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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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  17-21.6.2019, No. 773  
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DPRK

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Switzerland

Controversy over UBS pig comment likely to ferment (Global Times)
2019-06-17
Zurich-based UBS is likely to encounter more setbacks in the Chinese market as its measures involving its chief economist Paul Donovan are not "thorough," analysts told the Global Times on Monday. State-owned China Railway Construction Corp (CRCC), one of the world's largest infrastructure companies, confirmed with the Global Times on Monday that it has decided to stop working with UBS in issuing US dollar-denominated bonds. This happened after Donovan used what some term racist language in a recent report and some linked the two incidents. CRCC did not provide further explanation while UBS said it would have no comment on the CRCC decision. "If UBS does not fire Donovan to compensate for his derogatory and racist remarks on China, things could get worse," an industry insider, who asked to remain anonymous, told the Global Times on Monday. Other Chinese enterprises are likely to follow suit after CRCC's move, which will become a tricky issue for the multinational firm, he added. Haitong International Securities, the Hong Kong unit of Chinese brokerage Haitong Securities Co, said it has suspended all collaboration with UBS, Reuters reported on Friday. A Chinese netizen named Yurendashuman said foreign firms need to pay some costs to learn how to respect a country's people and its culture. Donovan, UBS' chief economist, said in a report entitled "Very Normal Inflation" on Thursday that, "Does it matter? It matters if you are a Chinese pig. It matters if you like eating pork in China." The report sparked outrage among Chinese netizens and some economists on Weibo, who said the report used distasteful and racist language to analyze China's inflation. UBS has asked Donovan to take a leave of absence, the company confirmed to the Global Times on Friday. Dong Shaopeng, a veteran analyst who advises the China Securities Regulatory Commission, suggested that companies should stay calm and rational especially amid the ongoing China-US trade war. "China should continue to hold a welcoming and open stance toward foreign capital." UBS has been one of the major beneficiaries of China's reform and opening-up in recent decades. In December 2018, it became the first foreign bank to gain majority control of a securities joint venture in China. ^ top ^

 

Foreign Policy

Rubio's anti-Huawei proposal 'ridiculous' (Global Times)
2019-06-21
The Chinese Foreign Ministry Thursday strongly criticized legislation proposed by US Senator Marco Rubio to prevent Huawei from seeking damages in US patent courts, and Chinese experts said Rubio's proposal was ridiculous and totally against the spirit of the law always touted by US politicians, including Rubio himself. China strongly opposes US abuse of its state power to suppress Chinese companies, and urges the US to stop its wrongdoings and treat those companies fairly, Chinese Foreign Ministry spokesperson Lu Kang said at a routine press conference on Thursday. The US has been praising itself as a country under the rule of law for very long time, and now it unexpectedly has a situation where a US senator is proposing an act to contain foreign companies from defending their legal rights in the US, so it is not surprising that this has shocked people inside and outside the US, Lu said. "We know there are some US politicians who are trying to crack down on foreign companies by any means, but we didn't expect that these people would dare to play and manipulate laws to serve their purposes. To be honest, this will harm the US image as well as US companies," Lu further said. China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises, said Lu. Rubio submitted to the US Congress on Monday an amendment to the "2020 National Defense Authorization Act (NDAA) for Fiscal Year 2020," which calls for forbidding companies in certain US government watch lists, including Huawei, to seek relief under US patent law, such as filing legal proceedings for patent infringement, Reuters reported on Tuesday. The US always sees itself as a nation subject to the rule of law. However, it is unbelievable to see such a ridiculous move of trying to pass legislation to obstruct other countries' enterprises from protecting their legitimate rights and interests, Lü Xiang, a research fellow on China-US relations at the Chinese Academy of Social Sciences in Beijing, told the Global Times on Thursday. "Congress is unlikely to pass Rubio's legislation as it is ridiculous and totally against the foundation and spirit of the law in the US," said Lü. Many US web users also expressed their opposition on Twitter and Facebook. "You want China to respect US patents but the US would deny China's patent? Senator Rubio, this is really dumb," said one named "Basel Barakat." "This amendment undermines the US patent system…we are shooting ourselves in the foot to fight a single private company," said another netizen named "Pierre B." Rubio is known for his strong anti-China stance. In February, several Republican US senators, including Rubio, asked House Speaker Nancy Pelosi to invite the regional leader of Taiwan Tsai Ing-wen to speak before a joint session of the US Congress, which was seen as a move to anger Beijing. Rubio is a member of the Tea Party, which is one of the most right-wing and conservative movements in the US, Tao Wenzhao, a research fellow at the Institute of American Studies of Chinese Academy of Social Sciences, told the Global Times. Rubio's interest groups influence his behavior. These groups "kidnapped" US interests and damaged the healthy development of US-China relations for their own benefit, said Tao. "China should pay attention to the rising protectionism and growing anti-China voice in the US caused by radical acts by people like Rubio," Da Wei, director of the China Institute of Contemporary International Relations' Institute of American Studies in Beijing, told the Global Times on Thursday. ^ top ^

Chinese President Xi Jinping promises to play 'positive' role in helping North Korea denuclearize (SCMP)
2019-06-21
Chinese President Xi Jinping promised on Thursday to help North Korea satisfy its "security and development needs" and play a "positive and constructive role" in denuclearising the Korean peninsula. In his reply, and without naming the United States or Donald Trump directly, North Korean leader Kim Jong-un promised that North Korea would remain patient even though unnamed "parties" had "failed to respond positively" to his overtures. The visit by Xi, which came just a week ahead of his highly anticipated meeting with Trump on the sidelines of the G20 summit in Japan, was closely watched for clues about whether China would help advance the denuclearisation talks that have stalled since the Hanoi summit between Kim and the US president collapsed in February. Chinese state broadcaster CCTV reported that Xi had told Kim: "China is ready within its capacity to help the Democratic People's Republic of Korea address its legitimate security and development concerns, strengthen coordination with it and other relevant parties, and play a positive and constructive role in realising denuclearisation on the peninsula and achieving enduring peace and stability in the region." Kim responded by saying: "Over the past year or so, the DPRK has taken many positive measures to prevent tension and control the situation on the peninsula, but it has not received a positive response from relevant parties. This is what the DPRK does not want to see. "The DPRK is willing to remain patient. [But] at the same time, it hopes that the parties concerned will meet the DPRK halfway, explore solutions that are in line with our respective legitimate concerns, and promote the dialogue process to achieve new results in safeguarding peace and stability in the [Korean] peninsula." In Thursday's meeting at the Kumsusan State Guesthouse, both Xi and Kim highlighted the "close friendship" between their two countries, saying they were part of the "same family" and that Xi's visit would open a new chapter in their relationship. China has been North Korea's biggest guarantor of security since the Korean war in the 1950s, and the 1961 Sino-North Korean Mutual Aid and Cooperation Friendship Treaty promises Chinese military intervention if North Korea is "subjected to the armed attack by any state or states". The day before Xi's visit began, US Special Representative for North Korea Stephen Biegun offered some hope that the peace process could be restarted, telling a forum at the Atlantic Council, a US think tank, that the US wanted to resume talks with Pyongyang. China is also keen to minimise the prospects of instability in its smaller neighbour for fear that it will spill across the border into its northeastern provinces, and the North's economy remains in a parlous state following the collapse of the talks with Trump in February. Earlier on Thursday, the Chinese president was greeted by Kim and his wife Ri Sol-ju at Pyongyang Sunan International Airport. The North Korean leader was accompanied by Pak Pong-ju, a former premier and key economic aide, and Foreign Minister Ri Yong-ho. North Korean officials held a grand welcoming ceremony at the airport, where Xi and Kim together reviewed an honour guard. Nearly 10,000 North Koreans, some in traditional dress, were at the airport to greet Xi and his entourage and Kim said later that more than 250,000 people had turned out in the streets of Pyongyang to welcome the Chinese leader. Later at the Kumsusan Palace of the Sun, which serves as the mausoleum for Kim's grandfather and father, Xi became the first foreign leader to be given a welcoming ceremony at this "sacred" place. It is the first visit by a Chinese president to North Korea in 14 years and the first to be formally classified as a state visit. Previous visits by Chinese leaders to the reclusive state were classified as "friendly visits" and the change in protocol suggested that China is trying to shift the emphasis from its ideological ties to its fellow communist state to adopting a more pragmatic approach. Diplomatic observers noted that Xi's trip to Pyongyang should be seen in the context of the upcoming meeting between Xi and Trump in Osaka next week and an ongoing trade war between China and the US. "Good relations with North Korea give Beijing additional leverage in its bilateral relations with the US," said Adam Ni, a China researcher at Macquarie University in Sydney. But some observers cautioned that China's priority would be on maintaining stability – or the status quo – on the Korean peninsula, rather than an acceleration of the denuclearisation talks. "While China has an interest in keeping North Korea from making further destabilising moves, it also does not want a deal between North Korea and the US that would result in lesser Chinese influence on the Korean peninsula," Ni said. "The inability to effectively deal with North Korea undermines US credibility and influence in Asia, and this benefits China. Hence, China plays a difficult balancing game with a number of policy aims," Ni added. Xi was accompanied by his wife Peng Liyuan, China's top diplomat Yang Jiechi, and Foreign Minister Wang Yi, as well as He Lifeng, head of the National Development and Reform Commission. Xi and Kim were expected to attend a banquet on Thursday evening and then possibly a mass gymnastics performance at the Rungrado May Day stadium. The Chinese president is also expected to visit the DPRK-China Friendship Tower, near the Chinese embassy, during his stay in Pyongyang. ^ top ^

Tensions ease after power station clash in Bangladesh (Global Times)
2019-06-20
The Chinese Embassy in Bangladesh has asked the local government to take emergency measures and launch an investigation into the death of one Chinese worker and injury to six others in a conflict on Wednesday, a Chinese Foreign Ministry spokesperson said on Thursday. "The situation has calmed down. China hopes the local government can conduct a comprehensive investigation as soon as possible, and deal with the incident in accordance with law, to safeguard the safety and legitimate rights of the involved Chinese citizens, and provide a safer environment for local Chinese enterprises," Lu Kang, Chinese Foreign Ministry spokesperson, told the Global Times. Lu said the violence began after a Bangladeshi employee fell to his death at a coal-fired power station built by a Chinese company in Patuakhali, Bangladesh. One Chinese worker was killed and six others were injured, according to Reuters. But it was not confirmed by the Chinese Foreign Ministry. Bangladesh is an important country along the Belt and Road. China has invested $10 billion in infrastructure projects in Bangladesh which will help the trade and investment environment, people's livelihood and so forth.  ^ top ^

BRI transport projects to benefit global economy, says World Bank (China Daily)
2019-06-19
Transport infrastructure projects under the Belt and Road Initiative have the potential to "substantially" boost trade and reduce poverty in participating economies, as well as to generate a positive impact for the wider global economy, said a report released by the World Bank Group on Wednesday. To achieve the full potential of the BRI, the report called for joint efforts from China and other participating economies to adopt deeper policy reforms, and adhere to high quality standards of transparency, environmental, social and debt sustainability. "If fully implemented, BRI transport infrastructure can reduce travel times for economies along transport corridors by up to 12 percent, reducing trade costs," the report said, after assessing the network of proposed transportation projects in about 70 countries along land and maritime BRI corridors that connect Asia, Europe, and Africa. The full implementation of proposed projects is estimated to increase trade by between 2.8 and 9.7 percent for economies along the corridors. For low-income corridor economies, foreign direct investment could rise by as much as 7.6 percent, said the report. Non-BRI economies will also benefit from access to improved rail links and ports in the participating economies, raising trade worldwide by between 1.7 and 6.2 percent. Increased trade is expected to raise global real income by 0.7 to 2.9 percent, not including the cost of infrastructure investment, according to the report. Moreover, around 32 million people could be lifted out of moderate poverty as a result of the initiative, with another 7.6 million to be lifted from extreme poverty, mostly in corridor economies, the report said. The report-which aims to help policymakers in developing economies weigh the potential prospects of participating in BRI projects-also pointed out that the initiative entails risks common to large infrastructure projects. The study finds that among the 43 low and middle-income participating economies for which detailed data are available, 12, with already elevated debt levels, could suffer a deterioration in their medium-term outlook for debt sustainability. "This highlights the risks associated with BRI, but risks can be mitigated with appropriate policies," Michele Ruta, an economist with the World Bank who led the study, said in a written interview with China Daily. "Assuming sound public investment management, favorable financing terms, and continued growth dividends, the BRI's impact on debt sustainability could be positive over the long term," Michele Ruta, an economist with the World Bank who led the study, said in a written interview with China Daily. There is thus a need to enhance the transparency of the terms and conditions of BRI projects and improve recipient economies' ability to assess these conditions, Ruta said, adding that the improved fiscal frameworks and regulatory environments of recipient economies will also help. The report prioritized transparency as one of the three core principles that BRI participating economies should comply with to maximize benefits and mitigate risks brought by the initiative. Specifically, it called for more public information on project planning, fiscal costs and budgeting, and procurement to encourage community involvement and build public trust in investment decisions. The other two core principles are to deepen country-specific reforms and multilateral cooperation. From 2013 to 2018, direct investment by Chinese enterprises in economies involved in the BRI had exceeded $90 billion, with an average annual growth rate of 5.2 percent, according to the Ministry of Commerce. Li Qiang, regional co-managing partner of Asia at DLA Piper Global Law Firm, said Chinese investment in economies involved in the BRI is helping to fulfill the huge potential of bringing mutual benefits, citing the importance for Chinese companies to sharpen their skillset of communicating with local communities. ^ top ^

Xi Jinping and Donald Trump to broaden agenda beyond US-China trade war for meeting at G20 summit in Osaka (SCMP)
2019-06-19
When Chinese President Xi Jinping meets his US counterpart Donald Trump in Japan at the end of the month they are expected to discuss a broad range of issues, including the trade war, in an effort to stop the relationship from tilting towards sustained confrontation, analysts said. Neither side has provided an agenda for the meeting on the sidelines of the G20 leaders summit in Osaka, despite confirmation coming from both sides that it was to take place, after weeks of speculation. A summary of Tuesday's phone conversation between Xi and Trump published by Xinhua, however, implied that the leaders would cover more strategic issues, leaving the nuts and bolts of a trade deal to their negotiating teams. Meanwhile, China's foreign ministry spokesperson Lu Kang said at a regular press conference on Wednesday that the two leaders would discuss the overall direction of bilateral relations, but he did not elaborate further. Wei Jianguo, a former vice-minister at China's Ministry of Commerce, predicted that Beijing would use the meeting to make clear a few principles regarding the bilateral relationship. "It's inevitable [for China and the US] to have problems in certain fields, but both sides should resolve the problems through dialogue on an equal footing rather than opting for a trade war, a tech war, or a financial war," said Wei, now a vice-chair at the state-backed China Centre for International Economic Exchanges, a think tank. He added that China would try to convince the US that it had no intention of challenging its global hegemony, but that China's own "core interests", including its sovereignty, territorial rights and room to develop, "must be respected". A government official in Beijing, who declined to be identified, said China was pinning its hopes on the leaders' summit to ease general tensions between Beijing and Washington, even though the chances of the leaders reaching any concrete agreements in Osaka was small. "Without a leaders' summit, it would be difficult to push ahead the work [to reach agreements] at the ministerial or lower levels," the source said. The last summit between Trump and Xi in Buenos Aires in December resulted in a tariff truce and negotiations that continued until early-May. But the talks failed to achieve a deal to end the conflict, resulting in the US more than doubling tariffs on US$200 billion of Chinese imports and threatening tariffs on almost all remaining Chinese imports, valued at US$300 billion by the US government. Tuesday's telephone call, in which Xi told Trump he was willing to exchange views with Trump on "the fundamental issues" affecting China-US relations, came at a low point in recent China-US relations. The tariff increase followed the collapse of trade talks in early-May, while hostile rhetoric has spread into the political and military spheres. The US labelled China a "strategic competitor" and accused Beijing of conducting sustained espionage to impede US's national security, while China blamed the US for trying to thwart China's development by targeting Huawei and infringing on China's sovereignty over Taiwan and Hong Kong. Zhou Rong, a senior fellow from the Chongyang Institute for Financial Studies at the Renmin University of China, said the two leaders have a long list of issues to talk about this time in addition to trade, including Taiwan, the South China Sea, as well as the treatment of Chinese companies in the US. China can offer to help on some issues but "the US should not force China to swallow bitter fruit it cannot digest", Zhou said. Ni Feng, a specialist in Sino-US relations at the Chinese Academy of Social Sciences, said they would discuss the "overall direction" of their bilateral relationship, including where the two nations could engage in "competition and cooperation". He added that North Korea may be on the agenda because "China and the US share the same goal of the denuclearisation of the Korean peninsula." Xi is set to start a two-day state visit to Pyongyang on Thursday. Another source in the Chinese government, who wished to remain anonymous, said Xi was very likely to bring up the US' blacklisting of Huawei, China's leading technology firm. Washington has effectively banned American companies from providing key components to the Shenzhen-based company. Meng Wanzhou, Huawei's chief financial officer and the daughter of founder Ren Zhengfei, is currently on bail in Canada awaiting extradition to the US to face charges that both she and Huawei violated US sanctions on Iran. During Tuesday's call, Xi told Trump that China "hopes the US side can treat Chinese businesses fairly", Xinhua reported. At the same time, Trump and Xi agreed that the two countries' trade negotiators would start to talk again before the meeting in Japan, raising prospects for a second truce in the trade war, or even a deal to end the conflict. Matthew Goodman, a researcher at the Centre for Strategic and International Studies in Washington, wrote in a note that a Trump-Xi deal on trade-in Osaka "is certainly possible". The most likely outcome is similar to the one reached in Buenos Aires in December last year, when Trump and Xi "agreed to a temporary truce while trade negotiators work to hammer out a deal", Goodman wrote. "This would postpone the worst effects of the current escalation but is unlikely to solve the deepening and dangerous rift in US-China relations". The South China Morning Post previously reported that the Osaka summit meeting, which is likely to take place on Saturday June 29, could also be a sit-down dinner between Trump, Xi and their top economic and security aides, as occurred in Buenos Aires. Trump tweeted Tuesday night that he would have an "extended" meeting with Xi in Japan. ^ top ^

China suspends WTO case to ease trade friction (Global Times)
2019-06-18
China has suspended a dispute consultation case related to its market economy status at the World Trade Organization (WTO), which shows China is striving to ease friction with other countries due to the tense international trading situation and the challenges the WTO is facing from certain countries' unilateralism and protectionism, experts said. The Dispute Settlement Body of the WTO received a request from China to suspend the panel's work in one of China's dispute cases with the EU and the request was granted on Friday, according to a statement from the WTO. Sang Baichuan, director of the Institute of International Business at the University of International Business and Economics, told the Global Times on Tuesday that China has been trying to make efforts to ease the friction with other countries amid a sluggish world economy and the tense trade situation. China has been actively upholding the multilateral system of free trade, while the US keeps reheating protectionism by threatening other counties with unreasonably high tariffs, Sang noted. Only a sound and fair mechanism can settle disputes on a reasonable basis, Sang said, noting that the WTO is now nearly malfunctioning and needs to be reformed. In December 2016, China requested a dispute consultation with the EU concerning certain provisions of the EU regulation pertaining to the determination of normal value for "non-market economy" countries in anti-dumping proceedings involving products from China, according to the WTO. China has said it should be recognized as a market economy after 15 years of WTO membership in accordance with the terms of its accession. China has said using market economy status in anti-dumping proceedings is untenable, according to a report by the Xinhua News Agency in 2018, which cited Wang Shouwen, China's vice minister of commerce. ^ top ^

 

Domestic Policy

Ex-president of Interpol pleads guilty to bribery (China Daily)
2019-06-21
Meng Hongwei, former vice-minister of public security and the ex-president of Interpol, pleaded guilty to accepting a bribe of 14.46 million yuan ($2.1 million) during his trial at the Tianjin No 1 Intermediate People's Court on Thursday. Meng, also former head of China Coast Guard, was charged with taking advantage of the perks and power associated with his posts to get others jobs and promotions in return for bribes paid either in cash or other assets. During the trial, the court fully listened to the defense statements of Meng and his lawyer to protect his legitimate rights, court officials said. According to the court, Meng showed repentance during the hearing, and the verdict will be announced at a later date. Meng, 65, was elected president of Interpol, based in Lyon, France, in 2016. He was the first Chinese to take the post. ^ top ^

Be on alert for external 'hostile forces', Chinese security chief warns cadres (SCMP)
2019-06-21
China's officials and cadres should be vigilant of the increased risk of infiltration by external "hostile forces", a top Chinese internal security official wrote this week amid Hong Kong's extradition bill debacle. "As our country nears the centre of the world stage, imported risks... are on the rise and have become the biggest uncertainty in domestic security," wrote Chen Yixin, secretary general of the Central Political and Legal Affairs Commission, the Communist Party's top body overseeing law enforcement and the judiciary. "Risks of all sorts are more interconnected, key groups echo each other from afar and jointly plan an impact on society." The article was published on Wednesday on the front page of Study Times, a newspaper published three times a week and affiliated with the Central Party School, the party's top academy. With the internet transmitting and magnifying threats, Chen said the country needed to strengthen law enforcement's online propaganda apparatus and regulations to guard against "ideological risks". "[We must] resolutely strike down political rumours and harmful information on the internet," he wrote. "[We should] innovate and improve our work in guiding public opinion, and strictly prevent 'black swan' or 'grey rhino' public opinion risks." While the 4,000-word article did not refer directly to the protests in Hong Kong over the extradition bill in the last two weeks, it underlined Beijing's long-held position to stop the city's civil society having an impact on the mainland, analysts said. Beijing-based political scientist Wu Qiang said the central government had "always been wary of civil movements in Hong Kong spreading to the mainland" and it was a coincidence that the article appeared so soon after the demonstrations. "I believe the piece was timed for the sensitive month of June [in general]," Wu said. June was a particularly sensitive time this year, with June 4 marking the 30th anniversary of the bloody Tiananmen crackdown on pro-democracy protests in Beijing, a taboo subject on the mainland. As Chinese abroad, including those in Hong Kong, remembered the protesters killed in the violence three decades ago, the central government ensured dead silence in public discussion on the subject on the mainland. Censorship of the protests in Hong Kong in the past two weeks against the extradition bill has been similarly tight. Most discussion about the protests was either blocked by China's "Great Firewall" or deleted on domestic social media, with some accounts scrubbed entirely for mentioning them. Chinese media have also remained largely silent on the demonstrations except for some state-run outlets denouncing the protests as incited by "foreign forces". Beihang University law professor Tian Feilong said that while the Study Times article was largely set against the rising confrontation with the United States, the Hong Kong protests would only confirm Beijing's fears. "The extradition law has underlined a much deeper problem in 'one country, two systems'," Tian said. "There's a profound distrust of the values and the political systems from both sides." Chen started his article by referring to a speech by President Xi Jinping in January laying out a long list of risks and uncertainties, ranging from financial threats to social stability issues that he said could jeopardise the rule of the party. Chen went on to warn against a few types of "hostile forces" – such as separatism, terrorism and "evil cults" – and described how to tackle them. "Enemies of all sorts are converging: hostile forces collude with separatist forces, those from inside collude with those from outside, and the old guard collude with the new generation," he wrote. Chen called for a prolonged battle against the threat of a "colour revolution", adding that it should be nipped at the bud. Chen is widely seen as a rising star in Chinese politics, having worked with Xi in Zhejiang province in the early and mid-2000s. In 2015, he was promoted to deputy secretary general of the Leading Small Group for the Comprehensive Deepening of Reform, a party organ founded and chaired by Xi since 2013. In 2016, Chen was sent to govern Wuhan in central China to broaden his experience, before being appointed last year to oversee China's law enforcement. ^ top ^

China to improve people's livelihood with intensified efforts (Xinhua)
2019-06-20
China will spruce up old residential communities in cities at a faster pace, complete the upgrading of rural power grids ahead of schedule, and make greater progress in ensuring the access to safe drinking water in rural areas, as part of the efforts to meet people's aspirations and ensure and improve their livelihood. The decisions were made at the State Council's executive meeting chaired by Premier Li Keqiang on Wednesday. The Chinese government places high importance on the renovation of old urban residential areas. Premier Li Keqiang pointed out in this year's Government Work Report that old residential areas in cities, large in both number and area, need to be upgraded with greater efforts, including updating roads and water, power, gas and other facilities, supporting the installation of elevators and the development of barrier-free environment, and improving amenities like markets, convenience stores, pedestrian streets and parking lots. "The government must put market players at the center of its services to provide them with an enabling environment. Faced with slower investment growth, we need to get our focus right in keeping investment expansion steady. The focus should be major projects that can meet people's expectations, spur domestic demand and boost consumption, and run little risk of repetitive construction," Li said, "The demand for renovating old residential areas is huge. If work is done well in this field, it could be a significant driver of growth." It was pointed out at the meeting that renovation scale and standards need to be spelled out as quickly as possible. Pilot programs will be launched this year to gain experience for nationwide implementation. It is important to clearly define the responsibilities of local governments, harness the primary role of residential communities and respect residents' desire in this process. Priority will be given to upgrading roads and water, electricity, gas, optical fiber facilities. Elevators will be installed and parking lots will be built in communities where conditions permit. New mechanisms for financing and investment will be used. Starting from this year, government-subsidized urban housing projects will receive funding support from the central government. Financial institutions and local governments will be encouraged to explore sustainable ways to increase financial support for the renovation of old residential communities. Market-based approaches will be employed to attract the participation by private actors. Long-term mechanisms will be established for follow-up community management. "We need to carry out pilot programs and draw on best practices at home and abroad. Financial and fiscal support will be provided when necessary," Li said. It was pointed out at the meeting that the new round of rural power grid upgrading, which started in 2016, has improved production and living conditions and stimulated consumption in rural areas. In the coming months, local governments and power grid companies need to redouble efforts to ensure that all the upgrading tasks specified in the 13th Five-Year Plan will be completed one year ahead of schedule. The time for enterprises to get electricity will be further shortened to improve the business environment. This year, relevant investment under the central budget will be used entirely for power grid upgrading in poor areas and the proportion of central funding will be raised. Rural power supply monitoring and evaluation systems will be set up and power connection for pumping wells will be included in daily services provided by power grid companies, so as to deliver better power services in rural areas. "China has seen fast progress in power supply since reform and opening up. Yet the time needed for getting electricity and the accessibility still fall short of expectations, due to both institutional issues and inefficiency in the power system," Li said, "Power supply is critical to industrialization and rural modernization." It was also decided at the meeting to step up the implementation of rural water supply projects and fully resolve, by 2020, drinking water issues affecting 60 million rural population such as water undersupply and higher-than-recommended level of fluoride. Sound mechanisms for water pricing and fee collection will be set up. Private capital will be attracted, through public-private partnership and other forms, for the construction and operation of water supply facilities. Central and local governments will provide fiscal support for safe drinking water projects in poor areas in the central and western regions. "Public goods and final demand are key areas in boosting investment. In delivering safe drinking water in rural areas, the government must set appropriate standards, work within its capacity, and leverage the role of the market." Li said. ^ top ^

Senior legislator stresses law enforcement to improve higher education (Xinhua)
2019-06-19
Wang Chen, vice chairman of the Standing Committee of the National People's Congress (NPC), on Wednesday stressed all-around enforcement of the Higher Education Law. The efforts aim to create a sound legal environment for building world-class universities, developing world-class disciplines, enhancing national core competitiveness, and improving the development level of China's higher education, according to Wang at a plenary meeting of the NPC Standing Committee's Higher Education Law enforcement inspection teams. Wang called for sound observation of the Higher Education Law, with greater efforts to solve difficulties and problems facing China's higher education in terms of systems and mechanisms, scientific research and social services and to bring out the full potential of higher education. The NPC Standing Committee announced the launch of the inspection on Wednesday. It will send inspection teams to four provincial-level regions between June and August. Legislative bodies in ten provincial-level regions are also asked to run parallel inspections. The Higher Education Law was promulgated in 1998 and revised in 2015. School management, talent cultivation, the building of teaching staff, exam and enrollment reforms, are among the aspects to be inspected. ^ top ^

Beijing is harvesting organs from Falun Gong members who died 'hideous deaths', expert China Tribunal panel finds (SCMP)
2019-06-18
China is murdering members of the Falun Gong spiritual group and harvesting their organs for transplant, a panel of lawyers and experts said in London on Monday as they invited further investigations into a potential genocide. Members said they had heard clear evidence that forced organ harvesting had taken place over at least 20 years in a final judgment from the China Tribunal, an independent panel set up by a campaign group to examine the issue. Beijing has repeatedly denied accusations by human rights researchers and scholars that it forcibly removes organs from prisoners of conscience and said that it stopped using organs from executed prisoners in 2015. But the panel said it was "satisfied" that the practice was still taking place, with imprisoned Falun Gong members "probably the principal source" of organs for forced harvesting. Falun Gong is a spiritual group based around meditation that China banned 20 years ago after 10,000 members appeared at the central leadership compound in Beijing in silent protest. Thousands of members have since been jailed. It was less clear if the members of the Uygur Muslim minority had been victims, the tribunal found, thought it said they were vulnerable to "being used as a bank of organs". "The conclusion shows that very many people have died indescribably hideous deaths for no reason," the tribunal's chairman, Geoffrey Nice, said in the judgment. Chinese government regulations say that human organ donation must be voluntary and without payment, a spokesman for the Chinese Embassy in London said. "We hope that the British people will not be misled by rumours," the spokesman said in an emailed statement sent before the tribunal's final judgment was released. The China Tribunal was set up by the International Coalition to End Transplant Abuse in China, a human rights group, charged with examining whether crimes had been committed as a result of China's transplant practices. In an interim judgment released in December, the seven-member panel of lawyers, human rights advocates and doctors found it "beyond doubt" that forced organ harvesting from prisoners had taken place "on a substantial scale by state-supported or approved organisations and individuals". The panel said its findings were "indicative" of genocide but had not been clear enough to make a positive ruling, particularly since some Falun Gong prisoners had been released and profit was also a likely motive. It noted that it was open to governments and international groups to investigate the issue further. Crimes against humanity and torture have been committed against both the Falun Gong and the Uygurs, the panel also found. Campaigners and Falun Gong members welcomed the ruling. "Organ trafficking is often overlooked in our sector but this heinous crime needs more attention and affects us all," said a spokesman for the Human Trafficking Foundation. Jennifer Zeng, a Falun Gong practitioner who told the tribunal she had been given blood tests and medical checks while held in detention camp, said she hoped the tribunal's findings would prompt action. "I hope more countries will pass laws to forbid their own citizens from going to China to do organ transplants," she said. "And I do hope the international world will figure out a way to stop the killing in China right now." ^ top ^

Security tightened for transfer of personal info (China Daily)
2019-06-14
Internet service providers in China will be put under tighter scrutiny when they handle overseas transfers of personal information, according to a draft regulation of the Cyberspace Administration of China. The introduction of the regulation, tentatively called the Assessment Regulation on the Security of Personal Information's Overseas Uses, is intended to better safeguard internet users' rights, national security, public interests and cyberspace sovereignty, the administration said in a statement on Thursday, while calling for opinions and suggestions to improve the draft. Based on the Network Security Law, the draft requires internet service operators to conduct security screening on personal information gathered in their operations within Chinese borders. Any transfer of information that is likely to affect national security, public interests or personal information security is banned by the document. The draft regulation stipulates that internet service providers must submit the result of the screening to provincial-level cyberspace departments. Operators will also be ordered to provide their contracts with overseas recipients of personal information. Provincial-level cyberspace authorities will scrutinize the material submitted by operators and check whether their overseas businesses are law-abiding, whether their contracts are capable of protecting personal information and whether the personal information they handle is legitimate. They will also check whether they have poor records concerning personal information operations or have had major cybersecurity incidents. Internet service providers handling personal information will need to set up a database of their overseas business records, and keep such records for at least five years, according to the draft regulation. The records will include the identity, contacts and addresses of overseas recipients, the types, quantities and the level of sensitivity of the information to be transferred, and other content selectively required by cyberspace authorities, the draft says. Cyberspace departments will have the power to request operators suspend or stop the transfer of personal information to overseas parties if there is a massive leak or abuse of the information, or if the information is considered at risk. Hong Yanqing, a researcher on cyberspace operations at Peking University, said that leaking, illegal transfer or misuse of personal information are all highly prone to personal and asset security breaches and therefore must be handled in a secure and appropriate manner. Li Jianling, a senior researcher on cybersecurity at the Ministry of Public Security, said information is not only a commercial resource but also a national strategic resource. He said Western nations have paid great attention to the protection of personal information. ^ top ^

 

Beijing

Beijing mulls regulation on sorting of trash in residences (Global Times)
2019-06-19
Beijing is mulling a regulation on garbage sorting, which requires not only companies and institutions but also residents to conduct waste collection, an official said on Tuesday. The capital city issued a regulation in 2012 on managing garbage, which detailed the responsibilities of and penalties on companies and institutions, it did not restrict individuals, Sun Xinjun, director of Beijing Municipal Commission of Urban Management, said in an interview, Beijing Daily reported on Wednesday. An amendment to the regulation has now been included in the 2018-20 legislation plan, which will clarify the responsibilities of individuals in garbage sorting as well, Sun said. The legislation will make "soft" restrictions "hard," Sun said. People in Beijing generate nearly 26,000 tons of household waste a day, or 1.1 kilograms per person. The garbage should be sorted into four categories: kitchen waste, recyclable waste, hazardous waste and other waste. More than 100 areas covering 30 percent of the city have become garbage sorting exemplary zones. Chinese cities at or above the prefecture level will start garbage sorting in 2019, according to an official circular. By the end of the year, all of the said cities must have developed a plan to implement garbage sorting. ^ top ^

 

Tibet

Tibet embraces new historic opportunities in Belt and Road Initiative (People's Daily)
2019-06-20
The Belt and Road Initiative (BRI) has opened new horizons for China and the rest of the world and it has also generated new opportunities for Tibet's opening-up and development, said a senior official at a forum recently held in Lhasa, capital of Tibet Autonomous Region in southwest China. The forum, hosted by the State Council Information Office and the people's government of Tibet Autonomous Region, gathered nearly 160 scholars and officials from 37 countries and regions. Jiang Jianguo, deputy head of the Publicity Department of the Communist Party of China Central Committee, made the remarks at the opening ceremony of the forum. Attendees discussed topics such as the role of Tibet in the Belt and Road cooperation, the opening-up and development of Tibet and the inheritance and development of Tibetan culture. In China's cooperation with South Asia, Tibet has unique geographical advantages to join the building of the Belt and Road. The region is also an important land passage for the country's opening-up toward South Asia. Relying on its geographical position, resources and policy advantages, Tibet will promote more solid progress in high-quality BRI development and the region's sustainable development in the new era, said Qizhala, chairman of the Tibet Autonomous Region. ^ top ^

Tibet to integrate anti-separatism drive with gang crime crackdown (Global Times)
2019-06-18
China has intensified its crackdown on gang crimes in Southwest China's Tibet Autonomous Region as the country enters a key year in its strictest national campaign, while analysts said such crimes are usually related to separatist forces in the region. Zhu Weiqun, leader of an inspection team sent to Tibet, said at a briefing that the campaign against gang crimes in Tibet had made progress, according to a statement released on the Lhasa government website on Tuesday. Zhu call for the people to be mobilized further and to increase their legal awareness; improve the procedure of cases related to gangs and establish an effective mechanism to deal with unregulated activities in different sectors The inspection team to Tibet was among the ten sent by central authorities from late May to early June to provincial-level regions, including Beijing, Shaanxi and Heilongjiang, marking the inspection coverage of all provincial-level regions in China, the Xinhua News Agency reported. China launched a three-year campaign against gang crimes in January 2018. According to the plan, the target of this year's campaign is to pull out the crimes' roots. As for Tibet, overseas secessionists may be the root of some gangs, Xiong Kunxin, a professor at Tibet University in Lhasa, told the Global Times on Tuesday. Local gangs collude with and receive support from overseas separatist forces. These gangs differ from normal ones because they aim to disturb the region's social stability and prosperity rather than make money, Xiong noted. Zhu noted at the briefing that cracking down on gang crimes in Tibet should be integrated with the fight against separatist forces, according to the Lahsa government website. However, he told the Global Times on Tuesday that the campaign in Tibet is aimed at people involved in organized crimes, which is no different from those in other parts of China, in response to some foreign media reports that groundlessly implied that the campaign in Tibet is targeted at people with religious beliefs or with ethnic backgrounds. "We strongly oppose and resolutely crack down on any separatist force in the name of ethnicity or religion, which are mainly organized by the Dalai clique," he noted. A work report from the head of Tibet's High People's Court in January said that 360 people in 268 cases were found guilty during the region's crackdown on gang crimes in 2018. Another 25 people were also punished for inciting separatism or financial crimes which jeopardized national security. ^ top ^

 

Xinjiang

US sanctions over Xinjiang's Uygur internment camps are 'ready to go' except for Treasury hold-up due to trade war, sources say (SCMP)
2019-06-21
The US government is poised to punish Chinese officials over the mass internment of Muslim minorities in Xinjiang, months after a previous round of discussions about sanctions was quashed at the cabinet level, according to a US official and two other individuals briefed on the matter. A newly prepared sanctions package has garnered working-level consensus across several departments, but Treasury Secretary Steven Mnuchin is said to have held up the action due to concern that it could disrupt trade negotiations, which have resumed in advance of the meeting next week between US President Donald Trump and Chinese President Xi Jinping in Japan at the G20 conference. Mnuchin – a moderate in an administration marked by its hard line in dealings with China – was reported to have impeded a move to consider similar sanctions in December, after Trump and Xi last met. There is agreement across multiple agencies at the working level, sources said, on the need for and details of the sanctions, which would be enacted under the Global Magnitsky Act, an Obama-era tool that freezes the US-based assets and restricts travel of foreign individuals deemed responsible for human rights abuses. "The sanctions are ready," said the official, speaking on condition of anonymity. "They're ready to go." That account was confirmed by people recently briefed by the government, including Omer Kanat of the Uygur Human Rights Project. "The sanction is coming," Kanat, the Washington-based organisation's director cited State Department officials as saying at a meeting earlier this month. "Many government agencies are involved, they are in contact, they are in agreement on sanctions." In preparation for the sanctions, the State Department approached Uygur advocacy groups in May and asked them to submit evidence to support the application of the Global Magnitsky Act against Chinese officials responsible for the human rights crisis in Xinjiang, according to a person with knowledge of the request. Calls for sanctions against Chinese officials have proliferated since last year, amid a growing global outcry over Beijing's internment and political indoctrination of an estimated one million or more ethnic Uygurs and other mostly Muslim minorities in China's far western region of Xinjiang. Beijing has bristled at any mention of US action over Xinjiang, with a foreign ministry spokesman in March slamming calls from US lawmakers for Magnitsky sanctions as "smears" and attempts to sabotage bilateral relations. The Chinese government has also vehemently defended the camps, calling them "vocational training centres" designed to combat "terrorism and extremism". But its all-out propaganda offensive and highly controlled tours of the facilities for foreign diplomats and journalists have failed to quell critics, including US lawmakers, scholars and Uygur activists who seek a strong US response. Despite the inter-agency consensus that Magnitsky Act sanctions are needed, numerous cabinet-level officials must sign off on the action for it to move forward. The agencies involved in the preparation and enactment of such sanctions include the Departments of State, Treasury, Commerce and Defence. Kanat was not given a timetable for the sanctions, but said that senior officials from several agencies, including the State Department, had told him that "the problem is with the Treasury department". That claim was confirmed by the government source, who told the South China Morning Post there had been no indication of willingness from Mnuchin to stop blocking the action. The Treasury Department, which would announce the Magnitsky sanctions since they include the freezing of foreign individuals' US-based assets, did not respond to requests for comment. Commerce referred inquiries to the Treasury, while the Pentagon did not respond. Fuelling concern that Treasury stands in the way of the current sanctions package are reports that the department stalled similar movements late last year, after Trump and Xi met in Argentina. The New York Times reported last month that deliberations then about whether to impose sanctions against Chinese officials over the internment camps sputtered at the Treasury department out of concerns they would disrupt progress in trade negotiations. "There was instruction for Treasury … to prepare a package to have specific individuals and the reasons why they're included in the list for sanctions," the government official told the Post. Amid hopes that a trade deal was on the horizon – Washington and Beijing agreed to a three-month reprieve in tariff escalation in December to allow negotiators to hammer out an agreement – the department refused to prepare its component of the package, the official said, characterising Mnuchin's position at the time as "I want my trade deal done". Prospects of follow-through on the sanctions this time appear somewhat greater. Treasury has prepared its component of the sanctions package, the official said – a step that was not completed last year given Mnuchin's intervention. "This is a tiny victory," said the official, adding that Treasury's current package was finished around March. "Once the political decision is made, it [can] be done, the sanctions [can] go ahead." The reaching of working-level consensus across all departments was in itself a notable achievement, former State Department official Sarah Sewall said, adding that every department has "different equities and interests". "It's a lot easier in a lot of these inter-agency processes to stop something than it is to start something," noted Sewall, a former under secretary of state for civilian security, democracy and human rights who served as the Obama administration's special coordinator for Tibet. Another person briefed by government officials said that the thwarting of that inter-agency process last year had tempered hopes that the sanctions would ever be applied, especially since officials had told him in December the sanctions were imminent. But this time, he said, "there are indications … they are planning to actually enact them soon". One difference since December is clear. As hopes for an imminent trade deal were dashed in early May with the breakdown in talks, the administration hardened its position on a number of other fronts. In mid-May, Trump signed an executive order that lays the groundwork for banning Chinese telecom giant Huawei Technologies from the American market – another move that, according to Bloomberg, had been held off for months out of concern it would disrupt trade negotiations. The US government is also weighing whether to limit the Chinese video surveillance firm Hikvision's ability to buy American technology, The New York Times reported last month. If so, it would mark the first time the Trump administration has punished a Chinese company for its role in the surveillance and mass detention of Uygurs. "It would be hard for me to believe that Xinjiang was not part of the decision-making process" on Hikvision, said Todd Stein, a former State Department member of staff who worked on human rights issues in China during the Obama administration. In recent months, Sam Brownback, the US Ambassador at Large for International Religious Freedom at the State Department, has repeatedly denounced China's crackdown on Muslims, as well as on Christians and Tibetan Buddhists. In an interview with the Post, Brownback declined to comment on the possibility of applying the Magnitsky sanctions, but said "the United States is very concerned about what's happened in Xinjiang", calling the level of repression in the region "horrific" and the deployment of high tech surveillance "highly unwise". "The things I say are not said just because I dream them up," said Brownback. "I'm an ambassador of the administration and this administration approves what I put forward." Many in Congress – Democrats and Republicans alike – have demanded more than verbal condemnations. In April, more than 40 lawmakers sent a letter to Mnuchin, Secretary of State Mike Pompeo and Commerce Secretary Wilbur Ross communicating their disappointment "with the administration's failure so far to impose any sanctions related to the ongoing systemic and egregious human rights abuses in Xinjiang". Moreover, a bipartisan bill – the Uygur Human Rights Policy Act of 2019 – is headed to a vote in the Senate. It demands that the secretary of state consider "the applicability of existing authorities, including the Global Magnitsky Act, to impose targeted sanctions" on officials from the Chinese government and ruling Communist Party who are "credibly alleged" to be responsible for human rights abuses in Xinjiang, including the region's hardline party chief Chen Quanguo. Apart from his position in Xinjiang, Chen also sits on the party's 25-member ruling Politburo. If Chen is hit with punitive action under the Magnitsky Act, it would be the first time US economic sanctions would specifically target a Chinese official in the top echelon of the party's leadership. Chen would not be the first Chinese official to be hit by Magnitsky sanctions. In December 2017, a former police chief was hit with the sanctions over the death in custody of an activist – the first time the Trump administration took specific action in response to human rights abuses in China. With the recent momentum of preparations for Magnitsky Act sanctions, some hope that a coming speech on China by US Vice-President Mike Pence could preview the action. In a speech scheduled for Monday at the Wilson Centre think tank, Pence is expected to slam China for its repression of religious freedom and human rights, according to CNBC. In October, Pence became the highest-ranking Trump official to publicly cite the mass internment camps in Xinjiang, during a speech outlining US policy on China seen as exacerbating the downward spiral in bilateral relations. Monday's talk comes just before Trump and Xi meet in Japan on June 28 and 29, leading some analysts to note that any full-throated condemnation of China's human rights record could make face-to-face negotiations difficult. Yet the "surgical" nature of Magnitsky Act sanctions – their targeting of individuals, not governments – can make the action suitable ahead of high-profile summits to "express disapproval in a way that's seen as not rupturing", said Sewall, the former State department official. "Whenever you've got the president or another high-level cabinet official about to cut a deal or do a meeting," she said, "sometimes you would do Magnitsky [sanctions] because you didn't want to raise the big issue in the meeting but you wanted to cover your flank with your domestic audience." ^ top ^

Belgian diplomat seeks 'missing' Xinjiang Uygurs who were led away from embassy by Chinese police (SCMP)
2019-06-19
A Belgian diplomat is expected to travel to Xinjiang in China's far west to confirm the whereabouts of a Uygur family that was escorted from the country's embassy in Beijing by police last month. The disappearance of the woman and her four children has alarmed her husband, as an estimated one million ethnic Uygurs and other mostly Muslim minorities are reported to be held in internment camps in Xinjiang. Abdulhamid Tursun, a political refugee in Belgium, said he had not heard from his family since May 31, a few days after they left the embassy under murky circumstances. "I am worried about their safety," he said. "I hope they can safely come to be at my side as soon as possible, and our family can reunite." Belgium's decision to dispatch a diplomat to Xinjiang comes as the embassy faces criticism for allegedly enabling Chinese police to take the family back to Xinjiang. "The case exposes the additional risk Uygurs in China face even if they want to seek help from foreign governments," said Patrick Poon, China researcher at Amnesty International. "The Belgian embassy set an extremely bad example of how governments put economic interests above human rights." China's foreign ministry and the Xinjiang government did not immediately respond to requests for comment. The mother, Horiyat Abdulla, and her four children travelled to Beijing at the end of May to complete missing paperwork for their family reunification visas. According to Tursun, his wife and children panicked upon learning it would take "at least three months" for their visas to be approved and refused to leave the embassy. They were afraid to return to their hotel because police had visited them multiple times since they arrived in Beijing, he explained. "The police came in the middle of the night, asking why they came to Beijing, when they would return," he said. "They were very scared, they didn't sleep all night." The embassy offered to accompany Abdulla and her four children back to their hotel, but they "refused to leave the embassy in a kind of sit-in", a Belgian ministry spokesman said. In an interview published on Tuesday, Belgian Foreign Minister Didier Reynders told Le Soir newspaper that the diplomatic police "asked the family to leave the premises" and the situation was explained to the father the next day. An embassy is not intended to "lodge people" applying for visas, he said. In the end, Chinese police "escorted them away", the Belgian ministry spokesman said. A few days later, Abdulla and her children were taken away by Xinjiang police, her husband said, and he had not heard from her since. Reynders told the Belga news agency on Monday that the diplomat would go to the address given by the father to check if "everything is going well" with them. "My only concern here is that we can reunite the family," he told Belga. On Monday the foreign ministry did not have confirmation that they were at home. According to human rights groups, authorities in Xinjiang have confiscated passports of Uygurs, making it difficult for them to join their relatives overseas. Abdulla and her children, too, have struggled to obtain passports – an issue that Belgium's ambassador would take up with China's director of consular affairs, Reynders told Belga. Abdulla applied for a passport in 2017, but never received one, according to receipts seen by AFP. Tursun believes that the family "took a risk" by travelling outside Xinjiang in the first place. "If my family then returns to [Xinjiang's capital] Urumqi, it's very likely that they will be sent to a concentration camp," he wrote in March in an email to a non-profit helping the family with their visa application. ^ top ^

 

Hongkong

Hong Kong government scrambles to save face as extradition bill backlash threatens to paralyse legislature (SCMP)
2019-06-21
Hong Kong's embattled government is working behind the scenes to save face under the threat of business being paralysed in the legislature after it was forced to suspend its controversial extradition bill amid mass protests and violent clashes on the streets. While protesters on Thursday said they were ready to besiege government headquarters again on Friday, both opposition and pro-establishment lawmakers were expecting little to be achieved in the Legislative Council over the next few months. Highlighting the issue, the government's Administrative Wing notified civil servants that headquarters would be closed on Friday for security reasons. The Transport and Housing Bureau appeared to be the first victim of collateral damage, with a source revealing that officials had tried to lobby opposition pan-democrat lawmakers to save them from embarrassment over funding for a controversial residential project, as they feared their political allies might not be supportive. The possibility of a cabinet reshuffle has also been raised, with Anna Wu Hung-yuk, a former member of the Executive Council, telling the Post that Chief Executive Carrie Lam Cheng Yuet-ngor should consider appointing new advisers to embrace a wider spectrum of views. "Given the inadequate political representation and imbalance in political franchise as of now, the one basic form of accountability of the chief executive and the government is to listen attentively to the views of the public and to demonstrate that it will respond to the public positively," Wu said. Lam was forced to offer a personal apology to the public over her mishandling of the bill that would have allowed the transfer of fugitives to mainland China and other jurisdictions with which the city does not have an extradition deal. Her decision to suspend the bill in the face of mass protests failed to pacify opponents demanding its complete withdrawal, and also upset pro-establishment lawmakers who felt betrayed by her U-turn after they were asked to support it in public. A pan-democratic politician, who spoke on the condition of anonymity, told the Post that transport and housing officials had lobbied them to support the funding request for the public housing development project in Wang Chau, fearing that some pro-establishment lawmakers would stage a no-show at Legco's finance committee meeting on Friday. "It is awkward for the bureau to lobby us, as of course we will oppose the project," the source said, referring to the housing plan that has sparked allegations of collusion between the government, landlords and developers. "He then asked us not to attend the meeting so that the 'no' votes would not outnumber the 'yes' votes. It appears they have not secured sufficient votes from their allies." While pan-democrats warned of paralysis unless the government scraps the extradition bill, Liberal Party leader Felix Chung Kwok-pan expected little work to be done until the district council elections in November. Veteran politician Allen Lee Peng-fei and Shi Yinhong, an academic at Renmin University in Beijing and a key adviser to the central government, said Lam was now running a lame-duck administration but Beijing would not allow her to quit. Anna Wu, chairwoman of the Competition Commission, also suggested Lam appoint a commission of inquiry to investigate allegations of police brutality during the clashes with protesters near government headquarters and the Legco building last Wednesday. "If the issue is not defused very quickly, I think the chief executive will be vulnerable to stepping down before her term ends," Wu said. In response to Wu's call for a cabinet reshuffle, executive councillor Regina Ip Lau Suk-yee said the question was more about "how to do it to add value, and where to get more capable people to add value". The government has already reshuffled its Legco agenda to postpone scrutiny of the sensitive national anthem bill and a contentious funding request to get started on the plan to build artificial islands off Lantau. A government source said the fallout from the extradition bill controversy would definitely have an impact on the mega project, and the administration was still directionless on how to proceed with another land supply policy seeking to tap into developers' farmland reserves. Student groups looked set to besiege the legislature and administrative headquarters on Friday after Lam did not meet their Thursday deadline to address their grievances. Secretary for Education Kevin Yeung Yun-hung called for understanding among students and youth in a letter to pro-Beijing newspaper Ta Kung Pao on Thursday – a move mocked by the pan-democrats as detached and out of touch. ^ top ^

Hong Kong activists complain police failed to display ID numbers, as security chief says uniform has 'no room' (HKFP)
2019-06-21
Hong Kong activists have filed complaints over alleged police misconduct during the clashes with anti-extradition law protesters last Wednesday. During the demonstration against the extradition bill, police deployed its Special Tactical Squad – nicknamed "raptors" – but many of them did not display any identification numbers or their ranks on their uniforms. Explaining the issue to lawmakers at the Legislative Council on Wednesday, Secretary for Security John Lee said the uniforms had "no room" for identification numbers. But Democratic Party lawmaker Lam Cheuk-ting said news reports relating to protests on June 9 and 10 showed that the team did have identification numbers on the uniforms. He said Lee's claim was not therefore unconvincing. Lam made a police report against Lee at the Wan Chai police headquarters. "No numbers, no insignia on the shoulder, no warrant card – It is very difficult for residents and press to identify police officers who abused their power," Lam said. "If the police force allows many officers to hide their identification numbers, the objective effect is to encourage and to allow them to abuse their power, to act illegally." Hong Kong has seen the largest protests in its history amid government plans to update the city's extradition laws to cover territories with which there are no prior agreements. Introduced in February in response to a Taiwan murder, the since-postponed bill would allow case-by-case fugitive transfers to other jurisdictions – such as China – without legislative oversight. The plan prompted a chorus of criticism from democrats, lawyers, journalists, foreign politicians and businesses, who say the mainland lacks human rights protections. During last Wednesday's protests against the bill – which effectively forced the government suspension – 150 tear gas canisters, 20 bean bag rounds and several rounds of rubber bullets were deployed, according to Police Commissioner Stephen Lo. At least 76 were injured, and 32 were arrested. The Civil Human Rights Front also filed a complaint against the police on Thursday. As the unrest unfolded last week, the Front was holding a rally – approved by the police – outside Citic Tower next to the Legislative Council. Jimmy Sham, convener of the Front, said the police used force to disperse participants of the rally without any warning. He said tear gas engulfed the crowd from both sides, forcing people to rush into nearby Citic Tower, where only one door was open. "Thousands were at a peaceful rally. Many protesters were trying to find a space [to escape to] and they went on to our stage – and the police shot tear gas at the stage," Sham said. Sham said that the police action could have caused a stampede. ^ top ^

Hong Kong bill criminalising mockery of national anthem to be delayed until at least October (HKFP)
2019-06-20
Legislative Council President Andrew Leung has confirmed that lawmakers will not scrutinise the national anthem law bill again before their summer break in mid-July. The bill can only be considered again in October when a new legislative year starts. On Saturday, the government suspended the controversial extradition bill following mass protests. The administration has since written to the legislature's House Committee – which handles internal affairs including the agenda – asking if lawmakers would object to resuming the debate for three bills, including the national anthem bill. But Leung, of the pro-Beijing Business and Professionals Alliance for Hong Kong, told reporters on Wednesday that there were other issues for lawmakers to examine, including tax cuts and the extension of judges' retirement age. Leung said he had asked Secretary for Constitutional and Mainland Affairs Patrick Nip if the government really wished to continue with the controversial bill: "If the secretary agrees to people's advice – including mine – maybe he wouldn't send it to the [legislature for its second reading] within this legislative year," Leung said. "The legislature needs some time to calm down… The legislature has a lot of livelihood and economic issues to handle. Maybe the political issues can be set aside for now. That's my opinion." When meeting the press on Wednesday evening over a separate matter, Leung confirmed that the LegCo Secretariat received a letter from Nip stating that the bill process will not resume before the current legislative year ends on July 10. Under the national anthem bill put forward by the government this year, anyone who publicly and wilfully alters the lyrics or the score of March of the Volunteers, performs or sings the anthem in a derogatory manner, or insults the song, risks a penalty of up to HK$50,000 and three years behind bars. The draft national anthem law has already been tabled at the legislature, and has completed the bills committee stage. It is pending resumption of a second reading at the Legislative Council's general meeting. Democratic Party lawmaker Lam Cheuk-ting said Leung's suggestion was reasonable. He said that another controversial discussion on the horizon is the research funding proposal for the Lantau Tomorrow Vision reclamation plan. The government said the plan may cost HK$624 billion. "The national anthem law, as well as the funding for Lantau Tomorrow Vision, should not be forcefully passed at the legislature at this stage. Otherwise, a new round of public anger and protests will arise," he said. ^ top ^

 

Taiwan

Taiwan 'watching' as Liaoning aircraft carrier sails into South China Sea (SCMP)
2019-06-20
Taiwan's military claims to have precise information about the movements and current location of the mainland's carrier battle group as it sails into the disputed waters of the South China Sea. The self-ruled island's defence ministry made the claims in a statement on Thursday but did not elaborate on the position or route of the Chinese aircraft carrier Liaoning and its escorts, last officially reported to be passing near Japanese waters on June 11. "The military has been able to exercise all relevant intelligence to get hold of the entire movements of the Liaoning, including those of its ships and planes throughout its voyage in relevant regions," the ministry said. "The military has the ability to safeguard Taiwan and maintain peace and stability in the region." Japanese defence officials said the Liaoning was travelling with five other vessels, including two guided missile destroyers and two frigates, when it passed through the Miyako Strait – between Okinawa's main island and Miyako Island – on its way into the Pacific. Japan is continuing to monitor the mission, which Beijing has said is a routine training exercise conducted in accordance with international law, calling on other nations to respect its right of passage. Taiwanese news media quoted an unnamed intelligence source who said the battle group had headed to the western Pacific Ocean after leaving the Miyako Strait, sailing close to Guam and the Philippines before entering the South China Sea. Taiwan's Central News Agency reported on Wednesday that the Liaoning was likely to be visiting artificial reefs in the Spratly Island chain. Beijing claims sovereignty over parts of the Spratlys, and has expanded some of its land formations and reinforced them with armaments. Taiwanese news outlets reported that the Liaoning exercise was intended as a counter-challenge to the United States, which has repeatedly sailed warships through the Taiwan Strait in what Beijing regards as a challenge to its influence in the waterway separating the island from the Chinese mainland. Washington has also encouraged other countries to send military vessels through the Taiwan Strait in what it calls "freedom of navigation" exercises. Taiwan's defence ministry also confirmed on Wednesday that a Canadian warship sailed through the Taiwan Strait on Tuesday – two months after a similar exercise by a French vessel – and that its movements were closely monitored. The Marine Traffic website tracked the Canadian Halifax-class frigate HMCS Regina as it passed through the Taiwan Strait from the South China Sea before heading towards the East China Sea. According to the Canadian Trade Office in Taipei, which represents Canada's interests in the absence of formal ties with Taiwan, the ship was part of a detachment of warships assigned to Operation NEON, Canada's contribution to the multinational effort to ensure that United Nations sanctions against North Korea are enforced. The trade office said the Regina's passage had nothing to do with politics but had followed the "most practical route between Cam Ranh Bay and Northeast Asia". "Transit through the Taiwan Strait is not related to making any statement," it added. ^ top ^

 

Economy

Li assures entrepreneurs of expanded market access (China Daily)
2019-06-21
Premier Li Keqiang pledged on Thursday that China will continue to broaden market access in a wider range of fields while expanding opening-up. Li made the remark while meeting with 19 global business leaders from leading companies gathered in Beijing for the seventh roundtable summit of the Global CEO Council. China welcomes more foreign capital, Li said, and the country will strive to build a market-oriented, law-based and internationalized business environment. In the context of rising uncertainty and instability in the international situation, Li said, transnational companies should work together to help stabilize and push for the growth of global trade and the economy, improve global industrial chains and safeguard peace around the world. Li expressed appreciation for foreign companies that have introduced capital, technology and new business philosophies to China through long-term cooperation during the nation's reform and opening-up drive. "In the meantime, you already have a broad market in China as well as business returns," Li said. "Actually, we have achieved win-win results over the past decades." Li called on the global business leaders to expand investment in the country and share in its development opportunities. He said China has allowed foreign capital to fully access the manufacturing industry and will gradually expand opening-up in the services sector. Saying China pursues innovation-driven development, Li underlined the importance of protecting intellectual property rights. He said protecting IPR is linked to protecting innovation efforts. China treats domestic and foreign enterprises equally and will protect all of their lawful rights and interests, including IPR, Li said. Li reaffirmed that China is ready to synergize the Belt and Road Initiative with development strategies of various countries based on market rules and business principles to ensure sustainable cooperation. Chairmen and CEOs from leading global companies including UPS, Volkswagen, Rio Tinto, Nokia, Schneider Electric, ABB and ArcelorMittal attended the meeting. The business leaders said they all remain committed to strengthening cooperation with China, and want to expand cooperation with it in such fields as finance, automotives, digital economy, 5G, innovation, infrastructure and manufacturing. They said they are committed to promoting global infrastructure connectivity, jointly upholding free trade and opposing protectionism. ^ top ^

China's central bank continues to inject liquidity into market (Xinhua)
2019-06-21
The People's Bank of China (PBOC), the central bank, on Friday continued to pump cash into the financial system through open market operations to maintain liquidity in the market. The PBOC conducted 30 billion yuan (about 4.38 billion U.S. dollars) of 14-day reverse repos, a liquidity-injecting process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future. The interest rate for the operation stood at 2.7 percent, the PBOC statement showed. The moves aimed to ensure stable liquidity in the middle of the year, the statement said. No reverse repos matured on Friday. China vowed to keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019. ^ top ^

China asks state-owned 'national champions' to help 'stabilise' economy, boost profits by 9 per cent in 2019 (SCMP)
2019-06-17
China's biggest 97 industrial conglomerates, known as the country's national champions, have been asked to play their part as "stabilisers" in the national economy in a bid to offset the trade war with the United States by boosting their profits by 9 per cent in 2019, according to the state-owned Xinhua News Agency. The State-owned Asset Supervision and Administration Commission (SASAC) set the target for the enterprises under its direct control, including state-owned oil and electric companies, with China's overall industrial profits shrinking and economy slowing. According to The Economic Observer, 20 of those 97 state enterprises, which have monopoly positions in specific industries, including the China Aerospace Science and Technology Corporation, China National Petroleum Corporation and State Grid Corporation of China, are required to achieve a 12 per cent profit growth this year. In the first four months of 2019, the combined profits of China's industrial enterprises fell 3.4 per cent compared to the same period last year, according to the National Bureau of Statistics. The move highlights a reliance on large state-owned firms despite calls from China's trading major partners, including the US and European Union, to reduce the role of state companies in economic activities. According to China's statistics agency, the aggregate profits of state-owned or state-controlled industrial enterprise fell 9.7 per cent year on year to 570 billion yuan (US$82 billion) in the first four months of 2019. According to China's Ministry of Finance, which in theory is the ultimate shareholder in state enterprises, combined profits of state firms rose 15.6 per cent between January to April to 831.9 billion yuan (US$120 billion), while combined profits of state-owned firms under SASAC rose 14 per cent to 579 billion yuan. ^ top ^

 

DPRK

Xi, Kim agree to jointly create bright future of bilateral ties (Xinhua)
2019-06-21
The top leaders of China and the Democratic People's Republic of Korea (DPRK) agreed here Thursday that the two countries should stay true to their original aspirations and join hands to create a bright future of inter-party and inter-state relations at a new starting point in history. The agreement was reached in talks between Xi Jinping, general secretary of the Central Committee of the Communist Party of China (CPC) and Chinese president, and Kim Jong Un, chairman of the Workers' Party of Korea and chairman of the State Affairs Commission of the DPRK. Xi noted that since last year he and Kim had met four times, opened a new chapter for China-DPRK relations, and forged a profound friendship. The Chinese leader thanked Kim for the grand and rousing welcome ceremony, adding that he could feel the family-like friendship between the two peoples all along the way from the airport to the state guest house. This year marks the 70th anniversary of China-DPRK diplomatic relations, and bears great significance as it allows the two parties and two countries to build on past achievements and continue to forge ahead, Xi said, adding that it is against such a backdrop that he is meeting with Kim in Pyongyang. Xi said his visit is aimed at consolidating and carrying forward the China-DPRK friendship and at advancing the political settlement process of the Korean Peninsula issue. He added that he is confident that China and the DPRK, by taking the opportunity of the visit, will jointly blueprint a bright future of the bilateral relationship and open a new chapter of the China-DPRK friendship. By reviewing the development of China-DPRK relations, an insightful conclusion can be drawn that it is the essential attribute of the relationship that both are socialist countries adhering to the leadership of a Communist party, Xi stressed. Shared ideals, beliefs and goals are the driving force of the relationship, the continuous friendship between and strategic guidance by top leaders are the greatest strength, and the geographical proximity and cultural affinity offer a sturdy bond, he added. The China-DPRK friendship is a strategic choice made by the two sides with a long-term and overall perspective and will not waver due to changes in the international situation, Xi said, adding that the friendship accords with the aspirations of both peoples, the fundamental interests of both countries and the development trend of the times. Noting that China-DPRK ties have now entered a new historical period, Xi said that the CPC and the Chinese government attach great importance to the friendly and cooperative relations between the two countries, and that it is a steadfast policy of the CPC and the Chinese government to maintain, consolidate and develop China-DPRK relations. In face of the profound and complex changes on the global and regional landscapes, China and the DPRK should strengthen high-level contact to guide the development of China-DPRK relations, Xi said, adding that he is ready to maintain close exchanges with Kim to consolidate mutual political trust and hold firmly the general direction of bilateral relations. The two sides, Xi said, should deepen strategic communication and exchange views on major issues in an in-depth and timely manner, so as to create a favorable environment for the development of both countries. He also suggested that the two sides expand practical cooperation to bring more benefits to both peoples. China is ready to work with the DPRK to deepen inter-party exchanges on governance experience, and boost cadre training and personnel exchanges in economic and well-being areas, he said. The Chinese leader also urged the two sides to deepen friendly exchanges to lay a solid foundation for further consolidating and developing the China-DPRK friendship. China, he said, is ready to work with the DPRK to continue to implement the plan for commemorating the 70th anniversary of diplomatic ties, and conduct exchanges and cooperation in such fields as education, health, sports, media and youth as well as at local levels, so as to carry forward the traditional China-DPRK friendship and improve the well-being of both peoples. For his part, Kim expressed a hearty welcome to Xi's visit on behalf of the party, government and people of the DPRK, noting that more than 250,000 people flocked to the streets in Pyongyang to welcome Xi. The visit, which comes upon the 70th anniversary of bilateral diplomatic ties, represents a huge encouragement and political support for the party, government and people of the DPRK, and bears great significance in the history of DPRK-China relations, he added. Under current circumstances, said the DPRK leader, Xi's visit helps review the past 70 years of DPRK-China relations, envisage the future of bilateral ties, and demonstrate to the world the unbreakable traditional friendship between the two countries. Kim said that he fully agrees with the insightful analysis and future plan Xi made on bilateral relations, and that it is an unswerving policy of the DPRK's party and government to carry forward the DPRK-China friendship from generation to generation. He added that he highly values the profound friendship he has formed with Xi, and attaches great importance to the important consensus he has reached with the Chinese leader. He expressed his willingness to take Xi's visit as an opportunity to further strengthen strategic communication between the two sides, deepen friendly exchanges in various areas, and lift the DPRK-China relationship to a new height. Noting that this year marks the 70th anniversary of both the establishment of China-DPRK diplomatic ties and the founding of the People's Republic of China, Kim said the DPRK is ready to hold extensive and warm celebrations with China. At present, the party and people of the DPRK are making every effort to implement the new strategic line, Kim said, adding that his country is willing to learn more from China's experience and endeavor to develop the economy and improve people's livelihood. On the Korean Peninsula issue, Xi reaffirmed China's support for efforts to push forward the political settlement process and build up conditions for its resolution. Xi spoke highly of the DPRK's efforts to safeguard peace and stability on the Korean Peninsula and promote the denuclearization of the peninsula. The situation of the Korean Peninsula concerns regional peace and stability, Xi pointed out, noting that a bright prospect of resolving the issue through dialogue has appeared over the past year, which has gained the recognition and raised expectations of the international community. The international community hopes that talks between the DPRK and the United States will move forward and bear fruit, Xi added. Stressing that the Korean Peninsula issue is highly sensitive and complex, Xi said a strategic and long-term perspective is needed to accurately guide the evolution of the situation and effectively maintain peace and stability on the peninsula. China, Xi said, is willing to provide assistance within its capacity for the DPRK to address its legitimate security and development concerns, strengthen coordination and cooperation with the DPRK as well as other relevant parties, and play a positive and constructive role in achieving denuclearization of the Korean Peninsula and long-term stability in the region. For his part, Kim said that over the past year, the DPRK has taken many active measures to avoid tensions and control the situation on the Korean Peninsula, but has not received positive responses from the party concerned, which the DPRK does not want to see. The DPRK is willing to stay patient, and hopes that the relevant party will work with the DPRK to seek solutions that accomodate each other's legitimate concerns and push for results from the dialogue process, Kim said. The DPRK highly appreciates the important role played by China in solving the Korean Peninsula issue, he said, adding that his country is ready to continue to strengthen communication and coordination with China to strive for new progress in the political settlement of the issue and safeguard peace and stability on the peninsula. Xi arrived in Pyongyang earlier Thursday for a state visit to the DPRK. The visit, Xi's first as CPC chief and Chinese head of state and also the first of its kind in 14 years, came as the two neighboring countries are celebrating the 70th anniversary of their diplomatic ties. ^ top ^

Kim Jong-un regime won't last beyond 20 years, predicts North Korean diplomat who defected (SCMP)
2019-06-20
Kim Jong-un's regime in North Korea could collapse within 20 years, but due to generational change within the country rather than external force or a coup, a prominent defector predicted on Thursday. However, former diplomat Thae Yong-ho told reporters in Japan that the Kim regime would be safe for at least another decade as the young leader enjoys the loyalty of older generations around him. "I think that maybe 10 years is too short. I don't think the Kim Jong-un regime will collapse in 10 years. But I don't think Kim Jong-un will continue another 20 years," said Thae, who fled his post as the North's deputy ambassador to Britain in August 2016. "If I am able to live another 20 or 30 years, I think I will be able to walk back to my hometown." However, he stressed that if Kim's ironclad rule does come to an end, it will be due to a younger generation coming through rather than an organised coup d'etat or regime change from a foreign power such as the United States. "At this moment, I think there cannot be any immediate people's uprising or military initiative to remove Kim Jong-un, because the military is not very well organised for that kind of purpose. But I am looking for a change of generations," Thae said. The people around Kim are now aged between 60 and 80, however, and change could come when these loyal footsoldiers retire, he predicted. "When the current generals are all retired and the generals now in their 30s, 40s or 50s are in power, I don't think they will continue to share the same ideology of Kim Jong-un," Thae said. "I'm sure they will say goodbye to Kim Jong-un. Only time can solve the problem." Thae also said he did not believe that any officials had been executed after the failure of Kim's summit with US President Donald Trump in Hanoi, as was reported. He said some officials may have received "revolutionary education" – which he described as "one or three months' work in the countryside and coming back to their post". "I think that kind of very slight punishments were applied, but there were not executions or purges or shootings because of the Hanoi failure," Thae said, partly because Kim was also somewhat to blame. "If he completely turns this responsibility to other people, it would undermine his credibility and leadership and Kim Jong-un knows that very well," said Thae. South Korea 's Chosun newspaper reported last month that Kim Hyok-chol was sentenced to death for "betraying the Supreme Leader" after he was "won over by the US" during pre-summit negotiations. Kim has not been mentioned by North Korea 's state media since the Hanoi summit, which ended abruptly without an agreement. ^ top ^

North Korea puts on a show for Chinese President Xi Jinping's state visit as Kim Jong-un ensures warm welcome (SCMP)
2019-06-20
Hundreds of thousands of flag-waving citizens turned out to welcome Chinese President Xi Jinping as he arrived in Pyongyang on Thursday for a two-day state visit to North Korea. Xi is making his first trip as president to the country, and its leader Kim Jong-un appeared to be taking no chances on ensuring him a warm welcome. An estimated 250,000 people were mobilised to demonstrate their delight as Xi was driven through the streets of Pyongyang to a guest house in the grounds of the Kumsusan Palace of the Sun. The palace complex also serves as a mausoleum for the country's late leaders, Kim Il-sung and Kim Jong-il. Xi thanked Kim for the "solemn and warm" welcome he received. "I can feel it in the atmosphere everywhere that China and North Korea are close, like one family," he said, according to China's state broadcaster CCTV. Xi and his wife Peng Liyuan arrived at Pyongyang's Sunan International Airport about noon, greeted by Kim and his wife Ri Sol-ju, and a 21-gun salute. The two leaders are expected to use the visit to cement ties amid their separate but rising tensions with the United States. Xi's trip is the first by a Chinese president to North Korea since Hu Jintao crossed the border in 2005. It is also the first ever "state" visit since the two Communist nations established diplomatic ties in 1949. CCTV dedicated 12 minutes in its main evening news programme to Xi's arrival in Pyongyang, including scenes of the huge portraits of the two leaders in golden frames on the tarmac as his plane touched down, and the 10,000 children and adults in colourful uniforms and traditional outfits, waving flowers and flags and chanting welcoming slogans. Escorted by 21 motorcycles, Xi was then driven through Pyongyang's manicured streets in a black limousine, as huge crowds thronged to watch him pass while chanting "man sei" or "long live". One huge red banner read seen along the route said: "Long live the unbreakable friendship and unity between the people of North Korea and China formed by blood." Xi and Kim later stood side by side in an open-top car so they could wave to the crowds as they drove to the guest house. When they arrived at the palace, tens of thousands of colourful balloons were released and tens of thousands of people in traditional dress performed a tightly choreographed dance. Chinese state news agency Xinhua described the welcome ceremony as unprecedented for a foreign leader. Xi and Peng were expected to attend a formal mass performance on Thursday evening, with the theme of the show expected to be the inseparable relationship of the two countries and their leaders. ^ top ^

South Korea urges North Korea to hold another summit before Donald Trump's Seoul visit, US says their door is 'wide open' (SCMP)
2019-06-20
South Korea on Wednesday urged North Korea to hold another summit with its leader ahead of US President Donald Trump's visit to Seoul next week, while the United States said its door remained "wide open" for talks with Pyongyang. US Special Representative for North Korea Stephen Biegun, speaking at a Washington forum, said the United States had no preconditions for new talks with North Korea, which have been stalled since a failed summit between Trump and North Korean leader Kim Jong-un in February. Biegun said Washington's door remained "wide open" to negotiations and that the United States was willing to discuss all commitments made by the two leaders at a first summit in Singapore last year, which included security guarantees for North Korea. However, he stressed that progress would require "meaningful and verifiable" North Korean steps on denuclearisation. Speaking at the same Atlantic Council event, Biegun's South Korean counterpart Lee Do-Hoon called for a fourth summit between Kim and South Korean President Moon Jae-in. "I urge North Korea to respond to President Moon's outstanding invitation to hold an inter-Korea summit, if possible, before President Trump visits Korea next week," Lee said. Trump is due to visit Seoul next week for meetings with Moon after taking part in the G20 meetings in Japan. Trump's Hanoi summit with Kim fizzled after the two sides failed to reconcile US demands for North Korea to give up its nuclear weapons and North Korean demands for a lifting of punishing US-led international sanctions. North Korea had not responded to repeated US and South Korean entreaties to resume talks since Hanoi, although Trump said last week he received a "beautiful" letter from Kim. Trump said he thought something positive would happen with Pyongyang but gave no details and said he was in no rush for a deal. Biegun, in what were rare public comments, said both Washington and Pyongyang understood the need to be flexible in approaching further nuclear talks, but he stressed that North Korean working-level negotiators had to be empowered to discuss denuclearisation – something that was not the case in the run-up to Hanoi. "We are prepared to embrace all the full set of initiatives that our two leaders committed to, but we have to discuss all of them," he said. "We cannot make progress without meaningful and verifiable steps on denuclearisation. It's absolutely the core of this, it's what produced this moment to begin with." Biegun said that while there had been no working-level talks with North Korea since Hanoi, there had been "numerous communications between our governments." "The door is wide open to negotiations and … we expect and hope that in the not too distant future we will be re-engaged in this process in a substantive way." However, Biegun conceded that despite more than a year of engagement with North Korea, the two sides still had no agreed definition of "denuclearisation". He added: "We do consider that a very important starting point: We will never get to our destination if we do not know where we are going." Biegun stressed the positive role China had played in efforts to persuade North Korea to give up its nuclear weapons and said he had "every expectation" that Chinese president Xi Jinping would send constructive messages on the issue during a visit to Pyongyang this week. ^ top ^

 

Mongolia

Innovation & Investment Forum takes place (Montsame)
2019-06-20
At the initiation of Parliament Speaker G.Zandanshatar, a forum took place under the theme, 'Innovation & Investment Forum', on June 20. Co-organized by the Development Bank of Mongolia, DBM Leasing LLC and DBM Asset Management SC LLC, the forum was attended by the Development Bank of Mongolia and its affiliates, policy makers, officials of the National Chamber of Commerce, representatives of international and domestic financial institutions and embassies, business owners, GIZ IMRI programme as well as innovative product developers and researchers. With aims to define solutions and opportunities for innovative startup companies to enter the market, discuss issues and solutions of Government policies and financial mechanisms necessary for the development of competitive innovations, and build business relationships and help businesses, investors and public organizations recognize the potential of researchers, scientists and innovators, discussions were held under several topics on innovations of researchers and issued critical to their development, role of investors and financial institutions in successful introduction of innovation to markets, government policy on supporting innovation and global experience and best practices on innovation development and commercialization. Presentations on innovation and introductions of various innovative ideas, services and inventions were done at the forum. ^ top ^

High-level inter-regional conference against terrorism taking place in Ulaanbaatar (Montsame)
2019-06-20
On June 20, the High-Level Inter-Regional Conference on 'Whole-of-Society Approach' to Preventing and Countering Violent Extremism and Radicalization that Lead to Terrorism kicked off at the Ministry of Foreign Affairs. The conference is being co-organized by the Government of Mongolia, OSCE Secretariat's Transnational Threats Department (TNTD) and the United Nations Office of Counter-Terrorism. D.Tsogtbaatar, Minister of Foreign Affairs, D.Gerel, Director of the General Intelligence Agency, Thomas Greminger, Secretary General of the Organization for Security and Co-operation in Europe (OSCE), and Muhammad R. Shah of the UN Office of Counter-Terrorism delivered remarks at the opening chaired by Deputy Minister of Foreign Affairs B.Battsetseg. In his remarks, Foreign Minister Tsogtbaatar noted, "Terrorists' and criminals' area of operations will be narrowed more and more with elevation of developing countries' potential for countering terrorism and organized crime to an appropriate level." "We have to bear in our mind that terrorism and transnational organized crime, in particular drug trafficking are interconnected. Drug affects a person's mental state, making them prone to violent extremism," he added. At the conference, around 180 participants from Asia and Europe comprising policy makers, civil society representatives, members of Counter-Terrorism Coordination Council of Mongolia, and law enforcement officials are sharing their best practice in the fight against terrorism and exchanging views on building trust through enhancement of inter- cultural and religious dialogues and harmony, ensuring public participation in development of national policies, strategies and plans to prevent and counter the crime. Moreover, honored guests of the conference, Milan Ciganik, representative from Slovakia - 2019 OSCE chair, G.Munkhtsetseg, Member of Parliament, and Peter Szijjarto, Minister of Foreign Affairs and Trade of Hungary shared their stance on promoting inter-religious dialogues and harmony to prevent transnational organized crime and improving laws on prevention of the crime. The regional conference will take place until June 21. ^ top ^

Mongolia ranks 42nd in Global Peace Index (Montsame)
2019-06-20
The Institute for Economics and Peace released its thirteenth edition of the Global Peace Index (GPI), which ranks 163 independent states and territories according to their level of peacefulness. Mongolia ranks at the 42nd place in the GPI with 1.792 points, unchanged from the previous year. Iceland remains at the top with 1.072 points, followed by New Zealand and Portugal. Afghanistan is now the least peaceful country, according to the report. The state of peace was measured using three thematic domains including the level of Societal Safety and Security, the extent of Ongoing Domestic and International Conflict and the degree of Militarisation. ^ 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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