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SCHWEIZER BOTSCHAFT IN BEIJING
EMBASSY OF SWITZERLAND IN BEIJING
AMBASSADE DE SUISSE EN CHINE

Der wöchentliche Presserückblick der Schweizer Botschaft in der VR China
The Weekly Press Review of the Swiss Embassy in the People's Republic of China
La revue de presse hebdomadaire de l'Ambassade de Suisse en RP de Chine
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  9-13.4.2018, No. 713  
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Mongolia

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Foreign Policy

In surprise move, China to mount live-fire navy drills in Taiwan Strait 'in show of support for Russia over Syria' (SCMP)
2018-04-13
In a surprise move, Beijing announced on Thursday that it would hold live-fire drills in the Taiwan Strait next week - something that is both a message to Taipei and a show of geopolitical support for Russia during its time of friction with the United States, military observers said. The announcement came just hours after Chinese President Xi Jinping, who also chairs the powerful Central Military Commission, was on the southern island of Hainan to inspect the biggest naval parade in the country's history, a massive flexing of naval muscle amid China's growing rivalry with the US. Macau-based military expert Antony Wong Dong said military conflict between the US and Russia in Syria could "break out at any time" and the drill in the Taiwan Strait was meant to be a show of support to China's strategic partner Russia, diverting attention from the crisis in Syria after US President Donald Trump threatened a strike against Syrian forces. "It's very likely that as Russia's strategic partner, China [is using its] navy to show its political support to Russia at such a sensitive moment," Wong said. "The People's Liberation Army Navy was ordered to move their drills to the Taiwan Strait to test their emergency response in combat." The live-fire drill is expected to take place on April 18, making it the first naval exercise in the waters since September 2015, which occurred in the lead-up to the self-ruled island's presidential election. The election was won by the independence-leaning Democratic Progressive Party's candidate, Tsai Ing-wen, who has yet to recognise the "1992 consensus", which Beijing says is the foundation for cross-strait dialogue. Thursday's parade involved China's first aircraft carrier, the Liaoning, about 50 other warships as well as more than 10,000 troops and nearly 80 aircraft, including jets, bombers and early-warning planes. On board the Liaoning for the first time since the vessel was declared combat-ready, Xi urged the troops to stay vigilant and be ready to defend China's sovereignty and national interests, as well as safeguard regional peace and stability, according to the defence ministry. The display in the South China Sea followed exercises by Chinese and US strike groups in the contested waters. On Tuesday, the USS Theodore Roosevelt staged what it described as a routine training exercise en route to the Philippines in the waters, with 20 F-18 Super Hornet fighter jets performing a take-off and landing exercise. Miliary experts said the parade, which involved most of the Chinese navy's advanced warships and aircraft, sent a strong message to the outside world that the PLA was on alert for growing challenges in the waters, where China has territorial disputes with several neighbours. Song Zhongping, a former member of China's Second Artillery Corps, said all branches of the military had ramped up live-fire drills since Xi presided over another large-scale military parade at the Zhurihe Combined Tactics Training Base in Inner Mongolia last year. "The drill near the waters of Sanya in the South China Sea also declare the PLA's firm determination to defend its sovereignty in the contested area, and the navy's capacity to protect China's interests along the belt and road," Song said, referring to the country's ambitious international infrastructure and energy initiative. ^ top ^

China, Netherlands agree to exploit advantages of complementarities (Xinhua)
2018-04-12
China and the Netherlands on Thursday agreed to make use of their advantages of complementarities to promote pragmatic cooperation. Chinese Premier Li Keqiang made the remarks while holding talks with Dutch Prime Minister Mark Rutte in Beijing. Regarding the Netherlands as an important partner in the European Union (EU), the relations between China and the Netherlands have a sound momentum of development, Li said. The two countries established a comprehensive partnership that stresses openness and pragmatism in 2014, Li said, expressing that China is willing to work with the Netherlands to strengthen high-level visits and expand cooperation in various areas. Li said China is ready to give play to the advantages of complementarities to deepen cooperation in agriculture, finance, technology, people-to-people exchanges, and dealing with climate change. China is willing to import more high-quality agricultural products and high-tech products from the Netherlands, Li said, noting that China welcomes more companies and investment from the Netherlands. Li also expressed his hope that the Netherlands will actively participate in the Belt and Road Initiative to benefit the two countries and peoples. At present, the international political and economic situation faces uncertain and unstable factors, Li said, noting that China hopes that the EU maintains unity and development. Li said China is willing to work with the Netherlands and the EU to uphold the multilateral trading system, support multilateralism and free trade to promote economic globalization to be more open, inclusive, balanced, and mutually beneficial. Li said he hopes the Netherlands will play the role of a bridgehead in China-Europe economic cooperation, and promote negotiation on an investment agreement between China and Europe. Li said China will deepen its opening-up and he hopes that all countries worldwide will become more open to each other to achieve mutual benefits. Rutte said the current bilateral ties are developing at a high level, and the Netherlands is willing to work with China to strengthen strategic communication and dialogue, and deepen pragmatic cooperation. The Netherlands firmly supports free trade and opposes protectionism, Rutte said, noting that his country is ready to promote the synergy of development strategies with China. Both sides also exchanged views on international and regional issues of common concern. Prior to the talks, Li held a welcoming ceremony for Rutte. Li Zhanshu, chairman of the Standing Committee of the National People's Congress (NPC), also met with Rutte on Thursday, and both sides agreed to provide legal guarantees for cooperation between the two countries and jointly promote globalization. ^ top ^

Chinese premier calls for more pragmatic cooperation with Indonesia (Xinhua)
2018-04-12
Chinese Premier Li Keqiang met with Indonesia's Presidential Envoy and Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan in Beijing on Thursday. Li said China and Indonesia share broad common interests, and China is willing to link the Belt and Road Initiative with Indonesia's development strategies. China and Indonesia lifted bilateral ties to a comprehensive strategic partnership in 2013. Li said China is willing to work with Indonesia to maintain close high-level visits, make use of their advantages of economic complementarities, cooperate more in infrastructure, investment, and industrial capacity to benefit the two peoples and contribute more to regional peace, stability and prosperity. Pandjaitan said Indonesia is willing to promote the synergy of development strategies of two countries and deepen pragmatic cooperation to realize win-win results. Chinese State Councilor and Foreign Minister Wang Yi also met with Pandjaitan on Thursday. ^ top ^

China's largest maritime military parade showcases aircraft carrier battle group (Global Times)
2018-04-12
China's Central Military Commission held the country's largest ever maritime military parade in the South China Sea on Thursday, which for the first time featured the country's aircraft carrier strike group and the most advanced weaponry of the Chinese People's Liberation Army (PLA). Chinese President Xi Jinping, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission reviewed the warships and addressed the PLA sailors, PLA Daily reported. Xi said the need to build a strong navy "has never been more urgent than today," and he called for efforts to build a first-class navy in the world, the Xinhua News Agency reported. Forty-eight warships, 76 aircraft and more than 10,000 sailors and soldiers took part in the parade which was hailed as "the biggest maritime military parade since the foundation of the People's Republic of China in 1949 and a heroic display of the PLA Navy in the new era," the PLA Daily reported on Thursday. It was the first maritime military parade held in the South China Sea and to be open to the public. China's aircraft carrier, the Liaoning, joined the parade for the first time. All combat systems of the PLA Navy and 10 air echelons joined the parade. The most advanced warships, including the Liaoning, type 052D destroyers, type 052C destroyers, type 071 amphibious transport dock and type 093 submarine took part in the parade," Song Zhongping, a military expert and TV commentator, told the Global Times on Thursday. The parade showcased the PLA's aircraft carrier group and its enhanced combat capability in the high seas, said Song, adding that China's upgraded navy signifies the PLA is not afraid of war and is capable of winning any battle. "China's strength in protecting its national maritime interests has grown. The Thursday parade could also serve as a deterrence to maritime hegemony, making adversaries think twice before attempting to harm China's core national interests," Song said, adding that the parade was also an education on national defense and patriotism. China Central Television (CCTV) reported on Thursday that destroyers involved in the parade were sailing to the Taiwan Straits where they are to conduct drills. China's Fujian Maritime Safety Administration announced live-fire drills would be conducted in the Taiwan Straits on April 18. Holding the parade in the South China Sea was a strategic move as the waters are a potential combat zone, Li Jie, a Beijing-based naval expert, told the Global Times on Thursday. He noted that the US aircraft carrier USS Theodore Roosevelt operated in the South China Sea on April 10. Footage streamed on CCTV showed soldiers and sailors dressed in battle fatigues, which indicated that the parade was also a real combat training exercise, Li said. Strengthening the PLA Navy's combat capability in the South China Sea is an important strategy, a military expert who requested anonymity told the Global Times. Despite joint efforts made by China and Southeast Asian countries on easing South China Sea issues, some Western countries keep provoking China's sovereignty in the area, he said. Some countries which are the real threats to regional security may accuse the PLA of "flexing its muscles" or "militarizing the South China Sea," said Song, adding that they have no right to make irresponsible remarks about China's efforts to protect its core national interests. Another military source who requested anonymity told the Global Times on Thursday that the US has been playing the South China Sea card for a long time, but it will soon lose its impact. No one can prevent China from claiming reasonable and legal rights with its rising strength, the source said. ^ top ^

FM slams reports saying Beijing denied visas to Australian officials (Global Times)
2018-04-12
China hopes Australia can meet Beijing halfway and make positive efforts to improve cooperation and mutual trust, a foreign ministry spokesman said Thursday after Australian Prime Minister Malcolm Turnbull conceded "some tension" in relations. China always persists in developing friendly relations with nations on the basis of the Five Principles of Peaceful Coexistence that include mutual respect and non-interference in each other's internal affairs, ministry spokesman Geng Shuang said at a daily briefing. Turnbull said Thursday that the country's legislation aimed at preventing foreign interference in politics had soured ties with China, Reuters reported. "I would say that there's obviously been, there's clearly been some tension in the relationship following the introduction of our legislation about foreign interference," Turnbull was quoted as saying by the Washington Post. Any statement criticizing China for interfering or infiltrating other countries is completely groundless, and we expect relevant parties to "respect the truth and hold a correct view on China's development," Geng said. Geng also slammed reports saying this week China had denied visas to Australian government officials to attend a major annual trade show. "They are nonsensical. Such a thing did not ever exist," Geng said. ^ top ^

China-Philippines oil and gas exploration deal for South China Sea 'near' (SCMP)
2018-04-12
The Philippines and China are forging ahead with plans for joint oil and gas exploration in the disputed South China Sea, even as both sides recognise and accept each other's firm "red lines" in protecting their sovereignty claims. In an exclusive interview with the South China Morning Post, the Philippine Foreign Secretary Alan Peter Cayetano said that a solid guarantee from China that it would not build new installations on Scarborough Shoal – a rocky outcrop claimed by both Beijing and Manila – formed the basis of the cooperation between the two neighbours. "We separate the two [issues]... China drew some red lines. We drew some red lines. Our red line is building in uninhabited areas including Scarborough," Cayetano said. Cayetano, Philippine President Rodrigo Duterte and other senior Philippine leaders are in Hong Kong for a two-day visit following their attendance at the Boao Forum in Hainan. The top Philippine diplomat said the start of exploration efforts was "quite near" and contingent on China agreeing to a legal framework on the process, following the set-up in February of a special panel on the technical details of the venture. "If they [the Chinese] agree, we can have the exploration right away. It could take a week, it could take six months," said Cayetano. The foreign secretary's comments are the latest sign that the Philippines under Duterte is going all out to strengthen ties with Beijing that had been strained following the 2016 ruling by The Hague's Permanent Court of Arbitration that declared China's claim to vast areas of the South China Sea were invalid. Along with China and the Philippines, Malaysia, Brunei, Taiwan, Vietnam and Indonesia all have claims over different sectors in the waterway, through which some US$3.4 trillion in trade passes annually. China claims 80 per cent of the waterway under its U-shaped nine-dash line maritime boundary. Bilateral ties plummeted after Duterte's predecessor Benigno Aquino in 2013 filed the suit that led to the 2016 ruling. But soon after the arbitral court's non-binding decision – which came months after Duterte came to power – the newly minted president sharply repudiated Aquino's hawkish stance. Instead, in multiple visits to Beijing he said he was keen on bringing the country closer under China's diplomatic umbrella, breaking from a decades-old foreign policy of tightly embracing the United States. The Philippines remains one of just two US treaty allies in Southeast Asia, along with Thailand. Cayetano said Duterte's pragmatic approach of diplomatic neutrality and keeping the territorial dispute separate from overall ties heralded a "pendulum swing" in the country's China policy. China has pledged billions of dollars in investment in the Philippines in the two years since Duterte came to power. "The arbitration award is there. Just because we don't shove it in the face of everyone in multilaterals doesn't mean it has no value. We have public opinion, and remember, China has much at stake in having peace and stability too," Cayetano said. "Before we weren't talking and there were no red lines and might was right. But now we are being treated as a sovereign equal," he added. Asked if there were concerns of asymmetry in negotiations given China's vastly greater economic and diplomatic clout, Cayetano said Manila had much to lose if it did not even try to get a fair shake. "There are going to be sensitive parts, emotional parts, ups and downs in talking about the South China Sea," the foreign secretary said. "But we already lose if we don't try. What's the alternative? If we follow the Aquino administration's strategy, we'll just be shouting and be heroes to the rest of the world for standing up for ourselves but [China] would continue building et cetera." Still, Manila will not waver on its territorial claims in the disputed waters. "We are taking all diplomatic actions about it... including discussing it in bilateral and in some multilateral settings," Cayetano said. "But for a peaceful settlement, all parties – including non-claimants like the United States – must refrain from aggravating the situation," the foreign secretary said. The US navy has increased the frequency of its so-called freedom of navigation exercises through the disputed waters as part of measures signalling to China that it will not tolerate any restrictions to nautical movement in the waterway. Washington views China's construction of islands and military facilities in the South China Sea as an affront to international law. But Cayetano said this was exacerbating the situation. Cayetano said while the Chinese were not "correct" in putting so-called defensive assets on islets it occupies in the waterway, such actions were understandable given the fact that "other claimants are doing it and the Western maritime powers are sailing left and right". He added: "If the US was China, wouldn't the US build its defensive posture around the South China Sea?" On overall bilateral ties, Cayetano said he was optimistic further inroads would be made because of the close rapport between Duterte and Chinese President Xi Jinping – despite their vastly different personalities. "They are two different people, but two people who deeply believe in their countries and deeply believe that they can at this juncture in history choose to be either useless or to be a game changer," he said. "They are two people who want to find the solution to a common problem and don't want to fight each other." ^ top ^

Xi Jinping's promise to open China's markets? It's 'nothing to do' with Trump's trade war threats, say Beijing officials (SCMP)
2018-04-12
Chinese President Xi Jinping's pledge to further open up its market to foreign investors has "nothing to do" with the recent tit-for-tat dispute with the United States, a spokesman for China's commerce ministry said on Thursday. US President Donald Trump has said he was "very thankful" for Xi's pledges in a speech at the Boao Forum on Tuesday, but the authorities in Beijing have been trying to undo the impression that they were bowing to pressure from Washington. On Wednesday Geng Shuang, a Foreign Ministry spokesman, delivered a similar message, saying the measures announced by Xi – including better protection of intellectual property rights and reduced tariff on cars – were not related to the looming trade war. Xi's speech on Tuesday, in which he reiterated his support for globalisation and pledged to open China's financial sector and allow foreign ownership of car factories, was seen in Washington as an olive branch. Trump tweeted after Xi's speech: "Very thankful for President Xi of China's kind words on tariffs and automobile barriers … also, his enlightenment on intellectual property and technology transfers. We will make great progress together!" White House press secretary Sarah Huckabee Sanders told reporters on Wednesday that the US was "encouraged" by Xi's words, although Washington wants to see "concrete actions from China". However, China's two most powerful ministries, along with its state-owned mouthpieces, argued that China's decisions had been made on its own terms and said it was wrong to perceive this as making compromises. State media is also telling its domestic audience that China is not yielding to the US. "China's reform and opening up is entirely autonomous, and it is gradually expanding and progressing according to its own timetable and road," People's Daily said in a commentary published on Tuesday. On Thursday Gao Feng, the Commerce Ministry spokesman, said there were no negotiations between China and the US "at any level". Gao also said that Washington had not shown any sincerity about talks. "It's impossible for China to engage in any negotiation when [the US] is unilaterally threatening us," he added. Trump said this month that his administration might levy punitive tariffs on an additional US$100 billion worth of Chinese imports on top of an earlier threat of a similar levy on US$50 billion worth of goods. China has responded with punitive tariffs on US$50 billion worth of US imports, including soybeans, pork and aircraft. The authorities in Beijing have also responded in kind to America's rhetorical attacks. "The US shall not threaten China with the sticks of unilateralism and protectionism," Gao said. "China has made full preparations, and if the US takes any action to escalate the situation, China will resolutely fight back without any hesitation." ^ top ^

China and India border tensions flare up again ahead of Indian Prime Minister Modi's visit (SCMP)
2018-04-11
A fresh war of words has broken out over the long-simmering border dispute between Beijing and New Delhi just weeks before an expected visit by Indian Prime Minister Narendra Modi to China. Although the two sides have been working to repair relations since last year's stand-off in Doklam, analysts have cautioned there is still a high degree of mistrust between the two sides, especially given Delhi's caution about China's growing influence in India's backyard. Officials in China and India have been working on a series of intense high-level engagements. Indian External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman are expected to visit China later this month to attend ministerial meetings of the Shanghai Cooperation Organisation. The visits are designed to pave the way for Modi to meet Chinese President Xi Jinping when he attends a summit of the bloc, which India joined as a full member last year, in the eastern port city of Qingdao in June. In the latest test for their rapprochement efforts last year's stand-off, Beijing urged New Delhi to respect the so-called Line of Actual Control – the de facto border between the two. China is also reported to have protested over recent Indian military patrols in Arunachal Pradesh, a region that China has never recognised as Indian territory. "Prior to the resolution of the border issue, it is hoped that the Indian side abides by the agreement protocol, respects and obeys the Line of Actual Control and refrains from hyping up the issue and works with China to jointly maintain peace and tranquillity in border areas," Geng Shuang, the spokesman for the Chinese Ministry of Foreign Affairs, said on Monday. "China's position on the Sino-Indian boundary issue is consistent and clear. The Chinese government has never acknowledged the so-called Arunachal Pradesh," Geng told a press briefing in Beijing. "Both China and India are negotiating to resolve the boundary issue between the two countries and seek a fair and reasonable solution acceptable to both sides." Geng's remarks came as the Press Trust of India news agency cited sources as saying that during meeting to discuss the border last month, officials from a People's Liberation Army delegation had strongly protested about the extensive patrols carried out by Indian troops in Arunachal Pradesh's Asaphile region. Beijing claims the territory for itself, and says it is part of southern Tibet. Geng did not confirm that Beijing had protested, saying only that the two governments have "close contacts at all levels". China and India have held 20 rounds of talks to resolve the boundary disputes, starting in the 1960s, and different mechanisms have been set up to maintain peace along the 4,000-kilometre (2,485-mile) line. However, little progress has been made and tensions over the issue periodically flare up. Last year's confrontation escalated after China started building a road in Doklam, which is claimed by India's ally Bhutan. […] China's investment and infrastructure works under the initiative have strengthened its ties with Pakistan, India's main rival, as well as other countries in what Delhi sees as its backyard including Nepal, Bangladesh, Sri Lanka and the Maldives. Meanwhile India has joined the so-called Quad, or Quadrilateral Security Dialogue, with the US, Japan and Australia, a move Beijing sees as an effort to counter its rising influence in the Indo-Pacific region. "India is feeling uneasy about China's growing presence in South Asia and the strategic mistrust between the two sides is deep, so seeking improved relations with China is unlikely to be high on the foreign policy agenda for Modi's government," said Hu Zhiyong, an associate professor at the Shanghai Academy of Social Sciences. ^ top ^

US aircraft carrier sparks regional fears as it challenges China's military might in South China Sea (SCMP)
2018-04-11
As fighter jets streaked overhead, a US aircraft carrier sailed through the disputed South China Sea to the Philippines on Tuesday, sparking regional alarm as strove to display America's military might in the face of Chinese development in the sea. The US Navy flew a small group of Philippine generals, officials and journalists to the USS Theodore Roosevelt, where fighter jets - from its roster of 65 aircraft, also including helicopters and spy planes - landed and took off from the nuclear-powered ship by catapult with thunderous blasts. Recent US deployments of aircraft carriers, backed by destroyers, to the disputed waters for freedom of navigation challenges to Beijing's territorial claims are reassuring allies but also prompting concerns with China's own show of force in the busy waterway. "It's a showcase of the capability of the US armed forces not only by sea but also by air," Philippine army Lt. General Rolando Bautista said after joining a tour of the 97,000-ton carrier. "The Americans are our friends. In one way or another, they can help us to deter any threat," Bautista said, adding that the American military presence helps secure vulnerable Philippine waters. At least twice this year, the US Navy has deployed destroyers in freedom of navigation sail-bys near Chinese-occupied Scarborough Shoal, which Beijing wrestled from the Philippines in 2012, and Manila-claimed Mischief Reef, which Chinese forces occupied in 1995. Another US carrier, the USS Carl Vinson, patrolled the contested waters last month, taking part in anti-submarine drills in the South China Sea with Japanese forces and visiting Vietnam with its 5,000-strong crew, the largest such US military presence there since the Vietnam war ended in 1975.[…] While the moves could increase the risks of miscalculation and accidental clashes, Washington's superior naval power could serve as deterrence to Chinese aggression, Golez said. The Philippine ambassador to Beijing, Chito Sta. Romana, recently warned that the risks of a miscalculation and armed conflict have risen in the disputed region with a militarily stronger China now able to challenge the US. Sta. Romana compared the two powers to elephants fighting and trampling on the grass and said, "What we don't want is for us to be the grass." Philippine President Rodrigo Duterte's policy of befriending China has worked, Sta. Romana said, citing Beijing's decision to lift its blockade around Philippine-occupied Second Thomas Shoal. China also allowed Filipino fishermen back into disputed Scarborough Shoal after Duterte visited Beijing and raised the issue with Chinese President Xi Jinping in 2016. […] ^ top ^

Chinese President Xi Jinping stands up for globalisation and free trade at Asia's Davos (SCMP)
2018-04-11
Chinese President Xi Jinping on Tuesday vowed to further open the nation's economy and rallied support for globalisation in a bid to position himself as a leader in promoting international cooperation and free trade amid the threat of a trade war with the United States. In his first speech to a foreign audience after securing the constitutional right to stay as president without term limits, Xi told the Boao Forum for Asia on the southern island of Hainan that his country's doors would only open "wider and wider" to foreign investment. China's earlier promises of removing foreign equity stake caps in banks, securities firms and insurance would be realised before the end of 2018, he said. China would also lift foreign ownership restrictions in the car industry, he said, a clear hint that firms such as Tesla might soon be allowed to set up wholly owned plants in China without needing a local partner. […] The US has threatened to levy tariffs of up to US$150 billion worth on Chinese imports, complaining of unfair Chinese trade practices, including restrictions on market access and the alleged theft of intellectual property. Beijing responded with a list of American goods likely to face import tariffs as the trade dispute escalates. Xi, however, told the audience in Hainan that the world has become the "Earth village" and it would go against historical trends to close up, suggesting that China did not want to engage in a trade war with the US or escalate trade tensions into a broader confrontation, at least not for now. China "sincerely" hoped to buy more from foreign countries to satisfy domestic demand, he said. The bulk of Xi's speech at the event attended by regional political and business leaders, and promoted as Asia's answer to the World Economic Forum in Davos, was about his vision for China's place in the world order, trying to sooth worries about nation's rise and stressing its emphasis on peaceful development. "We will never threaten anyone, nor overthrow the existing international system" no matter how rich or powerful China becomes, said Xi, who has become the most powerful Chinese leader since Mao Zedong. "We will not seek to build up spheres of influence – China will always be a builder for world peace, a contributor to global development and a defender of international order," he said. Xi did not name the United States or Trump in his speech, but he made clear that China supported a multilateral trade system and is against a "cold war mentality" or "zero-sum game". "Being overbearing or isolationist can only hit walls," Xi said. "Only by adhering to peaceful development and working hand in hand can we truly achieve multi-win and win-win results." Xi said China would proactively develop global partnerships and "firmly support multilateralism" for the sake of the "a community of common destiny" for all people, a phrase Xi favours to describe his future global vision. […]Sceptics, however, have questioned whether China's government is genuinely committed to further opening up its economy. For example, the "Made in China 2025" government-backed initiative to help secure a Chinese advantages in hi-tech industries such as robotics and electric vehicles, has created unease among other countries. Xi tried to address these concerns on Tuesday, saying China would be serious about protecting intellectual property rights and will tweak its domestic regulations to comply with international economic and trade rules. Michael Clauss, the German ambassador to China, wrote in a note commenting on Xi's speech that "promises to open up further have not been in short supply" but rhetoric alone would not change the fact that China was still extensively restricting foreign investment. "We hope this time we will actually see some meaningful implementation," he said. Singaporean Prime Minister Lee Hsien Loong said after Xi's speech that he hoped China and the US would be able to work out a solution and keep from further escalation in their trade disputes. "A trade war between China and the US is still far from inevitable, but if one does happen it will undermine the multilateral trading system, which has underpinned global prosperity," he said. "What is ultimately at stake is war and peace, the security and stability of the world." The message from Xi may help to cool trade tensions between China and the US. Robert Koopman, the chief economist at the World Trade Organisation, said it "would be very interesting to see the reception to Xi's words today in Washington" as whether the speech start a conversation between the two sides. Qian Keming, a Chinese vice commerce minister, said Beijing was trying to "set an example for the world in terms of market opening". "We see the trade disputes with the US as a fight between free trade and protectionism," he said. ^ top ^

Li tells Singapore's prime minister China will work with ASEAN (China Daily)
2018-04-13
China is willing to bring benefits to surrounding countries through its own development and build a community of both shared interest and shared destiny with countries in the Association of Southeast Asian Nations countries, Premier Li Keqiang said. Li made the remark when meeting with visiting Singapore Prime Minister Lee Hsien Loong in Beijing on Sunday. Singapore is one of the founding members of ASEAN. This year marks the 40th anniversary of China's reform and opening-up and also is the 15th anniversary of its strategic partnership with ASEAN, Li said, and China stands ready to further deepen its reform and opening-up while firmly safeguarding the global free-trade system moving forward. Noting that relations between China and Singapore are growing steadily and cooperation expanding smoothly in many areas, Li said China is willing to further consolidate political mutual trust with Singapore, work together in third market cooperation and further cooperate in defense, safety of law enforcement, education, media and think tanks so as to bring tangible benefits to the people of both countries. He said China is ready to work with Singapore to jointly promote the construction of the Southern Passageway for ASEAN and deepen cooperation with the country in key areas such as infrastructure, connectivity and finance. He said he hopes Singapore, taking the rotating chair of ASEAN this year, will continue to play a constructive role in improving China-ASEAN ties and further contribute to regional peace, stability and prosperity. Lee told his counterpart that trade stands as the foundation for Singapore, and Singapore supports a multilateral trade system, liberalized trade and investment and a rule-based global trade system. The two leaders witnessed the signing of two documents on third market cooperation and culture heritage protection. Lee is on a five-day working visit to China starting Sunday, his second visit to China since September. During the visit, he will attend the Boao Forum for Asia's annual conference in Hainan. It will be his first time at the conference and he will deliver a speech at the opening session of the forum. During a group interview on Sunday, Lee said China's economy has developed greatly since 2001, when it joined the World Trade Organization, and has both committed to and benefitted from the organization's multilateral rules, including submitting to dispute settlements. He said that "if unilateral and tit-for-tat actions escalate into trade wars, the multilateral trading system that has brought countries prosperity for decades will be severely undermined". "There will be no winners in a trade war," Channel News Asia quoted him as saying. ^ top ^

Nation proposed as antipollution model (China Daily)
2018-04-13
China's practices in curbing air pollution could be valuable for countries in Africa that are dealing with the issue, as more measures to protect the continent's environment are considered, a top UN scientist said. The comprehensive controls that led to air pollution reductions in China have brought remarkable progress for the country, especially in Beijing, said Liu Jian, chief scientist at the United Nations Environment Programme. Winter controls over industrial production, such as the temporary shutdowns of highly polluting factories; changes in energy consumption patterns, like shifting to clean energy for heating; and development of new energy vehicles, have all led to improved air quality, he said. Concentrations of PM2.5-the tiny particles that pose the greatest health risks plunged by 39.6 percent in 2017 from 2013 levels in the Beijing-Tianjin-Hebei region, and the air quality in the Pearl River Delta has met national standards three years in a row, according to the Ministry of Environmental Protection. It's time for more countries to pay more attention to cutting air pollution, Liu added. The latest data from World Bank shows that PM2.5 was responsible for economic losses of $5 trillion worldwide in 2013. Moreover, 5.5 million people died of diseases related to air pollution indoors and outdoors in 2013, according to the World Health Organization. "The most important way to reduce pollution is to reduce emissions through the help of ample funding, improved technologies and well-implemented policies, as China did, "Liu said, "Other countries facing similar issues could learn from China." For example, the strict measures Beijing took to reduce vehicle exhaust emissions could be exported to Nairobi, the Kenyan capital, he said. In October, Beijing adopted new standards for emissions, considered to be among the strictest in the world. In Nairobi, by contrast, the exhaust standards are missing, and vehicle emissions are a major source of air pollution, he said, adding that vehicles with excessive emissions are free to roam. Moreover, worsening air quality has been observed in many African countries in recent years as economies have grown, he said. For India, whose pollution problems are similar to China's, the lessons from China may also be valuable. Some cities, such as New Delhi, should take decisive action, as Beijing did in the past five years. UNEP has participated in various projects with China to build a platform and promote exchanges between China and African countries on environmental protection not only on air pollution but also soil and water pollution, as they are certainly inter connected, Liu said. Among the joint efforts is the newly formed China-Africa Environmental Cooperation Center, based in Nairobi, a promising antipollution project, Liu said. The environment ministers of China and Kenya, along with the head of UNEP, signed the agreement to promote the project on Dec 5.It aims to promote environmental exchanges between the private sector and governments on environmental protection and help the Belt and Road Initiative to become "green".In recent years, Chinese enterprises have contributed their strength toward improving the environment, including in air pollution control, UNEP's Liu said, adding that they are prepared to help push forward Africa's ambition to industrialize, while also conserving the continent's environment. These firms could draw on their experience in curbing pollution, and then replicate their successes in Africa, he said. With sustainable solutions from vast sectors-private, government, industry, transportation and energy-there will be more blue skies, rich soil and fresh water for all, he said. ^ top ^

China, Austria agree to establish friendly strategic partnership (Xinhua)
2018-04-13
Chinese President Xi Jinping and visiting Austrian President Alexander Van der Bellen agreed Sunday to establish a Sino-Austrian friendly strategic partnership and advance bilateral pragmatic cooperation. Invited by Xi, Van der Bellen headed a large delegation on his state visit to China, including Austrian Chancellor Sebastian Kurz, four cabinet ministers, and members of the business community. Xi said the visit revealed the great importance that Van der Bellen and the Austrian government attached to ties with China. Van der Bellen is scheduled to lay a wreath at the Monument to the People's Heroes in downtown Beijing on Monday. Xi said it showed the Austrian president's respect towards and friendship with the Chinese people. Calling Austria an important cooperative partner of China in Europe, Xi said the Austrian new government has written into its working program the contents of enhancing relations with China as well as the Belt and Road Initiative. He expressed appreciation for that. Hailing the complementarity between the two economies and great potential for stronger cooperation, Xi asked the two countries to take the opportunity of establishing bilateral friendly strategic partnership to strengthen political guidance and top-level design, and maintain high-level exchanges. Xi proposed to upgrade cooperation in such areas as judiciary, security and law enforcement, anti-corruption, fugitive repatriation and asset recovery. He also called on both sides to enhance coordination in multilateral affairs, and jointly safeguard world peace and stability. China appreciates Austria's open attitude towards Chinese investment, and will open more to the world, Xi said. This year marks the 15th anniversary of the China-EU comprehensive strategic partnership. Xi said China's support for Europe's integration remains unchanged, expressing his hope that Austria will play a constructive role in cementing China-EU strategic trust and comprehensive cooperation. For his part, Van der Bellen said Austria is committed to strengthening cooperation with China in such areas as trade, investment, scientific research, environmental protection, clean energy, culture and sports. Austria highly values China's positive role in global affairs including countering climate change, and expects to enhance coordination with China, he said. As Austria prepares to take over the rotating presidency of the EU in July this year, Van der Bellen said the country expects to play a positive role in EU-China cooperation. He said his current China visit, leading such a large delegation, is unprecedented and showed the great enthusiasm of various circles in Austria for enhancing ties with China, he added. Austria expects fruitful cooperation with China, and is committed to facilitating stronger bilateral ties, Van der Bellen said. After their talks, the two presidents witnessed the signing of several bilateral cooperation agreements, ranging from the areas of Belt and Road cooperation, judiciary, innovation, transportation and modern distribution, to culture, sports and intellectual property rights. In a joint statement released by the two countries Sunday on establishing the friendly strategic partnership, they welcome the signing of a bilateral judicial assistance treaty on criminal cases, on the basis of which the two sides will deliberate the possibility of signing a bilateral extradition treaty. According to the statement, they will work together to open market for each other's high-quality products. For example, China will import pork and fruit from Austria. China also welcomes Austria to participate in the first China International Import Expo to be held in November 2018. The Austrian side is willing to offer China broad experience and expertise in China's preparation for the 2022 Beijing Winter Olympics, said the statement. The two countries will take the opportunity of the 2018 China-EU Tourism Year to strengthen cooperation in tourism. The two sides will work together to crack down on terrorism of all forms, and will enhance cooperation in fighting cross-border crimes, corruption and cybercrime, according to the statement. Also on Sunday, Chinese Premier Li Keqiang met with Van der Bellen. Li said China expects to expand two-way trade and investment with Austria, and foster new growth in such areas as high-end manufacturing, science innovation and energy saving. "China is willing to deepen win-win cooperation with Austria under the Belt and Road Initiative and the 16+1 cooperation framework," he added. Li said China stands ready to work with European countries including Austria to promote trade and investment liberalization and facilitation, jointly fight against protectionism in all forms, maintain and enhance multilateral trade system. Van der Bellen said Austria supports trade and investment liberalization and facilitation, and will take the opportunity of EU rotating presidency to boost Europe-Asia cooperation. After his stay in Beijing, the Austrian president will travel to Boao in Hainan Province to attend the Boao Forum for Asia Annual Conference 2018. ^ top ^

China to increase cooperation with UN (Xinhua)
2018-04-13
Chinese Premier Li Keqiang and visiting United Nations (UN) Secretary-General Antonio Guterres agreed Sunday to strengthen cooperation between China and the UN. Li said the world economy maintains a momentum of recovery, while unilateralism and protectionism is on the rise, and there are still unstable and uncertain factors in international situation. China has deeply integrated into the world and needs a peaceful and stable external environment, Li said. As the largest developing country, China is willing to shoulder international responsibilities commensurate with its status, Li said. He said China is willing to work with the international community to support liberalization of trade and investment, oppose protectionism, make globalization to be more open, inclusive, balanced and mutually beneficial. Li spoke highly of the cooperation between China and the United Nations, and he stressed that China firmly support the basic international rules founded on the UN Charter, the core role that the United Nations is playing in international affairs. Li said China will continue to constructively participate in UN work in various areas, promote the 2030 Agenda for Sustainable Development and contribute more to world peace and development. Guterres said China is the main force for stability in international peace and cooperation, and the United Nations is willing to have all-round cooperation with China. The difficulties in globalization should be handled through international cooperation and multilateralism instead of unilateralism or protectionism, Guterres said. Guterres called for obeying the rules of international order, and said protectionism injures others and ruins oneself. Appreciating China's positive role in multilateralism, Guterres said the United Nations hopes that China will contribute more to the regional and international issues resolution. Yang Jiechi, member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Director of the Office of the Foreign Affairs Commission of the CPC Central Committee, also met Guterres on Sunday. Yang said China stands ready to work with the United Nations to safeguard global peace and security, and promote the economic and social development. Guterres appreciated China's leading role in UN affairs, and stressed that the cooperation with China is of great importance to defending multilateralism. Chinese State Councilor and Foreign Minister Wang Yi held talks with Guterres on Sunday. ^ top ^

 

Domestic Policy

Fallen Chinese political star Sun Zhengcai admits taking US$27m in bribes (SCMP)
2018-04-13
Former political high-flyer Sun Zhengcai, who was once tipped to be among the next generation of Chinese leaders, pleaded guilty in a court in northern China on Thursday to taking 170 million yuan (US$27 million) in bribes. The Tianjin First Intermediate People's Court said in a statement that Sun, a former member of China's Politburo, admitted taking the bribes, quoting him as saying that he "had only himself to blame". The court adjourned after the half-day hearing and said it would hand down a verdict and sentence at an unspecified date, Xinhua reported. Sun, 54, was sacked as Communist Party boss of the megacity Chongqing in July and placed under investigation for corruption in the run-up to the party's national leadership reshuffle in October. Prosecutors accused Sun of taking advantage of his position to seek profits for others and of illegally accepting 170 million yuan in assets, directly or via his designated parties, Xinhua reported. The prosecutors said the charges related to crimes he allegedly committed during his time as a district party boss in Beijing in 2002, while he was minister of agriculture, and his stints as party chief in northeastern Jilin province and Chongqing. Court hearings against political heavyweights like Sun are largely a formality in China where the party keeps a tight grip on the judiciary. Sun had already been punished by the party's internal corruption watchdog for breaking party discipline and was widely condemned by state-run media for his alleged wrongdoings before he appeared in court. After the court session on Thursday, party mouthpiece People's Daily said in a staff commentary that the trial reflected the continued momentum of Xi's anticorruption crusade. "It again sends a clear signal to the outside world: there is no 'special party member' when it comes to party discipline and the law," it said. Sun was the youngest member of the Politburo before he was expelled and was once widely considered a strong candidate to sit on the Politburo Standing Committee, made of up China's top leaders. After the accusations were levelled at Sun he was replaced in Chongqing by Chen Miner, a protégé of President Xi Jinping and a rising political star. During China's annual parliamentary sessions in Beijing last month, Chen lashed out at Sun for "complying in appearance but opposing in his heart" central government policies. "Sun did follow [the central leadership's line] when he was reading from the script, but he had never done so in his heart," Chen was quoted as saying by Chinese media. After the parliamentary meetings, Chongqing's official newspaper published a series of articles criticising Sun's record in the city. His wrongdoings included launching projects nominally aimed at improving people's livelihoods, but delivering no results; being apathetic to people's suffering and safety by not showing up at disaster scenes; and distorting central government policies in their implementation to fit his own ideas, the reports said. Sun is one of the most senior serving politicians to be snared in Xi's anticorruption campaign. Huge numbers of officials have been prosecuted, although some critics argue that the campaign has also been used to purge the president's political rivals and instil fear and loyalty in the party ranks. The court in Tianjin has previous experience in hearing cases against political heavyweights brought down in the anticorruption campaign. They include the retired Politburo Standing Committee member and security tsar Zhou Yongkang and former presidential aide Ling Jihua. Both are serving life sentences for taking bribes, illegally obtaining or leaking state secrets and abuse of power. ^ top ^

Under Xi's watch, China's sunshine island basks in warmth of opening up (Xinhua)
2018-04-13
On his fourth visit to the southern island province of Hainan since 2010, President Xi Jinping made an inspiring speech on opening-up earlier this week. At the opening ceremony of the Boao Forum for Asia (BFA) Tuesday, Xi spoke of "a new phase of opening up" for the shared prosperity of China and the world. This year is the 30th anniversary of Hainan as a province and special economic zone. The island of more than 9 million people, once a backwater of fisherfolk and poor farmers, is now a vivid example of China's commitment to the future. Being China's only province entirely within the tropics, at 35,400 square km Hainan is roughly the same size as Taiwan. On his first visit to Hainan as president in April 2013, Xi recognized the island's promise as the country's largest special economic zone, the host of the BFA and a popular tourist destination. By making full use of its geographic advantages, natural resources and special economic zone status, the island is now a vigorous center of tourism and green agriculture. In the past five years, the island's GDP has increased by an annual average of 8.1 percent to 446 billion yuan (about 71 billion U.S. dollars) in 2017. Since the 18th Communist Party of China (CPC) National Congress in 2012, the number of tourists visiting the island increased from about 33.2 million to 67 million last year. Urban residents have seen their incomes rise by 9.6 percent every year. For rural residents the increase is 11.7 percent annually. "Hainan has the advantage of being on the front line with ASEAN countries," Xi said. "It should be a pioneer in opening up." Since the 18th CPC National Congress, Hainan has hosted a series of diplomatic, economic and cultural gatherings. Since 2010, Xi's participation in four BFA events have been the highlights. These international events have greatly raised the island's profile and exposed the province to the very latest in business practices and pioneering services. On the island, overseas investors are allowed to set up medical institutions. The threshold for imports of medical equipment and pharmaceuticals have been lowered, and foreign doctors are allowed to extend their practice. In March, a new hospital opened in the Hainan Boao Lecheng International Medical Tourism Pilot Zone, expected to be one of the first hospitals in China to provide the nine-valent HPV vaccine. Moreover, people from 26 countries can now visit the island's beaches visa-free via 57 international air routes. The international airports in Haikou and Sanya received over 40 million passengers last year. The province has a five-year plan for participation in the Belt and Road Initiative and trade between Hainan and countries along the 21st Century Maritime Silk Road increased by 14.8 percent last year. In his 2013 visit, Xi dropped in on a small village named Bohou and made a statement that later became a catch phrase -- "whether Xiaokang is realized or not, only the ordinary folks can tell." "Xiaokang," a moderately prosperous society, is set to be achieved by 2020 and one key indicator is the elimination of absolute poverty. Bohou village has changed a lot since Xi visited five years ago. Since the president's visit, about 20 cooperatives have started running 70 hectares of rose plantations, earning the area the nickname of "rose valley." "Five years ago I earned about 1,800 yuan a month. Now I make more than 3,000," said Bohou villager Huang Qi'na. She also leases out her family land for about 10,000 yuan a year. Thanks to advances in agriculture, for the first time the annual per capita income of rural residents in all counties of Hainan exceeded 10,000 yuan in 2017. About 617,000 residents, including all villagers of 517 villages, have been lifted above the poverty line over the past five years. For the "ordinary folk" of Bohou village, Xiaokang is now just around the corner. ^ top ^

China's king of titillating content Jinri Toutiao issues apology for providing what the people want (SCMP)
2018-04-12
Venture capital investors who called on Jinri Toutiao's chief executive Zhang Yiming last year wanted to know why so much of the news aggregator's content focused on societal ills, celebrity gossip and off-colour jokes. "Every time we run internal tests the results show that viewership drops off precipitously when alternative content like international current affairs, science and technology is served up", said Zhang, according to investors present at the meeting, speaking on condition their names not be revealed due to the confidential nature of the discussions. On Wednesday Zhang issued a "self reflective" public apology after the news aggregator, known as Today's Headline in English, was ordered by central government authorities to close its popular Neihan Duanzi app, know for its off colour jokes, a week after it separately singled out the same site for "vulgar content". The company was also ordered to take down its eponymous news app Jinri Toutiao from app stores for three weeks, although existings users still have access. "We let our users down by over emphasising growth and scale over quality and responsibility," Zhang said in an open letter reminiscent of the "self criticism" of "wrongdoers" during the era of Chinese leader Mao Zedong. Zhang said Toutiao would "correct the flaws" in its algorithms and machine vetting, expand its vetting team from 6,000 to 10,000 people, and permanently ban creators whose content was "against community values". Beijing Bytedance Technology, the parent company of Toutiao, did not immediately reply to emailed requests for comment on the investor's meeting. Founded in 2012 by Zhang, Toutiao has become one of the most popular news apps in China, using artificial intelligence algorithms to deliver personalised, and often titillating, content to more than 120 million daily users. However, unlike many tech start-ups in the country, it is not backed by any of the three internet giants – Baidu, Alibaba and Tencent – which have launched or invested into news and short video services to counter the rise of Toutiao in the content industry. "Bytdance is a rock star. It went from nothing to an operator of multiple, very successful content products in a very short period of time," said Jeffrey Towson, a Peking University professor. "Once you become very significant in news or in social media in China, you are going to work with the government, because those are areas of government concerns," he said, adding that it was more like "growing pains" for the company. Bytedance, though privately held, is weighing a US IPO at a value of as much as US$3 billion, Bloomberg reported last month, citing people with knowledge of the matter. The company reportedly raised at least US$2 billion in August 2017, giving it a valuation of US$30 billion, putting in the league of tech unicorns like Airbnb, according to CB Insights. Its shareholders include Sequoia China funds, CCB International, DST Global. Other Chinese internet content companies planning to list overseas have flagged the risks of government censorship to investors. "To the extent that PRC regulatory authorities find any content on our platform objectionable, they may require us to limit or eliminate the dissemination of such content on our platform in the form of take-down orders or otherwise," US-listed Chinese video streaming site Bilibili said in its prospectus last month. Huya, a game streaming site, flagged similar warnings in its prospectus filed to the SEC on Monday as the company seeks to raise up to US$200 million on the New York Stock Exchange. The latest crackdown on internet companies ranging from live streaming sites to news providers has seen executives from the offending companies issue apologies to the public and regulators. After Chinese state media shamed the live-streaming platform Kuaishou earlier this month for hosting videos that featured teenage mothers, CEO Su Hua wrote in an open letter than the platform was "a bad influence on society" and the problem was "the result of long-term neglect". "We won't dodge the responsibility or regulation," he said. The crackdown has seen investors become more cautious towards the live streaming and content industry because featuring more "positive" content drags down web traffic and subsequently valuations, according to Zheng Linghui, founder of Jianyihui, a Beijing-based community for private equity and VC investors. "Even though the punishment is only temporary, regulatory risks have began to unravel in front of their eyes," he said. "The exit pressure for early-stage investors increases, so seeking IPOs in the US and Hong Kong seems a logical choice." Last year Bytedance went on an overseas buying spree, bagging the popular teenager app Musical.ly, news and video aggregation site News Republic that is popular in Europe, and US video creation app Flipagram, on its way to creating a global user base to build up its content empire. At an internal meeting held last month Zhang told employees that "globalisation" was the keyword for the company's development in 2018, adding that about 10 per cent of the company's users are from overseas, with the goal is to have half of its users from outside China in three years, according to reports from mainland Chinese media. The 35-year-old Zhang, who also serves as chairman of Bytedance, is a self-made billionaire with a net worth of US$4 billion, according to Forbes. Zhang grew up in China's southern Fujian province as the only son of parents who are civil servants. After graduating in 2005 with a major in software engineering, he helped start four companies, including a social media platform Xunku, micro blogging site Fanfou and real estate site 99Fang.com. Before setting up Toutiao in 2012, Zhang worked for Microsoft China. Zhang, who describes himself as a "serious absorber of information", saw that smartphones would replace newspapers as a means to convey news and information. The launch of Toutiao was also well timed, with China's mobile internet exploding from 356 million users at the end of 2011 to 753 million by 2017. Bytedance has seen several of its star content platforms attract unwanted attention from Beijing authorities recently. Besides Toutiao and Neihan Duanzi, the company's short video site Huoshan was criticised for featuring low brow content from underage users while Douyin, the popular short video site for China's Generation Z, was closed temporarily so it could upgrade its content policing systems. ^ top ^

Vulgar online streaming content should be forbidden (Global Times)
2010-03-17
Many of my friends like to use news aggregation apps and live streaming sites as they provide a brand new channel for internet users to obtain the latest information and interact with each other. News apps offer a stream of posts ranging from news reports to videos. In live streaming platforms, people can chat with broadcasters and gift them for excellent performance. In addition, many content generating and sharing sites adopt machine learning to figure out users' interests and tastes, and then tailor offerings accordingly to boost user experience. That's why they have gained wide popularity in China. However, success breeds its own set of challenges. Chinese authorities recently ordered news aggregator Toutiao and live streaming website Kuaishou to remove inappropriate and harmful content, and close the user accounts that uploaded such content. The two popular platforms were accused of allowing minors to spread obscene content, such as hosting videos that feature teenage mothers, claiming to be aged 13 or 14, holding newborns in their arms or appearing on video looking pregnant. Later, four popular Chinese news apps were temporarily removed from the Android store in China: Toutiao, Phoenix News, NetEase News and Tiantian Kuaibao suspended their downloading services on Monday with the aim of regulating information dissemination. Multiple factors contribute to the widespread inappropriate content. Take live streaming sites as an example. Live streaming platforms give more ordinary people opportunities to show off their capabilities. Therefore, an increasing number of young Chinese were trying their hand at being online hosts on live streaming platforms as a way to become famous overnight. To draw online attention, some hosts broadcast illegal activities or uploaded obscene and violent content related to gambling, pornography and drug use. For instance, Li Tianyou, a popular online host famous for hanmai, rapping shouted over dance music, was banned from live streaming platforms earlier this year because he often talked about pornographic topics and described different feelings after taking drugs during his broadcast. In addition, many news apps and live streaming sites allow artificial intelligence to select. This technology automatically picks news pieces and videos from popular news websites and social video-sharing apps and pushes what it considers the most interesting posts to users. Popularity is an important principle for the selections, but such a mode lacks reviews carried out to examine whether the content is improper. When users click and watch videos featuring vulgar content, the platforms recommend similar ones. As a result, lots of inappropriate content is pushed frequently and spreads quickly. Worse, that prompts other similar platforms to provide more vulgar content to gain popularity. Content generating and sharing platforms, especially those with a large user base, should be blamed for disregarding regulations and jeopardizing order in the online media and entertainment industry. Toutiao is a case in point. As China's most popular news application with more than 120 million daily active users, Toutiao should have done a better job regulating content. However, vulgar content run rampant on the platform, disrupting the cyber environment. Against this backdrop, inappropriate content should be removed immediately. Accounts and hosts found to be providing vulgar content should be banned from uploading videos or broadcasting programs. Website managers and employees who allow harmful content to be broadcast should be held accountable. Content generating and sharing platforms should beef up efforts to regulate content. Content providers and broadcasters should abide by relevant laws and regulations to create a healthy online environment. ^ top ^

Chinese tycoon Xiao Jianhua, missing for 15 months since vanishing in Hong Kong, 'could face trial by June' (SCMP)
2018-04-13
Xiao Jianhua, the mysterious Chinese tycoon who vanished from a luxury Hong Kong hotel over the Lunar New Year weekend in January 2017, is likely to face trial at a Chinese court in May or June, sources in Beijing and Hong Kong have told the South China Morning Post. If confirmed, it would resolve some of the uncertainty surrounding Xiao, who had built a business empire on China's underdeveloped capital markets before falling victim to Beijing's crackdown on oligarchs, nicknamed "big crocodiles". "The investigation stage is done and the case has moved to the judicial department," a Beijing-based source, who declined to be named, told the Post. "The trial could take place very soon." A source in Hong Kong, who requested anonymity but has been involved in Xiao's business deals for a number of years, said Xiao could stand for trial before the end of June. The specific charges Xiao will face remains unknown, but both sources said they would not be as serious as those against Wu Xiaohui, the former chairman of Anbang Insurance Group. One reason for the potentially lighter treatment of Xiao is the billionaire's cooperation with the authorities in volunteering information and shrinking his business empire, the sources said. Wu, in contrast, refused to cooperate and was charged with "fundraising by fraud", which can be punishable by life imprisonment, according to court documents. Xiao was persuaded to return to mainland China to help with investigations relating to China's stock market turmoil of 2015, the Post reported in February 2017. In the small hours of January 27, the last day of Year of the Monkey, two vans arrived at the luxurious Four Seasons Place, where Xiao was staying in one of his several rented serviced flats. Five men left the vans at about 1am and knocked on the door of Xiao's 28th-floor flat before emerging two hours later with Xiao. Almost 12 hours later, Xiao passed through border controls at the Lok Ma Chau border crossing between Hong Kong and Shenzhen, and disappeared into the mainland Chinese city, the Post reported. The disappearance of Xiao had initially stirred fears in Hong Kong that the agents had violating its rule of law by crossing the border to carry out law enforcement. Hong Kong's security minister, Lai Tung-kwok, said later that there was no indication that Xiao had left the city against his will or that mainland public security officers had acted beyond their jurisdiction. Xiao was reported missing by his family on January 28. The next day, they informed police that Xiao had told his family he was safe. However, confusion deepened when a statement dated January 31 was issued in Xiao's name by Tomorrow Group, of which he is founder and chairman, via its official social media account and Hong Kong media, saying that Xiao was having medical treatment abroad and had not been abducted into the mainland. Before it was removed from Tomorrow Group's social media account, the statement stated that Xiao was a permanent Hong Kong resident and a Canadian citizen, and that he would face the media "soon". A source told the Post that the statement was a result of "miscommunication" and was not true. Xiao has not been seen in public since. Chinese authorities, including the police, have never provided any information about Xiao's whereabouts. A law graduate from Peking University, Xiao used Tomorrow Group as an investment vehicle to acquire stakes in hundreds of corporate entities. According to a well-informed source last month, Beijing saw this as a potential threat to China's financial stability and instructed the company to divest 150 billion yuan (US$23.9 billion) worth of assets in 2018 to repay bank loans, after offloading investments of about 100 billion yuan since Xiao returned to the mainland. ^ top ^

Wife of detained Chinese rights lawyer says she is under house arrest (SCMP)
2018-04-112018-04-13
The wife of a detained Chinese human rights lawyer who had nearly completed a 100-kilometre (60-mile) march to highlight her husband's plight said she had been placed under house arrest on Wednesday. "On April 11, 2018, trapped at home by forty or fifty people. A friend who came to visit was stopped and beaten. I can only climb out the window to shout," Li Wenzu wrote on her Twitter page on Wednesday afternoon. The post included a video of Li sitting on a window ledge shouting and angrily gesturing to a crowd below. In the video she described the plight of her husband Wang Quanzhang, an attorney who represented political activists and disappeared in a 2015 police sweep. "He went to court for ordinary people. Now he's been arrested for a thousand days without [us] knowing if he is alive or dead. I went to find my husband," she said, referring to her march. A close friend of Li confirmed to Agence France-Presse that she was "being controlled" by state security officers. "She still can't leave her house," the friend said Wednesday evening, requesting anonymity. Li's husband, Wang, has been charged with "subversion of state power" but authorities have blocked family-appointed lawyers from visiting him. In addition to representing activists, he advocated on behalf of victims of land seizures. His wife and a small group of supporters set off last Wednesday on a march from Beijing to the "No. 2 Detention Centre" in the northeastern city of Tianjin, where officials last said Wang was being held. On Monday, shortly after reaching Tianjin, police officers detained at least two members of the group for several hours and forced Li and her friends to return to Beijing. "They tried to make me give up on this march to Tianjin... I did not agree. I said that I have the freedom to go where I want," Li said on Monday. Agence France-Presse was unable to reach Li on Wednesday, and state security officials do not have any publicly listed contact details. China's ruling Communist party has repeatedly pledged to implement the "rule of law", but analysts say cases like Wang's highlight the stark limits of those promises. "This sort of display of thuggery undermines the credibility of the Chinese criminal justice system," Amnesty International China researcher William Nee said. The country's courts are tightly controlled by the party, with forced confessions often used as evidence and guilty verdicts delivered in more than 99.9 percent of criminal cases. Wang was one of more than 200 Chinese human rights lawyers and activists who were detained or questioned in the summer of 2015 in the "709 crackdown" -- so called because the roundup took place on July 9 -- the largest clampdown on China's legal profession in recent history. While the majority were released on bail, a handful -- including the prominent lawyers Xie Yang and Li Heping -- were convicted of various crimes and sentenced to up to seven years in prison. Wang's case is unusual because no trial date has even been announced. He is the last person in the "709 crackdown" to remain in legal limbo. Li has spent years trying in vain to obtain information on what has happened to her husband. Instead of answers, she has been put under constant police surveillance. Li said that their son, now 5, is afraid of the state security officers who have moved into an apartment below their home. ^ top ^

5,000 tips to Beijing national security hotline help nab foreign spies (Global Times)
2018-04-12
Five thousand tips, including some that helped catch foreign spies, were reported by the public since April last year to a Beijing bureau responsible for national security, local media reported on Tuesday. Tips mostly came via the 12339 hotline and included both Chinese and overseas residents, the Beijing Evening News reported on Tuesday. Launched in 2015, the hotline is the sole telephone open to the public for reporting suspicious activities including potential espionage. Cash rewards from 10,000 yuan ($1,528) to 500,000 yuan were launched in April last year for important clues that led to catching spies, the newspaper reported. The Beijing Evening News cited an example of a taxi driver who called 12339 to report suspicious foreigners. They later proved to have overseas spy backgrounds and were intending to pry into China's military secrets using underground detection equipment, the paper said. The driver received a cash reward for providing important information about the attempt. Since 2014, the bureau has accelerated education campaigns to increase awareness of national security among the public and prompting tipsters to become more proactive, the Beijing Evening News said. According to China's counter-espionage law of November 1, 2014, foreign organizations and individuals who engage in espionage activities or instigate and sponsor similar activities will be punished. Espionage includes working for foreign espionage organizations, or accepting tasks from such organizations, according to the bureau. Espionage activities also include incidents where overseas institutions, organizations or individuals obtain State secrets through prying. ^ top ^

Jiangsu city hires 5,000 inspectors to assist in discipline work (Global Times)
2018-04-11
About 5,000 "block inspectors" have been placed on duty in Nantong, East China's Jiangsu Province to help in local discipline inspection work, a local official said Wednesday. Their duties include detecting poor work styles of local officials, such as wasteful practices and bureaucratic behavior. They could also promote concepts such as clean and efficient work styles in residential communities, news site infzm.com reported. "All administrators have started their work and the system is running," an official at the local discipline inspection commission in Nantong, surnamed Cai, told the Global Times on Wednesday. Cai said the 5,000 administrators have been assigned to the city's urban and rural areas, and they will send pictures and texts to the supervising platform of the local discipline watchdog once they spot a problem. The information they provide will allow the commission to deal with the issue as soon as possible, he said. Inspectors' contact information will be distributed to residents, making it more convenient for the public to provide information to the administrators, infzm.com reported. Similar inspectors have also been hired in other regions. In Qingdao, East China's Shandong Province, each of the 220 inspectors need to visit at least 20 households per month to assist in community work and know their needs, a local newspaper reported in 2015. ^ top ^

China's defense setting in Nansha Islands automatic right: spokesperson (Xinhua)
2018-04-10
China has claimed sending troops to and setting up territorial defense equipment on the islands and reefs of Nansha Islands is the automatic right as a sovereign state. Ren Guoqiang, spokesperson of the Ministry of National Defense, made the remarks on Tuesday when answering a question on China's defense. "Nansha Islands are part of Chinese territory, and setting up troops and defense equipment on their islands and reefs helps protect China's sovereignty and safety, and helps maintain an unimpeded and secure navigation channel in the South China Sea," he said. "It also helps maintain the regional peace and stability, while it is not directed at any particular country." "China will resolutely follow the path of peaceful development, and pursue a national defense policy that is in nature defensive, as well as a military strategy of active defense," he said. ^ top ^

Chinese vice premier demands improved government services (Xinhua)
2018-04-13
Chinese Vice Premier Han Zheng has asked for acceleration of the transformation of government functions and improvements to government services. Han, also member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks during inspections at the Ministry of Ecology and Environment (MEE) and Ministry of Housing and Urban-Rural Development (MHURD) on Sunday and Monday, respectively. During an inspection of the MEE, the vice premier demanded the ministry strengthen formulation of environmental policies, plans and standards, as well as enhance oversight and law enforcement in the field. He also stressed tackling pollution, which was listed in what policymakers called the "three tough battles." During the inspection at the MHURD, Han asked the ministry to strengthen directions on local pilot reforms. The approving period for construction projects should be shortened while the business environment should be improved, he said. Han also stressed a "long-term mechanism" for real estate regulation and a housing system that ensures supply through multiple sources and encourages both housing purchases and rentals, noting that "housing is for living in, not for speculation." ^ top ^

China launches campaigns to clean up cultural environment (Xinhua)
2018-04-13
China has launched three campaigns against illicit cultural content to foster a "positive" and "healthy" cultural environment. The campaigns, spearheaded by the National Office Against Pornographic and Illegal Publications, will run until November. Administrative organs in the areas of cyberspace management, public security, culture, media, and publications were ordered to step up efforts to combat illegal publications, pornography, copyright infringement, and other cultural wrongdoings. A cyberspace regulation campaign will target pornographic content on mobile applications, live-streaming platforms, online games, chat groups, and pop-up ads, said the office. Another campaign aims to purify cultural content for children. Publications and cultural products sold to children around campuses will be targeted, while online child-related content will be put under careful scrutiny to eliminate elements that are "harmful to the healthy growth of minors," according to the office. A campaign against media and publication wrongdoings will crack down on fake news organizations and journalists, "news extortion," as well as publication piracy. ^ top ^

Popular Chinese news apps suspended (Global Times)
2018-04-13
Four popular Chinese news apps were reportedly removed from online stores, but observers said law enforcement efforts are far from enough and should be further enhanced because of rampant illegal online products. "In order to regulate the dissemination of information, internet application stores should suspend downloading access to the four apps Toutiao, Phoenix News, NetEase News and Tiantian Kuaibao," Southern Weekly reported on Monday, citing information obtained from application platforms. The report did not specify which kind of content in the apps was deemed in violation of regulations. The report said downloading access to the four apps will be suspended starting Monday. The suspension will last three weeks for Toutiao, two weeks for Phoenix News, one week for NetEase News and three days for Tiantian Kuaibao. The official versions of the four apps are available for download on the iOS app store as of press time, but could not be found on the app store for Android smartphones. However, versions developed by the same companies are still available for download, such as Toutiao Jisuban and Tiantian Kuaibao Daziban. The platforms did not provide detailed information when reached by the Global Times. Complaints about the heavy advertising, fake news and vulgar content of apps have been rising in recent years. "Some news portals are running without qualifications, and have been publishing fake news or news that contains wrong political information, which could easily mislead people, especially the young and elderly," Wang Sixin, a law professor at the Beijing-based Communication University of China, told Global Times on Monday. To better regulate the market, government regulators should strengthen law enforcement and impose harsher penalties on news platforms that publish illegal content, Wang suggested. Wang also noted that effective communication between news portals and the government should be conducted and the public should be encouraged to provide information on illegal content on online products. The Cyber Administration of China on Wednesday ordered Huoshan, a livestreaming site run by Toutiao, to make changes to its practices. The agency accused it of allowing minors to spread harmful content, Xinhua News Agency reported, which did not specify the nature of the forbidden content. Since March, 70 online applications suspected of involvement in pornography or gambling have been taken down, Xinhua reported. China has launched three campaigns against illicit cultural content to foster a "positive" and "healthy" cultural environment. A cyberspace regulation campaign will target pornographic content on mobile applications, live-streaming platforms, online games, chat groups, and pop-up ads, Xinhua reported on Monday. ^ top ^

 

Tibet

Tibet lifts 1,705 villages out of poverty in 2017 (Xinhua)
2018-04-13
Southwest China's Tibet Autonomous Region lifted 1,705 villages out of poverty last year, according to local authorities. A total of 150,000 people were pulled out of poverty last year, bringing the impoverished population in the region from 590,000 in 2015 to 330,000 last year. A total of 16.7 billion yuan (2.6 billion U.S. dollars) was invested in 2017 to help locals increase income, relocate and support the development of over 1,700 anti-poverty projects in the region. More than 85 percent of the land in Tibet is located more than 4,000 meters above sea level. Harsh natural conditions have been part of the causes of entrenched poverty. People in a total of 2,440 villages still live in dire poverty in Tibet, and the region plans to invest 11.7 billion yuan this year to lift another 2,100 villages out of poverty. It also aims for an annual growth of 16 percent in disposable income for people living under the poverty line, which is defined as a per capita annual income of 2,300 yuan at 2010 prices. The region will also continue to expand social security coverage to improve living conditions for people with disabilities, no income, inability to work, as well as for teenagers under 16 and senior people above 60. China aims to lift all citizens out of poverty by 2020 to create a "moderately prosperous society." There were around 30 million Chinese still living below the national poverty line at the end of last year, according to the National Bureau of Statistics. ^ top ^

 

Xinjiang

Passengers ordered to show ID cards to use subway as Chinese state tightens grip on restive Xinjiang region (SCMP)
2018-04-10
The first subway in the far western Chinese region of Xinjiang will soon be open for business – but only for passengers who present their identity cards when buying tickets. The regulations will apply to the new transport network in the regional capital of Urumqi and their introduction comes amid a prolonged security crackdown in the heartlands of the Uygur ethnic minority. Travellers in China have long been required to produce ID when buying train tickets and since March last year it became compulsory for long-distance bus rides. But Urumqi will be the first city to require real-name registration on its metropolitan rail system. The rail service will start trial operations by the end of June and should be fully open by the end of the year. According to a regulation passed by the municipal legislature on Sunday, passengers will be required to register when buying tickets. Those who buy tickets with other people's ID cards will face a fine between 50 to 200 yuan (US$7.90-31.70). Maya Wang, a senior researcher for Human Rights Watch who has closely followed the security situation there, said the requirement was "part of an ever tightening web of surveillance and control in Xinjiang". In the past decade, hundreds of people have been killed in ethnic violence between mainly Muslim Uygurs and the ethnic majority Han. The government has blamed the bloodshed on Islamist extremists and separatists, but Uygur advocates say it is the government's repression of religious freedom and unfair ethnic policies have fuelled resentment and violence. The authorities have been ratcheting up security and surveillance measures throughout the region since 2016, including thousands of newly installed street-corner police stations. The heavy human policing is coupled with the use of advanced monitoring technologies to build up what critics have called a "massive police state". Urumqi residents are frequently asked to provide their ID or undergo facial scans at the city's numerous security check points. "Think of how many checkpoints an Urumqi resident must go through every day," Wang said. "And you are already required to use your real name for intra-city travel." Strict security measures were already in place on the city's bus networks and in some stations no liquids, not even drinking water, were allowed, said one local resident who spoke on condition of anonymity. "I think everyone is already mentally prepared for how strict the subways will be," he said. The first Urumqi subway line to open will link the city's airport to the city centre. A further three lines are under construction. In September, authorities in central China's Hunan province announced that some subway and bus stations in the provincial capital of Changsha were preparing to introduce real-name registration and install facial recognition systems, but did not say when the scheme would be officially introduced. ^ top ^

 

Taiwan

Xi calls for joint efforts on reunification (Global Times)
2018-04-11
Xi Jinping, general secretary of the Communist Party of China Central Committee, on Tuesday urged the Taiwan business community to promote the peaceful development of cross-Straits relations, and called for joint efforts to advance the process toward the peaceful reunification of the country. Xi made the remarks while meeting Vincent Siew, honorary chairman of the Taiwan-based Cross-Straits Common Market Foundation, who is attending the Boao Forum for Asia annual conference, the Xinhua News Agency reported. Xi called for the Taiwan business community to firmly adhere to the 1992 Consensus and oppose "Taiwan independence." He also said the Chinese mainland is willing to share the development opportunities with Taiwan compatriots, deepen the cross-Straits economic and cultural exchanges and cooperation, and bring tangible benefits to Taiwan compatriots and enterprises. "Xi's remarks have sent a clear signal to Taiwan, which tell them about the precondition for sharing the mainland's economic development opportunities," Yu Keli, director of the Institute of Taiwan Studies at the Chinese Academy of Social Sciences in Beijing, told the Global Times on Tuesday. "The precondition is adhering to the 1992 Consensus and opposing 'Taiwan independence.' Secessionists within the island and the Tsai Ing-wen administration's stances and behavior cannot affect the normal and friendly exchanges between people, the business community, academic circles and entertainment circles," Yu said. The Chinese mainland on February 28 released new measures on exchanges and cooperation with Taiwan, which cover industry, finance and taxation, land use, employment, education, culture and healthcare. The ruling Democratic Progressive Party has received heavy pressure from the people of Taiwan for its poor governance and economic management, Yu Keli said. While the Chinese mainland is working to boost ties with the compatriots on the island, the US is boosting ties with Taiwan's pro-independence ruling party, such as allowing exchanges between senior officials and even selling submarine technology to Taiwan, said Yu Qiang, an associate professor on Taiwan studies at the University of International Relations in Beijing. The US is just giving the Tsai administration some political support to help it survive, and neither "official exchange" nor "submarine technology" can improve the livelihood of the ordinary people, which made it clear the US was merely a "troublemaker," Yu Qiang said. ^ top ^

US approved sale of submarine parts to Taiwan to make money, not arm island, analysts say (SCMP)
2018-04-13
Washington's approval of US defence contractors supplying Taiwan with the technology and parts it needs to build submarines should be seen as a straightforward trade deal rather than military support, analysts said. Trump's Asian-Pacific policy is to encourage its Asian allies to increase their defence capabilities and buy arms from the US," said Wang Kung-yi, a professor of political science at Chinese Culture University in Taipei. "As long as it allows the US to earn more money, granting the marketing licence is the right move," he said. In what appeared to be a show of support for Taiwanese President Tsai Ing-wen, the US State Department last week approved the marketing licence required by arms suppliers to sell to the self-ruled island. Without the cutting-edge technologies, sophisticated firearms systems, and expertise in testing and integrating hardware and weapons systems, Taiwan's hopes of building eight submarines would be at risk, the analysts said. However, Wang was keen to point out the difference between approving a marketing licence and actually selling arms to Taiwan. "The former means you [Taipei] have to deal with the contractors and take your own risks in buying the stuff," he said. "The latter would mean the US giving at least some kind of guarantee that the equipment works." For instance, when Taiwan was building its own fighter jets many years ago, the US provided not only the necessary technologies, but also hundreds of technicians to help assemble and test the planes before they could be rolled out for mass production, Wang said. Arthur Ding, director of the Institute of International Relations at National Chengchi University in Taiwan, said it remained to be seen, however, if Washington would actually hand over its cutting-edge technologies and sophisticated firearm systems to Taipei, as some of them were never intended to be exported. "In the past, US technology transfers to Taiwan have been limited to items of a defensive nature, not sophisticated, state-of-the-art ones," he said, adding that Taiwan would also need experienced, highly skilled technicians to put the submarines and weapon systems together. So the granting of a marketing licence was far from evidence that Taiwan would soon be developing a fleet of submarines, he said. Tsai last year announced plans to build eight submarines to replace the four outdated vessels Taiwan currently operates, of which only two are seaworthy. In 2001, then US President George W Bush approved the sale of eight conventional submarines to the island, but delivery was never made, partly as the US no longer builds such vessels. Germany and Spain reportedly declined to sell their designs to Taiwan out of fear of provoking Beijing, which considers Taiwan a wayward province subject to eventual union, by force if necessary, and has warned other countries against selling it arms. Tension between mainland China and Taiwan has escalated since Tsai and her independence-leaning Democratic Progressive Party came to power in 2016 and refused to accept the one-China principle. Beijing has since increased its military exercises in and around the island. ^ top ^

China firmly opposes US arms sales to Taiwan (Global Times)
2018-04-13
China's stance of resolutely opposing the United States selling weapons to Taiwan has been always clear and consistent, a spokesperson for the Ministry of National Defense said at a press conference Monday. "Taiwan is a part of China. The one-China principle is the political foundation of China-US relationship," Wu Qian, the spokesperson, said in response to a journalist's question about the US Department of State's approval of a marketing license for selling military submarine technology to Taiwan. China urges the US to abide by the one-China principle and the principles of the three Sino-US Joint Communiques, and stop all forms of military contact with Taiwan including arms sales, Wu said. "The Chinese military has the ability and is determined to defeat any attempt to split the motherland, and it will take all necessary measures to defend national sovereignty, security and territorial integrity," Wu said. ^ top ^

 

Economy

China allows local governments to arrange road tests for ICVs (Xinhua)
2018-04-12
China has allowed local governments to arrange road tests for intelligent connected vehicles (ICVs), authorities announced Thursday. Local regulators can decide the road section available for tests, take test applications and issue test car plates, according to the regulations released by the country's ministries of industry and information technology, public security, and transport. The ICVs, or connected cars, are automobiles that not only have access to the internet, but also intelligent connections with other vehicles, traffic, and the environment, which will make the drive safer, easier, and more efficient. ICVs cover different degrees of autonomous driving. Test drivers should be seated at the driver's seat throughout the test and be prepared to take control of the car at any given time, the regulations said. The regulations also specify requirements for test applicants and vehicles. Closed-area tests should be taken first before the vehicles are tested on normal roads. Many automobile makers as well as internet companies are investing in connected cars, which they believe will become popular in the near future. China issued its first batch of car plates for road tests of connected cars in Shanghai on March 1. Other cities such as Beijing, Chongqing, and Pingtan, Fujian Province, also followed. ^ top ^

China to exempt import tariffs on all cancer drugs (Global Times)
2018-04-13
China will exempt import tariffs on all cancer drugs and encourage the import of more innovative drugs, according to a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang on Thursday. From May 1, import tariffs on all common drugs including cancer drugs, cancer alkaloid-based drugs, and imported traditional Chinese medicine will be exempted, the statement read. Value added tax in the production and import of drugs will drop by a large margin. The authorities will reduce the prices of cancer drugs through centralized government procurement and eliminate premium prices for drugs by means of cross-border e-commerce. Imported innovative drugs, especially much-needed cancer drugs, will be incorporated into the catalogue of medical insurance reimbursement, the statement said. The import of innovative drugs will be accelerated and they will come into the market at an earlier date. Intellectual property rights protection of the drugs will be strengthened, the statement stressed. The data protection period of innovative drugs will be prolonged to six years, within which drugs of the same kind will not go onto the market. ^ top ^

Xi Jinping puts China's car industry in top gear with plans to raise foreign investment cap, lower import tariffs (SCMP)
2018-04-11
Global carmakers received a double dose of good news from China's President Xi Jinping on Tuesday: a reduction in import tariffs and a raised investment cap with regards to mainland-based factories. New energy carmakers such as Tesla are set to become the top beneficiaries of a relaxation by Beijing on foreign ownership in the automobiles sector, following the statements by Xi in Hainan province. He told the Boao Forum that China will further loosen its grip on manufacturing industries as it seeks more foreign investment in the car, shipbuilding and aircraft sectors. Xi said car import tariffs would be slashed significantly as China sincerely hopes to spur imports. The remarks by the Chinese president, viewed as opening the door to potential negotiations with the United States on a range of trade disputes, raise the hopes for wholly owned plants by Tesla and other foreign brands, including General Motors, Ford and Volkswagen, which are only allowed to manufacture their vehicles in China through partnerships with local carmakers at present. The Chinese president did not provide details on how the investment cap would be raised and to what extent the 25 per cent import tariffs on vehicles would be lowered, but Elon Musk, the chief executive of Tesla, the biggest-selling electric carmaker in the US, reacted quickly to the positive remarks. "This is a very important action by China," Musk said in a Twitter post. "Avoiding a trade war will benefit all countries." Tesla was believed to have edged closer to the building of a factory at Lingang New City, part of Shanghai's free-trade zone last year, according to sources with knowledge of the plan. In November, Musk said Tesla was three years away from making cars on the mainland. But the ownership structure has proven to be a stumbling block, with Chinese authorities insisting that the plant be set up through a joint venture with local partners, while Musk wanted it to be fully owned by Tesla, according to Bloomberg. The announcement by Xi has paved a way for the Shanghai government to bring Tesla back to the negotiating table, but it remains to be seen whether any progress will be made in the near future, according to a local government official who spoke on condition of anonymity. Tesla would not comment on whether further talks on a mainland-based factory will resume soon. Wang Sheng, an analyst with Shenwan Hongyuan Securities, said the president's remarks at the Boao Forum represented a substantial step forward in encouraging majority ownership by foreign car brands in China. In November, China's Ministry of Foreign Affairs said the country would attempt to raise the limit on ownership by foreign investors in the new-energy vehicle sector from the current 50 per cent, allowing international carmakers to take a controlling stake or have full ownership of their mainland operations. But it said the potential liberalisation will take effect only in China's 11 free-trade zones. Since Xi did not mention that the relaxed foreign investment cap will be restricted to these zones, "the openness [of the economy] is higher than what the market had expected," said Wang. "In the long term, reduced import tariffs on vehicles, particularly these luxury models, will force the domestic auto industry to upgrade its technologies." Beijing has been keeping a tight grip on foreign ownership in the car industry to protect local players, albeit with growing calls from business groups to loosen the requirements. Locally produced cars under foreign brands dominate China's car market, the world's largest. The mainland imported 17,000 Tesla vehicles in 2017, a jump of 51.6 per cent from a year earlier, according to the China Automobile Dealers Association. "It is possible that measures announced today could help relieve global trade tensions," said Zhu Chaoping, a strategist at JPMorgan Asset Management. "It is also noteworthy that Xi set a timeline to finish some key reforms this year, suggesting the government might accelerate the reforms." General Motors said on Tuesday its growth in China was a result of working with its joint venture partners, suggesting that it had no immediate plan to set up a wholly owned plant any time soon. "We will continue to work with our partners to provide high-quality products and services to consumers," the company said. ^ top ^

China puts IP rights in sight as world's factory evolves from bootleg hub to top patent owner (SCMP)
2018-04-11
China's government has restructured an agency and empowered it to crack down on violations, taking the boldest step in decades to strengthen the country's protection of intellectual property rights, as the world's factory evolved from a notorious maker of counterfeit goods into a leading holder of patents. The restructuring of the agency - the State Intellectual Property Office - was first announced early last month during the annual meetings of China's legislature, but given a fresh impetus and prominence in Chinese President Xi Jinping's keynote speech at the Boao Forum for Asia conference in Hainan. China is seeking the "normal" technology cooperation with foreign companies and would protect "legitimate" intellectual property rights of foreign firms in China, Xi said in his televised speech. The president's remarks reflect a recognition that China needs to move away from the long shadow of counterfeits and bootlegs that cast a pall over the push for the "Made in China 2025" blueprint to transform the country into an advanced manufacturing economy. The rules and process related to China's patents and other intellectual property rights have been the "most sensitive" issue among European businesses operating in the country, taking precedence even before access to the financial markets, said Romano Prodi, former Italian Prime Minister and President of the European Commission. "This is what people are saying, that the Chinese are copying everything," Prodi said on the sidelines of Boao. "We have to have rules to regulate that." The Chinese president's pledge is very important, but "must translate into concrete negotiation, discussion, starting from some sort of platform with precise and concrete measures," Prodi said, adding that it's also in China's own interest to improve the country's protection of intellectual property, since research and Chinese innovation has advanced by so much in the past decade. Besides the more pedestrian sales of bootleg fashion wear, leather goods and toys, China's government also stands accused of facilitating the theft of overseas technology through hackers and cyber thieves. […] "Public awareness is also very weak. We are not shy about stealing knowledge." Those words were greeted rapturously by US President Donald Trump on Wednesday, who tweeted: "Very thankful for President Xi of China's kind words on tariffs and automobile barriers...also, his enlightenment on intellectual property and technology transfers. We will make great progress together!" To underscore the point, China has been leading the world in filing for patents and trademarks, with 42.8 per cent of all filings last year, an increase of 4.8 percentage points from the previous year according to data by the World Intellectual Property Organisation (WIPO) in Switzerland. The US was second place last year, with 19.4 per cent of global filings, the data showed. "The cost of defending intellectual property right is high, but the penalty for violations have generally been low in China," said Xie Xianghui, a partner at Shenzhen-based Grandall law firm. "This has led to frequent infringements. It has been the biggest problem for innovation and hi-tech firms in China, which either makes it hard for enforcers to recover their costs, or unwilling to invest more in research." China's own awareness of the country's home-grown innovations has also heightened, especially in so-called dual-use technologies that have both military and civilian applications, including supercomputers, drones, dredgers and rocket launch simulators. The State Intellectual Property Office (SIPO), located at Jimenqiao in the Chinese capital, reports to the National Markets Supervision Administration (NMSA), which itself was the merger of three agencies with responsibilities overseeing industry and commerce, inspection and quarantine, as well as food and drugs. SIPO's current director Shen Changyu, 54, is a specialist in mouldings and fabrications, with a doctoral degree. He was the chief scientist in the Chinese government's "973 Programme," a state project since 1980 for conducting research into fundamental sciences, including studies in agriculture, energy, information and resources. ^ top ^

 

DPRK

China continues key role in Korean Peninsula denuclearization (Global Times)
2018-04-13
North Korean leader Kim Jong-un paid an unofficial visit to China on March 25-28. Kim told President Xi Jinping his country was "committed to denuclearization," adding that North Korea would achieve peace by "taking progressive and synchronous measures." The two Koreas agreed to hold the third inter-Korean summit on April 27 in the truce village of Panmunjom, Seoul's unification ministry said on March 29 after a high-level dialogue between the two sides. The summit talks will discuss the denuclearization of the Korean Peninsula, the easing of military tension, and the establishment of a permanent peace mechanism. A meeting between Kim and US President Donald Trump is expected to be held in May. The rising rapprochement on the peninsula comes as a result of joint efforts by relevant parties to promote peaceful development and China's constructive role in the issue. As a permanent member of the UN Security Council, China is committed to safeguarding peace and stability on the peninsula and playing a leading role in resolving the Korean Peninsula issue through dialogue and consultation. Kim's visit to China came at a special time. The two countries reached a consensus on denuclearization and confirmed China's decisive role in solving the peninsula issue. This has dealt a blow to allegations that China is being marginalized on the North Korea issue, and makes hardliners in the US view North Korea's pursuit of nuclear weapons in an objective way. Kim told Xi that the issue of denuclearization on the Korean Peninsula could be resolved if South Korea and the US responded to goodwill efforts and created an atmosphere of peace and stability while taking progressive and synchronous measures for the realization of peace. The Xi-Kim summit has made clear Pyongyang's basic requirements and bottom line in achieving denuclearization on the peninsula and wiped out some strategic concerns. In this regard, South Korea and the US can prepare to hold summits with the North in a well-ordered way. The Xi-Kim meeting has shown that China remains key to directing the situation on the peninsula at a critical juncture. China's unique role in the Korean Peninsula issue is unshakable and can never be excluded. At a critical moment of change in China-US ties, it is necessary to stabilize China's relations with its neighbors. Hopefully China's proposal of a "dual suspension" and "dual track" approach can be carried out in North Korea's talks with the South and the US. The denuclearization on the peninsula can be achieved if relevant parties ramp up efforts to ensure smooth strategic communication, enhance strategic mutual trust and balance their reasonable interest concerns. At the same time, all sides should demonstrate sincerity and patience in addressing the North Korea nuclear issue. ^ top ^

North Korea wants summit with Kim Jong-un and Donald Trump in capital Pyongyang, CNN reports (SCMP)
2018-04-13
North Korea is hoping to hold the planned summit between its leader Kim Jong-un and US President Donald Trump in Pyongyang, CNN reported, citing several US administration officials. "The North Koreans are pushing to have the meeting in their capital, Pyongyang," but it is "unclear whether the White House would be willing to hold talks there," CNN said. Ulan Bator, the Mongolian capital, has been also floated as a possible location of the summit, it said. According to CNN, US and North Korean intelligence officials "have spoken several times and have even met in a third country" to discuss the venue of the first-ever summit between the United States and North Korea. The talks are to lay the groundwork for a meeting between Central Intelligence Agency Director Mike Pompeo and his North Korean counterpart ahead of the Trump-Kim talks. While Trump is "looking forward to the summit," the schedule could be late May or even early June, CNN said. Trump and Kim were expected to meet by the end of May following talks between South Korean President Moon Jae-in and Kim in late April. ^ top ^

 

Mongolia

Speaker meets parliamentary delegates of Buryatia (Montsame)
2018-04-12
Speaker M.Enkhbold extended his satisfaction on development of Mongolia-Russia relations in all fields, emphasizing important role of crossborder cooperation, especially ties with Buryatia. "It is our duty to remove barriers in crossborder trade and economic cooperation through making initiatives and negotiations." He expressed his appreciation on intensified cooperation between Mongolian Parliament and the People's Khural of in recent years within Mongolia-Russian inter-parliamentary cooperation. Mr.Ts.E.Dorjiyev requested Mongolian Parliament to render support on successful realization of agreements established during the visit of the Head of the Republic of Buryatia Alexey Sambuevich Tsydenov to Mongolia in January, 2018. Trade turnover of the two countries increased by 26 percent in 2017 compared to 2016, underlined Mr.Ts.E. Dorzhiev and put proposals on bilateral cooperation, including to import meat and meat products from Mongolia, export good quality wheat from Buryatia, to make repairment of locomotives and rolling stock of Ulaanbaatar Railway JSC in Ulan-Ude locomotive repair plant, to supply new model of AH-2 aircraft to Mongolia which plan to be manufactured by Ulan-Ude Aviation Plant next year, to open new tourism route Ulan-Ude-Ulaanbaatar-Erenhot and to implement joint tourism project based on Lake Baikal and Khuvsgul Lake National Park. Speaker M.Enkhbold expressed Mongolian Parliament will attach special attention on implementing the recommended projects, programs and activities. ^ top ^

Mongolia needs to raise its long-term potential, says World Bank (Montsame)
2018-04-12
Mongolia needs to develop measures aimed at raising its long-term potential and manage substantial domestic and external exogenous risks, says the latest World Bank economic report on the East Asia and Pacific region released on April 12. "In Mongolia, the economy grew by 5.1 percent in 2017 exceeding expectations, following robust coal exports, strong foreign direct investment, and continued macroeconomic stabilization. The fiscal stance improved substantially in 2017 with overall deficit dropping to 1.9 percent of GDP from 17 percent in 2016. Growth is projected to improve further to 5.3 percent in 2018 and to over 6 percent in 2019-20. Private investment will remain a key driver for growth in the medium-term, especially in mining, trade and transport services," it says. "Moving forward, to maintain a robust economic growth less vulnerable to commodities market shocks, Mongolia needs to develop measures aimed at raising Mongolia's long-term potential," said Jean-Pascal Nganou, Senior Economist for Mongolia. "In addition, managing substantial domestic and external exogenous risks would be critical. Risks include potential delay of implementation of mega projects in the mining sector, the persistence of bottlenecks at the border with China, and slow implementation of measures to address money laundering issues." Enhancing Potential, the April 2018 edition of the World Bank East Asia and Pacific Economic Update, underscores that even with favorable prospects, policy makers in the region will be well advised to recognize and address emerging challenges. ^ top ^

Former Prime Ministers under arrest (Montsame)
2018-04-11
The IAAC is investigating into possible abuse of power by certain government officials during the negotiations for the Oyu Tolgoi agreements, namely the Investment Agreement between the Government of Mongolia and Ivanhoe Mines Mongolia Inc LLC and Ivanhoe Mines Ltd and Rio Tinto International Holdings Limited, signed on October 6, 2009, and the Oyu Tolgoi Underground Mine Development and Financing Plan, signed on May 18, 2015. Former Prime Ministers S.Bayar, who was in office in 2007-2009, and Ch.Saikhanbileg, who led the Cabinet in 2014-2016, have thus been put under arrest in the course of the investigation. The individuals are being held at the Pre-trial Detention Center 461, after being arrested on April 10. Following a request for prosecution by the IAAC, the Ulaanbaatar Prosecutor's Office filed for continuation of the detention to the corresponding court on April 11. The IAAC previously arrested former Minister of Finance S.Bayartsogt, former Director of the Mongolian Tax Administration B.Ariunsan and former CEO of Erdenes Tavan Tolgoi LLC B.Byambasaikhan over the same charge, who are now being detained for 30 days pursuant to a court ruling on April 3. ^ top ^

Mongolia and China to strengthen ties (Montsame)
2018-04-11
Mongolia and China have agreed to advance bilateral relations in several spheres at a high-level meeting held in Chinese Bo'ao town. Prime Minister U.Khurelsukh paid a courtesy call on President of the People's Republic of China Xi Jinping on April 10 in the course of his official visit to the country. The meeting was held on the sidelines of the Boao Forum for Asia. The Prime Minister congratulated the Chinese President on his re-election and conveyed President Kh.Battulga's greetings. The Prime Minister affirmed Mongolia's foreign policy priority to nurture a mutually beneficial and friendly relationship with China, while noting the Government's commitment to the strengthening and enrichment of Mongolia-China comprehensive strategic partnership with new impetus. While reciprocating President Kh.Battulga's greetings, President Xi Jinping reiterated China's consistent respect of the independence, sovereignty and territorial integrity of Mongolia and stressed that China attaches importance to its ties with Mongolia in line with its foreign policy principles. The sides expressed mutual commitment to reinforce political trust based on respect of each other's core interests and to maintain the frequency of high-level visits. The sides agreed to mark the 70th anniversary of establishment of diplomatic relations with a grand celebration next year. While acknowledging wide opportunities to boost bilateral trade and economic cooperation, the sides agreed on several actions to be taken to reach the goal to increase bilateral trade turnover to USD 10 billion by 2020 – intensify cooperation mechanisms, effectively utilize the channel of exchange through the Mongolia-China Expo, reduce non-tariff barriers in trade, activate cooperation in agriculture, tourism and industrial capacity and accelerate the progress of China-funded projects. The Chinese side expressed its readiness to focus on the establishment of an agreement on energy cooperation and ratification of the Intergovernmental Agreement on Railway Transit Transportation. The sides noted how the Chinese Belt and Road initiative opens new opportunities to deepen bilateral cooperation and agreed to work on correlating Mongolia's Development Road programme to the initiative. The sides also emphasized the role of active cultural and educational exchange and people-to-people relations in bilateral cooperation, expressing mutual readiness to enforce the implementation of actions agreed by the Mongolia-China Humanitarian Exchange Council. The sides exchanged views on other matters such as regional and trilateral cooperation with Russia. They appreciated positive outlook of the Korean Peninsula and the activation of high-level dialogue between nations in the region, expressing willingness to put efforts into the denuclearization of the Korean Peninsula. Furthermore, the sides also touched upon bilateral cooperation within the Shanghai Cooperation Organization (SCO) and agreed to cooperate on Mongolia's participation in the SCO Summit to be held in Qingdao and organizing a high-level meeting of heads of state of Mongolia, China and Russia during the Summit. ^ top ^

IMF satisfied at progress of Extended Fund Facility programme (Montsame)
2018-04-11
Prime Minister U.Khurelsukh was informed of the upcoming visit of an IMF team to Mongolia during his meeting with Christine Lagarde, IMF Managing Director, on April 10 on the sidelines of the Boao Forum being held in China. The Prime Minister emphasized the positive outcome of the IMF program in Mongolia such as accelerated economic growth, increased investment and improved budget balance, appreciating the support of the IMF to Mongolia. "The Government of Mongolia is working towards reducing budget deficit through improvement of budget discipline and limitations on expenditure, and diversifying the economy," the Prime Minister said. Managing Director Lagarde expressed satisfaction on the progress of the Extended Fund Facility programme, expressing her confidence that Mongolia will ensure continuity of the successful implementation. The IMF team will be meeting corresponding Mongolian organizations regarding the programme during their June visit. Prime Minister U.Khurelsukh invited the Managing Director to visit Mongolia at her convenience. ^ top ^

Mongolia and Turkey targets to increase trade turnover to usd 300 million (Montsame)
2018-04-13
Today Prime Minister U.Khurelsukh held official talks with Turkish Prime Minister Binali Yildirim, who is paying an official visit to Mongolia. Mongolia pays attention on developing comprehensive partnership and cooperation with Turkey and aims at broadening cooperation in all spheres, emphasized Prime Minister U.Khurelsukh. He expressed his satisfaction with intensifying bilateral relations between the two countries in the fields of politics, defense, culture, education and science as a result of bilateral efforts. PM U.Khurelsukh also underlined that the two parties agreed to conduct joint studies on feasibility of establishing agreement on Free Trade between Mongolia and Turkey and it has great importance to intensify the economic ties further. "The Republic of Turkey has rapidly developed health, road, transportation and communication sectors in the last 15 years. We are ready to share our experiences on it with Mongolia," said PM Binali Yildirim. The sides put certain proposals targeting to reach trade turnover USD 300 million in a short time which was USD 31 million in 2017. After official talks Prime Minister of the Republic of Turkey Binali Yıldırım and Prime Minister of Mongolia U.Khurelsukh attended the ceremony of signing bilateral cooperation documents. ^ top ^

 

Aurèle Aquillon
Embassy of Switzerland
 

The Press review is a random selection of political and social related news gathered from various media and news services located in the PRC, edited or translated by the Embassy of Switzerland in Beijing and distributed among Swiss Government Offices. The Embassy does not accept responsibility for accuracy of quotes or truthfulness of content. Additionally the contents of the selected news mustn't correspond to the opinion of the Embassy.
 
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