毫无进展，尸体仍保存在冰棺中。
青海体育局原局长坠楼身亡 another depressed official jumps to his death, this one the former head of the sports bureau in Qinghai // 今天上午，青海省体育局原党组书记、局长冯建平从位于西宁市26楼的家中坠亡。冯建平于2013年11月退休，曾因违纪受党内警告处分。
河南落马政府副秘书长系官二代 其父15年前被查新闻腾讯网 recently detained Henan provincial official a second generation official, and second generation corrupt official
法官助理制度的探索市场与法治《财经》杂志杂志频道首页财经网 – CAIJING.COM.CN Caijing looks at “Judge’s Assistants” // 本本轮司法体制改革中的新增角色——法官助理，是继员额法官之后又一引人关注的群体。 法官助理制度的改革，将构建“法官+法官助理+书记员”的新型审判单元，并改变以往实践中的“书记员—助理审判员—审判员”的晋级模式。 法官助理在法律上是什么角色，未来是否可以成为法官，晋升空间在哪里，法官助理配备越多越好吗？
British Investigator Hired by Glaxo Is Freed From China Prison – NYTimes The Shanghai authorities released Mr. Humphrey, 59, early Tuesday morning and admitted him to a hospital because of poor health, his family said. Once tests are conducted, close friends and relatives say, he is expected to be issued an emergency passport and deported to Britain by the Chinese authorities.
团结奋斗 排除万难 实现中国梦-重要文章-求是网 Guangming Daily on commemorating the 70th anniversary of Mao’s speech “The Foolish Old Man Removed Mountains”
从苏联解体看新自由主义对社会主义改革的危害性 This issue of Red Flag Manuscript also has another piece reminding us of the dangers of neo-liberalism given its role in the collapse of the USSR // 来源：《红旗文稿》2015/11 作者：黄星清 -苏联解体，毫无疑问是20世纪最重大的政治事件之一。它不仅代表了20世纪冷战的结束，而且还导致了以新自由主义为指导思想的美国成为世界上唯一的超级大国。虽然苏联已经成为了过去，但是在中国，对苏联解体的讨论却从来没有停止过。因为，苏联作为世界上第一个社会主义国家，它的解体毫无疑问将给社会主义中国以深刻的警示。
FOREIGN AND DEFENSE AFFAIRS
Philstar-Philippines to submit 300-year-old map to UN in case vs China The Philippine government will be submitting to the United Nations Tribunal on the Law of the Sea in The Hague this week an almost 300-year-old map of the Philippines showing the disputed Scarborough Shoal being part of Philippine territory as far back as three centuries ago. The map debunks the so-called nine-dash-line China has been using as proof of its claim over the South China Sea. It also locates Scarborough shoal, then known as “Panacot,” also called “Panatag” by Filipinos, off the shores of Luzon, then known as Nueva Castilla. Scarborough shoal has been a source of conflict between the Philippines and China. The Jesuit priest Pedro Murillo Velarde had the map published in Manila in 1734. It surfaced in 2012 among the possessions of a British lord, who put it up for auction at Sotheby’s in London, where Filipino businessman Mel Velarde bid and got it for £170,500 ($266,869.46 or P12,014,463.09).
警惕“军队国家化”的错误思潮 Red Flag Manuscript reminds readers that the nationalization of the military helped bring down the USSR // 来源：《红旗文稿》2015/11–作者：李辽宁- 近年来，社会上出现了“军队非党化、非政治化”和“军队国家化”的思潮，对这个问题的理论分析和回答直接关系到人民军队的政治性质及其与国家的关系，关系到是否坚持党对于军队的绝对领导这一重大问题。为此，需要深刻剖析“军队非党化、非政治化和军队国家化”论调的实质及其危害。
China Battle Tank Maker Trash Talks Russian Rival Online – Bloomberg Business Norinco is resorting to social media to lob military-grade taunts at its Russian rival’s most advanced tank. It took to popular messaging service WeChat in May to tout its top-line armored vehicles… and trash-talk the competition. The Beijing-based company took aim at a widely reported and embarrassing incident involving the T-14 Armata, the latest product of Russia’s military machine. One of the high-tech tanks ground to an abrupt halt on Red Square during rehearsals for the 70th anniversary celebrations of World War II victory.
HONG KONG, MACAO AND TAIWAN
人民日报评论员：香港普选法案合宪合法合情合理–观点–人民网 Another p1 People’s Daily commentary on the HK election // 中央推进香港行政长官普选的诚意和决心坚定不移，坚守原则和底线不动如山。香港社会支持普选法案通过的主流民意清晰明确，不可逆转。香港少数人企图以所谓的“国际标准”取代基本法的规定，以他们的“一己私利”取代香港整体利益，是不能允许的。因此，支持还是反对普选法案，是支持还是反对民主、拥护还是反对“一国两制”和基本法的试金石。我们希望，手握投票权的立法会议员，拿出政治智慧和勇气，以大局为重，对这个切实可行的好法案投下赞成票，让香港的民主阔步向前。 《 人民日报 》（ 2015年06月10日 01 版）
TECH AND MEDIA
China to Test Homegrown Chips in Challenge to Foreign Makers – Bloomberg Business The Ministry of Public Security is looking for a province to test radio-frequency identification chips developed as part of a national push to reduce a reliance on foreign technology in sensitive areas, said Gao Yuan, a researcher with the ministry’s First Research Institute. China’s plan threatens to erode the market dominance of companies such as NXP Semiconductors NV and Infineon Technologies AG.
Alibaba’s Secure Software Helps China Cops in Foreign Tech Purge – Bloomberg Business The Alibaba software provides users an encrypted parallel operating system that includes a secure “police chat” messaging platform, said Lu Yu, assistant to the director of the Ministry of Public Security’s First Research Institute. Alibaba’s Professional Mobile Operating System has been loaded into handsets made by China’s ZTE Corp. and employed in police work at home and abroad ahead of a wider rollout. // this won’t help with CFIUS if Alibaba tries to buy something big in the US like Yahoo
Chinese social ecommerce startup raises $10M+ from GGV Red – called Xiaohongshu (Little Red Book) in Chinese – is a social discovery ecommerce platform aimed at helping people buy discounted brand-name goods from overseas // The real Maoist 2.0?
Tencent Customers Come for the Music, Stay for the Perks – WSJ Tencent is trying to do something few companies have managed to pull off yet in China: get consumers to pay for digital music. In a country where piracy is rampant and Internet users have long been accustomed to getting free entertainment, Tencent’s paid subscription model for online music represents a bold attempt at cracking a very challenging but potentially large market.
SOCIETY, ART, SPORTS, CULTURE AND HISTORY
Ai Weiwei Trades Politics for Subtlety in First Solo Exhibition in China – NYTimes.com On Saturday afternoon, tourists, fans, and family and friends of the artist flocked to the opening of Mr. Ai’s first-ever solo exhibition in China to see the show and, more important for many, to catch a glimpse of the famous rebel artist himself. Dressed in a green short-sleeve shirt, khaki shorts and navy canvas shoes, Mr. Ai appeared to be in good spirits as he fielded an unending stream of requests for photographs, selfies and autographs. When asked how it felt finally to be able to attend an opening for one of his exhibitions, the typically outspoken artist had only a few words to say. “It’s surprising,” he said, quietly. “It feels different.”..In addition to the installation in the Galleria Continua and the Tang Contemporary Art, which runs through Sept. 6, Mr. Ai has two more solo exhibitions in Beijing opening this month, one at Magician Space, which opened on Monday, and one at Chambers Fine Art, which opens on June 13.
China gives its yuan to Broadway-China Daily China, with its growing appetite for Western musical theater productions, is beginning to put its money on Broadway. Titles nominated for the Tony Awards at Radio City Music Hall in New York – Hand to God, Something Rotten! and An American In Paris – all have investment from Chinese companies, according to The Wall Street Journal. An American in Paris was nominated for 12 Tonys, including Best Musical. The musical, starring Robert Fairchild and Leanne Cope, is based on the 1951 movie of the same name starring Gene Kelly.
Broadway in China! It’s a Mess! – Bloomberg Business Comically low receipts and ushers with ‘No Flash Photography’ signs that flash. Why do producers keep trying? Hint: 1.4 billion people.
Fatal Fire Presents China’s Private Nursing Homes with Host of Problems-Caixin Blaze that killed 38 people at elder care facility in Henan seen hurting prospects for private homes, which experts say are badly needed to meet demand
“鲁山大火”背后的农村养老困局深度新京报网 The Beijing News looks at the terrible state of rural elder care in the wake of the Lushan fire tragedy // 5月25日，河南鲁山县一老年公寓发生火灾，造成38死6伤。事发后，老人居住的易燃彩钢板房及当地形同虚设监管成为媒体质疑焦点。而灾难背后的现实是，在公办机构床位稀缺，准入严苛背景下，民办养老机构往往是唯一选择。
人民日报关注“网骂”现象：这是一种病 得治新闻腾讯网 日前，人民网舆情监测室(微博)发布了《网络低俗语言调查报告》，报告列出了2014年25个“网骂”用词使用情况排名。“网骂”现象，再次引起舆论关注。说起“网骂”，不少人都有这样一种感觉：我们在网络上讨论问题时所遭遇的不文明用语，比在现实中所遭遇的要多得多。更让人诧异的是，不少平日里的谦谦君子，一到了网上，像变了一个人似的，动辄恶语相向，一言不合便“问候”别人家人，让人瞠目结舌。
高校教师不能批孔孟吗：驱逐复旦教授刘清平缘何而起？思想市场澎湃新闻-The Paper 2015年，注定是不平凡的一年。因为必然的数学的原理，它是新文化运动爆发一百周年；年初，有博士生返乡笔记，追问知识还有用吗？紧接着，有纪录片追问发展新模式；然后，又有《平凡的世界》热播，追问奋斗还能改变命运吗？然后是新加坡前总理李光耀逝世，引起关于新权威主义模式有效性的探讨。6月，则有复旦大学刘清平教授事件。 所谓刘清平教授事件，当然是出自我的概括，为了叙述的方便。刘清平是复旦大学社会科学高等研究院教授。有人翻出他去年在微博上谩骂孔子、孟子的言论，发起“将刘清平逐出复旦”的活动。这个倡议得到了中国儒教网、大同思想网以及若干儒学研究者、信奉者等的呼应。
ENERGY, ENVIRONMENT, SCIENCE AND HEALTH
China’s “new normal”: structural change, better growth, and peak emissions | Grantham Research Institute on climate change and the environment Key findings China is moving decisively to a “new normal” – a development model based on the notion of better quality growth. Under China’s new development model, its GHG emissions are likely to peak by 2025, and could well peak earlier than that. China’s transformation has profound implications for the global economy, and greatly increases the prospects for keeping global GHG emissions within relatively safe limits. To reduce its emissions at a rapid rate, post-peak, China will need to deepen its planned reforms in cities and in the energy system, supported by a concerted approach to clean innovation, green finance and fiscal reforms.
China to learn from U.S. national park system – Xinhua The National Development and Reform Commission (NDRC) and the U.S. Paulson Institute on Monday inked an agreement to cooperate on a national park system for China over the next three years. Nine regions have been chosen to trial national park systems in a pilot program that will run until the end of 2017. The regions are Beijing, Jilin, Heilongjiang, Zhejiang, Fujian, Hubei, Hunan, Yunnan and Qinghai, according to a guideline on reform issued by the State Council in May.
China’s big biotech bet starting to pay off | Reuters Years of pouring money into its laboratories, wooing scientists home from overseas and urging researchers to publish and patent is starting to give China a competitive edge in biotechnology, a strategic field it sees as ripe for “indigenous innovation.” The vast resources China can throw at research and development – overall funding more than quadrupled to $191 billion in 2005-13 and the Thousand Talents Program has repatriated scientists – allow China to jump quickly on promising new technologies, often first developed elsewhere.
AGRICULTURE AND RURAL ISSUES
国务院办公厅发文：城乡教职工编制将统一标准国内新京报网 近日，国务院办公厅发文，要求改进乡村教师评审标准，各地要依法依规落实乡村教师工资待遇问题。文件规定，乡村中小学教职工编制按照城市标准统一核定，其中村小、教学点编制按照生师比和班师比相结合的方式核定。
经济参考网 – 17省份出台“地方版”户改方案 涉及农村土地问题普遍“模糊”处理 Economic Information looks at hukou reform plans from 17 provinces // “地方版”户籍制度改革意见正加速出台。《经济参考报》记者梳理各地公开材料发现，截至目前，已有17个地区推出省级深化户籍制度改革的实施意见。在尚未出台省级实施意见的地区，也推出了一些市级层面的改革意见。 从意见内容看，几乎所有省份都提出建立居住证制度，取消农业和非农业户口的性质区分，以及细化落户政策等，但在涉及土地问题时多采取“模糊处理”的方式，农民原有的土地承包经营权、宅基地使用权该如何保障，目前还没有统一的解决方案。
EDUCATION
Controversial Undercover Report Reveals China’s College Entry Examinations Rife with Fraud | The Nanfang The Southern Metropolis Daily, a newspaper in Guangzhou, published a report Sunday that said one of its reporters had successfully infiltrated a gang that specializes in providing paid substitutes to not only take the gaokao, but ensure a passing grade…The undercover reporter revealed that the “cheaters-for-hire” were mostly Hubei university students who were each able to earn between RMB 70,000 and RMB 100,000, with higher test results winning higher payments. One parent is to have paid one million yuan ($161,000) after the illegal gang helped garner a spot at a top Chinese university for his child.
Cabinet Unveils Plan for Improving Education in Rural Schools-Caixin One change will see teachers at primary and secondary schools in China’s rural regions paid the same as educators in cities
FOOD AND TRAVEL
Tracking China — Now Even Better – Tracking China an excellent resource about riding the rails in China
JOBS AND EVENTS
U.S.-China Policy Exchange Fellowship, Brookings-Tsinghua Center/John L. Thornton China Center | Brookings Institution The Brookings-Tsinghua Center at the School of Public Policy and Management at Tsinghua University and the John L. Thornton China Center at the Brookings Institution invite applications for the award of one or two full-time resident fellowships for policy-oriented research for the 2015-2016 academic year. The fellowship program is unique in that U.S.-China Policy Fellows spend significant amounts of time in both Washington, D.C. and Beijing.
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