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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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  1-5.4.2019, No. 762  
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Foreign Policy

No summit with China's Xi Jinping until a deal to end trade war is final, Donald Trump says (SCMP)
2019-04-05
US President Donald Trump met with China's chief trade negotiator, Vice-Premier Liu He, at the White House on Thursday afternoon, but said a summit with his Chinese counterpart Xi Jinping would not be announced until a trade deal was in place. "If we have a deal, there will be summit. I think we will know over the next four weeks," Trump told reporters in the Oval Office, adding that a final, written agreement would take an additional two weeks. "I look forward to seeing Xi; he will be here." Trump didn't say whether that meeting would be in Washington or his Mar-a-Lago resort in Florida, where they met for the first time two years ago. "Progress is being made at a very rapid pace," said the president, who was joined by US and Chinese trade negotiators, with Liu at his side. In previous White House meetings this year, Liu had sat across from Trump. "We've agreed to far more than we've left to agree to," Trump told reporters. Despite repeatedly stating his support for tariffs during the Oval Office press conference, Trump declined to comment about his intentions regarding his tariff strategy with China, saying that it would be something he would be discussing directly with Liu behind closed doors. Trump said "yes" when asked whether enforcement remained a sticking point in the negotiations. "We have to make sure there is enforcement," he said, adding that he was hopeful agreement on such verification mechanisms would be reached. As was the case in previous meetings between the two, Liu delivered a personal letter from Xi to the US president, a message that Trump described as "beautiful". In the past year, Trump has imposed duties on about US$250 billion worth of Chinese imports, and Beijing responded with tariffs on US agricultural and industrial products. Negotiations have gone back and forth about when and where Trump and Xi would meet to sign a deal ending the trade war. A source said China has pushed back on the proposal for a meeting on the sidelines of G20 summit in June in Japan and suggested a sit-down gathering later this month in the US. China has made further concessions during this round of talks, including greater opening of its markets, according to a source familiar with the US position. "We've made a lot of headway, we're working very hard," said Robert Lighthizer, the US Trade Representative and chief negotiator in the current talks. "We have a great partner in the vice-premier. He's become a good friend. I think his commitment to reform in China is the reason that this has a chance." "There's still some major, major issues left, but we're certainly making more progress than we would have thought when we started," Lighthizer said. The two sides resumed trade talks four months ago and have gone through nine rounds of negotiations, including phone conversations and intensive sit-down discussions. People familiar with the situation said both sides were exhausted and under pressure to bring the matter to a conclusion. Liu arrived in Washington on Monday and began "endgame" negotiations with his US counterparts on Wednesday. In a rare show of emotion, he waved to onlookers before entering the US trade representative's offices. Looking beyond a possible trade agreement, Trump said he hoped to start discussions with China and Russia on military spending reductions. "Between Russia and China and us, we're all making hundreds of billions of dollars worth of weapons, including nuclear, which is ridiculous," Trump said. "It doesn't really make sense that we're all doing this," he added. "I think we're the leader. We're always going to be the leader. I think we have to be the leader. It would be much better if we all got together and we didn't make these weapons. I think that's something that could be a phase two, after [a trade deal] is done." The three countries "can come together and stop the spending and spend on things that maybe are more productive," Trump said. When asked by the US leader what he thought of such a proposal, Liu said: "I think it's a very good idea. We try to make a balance". ^ top ^

Xi says new substantial progress made on text of China-U.S. economic and trade agreement (Xinhua)
2019-04-05
Chinese President Xi Jinping said in a message to his U.S. counterpart, Donald Trump, that new substantial progress has been made on the text of the China-U.S. economic and trade agreement in the past more than one month. In the message conveyed by Chinese Vice Premier Liu He at a meeting with Trump on Thursday, Xi encouraged the two sides to keep up with the spirit of mutual respect, equality and mutual benefit, and resolve issues of mutual concern so as to conclude the negotiations on the agreement text as soon as possible. ^ top ^

Chinese telecoms giant Huawei was under secret US surveillance, US fraud hearing told (SCMP)
2019-04-05
US prosecutors used a special warrant to secretly gather information about Huawei Technologies Co Limited for evidence of fraud and espionage charges against China's largest telecoms equipment maker, a US court was told on Thursday. Assistant US Attorney Alex Solomon said at the hearing in federal court in Brooklyn, New York, that the evidence, obtained under the US Foreign Intelligence Surveillance Act (FISA), would require classified handling. The government notified Huawei in a court filing on Thursday of its intent to use the information, saying it was "obtained or derived from electronic surveillance and physical search", but gave no details. When the hearing resumes on June 19, Federal District Judge Ann Donnelly will decide how the case is to proceed, based on the gathered evidence. The US government has been pressuring other countries to drop Huawei from their cellular networks, worried that its equipment could be used by Beijing for spying. The company says the concerns are unfounded. At the US legal team's request, Judge Donnelly gave federal prosecutors more time to gather evidence – involving the review of a large number of documents. James Cole, a US-based lawyer for Huawei and Huawei Device USA Inc, the company's American subsidiary, consented to the request. Donnelly designated the case "complex" – providing the lawyers with up to 150 days to conduct their discovery, 30 more than they would have had under the standard period. Huawei, based in Shenzhen in southeastern China's Guangdong province, and its US unit stand accused of defrauding banking and financial services company HSBC and other banks by misrepresenting Huawei's relationship with a suspected front company, Skycom Tech Co Limited, in Iran. The Chinese telecommunications giant has been charged in two sets of indictments with nearly two dozen counts of stealing trade secrets, violating economic sanctions and concealing its Iran business dealings via an unofficial subsidiary. Cole, who talked over most of the procedural decisions with the government's lawyers, expressed concern about the slow progress of the case. "The case started in August (last year), but the discovery hasn't begun yet," he said at the hearing. "I think they should begin soon." The lawsuit gained public attention in December when Canadian authorities arrested Huawei financial chief Meng Wanzhou, a daughter of Huawei founder Ren Zhengfei, in Vancouver in response to a US request for Meng's extradition. Multiple charges were announced against Huawei, Meng and affiliated companies. A federal grand jury in Brooklyn charged Huawei and Meng with money laundering, bank fraud, wire fraud and conspiracy. Huawei was also charged with conspiracy to obstruct justice. A separate indictment from Washington state accused Huawei, Skycom and Meng of stealing trade secrets from the telecommunications company T-Mobile. Those charges stemmed from a civil lawsuit filed by T-Mobile USA in 2014 over a robot nicknamed Tappy that was used in testing smartphones. If the Huawei case becomes a long, drawn-out affair, it has the potential to increase feelings of uncertainty among Western governments, corporations and academic institutions about Huawei and other large Chinese telecoms companies that the Trump administration has portrayed as security threats. While the US pressures other governments to terminate their 5G technology contracts with Huawei, top American universities are shunning research money from Huawei. Princeton University, Stanford University, Ohio State University and the University of California at Berkeley have all said they would cut or loosen ties with the company. On Wednesday, the Massachusetts Institute of Technology, another top-ranking American university, said it was breaking its funding ties with Huawei and ZTE, another big Chinese smartphone maker, citing the risks of continuing relations while the two companies were under US federal investigation. "At this time, based on this enhanced review, MIT is not accepting new engagements or renewing existing ones with Huawei and ZTE or their respective subsidiaries due to federal investigations regarding violations of sanction restrictions," Richard Lester, MIT's associate provost, and Maria Zuber, the school's vice-president for research, said in a letter to staff. The tensions between Washington and Beijing over the months-long trade war have made the Huawei case a focus of the Trump administration's hardline stance on China's allegedly improper trade and business practices. Meng's arrest has also weighed heavily on the relationship between China and Canada: a number of Canadians in China have been arrested on various charges since her detention. Last month, the Canadian government decided to move forward with proceedings to extradite Meng to the US, although she has said she is innocent and is fighting her extradition. She also is suing Canada and two federal agencies for detaining and interrogating her before declaring her under arrest. Meanwhile, Huawei has filed suit against the US government, saying Washington overstepped its bounds when it banned the use of the company's equipment by US government agencies. Huawei has pleaded not guilty to 13 counts of bank and wire fraud contained in one of the two indictments. Assistant US Attorney David Kessler said at the arraignment in Brooklyn that prosecutors were serving Skycom with the charges, but had not yet scheduled an arraignment for the company. ^ top ^

Philippine President Rodrigo Duterte tells China to 'lay off' island in disputed South China Sea (SCMP)
2019-04-05
Philippine President Rodrigo Duterte told China on Thursday to "lay off" an island occupied by Manila in the disputed South China Sea and said he would deploy his soldiers there if Beijing touches it. Duterte's remarks, which he said was not a warning but rather a word of advice to a friend, follow a statement made by the foreign affairs ministry calling the presence of more than 200 Chinese boats near Thitu Island illegal. "I will not plead or beg, but I am just telling you that lay off the Pagasa because I have soldiers there. If you touch it, that's a different story. I will tell the soldiers 'prepare for suicide mission'," Duterte said in a speech, using the local name for Thitu. Duterte has repeatedly said he would not go to war with China because it would be suicide. The Philippines military has described the boats as a "suspected maritime militia". "Such actions, when not repudiated by the Chinese government, are deemed to have been adopted by it," the Department of Foreign Affairs said in a rare rebuke of Beijing. Duterte, who has pursued warmer ties with China since taking office in 2016 in exchange for billions of dollars of pledged loans and investment, said he would not allow China to occupy Thitu Island because it "belongs to us". The presence of the trawlers near Thitu Island raises questions about their intent and role "in support of coercive objectives", the ministry said, days after the Philippines lodged a diplomatic protest with China. In Beijing, Foreign Ministry spokesman Geng Shuang did not refer directly to Manila's protest, but he said bilateral talks on the South China Sea held in the Philippines on Wednesday were "frank, friendly and constructive". Both sides reiterated that South China Sea issues should be resolved peacefully by parties directly involved, he said. The Philippines has monitored the Chinese boats from January to March this year, according to military data. "These are suspected maritime militia," Captain Jason Ramon, spokesman for the military's Western Command, said this week. "There are times when they are just there without conducting fishing. At times, they are just stationary." The Philippines, Brunei, China, Malaysia, Taiwan and Vietnam have competing claims of sovereignty in the South China Sea, a conduit for goods in excess of US$3.4 trillion every year. In 2016, the Permanent Court of Arbitration in The Hague invalidated China's claim to sovereignty over most of the South China Sea. "We call on concerned parties to desist from any action and activity that contravenes the Asean-China Declaration on the Conduct of Parties in the South China Sea, as these generate tension, mistrust and uncertainty, and threatens regional peace and stability," the Philippines ministry said. Last month, US Secretary of State Mike Pompeo assured the Philippines it would come to its defence if it came under attack in the South China Sea. ^ top ^

China offers assistance to woman arrested at Trump resort carring malware USB (HKFP)
2019-04-05
Chinese diplomats have contacted a woman arrested at US President Donald Trump's Mar-a-Lago resort in Florida and offered her consular services, the Chinese foreign ministry said Thursday. The woman was arrested Saturday at Trump's resort after attempting to gain access while carrying multiple mobile phones and a thumb drive containing malware, court documents revealed. The US president was staying at the Florida resort at the time. Zhang Yujing was arrested and charged with making false statements to federal officers and knowingly entering a restricted building — which Mar-a-Lago becomes while Trump is in residence. The Chinese Consulate General in Houston was notified of the arrest and "contacted the person concerned" to provide assistance, foreign ministry spokesman Geng Shuang said at a regular briefing Thursday, without offering details. An arrest document in the federal district court of Palm Beach said Zhang first presented herself as a member and said she was headed to the pool — despite not having a swimsuit. She then claimed to be attending a non-existent Chinese-American friendship event. After she was detained, Zhang said she had been asked by a Chinese friend named Charles to attend the event and try to speak with a member of the president's family about US-China economic relations, the document said. The woman carried two passports from the People's Republic of China, according to the US Secret Service, which arrested her. Trump owns the luxurious beachside club in the wealthy Atlantic coast city of Palm Beach, and travels there frequently on weekends to play golf and meet friends. He keeps a residence in a private area of the club, but was reportedly golfing at a nearby course around the time Zhang was there. Two events had been recently advertised at Mar-a-Lago for Saturday by a local Chinese-American businesswoman, Cindy Yang, on Chinese language social media, the Miami Herald said. Yang is a Mar-a-Lago member who built and later sold a chain of massage parlours in Florida, which were recently raided by police over prostitution. In recent years she has promoted herself as a path of access to the US president, and Yang's website featured pictures of her with Trump, his family and officials. The Herald also said an event promoter who Yang worked with was named Charles Lee. ^ top ^

China sends new naval destroyer fleet to Somali waters for escort mission (Global Times)
2019-04-04
China's 32nd convoy fleet to the Gulf of Aden and Somali waters set sail from a military port in Zhoushan, East China's Zhejiang Province on Thursday, the People's Liberation Army (PLA) Navy official WeChat account announced that same day. The naval fleet includes the guided missile destroyer Xi'an, the missile frigate Anyang and the Gaoyanghu, a comprehensive supply ship. This will be the first time that the Xi'an and Anyang have participated in an escort mission. One of the country's new generation of self-developed Type-052C guided missile destroyers, the Xi'an, which entered into service in February 2015, possesses over-the-horizon strike capability at sea. The Anyang, a domestically developed frigate, entered into service in April 2018 and is capable of attacking surface ships and submarines alone or in conjunction with other naval forces. It also has strong long-range alert and air defense capabilities. It is part of China's new generation of main combat ships. ^ top ^

New Zealand Prime Minister visits China (Global Times)
2019-03-31
New Zealand Prime Minister Jacinda Ardern's long-delayed visit to China, which started Sunday, is expected to focus on bilateral and economic trade issues, including speeding up negotiations on the upgrade of the 11-year-old China-New Zealand Free Trade Agreement (FTA) and resolving disagreements over the Huawei case. The visit, also Ardern's first official visit to China since she was elected prime minister in late 2017, could mean a lot for New Zealand, whose relations with China - its largest goods trading partner and second-largest source of foreign tourists - have soured since the country banned Chinese telecom company Huawei from providing 5G technology to a local carrier. It is a good opportunity for New Zealand, which used to be a leader among Western countries in maintaining good relations with China, to repair and strengthen business ties with China, business representatives and analysts said. Speaking to media before her departure, Ardern said that "this is an important visit. New Zealand places a high priority on our relationship with China… Our businesses value the relationships they have and I do look forward to our ongoing engagement." The visit comes following the launch of the delayed 2019 China-New Zealand Year of Tourism in Wellington's Te Papa Tongawera, Museum of New Zealand on Saturday, which was originally planned to take place in February. The delay was claimed to be due to scheduling problems, but still fueled market worries that strained political relations with China could potentially affect New Zealand's tourism revenue. In fact, Ardern's visit to China was also postponed. The trip was scheduled in late 2018. But China withdrew the invitation at that time following strained political ties, and it was only re-issued recently. "Ardern's visit to Beijing sends a positive signal that top officials from both countries are staying in contact to solve major disputes. Communication in the tourism and culture sectors is getting back to normal," Wang Jiazheng, chief representative of the Guangdong Economic and Trade Representative Office in New Zealand, told the Global Times over the weekend. The trip has been curtailed from a three-city visit to one day in Beijing due to the Christchurch mosque terrorist attacks on March 15, media reports said. Analysts said the timing of the visit also shows the eagerness of Wellington to communicate with Beijing and the importance they place on the visit. Industry analysts noted that smoothing the deteriorating economic relations will be the priority for Ardern's visit. In 2008, New Zealand was the first developed country to sign an FTA with China. Since then, bilateral trade between China and New Zealand grew at a rate of 15 percent year-on-year on average, according to the New Zealand China International Trade Association. Due to the two countries' trade structure complementarities, more dairy and agricultural products such as kiwis and avocados from New Zealand are appearing on Chinese dining tables, while the main Chinese exports to New Zealand are electromechanical devices, textiles and clothing, said He Zhiyun, the president of the New Zealand China International Trade Association. In 2018, China became New Zealand largest goods trading partner, customs data showed. "For China, the FTA signed with New Zealand is more of a symbolic meaning, but for New Zealand [whose economy is highly reliant on foreign trade], it is truly a big deal considering the country's small economic size," He said. New Zealand's exports to China now account for about 24 percent of its total exports, far exceeding its export to the US and Australia. The New Zealand Herald quoted Ardern as saying that progress on the upgrade of the bilateral FTA, which has gone through six rounds of talks so far, are among key areas of focus for her visit. "Detailed key issues regarding intellectual property protection, equal market access on foreign investment and labor rights, areas where the two sides hold differences, will be discussed during the meeting," Yu Lei, a research fellow at the Australian Studies Center at Beijing Foreign Studies University, told the Global Times on Sunday. In addition to the trade focus, the global market is also closely watching over how New Zealand, as a member of the Five Eyes global cyber-surveillance alliance, balances its relations with China under US pressure and whether it will soften its national security-related stance toward Chinese tech giant Huawei's participation in building local 5G networks after the visit. But issues concerning the New Zealand's position in security in the Pacific islands and China's human rights issue could cast doubts on the result of the visit, analysts pointed out. In July 2018, New Zealand warned in a defense report that "China's rising influence in the South Pacific could undermine regional stability," Reuters reported. "It is likely that New Zealand may change its tone this time and instead suggest cooperation on infrastructure projects with China during closed door meetings," Yu said. Before Ardern's visit to China, Human Rights Watch, a New York-based NGO, asked New Zealand's Prime Minister to "publicly express concern" about China's policies in the Xinjiang Uyghur Autonomous Region, according to the NGO's website on Friday. New Zealand has not followed other Western countries to launch groundless accusations or criticism over China's Xinjiang policies in public or on international occasions so far. "New Zealand's approach in dealing with China is wiser and more pragmatic than other Western countries, because it did not let the differences between the two countries interrupt normal cooperation and exchanges," Li Haidong, a professor at the China Foreign Affairs University's Institute of International Relations in Beijing, told the Global Times on Sunday. On human rights issues, not only China, but also many other non-Western countries, hold different understandings and ideas to the West, so Western countries should not lecture others, especially when their human right records are far from perfect, Li said. Human rights issues are normally used by Western countries, especially the US, as a political tool to interfere in non-Western countries' internal affairs, and this is harmful to international relations, Li noted. "China would like to exchange views on human rights issue with others based on equality and mutual-respect, but will not accept groundless, arrogant and biased accusations," Li told the Global Times on Sunday. ^ top ^

 

Domestic Policy

Premier Li calls for reforms in vocational education (Xinhua)
2019-04-05
Premier Li Keqiang Thursday called on the vocational education sector to train more talent in order to aid the country's development. In an instruction to a national meeting on vocational education reform, Li said this year China planned to increase the number of students engaged in vocational education by a million. "Vocational education should try to cater to the demands of the high-end manufacturing and service sectors as well as those the market needs the most," he said. "The government will encourage enterprises and the private sector to engage in vocational education." ^ top ^

13 new job categories in step with development (China Daily)
2019-04-05
China has listed 13 new occupational classifications to keep pace with economic and technological development, according to the Ministry of Human Resources and Social Security. The professions include technicians for artificial intelligence, the Internet of Things, big data and cloud computing, as well as electronic sports specialists, unmanned aerial vehicle pilots, agricultural managers and industrial robot system operators. The ministry said in a statement that with the massive utilization of AI, the IOT, big data and cloud computing, technicians in these fields are badly needed. As industrial robots replace human labor in more factories in China, operating and maintaining robots are becoming hot professions. The demand for UAV pilots has been growing rapidly thanks to an increasing number of UAVs used in plant protection, mapping, photography, supervision of farmland, logistics and other areas. China published its first reference book on occupational classifications in 1999. It included 1,838 jobs. From 2004 to 2009, China listed 120 new jobs in 12 batches. In 2010, China started revising the reference book by adding new jobs, and finally published the latest edition of the reference book in 2015. In the past four years, as new industries bred many new jobs, China renewed the listing of occupations. The ministry said the regular releases of new job classifications could help boost employment, reform vocational education and training, and assist with policymaking in the labor market. ^ top ^

China finally issues draft rules for carbon emissions trading scheme (SCMP)
2019-04-04
China has issued the first set of draft rules for its long-awaited national carbon emissions trading scheme (ETS) since it trumpeted the launch of the platform more than a year ago. The release of the document, which will be open for public consultation until May 2, by the Ministry of Ecology and Environment late on Wednesday brings China, the world's biggest greenhouse gas emitter, closer to actual emissions trading that could help it meet commitments to tackle climate change. The ministry said both institutional and individual investors will be allowed to trade. Quotas for trading on the platform will be set and allocated by the State Council, China's cabinet, based on factors including economic growth and the country's "energy structure". Although China has repeatedly said it is working on the legal and technical infrastructure for the scheme, the draft is the first official document outlining ETS trading parameters to be released since the launch was announced in December 2017. According to the draft, each unit in trading quotas will represent 1 tonne of carbon dioxide equivalent. A senior climate official said on Saturday that China expected to see the first transaction on the ETS next year. China plans to include all its coal-fired power plants, accounting for about 3 billion tonnes of greenhouse gas emissions, in the ETS from the first stage of trade, making it the world's biggest market for carbon emissions. China has also been gathering data from its sprawling steel industry, which is one of the sectors that will be involved in the second stage of the scheme. ^ top ^

Securities Law revision likely later this year (China Daily)
2019-04-04
China is likely to adopt the revised Securities Law by the end of the year, in a move to lay the legal foundations for capital market reforms prioritizing the registration system, experts said. The revised law is expected to feature intensified investor protection and a crackdown on breaches by listed companies, and should be formulated to nurture a stronger capital market, they said. Revising the Securities Law has been listed in this year's legislative plans, according to the Standing Committee of the National People's Congress, China's top legislative body. During the annual meeting of the NPC in March, five motions to revise the Securities Law were submitted to the NPC for deliberation. Li Chao, vice-chairman of the China Securities Regulatory Commission, the top securities regulator, said piloting the registration system requires the revision of the Securities Law and the Criminal Law. He made the remarks at the Boao Forum for Asia on Friday. The moves show that China has expedited work to revise the fundamental law governing the capital market, which is of "great urgency and necessity", said Wang Tingting, an associate professor of finance at the Central University of Finance and Economics in Beijing. On the one hand, registration system reform requires the Securities Law to provide legal grounds for this reform and to strengthen information disclosure rules, Wang said. China has pushed forward efforts to launch the science and technology innovation board which will pilot the registration system, and the market expects the new stock trading platform to be launched around the middle of this year. "Compared with the approval system currently adopted by the A-share market, the registration system will rely more on the market to judge the value of listed firms. This means related provisions must be revised to ensure investors are well-informed," Wang said. On the other, the current version is too outdated to regulate the market effectively, said Wang. "After taking effect in 1999, the Securities Law has not seen systematic re-examinations, despite the revision in 2005 and several minor amendments." Liu Junhai, director of the Business Law Center at Renmin University of China, expects the revised law to be adopted by the end of the year, after no more than two rounds of deliberation by the top legislature. The revised draft was reviewed twice in 2014 and 2017. "The key role of the revised law will be building an investor-friendly legal system, as the relatively weak investment function of China's capital market has dampened its efficiency and attraction." That entails strengthened investor protection and more stringent punishment of listed firms' legal breaches, Liu said. During a high-profile meeting in February, President Xi Jinping said efforts should be made to address the current situation where the costs of legal and regulatory breaches in the financial sector, especially in capital markets, are too low. Zhu Jiandi, an NPC deputy and chief partner of BDO China Shu Lun Pan CPAs, a major domestic accounting firm, submitted a motion to raise the fine for noncompliance with information disclosure rules during this year's annual meeting of the NPC. According to Zhu, the current Securities Law sets the maximum fine faced by a listed company engaging in a financial fraud at 600,000 yuan ($89,300)-far less than the potential illegal benefits-and thus cannot well deter violations and protect investors' rights. Hong Rong, founder of Shanghai-based investor education platform Hongda Education, said the top priority of the updated law should be nurturing a stronger capital market to better serve the real economy. "For this purpose, current provisions that have constrained development of the market should be removed," Hong said. Specifically, Hong said the current law imposes much stricter regulations on the securities industry than in mature capital markets. This has made it hard for core market intermediaries to innovate and become more capable. The revised law is likely to and should grant securities firms the right to manage clients' settlement funds, giving them greater freedom to manage clients' wealth and more flexibility in establishment, Hong said. "Meanwhile, the revised law should leave room for the future development of the capital market," Hong said. Such arrangements include allowing foreign companies to go public on the domestic capital market, Hong said. "These situations have not taken place yet, but the law should be oriented toward this in the future." ^ top ^

China Law Society aims for think tank of law-based governance (Xinhua)
2019-04-04
The China Law Society (CLS) will try to be the think tank for ensuring every dimension of governance is law-based, said its chief, Wang Chen, at a forum Thursday. The CLS should firmly uphold the Party's leadership and lead legal workers to follow the path of socialist rule of law with Chinese characteristics, said Wang, also a member of the Political Bureau of the Communist Party of China Central Committee. The organization should take the advantage of its extensive connections among legal academia and professions and act as a bridge linking legal workers with the Party and government, he said. ^ top ^

China to further pilot medicine procurement program (Xinhua)
2019-04-04
A State Council executive meeting concluded Wednesday has called for benefiting more people when they seek medical care. The conference called for further promoting a pilot medicine procurement program, short supply medicine monitoring and coping measures, as well as medical assistance. The pilot medicine procurement program was tested in 11 major cities to lower drug prices and reduce the burden on patients. A total of 25 drugs were selected and their prices were cut down by 52 percent on average, with the biggest drop rate over 90 percent. The medicine procurement program should be further improved while quality supervision and supply guarantee of selected drugs should be strengthened, so as to lessen the price and benefit the people. ^ top ^

China names and shames local governments for mistreating foreign investors (SCMP)
2019-04-03
China has publicly named and shamed dozens of its local governments for mistreating foreign businesses in the latest effort to woo overseas investment with the country's role in the global value chain under threat from the trade war with the United States. The National Audit Office said in its quarterly report that it had found 45 local authorities who had committed violations relating to levying unauthorised fees and delays in granting business licenses. The Hunan provincial government, for example, continued to demand service charges from foreign businesses even after they had been officially removed by the central government in March 2016, collecting 4.77 million yuan (US$710,000) from 46 foreign companies as of the end of 2018. Local authorities in the coal-rich province of Shanxi, Hunan and the autonomous regions of Inner Mongolia and Ningxia failed to complete foreign business registration within the required three working days. Shanxi's commerce department registered 101 foreign businesses between July to December 2018, with 21 completed outside the limit, the longest being 55 working days, the audit office found. The quarterly audit is a broad review on whether local governments are implementing Beijing's rules and policies covering poverty reduction, pollution control, financial risk management, reducing business costs and improving business environment. However, it is rare for Beijing's audit office to name the local governments for mistreating foreign investors. Foreign investment is listed as one of the top six economic priorities by the Chinese government as the world's second largest economy is gradually losing its attractiveness due to rising costs as well as an increasingly intrusive state. The trade war with the United States has partly accelerated the shift of industries away from China, and Beijing is now trying to convince the world that China still welcomes and values foreign investors. Last month, China approved its new foreign investment law, which will come into effect in January, after rushing the legislation through the country's largely ceremonial legislature in an effort to fend off complaints from the US and Europe about unfair trade practices. Foreign direct investment in China rose 3 per cent to US$21.7 billion in the first two months of 2019, according to China's Ministry of Commerce. At the same time, the number of newly registered foreign-funded enterprises dropped 26.4 per cent to 6,509 in January and February from the same period last year. But according to the latest "Doing Business" report by the World Bank in late 2018, China moved up 32 places to 46th. Among other findings by the audit office, it found that many local governments were late on key national projects due to poor management and a lack of funding. The 13.65 billion yuan (US$2 billion) Hunan motorway, designed to connect two cities in the province, had made no progress for over a year due to a longer than expected approval process. In addition, 32 infrastructure and community improvement projects were overdue by more than a year, involving a total investment of 13.94 billion yuan. ^ top ^

Deaths of young firefighters in China sparks calls for fire service reform (People's Daily)
2019-04-03
"Farewell, heroes." At 1:00 am on April 2, 2019, thousands of locals gathered in front of the gate of a funeral parlor and along the road, waiting for vehicles carrying the remains of 30 firefighters who died in wildfire in Muli, southwest China's Sichuan province, to pay tribute to their noble sacrifice. The youngest firefighter never turned 19. Amid the nationwide mourning, the issue of "firefighters die young" resurfaced on Chinese social media. On Sina Weibo, the hashtag "salute to firefighters" has received 640 million views as of Wednesday, with many netizens pressing for a change to stop similar tragedies from happening in the future. "Firefighters die young" is a recurring public concern as China is still in the process of transforming its current firefighter training and management system. Most young firefighters who died doing their jobs have been enlisted in the army for less than five years. Lacking experience and knowledge is the main reason firefighters die young, the Ministry of Emergency Management said in 2015, China Daily reported. For the past five decades, China has been recruiting firefighters from the Armed Police Force who decommissioned from military service to form the firefighter brigade system, but this practice has elicited an array of questions after a number of inexperienced firefighters died fighting fires. But things are beginning to improve. By de-militarizing the team of firefighters and establishing a more professionalized training and management system, firefighters will become not only be a service, but an honorable profession. Beijing started recruiting firefighters from the society in August 2017. In addition, China's first fire rescue college was opened in December 2018, unfolding the beginning of the professionalization in firefighting service. ^ top ^

Xi Jinping speech from six years ago resurfaces to 'send message on trade war, leadership' (SCMP)
2019-04-02
A speech delivered by Xi Jinping six years ago on how China needs to "cooperate and compete with the more advanced capitalist" countries was published by the Communist Party's journal on Monday, in what could be a hint of the Chinese president's stance on the trade war with the US. While Qiushi, or Seeking Truth, the ruling party's flagship bi-monthly journal on political theory, often carries speeches given by Xi, they are generally drawn from more recent addresses. Observers said the decision to run the transcript of the speech was likely to be a direction from the top aimed at sending a message. Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said it "must be a decision that's come directly from him or his office". "He clearly wants to convey an important message within the party by republishing the full version of an old speech," Wu said. Xi gave the speech on January 5, 2013 – just months after he became general secretary of the party and chairman of the Central Military Commission. Its theme was how China could develop its "socialism with Chinese characteristics". But the speech carried by Qiushi on Monday included a paragraph not in the previously published version that has caught the attention of observers. In it, Xi called for his comrades to "have a sound understanding of the self-correcting ability of capitalist societies, to not underestimate the reality of the long-term advantage of Western developed countries on economic, scientific and military fronts, and to conscientiously prepare for all aspects of long-term cooperation and struggle between the two social systems". He also said in the speech that "for a long period to come, socialism in the primary stage must also cooperate and compete with capitalist countries armed with greater developed productivity". And he said China must "carefully study and learn from the civilisation achievements of capitalism, and be prepared to face the fact that people will compare the merits of Western developed countries to the shortcomings of China's socialist development and blame us". Xie Maosong, an adjunct professor at the Central Party School in Beijing, noted the "blunt and candid" tone of the speech. "[Publishing this again now] could be seen as a response to the United States' criticism of China's system, and communicating the Chinese leadership's thoughts on the trade war," Xie said. Xi also spoke about how China should handle tough times, saying the country should "concentrate on doing our own thing, constantly strengthening our nation and improving the lives of our people – building socialism to be better than capitalism". China and the US are locked in a long-running trade battle that has cost billions of dollars in tariffs on both sides, and negotiations for a deal continue in Washington this week. Speaking on the sidelines of an investment conference in Hong Kong last week, Minxin Pei, a professor of government at Claremont McKenna College in California, said Xi was trying to shore up support at home. "The No 1 priority for President Xi after the trade deal is to restore confidence in his leadership. He needs to assure people that his plan and his agenda are still on course," Pei said. "The key to it is to restore confidence among entrepreneurs, because it matters so much to the Chinese economy. Economic growth is the only legitimacy of the ruling of the Communist Party." The other message in the publication of Xi's speech could be about reinforcing links with the theories of his predecessors, particularly late paramount leader Deng Xiaoping's "socialism with Chinese characteristics". In the speech, Xi quoted Deng's assessment in 1992 that "consolidating and developing China's socialism will take dozens of generations" – the same quote repeated by Deng's son, Deng Pufang, in a speech in September. Deng Pufang – the eldest son of the former Chinese leader who steered the country towards decades of economic growth – also urged Beijing to "keep a sober mind" and "know its place", delivering a counterpoint to its increasingly ambitious foreign policy and military assertiveness. The remarks were reminiscent of his father's signature comment on China's foreign policy – "hide your edge and nurture your strength", meaning to behave humbly and never take the lead in world affairs. In the speech republished on Monday, Xi called Deng a "great Marxist leader with breadth of vision and width of mind", saying Deng had saved the party by not completely negating Mao Zedong because it would negate the importance of the greater part of Chinese revolutionary history. According to Deng, Mao was "70 per cent right and 30 per cent wrong". Xie from the Central Party School said that "by reaffirming Deng, Xi was also trying to demonstrate his own breadth of vision and width of mind". ^ top ^

 

Shanghai

Chinese capital controls mean Shanghai is not a global financial hub, US bankers say (SCMP)
2019-04-04
Shanghai has fallen short of its ambitious goal of becoming a fully-fledged international financial centre by 2020, according to a survey by the American Chamber of Commerce in Shanghai. The plan was announced in 2009, when Shanghai officials pledged it would be on an equal footing to New York, London and Hong Kong by next year's deadline. As the deadline grows nearer, however, the city remains largely a commercial and shipping capital. Restrictions on the movement of capital in and out of China have scuppered ambitions to become an international money market, with US bankers saying that it is still another five to 10 years from regaining its pre-Communist era status as the financial capital of the East. More than half of 26 financial industry executives recently surveyed by AmCham Shanghai said that the city has struggled to find a balance between serving as a loyal base for the Communist Party and offering a safe haven for global capitalists. According to the survey released on Thursday, China's strict control of capital flows, heavy government intervention in financial markets, and the limited use of the yuan in international markets have restricted Shanghai's role as a financial hub. While the city has made progress in certain areas over the last decade, including a link-up with the Hong Kong stock exchange, there are considerable barriers that need to be lifted, according to the financial professionals who responded to the survey. In one example, executives said that Chinese regulators often notify foreign banks of informal policy changes, also known as "window guidance", much later than domestic banks, which raised the question of fair treatment. "While Chinese banks represent a far greater systemic risk than their foreign peers and therefore may require more regulatory interactive, their ties with regulators mean that Chinese banks enjoy the unfair competitive benefits of receiving policy change alerts ahead of others," the report said. According to statistics from the Shanghai branch of People's Bank of China, foreign banks accounted for only 10 per cent of banking assets and total financial employees in the city at the end of 2017. The presence of foreign money in China's stock market in Shanghai is also tiny – less than 0.5 per cent of publicly traded stocks in Shanghai were owned by foreign investors as of the end of March, according to data from the Shanghai Stock Exchange. The government's intervention in the stock market is seen as a key barrier to reaching the 2020 goal. More than half the respondents gave "unfavourable" views of their access to the Shanghai stock market, their trust in the market, and stock settlement times. Some survey respondents said the city lacks high-quality financial professionals and suggested authorities need to invest in ethics training for financial workers. High on the curriculum should be avoiding conflicts of interests and insider trading, respondents said. AmCham members also doubted whether Shanghai's financial sector is in control of its own destiny, since the real decision-making power lies to the north, in Beijing. "The reasons for this [missing of the goal] are complex, not least the fact that Shanghai has little autonomy to determine key policies. The city's financial regulators can work to burnish its reputation at the margins, but the power to remove the largest structural hurdles to Shanghai's success lies solely in Beijing," the report said. Martin Lockstrom, chairman of QuantCore Capital Management, echoed that concern. "Most people should know what constitutes a global financial hub. The way I see it, it is more about political control. Ever since Xi Jinping came to power, we see consolidation of power, tightening grips on the internet, media … I have a feeling it [the 2020 goal] was premature. When it came out in 2009, it was before the Xi Jinping era; in hindsight, it was premature," Lockstrom said. Brock Silvers, managing director at Kaiyuan Capital, a Shanghai-based private equity firm, agreed that Shanghai is not yet a global financial centre. "Shanghai would immediately become a top-tier global financial centre were it to end capital controls and freely float the yuan, but Beijing has given no indication that such measures are even being contemplated," Silvers said. ^ top ^

 

Tibet

Big Brother really is watching: China's grand plan for smart surveillance in Tibet (HKFP)
2019-03-31
The Chinese government is rapidly increasing the role of big data in maintaining Beijing's technological grip over the Tibetan people, according to Claude Arpi, a long-time Tibet-Watcher and Tibetologist. But over the last few years, the nets in the sky and traps on the ground have grown wider, tighter and more digitized, with the use of big data and artificial intelligence tools. From monitoring the activities and opinions of the Tibetan people through the stationing of over 21,000 government officials across Tibet to the data collections of voices and genetic information, the Chinese Communist Party has deployed an increasingly sophisticated surveillance strategy. These modern surveillance systems are also employed to monitor foreign tourists with the creation of a big data centre on tourism in Lhasa, created jointly by the Tibet University and Beijing-based Wiseweb Technology Company. Besides keeping track of tourists, this big data centre has other important functions. Wang Sheng, deputy manager of Wiseweb Technology Company was quoted in the Global Times, as saying, "The real time monitoring could give a warning to the government on negative social events." Hence, it has a dual applicability for mass monitoring across Tibet. Not only that, the recent introduction of real-time monitoring technology in 200 taxis in Lhasa further increases the control and surveillance imposed on foreign tourists in Tibet. Cui Shaoyou, the vice manager of an unnamed company told the Global Times, "the taxis are being test run, and increasing the number of such taxis and expanding the scheme to other areas depends on the outcome of the ongoing one-month test run." From his words, it indicates the plan for an expansion of this service across the Tibetan Plateau. The recent installation of three 5G base stations in Tibet and the construction of data banks in Lhasa will facilitate the increasing use of real-time monitoring technology for better live-streaming, efficiency and data storage. The recent data leak of 2.6 million people under surveillance in Xinjiang illustrates the potential use of a database in the hands of an authoritarian regime. Hence, from the above developments in Tibet, it appears that soon a series of new advanced security-related apparatuses and artificial intelligence tools, including gait analysis, will be introduced across Tibet, in the name of safety of the Tibetan people and tourists. In short, Tibetans are the lab rats for a grand plan of total smart surveillance across China. ^ top ^

 

Xinjiang

US lawmakers urge sanctions on China's Xinjiang chief over abuse and detention of Uighur minority (HKFP)
2019-04-04
A broad group of US lawmakers on Wednesday called for sanctions against China's top official in the Xinjiang region over alleged abuses — including mass detentions — against the Uighur minority. The letter signed by 24 senators — almost one-quarter of the body — and 19 House members across party lines also called on the United States to step up disclosure requirements about Chinese companies held to be complicit in rights violations. The lawmakers asked President Donald Trump's administration to target Chen Quanguo, the Communist Party secretary in the northwestern Xinjiang region, who earlier held a similar position in Tibet and has become reputed for his handling of minorities. UN investigators say that some one million people have been rounded up in Xinjiang in a massive network of cramped detention camps, with China pressing Uighurs to renounce Islam through actions such as forcing them to eat pork, which is forbidden for Muslims. "We are disappointed with the administration's failure so far to impose any sanctions related to the ongoing systemic and egregious human rights abuses in Xinjiang," said the letter addressed to Secretary of State Mike Pompeo and other top officials. The lawmakers acknowledged the "strong rhetoric" from Vice President Mike Pence and others but added, "words alone are not enough." The letter was signed by Senators Marco Rubio, a Florida Republican close to Trump on foreign policy, and Bob Menendez, the top Democrat on the Senate Foreign Relations Committee. Others who signed it include Senator Elizabeth Warren, a Democratic presidential candidate, Senator Mitt Romney, a former Republican presidential contender, and Representatives James McGovern and Chris Smith, who head a congressional commission on human rights. The lawmakers asked the Trump administration to invoke the Magnitsky Act on Chen and other top officials in Xinjiang. The act — named after a Russian accountant who died in detention — calls for the seizure of assets and a ban on US visits by any foreign official found to be behind human rights abuses. China denies the accounts of mass detention, saying it is running educational training centers as part of a fight against Islamic extremism in Xinjiang. ^ top ^

Beijing calls for 'objective' assessment of Xinjiang policy as EU takes China to task over human rights (SCMP)
2019-04-03
The European Union has voiced concern about "worrying developments" in China's western Xinjiang region and called for the release of dissidents and human rights campaigners from custody. The bloc of 28 nations made the call during the two-day EU-China Human Rights Dialogue held in Brussels, Belgium, this week which was attended by senior Chinese and European officials. Chinese Premier Li Keqiang is expected to attend a China-EU leaders' meeting in Brussels on April 9. The EU highlighted the erosion of civil and political rights in China, marked by the arrests and detention of campaigners and lawyers. Brussels demanded the release of Gui Minhai, a Swedish citizen and a Hong Kong bookseller who has been detained in China since January last year; Uygurs who live in Xinjiang including the jailed scholar Ilham Tohti; human rights lawyers such as Wang Quanzhang and Wang Yu, and campaigners such as Wu Gan. The EU said its officials also raised the cases of Canadian detainees Michael Kovrig and Michael Spavor, as well as Robert Schellenberg, who has been sentenced to death for his alleged involvement in drug trafficking. The EU is reassessing its China strategy. Last month, the European Commission, the union's executive body, labelled China a "systemic rival" at a time when the bloc was struggling to present a united front on issues including human rights. Commission President Jean-Claude Juncker said on Monday that China's growing economic influence and its sensitivity to criticism on its human rights record have made it difficult for Europe to agree on a unified foreign policy position. "One country is unable to condemn China's human rights policy because Chinese investors are travelling in one of its ports," Juncker said. "Another country cannot support the decision of the Geneva Human Rights Commission because Chinese investors are travelling somewhere on its territory. It cannot work like this." During the meeting, EU officials also raised the "worrying development" of Xinjiang, where a system of political re-education camps is in operation. Beijing said its de-radicalisation and anti-terrorist measures in the western region were essential to peace and stability. "While actions to counter terrorism are essential, such measures must respect the principle of proportionality, fundamental freedoms and international laws," the EU said. Brussels also called for China to "allow meaningful, unsupervised and unrestricted access to Xinjiang for independent observers, including for the UN High Commissioner for Human Rights and UN Special Procedures." China's Foreign Ministry on Wednesday said the Chinese delegation called for the EU to "fairly and objectively" assess Beijing's human rights situations, and for talks and cooperation on human rights that were based on equality and mutual respect. ^ top ^

 

Hongkong

The trust deficit: Why Hongkongers simply don't believe gov't reassurances over its China extradition law (HKFP)
2019-04-04
It seemed like old times: last Sunday's afternoon protest march was organised – at short notice – by the Civil Human Rights Front in its role as coordinator for every major protest since 2003. Only this time, the rally was for an obscure cause that had lain dormant since 1997. Yet like many such low-key events, turnout was greater than expected: between 5,000 and 12,000, depending on the estimates of police and organisers, respectively. The crowd also looked to be a fair mix of pro-democracy partisans. Whether intended or not, mostly old-timers headed out first. They seemed to be people who had been patiently turning out on Sunday afternoons for years. The younger generation was mostly following along behind. All the main pro-democracy political parties were represented, as well as some new student groups, and lawyers, plus the defiant blue and white flags of Hong Kong independence, confident enough this time not to hide behind furled banners. Provocation for the protest was a Hong Kong government plan, announced in February, to amend the city's extradition laws. On the face of it, updating these ordinances should be a matter-of-fact exercise. Hong Kong already has extradition agreements with 20 countries to allow the surrender of suspect criminal offenders. The proposed changes would facilitate such transfers to all other jurisdictions, on a case-by-case basis. In fact, the prospect has all the ingredients, in scaled-down form, of the fearsome national political security legislation mandated by Article 23 of Hong Kong's post-colonial Basic Law constitution. Hong Kong has managed to keep this legislation at bay since 2003. Among those ingredients is the "progressive" role being played by Hong Kong's otherwise carefully conservative business community, which never joins pro-democracy protest rallies. Last Sunday was no exception. This episode actually began in Taiwan with the death early last year of a young woman, Poon Hiu-wing. She was pregnant and had been holidaying in Taiwan with her boyfriend, Chan Tong-kai. In due course, investigators there concluded that the assailant was most likely Chan. Both were Hong Kongers and he had returned home to Hong Kong. But for reasons deriving from the political sensitivities of its unusual one-country, two-systems status, Hong Kong has no extradition arrangements with Taiwan, or with Macau, or with the Chinese mainland for that matter. The omission was deliberate, and it has been thought best to let sleeping dogs lie throughout all the years since Hong Kong returned to Chinese rule in 1997. The lack of such arrangements has produced some awkward situations, but the need for correctives has only been discussed and not acted on – until now. Not for nothing has Beijing's highest-ranking representative here just enjoined Hong Kong's top civil servants to emulate their leader in her dedication to duty and courageous pursuit of tasks no matter how difficult. Not wishing to let so convenient an opportunity pass, Chief Executive Carrie Lam's administration hastened not just to tailor a solution for delivery of the suspect to Taiwan. They have drafted instead of a plan capable of extraditing everyone everywhere. The government's plan was announced on February 12, apparently without any advance warning to any of the concerned stakeholders. Secretary for Security John Lee Ka-chiu explained that the relevant ordinances must be amended in order to allow the surrender of suspects to any jurisdiction, including Taiwan, Macau, and the Chinese Mainland, with which Hong Kong does not yet have separate extradition agreements. Officials are aiming to win Legislative Council approval before the coming summer recess, which begins in July. Asked a few days later why not simply exclude the mainland from the proposed amendments since that was the source of greatest concern, Secretary Lee seemed not to understand the question. He replied only that since there are bound to be other such cases in the future, it's best to craft a solution that can cover them all at one go. Some care had nevertheless been taken in drafting the proposal, which aimed, initially, to permit the surrender of fugitive suspects accused of committing 46 crimes. Extradition requests are to be overseen by Hong Kong's courts, with the Chief Executive signing off on each transfer decision. Safeguards will be written into the legislation as amended to protect suspects from prosecution or persecution based on race, religion, nationality, or political opinion. The alleged offence must also be regarded as a crime in Hong Kong and not punishable by the death penalty, which has been abolished here. Extradition will also not be allowed for offences set to be introduced once Hong Kong fulfils its Basic Law mandate to pass Article 23 national security legislation. This will prohibit treason, secession, sedition, subversion of state power, colluding with foreign forces, and so on. Also not included is the favourite catchall mainland crime, or any equivalent, of "picking quarrels and provoking disorder," used to silence activists who attract the attention of law enforcement authorities across the border. Officials chose not to allow a formal public consultation exercise. But they had anticipated immediate pushback from pro-democracy activists and were ready with all the conventional reassurances. The amended law would not be used to surrender Hong Kong activists to the tender mercies of mainland law enforcement, and all the safeguards written into the law were well advertised. But it didn't take long to produce multiple scenarios, based on recent real-life experiences, whereby just such political dangers might lie in store. The 2015 to 16 Causeway Bay Books case was foremost in critical minds. It swept up five associates of the bookstore, which had broken mainland law by publishing in Hong Kong, but selling across the border, books that had been banned for publication and sale there. No such restrictions exist, yet, in Hong Kong. Two of the five men were subjected to what might be called "extra-legal" extradition. The other three were apprehended while travelling in China itself. In Hong Kong, Lee Po simply vanished, last seen going to his warehouse office in late December 2015. He later reappeared with little to say except that he had been escorted across the border by irregular means, held incommunicado, interrogated, and given to understand that the Hong Kong book business must be rolled up. Gui Min-hai was in Thailand and similarly disappeared without a trace, also in late 2015, only to resurface months later in China. Gui remains in custody ostensibly due to violating the terms of his sentence from a previous unrelated conviction. One of the five, Lam Wing-kee, eluded his handlers during a return trip to Hong Kong that was arranged after he agreed to retrieve the information they wanted from the office computers. He returned instead with a story to tell and reported it to the whole world. Lam was among the organisers of Sunday's rally and stood with them helping to carry the lead banner at the head of the march. He was also quoted as saying that if the legislation were passed, he would leave Hong Kong rather than wait for his turn to be extradited. In another case, Chinese billionaire Xiao Jianhua was reportedly last seen, in early 2017, being spirited away from Hong Kong's luxury Four Seasons Hotel. He had apparently hoped to make it his hideout and remain there unnoticed by mainland law enforcement personnel despite their determination to investigate cases of alleged corruption wherever they might be found. Similarly, Gu Zhuoheng recently recounted his experience about being saved on May 26, 2015, by Hong Kong security staff in the lobby of the airport Regal Hotel where he was being accosted by gun-toting Mainland agents. They were apparently bent on another extra-legal extradition. Gu is wanted by mainland authorities on corruption charges, but he is also a fierce critic of mainland political leaders. Additionally, he is Chairman of Sing Pao Media that publishes the pro-Beijing Chinese-language Sing Pao Daily here. Beijing authorities would naturally like to tidy up this situation, so their agents need not travel about incognito in search of their prey. During the National People's Congress meetings in Beijing last month, a former security official, Chen Zhimin, stressed the importance of amending Hong Kong's laws. In an interview with Radio Television Hong Kong (RTHK), he asserted that there were 300 fugitives who had committed serious offences and were now hiding out in Hong Kong. We know who they are and where they are, he said. We have their names. All of this, Hong Kong officials had anticipated and prepared for, although Security Secretary Lee said, when asked, that he had no knowledge of any such Wanted List. But what officials here reportedly had not anticipated was the pushback they received from Hong Kong's usually compliant business sector. Its representatives said such a law would undermine business confidence here because of the ubiquitous cross-border links and interests, which are in turn the life's blood of Hong Kong in its role as Asia's "World City." These interests, it is said, typically entail much uncertainty because even with the most upright intentions, it's easy to fall foul of mainland rules, regulations, unfamiliar tax laws, and the like. As a result, the Hong Kong government's gratuitous plan could undermine public confidence and do real damage to Hong Kong's much-valued international reputation as a reliable centre for banking, financial services, and trade. Legislative Council representatives from the Liberal Party and the Business and Professionals Alliance spoke out about such fears. They suggested that all "white-collar crimes" be exempt from the government's extradition plan. The American Chamber of Commerce issued a strong statement warning of the danger to Hong Kong's international reputation as a safe place to do business. Taiwan issued a statement saying it might declare a travel alert to warn its citizens if the new rules placed them at risk. Taiwan would also not be a party to any extradition procedures that compromised its sovereignty by assuming Taiwan is part of China. They know a potential political trap when they see one. In 2003, it was James Tien Pei-chun, now honorary chairman of the Liberal Party, who administered the coup de grace when the government tried to pass Article 23 national security legislation. This he did by withdrawing his party's support for the bill after the big July First protest march, thereby depriving the government of the Legislative Council majority needed to pass the bill. His contribution this time was an RTHK interview warning the government that its latest initiative would cause Hong Kong to lose out on foreign investment and could harm Hong Kong's ability to play its much-hyped lead role in Beijing's ambitious new Greater Bay Area development project. Tien's words made a useful addition to the fliers handed out at Sunday's march. At first, dismissing the nay-sayers, Hong Kong officials went on to try and placate the business community critics by removing nine white-collar crimes from the list of 46. Announced on March 26, the nine that would not be recognized as valid reasons for extradition include: offences against bankruptcy and companies laws; offences relating to securities and futures trading; offences against laws concerning the protection of intellectual property, and of the environment; offences relating to fiscal and tax matters, and the unlawful use of computers. The offences for which suspects can be surrendered must carry prison sentences of more than three years instead of only one year as originally proposed. This eased some fears but not those of the one fugitive who probably has more immediate cause for alarm than anyone else at the moment. And true to the flamboyant style of Hong Kong's tycoons, he has just chosen a dramatic means of lodging his protest. Not for him the tedium of press conferences, petitions, and Sunday afternoon marches. He is Joseph Lau Luen-hung, who was tried in absentia by a Macau court in 2014, found guilty of bribery and money laundering, and given a five-year prison sentence. He, too, says he will leave Hong Kong if the proposed amendments become law. Having been formally tabled on April 3 in the Legislative Council, these are now known as the Fugitive Offenders and Mutual Legal Assistance in Criminal Matters (Amendment) Bill 2019. Lau had claimed ill-health as his reason for not returning to Macau to face justice in 2014. Now he wants a Hong Kong court to declare that in the likely event the proposed amendments are passed into law, he would be in imminent danger of being sent to Macau, which would deny him his rights as a Hong Kong citizen. Lau's judicial review application argues that his right to a fair trial was violated by the Macau proceedings. His application also puts the retrospect factor to novel new use by arguing that Hong Kong's fugitive rendition amendments should not have a retrospective effect because it would be unfair to allow extradition for crimes committed before the new rules became law. Since the changes in Hong Kong's laws are intended in the first instance to allow one suspect's extradition to Taiwan for a crime allegedly committed over one year ago, Lau's application assumes that Hong Kong's updated ordinances will have retrospective effect as a matter of course. But this demonstrates flagrant disregard for common law principles that are the very bedrock of Hong Kong's legal system. Hence Lau's right to a fair disposition of his case is now in jeopardy and he is applying to the court for relief from his predicament. Good luck with the retrospect argument. It has proved a trap for many ex-Legislative Councillors who have tried in vain to escape from its clutches in recent years. Officials are now confronting the cost of their past routines: promising one thing but delivering another. The list is long and well documented in the public's memory of the past two decades: promises about autonomy, universal suffrage elections, free speech, press freedom, and so on. There is one good reason why Chief Executive Carrie Lam's Administration decided not to hold a formal public consultation before suddenly announcing the fugitive rendition proposals in February. She must remember the experience of 2013 to 2014 when, as Chief Secretary, she was responsible for the consultation exercise on electoral reform. The public responded for months, in good faith, only to have even the most moderate proposals overruled by Beijing with its August 31, 2014 ultimatum on electoral reform. Now her officials are out and about advertising all the safeguards they have written into the amendments and pleading again for the public's trust. But the sceptics are not so forgetful or forgiving and with good reason. They see yet another blurring of the lines drawn initially, before 1997, in yet another promise to keep Hong Kong safe under the One Country, Two Systems formula. The most basic reason for the hue and cry this time, of course, is China's legal system itself: the well-documented dangers it contains, and the fundamental differences between the mainland and Hong Kong legal regimes. The mainland system lacks an independent judiciary, that is, independent of party rule. Arbitrary detention is common, as in the booksellers' case. Adequate legal representation is lacking and lawyers themselves can be in jeopardy. But above all is the absence of open and fair trials, with the adversarial presentation of evidence pro and con the defendant. Trials are essentially a presentation of the state's case against the accused, based on evidence that has been collected by all means possible, with sentencing to follow. But Security Secretary Lee appears oblivious to these dangers, which must have been why he seemed not to understand that question at the February 15 press conference, like Chief Executive Carrie Lam with her much-repeated refrain that talking about independence has nothing to do with free speech. It must be a strain to keep repeating such lines, but only Lee's habitually furrowed brow betrays cognitive dissonance, meaning he at least realizes that something important is missing between what he's saying and what his listeners perceive to be true. On one occasion he tried to assure sceptics that the mainland system itself contains the necessary safeguards. Rendition requests are to be issued at the highest ministerial level, he has said, and they will have passed through many departments, so there will definitely be checks and balances. He also said there would be transparency because the local Chinese and overseas media would report on such trials. Hong Kong's judges are among the world's finest and will be the gate-keepers overseeing fugitive transfers, with the Chief Executive herself signing the orders. But Lee didn't explain the implications of Legislative Council oversight having been removed from the process. He also didn't acknowledge that the judges will not actually be reviewing the details of each case but only the paperwork and rendition procedures to determine that all is in proper order. Hong Kong courts will have no way of investigating the substance of the charges themselves. Nor does he acknowledge the possibility of extraditing fugitives for one offence but trying them on other charges once the individuals are back in custody in the mainland. Hong Kong would have no way of preventing the addition of other offences to the charge sheets. And as for the Chief Executive, she has acquired the unfortunate reputation of being someone who does whatever she is told, so her authorisation is seen essentially as a pro forma exercise. In the Legislative Council, the ranks of pro-democracy lawmakers have been depleted by the oath-taking saga disqualifications and three more are at risk of losing their seats due to trials currently underway. Their fate should be known before Carrie Lam's summer recess deadline. Those who remain are trying to use whatever delaying tactics remain after the rules change a year ago. But for now, business sector representatives seem satisfied to know that the crimes their constituents are most likely to commit will not be extraditable offences. So, unless the representatives of this sector have a sudden change of heart, as in 2003, the government's proposed amendments seem likely to pass. ^ top ^

Hongkongers protest Beijing's jailing of activists who made Tiananmen Massacre alcohol label (HKFP)
2019-04-04
A group of protesters marched to Beijing's office in Hong Kong on Thursday to show solidarity with four men who were on trial for commemorating the 1989 Tiananmen Square crackdown. In 2016, the Chinese government arrested Fu Hailu, Zhang Jinyong, Luo Fuyu and Chen Bing in connection with bottles of baijiu bearing the label "Ba Jiu Liu Si," meaning eight nine six four – the date of the June 4 massacre. They were charged with "inciting subversion of state power" in July that year, but their trial only took place at the Chengdu Intermediate People's Court this week. Zhang and Luo were each handed a three-year prison term, suspended for four years. Fu received a three-year prison term, which was suspended for five years. On Thursday, the last of the defendants Chen was given a three-and-a-half-year jail sentence with no suspension. RFA reported that Chinese authorities amended the charges against Zhang and Fu to "picking quarrels and stirring up trouble," a common charge deployed against activists and dissidents. In Hong Kong, about two dozen supporters of the jailed activists held a protest march ending at the China Liaison Office in Sai Wan. The event was led by the Hong Kong Alliance in Support of Patriotic Democratic Movements of China (HK Alliance), a group that organises commemorative events for the Tiananmen massacre. The Tiananmen massacre ended months of student-led demonstrations in China. It is estimated that hundreds, perhaps thousands, of people died when the People's Liberation Army was deployed to crack down on protesters in Beijing. "It is no crime to commemorate June 4th victims! It is no crime to demand accountability for the bloody crackdown!" the protesters chanted. In a statement, the protesters said that the suspended sentences were not truly a gesture of mercy, because the men have already been detained for nearly three years before trial. They also noted that the men were cut off from outside contact during detention. "The so-called open trial was just a show. Not only were the defendants' friends unable to attend the trial, even foreign diplomatic representatives… were unable to get in," said HK Alliance Vice-president Chow Hang-tung. Protesters then stuck memos and posters onto the entrance of the China Liaison Office. Lee Cheuk-yan also appeared in a man-sized costume of the liquor bottle. Other attendees at the march included pro-democracy figures such as Albert Ho, "Long Hair" Leung Kwok-hung, Bull Tsang, Avery Ng and Raphael Wong. On Wednesday, the Legislative Council voted down a non-binding motion urging for "the June 4 incident be not forgotten and the 1989 pro-democracy movement be vindicated." The June 4 motion has been raised every year by pro-democracy legislators since 1997, but has never been passed except in its first year. ^ top ^

 

Macau

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Taiwan

5.1-magnitude quake hits Taiwan, affecting 2,000 passengers (Xinhua)
2019-04-04
One day after a 5.7-magnitude earthquake jolted Taitung County in Taiwan, another 5.1-magnitude earthquake rocked the same area Thursday morning, delaying trips of about 2,000 passengers who traveled home by train to sweep tombs for the coming Tomb Sweeping Day holiday. Taiwan Railways had to slow down seven trains that run between Fuli Station in Hualien County and Shanli Station in Taitung County after the 5.1-magnitude earthquake shook mountainous areas at 9:56 a.m. The earthquake struck at a depth of 10 km, after a 5.7-magnitude earthquake rocked the same area at a depth of 12 km at 9:52 a.m. Wednesday. No anomalies were found in safety checks on railroad beds, tracks or electric devices along the rail lines, according to Taiwan Railways, which said normal train operations were restored at 11:30 a.m. According to the China Earthquake Networks Center (CENC), the epicenter of Thursday's quake was monitored at 22.99 degrees north latitude and 120.85 degrees east longitude, and Wednesday's quake was centered at 22.95 degrees north latitude and 120.87 degrees east longitude. The epicenters of the two quakes were both located in the Central Mountain Range, local seismic authorities said, adding that the earthquake on Thursday was an aftershock from the temblor on Wednesday. Seismic authorities said it's unnecessary for local residents to panic too much in the coming days, as relatively few earthquakes had been recorded in the Central Mountain Range areas, where only 26 earthquakes measuring 5.0 or higher on the Richter scale were recorded since 1973. ^ top ^

US national security adviser John Bolton rebukes Beijing for incursions into Taiwanese airspace (SCMP)
2019-04-02
US national security adviser John Bolton has rebuked China for sending warplanes into Taiwanese airspace in remarks analysts viewed as America backing the self-ruled island against Beijing. In a Twitter message, Bolton wrote: "Chinese military provocation won't win any hearts or minds in Taiwan. "But they will strengthen the resolve of people everywhere who value democracy. The Taiwan Relations Act and our commitment are clear." Beijing considers Taiwan a wayward province subject to eventual union by force if necessary. On Sunday, two PLA warplanes flew over the Taiwan Strait and crossed a "median line" that tacitly divides the mainland from the island. Analysts in Taiwan saw it as a warning to the US to stop sending warships on what Washington said were "freedom of navigation" operations in international waters. According to Taiwan's defence ministry, the J-11s crossed the line into the island's southwestern airspace at about 11am. The Taiwanese military scrambled warplanes to warn off the Chinese jets, which flew within about 185km of Taiwan proper and remained in Taiwanese airspace for about 10 minutes. On Monday, Taiwanese President Tsai Ing-wen, of the independence-leaning Democratic Progressive Party, ordered that any provocation by Chinese warplanes be dealt with by force. "The military is firmly determined to defend the country's democracy, sovereignty and security," she said, vowing that "we will never give an inch of territory". Her order came as both US state and defence departments issued statements describing the mainland Chinese act as a provocation and a change in the status quo. They asked that Beijing stop its coercion against Taiwan and resume cross-strait dialogue. "Beijing's efforts to unilaterally alter the status quo are harmful and do not contribute to regional stability," the state department said. "Consistent with the Taiwan Relations Act, the US considers any effort to determine the future of Taiwan by other than peaceful means, including by boycotts or embargoes, of grave concern to the US." Both Bolton and the state department did not mention the one-China policy, nor the "three communiques" about US-China relations signed after Washington switched diplomatic recognition from Taipei to Beijing in 1979. They repeated US commitments spelled out by the act, which include the supply of defensive weaponry to Taiwan. Beijing has suspended official exchanges with Taipei since Tsai became president in 2016 and her government refused to accept the one-China principle. Ties between the sides soured as US President Donald Trump decided to strengthen support for Taiwan in line with US interest regarding China. ^ top ^

Taiwan will forcefully expel PLA warplanes next time: Tsai Ing-wen (SCMP)
2019-04-01
Taiwan's President Tsai Ing-wen has ordered a "forceful expulsion" of PLA warplanes next time they cross the "median line" separating the self-ruled island from the Chinese mainland. Tsai's response to China's decision on Sunday, to send two fighter jets across the tacitly understood line dividing the Taiwan Strait, confirmed concerns that the action had opened a new flashpoint in the increasingly complex relations between the US, Taiwan and China. In a Facebook post on Monday, which included her signature, Tsai is pictured giving an order via telephone with captioned remarks reading "I have already ordered the military to stage a forceful expulsion in the first place against any provocation by incursion of the median line [into the Taiwanese side]." Taiwan scrambled interceptors on Sunday morning and broadcast warnings after two PLA J-11 fighter jets crossed the median line and entered the island's southwestern airspace. Despite those warnings, the Chinese fighter jets continued their incursion for about 10 minutes – unusual compared to earlier intrusions, in which Chinese aircraft would quickly return to the China side of the median, Taiwan's military officials said, adding that the planes were about 185 kilometres (114 miles) from Taiwan proper. Taiwan's Foreign Minister Joseph Wu told reporters at the legislature on Monday that the line crossing was an intentional act, calling it provocative and dangerous. He said Taiwan had informed "regional partners" about the incident. Analysts in Taiwan said, while it remained to be seen how Beijing would react to the order to forcefully disperse any future incursion by PLA jets, Tsai could risk setting off a cross-strait conflict which might drag Washington into the situation. "There is such a risk, but I believe [Taiwan's] military has its standard operating procedure in dealing with Chinese warplanes straying into Taiwan's airspace," said Chieh Chung, senior research fellow of the national security division at the National Policy Foundation in Taipei. Chieh said Tsai should know her response risked sparking a new cross-strait row, but that she had to act indignantly and boldly while seeking re-election next year. "After all, mainland China was the one to blame for breaking the tacit agreement by making the incursion," he said. Tsai, who Beijing has refused to talk with since her refusal to accept the one-China principle in 2016, has sought to bolster Taiwan's air power with the purchase of latest-model F-16V fighters from the US. The US representative office in Taipei, the American Institute in Taiwan (AIT), on Monday said the incursion was an effort by Beijing to alter the status quo, and it would be harmful to regional stability. "Rather, they undermine the framework that has enabled peace, stability, and development for decades," AIT spokesperson Amanda Mansour said, while reiterating Washington's position that Beijing should stop its coercive efforts and resume dialogue with Taipei. The Defence Ministry in Beijing did not respond to request for comments on Monday. Analysts in Taiwan said the incursion was intentional and a response to US naval "freedom of navigation" exercises in the strait. It also demonstrated that Beijing had discounted Taiwan's reaction over the intrusion and that China felt any provocative action by the US in the Taiwan Strait and US deployments in Indo-Pacific region must be stopped, they said. "Judging from the fact that the PLA warplanes have also intruded into the air defence identification zones of both Japan and South Korea [in the past year], Sunday's incursion was more [about] countering the US' deployments in the Indo-Pacific region," said Doong Sy-chi, director of international relations at Taiwan Thinktank, on Monday. "It also means that the communist leadership no longer care about the reaction of Taiwan as they used to do out of the concerns that it [incursions] would increase Taiwanese resentment against Beijing and boost the pro-independence camp's chances in [Taiwan's] 2020 presidential election," he said. Wu Chien-chung, professor of general education at Taipei University of Marine Technology, noted that since January, the US had sent warships to cross the Taiwan Strait each month in a gesture that all foreign vessels can travel what is an international waterway. "We can keep watch of whether the US will continue to send warships to cross the Taiwan Strait on April 24 as it has done on January 24, February 24 and March 24, and to see the reaction of the mainland if it happens again on April 24," Wu said. Fan Shih-ping, political science professor of National Normal University in Taipei, said he was concerned whether the decision to proceed with the flight was taken by PLA theatre command or was an explicit order from Chinese President Xi Jinping. "Intrusions like this could become bigger and more frequent as long as the US continues its Indo-Pacific security policy, and eventually there could be intrusions into our Penghu's [islands] airspace, which is closer to Taiwan than Sunday's intrusion location," Fan said. "What I am worried about is that the US would follow up with bigger and stronger action," he said, adding that Washington could be forced to offer greater support for Tsai and her pro-independence Democratic Progressive Party. Chieh said Beijing's intention was to warn both the US and Taiwan, whose political and military cooperation have become stronger every day. Hong Kong-based military commentator Song Zhongping, said such incursions would "no doubt" become more frequent in future in response to the regular US warship patrols in the strait and closer US-Taiwan military cooperation. "Beijing's move was a 'reciprocal escalation' of the crisis, since the situation has escalated," he said. Song pointed out that the median line was a legacy dating back to 1955 and the latest move showed the PLA was determined and capable of breaking this "outdated" rule. "The PLA's goal is reunification and for them this line has to be broken anyway, sooner or later," Song said. "But for now both sides are likely to also show restraint and avoid any direct skirmish." About 160 kilometres (100 miles) wide at its narrowest, the Taiwan Strait opens at its southern end into the South China Sea, where Taiwan and the Chinese mainland share overlapping territorial claims. Since the two sides split amid civil war in 1949, China has claimed Taiwan as its own territory, to be absorbed by force if necessary. ^ top ^

 

Economy

Who is the new boss of China's US$941 billion sovereign wealth fund? (SCMP)
2019-04-02
China has found a new boss for the country's US$941 billion sovereign wealth fund, after a two-year search for the very man to head the company. Peng Chun, the 57-year-old chairman for Bank of Communications, will leave the bank to become the new chairman of China Investment Corporation (CIC), according to people familiar with the fund's internal announcement. Caixin Media had reported the news earlier. Ju Weimin, currently deputy general manager for CIC, will replace Tu Guangshao as the general manager. Tu, 60, will retire from the post, according to the announcement. Peng will be the third chairman since CIC was founded in 2007, after Lou Jiwei and Ding Xuedong, who headed the fund for six years and four years, respectively. Lou left CIC in 2013 to become China's finance minister, while Ding left in 2017 for the State Council, serving as the deputy secretary general. Peng's appointment has political significance in the current environment, as the Chinese government faces fiscal and financial challenges amid its plans to revive the economy, ease the debt burden of local governments, tackle the looming pension shortfall, and build infrastructure projects domestic and overseas. Peng is a career bureaucrat and more of a political appointee, while Ju, a fluent English speaker, is an experienced finance professional with an international perspective, according to multiple sources. The duo will help CIC continue to achieve its core target of preserving China's forex reverses, they said. Peng spent a third of his career in Xinjiang province first as an official at the People's Bank of China's branch, then at the provincial cadre school and later at the provincial government. He joined BoCom in 1994 as the deputy branch manager in Ürümqi in Xinjiang, and worked his way up to become the bank's deputy president in 2004. Peng briefly left BoCom to work for CIC from 2010 to 2013, serving as the deputy general manager of CIC and the general manager of Central Huijin Investment, the domestic arm of CIC that mainly invests in large state-owned financial institutions. After three years at CIC, Peng returned to BoCom as its president. Last February, Peng was appointed as chairman and Party Committee secretary at BoCom, replacing Niu Ximing, who stepped down from the post earlier than expected due to "health reasons", according to the bank's statement. "Peng has good political quality and rich hands-on experience," the Organisation Department of the Central Committee said in an appraisal of Peng at that time, according to a Xinhua report. "He knows the company business and is a good manager. He puts a high value on following the rules in the banking industry. Being considerate, he has clear thinking, calm character and practical style. He keeps a low personal profile and actively maintains the stability of the management team." The Organisation Department of the Central Committee is a key Communist Party organ controlling nearly 90 million party personnel assignments throughout the national system. Peng's appointment ended a two-year search by CIC for a new leader. Set up by China during the global financial crisis to diversify its foreign exchange reserves, the fund has repeatedly come under criticism in the past for its overseas losses, botched investment decisions, and involvement with the US private equity group Blackstone. CIC bought a 9.9 per cent stake in Blackstone ahead of its IPO in 2007, but later saw the value of the investment sink, which prompted criticism in China. Last year, CIC exited Blackstone amid growing trade tensions between Beijing and Washington. After Ding left in 2017, CIC has had a difficult time finding a new leader, a coveted position in the financial industry, as the high bar limited the choice of candidates, sources said. The head of the fund comes under intense scrutiny as they have to deliver on returns while taking the blame for poor investment decisions. The fund, subject to financial supervision by the Ministry of Finance, also faces competition from the State Administration of Foreign Exchange, which manages foreign exchange reserves. SAFE comes under the central bank, which also provides funding to CIC. The fund has lost some of its significance because of its rivalry with SAFE. ^ top ^

 

DPRK
South Korean ship detained for illegally trading with North, in violation of UN sanctions (SCMP)
2019-04-03
A South Korean ship has been detained for six months on suspicion of violating UN sanctions against the nuclear-armed North, Seoul's foreign ministry said on Wednesday. Pyongyang is sanctioned over its weapons programme under multiple UN Security Council resolutions, which include curbs on shipments of oil and fuel to the isolated regime. But the North has been seeking to get around the measures, with a recent UN report saying that Pyongyang was securing deliveries of fuel through ship-to-ship transfers in international waters. Seoul's foreign ministry said a South Korean ship and three others had been detained in the country, suspected of undermining the economic measures against the North. "This is the first time a South Korean vessel has been detained for allegedly violating UN sanctions," a ministry official said. The ship – held in the southern port of Busan since last October – is suspected of carrying out an illicit ship-to-ship transfer of oil to a North Korean tanker, according to the Yonhap News Agency. If it is found to have made the transfer, the South Korean vessel would likely be blacklisted by the UN, Yonhap reported. The foreign ministry official did not explain the delay in the authorities making the detention public. South Korean President Moon Jae-in has sought to engage the North to bring it to the negotiating table, dangling economic carrots before it in the form of inter-Korean projects – many of which would violate the current sanctions rules if implemented. Questions were also raised over whether it had undermined the measures by providing supplies to set up an inter-Korean liaison office north of the border. Last year three South Korean firms were caught importing millions of dollars worth of coal and iron from the North in 2017. Immediate sanctions relief was a key demand of the cash-strapped North when leader Kim Jong-un met with US President Donald Trump in Hanoi in February for a second summit that ultimately broke down. The US has since imposed sanctions on two Chinese shipping companies for doing business with North Korea, urging the maritime industry to do more to end Pyongyang's "illicit shipping practices". A UN report issued last month highlighted the North's sanctions-evading tactics at sea and recommended member countries keep a closer watch over vessels in their own waters. ^ top ^

Kim Jong-nam murder trial: Vietnamese suspect Doan Thi Huong accepts reduced charge, will be freed in May (SCMP)
2019-04-01
A Vietnamese woman accused of assassinating the half-brother of North Korea 's leader was sentenced to three years and four months in jail after accepting a lesser charge on Monday and will likely be freed in May, her lawyer said. "In the first week of May, she will go home," lawyer Hisyam Teh Poh Teik told reporters in the Shah Alam High Court, near Kuala Lumpur. Doan Thi Huong, originally charged with murder, had pleaded guilty to a lesser charge of causing injury, and the judge sentenced her to three years and four months in jail from her arrest in February, 2017. She has been on trial since 2017 for the murder of Kim Jong-nam at Kuala Lumpur airport with a toxic nerve agent in a cold war-style hit. It came after authorities last month rejected her initial request for her murder charge to be dropped entirely – a shock decision after the attorney general agreed to withdraw the charge against her Indonesian co-defendant, Siti Aisyah, and she walked free. Salim Bashir, one of her lawyers, said that the 30-year-old had been offered a charge of causing hurt by dangerous weapons instead of murder. Soon afterwards, the new charge was read in court to Huong and she pleaded guilty. Huong told reporters: "I'm happy, this is a fair sentence. This is a fair judgement, I thank the Malaysian government and the Vietnamese government." Huong's stepmother said on Monday she was delighted her stepdaughter had escaped the death sentence, urging her to "hang on" until her expected release. "We wanted her to be freed immediately," Nguyen Thi Vy said in her rice farming village in northern Vietnam. "The family is happy enough with her escaping death penalty," she added after lighting incense to thank ancestors for sparing her stepdaughter from death. Huong underwent a psychiatric assessment last month after her initial bid to be released was rejected. Both the accused women had always denied murder, saying they were tricked by North Korean spies into carrying out the assassination that shocked the world using a highly toxic nerve agent, and believed it was a prank for a reality TV show. Their lawyers presented them as scapegoats and said the real masterminds were four North Koreans accused alongside them, but who fled Malaysia shortly after the assassination. If released, it will mean that no one is facing murder charges for the killing in February, 2017 of Kim Jong-un's estranged relative, who was once considered heir apparent to the North Korean leadership until he fell out of favour. South Korea accuses the North of ordering the hit, a claim vehemently denied by Pyongyang. There were dramatic scenes in court when Huong's initial bid for immediate release was rejected – she sobbed in the dock and had to be helped out of court by two police officers. Vietnam reacted angrily to the decision, which came just days after the Indonesian defendant was released, and started stepping up pressure on Malaysia to free Huong. A murder conviction carries a mandatory penalty of death by hanging in Malaysia. The government vowed last year to scrap capital punishment but recently indicated that it might backtrack. ^ top ^

 

Mongolia

Foreign Minister holds talks with his Chinese counterpart (Montsame)
2019-04-04
Minister of Foreign Affairs D.Tsogtbaatar, who is on an official visit to the People's Republic of China, held official negotiations with the State Council and Foreign Minister of China Wang Yi on April 2. The parties expressed satisfaction with the successful development of the comprehensive strategic partnership between Mongolia and China, noting that the bilateral relations is the foreign policy priority for the both countries. This year marks the 70th anniversary of the establishment of diplomatic relations between the two countries and 25th anniversary of the establishment of Treaty on Friendly Relations and Cooperation. In this regard, the sides agreed to organize a number of events in political, trade, cultural, humanity and local cooperation fields. The two sides agreed to maintain the frequency of bilateral high level visits, particularly preparing well for the high level visits on the occasion of the 70th anniversary and enrich the comprehensive strategic partnership with new concept. Moreover, the parties exchanged views on increasing bilateral trade turnover, improving the achievement of 2018, trade system improvement, export diversification, increasing the export of value-added and non-mining products and reducing trade barriers. The parties also discussed the progress of joint projects in detail and the Chinese side pledged to accelerate the ongoing projects on reconstruction of Wastewater Treatment Plant in Ulaanbaatar, redevelopment of ger areas as well as projects to be implemented in agriculture and other sectors. It was also noted that China will support organizing joint exhibitions and trade fairs to promote products of Mongolian SMEs to the Chinese customers and participation of Mongolian entities in the international expos organized in China. The sides agreed to continue cooperation in upgrading border checkpoints, establishment of new railway checkpoint, schedule extension of particular checkpoints and reducing difficulties and challenges that the checkpoints face. In addition to sharing views on cooperation in culture, education and humanities, the sides expressed their readiness to advance trilateral cooperation within the Mongolia-China-Russia Economic Corridor Establishment Program. During the talks, the sides exchanged views on regional and international issues of mutual interests. ^ top ^

Mongolia Subscribes to the IMF's Special Data Dissemination Standard (Montsame)
2019-04-04
On April 2, Mongolia subscribed to the International Monetary Fund's Special Data Dissemination Standard (SDDS), the first case where implementation of the enhanced General Data Dissemination System (e-GDDS) has facilitated advancement to the SDDS. Under the e-GDDS, Mongolia launched a National Summary Data Page—a one-stop online publication portal—laying the foundation for moving to the next tier of IMF data standards, the SDDS. In this process, Mongolia has benefitted from a project in the Improvement of Data Dissemination in the Asia and Pacific Region, financed by the Japanese government, which aims to assist countries to improve data dissemination under IMF's data standards initiatives. Louis Marc Ducharme, Chief Statistician and Data Officer of the IMF, welcomed this major milestone in the country's statistical development. "I congratulate the authorities for subscription to the SDDS. It underscores Mongolia's strong commitment to transparency, as well as the adoption of internationally accepted best practices in statistics." The SDDS, established by the IMF in March 1996, is intended to guide members in the provision of economic and financial data to the public. Subscription to the SDDS enhances the availability of timely statistics according to an advance release calendar, thereby contributing to sound macroeconomic policies and the proper functioning of financial markets. Although voluntary, a subscribing member commits to observe the standard and to provide information (metadata) about its data dissemination practices. This information is made publicly available on the IMF's Dissemination Standards Bulletin Board (DSBB). The DSBB now provides comprehensive documentation in English on the statistical practices of Mongolia for SDDS data categories, hyperlinked to country data included in the National Summary Data Page, maintained by Mongolia's National Statistical Office.  ^ top ^

 

Jennia JIN
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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