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

Der wöchentliche Presserückblick der Schweizer Botschaft in der VR China
The Weekly Press Review of the Swiss Embassy in the People's Republic of China
La revue de presse hebdomadaire de l'Ambassade de Suisse en RP de Chine
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  22-26.7.2019, No. 778  
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Switzerland

Healthcare businesses from Switzerland diagnose prospects in Chinese market (Global Times)
2019-07-18
To leverage its leading position in the healthcare industry, Switzerland has set sights on the Chinese market, which has a burgeoning middle class ready to loosen bulging purse strings to access advanced medical services. Top-notch Swiss health businesses are looking for wealth from health in the Chinese market. Exploris, which according to the company's website possesses artificial intelligence-based diagnostic and therapeutic solutions that have passed clinical studies, is one of them. "The Chinese market is very important for us because it's a huge market," Peter Ruff, CEO and founder of Swiss healthcare company Exploris, told the Global Times. Ruff finished his first tour of China earlier this month to dig out business opportunities. The tour, organized by the Swiss Embassy in China, selected 10 high-growth Swiss startups for an exclusive 10-day roadshow in the second largest economy. Ruff said China's development and the keenness of hospitals to seek new technologies impressed him during the tour. He believes that his company and Chinese hospitals will make a good match. "A lot of hospitals need help to reduce the waiting list and get better diagnostics at the primary stage. We could fit in very well with our tests and help them solve the problems and make better diagnosis," Ruff told the Global Times. "Our idea is to support the doctors with the information we get to help them make better decisions," he said. The visiting Swiss firms under the aegis of the Swiss embassy have come from industries including healthcare, music and technology to name a few. Visiting a roadshow event at the Swiss Embassy in Beijing, the Global Times reporter found eager Chinese investors throng the location to watch the presentations by company executives who spoke from a stage. After the presentations, the executives were approached by the prospective investors to explore opportunities. Investors scoured opportunities among healthcare companies, eyeing their favorites, even forming a short queue to share a word with the visiting executives. An investor who was waiting to talk to Marco Pisano, CEO of Lymphatica Medtech which develops medical devices for the treatment of lymphatic diseases, said that her mother suffered from a related illness and she was very interested in Lymphatica's technology. The technology, she said, will gain popularity in China. "I found many investors [who are] interested in [my company]. But interacting [with investors] is a process. Everything is still under discussion," Pisano told the Global Times. "There is a big demand in the Chinese market for a solution to this disease. And we are the first company developing such a solution. So our idea is that we can enter the Chinese market and be the first to provide the solution for people," he said. But entering the Chinese market comes with its share of challenges. Regulations require clinical trials to precede market entry. "We want to start it next year and then it will take two years of clinical trials. Then in 2022 or 2023, we will be able to enter the market," he said. In addition, to seek Chinese investment, they also need to find hospitals to work with for the clinical trials. While sounding optimistic about the future, he admitted many hurdles lie ahead. "We have the difficulty of finding the right person who can help us understand the market," he said. Pisano is now looking forward to cooperating with Chinese hospitals as well as companies with knowledge of selling medical devices, and also possibly manufacturing. He also wants to work with investors who can develop the market entry strategy for the Chinese market. Ruff told the Global Times he is not only looking for investors in the financial field, but also seeking collaboration with Chinese companies. He hopes to find Chinese companies that are able to provide the distribution channel so that they can get access to the clients. According to Ruff, the opportunity for Chinese investors in the healthcare industry is to "invest in a very advanced technology which is leading-edge." Since Switzerland formally endorsed the China-proposed Belt and Road Initiative (BRI) in April, the two nations have seen consolidating ties. "Joining the BRI is beneficial for Swiss companies. It will help us better introduce our products to China," Ruff said. Pisano stressed that under the BRI, there are many opportunities for cooperation between Chinese and Swiss companies in the health and medical care industry. He noted that Switzerland is the leader in healthcare technology and since an aging Chinese population is seeking premium healthcare services, there will be many possibilities of collaboration, which in turn are opportunities for Chinese investors. For Dorina Thiess, the opportunity goes beyond the human healthcare industry. Her company Piavita, which provides digital diagnostics for horses, also found favor with investors during this China tour. "There are a lot of horses and [domestic] horse sports market is growing fast in China," Thiess said. She is "surprised" by the enthusiasm that Chinese people have shown for the industry. As Piavita is still in the growth stage, Thiess said they are looking for an investment of $6 million to $20 million. "We want to work with an investor who is both experienced internationally and has strong relationships in China. So we can do business together," she said. ^ top ^

 

Foreign Policy

China-US trade talks to resume in Shanghai (China Daily)
2019-07-26
Top negotiators from China and the United States will meet in Shanghai on Tuesday and Wednesday for the first time since President Xi Jinping and his US counterpart Donald Trump agreed in June to resume economic and trade consultations. Analysts said that holding the 12th round of talks in Shanghai, the country's financial hub, will help the US have a more direct understanding of China — a nation that is determined to further open up. Previously, the trade talks in China took place in Beijing. Ministry of Commerce spokesman Gao Feng said that holding the negotiations in different places is not unusual. "Shanghai has good conditions for conducting consultations," Gao said. The meeting is expected to implement the consensus reached between the top leaders of both countries at the G20 Summit in Japan last month, Gao said at a regular news conference. US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will meet with Vice-Premier Liu He to continue negotiations aimed at improving the bilateral trade relationship, the White House said in a statement on Wednesday. Ni Yueju, a researcher at the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, said Shanghai remains at the forefront of the country's opening-up. "The choice to hold the next round of trade talks in Shanghai demonstrates China's determination to further open up the economy," Ni said, adding that the country's first free trade zone was located in the municipality. "The planned negotiations will mainly cover issues that have not yet been resolved, for example, whether the US will lift tariffs on Chinese products and remove Chinese companies from a blacklist," Ni said. The US placed several Chinese companies, like telecommunications giant Huawei Technologies, on an Entity List that prevents them from buying from US companies without Washington's approval. "In the upcoming talks, the two sides may also discuss whether China will resume its purchase of US agricultural products," Ni said. If both sides can negotiate on the basis of sincerity and equality, they may achieve some breakthroughs in addressing the aforementioned issues, Ni added. Zhou Mi, deputy director of the Chinese Academy of International Trade and Economic Cooperation's Institute of American and Oceania Studies, said the upcoming talks will be an opportunity for China and the US to address their core concerns and reaffirm their consensus on key issues. "The external environment and economic situations of the two countries have changed since the last round of trade negotiations. The meeting will allow the two sides to confirm their consensus, which is crucial for making progress in the trade talks," Zhou said. Holding the talks in Shanghai will help the US team gain a better and more direct understanding of China as there are many multinational companies operating in the city, Zhou said. The US and China, the world's two largest economies, have been embroiled in long-standing trade differences. Washington and Beijing have imposed levies on billions of dollars of each other's imports. Gao said it is a "typical double standard and self-contradictory" if the US asks China to strengthen the protection of US companies' intellectual property rights while refusing to protect Chinese companies. The country urged the US to truly implement its commitments, and not use state power to suppress Chinese enterprises, Gao added. ^ top ^

Russia and China defy US with delivery of anti-aircraft missile systems to Chinese military (SCMP)
2019-07-25
Russia is going ahead with delivery of its S-400 anti-aircraft missile systems to China, despite the arms deal between the two countries falling foul of US sanctions. Russian state news agency Tass said on Wednesday that Russia had begun delivering a second regiment set of S-400 surface-to-air missile systems to China by sea. "A transport vessel with the first batch of hardware from the second S-400 regiment set for China has taken to the sea from the port of Ust-Luga on the Baltic coast," Tass quoted an unnamed Russian government source as saying. The delivery started "several months ahead of the term stipulated in the contract" and would involve "at least three vessels" transporting the equipment "within a short period of time", the source said. The revelation follows Tuesday's first-ever joint long-range air patrol exercise by Russian and Chinese warplanes over the East China Sea and the Sea of Japan, a show of deepened military ties between the two countries in the Asia-Pacific region. Washington targeted Moscow by passing the Countering America's Adversaries Through Sanctions Act in 2017 after what it viewed as Russia's "malign activities", including alleged hacking in the 2016 US presidential election, and annexing Ukraine's Crimea region in 2014. President Xi Jinping and his Russian counterpart, Vladimir Putin, agreed during their summit in Moscow in early June to extend their relations to what they called a "comprehensive strategic partnership of coordination". China had signed a contract worth about US$3 billion in 2014 for two S-400 regiment sets, becoming the first foreign buyer of Russia's most advanced surface-to-air missile defence system. The Chinese military had successfully test-fired missile launchers from the first S-400 regiment set delivered in the spring of 2018, Tass said. However, last September the equipment unit of China's People's Liberation Army and its director, Li Shangfu, had sanctions imposed on them by the United States for purchases of the S-400 missile system and Russia's Su-35 fighter jets. The US State Department and Treasury said the sanctions were imposed in response to China's "engaging in significant transactions with Rosoboronexport, Russia's main arms export entity", which is on the US' sanction list. The Chinese foreign ministry described the US' actions as "unreasonable". Meanwhile, India has been seeking a sanctions waiver from the US for its intended procurement of five S-400 regiments from Russia under a US$5 billion contract signed last year by Putin and Indian Prime Minister Narendra Modi. India planned to make a fresh effort to convince the US a waiver was needed, Indian newspaper the Deccan Herald reported last month. ^ top ^

China pledges to further cooperation with UK as new PM said "pro-China" (Xinhua)
2019-07-25
China said Thursday it will further advance ties and cooperation with Britain. Foreign Ministry Spokesperson Hua Chunying made the remarks as Boris Johnson, who took office as the British prime minister on Wednesday, said his government would be very "pro-China" in an interview with the Hong Kong-based broadcaster Phoenix TV. "We are very enthusiastic about the Belt and Road Initiative," Johnson said. He also vowed to keep Britain as "the most open economy in Europe" for Chinese investments and voiced his country's welcome to Chinese students. Saying Chinese Premier Li Keqiang on Wednesday sent a congratulatory message to Johnson, Hua stressed the Chinese side values relations with Britain. China is willing to make joint efforts with Britain to develop ties in the spirit of mutual respect and win-win cooperation, she said. China stands ready to deepen mutual political trust, expand pragmatic cooperation with Britain in various fields including the Belt and Road construction, and boost people-to-people exchanges so as to achieve sustained, stable and healthy development of bilateral ties, the spokesperson added. She also called on the two countries to join hands in safeguarding multilateralism and free trade, and combating global challenges. ^ top ^

Chinese consulate in Australia praises patriotic students for counter-protest against separatists (Global Times)
2019-07-25
China's Consulate-General in Brisbane, Australia, on Thursday issued a statement praising Chinese students, including those from the Hong Kong Special Administrative Region, at the Australian University of Queensland (UQ) who staged a voluntary patriotic rally in response to two consecutive anti-China and secessionist protests held at the university campus on Wednesday afternoon. The statement said the consulate attaches great importance to the safety of overseas Chinese students and firmly opposes any words and deeds intended to split China. The consulate also vowed online to stand against any instigation of anti-China sentiments or the use of protests to create bad blood between Chinese mainland students and those from Hong Kong. Dozens of students from the Chinese mainland at the university reached by the Global Times called for a calm and rational response toward the protests and speeches organized by the Australian protester Drew Pavlou. Two Facebook events "Stand with Hong Kong on UQ Market Day" and "Action for Hong Kong and Xinjiang! Public Event" were organized by Australian national Pavlou and Jack Yiu Chak whose nationality has yet to be confirmed, both students at the university, to coincide with the university's crowded market day. The events turned violent. According to videos circulating online and Chinese students reached by the Global Times, protesters sitting at the main entrance to campus were spreading rumors about Xinjiang and Hong Kong. The Anti-China protesters accused the Chinese government of violating human rights and asked the university to close its Confucius Institute, which provoked anger among Chinese onlookers. In response to this protest, the patriotic students joined together and sang the Chinese national anthem as the conflict between two sides escalated into a physical clash. The University of Queensland campus security called police to the scene. No arrests have been made. "The university expects staff and students to express their views in a lawful and respectful manner … Earlier today, in response to safety concerns resulting from a student-initiated protest on campus, the university requested police support," the university said in a statement. "On the advice of police, protesters were requested to move on. The safety of all students is paramount to the university." Media including US ABC and Australian media outlet 7News rushed to the scene and focused on the violence and claimed that the Chinese counter-protesters were responsible for escalating the protest into a clash. But those students reached by the Global Times who requested anonymity said the Western media only interviewed anti-China protesters at the site or cut out their interviews with patriotic Chinese students, presenting an inaccurate and biased view of the events. ^ top ^

Xi highlights significance of Sino-UAE ties (China Daily)
2019-07-24
President Xi Jinping met twice on Monday with Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi of the United Arab Emirates. The meeting took place at the Diaoyutai State Guesthouse in Beijing. Earlier in the day, they had talks at the Great Hall of the People. Xi said that he and the crown prince had held very fruitful and successful talks and witnessed the exchange of a series of cooperation documents in the morning. It's quite rare that the two sides signed so many documents with such substantial content and covering so many areas, Xi said, adding that it demonstrated the great significance of China-UAE relations. Xi stressed that Chinese civilization, with a history of more than 5,000 years, has absorbed a variety of foreign civilizations and continued to develop in an inclusive way. The Belt and Road Initiative originated from the idea of global great unity, and it is dedicated to promoting exchanges and cooperation among different countries, he said. Noting that the UAE also upholds the spirit of openness and inclusiveness, Xi said that the Middle East country has made important contributions to promoting mutual exchanges and learning among different civilizations. The two countries should promote dialogue among civilizations, encourage steady development of the China-UAE comprehensive strategic partnership and make new contributions to global peace and common development, Xi said. The crown prince said that his talks with Xi in the morning were substantial and meaningful, and that he benefited greatly by Xi's profound views on bilateral ties and the international situation. With joint efforts by the two countries, UAE-China cooperation produced fruitful outcomes, he said, adding that the cooperation documents will bring more benefits for the people of both nations. Noting that he completely agreed with Xi's proposal of building a community with a shared future for mankind, the crown prince said that the UAE would like to continuously deepen the bilateral comprehensive strategic partnership. ^ top ^

US sanctions Chinese oil trader Zhuhai Zhenrong for violating Iran restrictions (SCMP)
2019-07-23
The United States is placing a leading Chinese oil importer on its sanctions blacklist for trading in Iranian crude, US Secretary of State Mike Pompeo announced on Monday. "As part of that maximum pressure campaign, I am announcing that the United States is imposing sanctions on the Chinese entity Zhuhai Zhenrong and its chief executive Youmin Li," Pompeo said in a speech. "They violated US law by accepting crude oil," he said. The announcement was the latest step by Washington to ratchet up economic pressure on Tehran over its alleged military activities in the Middle East and its nuclear programme by taking aim at business partners. "We've said all along that any sanction will indeed be enforced. We can't tolerate more money going to ayatollahs, putting American soldiers, sailors, airmen, marines, putting their lives at risk. It's too important." Zhuhai Zhenrong and Chinese state refiner Sinopec are responsible for nearly all the Iranian crude that China imports. Bloomberg reported that China took in about 12 million tonnes of Iranian crude in the first five months of this year. It said that some of that crude is being held in "bonded storage" and not passing through Chinese customs, possibly to avoid the application of sanctions. Analysts have said that closer cooperation between China and Iran, especially on economic matters, is inevitable given they are both now targets of rising US antagonism. Mohsen Shariatinia, an assistant professor of international relations at the Shaid Beheshti National University in Tehran, said in May that the United States' actions had made enhanced cooperation between Beijing and Tehran "not a choice, but a necessity". "China and Iran are facing a common threat now," he said. "The US' long-arm jurisdiction, already fully applied against Iran, will gradually apply to China as well." ^ top ^

Duterte says he allows Chinese vessels to fish in Philippine waters to prevent war (SCMP)
2019-07-22
Philippine President Rodrigo Duterte on Monday insisted the West Philippine Sea belonged to his country, but defended his agreement with Chinese President Xi Jinping to allow Chinese fishermen to operate in the area, saying it was not a constitutional violation. In Monday's State of the Nation address, which he delivered more than an hour late, Duterte said this agreement would ensure there would be no war in the disputed South China Sea, where Manila and Beijing have overlapping claims. "We own the West Philippine Sea but China controls it. That is the reality," Duterte said, hinting that China would have no qualms using arms. "There are already guided missiles [on China-made artificial] islands, [which] can reach Manila in seven minutes. "If you want marines to drive away the Chinese fishermen, not one of them will come home alive." Duterte devoted nine minutes to the West Philippine Sea issue, revealing he had asked Xi to "please allow" Filipino fishermen to work in the Philippines ' exclusive economic zone (EEZ). In return, he said he allowed Chinese fishermen to operate in the area, where a Chinese fishing vessel last month rammed and sank a Philippine fishing boat. "Xi says 'I will fish', who can prevent him? I said, 'We will fish because we claim it'. I said, 'Please allow', because before that [China was] driving away our fishermen." The West Philippine Sea refers to the part of the South China Sea that lies off the Philippines' west coast. Manila named the area in 2012 in a bid to delineate its sovereign territory. Duterte also disclosed that during their first bilateral talk in October 2016, he told Xi the Philippines would undertake oil exploration activities in the EEZ. "President Xi replied, 'Well, you know there is a conflict there … you know a squabble there could lead to something else," the Philippine leader said. "So we just became friends." As it stands, Duterte said, he "cannot even bring the coastguard to drive [China] away". "That is the problem. They are the ones in possession." Speaking to an audience of 2,000 parliamentarians, diplomats and government officials, Duterte said he blamed the previous administration of President Benigno Aquino III for "losing the Spratlys and Panganiban [or Mischief] Reef". Records show that China took control of the reef during the 1992-1998 presidency of Fidel V. Ramos. Duterte promised that national and territorial integrity was foremost in his mind, but he insisted the United Nations Convention on the Law of the Sea (Unclos) and the arbitral award won by the Philippines three years ago recognised instances in which another state was allowed to utilise resources found within another state's EEZ. However, the Philippine Constitution expressly states that its EEZ is exclusively for Filipino fishermen. In 2016, an arbitral tribunal in The Hague rejected Beijing's territorial claims in the South China Sea, ruling that it ran counter to principles of Unclos, to which China is also a signatory. It also ruled that China had violated the Philippines' sovereign rights by interfering with its fishing and petroleum exploration and constructing artificial islands in its EEZ. After Duterte's speech, Supreme Court Senior Associate Justice Antonio Carpio rebuffed the president's assertion that China controls the West Philippine Sea. "Foreign naval powers – US, Britain, France, Australia, Japan, and Canada – continuously sail and conduct naval drills in the South China Sea, including the [West Philippine Sea], demonstrating that China is not in possession of [it]," he was quoted as saying by ABS-CBN. Duterte is seen to have taken a soft stance on Beijing during his time in office. Besides the issue of Chinese fishing vessels within the EEZ, critics have pointed to his lack of enforcement of The Hague's ruling and his attempts to play down last month's sunken Philippine fishing boat, saying it was "just a collision" with the Chinese ship. The speech, which lasted nearly two hours and ended with him singing Moon River and the Filipino love song Ikaw, or You, with the Philippine Philharmonic Orchestra, came as Duterte enters the midpoint of his six-year term. In his address, he vowed to double down on his war on drugs and corruption, asking Congress to reimpose the death penalty for drug-related crimes and the crime of plunder. Duterte's rambling address also saw him ask lawmakers to lower the age of criminal responsibility, create a new ministry devoted to the welfare of overseas workers, and prioritise passing bills to lower corporate income taxes and cut back on incentives. Earlier, some 5,000 protesters gathered outside the House of Representatives to call for Duterte's removal, while a smaller number of pro-Duterte supporters rallied separately. Left-wing protesters burned a mock Chinese flag and a giant mural with the images of Duterte, Xi and US President Donald Trump in initial rallies. Protests were also held in Cebu, Iloilo and Duterte's hometown Davao City. In his speech, Duterte also vowed to "end local communist armed conflict". "We have had enough of this government's 'kill, kill, kill' policy," said Danilo Ramos, a left-wing leader of a farmers' group. "The Duterte presidency is killing its constituents in so many ways." ^ top ^

 

Domestic Policy

White paper gives transparent, comprehensive picture of China's national defense in new era: experts (Xinhua)
2019-07-25
China's newly released white paper on national defense provides transparent and comprehensive information about China's national defense policy and its global significance, overseas experts said. Titled "China's National Defense in the New Era", the white paper released Wednesday by the State Council Information Office expounds China's defensive national defense policy in the new era and explains the practice, purposes and significance of China's efforts to build a fortified national defense and a strong military. It also said for the first time that actively contributing to the building of a community with a shared future for mankind is the global significance of China's national defense in the new era. "We must understand that China is not in a hegemonic search that etymologically means the military and political supremacy exercised by a state," Sonia Bressler, a French writer and sinologist, commented on the white paper. "China, as a power, makes the choice of sharing and not of domination. It is therefore appealing to the intelligence of the people," Bressler said, adding "this affirmation is unprecedented because it places peace at the heart of the political process." "The 2019 white paper outlines China's national defense policy system. It highlighted China's strategic direction and policy of protecting development and win-win projects," said Nourhan al-Sheikh, professor of political sciences with Cairo University. "This year's white paper really matched China's principles that believed that hegemony and expansion are doomed to failure and security and prosperity shall be shared," he said. "The white paper also focused on win-win cooperation, safeguarding China's security and development interests that go in parallel with protecting the routes of the Belt and Road Initiative," he said. Shadrack Gutto, a political analyst with the University of South Africa, said that the white paper will definitely help people understand China's military development, noting Chinese are going to take the white paper forward and translate its theory into action. Mahmoud Raya, director of the website "China in Arab Eyes", said that China provided in the paper a comprehensive picture of the bases governing China's military strategies, which mainly focus on defense and on creating a secure world away from hegemony and domination. The Lebanese expert stressed that the white paper gives hope of creating a safe world away from chaos and mutual threats, and draws a comprehensive global strategy which if adopted by various countries, peace and stability that humanity still lacks so far will prevail on this planet. Eric Mangunyi, a researcher at the Walter Sisulu University, South Africa, noted that China is the main participant and force for global security. "The paper reiterated China's commitment to reject any form of hegemonism and underlined the defensive nature of the policy and of the military modernization," William Jones, Washington bureau chief of the U.S. publication Executive Intelligence Review, told Xinhua. "It also underlines the role China is playing in the numerous peacekeeping missions in which it is involved and the increasing collaboration with the militaries of other nations, including a stable mil-to-mil relationship with the United States," said Jones. Vasily Kashin, head of the Department of International Military-Political and Economic Issues of the Russian Higher School of Economics, said that the white paper presented more data with more details and elaborated China's views over regional and global military and political situations. It is reasonable for China to elaborate its views on a series of international military and political issues against the backdrop that a few Western countries are leaving no stone unturned to contain China, said Kashin. China says in the white paper that it will never seek hegemony, expansion or spheres of influence. A strong Chinese military is a staunch force for world peace, stability and the building of a community with a shared future for mankind. The 27,000-character white paper is the 10th of its kind since 1998 and the first comprehensive one since the 18th National Congress of the Communist Party of China in 2012. ^ top ^

China issues white paper on protecting disabled persons' rights, interests in 70 years (Xinhua)
2019-07-25
China on Thursday issued a white paper on the country's efforts to protect rights and interests of persons with disabilities in the past 70 years. The white paper, titled "Equality, Participation and Sharing: 70 Years of Protecting the Rights and Interests of Persons with Disabilities in the PRC," was released by the State Council Information Office. China now has a population of 85 million persons with disabilities, according to the white paper. Over the 70 years since the founding of the People's Republic of China (PRC) in 1949, the Communist Party of China and the Chinese government have always put the people first and provided care for the group with special difficulties, making them participants in, contributors to, and beneficiaries of the country's social and economic development, it said. The white paper noted that the development of the programs of persons with disabilities are still unbalanced and inadequate and there is still a big gap between the lives these people lead and lives to which they aspire. "China will continue to improve the mechanisms for ensuring their rights and interests -- eliminating discrimination, fully respecting and guaranteeing their human rights, improving their wellbeing, enhancing their ability to better their own situation, and ensuring that they are able to participate in the country's development process and share the ensuing gains as equals," it said. Besides a preamble and a conclusion, the white paper consisted of ten sections: "Development of the Cause of Persons with Disabilities," "Mechanisms for the Protection of Rights and Interests of Persons with Disabilities," "Health and Rehabilitation," "Special Education and Inclusive Education," "Employment and Entrepreneurship," "Basic Life and Social Security," "Creating an Accessible Environment and Enabling Mobility," "Personal Freedom and Non-Discrimination," "Creating a Good Social Environment," and "International Exchanges and Cooperation." By April 2018, more than 80 laws and 50 administrative regulations had been passed concerning the protection of the rights and interests of persons with disabilities, according to the document. The China Disabled Persons' Federation (CDPF), as a legitimate organization approved by the State Council, represents and safeguards the legitimate rights and interests of persons with disabilities. By 2018, a total of 42,000 disabled persons' federations had been set up across the nation. Led by the CDPF, there are associations for persons with specific disabilities, such as visual, hearing and physical disabilities. By 2018, a total of 16,000 branches of these associations at provincial, prefectural (municipal) and county levels were in place. The programs of persons with disabilities have received increasing financial support in the past decades, said the white paper. Disabled persons' federations across the nation spent 57.36 billion yuan (8.35 billion U.S. dollars) on their programs during the 11th Five-year Plan period (2006-2010) and the figure grew to 145.12 billion yuan during the 12th Five-year Plan period (2011-2015), an increase of 153 percent. The investment was 41.67 billion yuan in 2016, the first year of the 13th Five-year Plan period (2016-2020), an increase of 24.15 billion, or 138 percent, compared with the first year (2011) during the 12th Five-year Plan period. From 2013 to 2017, the fiscal allocations from all levels of the government for persons with disabilities added up to over 180 billion yuan, up 123 percent over the prior five years. ^ top ^

China's growth being held back by restrictive resident registration system, urbanisation expert says (SCMP)
2019-07-25
Shanghai's disappointing economic growth at the start of 2019 is a warning to other large Chinese cities that they need to rethink their population control mechanisms and speed up the liberalisation of labour movement, said Lu Ming, a prominent Chinese professor of urbanisation. The growth rate for the financial hub slowed to 5.9 per cent in the first half of the year– a slight increase from 5.7 per cent in the first quarter – but still below the national average of 6.3 per cent, indicating that Shanghai is holding back instead of driving the world's second largest economy. According to data published by the municipal government this week, the slowdown was mainly due to falling industrial production and a small drop in trade. Total industrial output from large firms fell 3.9 per cent year-on-year, while the total value of trade fell 1.8 per cent as exposure to the US-China trade war cut the city's exports to the United States by 10.4 per cent to 129.7 billion yuan (US$18.9 billion) in the first six months of the year. China recently eliminated household registration policies, known as hukou, for cities with populations of 1-3 million residents and eased restrictions for those with regular residents of 3-5 million. But the government is still reluctant to make similar changes for big cities like Beijing and Shanghai, which have said they will cap regular residents at 23 million and 25 million, respectively, by 2020. The hukou policy, introduced in the 1950s, has restricted free movement of labour not only between rural and urban areas but also between different cities. The rigid system essentially created a dual society where those without residency status in a particular city would have only limited access to welfare entitlements and public services. A common concern is that any easing hukou restrictions in big cities would put pressure on local social stability as well as significantly raise the cost of providing adequate public services for an increasing population. But weaker economic growth in Shanghai and a 2.5 per cent decline in Beijing's fiscal revenue in the first half of the year are sending strong signals of the need for faster reform of the hukou policies, which have distorted the labour market and repressed urbanisation for years, according to Lu. "Over a long period of time, China has a shortage of labour when the economy slows. But China's problem is on the supply side. Because of hukou policies and mega cities' negative attitudes toward migrant workers, labour is not working in places of high productivity, so growth slows down," said Lu, who teaches at Shanghai Jiaotong University. It is this policy-driven distortion in the labour market that makes China's development path different from developed economies such as Japan, which had already completed urbanisation before its society began to age rapidly. China's urbanisation rate grew to about 60 per cent of the population at the end of 2018, having risen by roughly one percentage point on average per year, with the goal of reaching 70 per cent by 2030. But China's urbanisation ratio is 10 percentage points below countries with similar levels of per capita gross domestic product, according to Lu. To bridge the urban-rural income gap, the central government has since 2003 deployed more resources – fiscal transfers, land quotas, and subsidies – to less populous inland areas to encourage development, while maintaining strict control of populations in the biggest cities that had a high demand for labour. This misallocation of labour worsened after 2013 when the larger cities started to cap their overall populations and became unwelcoming toward migrant workers. This change is often ignored when examining issues of regional labour shortages in dragging down growth, as opposed to the shrinking of the overall working-age group, which is often cited as "the loss of the population dividend". "Let migrant workers go to the cities. It's not the only way, but the most important one," Lu said. "I never say we should eliminate the hukou system immediately, but can we at least speed up and lower some thresholds." In Beijing and Shanghai, about 40 per cent of regular residents do not possess a hukou, which are closely related to the ability to access social benefits and local schools. Since 2013, however, the number of non-Beijing students studying in primary and middle schools has fallen after the city tightened up its policy. "If we cut [the number of residents without a hukou by] one percentage point per year, it would take 40 years to eliminate the problem. This goal is already hard to complete. And what does one percentage point per year mean? 200,000 people. What is our speed now? In Shanghai, it's 50,000 people," Lu said. The likes of Beijing and Shanghai are adopting point-based systems where governments approve hukous by grading applicants on a variety of criteria, from the length of stay in the city to their contribution to the local social security fund, although Lu said education level should be excluded from the criteria. "Public benefit means equal access. But if public benefit is connected to a hukou, which is then related to your education level, then what role is our public benefit playing here? It actually enlarges the gap between the rich and the poor. It's creating the gap," Lu said. It is the same with a variety of talent-recruitment policies introduced by many Chinese cities seeking to attract highly skilled workers with strong education backgrounds to boost their local economies. "It makes sense for a company to recruit high-level talent. It doesn't make sense for a city," he said. "I am firmly against such talent grabbing policies. Low-level and high-level labour should have equal qualifications and conditions to access public services." ^ top ^

Premier Li urges more efforts to promote people's health, life quality (Xinhua)
2019-07-25
Chinese Premier Li Keqiang has called for more efforts to advance the country's Healthy China action and promote people's health and quality of life. Li, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, made the remarks in a written instruction to a video and telephone conference on advancing the action held in Beijing Thursday. Lauding the efforts made in medical and healthcare reform, disease prevention and health promotion in recent years, Li called for thorough implementation of the decisions and arrangements made by the CPC Central Committee and the State Council. Li also called for focusing on disease prevention and better work coordination so that the action can make continued progress. Individuals and families are encouraged to take steps to foster healthy lifestyles, he said. ^ top ^

China's commercial space industry takes off with successful orbital launch (Xinhua)
2019-07-25
A carrier rocket developed by a Chinese private company successfully sent two satellites into orbit from the Jiuquan Satellite Launch Center in northwest China at 1:00 p.m. on Thursday. The SQX-1 Y1, developed by a Beijing-based private rocket developer i-Space, is a four-stage small commercial carrier rocket. The rocket's body has a maximum diameter of 1.4 meters, length of 20.8 meters and takeoff weight of 31 tonnes. It has a lift capability of sending 260 kg of payload to 500 km high sun-synchronous orbit. It marks the first successful orbital launch by a private Chinese firm. Cai Jingqi, vice president of i-Space, said the successful launch shows that the company has fully grasped the related core technologies in carrier rockets. Zhang Xiaomin from the School of Aerospace Engineering, Beijing Institute of Technology, said the orbital launch is a milestone in demonstrating that China's privately developed carrier rockets are capable of delivering payloads into space. In recent years, Chinese private space companies have marched into a field long dominated by state-owned giants. A market report showed that China had seen over 100 registered private companies in the commercial space industry by the end of 2018. The rapid growth has been possible thanks to the government's efforts to foster the commercial space sector and encourage participation from private companies. Inspired by the legendary U.S. private space company SpaceX, i-Space, set up in 2016, has become a rising star in the country's space arena. Last year, a suborbital rocket named the Hyperbola-1S, developed by the company, was successfully launched from a launch center in south China's Hainan Province. I-Space is among 20-plus commercial space enterprises based in the Beijing Economic and Technological Development Zone or E-town. These newcomers mainly focus on the research, development and design of rockets and satellites for commercial use. In the past, the aerospace industry mainly served the national strategic goals, but now private space enterprises are exploring how to serve the general public. "The commercial space industry has gathered momentum in recent years," said Wu Zhijian, director-general of the China Space Foundation, who also added that the global space economy exceeded 400 billion U.S. dollars last year, driven primarily by the commercial space sector. "State-owned firms are mainly responsible for the country's major space missions. But with economic progress, great demand for commercial space products and services are yet to be fulfilled. Private firms can fill the gap," said Lan Lidong, founder of ZeroG Lab, a Beijing-based developer of micro-and nanosatellites and components. Lan set up the company in 2017 when he saw the potential in the space industry for private companies. At present, the firm is building a remote sensing satellite network which will obtain real-time Earth observation data for port management, water pollution control, disaster assessment and relief and more. Xie Fang, vice president of i-Space, said private space companies can help lower costs and increase the efficiency of space activities, accelerating technological development. "A group of scientists who were former state-owned aerospace industry experts are now working for private firms, adopting a more flexible way to explore space," Cai said. "In the future, we will continue upgrading our business mode, pushing forward China's commercial space products and services to the world," Cai added. ^ top ^

Top legislator stresses effective education campaign (Xinhua)
2019-07-25
China's top legislator has called for efforts to implement the education campaign themed "staying true to our founding mission" of the Communist Party of China (CPC) and crystallize the results of the campaign in lawmaking work in the new era. Li Zhanshu, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and chairman of the Standing Committee of the National People's Congress, made the remarks during an inspection tour in central China's Hunan Province from Tuesday to Thursday. During the tour, Li visited a historical site where late Chinese leader Mao Zedong and other past revolutionaries had studied, worked and engaged in revolutionary activities. He visited Zhuzhou City to carry out research for the revision work of the drug administration law, stressing that good lawmaking demands sound implementation of decisions and plans of the CPC Central Committee as well as efforts to safeguard the people's interests. Li also visited the provincial legislature to inspect its work in the thematic education campaign and the work of local legislatures, and encouraged officials to stay true to their original aspiration and mission in their own posts. He also inspected the work of the provincial Party committee in carrying out the education campaign. ^ top ^

'Zero tolerance' for sex crimes against children as China executes serial child rapist (SCMP)
2019-07-25
China's highest court vowed to use all means, including the death penalty, to punish child sex offenders after a child rapist was executed for attacks on three young girls. The Supreme People's Court said sexual assault was a serious threat to the physical and mental health of children, and the judicial system should show zero tolerance for such crimes. The court issued the statement after upholding a death sentence handed down to He Long, from Linyi in Shandong province. He was executed on Wednesday morning for a series of crimes five years ago. The court said he "adopted" an eight-year-old girl from Henan province in June 2014 and kept the child captive in his flat, repeatedly raping her and shooting videos of her that he posted on social media before she escaped. Five months later, He kidnapped a mentally disabled 13-year-old girl, raping her and forcing her into prostitution, the court said. Then in December 2014, He abducted a 10-year-old on her way to school and raped her before she was rescued by police the next day. He was sentenced to death at trial in Linyi No 1 Intermediate People's Court. The Supreme People's Court said his "vicious motives, odious details and cruel means pose serious harm to personal safety and society". "The crimes are extremely serious and should be severely punished by law," the court said. "If the nature of the crime and the details of the crimes are extremely bad, and the consequences are extremely serious, the death penalty will be firmly imposed according to law." In its summary, the court also gave the example of Wei Minghui, from Guizhou province, who was executed recently for the rape and murder of a five-year-old girl in 2016. Child molestation, often considered a lesser offence, would be severely punished, the court said. More than 23 per cent of child molesters were sentenced to more than three years in prison in 2018, almost eight percentage points higher than the other criminal cases in the same period. Those who were ordered to serve for three years or less were not given suspended sentences, indicating a move to a harsher position on punishment. Three other cases of child molestation – including one involving a teacher and another involving a young boy – were considered "serious plots" and worthy of heavier punishments of between three and 10 years in jail. Sexual assaults on children were on the rise, possibly because of better awareness of such crimes and reporting of them to the authorities, the court said. In the past, kissing and touching a child's body might be overlooked and or not reported in time, it said. Chinese courts heard 8,332 cases of child molestation from June 2017 until June this year, the court said. According to Amnesty International, executions in China are carried out by lethal injection and shooting. ^ top ^

Xi presides over 9th meeting of central committee for deepening overall reform (Xinhua)
2019-07-25
Xi Jinping, general secretary of the Central Committee of the Communist Party of China (CPC), presided over the ninth meeting of the central committee for deepening overall reform Wednesday. Xi, also Chinese president, chairman of the Central Military Commission, and head of the central committee for deepening overall reform, said that deepening overall reform is an important manifestation of the CPC's commitment to remaining true to its original aspiration and shouldering its founding mission. As the reform goes deeper, it is more necessary to shoulder responsibilities, take swift but steady steps and forge ahead without taking a break, Xi said. Reforms should be integrated with the ongoing CPC education campaign themed "staying true to our founding mission," Xi said. Li Keqiang, Wang Huning and Han Zheng, all members of the Standing Committee of the Political Bureau of the CPC Central Committee and deputy heads of the reform committee, also attended. The meeting reviewed and approved a series of official documents: a plan on establishing a national science and technology ethics committee; a guideline on strengthening protection of intellectual property rights (IPR); a guideline on promoting the inheritance, innovation and development of traditional Chinese medicine (TCM); a guideline on deepening reform of the management and maintenance of rural public infrastructure; a plan on the construction of national culture parks for the Great Wall, the Beijing-Hangzhou Grand Canal and the Long March; a guideline on coordination in setting limits in territorial spatial planning; a guideline on accelerating the establishment of a comprehensive internet management system; a plan for a pilot program for building regional medical centers; a plan on promoting a national pilot program for the integration between industry and education; a guideline on supporting Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics; a master plan on building a demonstration area for local economic and trade cooperation between China and the Shanghai Cooperation Organization (SCO). More efforts should be made to improve rules, management mechanisms and supervision of ethics in the field of science and technology, according to a statement released after the meeting. The meeting demanded efforts in adopting comprehensive approaches in IPR protection which would combine legal, administrative, economic, technological and social management methods. The meeting urged efforts to improve the TCM medical service systems, promote the high-quality development of the TCM cause and industries, foster TCM professionals and continue to develop TCM through opening-up and innovation. Rural public infrastructure is an important pillar of rural economic and social development and an important foundation for all-round rural vitalization, and various social entities should be encouraged to participate in the management and maintenance of the infrastructure, according to the statement. In terms of the three national culture parks, efforts should be made to strictly protect and manage the cultural relics and their surrounding environment, preserve traditional cultural ecology, and develop cultural tourism and ecological industries based on local conditions, the statement said. The meeting called for coordinating efforts to draw up a clear line for ecological conservation, designate permanent basic cropland and demarcate the boundaries of urban development. The meeting demanded efforts to establish a comprehensive system for integrated internet management to improve integrated internet management capacity in all respects. By unveiling the pilot program for building regional medical centers, the country aims to promote the development of high-quality medical resources in the form of conglomerates with the help of technologies such as artificial intelligence and big data, to better meet people's needs for medical services, according to the statement. To deepen the integration of industry and education, the meeting urged efforts to respect the law of education and law of economics, let the market play a decisive role in resource allocation, and the government play a role in overall planning and promoting. The country will support Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics, with the strategic intention of the CPC Central Committee to establish a special economic zone firmly in mind, according to the statement. In the development of the Shenzhen pilot demonstration area, the statement said it is imperative to unswervingly follow the path of socialism with Chinese characteristics, adhere to the reform and opening-up, fulfill the requirements of high-quality development, implement the innovation-driven development strategy, seize the important opportunities in the development of the Guangdong-Hong Kong-Macao Greater Bay Area, and strive to create a model city for a great modern socialist country, the statement said. The building of a demonstration area for local economic and trade cooperation between China and the SCO in Qingdao is aimed at creating a new platform for international cooperation under the Belt and Road Initiative (BRI) and expanding cooperation in areas including international logistics, modern trade, two-way investment, and business, tourism and cultural exchanges, the statement said. The country will promote Qingdao's role in the construction of the economic corridor of the New Eurasian Continental Bridge under the BRI and maritime cooperation. ^ top ^

 

Shanghai

Shanghai's STAR Market on steady path (China Daily)
2019-07-26
Stocks on Shanghai's STAR Market extended their gains on Thursday, and analysts said prices of stocks on the new tech-focused board may diverge with lower volatility in the near future. The whole A-share market may be on an upward trend in the third quarter, they added, given fading concerns that the new board may strain the liquidity of other submarkets and the expected bottoming out of economic growth. After a spectacular average gain of 140 percent on Monday and a retreat on Tuesday, the first 25 stocks on the STAR Market posted consecutive gains broadly in the following two trading days. On Thursday, stocks on the STAR Market ended up by 5.5 percent on average, versus 11 percent on Wednesday, with 23 of them registering gains and three of them rising by more than 10 percent, according to financial information provider Wind Info. The value of shares that changed hands on the new board was around 29 billion yuan ($4.2 billion) on Thursday, down from the more than 48 billion yuan on Monday. "Trading of the STAR Market has been relatively rational, without signs of notable excessive speculation," said Wang Maobin, investment department chair at the University of International Business and Economics in Beijing. Behind the stable debut of the new market are innovations in fundamental market rules, including enabling investors to short-sell stocks from their first trading day and the 10-minute halt of trading when intraday gains or losses hit 30 percent and 60 percent, according to Wang. President Xi Jinping announced in November that China would launch the new tech board and pilot the registration-based initial public offering system. In a high-profile meeting in February, Xi called for improvements in the fundamental rules of capital markets. The STAR Market has been seen as the testing ground of capital market reforms. No daily limit of stock price rises or losses was imposed on the first five trading days, and after that a 20-percent daily limit was adopted, versus a 10-percent limit for other boards of the A-share market. As the 20-percent daily limit is applied from next Monday and as investors understand more about the fundamentals of the listed stocks, the volatility of the new market is set to decrease, Wang said. "Prices of stocks on the STAR Market are expected not to continue going up or down together but to diverge, as investors take a closer look at the listed firms' fundamentals, instead of regarding stocks on the new board as a whole," Wang said. Li Daxiao, chief economist at Shenzhen-based Yingda Securities, said stocks of the new market may be overvalued as investors chased the small amount of listings on the new board, citing that the average price-to-earnings ratio, a common gauge of valuation, of the STAR Market has risen to more than 100. But any bursting of a price bubble is unlikely to happen, Li said, as the number of listed firms will not increase sharply. Although the new board may draw funds from the other submarkets, it is unlikely to weigh on the performance of the whole A-share market in the third quarter, Li added. "The actual impact of draining liquidity is limited, but it was the uncertainty that took a toll on investor sentiment. With the smooth debut of the STAR Market, such concerns will gradually disappear," Li said. The whole A-share market may rally in the third quarter, given expectations of the accommodative monetary environment, the influx of foreign capital, and the recovery in listed firms' financial performances as the economy stabilizes, according to Li. On Thursday, the benchmark Shanghai Composite Index gained 0.48 percent to 2937.36 points, while the blue-chip CSI300 index rose 0.82 percent to 3851.07 points. ^ top ^

 

Tibet

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Xinjiang

China issues white paper on historical matters concerning Xinjiang (People's Daily)
2019-07-22
The State Council Information Office on Sunday issued a white paper on historical matters concerning Xinjiang Uygur Autonomous Region in northwest China. China is a unified multiethnic country, and the various ethnic groups in Xinjiang have long been part of the Chinese nation. Throughout its long history, Xinjiang's development has been closely related to that of China, the white paper said. However, in more recent times, hostile forces in and outside China, especially separatists, religious extremists and terrorists, have tried to split China and break it apart by distorting history and facts, the document, titled "Historical Matters Concerning Xinjiang", said. Xinjiang has long been an inseparable part of Chinese territory. Never has it been the so-called "East Turkistan." The Uygur ethnic group came into being through a long process of migration and integration, the white paper said, adding that it is part of the Chinese nation. In Xinjiang, different cultures and religions coexist, and ethnic cultures have been fostered and developed in the embrace of the Chinese civilization. Islam is neither an indigenous nor the sole belief system of the Uygur people. It has taken root in the Chinese culture and developed soundly in China, the document said. The surge in religious extremism around the world has caused a rise in religious extremism in Xinjiang and has resulted in an increasing number of incidents of terror and violence, it noted. "Xinjiang's fight against terrorism and extremism is a battle for justice and civilization against evil and barbaric forces. As such it deserves support, respect and understanding," it said. The document said that some countries, organizations and individuals that apply double standards to terrorism and human rights have issued unjustified criticism of Xinjiang's effort. This kind of criticism betrays the basic conscience and justice of humanity, and will be repudiated by all genuine champions of justice and progress, it said. ^ top ^

 

Hongkong

Hong Kong gov't says it will not ask for assistance from the Chinese military to tackle protests (HKFP)
2019-07-26
The Hong Kong government has said it will not ask for assistance from the Chinese army stationed in the city to handle protests. After anti-extradition law protesters vandalised the exterior of Beijing's office in Hong Kong on Sunday, a spokesperson for China's defence ministry was asked by reporters how the defence ministry planned to tackle Hong Kong's "separatists." The spokesperson cited article 14 of the Garrison Law but did not elaborate. According to the law, the Hong Kong government may, when necessary, ask the central government for assistance from the People's Liberation Army stationed in the city "in the maintenance of public order and in disaster relief." If the request is approved, the troops must work according to the orders of the Central Military Commission, and shall "immediately return to their station after the task has been accomplished." The troops would be under the command of the garrison's highest commander, or any officer authorised by them, with the arrangements made by the Hong Kong government. A spokesperson for the Hong Kong government said in response to media enquiries that it has no need to ask for assistance from the garrison: "The HKSAR government has the ability to properly handle the internal affairs of the HKSAR, to maintain Hong Kong's order," they said. Following the storming of the Legislative Council by protesters on July 1, the government issued a statement on July 2 denying a report that claimed the chief executive had requested the People's Liberation Army to assist in handling the recent conflicts. "A Government spokesman clarifies that the report is totally unfounded. The Government spokesman expressed deep regret over the untrue report by the media outlet involved," it said. On Tuesday, the Hong Kong government issued another statement refuting rumours that Chinese army officers were guarding the China Liaison Office, the Chinese Foreign Ministry's office in Hong Kong, the Chief Executive's Office and the Legislative Council Complex. "The claims are totally unfounded," it said. US Representative Jim McGovern and Senator Marco Rubio, chairs of the Congressional-Executive Commission on China, issued a joint statement on Thursday urging the US government to condemn the threat to deploy the People's Liberation Army in Hong Kong. "Threats of intervention by the People's Liberation Army (PLA) in Hong Kong are unacceptable and needlessly escalate tensions. Escalation of violence – whether on the part of organized crime thugs or the PLA – will only further undermine Hong Kong's autonomy and rule of law," they said. "Instead, the Hong Kong government should listen to the legitimate grievances of Hong Kongers and enter into substantive discussions." They said they stood with peaceful protesters in Hong Kong. "The Trump Administration should strongly and publicly condemn any threats to Hong Kong citizens and U.S. residents of Hong Kong. We also ask the Hong Kong government to condemn the Chinese government's threats as unwelcome interference in Hong Kong's affairs." ^ top ^

China's top television news show runs week of reports slamming Hong Kong protesters (SCMP)
2019-07-26
China's most watched daily television news programme has aired a series of damning reports about the anti-government protesters in Hong Kong and blamed "external forces" for helping to disrupt order in the city. State broadcaster CCTV's prime-time evening news programme Xinwen Lianbo began the run on Saturday with a report promoting the "Protect Hong Kong" rally organised by Beijing supporters at Tamar Park in the Admiralty district of Hong Kong. Subsequent reports covered the violent protests outside Beijing's liaison office in Hong Kong on Sunday night when protesters sprayed anti-China slogans on the wall of the building and splashed black paint on the national emblem. On Thursday, the programme interviewed businesspeople and Hong Kong residents who said the city's economy would suffer if the protests continued. Johnny Wei, 45, a businessman who lives in Zhaoqing in the southern mainland province of Guangdong, said he was in tears when he watched the reports. "I knew about the protests in Hong Kong but I was still shocked when I saw the national emblem covered in black paint," he said. "I had tears in my eyes. This was too much. I respect their right to protest but they should not insult our country," he said. On CCTV's official Weibo account, most of the 3,000 comments that accompanied the video clips of the protests at the liaison office were critical of the protesters. Other state media, including People's Daily and Xinhua, also carried strongly worded commentaries on the protests. Xiake Dao, a social media account affiliated with the overseas edition of People's Daily, published a commentary accusing Hong Kong and Western media of "playing a disgraceful role" in fanning the flames of the month-long unrest in the city. A Communist Party official, who works at the liaison office and was on duty on Sunday night, said he was shocked by the violence and the rage shown by the protesters. "Things are very different this time [compared with previous protests]," he said. "This is the first time since the 1997 handover that the national emblem has been vandalised and I heard [the protesters chanting] slogans like, 'It's time for revolution' and 'recover Hong Kong'." "I see this as a watershed event and I am not the only one here who feels that way," the official said on condition of anonymity. Xinwen Lianbo did not interview any Hong Kong government officials or police about the protests. On Tuesday, the programme's reports included criticism by China's foreign ministry spokeswoman Hua Chunying who claimed Washington had instigated the protests in Hong Kong, but did not elaborate. A journalist who works for the Guangzhou Daily group but asked not to be identified, said that newspaper editors in the mainland had been told they must toe the official line when reporting events in Hong Kong. "On reports about Hong Kong, we are under strict orders to use copy provided by state media like Xinhua or CCTV, and we can only carry official statements released by official departments," said the journalist, who asked not to be named. Wu Junfei, deputy director of the Tianda Institute, a think tank in Hong Kong, said: "Xinwen Lianbo is the most important channel for Chinese leaders to communicate their agenda to the public. The lengthy reports and commentaries about Hong Kong show that the leadership in Beijing is taking the situation very seriously and wants to communicate a clear position to the mainland and the rest of the world." Despite the criticism, Beijing had shown some restraint, he said. "We can see that the central government has been cautious on Hong Kong, and has only called the protests 'violent incidents' and not 'riots' in the hope that order can be restored in the city soon." But Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy in Singapore, said he believed the storming of the Legco building on July 1 and Sunday's protest at the liaison office had pushed Beijing's leaders to take a tougher stance and send a strong message on the importance of stability. "The storming of the Legco building and vandalising of the liaison office have given Beijing the justification to attack the anti-government protesters, who are now being described as violent people who destroy public property, attack the police and cause great losses for the Hong Kong public. "But the reports have not provided a proper explanation [of what caused the protests]," he said. "So mainlanders who watched the programmes will get the impression that the protesters who opposed the extradition bill are troublemakers who want Hong Kong to break away from China, and that is obviously against the will of almost all mainland Chinese." Wu said that as Beijing blocked access to many foreign news sites and other sources of information, most mainlanders did not have access to unbiased information and tended to believe Beijing's propaganda. "Even in the case of the mob attacks in Yuen Long on Sunday night [when a gang of thugs randomly attacked Hong Kong subway users], most mainlanders believe that the 'unpatriotic' protesters deserved to be beaten as they only have access to one side of the story." ^ top ^

Hong Kong police ban Saturday's Yuen Long protest against mob attacks (HKFP)
2019-07-25
The Hong Kong police have officially banned a protest set to occur on Saturday in Yuen Long. On Thursday, the police issued a letter prohibiting the protest, after considering public safety, public order, other people's rights and freedom. The move comes amid pressure from rural groups. The demonstration was set to protest the violent mob attacks at the district's metro station. On Sunday night, a group of unknown men in white attacked people at the MTR station with bamboo sticks and metal bars, among other weapons. The incident left at least 45 people injured including journalists and a lawmaker. At least eleven have since been arrested. In an earlier letter addressed to the Yuen Long police commander, the chair of the Shap Pat Heung Rural Committee expressed "strong objection" to the march on Saturday: "It has already been widely circulated online that people will attack Nam Pin Wai village that night," said Ching Chan-ming. "If the police still issue a letter of no objection, they will be responsible for all of the serious consequences." Max Chung, who applied for police approval for the "Reclaim Yuen Long" demonstration, said he will appeal. He said he will still walk the length of Saturday's march on his own: "This is not a protest. I am just telling you my personal activity," he told reporters. "For now, I will not tell others to join my personal walk." 'Police listed five factors for their decision to ban the march, which included the July 21 attacks: "We have reason to believe that the marchers will engage in physical confrontation with villagers, and will pose a danger to marchers, villagers and other members of the public," the letter read. Police also said the march organiser refused to change the route despite police requests, could not provide backup routes, and could not prove that there will be enough marshalls on the day to ensure safety. The march may also "create serious obstruction to the roads and pose a danger to marchers," police said, saying that the organiser failed to provide a "reasonable turnout estimate." Police also took issue with the organiser's choice of the neighbourhood playground as a gathering place: the organiser did not obtain permission from the Leisure and Cultural Services Department (LCSD) to use the spot, and the sidewalk outside was "not ideal or safe" as it was too narrow, police said. Police also noted that the march would come close to the tracks of the Light Rail and various shops, which could cause danger or affect the rights and freedoms of Yuen Long residents. Finally, police said that the "social climate in recent days" meant that march organisers could no longer control the behaviour of attendees. Even if the police were to impose conditions, it would still be unhelpful in protecting public safety, the letter read. Kenneth Lau, head of the rural body Heung Yee Kuk, said on Thursday that the Kuk will urge villagers not to go out during any protest in order to prevent conflict. He urged protesters not to attack villages or the Sap Pat Heung Rural Committee office. "We also urge protesters to remain calm and leave as soon as possible after the protest," he said. Lau said protesters should use legal means to protest against lawmaker Junius Ho if they wish. Ho, an indigenous villager, was seen shaking hands with men in white on Sunday – before some attacked passengers in Yuen Long station. The march was originally set to begin at Shui Pin Tsuen Playground on Tai Yuk Road at 3pm. It would have ended at Yuen Long MTR station, though protesters had no plans to enter Yuen Long's villages, where the men in white retreated to on Sunday. Lawmaker Au Nok-hin said in a statement that the police might have contravened Article 27 of the Basic Law if they banned the public demonstration without valid grounds. The "objective effect" of the police decision was that the public will still gather in Yuen Long on Saturday, but they will bear the risk of joining an unlawful assembly, and the protest will become difficult to control, Au added. It is rare for the police to object to a demonstration outright, Au said, citing past cases where police would try to find common ground with the march organisers. He said the police should have suggested alternatives to show what they considered acceptable. A photo of a separate demonstration has been widely-shared among protest groups, calling for a memorial gathering for late Chinese premier Li Peng, at 3pm on Saturday. It will take place at Shui Pin Tsuen Playground in Yuen Long – the original starting point of the banned march. ^ top ^

Hong Kong legislator condemns violence: Some media silent on vandalism (Global Times)
2019-07-25
If Hong Kong gets out of control, then the People's Liberation Army will be needed to bring back social order, Junius Ho Kwan-yiu, a pro-establishment legislator of the Hong Kong Special Administrative Region (HKSAR) said in an exclusive interview with the Global Times on Thursday. Ho, a Hong Kong legislator and former president of the Hong Kong Law Society, was filmed on Sunday night shaking hands with men in white clothes who had been in a physical conflict with radical protesters in Yuen Long. Ho declared he was just greeting acquaintances, but his opponents hyped the handshakes as evidence that the pro-establishment legislator was colluding with gangsters. Ho explained that he showed up in Yuen Long Sunday night as he was seeing off a friend and also to deal with some legal consulting. Ho said many residents in Yuen Long know him as he is legislator for New Territories West - which includes Yuen Long - and so it's normal for him to be greeted in this area. "I know they [people in white] intended to prevent people in black clothes [radical protesters] from making trouble. They prioritize defense," said Ho. The people wearing black started it, Ho said. Violence is wrong, but the opposition force cannot pass all the buck to others, he said. Ho's life has been disrupted since the video of him shaking hands with men in white went viral. His office address, telephone number, the information of his son, and even the location of his parents' tombs were published online. He receives hundreds of crank calls every day. Vandals desecrated the tombstones of his parents' graves on Tuesday afternoon. Thirty-nine pro-establishment legislators issued a joint statement on the same day, condemning the evil behavior, according to Hong Kong-based Wen Wei Po. The attack on Ho sends a clear message that whoever speaks for the government will be silenced, said Ho, but adding that vandals' behavior are doomed and justice will serve itself. Some Hong Kong local media have ignored the harassment of Ho and instead focused on the Yuen Long violence. "Some Hong Kong media are mute," said Ho, noting that all they care about is whether the police colluded with people in white and why police failed to arrive at the scene in a short time after the clashes on Sunday. That night the police received 24,000 calls in three hours and internet users also urged people to call the police at the same time. After the Yuen Long incident, Western countries "paid their attention," said Ho, saying that it was no surprise to him that anti-China groups in those countries have close connections with Hong Kong's opposition forces. Ho mentioned that in May, before the protest broke out against the extradition bill, he was invited to dine with British Ambassador to China Barbara Woodward, along with another pro-establishment legislator and four legislators from the opposition. Ho said he learned that the dinner was aimed at persuading them to give up their stance and support the opposition. US interference in Hong Kong has been obvious since February, Ho said. The interference has bred problems in the region and disturbed residents. People from anti-government organizations are also from many walks of Hong Kong's society. They want to separate Hong Kong from the motherland, said Ho, "which is intolerable." Once the situation in Hong Kong gets out of control, the law allows the People's Liberation Army's Hong Kong Garrison to shoulder the responsibility of restoring social order, Ho said. But first of all, the regional government and police forces should try to stop the violence, he noted. Born and raised in a New Territories village, Ho said people in this area have a strong sense of family and respect their ancestors. "However, we saw some surprising changes in Hong Kong society. So many young people forgot their roots and ancestors, disagree with their identity as a Chinese. Some even don't have a basic moral sense." Ho said he was open to discussion with people who hold different opinions, but desecrating his parents' tombstones was "not good." "I think the two sides should stop, show some respect and understanding for each other like the way a Chinese should behave," he said. ^ top ^

 

Taiwan

China warns US warship's transit through Taiwan Straits (Global Times)
2019-07-25
Chinese officials and experts slammed the transit of a US warship Wednesday through the Taiwan Straits, calling it a provocation timed to coincide with the release on the same day of China's new national defense white paper which identified the opposition and containment of "Taiwan independence" as part of the Chinese military's fundamental goal. The timing could mean the US is sending a high-profile signal to pressure China amid escalating tensions between the two countries, but this will only incite Taiwan secessionists, worsen the cross-Straits security situation and further damage China-US relations, analysts said while emphasizing that there is zero possibility that China will make any concessions when it comes to the Taiwan question. "The Chinese side has been closely monitoring from start to end the passage by the US warship through the Taiwan Straits. We have raised concerns to the US side," Foreign Ministry spokesperson Hua Chunying said at a daily briefing on Thursday. "The Taiwan question is the most important and sensitive one in China-US relations. We urge the US to observe the one-China principle and the three China-US joint communiqués and prudently and properly handle Taiwan-related issues so as to avoid negative impacts on China-US relations and peace and stability across the Taiwan Straits," Hua said. The USS Antietam, a Ticonderoga-class guided missile cruiser, conducted a routine Taiwan Straits transit from Wednesday to Thursday, CNN reported Wednesday, citing a statement by Clay Doss, a spokesman for the US Navy's Seventh Fleet. This is the sixth time the US has sent warships through the Taiwan Straits this year, and the latest passage coincided with China's release on Wednesday of its latest national defense white paper China's National Defense in the New Era. One of the aims of China's national defense is to oppose and contain "Taiwan independence," according to the paper. The People's Liberation Army (PLA) will resolutely defeat anyone attempting to separate Taiwan from China and safeguard national unity at all costs, it said. "If anyone dares to try to separate Taiwan from China, the Chinese military will not hesitate to go to war to resolutely safeguard the country's sovereignty and territorial integrity," Defense Ministry spokesperson Wu Qian stressed at a press conference on Wednesday. Li Jie, a Beijing-based naval expert, told the Global Times on Thursday that the US is intentionally provoking China, showing off to people, including Taiwan secessionists, that despite the white paper's declarations, the US is still capable of challenging China. While the timing of the US warship's transit through the Taiwan Straits and the white paper's release might actually be a coincidence, it remains clear that Washington has doubled down on its support for Taiwan in its strategic game with Beijing, Ni Feng, deputy director of the Chinese Academy of Social Sciences' Institute of American Studies, told the Global Times on Thursday. Publicly announcing the warship's passage the same day as the white paper's release clearly shows US intentions, the Chinese analysts said. By calling the transit a "routine" move, the US expects to avoid a strong response from China, but in fact, such moves will leave an impression that the US is continuing to take a strong stance against China, they said. The US move might further embolden Taiwan secessionists, which will further destabilize cross-Straits relations, Li said. The US seems not to care about overall relations between China and the US, he said. Ni noted that by frequently sending naval vessels through the straits, the US is reneging on its promise to China made when the two countries established diplomatic relations, shaking the very foundation of China-US relations. Neither the Taiwan secessionists nor the US will see the outcome they desire, as the island of Taiwan is and will always be part of China, analysts said. Some Taiwan internet users are also tired of the frequent presence of the US warships, with one posting on Facebook that the US was "struggling for a sense of presence." "The US is baring its fangs and showing its claws, but there is nothing there, really," read another comment from a Taiwan net user. If the time comes when the Chinese mainland is left with no choice but to reunify the island of Taiwan by force, the US will definitely not fight for the island, Chinese mainland analysts said. After the US approved a plan to sell $2.22 billion worth of arms to the island earlier this month, China's Defense Ministry announced a military drill near the southeast coast of the Chinese mainland which was widely interpreted as a response to the US' action and a warning to Taiwan secessionists. To respond to the latest US warship transit through the Taiwan Straits, PLA drills in this direction could become even larger and more complex, analysts suggested. "The drills could be big and could include an amphibious landing exercise with the island of Taiwan's terrain and landforms in mind," Li said. In addition to the landing ships and amphibious equipment used in regular landing mission drills, rockets and missiles of the Rocket Force, fighter jets and helicopters, as well as electronic warfare installations could be deployed, Li predicted. It could be a coordinated joint operation exercise, as in case the mainland really needs to resolve the Taiwan question by force, it is unlikely to involve only one military branch, Li said. ^ top ^

New white paper sets stance on Taiwan in clear focus (China Daily)
2019-07-25
The Chinese army will "not hesitate to fight" if someone "dares to try to separate Taiwan from China", the Ministry of National Defense said on Wednesday. In a white paper released on Wednesday, China listed "opposing and containing 'Taiwan independence'" as one of the top national defense priorities and said it "makes no promise to renounce the use of force". Senior Colonel Wu Qian, the ministry's spokesman, said at a news conference that the white paper conveys a clear message-"Taiwan independence" attempts will reach a dead end. The white paper mentioned Taiwan many times and showed that the Taiwan question is extremely important and vital to China's core interests, Wu said. "If anyone dares to try to separate Taiwan from China, the Chinese military will certainly not hesitate to fight to resolutely defend our country's sovereignty and territorial integrity," he said. "We believe we are brothers connected by flesh and blood, and blood is thicker than water. We will do our utmost, with absolute sincerity, to strive for a peaceful reunification," he added. China is the only major country in the world that has yet to be fully unified, and the fight against separatism has become more acute in recent years, according to the white paper. It called the "Taiwan independence" forces and their actions "the gravest immediate threat" to peace and stability across the Taiwan Straits and "the biggest barrier" to realizing the country's peaceful reunification. The white paper said the country is facing more challenges in its anti-separatism fight. Taiwan authorities, led by the Democratic Progressive Party, stubbornly stick to their notions of "Taiwan independence" and refuse to recognize the 1992 Consensus, which embodies the one-China principle. Wu said it is obvious to all that the DPP has gone farther down the path of separatism by stepping up efforts to sever connections with the mainland in favor of gradual independence while at the same time courting foreign support to build themselves up externally. The white paper reiterated that China adheres to the principles of "peaceful reunification" and "one country, two systems" and said it is in the fundamental interests of the Chinese nation to solve the Taiwan question and achieve complete reunification of the country-all of which are essential to realizing national rejuvenation. "China must be and will be reunited," it said, adding that the country has not only the firm resolve, but also reserves the option of taking "all necessary measures" to safeguard national sovereignty and territorial integrity, targeting not Taiwan compatriots, but the interference of external forces and the very small number of separatists and their activities. "China will never allow the secession of any part of its territory by anyone, any organization or any political party by any means at any time. The People's Liberation Army will resolutely defeat anyone attempting to separate Taiwan from China and safeguard national unity at all costs," it said. ^ top ^

 

Economy

Bankruptcies among Chinese developers are up by a half amid slowing economy, restrictions on borrowing (SCMP)
2019-07-26
The number of Chinese property developers going out of business as they find themselves struggling to borrow money amid a slowing economy has gone up by half, according to official figures. So far this year, 274 builders have filed for bankruptcy, a rise of 50 per cent from a year ago, according to the website of the People's Court Daily, a state-owned publication. A recent, high-profile example was Yinyi Group, a developer in the Chinese port city of Ningbo, which filed for bankruptcy reorganisation in June after it failed to pay back 300 million yuan in debt issued three years ago. Although the numbers are only a tiny fraction of the estimated 100,000 developers in mainland China, concern is growing that defaults and bankruptcies will only increase. China's economy expanded 6.2 per cent in the three months ending in June, the slowest quarterly pace since records began in 1992. "Everyone, from home buyers to savvy investors, is worried about developers' cash flow," said Yan Yuejin, a research director with Shanghai-based property services firm E-House China R&D Institute. Home builders have found it harder and harder to access their traditional sources of credit as Beijing has sought to clamp down on high debt levels. In May, the China Banking and Insurance Regulatory Commission banned direct financing to developers who have not yet secured all the approvals necessary to start building or who have not secured all the funding they need for a project. The ban was later expanded to include indirect financing through equity investments and bond subscriptions. And earlier this month the National Development and Reform Commission said that any new offshore bonds issued by real estate firms must be used only to replace medium- and long-term offshore debt maturing in the next year. Previously, developers could use offshore debt issuance proceeds to refinance existing debt, both onshore and offshore, and for general corporate purposes. "The government is determined to reduce risks in the financial system, and maintaining stability amid a deteriorating economy is the key mission," said Joe Zhou, executive director of CBRE. He said that if highly leveraged developers were allowed to continue borrowing money, bidding for land and selling homes, they would soon be unable to pay their debts. That would soon leave them unable to finish or hand over vast numbers of homes that have already been sold, causing a public outcry. "That is the last thing the government would like to see now," said Zhou. "It is better to screen off those struggling builders now than later. We will see more of them being acquired or going bankrupt." Yan said that credit control policies in the sector have been tightened 15 times this year alone. He believes more are to come, leaving China's builders little room to obtain fresh loans in the second half of the year to refinance the debt they borrowed earlier. More than 500 domestic bonds worth a total of 530 billion yuan raised by Chinese home builders will mature this year, up 30 per cent from 2018, according to financial data provider Wind Information. Adding in offshore debt, developers will need to refinance nearly US$30 billion in the rest of the year, according to Hong Kong-based credit research firm Bondcritic. ^ top ^

China's weak exports in first half of 2019 are also bad news for its major trading partners (SCMP)
2019-07-26
While the meagre 0.1 per cent rise in exports in the first six months of 2019 was bad news for China, it was even worse for many of its trading partners, with a flat performance by the world's second large economy causing ripples through the tightly integrated supply chains created by globalisation. A decline in Chinese exports automatically dampens its demand for imports of components used in finished exports and that, in turn, hurts every other economy that sells to China. The biggest drop in first half exports was to the United States, with which China has been fighting a trade war for the past year. Exports to the US contracted by 8.1 per cent, a sharp reversal from the 13.5 per cent rise during the first half of 2018, according to the China's General Administration of Customs. But the decline in exports paled in comparison to the near 30 per cent drop in Chinese imports from the US, which range from raw materials to agriculture products, aircraft and semiconductors. The contraction was not only another indication of declining demand for American products, but more tellingly, a sign of weaker consumption worldwide. Processing imports, where part of the production process is contracted out to a firm in a different country, are sinking as the trade war takes a toll on the global economy, with economists even warning of a recession if tensions escalate. China's overall imports slid 4.3 per cent in first half of 2019, compared with a 19.9 per cent rise a year earlier. Raymond Yeung, ANZ's chief economist for Greater China, pointed out that supply chains are so intricately interwoven that it was no longer a zero-sum game where one market's decline was another economy's gain. "When exports for one market drop, those for others also fall," Yeung said. For that reason, China's first half exports to the European Union may have climbed 6 per cent, or US$11.12 billion, while those to the 10-nation Asean group increased 7.9 per cent, or US$11.84 billion. But both growth rates were well below the level in the first six months of 2018 after exports to the European Union grew 11 per cent, while those to Association of Southeast Asian Nations (Asean) states rose 16 per cent during the same period. What is more, neither of the increases in exports to the two large economic blocs so far this year would have been sufficient to fill the gap of US$18.19 billion resulting from the lower Chinese exports to the US. Chinese exports rose to most of the six Asean nations for which Beijing released detailed trade figures for, but the rate of increase was smaller in three of the countries than it was in the previous year. Only two – Malaysia and the Philippines – posted faster increases. Similarly, based on the customs data made available for five European Union countries, exports to four climbed, albeit at a pace that lagged behind last year's. Exports to Britain, on the other hand, rose at a faster 12.7 per cent pace, against a 3.2 per cent slip in the first half of 2018. Even though Vietnam, which has been the major beneficiary of the shift of manufacturing out of China to escape rising costs and US tariffs, posted a 36.4 per cent rise in exports to the US in the first five months of the year, the total value of US$25.84 billion was only 14 per cent of what China sold to America during the same period, according to US government data. Asean member Singapore, which counts China as one of its top trading partners, posted a double-digit drop in exports in June for the fourth straight month. Non-oil exports, a benchmark indicator, slumped 17.3 per cent, mainly due to declines in goods shipped to Hong Kong, China and the European Union against the broader drop for most of its top markets. The export-reliant city state said it was reviewing its 2019 growth forecast range of 1.5 to 2.5 per cent. The US and China are set to resume negotiations after US President Donald Trump agreed with Chinese counterpart Xi Jinping on a tariff ceasefire last month at the G20 summit in Osaka. US trade representative Robert Lighthizer and US Treasury secretary Steven Mnuchin will travel to Shanghai early next week to meet their Chinese counterparts, Vice-Premier Liu He and Commerce Minister Zhong Shan. Still, reaching an agreement to end the year-long trade war will be difficult and could take significant time. A deal is only possible, according to Chinese state media commentary, if the US removes all tariffs imposed since the start of the trade war. The US has imposed 25 per cent tariffs on US$250 billion of Chinese goods, while China has retaliated with a similar levy on US$60 billion of American imports. The dispute is also very much a tech war, as the US attempts to tame China's ambition to be a technology superpower, laid out in its "Made in China 2025" industrial strategy to create national champions in 10 hi-tech industries, one of the catalysts for the trade war. And the complex nature of the hi-tech industry also means its supply chain is inherently global. Take the example of a semiconductor, or chip, which is known as the brain that powers everything from electrical appliances and smartphones to the most sophisticated super computers and driverless cars. A typical production process starts in the US where the chip is designed, to Japan where silicon ingots are sliced into wafers. From there, they return to the US to be made into fabrication wafers, where they are also sorted, cut into dies, on which the circuits are fabricated. The die is then assembled, packaged and tested in Malaysia, and the final product shipped for inventory in Singapore. The product, or chip then heads to China where it is integrated into consumer products, before being exported to the rest of the world. China is the leading maker of personal computers and smartphones globally, but it continues to rely heavily on imported components from the US and the rest of the world. For instance, Chinese smartphone manufacturers overall account for a significant 85 per cent share of the domestic market, but more than 50 per cent of components needed are sourced from multinational players, according to report released this month by global consultancy McKinsey. The report examines the evolving economic relationship between China and the rest of the world, and explains one of China's pain points – the reliance on semiconductors from the US and other foreign players. The McKinsey research found that China, the world's largest goods trading nation since 2013, has been increasingly relying on domestic demand and reducing its exposure to the world, which, in contrast, has become more economically exposed to the Asian giant. It also found that domestic consumption contributed at least 60 per cent of China's growth during 11 of the 16 quarters from January 2015 to December 2018. "China knows well it needs to build up and stabilise domestic demand. It cannot rely on debt [to fuel growth], said ANZ's Yeung, referring to expectations that a trade deal is unlikely in the short term. China introduced a two-year plan last month to boost further consumption of goods including smart home appliances and new energy vehicles. Consumption is critical for the country's growth, and already contributes more than 60 per cent of economic growth. But Yeung said expanding domestic demand would be a long term undertaking, which is tied to issues like income growth and the broader economic structural reforms. To shore up confidence, the Ministry of Commerce said this week that the government's efforts to open up a diverse range of markets, despite the increasingly complicated international trade environment due to rising protectionism, were paying off. It highlighted that the contribution from first half exports of goods and services to gross domestic product growth reached 20.7 per cent, a 1.5 percentage point rise from a year-earlier. The portion of exports to emerging markets, which excluded the US, European Union, Japan and Hong Kong, rose 1.4 percentage points, the ministry said. Natixis' Asia-Pacific chief economist Alicia Garcia Herrero said markets in which Chinese exports had an edge under the current circumstance would become captive markets. These countries could include, for example, countries being sanctioned, such as Iran and Russia, as well as others that depend on China's financing of exports, as is the case of Venezuela and, to a lesser extent, Pakistan. "For more relevant sectors, margins are larger for machinery than for consumer goods which is another reason why China wants to get more and more into capital goods," she said. ^ top ^

 

DPRK

DPRK fires missiles; restart of peninsula negotiations urged (China Daily)
2019-07-26
The Democratic People's Republic of Korea fired two short-range missiles, on Thursday morning, a move that analysts expect will present difficulties for efforts to resume long-stalled denuclearization talks. The DPRK launched the missiles from the eastern coastal city of Wonsan, one of them flying about 430 kilometers and the other 690 km out over the sea, Reuters said. They both reached an altitude of 50 km before splashing down, the report cited an anonymous Republic of Korea Defense Ministry official as saying. The second missile appeared to be "a new design that had not been seen before", and a detailed analysis was being done to verify the object's qualities, the official added. It was the DPRK's second launch of short-range projectiles this year as the country fired two similar projectiles on May 9, Xinhua News Agency reported. Those projectiles flew about 420 km and 270 km. A statement from the ROK's National Intelligence Service said the projectile launches are a protest against the planned ROK-US 19-2 Dong Maeng joint military exercises scheduled for next month. Foreign Ministry spokeswoman Hua Chunying said on Thursday that China is aware of the launch and different parties' reactions, and that it believes the DPRK and the US should restart talks as soon as possible. The DPRK's Foreign Ministry warned last week that Pyongyang might call off upcoming working-level negotiations with Washington if the military drills take place. Denuclearization talks between the DPRK and the US remain deadlocked after the Hanoi summit in February between US President Donald Trump and DPRK top leader Kim Jong-un broke down without a deal. They failed to reach common ground on the scope of Pyongyang's denuclearization and Washington's sanctions relief. On June 30, Kim and Trump agreed to resume working-level talks on denuclearization as the two leaders met at the peninsular border village of Panmunjom. It is a common aspiration of the international community for the two sides to resume talks as soon as possible, Hua said. All parties involved should cherish the hard won momentum for dialogue, show goodwill and work together for the peninsula's denuclearization and a political resolution of the peninsula issue, Hua said. Analysts said Pyongyang's latest missile launches may have a negative impact on prospects for future talks. Li Chengri, a researcher at the Chinese Academy of Social Sciences, said the aims of Thursday's missile launches are twofold. "First, the calibrated move is a protest of the planned US-ROK military exercises next month. Second, it also adds to Pyongyang's bargaining power ahead of possible nuclear talks with Washington." Li added that launching short-range missiles is a vital negotiation tactic of Pyongyang when dealing with Washington as it believes it can pressure the US to come up with proposals that are closer to Pyongyang's demands. Lee Jung-nam, a professor at the Asiatic Research Institute at Korea University in Seoul, said the impact on future DPRK-US talks will be "limited" because Pyongyang does not wish to turn away from dialogue. "It is in a way a diplomatic gesture from Pyongyang calling on Washington to lower the hurdles, which is to ease the terms of denuclearization if they want the working-level talks to proceed," Lee said. ^ top ^

US urges 'no more provocations' after North Korea test fires new ballistic missiles (SCMP)
2019-07-26
The United States on Thursday urged North Korea to refrain from further provocations after the reclusive country test-fired two new short-range ballistic missiles, but said it still hoped for a resumption of working-level talks on North Korea's denuclearisation. "We want to have diplomatic engagement with the North Koreans," State Department spokeswoman Morgan Ortagus told a news briefing when asked about the latest missile tests. "We urge no more provocations." "This administration is committed to diplomatic engagement with the North Koreans and we continue to press and hope for these working-level negotiations to move forward," she added. Ortagus said Secretary of State Mike Pompeo would travel to Thailand, Australia and Micronesia from July 30 to August 6, but she had no meetings with the North Koreans to announce. Ortagus declined to comment when asked about a report from a diplomatic source who said North Korean Foreign Minister Ri Yong-ho had cancelled a trip to a regional security forum in Bangkok next week where some had speculated he and Pompeo could have met. The North has previously warned that upcoming US-South Korea joint military exercises could affect the resumption of the talks. There are close to 30,000 US troops stationed in South Korea and their annual manoeuvres with South Korean soldiers have always infuriated Pyongyang. Kim accused the South of "double-dealing behaviour" by talking peace, but then "behind the scene, shipping ultra-modern offensive weapons and holding joint military exercises", North Korean state media said. South Korea's leaders "should not make a mistake of ignoring the warning from Pyongyang", it added. North Korea's missile tests came despite a meeting between its leader Kim Jong-un and US President Donald Trump at the demilitarised zone (DMZ) that separates South Korea and North Korea late last month, where the two men agreed to revive denuclearisation talks that stalled after their failed February summit in Vietnam. "What we are hoping is that after the historic visit the president had at the DMZ with Kim Jong-un … we can continue to move forward on the commitments made in Vietnam," Ortagus said. "What would be most productive is for Chairman Kim and his staff and for President Trump and all his staff to continue upon the path that was laid out for us both in Vietnam and at the DMZ, and that is a diplomatic resolution and the end of North Korea's nuclear weapons," she said. Ortagus stressed that the US sanctions on North Korea would remain in effect until that goal was reached. The Hanoi summit collapsed after the two sides failed to reconcile differences between US demands for North Korea's complete denuclearisation and North Korean demands for sanctions relief. ^ top ^

Cooperation with China needed amid stalled talks with the US (Global Times)
2019-07-25
A steady development of relations between China and North Korea has been prominent in recent weeks, with increasing governmental and civil exchanges across the border. Analysts believe that part of the warmer ties is a result from Chinese President Xi Jinping's recent visit to Pyongyang and stalled nuclear talks between the US and North Korea. On July 10, a delegation of North Korean Ministry of Security (MPS), led by MPS Councilor Ri Song-chol, met China's State Councilor and Minister of Public Security Zhao Kezhi in Beijing, according to the Korean Central News Agency (KCNA). The North Korean media outlet also reported that another delegation of the North Korean Central Court, led by president Kang Yun-sok, met with Guo Shengkun, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and head of the Commission for Political and Legal Affairs of the CPC Central Committee, in Beijing on July 16. The two sides discussed boosting exchanges and contact between the two countries' courts, and creating legal circumstances and favorable conditions for the development of bilateral relations. A memorandum of understanding on friendship, cooperation and exchange between the Central Court of North Korea and the Supreme People's Court of China was signed after the talks, said the report. Besides such frequent high-level communication on the legal front, a number of civil exchanges have been held in recent weeks to mark the 58th anniversary of the signing of the North Korea-China Treaty of Friendship, Cooperation and Mutual Assistance. Talks were held between Kim Song-nam, a first vice department director of the Central Committee of the Workers' Party of Korea, and Song Tao, head of the International Department of the CPC Central Committee, in Beijing on July 11, according to the KCNA. Wang Hui, an associate research fellow with the Northeast Asia Research Center of Jilin, told the Global Times that the apparently increasing exchanges on law enforcement and judicial cooperation are a result of Xi's visit to North Korea in June and the North Korean leader Kim Jong-un's four visits to China since March 2018. "Both leaders stressed the need and willingness to strengthen Party communication and people-to-people exchanges in their meetings. Cooperation on law is an expansion of Party exchanges and shows pragmatism in bilateral ties," Wang said. A source from China's Ministry of Public Security told the Global Times that law cooperation between the two countries is just the beginning. Wang noted that a possible purpose of the MPS' visit was to seek a solution for North Korean escapees. "A sensitive issue between China and North Korea is defectors attempting to escape North Korea through China. The two sides might discuss joint efforts to solve the issue," Wang told the Global Times. Indicators of warming relations between China and North Korea are not hard to find these days, especially after Xi's visit in June, analysts observed. During his visit, Xi emphasized the need to strengthen high-level contact to guide the development of bilateral relations. He also said that China is ready to work with North Korea to conduct exchanges and cooperate in such fields as education, health, sports, media and youth, the Xinhua News Agency reported. Meanwhile, Kim said that his country is willing to learn more experience from China and will endeavor to develop the economy and improve its people's livelihood, said the report. An anonymous Chinese diplomat told the Global Times that governmental exchanges between China and North Korea are to implement the consensus between the two leaders. In mid-July, the Information Department of China's Foreign Ministry, and a group of media representatives, paid a visit to North Korea, which was the first official visit of Chinese delegations after Xi's visit. Zhang Lingyun from Phoenix TV, a member of the delegation, told the Global Times that three North Korean media outlets said that they want Chinese media to report on what's really going on in North Korea. Zhang said that the country is changing in many aspects compared with her previous business trips there. Zhang said that many hotels which receive foreign guests provide Wi-Fi and charge less for the service, and taxis are quite popular in downtown Pyongyang. Zhang noted that the North Korean economy is still affected by international sanctions, with slow development in tourism and economic projects. An Guoshan, a deputy dean at the Northeast Asia Research Institute of Yanbian University, revealed that North Korea is eager to learn from China's laws regarding economic development during the initial stages of China's reform and opening-up, such as on land and taxation. "Obviously, North Korea wants to draw from China's experience in the development of their legal system and opening-up. The country does not have sufficient laws. Meanwhile, due to intertwined interests between different government organs, laws and regulations are difficult to enforce," An told the Global Times. An believes that North Korea is bound to develop economy as Kim announced a strategic shift toward economic development in 2018. Now, the nuclear issue is still pending in the Korean Peninsula despite three meetings between Kim and the US President Donald Trump. The two countries are mired in a diplomatic impasse, disagreeing about what each side should concede. Since the nuclear issue cannot be solved easily, a better option for North Korea is to focus on economic development and strengthening cooperation with traditional allies such as China and Russia, experts said. "As Trump gears up for his 2020 re-election campaign, so long as there is no nuclear weapons or ICBM testing in North Korea and the peninsula is quiet, the US will accept the status quo. In the meantime, Pyongyang is looking to erode sanctions and shore up relations in the region, especially with China and Russia," said Robert A. Manning, a senior fellow of the Brent Scowcroft Center for International Security at the Washington-based Atlantic Council. ^ top ^

 

Mongolia

Cabinet meeting news in brief (Montsame)
2019-07-24
At its regular meeting on July 24, the cabinet made the following decisions: To fund mission expenses, incentives, and other necessary costs for the emergency staff who worked in disaster areas in the first half of 2019 from the Government reserve fund. In the first six months of this year, 2608 disasters and accidents took 66 lives, injured 34, and killed 25 thousand heads of livestock, resulting in direct losses of MNT 5.5 billion. 17 thousand emergency and other relevant officials saved the lives of 684 persons and assets worth MNT 30 billion. To submit the revised draft Law on Government Special Funds to the Parliament after approving it. Presently, there are 29 Government special funds. It is expected that reorganization of the funds that account for about 30 percent of the total state budget expenditure will improve the fiscal discipline and bring social and economic benefits. ^ top ^

Cashmere forum suggests to establish joint high capacity plant (Montsame)
2019-07-23
The fourth edition of the Mongolia-China cashmere forum themed 'Expanding mutually beneficial cooperation' held today has made a recommendation. The recommendation about eco-friendly sustainable cashmere production, the two countries cooperation development in cashmere sector suggests a number of proposals including: To establish a joint final product plant with high capacity in Mongolia. To give Mongolian companies an opportunity to operate at the Agricultural Park in Bayannur, Inner Mongolia, China. To employ well-versed, experienced engineers and technicians of China in Mongolia and upskill Mongolian engineers and technicians at Chinese companies. To collaborate in promoting Mongolian quality products to the Chinese market. About the conference, Tian Hong, Director of CFNA Animal By-products Department, said "The two countries have ample opportunity to partner with each other in the big world market. Cashmere producers of the two countries have had numerous meetings. This time as well, we are learning from experience and achievements of one another and looking for ways to enter the world market." "We will develop together through joint studies and introduction of advanced cashmere processing technologies to enter that huge market," he added, while stating his willingness to initially exchange information and bring Mongolian cashmere products to the Chinese market to do so. ^ top ^

 

Jennia Jin
Embassy of Switzerland
 

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