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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
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DPRK
Mongolia
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US asks Swiss courts to extradite Chinese scientist accused of stealing drug secrets (SCMP)
2019-07-08
Switzerland has found itself caught up in a potential dispute between the US and China after Washington began extradition proceedings in the case of a Chinese scientist accused of economic espionage. Xue Gongda, a Basel resident, is accused of helping his sister steal secrets worth US$550 million from drug maker GlaxoSmithKline. A former Swiss diplomat with knowledge of the case said that it was too early to speculate about what the courts would decide, but said that the Chinese government should not overreact if the request for extradition was granted because such a decision would have been handled impartially by the Swiss courts without US influence. The diplomat, speaking on condition of anonymity, suggested that the case could not be compared with that of Meng Wanzhou, the senior Huawei executive who is fighting extradition proceedings in Canada, saying the scientist was "nowhere near the level of Meng". The details of the case emerged on Monday in Swiss court documents showing that the federal criminal court had ruled that Xue should be held in custody pending a resolution of the US request because he was a potential flight risk. The US allegations against Xue, 49, underscored global fears that China is using networks of its most highly educated citizens to steal trade secrets. China has consistently denied that it engages in systemic industrial espionage, but the US authorities have filed charges against several Chinese scientists in recent years. Xue, who worked at Switzerland's Friedrich Miescher Institute for Biomedical Research until 2014, is the brother of Joyce Xue Yu, a Chinese-American scientist who last August pleaded guilty in a US district court in Pennsylvania to stealing secrets from the British drug maker. According to the US indictment, Xue Gongda received stolen GSK secrets from his sister, performed tests at Miescher's facilities and sent the results to accomplices in China. The stolen information, prosecutors allege, involved antibodies that bind to tumour cells and kill them. "Gongda Xue knowingly received, bought and possessed a trade secret belonging to GSK … knowing it to have been stolen … with the intent to convert that trade secret … to the economic benefit of someone other than GSK," read one US charge. GSK said it was cooperating with the US authorities. Xue, who has been a Swiss resident for 18 years, was arrested in May and has been held in custody as authorities consider the US request, documents show. "He faces up 20 years in prison if convicted," the Swiss court wrote, in rejecting his release. "We affirm a flight risk." His Swiss lawyer declined to comment. Xue Yu, his 48-year-old biochemist sister who worked at Glaxo in Pennsylvania until 2016, is awaiting sentencing in her case in which a US government witness estimates that the stolen secrets were worth more than US$550 million. In total, there are six co-defendants, including Xue Yu's twin sister, Xue Tian, who also pleaded guilty last year to money laundering-related charges. US government lawyers allege the scheme involved the establishment of a Chinese state-backed company, Renopharma, that relied on theft to bypass the costly research process. "GSK invested more than 20 years of work and hundreds of millions of dollars," US prosecutors wrote. "By stealing these platforms, Renopharma obviated the need to undergo the same time and expense." Prosecutors have branded the case "economic warfare", adding the group had profit motives and hoped to sell Renopharma for up to US$2.2 billion. The Friedrich Miescher Institute, which helped develop cancer compounds such as Novartis's Afinitor, confirmed that Xue Gonda had been a postdoctoral employee, adding the institute had not accused him of wrongdoing. "We are cooperating with American authorities," a spokeswoman for the institute said. ^ top ^
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| Foreign Policy |
China must ensure transparency to boost credibility of belt and road projects, former US diplomat says (SCMP)
2019-07-12
China must ensure transparency surrounding the projects under its controversial Belt and Road Initiative to attract international investors, said Daniel Russel, the vice-president of the Asia Society Policy Institute and a former top US diplomat in Asia. The strategy is the cornerstone of President Xi Jinping's foreign policy that seeks to build infrastructure projects and improve global trade to connect Asia with Africa and Europe, but it has attracted a barrage of criticisms from China's trading partners over a lack of transparency, corruption, environmental damage, legal issues and labour problems. "It is in China's interest to persuade the host countries to provide more transparency, you can't force them but you can persuade them. For one thing, transparency is the enemy of corruption and corruption is the enemy of successful and financially sustainable projects", said Russel, who served as the US assistant secretary of state for East Asian and Pacific affairs from 2013 to 2017. "What I found is that some of the large problems in [Belt and Road Initiative] projects are partly caused by a rush to get a deal agreed. The Chinese side pushes for a memorandum of understanding to get signed to lock in a project before many of the issues of the project – the design and the financing of the project – are figured out." Last month, the Asia Society Policy Institute, a US-based policy think tank, published a report outlining 12 recommendations that it said would boost credibility of large scale infrastructure projects under the state-driven belt and road plan, which has also been criticised by the United States for creating "debt traps" for low income countries with weak economic outlooks. Russel also believes that there are opportunities for US companies to take part in belt and road projects, but that some foreign firms are reluctant to take part given the transparency issues and high costs involved in some of the investments. "The question is, because these are commercial decisions and not political decisions, do [foreign investors] have the opportunity and information and confidence that they will be treated fairly," Russel added, who was speaking at a seminar hosted by Renmin University of China in Beijing on Thursday. "It would make a lot of sense, from my point of view, for China to push in the direction of facilitating that access. Because we know historically that where US business leads, the US government follows." The report outlines major areas of concerns in the Belt and Road Initiative, many of which would require China to revise the way it conducts large scale infrastructure construction projects by improving transparency and better engaging with local communities, which are often heavily affected by the construction projects. The report's recommendations have won Beijing's endorsement, according to Russel, who met with senior officials from, among others, the Foreign Ministry. "I say this honestly, not as a compliment, but it's a matter of truth. I found that the Chinese government has been very open minded, very receptive to the recommendations, and to the constructive criticisms," Russel said. Among the recommendations, the group said a fund could be set up to award grants and other support to belt and road project applicant states, so that less-developed nations have sufficient resource to conduct proper feasibility analysis reports. The Chinese government, which have dominated the funding of belt and road strategy infrastructure projects to date, should only provide financials support to high-priority projects that are not be otherwise commercially viable and its financing of those investments should be publicly disclosed, said the Asia Society Policy Institute. More importantly, projects should seek diversified funding from international private and public investors to help lower transaction and project costs, reduce risks and improve the likelihood of success. The Asia Society Policy Institute also recommended that project developers maximise the use of local labour, companies and resources, while limiting their reliance on imported Chinese workers and materials. Chinese authorities should also set up a comprehensive online project database in English and, potentially, other languages in addition to Chinese, that is searchable and includes a list of completed, ongoing, and prospective proposals, according to the think tank. China has denied that it has been saddling developing countries with unsustainable levels of debt, but has promised to better regulate Belt and Road Initiative projects, while there are also signs that it is seeking to diversify the financing of belt and road plan projects away from government sources to the private sector. According to estimates by London-based investment bank Grisons Peak, the growth of China's bilateral loans issued by central government policy banks as well as local governments have slowed since the start of 2019, dropping from US$8.4 billion in the first quarter to US$4.9 billion in the second. In the third quarter of 2018, there were 14 direct government-to-government and policy bank loans worth an aggregate US$13.5 billion. This fell to just eight loans, worth US$4.9 billion, in the second quarter of 2019, according to Grisons Peak's report. Simultaneously, countries involved in the belt and road strategy were raising money through public bond issuances to repay Chinese debt, Grisons Peak's research shows. Uzbekistan raised a US$1 billion Eurobond in February, while the government of Sri Lanka raised €2 billion (US$2.3 billion) and €2.4 billion through bond placements in March and June, respectively. Grisons Peak said these "demonstrate China's rapid shift away from bilateral loans to public market funding". ^ top ^
US officials push for sanctions on China over oil purchases from Iran (SCMP)
2019-07-12
Senior administration officials now agree that China defied US sanctions when it imported more than a million barrels of crude oil from Iran last month. But they are grappling with whether – and how – to hit back, according to three US officials. The US State Department had considered issuing a waiver allowing Chinese companies to receive Iranian oil as payment in kind for their investment in an Iranian oilfield, but that idea has been abandoned. China hawks on the National Security Council are now pushing for the US to impose secondary sanctions on Chinese entities, a move that would complicate trade talks between the two countries and further strain the relationship. The Trump administration has been pushing to reduce Iran's oil exports to zero as part of its policy of "maximum pressure" on Tehran amid the worsening stand-off over Iran's nuclear programme. It has had some success in persuading several of Iran's largest consumers – India, Japan, South Korea and Turkey – to curb their purchases. But Beijing is a tougher customer. In June, a tanker carrying up to a million barrels of Iranian oil docked near the Chinese port city of Qingdao, drawing complaints from Republican lawmakers, who demanded the Trump administration pressure China to stop. China has also reportedly welcomed a second batch of Iranian oil since its previous waiver expired in May – this one a two-million barrel shipment that docked in Tianjin. China's continuing defiance would seem to undercut the Trump administration's claim that its efforts to squeeze Iran are working. In a recent speech, national security adviser John Bolton announced that "all significant reduction exceptions on Iranian oil sales have gone to zero". The internal dispute over how best to pressure Beijing comes as Iran declares it has enriched uranium behind the limits proscribed in its July 2015 agreement with major world powers, including the United States. The announcement has set off a flurry of diplomatic activity, with European countries scrambling in recent days to convince Iran to return to the deal's constraints, and US President Donald Trump warning Iran to "be careful". The United States withdrew last year from the nuclear deal with Iran, formally known as the Joint Comprehensive Plan of Action, but has yet to find a diplomatic path forward as tensions increase. Trump ordered military strikes after Iran shot down a US drone, only to call it off at the last minute. The administration has demanded that Iran comply with the terms of the JCPOA, even though Trump has repeatedly slammed it as "the worst deal in history". His aides, meanwhile, have struggled to explain how they intend to compel or induce Iran to engage in negotiations for a deal to replace it – beyond adding still more pressure. At an emergency meeting of the International Atomic Energy Agency in Vienna on Wednesday, which ended inconclusively, US officials accused Iran of "nuclear extortion" and threatened to impose a new round of sanctions. "The special meeting of the Board of Governors ended without any results for America," boasted Kazem Gharibabadi, Iran's ambassador to the IAEA, following the meeting. Late on Wednesday, Trump said in a tweet that "[s]anctions will soon be increased, substantially" – but did not specify what Iran might need to do to avoid that fate. Nor is it clear what the administration would consider acceptable concessions on Iran's part. Secretary of State Mike Pompeo has outlined 12 conditions Tehran must meet as part of any US-Iran talks, but many Iran analysts consider them politically impossible for Iranian leaders to accept – and Trump has at times brushed them aside, offering to talk with Iranian leaders without preconditions. Iran's supreme leader, Ayatollah Ali Khamenei, has likened the idea to "drinking poison." Meanwhile, the US is vowing to keep tightening the screws on Iran. In his July 7 speech, Bolton said: "We will continue to increase the pressure on the Iranian regime until it abandons its nuclear weapons programmes, and ends its violent activities across the Middle East, including conducting and supporting terrorism around the world." ^ top ^
China poses top threat for decades ahead, says General Mark Milley, Donald Trump's pick to head Joint Chiefs of Staff (SCMP)
2019-07-12
China may remain the "primary threat" to the US military for as long as a century after learning how to fight more effectively by watching American wars in the Middle East, US President Donald Trump's nominee to lead the Joint Chiefs of Staff said. "China went to school on us," General Mark Milley said in response to lawmakers' questions during his confirmation hearing on Thursday before the Senate Armed Services Committee. "They watched us very closely in the first Gulf War, the second Gulf War. They watched our capabilities and in many, many ways they have mimicked those, and they have adopted many of the doctrines and organisations." Evolving threats from China and Russia are cited as the primary challenges in the current US defence strategy, supplanting the "war on terrorism" as the top priority. China, with the world's second largest economy, is making major investments in military capabilities to challenge America's post-World War II dominance, especially in the Asia-Pacific region. The US this month denounced Chinese anti-ship missile tests in the disputed South China Sea, underscoring the continued strategic tensions between the two Pacific powers even as they try to restart trade talks. Ties between the countries have been strained since May, when Trump hiked tariffs after accusing Beijing of reneging on commitments in trade negotiations. "China is improving their military very, very rapidly in space, air, cyber, maritime, land domains," said Milley, who said the US needs to make sure that "we do not lose our advantages that we have relative to other countries, specifically relative to China". But he added, "China is not an enemy. I want to make that clear. They are an adversary." ^ top ^
Continuity marks EU-China relations (China Daily)
2019-07-12
The new European Union leadership is unlikely to change the current trend in EU-China relations, which are based on a pragmatic mix of cooperation and competition. At the same time, the leaders will have to give priority to a number of pressing domestic concerns. Ursula von der Leyen, the German defense minister nominated to head the European Commission, has been a senior member of German Chancellor Angela Merkel's Cabinet for over a decade, and has visited China on numerous occasions. Last year, she delivered a speech at the People's Liberation Army military academy, setting out her views on the importance of taking a holistic view of security policy. She also gave an interview, saying China was "clever" in pursuing its interests toward the EU arguing that the EU had to ensure it was united in dealing with China, Russia and the United States. Charles Michel, the outgoing Belgian prime minister who takes over as president of the European Council, has considerable experience in finding compromises between the competing political parties in his own country. This political skill was evident in another Belgian, Herman van Rompuy, who was the first president of the European Council. Michel has hosted Premier Li Keqiang no less than three times in the past four years as he has sought to develop closer ties between Belgium and China. Josep Borrel, the proposed new EU foreign policy chief, is an experienced politician, too, who was president of the European Parliament from 2004 to 2007. In an interview before attending the Second Belt and Road Forum for International Cooperation in April, he said that China's flagship initiative was to be welcomed as long as key principles such as sustainability were respected. Referring to the European Commission paper that talked of China as a "systemic rival" in some areas, he said that "good friends are always able to talk frankly about their disagreements and reach compromises at the negotiating table". Borrel is more likely to have a troubled relationship with Washington as he has been critical of the US' withdrawal from the Iran nuclear deal and its overall approach to the Middle East. Christine Lagarde, who after being nominated to head the European Central Bank temporarily relinquished her functions as International Monetary Fund managing director, has been a frequent visitor to China, encouraging Beijing to play a more prominent role in global governance structures. She has been an outspoken critic of the trade war the US has launched against China, describing it as a "self-inflicted wound" damaging the world economy. And she has asked China to reduce industrial subsidies and be more transparent in its loans to developing countries, two key issues for the EU. The four nominees for the EU's top jobs form a balanced and highly experienced team. For the first time there will be a woman at the top of the EU's executive and the ECB. The nominees for the European Commission, and foreign policy chief, now have to be approved by the European Parliament, probably next week. Assuming von der Leyen secures a majority, she will then have to work with EU member states to fill the various portfolios. Already, there is much lobbying to secure the most influential positions such as trade, competition, agriculture and economic policy. Frans Timmermans, the Dutch socialist, and Margrethe Verstager, the Danish liberal, are already assured of the top vice-president roles. There is also much debate on a possible restructuring of the European Commission to achieve more policy coordination including toward China. As such, there could be a standing task force just for the EU's policy toward China. But apart from China and other foreign policy issues continuing to be of concern, the new EU leadership will also be confronted with pressing domestic issues that will take priority. These include seeking to improve links between the EU institutions and citizens. The perceived remoteness of the institutions and their indifference to the lives of ordinary Europeans were used by the populists in their campaign for the European Parliament. The results of the May elections produced a fragmented parliament, which have made coalition building more difficult than in the past. For example, EU leaders will now have to take into account the growing influence of the Greens, especially on climate change. Other domestic issues include reform of the eurozone, something that French President Emmanuel Macron has pushed for without much response from other partners. And although the number of refugees has dropped, there is still no EU-wide resolution on how to divide up the migrants who do make it to European countries. Finally, there is Brexit. The United Kingdom is due to leave the EU on Oct 31, the day before the new European Commission takes office. If the UK leaves without a deal, as the likely new prime minister, Boris Johnson, has threatened, then there will be chaos on both sides of the channel. But with or without a deal, the UK will have to negotiate new arrangements with the EU covering every policy field. This will be time-consuming and divert EU efforts to deal with other priorities, including China. ^ top ^
US charges Chinese software engineer Xudong Yao with stealing trade secrets from former American employer (SCMP)
2019-07-12
A Chinese software engineer has been indicted on charges of stealing American trade secrets from his former employer, the US government announced on Thursday – the second Chinese national in two months to be declared a fugitive by federal law enforcement officials. A grand jury charged Xudong Yao, also known as William Yao, with nine counts of theft of electronic files from a locomotive manufacturer based in Illinois, according to the indictment, which was filed in December 2017 but unsealed only this week. Yao, 57, is at large and believed to be in the country, prosecutors said. When Yao travelled from China to Chicago in November 2015, "he had in his possession the stolen trade secret information, including nine complete copies of the suburban Chicago company's control system source code and the systems specifications that explained how the code worked", the federal court for the Northern District of Illinois said in a statement. The indictment said that Yao, within weeks of being hired in August 2014 and through the first half of 2015, downloaded more than 3,000 electronic files containing his former employer's trade secrets, including "control system software source code designed to operate [the company's] locomotives". After Yao's employment was terminated in February 2015, he returned to China to begin working for a company based there that sells "automotive telematics service systems", according to the court document, which stops short of alleging that the defendant turned his former company's data over to the Chinese company. "Telematics" refers to a device that "merges telecommunications and informatics" and "includes anything from GPS systems to navigation systems", according to website Telematics.com. The US Justice Department said Yao's dismissal from the job in Illinois was not related to his alleged theft of trade secrets. Yao's US employer was not identified, nor did court documents explain why he returned to Chicago in November 2015, after starting his job in China in July 2015. The latest indictment follows a string of cases involving private or proprietary data transferred to China. In May, another US grand jury charged a Chinese national in a hacking campaign described by the Justice Department as "one of the worst data breaches in history", an effort that yielded the personal data of 78 million people. In that case, Wang Fujie and another person are alleged to have infiltrated the US-based computer systems of American health insurer Anthem and three other companies. Wang is also a fugitive on the FBI's most-wanted list. Last week, a federal grand jury in southern California found a Chinese-American electrical engineer, Shih Yi-chi, guilty of conspiring to gain unauthorised access to a protected computer and violating the International Emergency Economic Powers Act, a law barring unauthorised exports. Shih's lawyer, James Spertus, said his client, who had also been an adjunct professor of engineering at the University of California, Los Angeles, never sent semiconductors to China but had designed them himself for a legitimate research project. ^ top ^
Canada's foreign minister rips ex-ambassador to China for 'advising' Beijing on election (SCMP)
2019-07-12
Canada's foreign minister has lambasted the sacked ambassador to China for "advising" Chinese officials on the upcoming Canadian election, in response to details that emerged in an interview with the South China Morning Post earlier this week. Speaking to the media in London, Chrystia Freeland called it "highly inappropriate" for John McCallum to have told the Chinese Ministry of Foreign Affairs that continuing current Chinese policies would benefit Prime Minister Justin Trudeau's hardline rivals in the upcoming federal election. Freeland reiterated that McCallum's remarks did not reflect the view of the Canadian government, which asked McCallum to resign in January over his comments about Canada's detention of Meng Wanzhou, a top executive of Chinese telecoms giant Huawei Technologies. "I think it is highly inappropriate for any Canadian to be offering advice or opinions to any foreign government on how that government ought or ought not to behave to secure any particular election outcome," Ottawa's top diplomat told reporters. "Nor should any Canadian be advising any foreign government on which electoral outcome would be bad for that government," she said. The federal election is expected to be held by October 21. On Wednesday, McCallum told the Post that he had warned his former contacts at the Chinese ministry that "anything that is more negative against Canada will help the Conservatives, [who] are much less friendly to China than the current Liberals." On Canada's detention of Meng, who is free on bail, Freeland insisted that her nation was "acting purely in connection with the extradition treaty we have with the US". "We have not taken any political decision or political action in this case," she added. Freeland, who was in London to jointly organise a forum on press freedom with British foreign secretary Jeremy Hunt, said she and Hunt had discussed the case of the two Canadians whom Beijing has detained in a move seen as retaliation for Meng's arrest. China is holding two Canadians – businessman Michael Spavor, who worked in North Korea, and former diplomat Michael Kovrig – on spying allegations. A third Canadian was retried on drug smuggling charges and sentenced to life in prison. "We have brought together for Canada an unprecedented coalition of countries around the world and international partners to speak up on behalf of the detained Canadians," Freeland said. Australia, Britain, France, Germany, the Netherlands, Latvia, Lithuania, Estonia, Spain, Denmark and the US have joined Canada's call for the men's release. The European Union, Nato and the Group of Seven nations also echoed Canada's demands, Freeland said. She and Hunt also talked about Hong Kong's controversial extradition bill and the subsequent massive protests that have rocked the former British colony. China and Britain have been at loggerheads since Hunt warned Beijing last week not to respond to the protests with "repression". The Chinese foreign ministry accused both Hunt and Boris Johnson, his rival for the leadership of the ruling Conservative Party, of making "irresponsible" remarks and questioning whether they had coordinated their attacks. Asked if she was satisfied with Hong Kong Chief Executive Carrie Lam's recent declaration that the extradition bill "is dead", Freeland said: "We believe that the government of Hong Kong … needs to listen carefully to the voices of its citizens. We will continue to watch the situation very closely." ^ top ^
China ready to participate in triangular cooperation in UN peacekeeping operations: envoy (Xinhua)
2019-07-11
A Chinese UN envoy said Wednesday that China attaches great importance to and is ready to actively participate in triangular cooperation in UN peacekeeping operations. At a Security Council meeting on the triangular cooperation, namely between the UN Security Council, the troop/police-contributing countries (T/PCCs) and the UN Secretariat, Wu Haitao, China's deputy permanent representative to the United Nations, said China supports the Security Council in strengthening communication with T/PCCs and the secretariat, and working together to improve the effectiveness of peacekeeping operations. Moreover, he said, China would like to leverage its own advantages in the field of training, through strengthening coordination with the secretariat, to focus on helping developing troop-contributing countries to strengthen their capacity building. Noting that China is an important participant in UN peacekeeping operations, Wu said at present, more than 2,500 Chinese peacekeepers are implementing mandates in eight mission areas. China has already established a peacekeeping standby force of 8,000 troops and two standby peacekeeping police units, he added. Through concrete actions, China will continue to make its own contributions to enhancing the capacity of UN peacekeeping operations and honor its commitments to world peace, Wu said. At the meeting, UN Undersecretary-General for Peacekeeping Operations Jean-Pierre Lacroix said strong triangular cooperation is crucial for enhancing peacekeeping operations. The common work of the council, the T/PCCs and the secretariat, along with other stakeholders, will be key to ensuring continued progress, he said, adding the benefits of the triangular cooperation apply to the safety and security of the peacekeepers, as well as to the performance of the operations. ^ top ^
Italy, China pledge to deepen cooperation, support multilateralism (Xinhua)
2019-07-11
Italy and China held a round of high-level financial talks here on Wednesday, pledging to deepen their cooperation in the finance sector, and restating support for multilateral trade. Italian Minister of Economy and Finance Giovanni Tria and Chinese Finance Minister Liu Kun co-chaired the "First Italy-China Finance Dialogue", months after the signing in Rome of a Memorandum of Understanding (MoU) on the Belt and Road Initiative. The event was preceded by a financial forum involving key public and private stakeholders from both countries, with different panels of experts addressing topics ranging from world macro economics to global finance, from banking and insurance to investment. "Both sides reaffirm their commitment to deepen and broaden bilateral economic and financial relations," the two ministers said in a joint declaration after the dialogue. Both countries also welcome financial institutions from the other side "to enter their securities, insurance, wealth management including custody services, and futures markets, in line with the regulatory framework currently or prospectively in force," they added. In his opening address, Tria said trade between Italy and China has been following a constant upward trend in recent years. "Italian sales to China grew from about 9 billion euros (10.1 billion U.S. dollars) in 2010 to 13.2 billion euros in 2018, while our imports from China settled at about 30 billion euros," he said. "There is still a wide room for improvement, which ought to be explored," he stressed. Data from the Italian Finance Ministry and European Union (EU) statistical office Eurostat showed that trade between Italy and China exceeded 43 billion euros in 2018. Italy was China's fourth largest supplier from Europe in 2018, while China was the ninth destination market for Italian exports at global level, and the most important one in Asia. In the joint declaration, the two sides also explained that Italy would "welcome China's commitments to open-up the financial sector and its implementation of related measures, including allowing foreign business to own up to 51 percent of shares in securities, futures and life insurance joint ventures." On its part, China would "welcome Italy's participation in the opening-up process of its financial market." Three different memorandums of understanding were inked at the closure of the event - Italy's private banking group Unicredit and export insurance agency SACE each signed a deal with the Export-Import Bank of China, while Italy's insurance regulator INVASS signed a third one with the China Banking and Insurance Regulatory Commission (CBIRC). In the joint declaration, the two sides also agreed on "the first Panda Bond to be issued by a qualified Italian financial institution." Such "Panda bonds" would be issued by Italian authority in order to co-finance branches or subsidiaries of Italian firms with offices in China, according to information unveiled by Italy's state lender Cassa Depositi e Prestiti (CDP) in late March. Italy's CDP is owned by the Economy and Finance Ministry, with a stake of about 83 percent. Finally, both countries' finance ministers pledged "to uphold the rules-based international economic system, to support multilateralism in the multilateral trade system with the WTO (World Trade Organization) at its core, and to foster participation in the reform of the global economic governance with a view of promoting high-quality, strong, sustainable, balanced, and inclusive growth." ^ top ^
BRI evolves into global project, European nations eyeing opportunities (Global Times)
2019-07-10
Although it started mostly through cooperation with emerging markets, the China-proposed Belt and Road Initiative (BRI) is evolving into what one expert called "a worldwide project," as several European countries including Russia, Italy and France applauded the program. The maturity and expansion of the program won't be stopped by US protectionism. Instead, it would stimulate cooperation between China and other economies also pressured by the US, experts said. "The BRI is walking on a wider road. It has broken beyond the geographical concept where it originated," Zhou Rong, a senior research fellow at the Chongyang Institute for Financial Studies at the Renmin University of China, told the Global Times on Wednesday. A BRI China-Italy business investment matchmaking conference was held in Milan, Italy on Friday, where business representatives from both countries discussed the search for appropriate business investment opportunities under the BRI program, the Xinhua News Agency reported on Sunday. Italy was the first major European economy to join the BRI, which signed a BRI memorandum of understanding with China this March. Russia is also considering how to connect its major infrastructure projects with the BRI program. On Tuesday, the Chinese edition of Russia's Sputnik news agency cited Monkevich Vitaly Vikentievich, president of the Russian Asian Union of Industrialists and Entrepreneurs, as saying that the country's first privately invested highway called Meridian Highway will be helpful for implementing the BRI. Vikentievich said that the new highway will cut the cargo shipping cycle between China and Europe to 10 or 11 days. Currently, it takes about 45 days for goods to be shipped from China to Western Europe via the Suez Canal. A report recently released by the CCI Paris Ile-De-France also pointed out that China will "play its role as the main center of the world economy" as it organizes trade around the New Silk Road. It also noted that the BRI is a project with a strong economic dimension worth enlightening because it provides important opportunities illustrated by the various inter-company cooperation. According to the report, China's New Silk Road initiative has contributed to the development of cooperation between French and Chinese companies, including not only large enterprises but also small and medium-sized enterprises in industries such as maritime, rail and air transport and tourism. The report also noted that China's major transport infrastructure projects under the BRI contribute to the growth in market demand and raise global standards in the sector. "When BRI just started, some European countries didn't see many benefits of it. But now they are seeing what the program can bring them. For example, the active operation of the China-Europe Railway Express has caught many European countries, which have been relying more on sea transport, by surprise," Zhou said. "Also, for some European countries like Germany, their technologies and products are of good quality, but the prices aren't so good. They won't find many generous customers like China," Zhou noted, adding that in the future, the BRI will be a multi-faceted program with multiple partners and multiple cooperation methods. China's trade with countries and regions along the BRI route rose 16.3 percent year-on-year in 2018 to $1.3 trillion, while non-financial direct investment from Chinese companies into BRI economies rose 8.9 percent to $15.64 billion, data released by the Ministry of Commerce showed in January. The warming popularity of the BRI in the global community comes as protectionism, mainly initiated by the US, is sweeping the world. "I think it will speed up cooperation between China and countries that are also under pressure from the US," Li Chunding, a professor at the College of Economics and Management under the China Agricultural University, told the Global Times. According to Zhou, apart from trade protectionism, the US has not come up with any "active suggestions" like the BRI. "This is causing US prestige to drop," he commented. ^ top ^
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Country ramps up governance on climate change (China Daily)
2019-07-12
China will continue to make arduous efforts to honor its promise to have its carbon emissions peak by around 2030 and promote global climate governance in a more fair, reasonable and collaborative way, Premier Li Keqiang said. Li made the comment as he chaired a meeting on Tuesday of the State Council leading group on coping with climate change, conserving energy and cutting emissions. As the world's largest developing country, China will fulfill its pledges meet its emissions target by 2030, he said. The country is also willing to work with the international community in adhering to the principles of fairness as well as common but differentiated responsibilities. China will also safeguard the United Nations Framework Convention on Climate Change and the Paris climate agreement and work toward implementation, the premier said. China will coordinate economic and social development with its efforts to cope with climate change, save energy and cut carbon emissions. It will also further promote the refining and upgrading of its economic structure, he said. Li also highlighted the importance of continuing to build an ecologically sustainable society and taking decisive steps to prevent and control pollution so that China can continue to make its due contributions to coping with climate change. He called for greater efforts in energy saving and emissions reductions in key areas such as industry, transport and construction. The development of energy-saving and environmental protection industries will receive more support, and breakthroughs in key areas such as clean energy and low-carbon technologies will be encouraged, he said. Li also called for more efforts to strengthen pollution treatment facilities, and he underscored the importance of using pricing, taxation and green finance policies to bring about better results. The premier also called for efforts to refine laws and regulations in pollution control. President Xi Jinping and former US president Barack Obama announced in a joint statement during a meeting in Beijing in November 2014 that the two countries would reduce greenhouse gas output. China vowed to put a peak on its carbon dioxide emissions by around 2030, while the US pledged to bring national emissions to at least 26 percent below their 2005 levels by 2025. The pledges were also part of each country's national commitments related to the 2015 Paris climate agreement. ^ top ^
China's Anbang dismantling continues with new state-owned firm taking over insurance assets (SCMP)
2019-07-12
China's dismantling of the Anbang Insurance Group has continued with the newly established state-owned Dajia Insurance Group taking over its property and casualty insurance assets, the Chinese Banking and Insurance Regulatory Commission said on Thursday. Dajia is a joint venture between the China Insurance Security Fund, Sinopec Group and SAIC Motor, with a total investment of 20.36 billion yuan (US$3 billion), the Chinese Banking and Insurance Regulatory Commission (CBIRC) confirmed. It also said that after the completion of the restructuring, Anbang will not launch any new insurance businesses. Anbang's logo has been removed from its former headquarters in Beijing, and replaced by the new name Dajia logo. Vice-president Yao Dafeng, who was a top aide to jailed former chairman Wu Xiaohui, has been in temporary charge of the company but refused to comment on his future with the new entity when contacted by the South China Morning Post. Yao, though, is widely expected to leave now the takeover has been completed. Commercial conglomerate Anbang has been under state control for over a year after the government determined that the company was a risk to China's financial stability. In May 2018, former chairman Wu Xiaohui was sentenced to 18 years in prison after he was found guilty of fraud and embezzling more than US$12 billion. He also had assets worth 10.5 billion yuan (US$1.5 billion) confiscated by the government, according to the state-backed Xinhua News Agency. In August, the Shanghai High People's Court rejected Wu Xiaohui's appeal because "the evidence was solid and sufficient, the conviction was accurate, and the sentencing was appropriate". Founded in 2004 as a regional car insurance company, Anbang was a virtual unknown until it started aggressively purchasing insurers in countries including Belgium, the Netherlands, South Korea, and Canada in 2014. It also bought the Waldorf Astoria New York hotel from Blackstone for nearly US$2 billion in 2014. Wu Xiaohui, who married the granddaughter of former paramount leader Deng Xiaoping in 2004, is being held at Baoshan Prison in Shanghai, although he has not been seen by his family or lawyers for more than a year. ^ top ^
Beijing plays down Commerce Minister Zhong Shan's inclusion in latest US-China trade war talks (SCMP)
2019-07-11
The participation of China's Commerce Minister in the latest trade discussion with the United States was "normal", China's Ministry of Commerce said on Thursday, playing down the eye-catching change in Beijing's negotiating team. Zhong, 64, joined Vice-Premier Liu He's phone conversation with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin on Tuesday – the first phone call between top negotiators since President Xi Jinping and US counterpart Donald Trump agreed to resume discussions during their summit in Osaka on June 29. While Zhong had previously accompanied Xi at meetings with Trump in both Buenos Aires and Osaka, this was the first time that he had joined in direct conversations with US trade negotiators, a move that put him front and centre in the talks. At a press conference in Beijing, asked why Zhong was on board, Gao Feng, the ministry's spokesman, said it was "quite normal" as "the [Commerce] Ministry is in charge of trade negotiations". Gao did not explain why Zhong had not directly taken part in the previous 11 rounds of meetings between US and Chinese trade negotiators. Wang Shouwen, a vice-commerce minister, was a key aide to Liu in previous rounds of talks before the negotiations collapsed in early May. Zhong's emergence on the front line could bring a subtle change in the dynamic, since his presence would effectively double the number of key figures on China's side, to balance the two-person leadership on the US negotiating team of Lighthizer and Mnuchin. Zhong, who previously worked under Xi when the president was at the helm of Zhejiang province, is viewed as a hardliner who has strictly toed the party line during his public speeches. Dennis Wilder, a former China analyst at the Central Intelligence Agency, was quoted by The Washington Post as saying that Zhong's attendance "has to be seen as a loss of confidence in Liu He and the desire of the leadership to bring in someone more politically savvy". "I am sure his instructions are to get tougher with the US," Wilder added. Huo Jianguo, the former head of the Chinese Academy of International Trade and Economic Cooperation, a think tank under China's Ministry of Commerce, said there could be some overplaying of Zhong's addition to the trade talks. "He should be there as China's commerce minister, and this does not need any special explanation," Huo said. "It is really meaningless to speculate on that." The phone conversation this week resulted in little progress, according to the one-line statement from the Chinese side. The two sides did not agree on a future date for face-to-face negotiations, although White House economic adviser Larry Kudlow called the conversation "constructive". Gao did not provide specific information about the phone conversation at the press briefing, but said the two sides were trying to restart negotiations based on "mutual respect". "The trade negotiating teams from both countries are fulfilling the consensus reached by the state leaders in Osaka, and both are in close contact over arrangements for the next step," he said. Gao reiterated China's stance that Washington should remove all punitive tariffs imposed on Chinese products since the start of the trade war and treat Chinese companies such as Huawei Technologies in a fair manner. "China's position [in restarting trade talks] is consistent and clear. That is, [China's] core concerns must be addressed properly," he said. The South China Morning Post reported on Tuesday that Trump had pushed Xi at their Osaka summit to buy US farm products, but that Xi avoided making any concrete commitment. ^ top ^
China will not discriminate against foreign firms: commerce ministry (Xinhua)
2019-07-11
China will not oppress foreign companies or discriminate against them, and will resolutely protect their legitimate rights and interests, the Ministry of Commerce said Thursday. Responding to concerns over China's investment environment, Gao Feng, a spokesperson for the ministry, said that he has noticed reports that business confidence in some foreign firms in the country had been affected by the trade friction provoked by the U.S. side, with some worrying about retaliatory measures. "The Chinese government always attaches great importance to the utilization of foreign capital," Gao said. The country has recently introduced a number of measures to support the development of foreign-funded enterprises in China, including adopting the foreign investment law and reducing the negative list for foreign investment, he said. The ministry also held symposiums at different levels to hear suggestions of foreign firms and actively adopted rational proposals to help them tackle challenges, Gao said. "All these measures fully demonstrated that the determination of the Chinese government to support the development of foreign enterprises in China will not change," Gao said. The actually utilized foreign investment in China rose 7.2 percent from a year ago to reach 478.33 billion yuan (70.74 billion U.S. dollars) during the first half of this year, with a total of 20,131 new foreign-funded enterprises established, data from the ministry showed Thursday. In June alone, total foreign investment actually utilized climbed 8.5 percent year-on-year to 109.27 billion yuan. Gao said that the Chinese government would further open up the market, promote investment liberalization and facilitation, strengthen the protection of the rights and interests of foreign investors, and create a more stable, fair, transparent and predictable investment environment to provide better services to foreign firms, and continue to make China the most competitive destination for foreign investment. ^ top ^
China explores space technology to facilitate economic growth (People's Daily)
2019-07-11
China has sent over 200 satellites into space and will launch nearly 100 more by 2025, an official with the China National Space Administration said on July 9. In recent years, China has improved its space technologies and industries, which prepares the country to accelerate its space economy, said Yu Qi, deputy director of the International Cooperation Department of the China National Space Administration, at the World Geospatial Developers Conference held in Beijing July 9. Up to now, the Long March carrier rocket series has completed 307 missions, sending over 400 spacecrafts into target orbit. Last year, China's space launches hit a record high. 39 launch missions were carried out, accounting for more than one-third of the world's total. China also launched the Chang'e-4 probe last year, which made the first-ever soft landing on the far side of the moon. China's space technology is gradually maturing and expanding into more fields, contributing to the development of the national economy, Yu said. Thanks to the China-initiated high-resolution earth observation project in 2010, a high-resolution earth observation system based on collected data from China's Gaofen earth observation satellites was made possible. The satellites have provided data for more than 20 industries, including environmental protection, forestry, and agriculture industries. Yu said that China will launch the Gaofen-7 at the end of this year and then focus on the application of the system. ^ top ^
Xi highlights Party building in central Party, state institutions (Xinhua)
2019-07-09
Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, on Tuesday urged central Party and state institutions to become exemplary institutions which the CPC Central Committee trusts and people are satisfied with. Xi, also Chinese president and chairman of the Central Military Commission, told a meeting that central Party and state institutions should comprehensively improve the quality of Party building. Wang Huning, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and a member of the Secretariat of the CPC Central Committee, presided over the meeting. Zhao Leji, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and head of the Central Commission for Discipline Inspection of the CPC, and Han Zheng, also a member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier, attended the meeting. Central Party and state institutions should set the example and Party building in the institutions should be a priority with the Party practicing strict self-governance in every respect and carrying out self-reform, Xi said, stressing that notable achievements have been made by central Party and state institutions in Party building since the 18th CPC National Congress in late 2012. To take the lead in ensuring "two upholds" is the first and foremost task of enhancing Party building in central Party and state institutions, he said. "The institutions should actively respond to what the CPC Central Committee advocates, implement what it decides, and stop what it forbids," he said. Xi noted that central Party and state institutions should be in the forefront in theoretical study, and should apply their gains from the study in fulfilling their own duties and advancing the development of causes. Special training should be carried out among young cadres on consolidating their political theory, strengthening their political orientation, improving their political ability and guarding against political risks, he said. Calling for strong primary-level Party organizations of central Party and state institutions, he asked the institutions to work ceaselessly to improve conduct and enforce Party discipline, and resolutely eliminate the practice of formalities for formalities' sake and bureaucratism. The fine conduct of maintaining close ties with the people should be further promoted, and the comprehensive management and supervision of Party members and cadres should be strengthened so that they do not dare to, are unable to and have no desire to commit acts of corruption, according to Xi. Stressing that the relationship between having moral integrity and having a keen sense of responsibility must be properly handled, Xi said that officials should not use anti-corruption campaigns as an excuse for shirking responsibilities or refusing to perform duties. At the meeting, Wang Huning called for efforts to earnestly study and implement the spirit of Xi's speech to raise the quality of Party building in central Party and state institutions in an all-round way. ^ top ^
China issues new guideline to improve compulsory education (Xinhua)
2019-07-08
The Communist Party of China Central Committee and State Council Monday published a new guideline for advancing education reform and improving the quality of compulsory education. The guideline aims to develop an education system that will foster citizens with an all-round moral, intellectual, physical and aesthetic grounding, in addition to a hard-working spirit, according to the document. Efforts will be made in fostering comprehensive quality with firm faith, patriotism, integrity, broad knowledge and striving spirit, it said. Moral education and all-round development of students will be priorities and the efforts must cover every student in every school, it added. According to the guideline, compulsory education should emphasize the effectiveness of moral education with efforts on cultivating ideals and faith, core socialist values, China's fine traditional culture and mental health. The document stressed elevating intellectual grounding level to develop the cognitive ability and stimulate the sense of innovation of the students. It also called for strengthening physical education, enhancing aesthetic training with more art curriculums and activities, and encouraging students to participate in more physical work to boost their hard-working spirit. The guideline stressed the role of classroom teaching, calling for improved quality. Heuristic and interactive methods in teaching are encouraged to inspire students to think and ask questions. More information technology should be integrated into school teaching, it said, specifically calling for more free and high-quality educational resources in rural and remote areas. The guideline demands "high-quality and professional" teaching personnel, proposing more training to strengthen teachers' teaching fundamentals and work ethics, as well as improved salaries and benefits. School principals are asked to shoulder more responsibilities and play better roles in improving education quality. The guideline calls for deeper reform in key areas to create conditions for better education quality. National curriculum schemes issued by the central authority should not be replaced by local and school- based curriculum, said the guideline. Exam-free access to nearby primary and secondary schools should cover all school-age children, and schools are encouraged to promote the well-rounded development of students, the guideline said. The country will secure the fiscal investment for compulsory education and motivate schools with higher education quality to help ordinary schools to achieve balanced compulsory education, according to the guideline. It also demands strengthened Party leadership over compulsory education reform and more guidance to parents for better family education. ^ top ^
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| Shanghai |
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| Tibet |
Lawyers across nation visit Tibet, improve rule of law (Global Times)
2019-07-11
Government officials of Southwest China's Tibet Autonomous Region on Thursday welcomed a delegation of lawyers across China to offer legal aid and services, with hailing the effective promotion of the rule of law. A total 68 lawyers joined this year's delegation. One-hundred and fifty-two lawyers have participated in the legal support delegation over the past five years, Xiong Xuanguo, vice minister of justice, said at the launch ceremony on Thursday. The delegation would alleviate the shortage of grass-roots lawyers in the region, fulfill the legal service needs of people from different ethnic groups and better promote legal knowledge among them, Dan Ba, Tibet's department of justice chief, said at the ceremony, according to a press release the department sent to the Global Times. Such efforts will also improve the rule of law, enhancing ethnic unity, social stability and prosperity of the region, Dan Ba said at the ceremony in Lhasa. Sun Zhonghai, a lawyer from North China's Hebei Province who worked in Tibet's Konjo county for one year in 2018, told the Global Times that their mission was to popularize legal knowledge among local students, monks, factory workers and herders. Many locals did not know how to seek legal methods when they have conflicts or need legal assistance, Sun noted. Volunteer lawyers also offer free legal aid to disadvantaged groups, such as migrant workers seeking to claim back salaries. Volunteers have offered legal aid to disadvantaged groups in more than 8,300 cases over the past five years, provided consultancy to 150,000 people and drafted more than 20,000 legal documents for people, according to Xiong. Sun also pointed out that the region is in urgent need of training legal experts who know both Putonghua and Tibetan, and they also needed talented people who can be stationed there in the long term, "because legal volunteers just always leave after a certain time period." The Tibet Autonomous Region now has 343 lawyers and 49 law firms, while 74 counties do not have a lawyer, according to data released by the Ministry of Justice. Lawyers from Beijing have trained more than 3,200 local lawyers for Tibet and other provinces and regions in western China that are short of legal professionals, according to Beijing municipal bureau of justice. ^ top ^
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| Xinjiang |
China refutes joint letter criticizing Xinjiang policies (Xinhua)
2019-07-11
China on Thursday refuted a letter, jointly signed by 22 nations, criticizing China's policy in Xinjiang Uygur Autonomous Region. The letter, addressed to the United Nations High Commissioner for Human Rights, disregards the facts, Foreign Ministry spokesperson Geng Shuang told a press briefing. "It has slandered and smeared China with unwarranted accusations, flagrantly politicized human rights issues and grossly interfered in China's internal affairs," Geng said. The Chinese side has lodged solemn representations with the countries, Geng said, urging the relevant countries to respect the facts, abandon prejudice, abide by the purposes and principles of the UN Charter, and stop politicizing human rights issues and using the issue of Xinjiang to interfere in China's internal affairs. Geng stressed that Xinjiang issues were totally China's internal affairs, which were related to China's sovereignty, security and territorial integrity. "The Chinese government and Chinese people have the most say on Xinjiang issues and cannot be interfered by any country or external forces," he said. Geng said Xinjiang had not had a terrorist incident for more than two years due to a series of anti-terrorism and de-extremization measures, including the establishment of vocational education and training centers, and people of all ethnic groups had sincerely supported the government's policy. The Chinese side has invited a number of diplomats, media outlets, experts and scholars from various countries to visit Xinjiang and also sent invitations to the Office of UN High Commissioner for Human Rights, he said. "We welcome those who truly uphold the principles of objectivity and fairness to come to Xinjiang but firmly oppose any external forces interfering in China's internal affairs, undermining China's sovereignty and territorial integrity through Xinjiang issues," the spokesperson said. ^ top ^
Double standards hinder counter-terrorism work (Global Times)
2019-07-11
China issued on Thursday a stern response to countries which signed a joint letter to the UN criticizing China's policies in Xinjiang Uyghur Autonomous Region, with observers saying their criticism is based on groundless guesswork and double standards on human rights issues would hinder the global counter-terrorism work. Human Rights Watch released on Wednesday a joint letter signed by 22 countries at the UN's top human rights body, urging China to "end its mass arbitrary detentions and related violations against Muslims in the Xinjiang region." Chinese Foreign Ministry Spokesperson Geng Shuang said at a press briefing on Thursday that China strongly opposes the 22 countries that politicize human rights issues and urges these countries to abandon their biases and cease interference in China's domestic affairs on the pretext of Xinjiang-related issues. Geng called the accusations a disregard for the truth and groundless slander and attacks on China, and noted that China has invited members of the Office of the United Nations High Commissioner for Human Rights to visit Xinjiang. The 22 countries include 18 European countries, Japan, Canada, Australia and New Zealand. A source close to the Chinese delegation to the United Nationals Human Rights Council (UNHRC) told the Global Times that China is not the country under the Universal Periodic Review at the UN this time and the 22 countries may want to hype China's Xinjiang policies by releasing the joint letter now. China has invited many diplomats and foreign media reporters to Xinjiang and shown them the education and training centers, in the hope to help the international community get more information about what is really happening in Xinjiang, the source said. "The 22 countries, all developed ones, cannot represent the whole world. Security and stability is necessary for people to enjoy their human rights and the view suits the interests of the majority of society," Qian Jinyu, executive dean of the Human Rights Institution of Northwest University of Political Science and Law based in Shaanxi Province, told the Global Times. "Envoys who signed the joint letter have never been to Xinjiang. They have never talked to trainees in the education and vocational training centers, nor have they had a full picture of what is happening in Xinjiang. Their understanding of the training centers is based on biased reports," Qian said. He noted that there are three kinds of trainees in the centers - people who were incited, coerced or induced into participating in terrorist or extremist activities in circumstances that were not serious enough to constitute a crime; those who participated in terrorist or extremist activities that posed a real danger but did not cause actual harm; those who were convicted and received prison sentences for terrorist or extremist crimes and after serving their sentences, have been assessed as still posing a potential threat to society. "From this we can see that launching training centers is not 'arbitrary detention' of any ethnic group, but is aimed at helping those who need help to get rid of the influence of extremism and return to normal life," Qian said. Mijiti Mermoti, principal of an education and vocational training center in Kashi, said that the training center does not target any particular ethnic group or religion. The Global Times reporter met Paher Tursun at a training center in Shule county in Xinjiang's Hotan Prefecture. Tursun said that he is not a Muslim. He was sent to the center because out of curiosity, he watched some videos that spread extremism and shared them with his friends. "These foreign envoys' criticism of China's Xinjiang policies is based on groundless guesswork and fake news spread by some Western media. The double standards held by some Western countries have become the biggest obstacles for the global counter-terrorism work," Li Wei, a counter-terrorism expert at the China Institute of Contemporary International Relations in Beijing, told the Global Times on Thursday. Recent terrorist attacks that happened in developed countries, including a gun rampage in New Zealand in March, in which a right-wing gunman attacked two mosques and killed 51, showed that some developed countries are facing problems in dealing with immigrants and cope with terrorism threats in their own countries, Li said. "Instead of focusing on solving their own problems, they criticize China's policies in Xinjiang, which has helped bring stability and peace to the region and effectively protect local residents' rights to safe life and development," Li said. The joint letter and the continuing criticism of China's Xinjiang policies show that some developed countries hope developing countries remain in turmoil and stagnation on development, which would fit the developed countries' interests. And this is an inhumane practice, Li said. On the sidelines of the 41th session of the UNHRC, China invited people from Xinjiang and envoys to the UN who had visited Xinjiang to share what they have experienced in Xinjiang. Many of them said that Xinjiang has prioritized protecting the interests of people of all ethnic groups and taken measures to fight terrorism and extremism, chinanews.com reported on July 3. Envoys from many countries, including Russia, Algeria, Laos, Serbia and Pakistan shared their experience in Xinjiang and praised the regional government's efforts on poverty alleviation work, protection of religious freedom and effect of counter-terrorism measures. The joint letter also called on "China to uphold its national laws and international obligations and to respect human rights and fundamental freedoms, including freedom of religion or belief." According to a white paper released by the State Council Information Office, the Xinjiang regional government has put priority on taking counter-terrorism measures and de-radicalization in accordance with laws, which include launching the education and vocational training centers. Trainees sign agreements with the education and training centers before going there. The agreement presented by one trainee reached by the Global Times showed it contains training goals and methods, criteria for program completion and assessment methods. Geng said at Thursday press briefing that "The Chinese government and people have the right to speak in terms of the Xinjiang policies. In the face of terrorist and extremist threats, Xinjiang has taken a series of measures, including the establishment of training centers, which help improve the security in the region." There has been no violent attack in Xinjiang for more than two years, and local residents' sense of security and happiness has greatly improved. And they sincerely support the government's measures, Geng added. Traditions of religious people in Xinjiang have been given full respect. For example, residents in Xinjiang are given one day off to celebrate the Eid al-Fitr on June 5. For those self-proclaimed victims, who said they "escaped" from the training centers and told their stories to some Western media, the Chinese government has confirmed that they fabricated their stories. If the training centers are really "concentration camps" as they described, how could they manage to escape from the "strict surveillance" of the government? There are many loopholes in their stories which some Western media choose not to double check, experts said. People who live in Xinjiang should have the right to say whether they are happy, not those who have other political purposes or seek personal gains under the guise of caring for Xinjiang residents, they said. ^ top ^
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| Hongkong |
Hongkongers in US launch campaign urging American politicians to support bill on city's democracy and rights (HKFP)
2019-07-12
Hong Kong people living in the US have launched a campaign urging American politicians to support a draft law on the city's human rights and democracy as soon as possible. Last month, US Representative Jim McGovern and Senator Marco Rubio introduced the Hong Kong Human Rights and Democracy Act of 2019 – a new version of the previously submitted bill – to the House of Representatives and the Senate. The campaign, launched on Tuesday, involves sending 400 letters to top US politicians asking them to co-sponsor the bill. As of Thursday, 259 letters had been sent out. US residents as well as Americans overseas – who are registered as voters – can participate in the campaign. The campaign is endorsed by groups including the Friends of Hong Kong and Macau of Boston, Nor Cal Hong Kong Club, and NY4HK, among others. Charles Lam of the Hong Kong Forum in Los Angeles told HKFP that when the bill was first introduced in 2017, there were only a handful of sponsors. The latest version introduced last month has eight co-sponsors in the Senate and nine in the House. In comparison, the Uyghur Human Rights Policy Act of 2019 – which responded to the human rights situation in China's Xinjiang – had 39 senators and 84 congresspeople on board when it was introduced earlier this year. "We hope that by having more sponsors, it will catch the attention of the subcommittees to bring it [onto] their agenda," Lam said. The Hong Kong Human Rights and Democracy Act of 2019 will require the US Secretary of State to assess Hong Kong's autonomy annually to justify special treatment afforded to the city, under the US-Hong Kong Policy Act of 1992. If passed, the bill will impose penalties upon Hong Kong and mainland China officials who suppress basic freedoms in Hong Kong, meaning their US-based assets will be frozen and they will be denied entry into the US. The bill aims at declaring that it is the US' policy to support "a genuine democratic option to freely and fairly nominate and elect the Chief Executive" and the establishment of "open and direct democratic elections" of the Legislative Council by 2020. The bill also states that if a national security law harming human rights is enacted in Hong Kong, the US government should take action required under the US-Hong Kong Policy Act, meaning potential suspension of Hong Kong's special trade status. Meanwhile, Hong Kong media mogul Jimmy Lai has met with National Security Adviser John Bolton in Washington DC. Lai also met with US Senators Ted Cruz, Cory Gardner and Rick Scott, according to Bloomberg. The meetings came after the pro-democracy Apple Daily founder met with US Vice President Mike Pence and Secretary of State Mike Pompeo earlier this week to discuss the extradition bill and Hong Kong's human rights. The Chinese Foreign Ministry in Hong Kong has issued a statement criticising both Lai and the US side. ^ top ^
Central government backs Hong Kong chief (Global Times)
2019-07-11
The liaison office for China's central government in Hong Kong on Thursday voiced its firm support for the city's chief executive Carrie Lam Cheng Yuet-ngor, the Hong Kong police and those Hongkongers who aired their demands through reasonable and peaceful means. Wang Zhimin, director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region (HKSAR), delivered a speech to about 700 participants from 20 different groups of Hong Kong Thursday, saying that "the rule of law and stability are extremely important… Chief Executive Lam Cheng has never eluded difficulties and tough works in her governance… She has led her team to push a series of measures in innovation, sci-tech, land policy and education, which solved many deep problems that related to the interests of most residents. The Hong Kong people would have a stronger sense of gain and happiness over the next few years after the policies were implemented, Wang noted. On the struggle over the extradition law amendment bill, Wang noted that a few protests took place recently and most Hong Kong residents expressed their demands through peaceful and reasonable ways, which showed the inclusiveness and civilization of Hong Kong society. However, Wang also pointed out that violent incidents by radical extremists, such as the storming of the Legislative Council, also occurred and shocked people inside and outside of China. "A series of these incidents have harmed the normal order of the city and impacted the daily lives of the people, and trampled the rule of law in Hong Kong… They brought an existential threat to Hong Kong's prosperity, stability and social civilization," he said. ^ top ^
Hong Kong's summer of dissent continues with more protests planned for weekend (HKFP)
2019-07-11
A new series of events and demonstrations are set to take place in Hong Kong this week, after the latest protest against the controversial extradition bill attracted hundreds of thousands last Sunday. This Sunday, a march will be held in Shatin at 3:30pm. According to organisers, the Shatin Commons community group, protesters will ask for a complete withdrawal of the extradition bill, the unconditional release of all arrested protesters, the formation of an independent commission of inquiry into police behaviour, as well as universal suffrage. They will also support a motion to be discussed at the Shatin District Council against the extradition bill, and condemn the "violent clearance" of the protests in Kowloon last Sunday. Tobias Leung, the convener of Shatin Commons who applied for a letter of no objection from the police, told HKFP that they applied for the letter expecting 1,000 people to march. However, they expect 10,000 to turn up after last Sunday's rally attracted 230,000, according to organisers. The tentative route will take demonstrators from Chui Tin Street Soccer Pitch in Tai Wai to the Sha Tin Government Offices. Leung said the office had disqualified up to five pro-democracy candidates in past elections. "As we fight for universal suffrage, we need to secure Hong Kong people's basic political rights," Leung said. After the march, Lost In the Fumes, a documentary about jailed activist Edward Leung, will be screened outside the Sha Tin Town Hall at 8pm. Spurred by the momentum of the anti-extradition movement, protesters are also calling for a "reclaim Sheung Shui" rally on Saturday targeting parallel traders in the area. The North District Parallel Imports Concern Group, who helped organised the demonstration, said it will be peaceful. The group said that – as of January – there were 462 shops in the Sheung Shui area which were mostly serving mainland tourists. It represents a sharp increase compared to 142 in 2013, with some residents concerned that it harms the number of choices available for daily grocery shopping. Although it has yet to receive official approval from the police, organisers said they will start from the basketball court of the North District Sports Ground at 3:30pm Saturday. Meanwhile, a group of individuals said on the popular LIHKG forum that they were planning to march on July 28 from Tseung Kwan O's Po Tsui Park to the nearby Hong Kong Velodrome Park, via Tseung Kwan O Police Station and government complex. Details are being discussed with the police. Pictures calling for people to take money out of the Bank of China from July 13 – should the government not respond to protesters' demands the day before – have also been widely shared, but details are scarce. There will be a memorial ceremony for a protester who fell to his death in an incident related to the extradition law protests. A public farewell ceremony will be held for Marco Leung on Thursday between 2pm and 10pm at Java Road Playground in North Point. ^ top ^
Plan to let Hong Kong people join Chinese army shelved in wake of extradition bill crisis (SCMP)
2019-07-11
The continuing controversy over the Hong Kong government's controversial extradition bill has left plans to make it easier for local residents to join the Chinese military and government in limbo, sources with knowledge of Beijing's policies towards the city said. "Given the current political situation, discussions like enrolling Hong Kong people into the army and the civil service system are going to be very difficult to carry on at the moment," an official who is close to Beijing policymakers responsible for Hong Kong's affairs told the South China Morning Post. Last year, the Ministry of Defence confirmed that it was studying a proposal by political parties in Hong Kong to allow local residents to join the People's Liberation Army. Around six months later, it was revealed that there were also plans to allow people from the city to apply for government jobs within the Greater Bay Area. But the mistrust caused by the mass protests and sometimes violent confrontations over the plan to allow criminal extraditions to the mainland means these steps are now unlikely to move forward – at least for the next few years – according to a number of officials and analysts. "There would be a substantial number of people who would want to join the civil service and the army … but for now, how do we go on? "How can we get other places [in the Greater Bay Area] to feel confident about working with Hong Kong? Things like this have just become too sensitive," said an official who was not authorised to speak publicly on the issue. Macau-based military expert Antony Wong Dong said the current political climate in Hong Kong meant the idea was unlikely to be pushed forward in the next few years. "The central government would want to push [it], but there are also fears that recruits from Hong Kong would bring a negative influence and 'unhealthy [political] ideas' into the army," Wong said. "Beijing will certainly be more concerned now with the mass protests in Hong Kong." Professor Zeng Zhiping, an expert on defence law at Soochow University's Wenzheng College in eastern China, was less worried about the possible negative influence if the People's Liberation Army opened its doors to Hong Kong recruits. "According to the current law, local governments are responsible for the recruitment of soldiers. As for Hong Kong, if this does happens, then the Hong Kong government will be responsible for conducting political background checks on the recruits," he said. "The PLA would not need to worry about rebellious youths from Hong Kong infiltrating the army and causing trouble. Recruits [from Hong Kong] would be sent to different units for training as soon as they are enrolled and it would be impossible for them to cause troubles." A military insider said Beijing was likely to make recruiting Hongkongers for the PLA a longer-term goal. "It is just a matter of time when Hong Kong people will be allowed to join the army as this is an irreversible trend. "However, following the Occupy movement and recent anti-extradition bill protests, it will be necessary to carry out more stringent background checks," the insider said, adding that the PLA was likely to keep the recruitment on a smaller scale. Leung Che-cheung, a member of the Legislative Council from the pro-establishment Democratic Alliance for the Betterment (DAB) and Progress of Hong Kong, said the party had not included the PLA recruitment plans in its recommendations to Beijing this year because the issue was too complicated and the political climate had changed. The DAB had previously included the plan in its suggestions to the central government in both 2015 and last year. "It's a really complicated issue so we dropped [the proposal] this year. It involves layers of discussions under one country, two systems, Hong Kong citizenship, and also public opinion," Leung said. "Considering the current situation in Hong Kong, even if the idea is proposed, there may not be many people who would want to join." Lau Siu-kai, a vice-chairman of the semi-official Chinese Association of Hong Kong and Macau Studies, said the PLA was not in hurry to recruit Hong Kong residents. "There is no urgency for asking Hong Kong people to serve in the military or join the civil service. This has always been a symbolic gesture," Lau said. "I don't think Beijing expects a lot of people would do it, and its main objective is about promoting the narrative of nationalism and integration [of Hong Kong with the mainland]." ^ top ^
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| Taiwan |
Taiwan President Tsai Ing-wen heads to US, warning of threat from 'overseas forces' (SCMP)
2019-07-11
Taiwanese President Tsai Ing-wen left for a trip to the United States and the Caribbean on Thursday, warning that democracy must be defended and Taiwan faced threats from "overseas forces", in a veiled reference to mainland China. Beijing, which claims the self-ruled and democratic Taiwan as its own and views the island as a wayward province, has called on the US not to allow Tsai to transit there on her overseas tour. Tsai's time in the US will be unusually long, as normally she spends just a night at a time on transit stops. She is spending four nights there in total, two nights on her way to visit four Caribbean allies and two nights on the way back. Tsai will go to New York on her way there, and then is expected to stop in Denver on the way back. The US State Department has said there has been no change in the US' one-China policy, under which Washington officially recognises Beijing and not Taipei, while assisting Taiwan. Speaking at Taipei's main international airport at Taoyuan, Tsai said she would share the values of freedom and transparency with Taiwan's allies, and was looking forward to finding more international space for Taiwan. "Our democracy has not come easily, and is now facing threats and infiltration from overseas forces," Tsai said, without naming any such force. "These challenges are also common challenges faced by democracies all over the world. We will work with countries with similar ideas to ensure the stability of the democratic system." Tsai, who faces re-election in January, has repeatedly called for international support to defend Taiwan's democracy in the face of the mainland's threats. Beijing has regularly sent military aircraft and ships to circle Taiwan on drills in the past few years. Tsai last went to the United States in March, stopping over in Hawaii at the end of a Pacific tour. Seeking to bolster Taiwan's defences, the US this week approved an arms sale worth an estimated US$2.2 billion to Taiwan, despite Beijing's criticism of the deal. Taipei has been trying to shore up its diplomatic alliances amid pressure from mainland China, which has been whittling down its few remaining diplomatic allies, especially in the Caribbean and Latin America. Aside from the United States, Tsai will be visiting St Vincent and the Grenadines, St Lucia, St Kitts and Nevis, and Haiti. Taipei now has formal ties with only 17 countries, almost all small nations in Central America and the Pacific. ^ top ^
Arms sales to Taiwan a blow to Sino-US ties (China Daily)
2019-07-11
By approving the potential sale of arms worth $2.2 billion to Taiwan, the US State Department has not only further strained cross-Straits relations, it is also trying Beijing's patience. And by passing a series of acts and resolutions related to Taiwan this year, the US Congress has dealt a serious blow to Sino-US relations, as well as undermined peace and stability across the Straits. The US House of Representatives enacted the Taiwan Assurance Act of 2019 and passed a resolution reaffirming the US' commitment to Taiwan on May 7, which essentially means the US would sell arms to the island regularly and back its participation in international organizations. That the US has continued to meddle in Taiwan affairs shows it is desperate to use the "Taiwan card" to contain the Chinese mainland. The US believes that by consolidating its relationship with Taiwan authorities through acts and resolutions, it can further integrate the island into its "Indo-Pacific" strategy to contain the mainland, the biggest rival in Washington's eyes thanks, in part, to the trade disputes between them. Yet the ruling Democratic Progressive Party in Taiwan, which favors an independent entity for the island, is willing to act as the cat's paw for the US in exchange for security protection and political cover. Which is nothing but wishful thinking on the part of Taiwan authorities, because there is little chance of Washington getting involved in a war across the Straits if the DPP indeed tries to split the country. Following the DPP's ideology of making Taiwan an independent entity, the island leader Tsai Ing-wen and other DPP officials have intensified their pro-independence activities, especially in the fields of education, culture and administration, since she took office in 2016. In fact, Lai Ching-te, Tsai's rival in the island's next leadership election in January 2020, openly pitched himself as a worker for "Taiwan independence" before stepping down as the head of the executive body. To send a clear message against secessionism to the Tsai administration and give a strong warning to separatist forces on the island, the mainland has held military exercises in the Taiwan Straits and sent warplanes and warships around the island. But at the instigation of the US administration, thanks to its acts and resolutions and promise of support, the DPP could try to further push forward its "pro-independence" agenda and cross the red line and worsen the situation across the Straits. Therefore, the US should review its policy and stop selling dreams to the Taiwan authorities. The Taiwan Assurance Act of 2019 is a serious violation of the one China principle and the three joint communiqués, which the Sino-US relationship is built on. The US' interference in China's internal affairs will not only endanger one of the world's most important bilateral ties and jeopardize peace and stability in the Asia-Pacific region, but also increase the possibility of the mainland using whatever means necessary to realize the final reunification of the island with the motherland. The US has frequently meddled in Taiwan affairs, which has significantly undermined Sino-US ties, creating worries and risks across the Straits. But since China is committed to safeguarding its sovereignty and territorial integrity, and achieving national reunification, the US should not hope to succeed in its design of splitting the country by leading the island authorities down the garden path. ^ top ^
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| Economy |
Chinese companies' cash heading for Europe, North America drops to five-year low as capital controls, scrutiny abroad puts the brakes on investment (SCMP)
2019-07-11
Chinese companies invested just US$12.3 billion in the advanced economies of Europe and North America in the first half of the year, the lowest amount since 2014 and almost a fifth less than last year, according to the law firm Baker McKenzie. The decline has been almost entirely attributed to state-owned firms turning their backs on both regions, a research report the firm released on Thursday found. Private companies accounted for 94 per cent of the total spent in the first six months. China's overseas spending, once rampant, has been curbed drastically by the introduction of strict capital controls intended to stop money leaving the country. At the same time Chinese companies have faced increasingly tough scrutiny abroad, particularly under US President Donald Trump's administration, with many major deals being rejected on national security grounds. North America did see an overall increase of 19 per cent in Chinese investment, but it was largely because it followed 2018's exceptionally low base. Moreover, the increase was entirely in the US, as investment in Canada remained flat. By the end of June, there had been US$3.3 billion in foreign direct investment (FDI) transactions made by Chinese firms in North America and US$9 billion in Europe, the report showed. It was a far cry from the same period in 2017, when Chinese investment peaked in Europe at US$53.9 billion, and the second half of 2016 when US$28.4 billion poured into North America. Activity quickly levelled off in both regions after two mega deals kicked off the year. They were the Chinese sportswear maker Anta's US$5.2 billion acquisition of Finnish sports brand Amer, and the textile giant Shandong Ruyi's purchase of Invista's apparel and advanced textiles business for an estimated US$1.6 billion, according to the report. Both Anta and Ruyi are privately owned companies headquartered in China. "As capital controls remain firmly in place at home amid macroeconomic pressures and political and regulatory scrutiny abroad at elevated levels," the report found, North America and Europe are not the only regions seeing declines in Chinese investment. China's global outbound investment continued to fall in the first half of the year, with newly announced merger and acquisition transactions down 60 per cent to US$20 billion, it said. Direct investment by state-owned companies in the EU and North America has dropped significantly. In Europe, such investment contributed to just 6 per cent of the total, having accounting for more than half of all Chinese investment in the previous five years. In North America, the share of state-owned investment has dropped to 8 per cent in the first six months, the report said. The plunge in FDI backed by state firms reflected Beijing's tight grip on foreign spending to safeguard the country's foreign exchange reserves – a safebox that is key to China's confidence in its trade war with the US, said Iris Pang, an economist at ING Bank NV in Hong Kong. "Probably the state companies received window guidance that asked them to slow down the cross-border investment projects, because the FX reserve level has always been considered as a confidence barometer," she said. ^ top ^
Central bank unveils plan on digital currency (China Daily)
2019-07-09
The central bank is accelerating its efforts to introduce a government-backed digital currency, aiming at securing a cutting-edge position in the global cryptocurrency race, a senior official said on Monday. The People's Bank of China, the central bank, is organizing market-oriented institutions to jointly research and develop a central bank digital currency and the program has been approved by the State Council, the country's Cabinet, Wang Xin, director of the PBOC Research Bureau, said at a seminar at Peking University. The central bank has been watching the emergence of a new global digital currency called Libra, introduced by Facebook, the world's biggest social network company, on June 18. "We will keep a close eye on the new global digital currency," said Wang, making the latest comment on Libra from the country's monetary authority. Unlike other cryptocurrencies, such as Bitcoin, Libra is described in a Facebook white paper as a currency "fully backed by a reserve of real assets". A basket of bank deposits and short-term government securities will be held in a Libra reserve to guarantee its value. Twenty-seven companies and entities have joined the Libra founder group, including the world's traditional payment giants Visa and Mastercard. Facebook has indicated it intends to establish a worldwide independent governance body, based in Geneva, aiming to ultimately include 100 members by the scheduled launch time in 2020. "From the government's perspective, we pay more attention to its influence on financial services, monetary policy and financial stability," Wang said. He said that if Libra can be successfully launched, it may challenge the existing United States dollar-centered international monetary system, a possibility that must be closely monitored. Huang Yiping, director of the Digital Finance Research Center of Peking University and a former member of the PBOC monetary committee, said the birth of Libra serves as an "alert" for China's digital currency innovators and regulators. Any role for Libra beyond the payment function could bring changes to the rules of the global monetary system, and regulators should pay close attention to that possibility, Huang said. The world's economies have yet to decide how to cope with the challenge by the Libra system, though accelerating the launch of their own digital currencies could be a counterbalance, according to Wang of the PBOC. Wang also said that the central bank digital currency could be a new monetary policy tool, or an investment asset that carries an interest rate to satisfy investors' demand for value. Wang's discussion of the matter indicates it might also be used as a reference for bank interest rates on deposits. "A digital currency issued by the central bank can improve the efficiency of monetary policy, and help to optimize the payment system," he said. Some experts suggested launching a Chinese version of Libra, using Facebook as a reference, to compete in the global cryptocurrency race, and they said the Chinese digital currency also could be used domestically. But "everything is just under discussion", the PBOC's Wang told China Daily. Li Zhenhua, executive director of the Ant Financial Research Institute, part of the Alibaba Group, said the market is worried about whether Libra will develop into a type of credit money. If that were to happen, it would challenge central banks' monetary sovereignty. Li said. Credit money is a future monetary claim, like an IOU. "We will improve international coordination and cooperation in digital finance, and to enhance global communication on Libra and CBDC. China will push forward the establishment of unified standards and regulatory rules," said Wang. The PBOC was one of the earliest central banks to start digital currency innovation. The program began in 2014, led by former governor Zhou Xiaochuan. China's monetary authority identifies the nature of digital currency as "a substitute for cash", rather than a speculative instrument, according to the central bank. Research work is led by the PBOC's Currency Gold and Silver Bureau. The department, primarily in charge of traditional currency management, is shifting to digital currency innovation because the use of cash is declining in China amid booming digital payment systems. Peking University launched a new program on Monday called Open Research Initiative of Digital Finance to provide a research platform for innovation in digital financial products. ^ top ^
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| DPRK |
US mulls suspending sanctions if North Korea agrees to denuclearisation, Yonhap reports (SCMP)
2019-07-11
The United States is considering the suspension of certain sanctions on North Korea if the hermit kingdom dismantles its main nuclear facility and freezes its entire nuclear programme, South Korea's Yonhap news agency said on Thursday. Citing a source close to the White House's deliberations on North Korea, Yonhap said the potential offer would see the suspension of United Nations Security Council sanctions restricting North Korea's exports of coal and textiles – a major source of income for the regime – for 12 to 18 months. "The White House, when working-level talks begin, wants to set the conditions whereby it can begin the process of North Korea's denuclearisation," the source was quoted as telling Yonhap and two other news outlets. The suspension of sanctions could be renewed if progress in denuclearisation "moves at a good pace" but would "snap back" if the North cheats in any way, he said. Professor Yang Moo-jin at Seoul's University of North Korea Studies said this idea was one of various propositions by policy experts to make a breakthrough with the stalled denuclearisation negotiations. If it works, the source said, the model could also be applied to facilities other than the main nuclear complex in Yongbyon and move in a step-by-step manner until the entire nuclear weapons programme is fully closed and all sanctions are lifted. "This is important, as it allows the US and the North to test their intentions and build trust, but in a way that furthers denuclearisation and sanctions relief," the source said. A failure to narrow differences over the scope of North Korea's denuclearisation and sanctions relief from Washington was the cause of the breakdown in the second summit between the North's leader Kim Jong-un and US President Donald Trump. "With the failure of Hanoi, they are mindful that being flexible, while at the same time making a strong offer to North Korea that tests its intentions while building trust, is important," the source said. "[The new model] does not give North Korea the amount of sanctions relief it wanted and asks a little more in return from the North." Trump walked out of the Hanoi summit without a deal after Kim asked for the removal of nearly all sanctions in return for Yongbyon's dismantlement. The US president told reporters at the time that only removing that facility wasn't enough because there were others, including a uranium enrichment plant, that the US knew about. Trump and Kim agreed to resume working-level talks to discuss the North's nuclear disarmament when they held a surprise meeting at the inter-Korean border last month. US Secretary of State Mike Pompeo said he expected these talks to resume in mid-July. The White House apparently wants to move the ball forward, even if it means offering several other concessions, the Yonhap source said. Verifying and inspecting Yongbyon's dismantlement as well as the nuclear freeze could be tricky, he said, noting the need for a detailed agreement. A freeze would mean not making any more fissile materials and warheads. If North Korea agrees to the dismantlement of Yongbyon and a complete nuclear freeze, the US is also considering signing a declaration formally ending the 1950-53 Korean war, according to the source. The conflict ended in an armistice, meaning the two sides are technically still at war today. In addition, the two countries would be willing to establish liaison offices in each other's capitals and set up a separate channel or office to coordinate the sustained recovery of American troops' remains from the North. "The White House is open to many ideas to incentivise the North to make what they call 'a critical first step' on denuclearisation," the Yonhap source said, adding that the first goal in the talks was to prove to the North that it could trust the US, and for Washington to show the hostile intent of both sides was in the past. Yang from the University of North Korea Studies said the US and South Korea had been considering different ideas to put on the table when negotiations with the North resume, but the none of these had been decided yet. Professor Kim Yong-hyun at Dongguk University, also located in the South Korean capital, said the US was showing greater flexibility in seeking to break the impasse as the North insisted negotiations should be phased and both sides should simultaneously carry out their own side of the agreements. Meanwhile, North Korea has made Kim its official head of state, Yonhap reported on Thursday, a promotion that formalises his position as the country's representative and is seen as possibly the country's diplomatic relations a boost. ^ top ^
Chinese vice premier stresses friendly communication, pragmatic cooperation with DPRK (Xinhua)
2019-07-11
Vice Premier Hu Chunhua on Thursday called on China and the Democratic People's Republic of Korea (DPRK) to promote friendly communication and pragmatic cooperation to better benefit the two countries and peoples. Hu, also a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, made the remarks at a banquet celebrating the 58th anniversary of the signing of the Treaty of Friendship, Cooperation and Mutual Assistance Between China and the DPRK. Hu said bilateral relations between China and the DPRK had gone through an extraordinary journey since the establishment of diplomatic ties 70 years ago. China stands ready to work with the DPRK to implement the important consensus reached by the two countries' leaders, strengthen exchanges of development experience, promote friendly communication and pragmatic cooperation to better benefit the two countries and the two peoples, as well as making positive contributions to regional peace, stability and prosperity, Hu said. The DPRK ambassador to China, Chi Jae Ryong, said the DPRK would work with China to carry forward the traditional friendship and enhance sound cooperation between the two countries in order to promote bilateral ties to a new high. ^ top ^
Son of South Korea's former foreign minister defects to the North, state media reports (SCMP)
2019-07-08
The son of the highest-profile South Korean ever to defect to North Korea has arrived in the North to permanently resettle, the country's state media said. If confirmed, it would be an unusual case of a South Korean defecting to the impoverished, authoritarian North. The state-run Uriminzokkiri website reported that Choe In-guk arrived in Pyongyang on Saturday to dedicate his life to Korean unification at the guidance of leader Kim Jong-un. The website published photos and footage showing Choe reading his arrival statement at Pyongyang's international airport. Choe is the son of former South Korean Foreign Minister Choe Dok-shin, who defected to the North in 1986 with his wife after political disputes with then-South Korean President Park Chung-hee. He died in 1989. South Korea's Unification Ministry said Choe was in North Korea without special permission from the Seoul government to visit the North. Ministry spokesman Lee Sang-min told reporters on Monday that authorities were trying to find out details about Choe's travel to North Korea. The two Koreas, split along the world's most heavily fortified border for about 70 years, bar their citizens from visiting each other's territory and exchanging phone calls, letters or emails without special permissions. Since the end of the 1950-53 Korean war, more than 30,000 North Koreans have fled to South Korea to avoid political repression and economic poverty, but it's highly unusual for South Koreans to go to North Korea to resettle. Before his death, the senior Choe held high-level posts in North Korea such as vice-chairman of the Committee for the Peaceful Reunification of the Fatherland, an agency dealing with relations with South Korea, and head of the Chondoist Chongu Party, a political group affiliated with a Korean native religion called "Chondo". His wife, Ryu Mi-yong, had also taken up a slew of high-profile jobs, including being a member of the presidium of the North's rubber-stamp parliament and chairwoman of the Central Committee of the Chondoist Chongu Party. When she died at the age of 95 in 2016, a public funeral was organised and her body was buried along with her husband's at Pyongyang's Patriotic Martyrs Cemetery. According to South Korea's Unification Ministry, Choe In-guk was allowed to make 12 authorised trips to North Korea since 2001 for events like visiting his parents' cemetery and attending a death anniversary for his mother. It wasn't immediately known how he went to North Korea, but South Korean media speculated he flew from Beijing with a North Korean government-issued visa. Before his latest trip to North Korea, Choe was a member of a "Chondo" church in South Korea and was engaged in inter-Korean engagement movements, South Korea's Yonhap News Agency reported, citing an unidentified church official. ^ top ^
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| Mongolia |
Chinese Vice President's visit to Mongolia begins (Montsame)
2019-07-11
Vice President of China Wang Qisan, who is paying visit to Mongolia at the invitation of Prime Minister U.Khurelsukh, arrived in Ulaanbaatar on July 10. On July 10, Vice President Wang Qisan held meetings with the Prime Minister and the Speaker of the State Great Khural, discussing issues of bilateral cooperation and joint projects being implemented within frames of the 70th anniversary of the establishment of diplomatic relations between Mongolia and China. At the meeting with Prime Minister, Mr. Wang Qisan expressed interest in mutually beneficial cooperation in politics, economy, humanity and inter-territorial cooperation. Vice President attended the signing ceremony of cooperation agreements between Erenhot city of Inner Mongolia and Zamyn-Uud soum of Dornogobi aimag, Darhan Muminggan United Banner of Baotou city of Inner Mongolia and Sainshand city of Dornogobi aimag. During his visit, Mr. Wang Qisan will visit the National Museum and attend the opening ceremony of Naadam festival. ^ top ^
Foreign Minister receives Vice Foreign Minister of China (Montsame)
2019-07-11
On July 10, Minister of Foreign Affairs D.Tsogtbaatar received Vice Foreign Minister of China Luo Zhaohui and exchanged views on bilateral relations and cooperation. The parties highlighted that the year of 2019 is full of mutual visits and events within the celebration of the 70th anniversary of bilateral diplomatic relations. The state visit of President Kh.Battulga to China in April at the invitation of his Chinese counterpart Xi Jinping and the successful participation in the second Belt and Road Forum for International Cooperation was an important step forward in bilateral relations and cooperation. The sides also emphasized the active relations between the Ministries of Foreign Affairs and successful implementation of 2019-2020 cooperation plan. Vice Foreign Minister of China Luo Zhaohui is in the delegation of Vice President Wang Qisan, who is on visit to Mongolia on July 10-12. ^ top ^
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Jennia Jin
Embassy of Switzerland
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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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