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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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  2-6.9.2019, No. 784  
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Foreign Policy

Canada ambassador's China ties 'may help ease troubled relationship' (SCMP)
2019-09-06
The new Canadian ambassador to Beijing's extensive experience of living and working in China may help ease the ongoing diplomatic feud between the two countries, but a reset in relations would be difficult, according to observers. Diplomatic relations between Ottawa and Beijing have been at a stalemate since December, when Huawei executive Meng Wanzhou was detained in Vancouver at the request of the United States. Since then, two Canadians – former diplomat Michael Kovrig and businessman Michael Spavor – have been detained in China, in what was widely seen as a retaliatory move. Canadian exports to China – including canola seed, soybeans, pork and beef – have also been derailed by revoked licences, lengthy shipment investigations and other measures. Both governments also raised travel advisories to their respective countries in January. Dominic Barton, who served as global managing partner at consulting giant McKinsey from 2009 to 2018, is Canada's first envoy to Beijing since the sacking in January of previous ambassador John McCallum, over controversial comments in relation to the Meng case. While he will face significant hurdles in trying to reset ties between Beijing and Ottawa, analysts said his strong ties to Asia would serve him well. Barton led McKinsey's Asia practice for 12 years, including five in Shanghai. He also sat on the advisory board of China Development Bank, wrote a book about life in China, taught at Tsinghua University in Beijing, and served on the board of the Asia Pacific Foundation of Canada. Despite concerns about McKinsey's work with Chinese state entities under Barton's helm, Canadian Foreign Minister Chrystia Freeland said there was no conflict of interest, and that Barton would stress the importance of human rights in his new role. China's foreign ministry said on Thursday it looked forward to Barton actively working to "push China-Canada relations back onto a normal track". "Canada is very clear on this. We urge the Canadian side to reflect on its mistakes and take seriously China's position and concerns, to immediately release Meng Wanzhou so she can return home safely," ministry spokesman Geng Shuang said. Stephen Nagy, distinguished fellow at the non-profit Asia Pacific Foundation of Canada and senior associate professor at International Christian University in Tokyo, said Barton – an "East Asia hand" who understood China and its place in the region – would lend a more nuanced approach to building better relations. "He is well situated with his China experience, and also his broader Asia experience," Nagy said. "But can he fundamentally reset China-Canada relations at this particular time? I don't think he has much agency to fundamentally shift the challenges that have emerged over the past year, but that may depend on Canadian elections [next month]." Nagy said Barton would also need to grapple with the impact on Canada of China-US relations, adding it was not in Ottawa's interest to decouple from China, or for human rights to be a pillar of their relationship. "There will be a behind doors, values-based approach to diplomacy, but up front the focus will be on improving bilateral relations, trying to find convergences in national interests, and trying to find ways to cooperate to reset China-Canadian relations," he said. Benoit Hardy-Chartrand, adjunct professor teaching Chinese foreign policy and East Asian affairs at Temple University in Japan, said Barton's appointment showed the Canadian government was keen to reset its relations with Beijing, now in "one of the deepest bilateral crises" since relations were first established. But, he said, the relationship would be unlikely to see immediate improvement. "We may see some superficial and cosmetic improvements in the near future, but it is unlikely that we will see a significant rapprochement before the release of the Huawei executive, as [Chinese President] Xi Jinping will not want to give the impression that China's demands have been lowered." ^ top ^

Nine Chinese students from Arizona State University detained at Los Angeles airport and sent back to China (SCMP)
2019-09-06
Nine Chinese students who attend Arizona State University were denied entry into the US when they arrived at Los Angeles International airport last month and university officials are demanding to know why the students were sent back to China. The students were detained at LAX in the days before the start of classes on August 22 and were on their way to the university's Phoenix-area campuses, school officials said. But they were "deemed inadmissible" by Customs and Border Protection. University officials said all the students were academically eligible to return to ASU and to the US under their visas. A spokesperson for US Customs and Border Protection said in a statement that there are more than 60 reasons a foreigner might be considered inadmissible, including health-related grounds, criminality, security reasons and immigration violations. The statement said the Chinese students were deemed inadmissible "based on information discovered during the CBP inspection," but did not elaborate. A spokesperson for the US State Department referred all inquiries to Customs and Border Protection. All of the students were undergraduates and among them were at least one engineer, a student studying supply-chain management and some life sciences majors, a university official said. ASU officials remain in contact with the students, many of whom are continuing their studies through online or independent coursework. ASU President Michael Crow last week sent letters to the Department of Homeland Security, which has jurisdiction over Customs and Border Protection, and the State Department, requesting a review of each student's situation and an explanation of the "standard procedures" for screening international students and their electronic devices. "In our country, where we value due process and celebrate the different ways in which our government behaves from that of the arbitrary and capricious behaviour of other nations, it is beyond my comprehension how the US government could establish and implement policies that bring about the outcomes we are now witnessing," Crow wrote. A university official said on Wednesday that Crow had yet to receive a response. The ASU students' denial comes as other universities are also battling the federal government's policies and actions toward international students. On August 23, a Harvard-bound Palestinian student was turned away at Logan International Airport in Massachusetts. The student, Ismail Ajjawi, 17, told the Harvard Crimson that immigration authorities questioned him about his friends' social media activity and his religion. Ajjawi was allowed in on Monday, in time for the start of classes, after he "overcame all grounds of inadmissibility", a Customs and Border Protection spokesperson said. In a welcome letter to students Tuesday, Harvard President Lawrence Bacow lamented the obstacles international students and immigrants increasingly face coming to the US. "Various international students and scholars eager to establish lives here on our campus find themselves the subject of scrutiny and suspicion in the name of national security, and they are reconsidering the value of joining our community in the face of disruptions and delays," Bacow wrote. In California the UC system, which receives billions of dollars in federal money and has the most Chinese students and scholars in the US, is finding itself in the cross hairs of US President Donald Trump's trade war with China. Campuses from San Diego to Berkeley have reported that Chinese students and scholars are encountering visa delays, federal scrutiny over their research activities, and new restrictions on collaboration with China and Chinese companies. Overall, the number of student visas issued by the State Department has declined sharply in the past three years. The nine ASU students denied admission to the US represent a tiny fraction of the university's 13,000 international students, roughly 3,400 of whom come from China. ^ top ^

Sino-Arab cooperation, ties to flourish driven by Xi's vision (People's Daily)
2019-09-06
Following the trend of the times and respective development needs, China and the Arab states have in recent years made joint efforts in advancing the Belt and Road and achieved fruitful results, said Chinese President Xi Jinping in a congratulatory letter to the fourth China-Arab States Expo that opened Thursday. At the four-day exhibition in northwest China's Ningxia Hui Autonomous Region, more than 12,600 representatives from across the world are seeking opportunities for cooperation. Over the past years, with joint efforts, the expo has become an effective mechanism to enhance the booming trade and exchanges. Mohamed Khalil, the first doctor to create a medical center for traditional Chinese medicine in Morocco, is heading to the expo. Visiting the expo has always been an interesting experience for him to find out new things that can help China and participating Arab countries. "The expo is very important to develop the relations between China and the Arab world," said Khalil, also president of the Morocco-China Friendship and Exchange Association. Since 2010, Ningxia has seen three editions of the China-Arab States Economic and Trade Forum, and then the expo as an upgraded version of the forum. Representatives from over 140 large business associations, and 7,732 large and medium-sized enterprises and financial institutions have participated. "Exhibitions are essential for knowing products and cultures of other countries," said Essam Sharaf, former Egyptian prime minister. "Exhibitors will explain about their products, so visitors can also know more about their cultures and living conditions." Sharaf also considered the expo a platform to see what sci-tech development China has achieved, like its leading 5G technology. "The expo is a platform gathering different clusters of scientists, technology transfer officials, and industry," said Shaimaa Helal, head of the Egypt-China Technology Transfer Center. This year's expo attracts representatives from over 2,900 regional organizations, business associations, institutions and enterprises from around the world. It includes exhibitions and investment and trade promotion activities in modern agriculture, high technology, infrastructure and international logistics. The fourth China-Arab States Expo will offer a beneficial platform for the two sides to deepen pragmatic cooperation and push forward high-quality development of the Belt and Road, Xi said in the congratulatory letter. Jamil Dababat, a journalist from Palestine, is reporting on the expo for the first time. As more countries along the Belt and Road routes, including ones from Europe and Latin America, join the expo, "it is international, and the platform is very open," he said. "This year the expo focuses more on business and trade," Dababat said. "It becomes more professional and pragmatic." Kristina Uptain, a representative of the enterprise U2M INVEST, is also attending the expo, and has met people from many countries around the globe. She, along with Moroccan partners, plans to take part in a forum for investment in overseas industrial parks. The expo's grandness gives attendees a reason to believe that the platform will become larger and more efficient, said Uptain. Abdulla Al Saleh, undersecretary for foreign trade at the United Arab Emirates (UAE) Ministry of Economy, is leading a delegation to the expo. They are expecting to explore more cooperation in finance, food and renewable energy. Official statistics show China-UAE trade hit 45.92 billion U.S. dollars in 2018, up 12 percent from 2017. In 2018, the Gulf nation invested in 31 projects and businesses in China. The booming China-Arab cooperation benefits more. Here are some rankings: China has become the Arab world's second largest trading partner; the largest trading partner of the UAE, Saudi Arabia and Iraq; Kuwait's largest non-oil trading partner; Egypt's second largest trading partner; Qatar's third largest trading partner. More projects have been developed under the China-proposed Belt and Road Initiative (BRI) and a Sino-Arab future-oriented strategic partnership of comprehensive cooperation and common development. The Chinese projects in Yanbu in Saudi Arabia include the building of five 660-megawatt oil-fired power plants and a 550,000-cubic-meter seawater desalination facility. In the Moroccan city of Ouarzazate, the gateway to the Sahara Desert, two of the world's largest solar power plants were constructed by Chinese company SEPCO III and had delivered hundreds of millions of kilowatt-hours of electricity to the Moroccan grid as of January, and offered over 13,000 job opportunities for local residents in over three years. In Ramallah, a Palestinian city in the central West Bank, a Chinese-funded project worth 8 million dollars was launched last November to pave nine roads with a total length of more than 7.5 km to help ease the traffic problem there. In Iraq's eastern province of Wasit, a huge power plant, the largest in the country, is being constructed by Chinese companies and designed to produce some 20 percent of Iraq's total power supply. China and the Arab states are jointly building a "Space Silk Road" with the application of China's Beidou Navigation Satellite System, which has been applied in many Middle Eastern countries including Tunisia, Algeria, Kuwait and Sudan for precision agriculture, telecommunications, maritime monitoring and disaster relief. What's behind these economic achievements is boosted political ties. Xi paid state visits to Egypt and Saudi Arabia in 2016, and the UAE in 2018. Among Arab leaders who have visited China in the past years are Palestinian President Mahmoud Abbas, Egyptian President Abdel-Fattah al-Sisi, King Salman bin Abdulaziz Al Saud of Saudi Arabia and King Mohammed VI of Morocco. Calling the Arab states China's natural partners in Belt and Road cooperation, Xi said at the opening ceremony of the eighth ministerial meeting of the China-Arab States Cooperation Forum in July 2018 in Beijing that the cooperation had energized every dimension of Sino-Arab relations and propelled Sino-Arab all-round cooperation into a new phase. The success of both China-Arab states' cooperation and China's development can mainly be attributed to China's opening-up and the BRI, said Sharaf, now a committee member of the Silk Road NGO Cooperation Network. Arab and African states can expand cooperation with China and learn from China's experience, for example in infrastructure, through the BRI, he added. Inaugurated in 2013, the China-Arab States Expo has become an important platform for China and Arab countries to jointly pursue the BRI. In his congratulatory letter, Xi expressed hope that the two sides could seize the opportunity and tap the potential to jointly promote their strategic partnership to make greater progress for the benefit of the people from both sides. ^ top ^

Chinese premier, German chancellor hold phone talks on ties (Xinhua)
2019-09-05
Chinese Premier Li Keqiang on Wednesday evening held a phone conversation with German Chancellor Angela Merkel, with the two countries agreeing to promote bilateral cooperation. Li and Merkel spoke positively about the progress made in Sino-German relations and cooperation in the phone talk held upon the invitation of the German side. The German side attaches importance to developing relations with China, said Merkel, who has made 11 trips to China as German chancellor. The chancellor said she looks forward to strengthening bilateral cooperation during her upcoming 12th visit. Germany expects the visit to demonstrate that Germany and China will maintain a sound development momentum of bilateral relations in the face of the current complicated international situation, Merkel said. Li welcomed Merkel's visit to China, and said the two countries face many common challenges against the background of profound and complex changes at the international level. China stands ready to work with Germany to enhance understanding and mutual trust, strengthen comprehensive cooperation, uphold multilateralism and free trade, and promote the sustained and healthy development of bilateral relations, Li said. The two sides also exchanged views on issues of common concern. ^ top ^

Russia welcomes Chinese investment, says Putin (Xinhua)
2019-09-05
Russian President Vladimir Putin said on Thursday that his country welcomes Chinese investment and expects more positive outcomes from bilateral cooperation. Putin made the remarks here at a meeting with visiting Chinese Vice Premier Hu Chunhua on the sidelines of the fifth Eastern Economic Forum (EEF). Putin thanked the Chinese high-level delegation for participating in the forum and asked Hu to convey his sincere greetings to Chinese President Xi Jinping. This year marks the 70th anniversary of diplomatic ties between the two countries, said Putin, adding that strengthening Russia-China cooperation in different areas is of special significance and there is huge potential for such cooperation to expand. By coordinating with each other, Moscow and Beijing play important roles in international issues, the Russian leader said, adding that with concerted efforts of the two sides, economic and trade ties between the two countries are also growing steadily. Hu conveyed the Chinese president's cordial greetings and best wishes to Putin, saying that Xi attended the fourth EEF last year and sent him to attend the fifth EEF this year, which shows that China attaches great significance to its relations with Russia. Recalling that Xi and Putin elevated bilateral relations in Moscow in June to a comprehensive strategic partnership of coordination for a new era, Hu said that China is ready to work with Russia to implement the important consensuses reached by the two presidents and continuously push bilateral ties forward. China-Russia economic and trade ties have improved over the recent years, and relevant departments of both countries are working to achieve the target of 200 billion U.S. dollars in bilateral trade volume by 2024 set by Xi and Putin, Hu said. In addition to trade in traditional areas, China supports the two sides in fostering new areas of growth, implementing major projects of strategic significance, further facilitating trade and investment, expanding trade in agricultural products, and boosting cross-border e-commerce and trade in services, he said. Also on Thursday, Hu met with Russian Deputy Prime Minister Yury Trutnev to discuss intergovernmental cooperation between China's northeastern region and Russia's Far Eastern and Baikal regions. ^ top ^

'Substantial progress' viable: MOFCOM (Global Times)
2019-09-05
China and the US will strive to achieve "substantial progress" in the upcoming 13th round of trade consultations in early October in Washington, Chinese officials said on Thursday, which analysts said transmitted a positive signal that both sides were willing to sit down and discuss common goals after being locked in an impasse. The wording, widely seen as a rare occurrence, led some Chinese analysts to predict that certain headways might actually be made in October such as the removal of tariffs or purchases of agricultural products. Also important to take from the announcement of a resumption of talks was the calm and abstinence exhibited by Chinese policymakers, they said, amid maximum US pressure ranging from the crackdown on Huawei to meddling in Hong Kong. China is not letting itself be kidnapped by emotions and retains its own tempo of economic development, the experts said. Chinese Vice Premier Liu He had a phone call, by invitation, with US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer on Thursday, during which the two sides agreed to hold the 13th round of China-US high-level trade consultations in Washington in early October, China's Ministry of Commerce (MOFCOM) said on Thursday. In late July during the 12th round of trade talks in Shanghai, China and the US agreed to continue negotiations in Washington in September. The slightly delayed schedule for the talks came after the US began on Sunday levying a 15 percent tax on an estimated $125 billion of Chinese products including clothing, footwear, sunglasses, cameras, television components, turkeys and beef cuts. MOFCOM spokesperson Gao Feng told a press briefing on Thursday that the two delegations will strive to achieve "substantial progress" in October on the basis that both teams were fully prepared for the negotiations. The two sides will hold consultations in mid-September to prepare, he said. Chinese observers noted that any mention of "substantial progress" was quite rare in an official statement with regard to China-US trade talks, raising hopes of breakthroughs in October on issues of common concern. "The postponement of talks may be a result of both sides having the intention to sit at the trade table so that negotiators need more time to prepare," Huo Jianguo, vice chairman of the China Society for World Trade Organization Studies, told the Global Times on Thursday. Song Guoyou, director of Fudan University's center for economic diplomacy, also noted that for the talks, both countries will hold a "very serious and sincere attitude" to resolve current difficulties with the aim of preventing worsening trade tensions from plunging into an abyss, leaving no space to recover. "The US is not as confident now as [it was] when the trade war had just started," Song said. Compared with China's box of tools to shore up its economy, the US government has more need to make a deal as the US economy and stock market bear the brunt of a boiling trade war, Huo said. "As the next US presidential election looms, US President Donald Trump himself is also desperately begging for more votes," Huo said. "The most effective option for him is to nail a deal with China to stabilize the US economy." The US manufacturing Purchasing Managers' Index (PMI) contracted to 49.1 in August amid the trade war, its lowest level in more than three years. And the yield curve of the US Treasury is also inverted, among the most consistent indicators of an economic recession. Song predicted that at the October talks, China may agree to buy more agricultural goods. On the other hand, he guessed, the US may also "press a pause button" on slapping additional tariffs in December on Chinese goods. The US plans to levy new tariffs on a remaining $175 billion of Chinese imports on December 15. However, the analysts noted that Washington's flip-flopping and aggressive tactics were casting a shadow over the prospects of a deal. "It's still uncertain whether the US will again play the face-off game to ruin the fruits both sides reached through negotiations," Song said. Chinese officials have stated that all US tariffs on Chinese imports during the yearlong trade war must be scrapped as part of any trade deal. Trump has been lashing out at China's trade and economic policies. He tweeted on Tuesday saying that when the US won the trade war, "the deal would get much tougher, and China's supply chain will crumble and businesses, jobs and money will be gone." Mei Xinyu, an expert close to MOFCOM, told the Global Times Thursday that the US must realize it cannot prod China into a trade deal, otherwise it could render "storming retaliative measures" from the Chinese government. "As far as I know, Chinese policymakers still have numerous financial tools at hand to hit back at the US and so far they have been quite restrained in responding to US aggression," Mei said. Chinese government officials were showing extreme calm in trade talks under US maximum pressure tactics, Mei said. "Policymakers are clear-minded. They have prepared themselves for back-and-forth during the trade war and do not aim for a quick resolution with the US. Rather they're getting fully prepared by prioritizing China's own economic growth." ^ top ^

 

Domestic Policy

Xi Jinping rallies China for decades-long 'struggle' to rise in global order, amid escalating US trade war (SCMP)
2019-09-05
Chinese President Xi Jinping has rallied Communist Party cadres to meet the country's coming "struggles" and ensure a "great national rejuvenation" by 2049, signalling that China is preparing for continued friction with the US and other Western powers over the next three decades. In a speech on Tuesday, Xi said China must go through "great struggles" to achieve the "Chinese dream" of national rejuvenation – a term popularised under the rule of Xi, who could stay in power China well beyond the previously standard two five-year terms. Xi said the country will inevitably undergo "all manner of struggles " before it becomes a "powerful socialist country" in time for the 100th anniversary of its founding as the People's Republic of China, which takes place in 2049. Xi was speaking at the opening ceremony of a training programme for young and middle-aged officials at the Central Party School, the training base of senior Communist Party cadres. His emphasis on "struggle" – a term that can also be translated from Chinese as "fight and argue" – comes as a rising China under one-party rule is in the grips of a bitter trade war with the United States. Tensions are also high on geopolitical and ideological fronts, with rising suspicion and mistrust of China throughout the West. This has given rise to fears of a "new cold war", a "clash of civilisations" and a "Thucydides Trap" scenario that would see China and the US locked into an inevitable path to war. The summary of Xi's speech, published by the official Xinhua news agency, does not mention China's rivalry with Western democracies or the US trade war, but made clear that China would not make concessions over "core issues" or change its model of governance. "For those risks or challenges that jeopardise the leadership of the Communist Party and China's socialist system; for those that endanger China's sovereignty, security and development interests; for those that undermine China's core interests and major principles; and for those that deter China's realisation of a great national rejuvenation, we will wage a determined struggle against them as long as they are there. And we must win the struggle," Xi said. Analysts viewed Xi's speech as a tougher response to rising hostility towards what China perceives to be its legitimate pursuit of its "national greatness", lost in a "century of humiliation" at the hands of Western powers over the course of the 19th and 20th centuries. Wu Qiang, a political commentator in Beijing, said that the speech was a "political declaration of antagonism" towards those trying to change China's model or thwart its rise. "It is a fundamental political statement," said Wu. "China will adopt an antagonist stance, position and approach to handle the deterioration in China-US relations." Pradeep Taneja, a Chinese politics and international relations expert at the University of Melbourne, said that Xi's use of the word "struggle" reflects a shift in his reading of China's external challenges. "It betrays a siege mentality – the thinking in Beijing among the top leadership now is that China is under siege," he said, which could mean China is less able "to reach compromises with other international powers" on global governance. The Chinese word douzheng, which is translated as "struggle", appeared nearly 60 times in the speech's summary. A hallmark term in Chinese politics during the Cultural Revolution, its use faded from official rhetoric in recent decades, as former paramount leader Deng Xiaoping started economic liberalisation at home and kept a low profile abroad, a policy continued by former presidents Jiang Zemin and Hu Jintao. An opinion piece on Xiakedao, a social media account run by the overseas edition of People's Daily, said that China would be forced to engage in a number of different struggles. "Struggle is always an uninvited guest and it will not go away because of our good intentions," it read. "The trade war between China and US, for instance, broke out all of a sudden. Nobody officially notified us, even one day in advance, about the upcoming trade war," the editorial reads. "It just came. That is a struggle." The piece claimed that China did not invite disputes such as the trade war, but must be ready to engage. "If you push us to show our sword, you will see it," it warned. Xi said China should not "give up an inch on principal issues" but must be flexible in tactics, to achieve unity and "a win-win out of the struggles". Xi took a poetic turn to tell Communist cadres they must be able to "notice a deer passing by, looking at the grass and leaves, see a tiger jumping out by hearing the wind in the pines, and know the coming of autumn by spotting the changed colour of a tree leaf". Li Mingjiang, an expert in international studies at Nanyang Technological University, said Xi was trying to "stimulate morale" amid an increasingly bumpy relationship with the US. Li acknowledged that the repeated reference to "struggle" could look "quite scary" to outsiders, since it could stir fears of China using "unilateral coercion to get what it wants". However, he said that the real meaning is more nuanced. "It is not just an all-out confrontational approach to get what you want, to subdue your rivals or enemies – it is also about flexibility, and the art of the struggle," Li said. ^ top ^

Xi stresses efforts to raise cultural-ethical standards (Xinhua)
2019-09-05
Chinese President Xi Jinping has stressed efforts to promote the campaign on raising public cultural-ethical standards, so as to foster a new generation capable of shouldering the mission of national rejuvenation. Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the instruction concerning the selection and honoring of national-level ethical role models. Extending congratulations to the role models, Xi said the honoring is of great significance in improving social norms, promoting positive energy and encouraging people to strive for excellence and virtue. The role models' stories should be widely spread and people should be guided to learn from them, Xi said. Stressing the importance of nurturing and practicing core socialist values, Xi called for efforts to raise public ethical standards and enhance work ethics, family virtues and personal integrity, and demanded a powerful source of strength and strong moral support for the hard work to realize the Chinese Dream in the new era. Wang Huning, a member of the Standing Committee of the Political Bureau of the CPC Central Committee and a member of the Secretariat of the CPC Central Committee, met with representatives of the award-winning models at a symposium held in Beijing Thursday. Xi's instruction was read out at the symposium by Huang Kunming, a member of the Political Bureau of the CPC Central Committee and head of the Publicity Department of the CPC Central Committee. At Thursday's symposium, a decision to honor 58 people as ethical role models was announced, while recognition was also given to another 257 nominees for the awards. ^ top ^

China's latest efforts to focus on fine tuning 'weak economic links' as downward pressure mounts (SCMP)
2019-09-05
China is continuing to push ahead with fine tuning policy rather than engaging in a large-scale easing even as analysts begin to revise down their expectations for growth next year amid the escalation of trade tensions with the United States. The country's cabinet, the State Council, on Wednesday ordered government agencies to more effectively use the countercyclical adjustment tools at their disposal. Specifically, it called for more subsidies for low-income consumers, more special purpose bond issuance to fund additional spending on infrastructure and other projects and a timely cut in market interest rates and the amount of money that banks are required to hold in reserve at the central bank. "We need to focus on the weak links [in the economy] and expand effective investment," said a statement released after the meeting chaired by Premier Li Keqiang. "Also, we must fine-tune our monetary policies, accelerate the implementation of rate-cut measures, and deploy in a timely manner both a universal and a targeted cut of the required reserve ratio." The State Council also called for the coordination of government efforts to stabilise economic growth, which is approaching the bottom end of the 6 to 6.5 per cent target range for this year. Many private sector analysts are predicting that growth will slow below 6 per cent next year, with the US set to add new 15 per cent tariffs on around US$160 billion of Chinese imports in mid-December, meaning virtually all goods will be subject to levies by the end of the year. To lift overall investment after growth fell to a historically low level of 5.7 per cent between January to July, the government has brought forward the 2020 quota for local government special bond issuance into this year to ensure the continuation of construction momentum with this year's quota expected to be exhausted later this month. In March, the national legislature approved a total of 3.08 trillion yuan (US$430 billion) in new local government bond issuance this year, including 2.15 trillion yuan of special purpose bonds. More than 2.55 trillion yuan, or 83 per cent, of this year's quota had been issued by the end of July, with a dozen provincial level governments including the likes of Henan, Liaoning, Beijing, Shanghai, Fujian, Zhejiang and Guangdong having already used up all of their allocation for this year. The State Council also increased the scope of projects for which the proceeds raised from special purpose bonds could be used for. Previously, such capital could only be used in areas including transport infrastructure, urban facilities and water conservation projects. This was expanded to include occupational education, child and elderly care and energy projects, although land reserves and property development remained forbidden, according to the statement. Given the increase in funding, the National Development and Reform Commission (NDRC) has also sped up the approval of new projects. The government's economic planning agency said on Tuesday that it had approved the extension of the Fuzhou Changle International Airport in Fujian province at a cost of 21.2 billion yuan (US$3 billion). Infrastructure construction, though, grew only 3.8 per cent in the first seven months of 2019. Tang Linmin, a researcher with the China International Futures, said the special bond is now the most important tool to fund infrastructure construction and leverage the participation of social capital. "Given that the effect of efforts to boost consumption have yet to fully show results and trade shocks remain huge, investment is the only tool that the government can control and rely on [to boost growth]", Tang said. Since local government special purpose bond issuance is not included in the calculation of the fiscal deficit ratio, which is subject to the approval of the National People's Congress, the use of such bonds gives Beijing's policymakers more flexibility in handling the slowdown of investment growth. Wen Bin, chief macro analyst at China Minsheng Banking Corporation, said there could be a cut in the required reserve ratio for all banks by 50 basis points as well as an additional 50 basis point reduction for selected large banks in the short term, given the cabinet made such cuts an explicit requirement. The monetary authority could also lower the interest rate on its medium-term lending facility (MLF), which it uses to inject liquidity into the banking system to boost lending, he added. The MLF interest rate, linked to the new benchmark loan prime rate, could be cut by 10 basis points when the People's Bank of China rolls over 265 billion yuan (US$37 billion) of MLF securities on September 17, according to Wen. "There is still indeed a funding gap for infrastructure projects if China wants to stabilise economic growth at 6.0 to 6.2 per cent for the rest of the year," said Wu Ge, chief economist at Changjiang Securities, last week, predicting a funding gap of more than 2 trillion yuan (US$280 billion) in the second half of 2019. "Broad fiscal spending has actually decreased if one considers the decline in shadow banking and non-standard investment. It partly explains low infrastructure construction despite an increase in local bond issuance." Despite the increase in the bond issuance limit for this year, many local governments still faces the restraint of debt caps, a key criteria in the country's multi-year campaign to reduce debt and risky lending. A deputy county magistrate in a western region, who asked to remain anonymous, said the provincial governments fiscal department allocates the proceeds of special bond issuance to local governments at the beginning of each year, but the allocation is based on the debt levels of the local governments. The unnamed county only received 200 million yuan (US$30 million) from special bond issuance this year due to its debt cap, the official said. Instead, the county is now pinning its hopes on builders and local financing vehicles to raise more capital through market operations, although that is difficult in the current economic environment. ^ top ^

Xi: Improve telling of China story to world (China Daily)
2019-09-05
President Xi Jinping called on the China Foreign Languages Publishing Administration to further enhance its communication capacities and better tell China's stories to the outside world. Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remark in a congratulatory letter on Wednesday to honor the administration's 70th anniversary. Xi said the administration has played an important role in introducing China's development and changes to the world. He also praised its efforts to facilitate international exchanges and tell China's stories and convey its voices to the world. Xi called on the administration to build itself into a world-class international communication institution with comprehensive strength to better introduce China in the new era and present a true, multidimensional and panoramic view of China. Xi's letter was read at a symposium in Beijing by Huang Kunming, a member of the Political Bureau of the CPC Central Committee and head of the Publicity Department of the CPC Central Committee. Huang said it shows the expectations and high value that the central leadership places on publicity work. Huang encouraged the administration to better shoulder its responsibility and further spread Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to the world. "It should also make new achievements on telling stories of China and better promoting communications and mutual learning between the country and the world," he said. The administration, also known as China International Publishing Group, was founded in 1949 to introduce New China to foreign countries through books, magazines and other media. In seven decades, it has produced some 80,000 types of publications with a total volume of nearly 1.9 billion issues. It now has 34 subsidiaries in 13 foreign languages and publishes over 4,000 kinds of books in 40 languages every year. "We are proud to take the responsibility of introducing China to the world, which is also our mission," said Du Zhanyuan, head of the administration. To do so, it will continue developing talent, strengthening research and promoting integrative development, he said. ^ top ^

Xi Jinping singles out Hong Kong, Macau and Taiwan as major risks for Chinese Communist Party (SCMP)
2019-09-04
Hong Kong, Macau and Taiwan have been singled out by Chinese President Xi Jinping as major risks and challenges that Communist Party members must "struggle against". In a speech to officials on Tuesday, Xi listed a number of challenges facing the country, even putting this specific category ahead of "foreign affairs" despite the global economic and strategic challenges China faces, including the trade war with the United States. The other risks identified by the Chinese president include economics, politics, culture and the environment, according to state news agency Xinhua. In his speech, which was delivered to hundreds of mid-career officials at the Central Party School, he said: "Cadres must be vigilant to any wind of change. They must know a deer passing by the rustle of grass and leaves, they must know the coming of a tiger by feeling the wind, they must know the arrival of autumn by the colour of one leaf." He urged the officials to ready themselves so they can "win in any struggle" and face down challenges to the Communist Party's rule, national sovereignty and Beijing's goal of national rejuvenation. However, Xi also stressed that cadres must master the "art of struggles" and learn to be flexible. "[We must] focus on the main contradictions … and choose the methods of struggle in reasonable ways," Xi said. "[We should] have a good grasp on [how to carry out] the struggles and that means we cannot give even an inch on issues of principles but must be flexible on strategic issues." Xi's speech came on the eve of the announcement by Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor that she would formally withdrawal the much-despised extradition bill that triggered a wave of anti-government protests. The unrest in the city also prompted Beijing to conduct a risk assessment on Xi's plans to visit Macau later this year to celebrate the 20th anniversary of its handover from Portuguese rule. Tensions have also been growing between Beijing and Taiwan since the independence-leaning Democratic Progressive Party came to power three years ago. In the run-up to a presidential election on the island in January, the mainland authorities have banned solo travel to Taiwan, citing worsening cross-strait ties. A commentary published on Wednesday on Xiakedao, a social media platform run by party mouthpiece People's Daily, hinted that Beijing expected the situation in Hong Kong would not be resolved quickly. "There is a black hand of 'colour revolution' behind the violent crimes in Hong Kong," the commentary say, referring to a series of uprisings in former Soviet republics in the early 2000s. "The general secretary [Xi] pointed out that there will be risks of all sorts and [the situation] will become even more complicated." This was not the first time "Hong Kong, Macau and Taiwan" have been identified as a risk by Beijing. The same description was cited in a directive issued by the Communist Party's Central Committee in 2017 to guide officials on how to study Xi's speech to the 19th party congress. Zhang Lifan, a Beijing-based political commentator, said the emphasis on Hong Kong, Macau and Taiwan in the president's latest speech highlighted the delicate situation in the three territories from Beijing's perspective. "The representation is not new but it reflects that Beijing sees the strategic importance and the far-reaching influence of the three regions," Zhang said. "Beijing sees a greater threat of subversion [to its power] from these three regions if [the problems] are not handled well." ^ top ^

China issues white paper on nuclear safety (Xinhua)
2019-09-03
China on Tuesday issued a white paper to introduce its approach to nuclear safety. Titled "Nuclear Safety in China," the white paper was released by the State Council Information Office to elaborate on China's basic principles and policies in the field, share the concepts and practices of regulation, and clarify its determination to promote global nuclear safety governance and the actions it has taken to achieve this, according to the document. Over the past 70 years, China's nuclear industry has grown from scratch, developed steadily and formed a complete system, which has made an important contribution to ensuring energy security, protecting the environment, improving people's living standards and promoting high-quality economic development, said the white paper. "China has always regarded nuclear safety as an important national responsibility, and integrated it into the entire process of nuclear energy development and utilization," it said. China's nuclear industry has always developed in line with the latest safety standards and maintained a good safety record, pursuing an innovation-driven path of nuclear safety with Chinese characteristics. As an important advocate, promoter and participant in building a fair, collaborative and mutually beneficial international nuclear safety system, China has done a good job in ensuring its own nuclear safety, fulfilled its international obligations, and promoted bilateral and multilateral cooperation on nuclear safety, said the white paper. China has actively promoted the peaceful use of nuclear energy for the benefit of all humanity and contributed its wisdom and strength to global nuclear safety governance, it added. The main body of the white paper was divided into six sections: following a rational, coordinated and balanced nuclear safety strategy, building a policy and legal framework on nuclear safety, ensuring effective regulation of nuclear safety, maintaining high-level safety, co-building and sharing nuclear safety and building a community of shared future for nuclear safety. ^ top ^

 

Beijing

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Shanghai

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Guangdong

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Tibet

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Xinjiang

Xinjiang party chief Chen Quanguo orders officials to keep up the pressure in the run-up to China's National Day (SCMP)
2019-09-05
The Communist Party chief in Xinjiang has told security forces and officials to "maintain high pressure" in the region ahead of the 70th anniversary celebrations for the People's Republic of China. In a speech on Monday, Chen Quanguo said they had to "resolutely implement measures to maintain stability" in the region, where Chen has overseen the mass incarceration of an estimated million Uygurs and other Muslims in the name of countering what the government calls "religious extremism". "We should … keep the alarm bells ringing and stay constantly vigilant, maintaining high pressure, allowing the region to reap the benefits of stability, and taking effective steps to ensure the overall social situation in Xinjiang continues to be harmonious and stable," Chen said. Observers said his comments were a reminder that officials and the security forces had to maintain order in the run-up to the National Day celebrations on October 1 – a milestone event for which the government has meticulously prepared. "[Chen] seems determined to deter possible unrest or complacency in the lead up to the 70th anniversary celebrations," said James Leibold, associate professor of politics and Asian studies at La Trobe University in Australia. "I question the sustainability of this high-pressure posture, and wonder if his speech is a sign that senior party leaders share this concern, and thus are seeking to rally the troops, and keep the pressure on." While security concerns are top priority nationwide, they are of particular importance in Xinjiang, which state media has described "the main battleground in China's anti-terror war". The crackdown in Xinjiang followed a series of attacks linked to Uygur separatists, including one in Tiananmen Square in 2013 that left five people dead and 38 wounded. The following year a mass knife attack in the southwestern city of Kunming and a series of explosions in Xinjiang's capital Urumqi each led to more than 30 fatalities. Chen, who was formerly the party boss in Tibet, has burnished his own leadership credentials in Xinjiang with no major incidents under his watch and observers said his speech was an implicit reminder to maintain surveillance and control at a sensitive time. "All of this has been wearing the security forces out, the police have been highly stretched and government officials have been stretched," said Adrian Zenz, an independent researcher based in Germany who has closely monitored the development of the internment camps. Chen's address could be seen as a "motivational speech to his forces" who may be wearying of long patrols and monitoring activities, said Zenz. But despite Chen's call to "maintain high pressure", a term he has previously evoked to describe the iron grip maintained over the region, Zenz said it did not contradict suggestions that Beijing may scale back the use of internment camps by allowing some detainees to re-enter society or join work programmes while sending others to prison. Speaking in March at the National People's Congress, Shohrat Zakir, chairman of the Xinjiang government, said that the number of people in the "vocational training centres" was growing smaller, and they could eventually be phased out when "society no longer needs them". A state media report released at the end of June called them an "interim success". Instead, the policy focus in the future may be more attuned to Chen's calls to stabilise the "overall social situation". Party officials have begun to place more emphasis on poverty alleviation in Xinjiang – a key policy goal of President Xi Jinping. Chen's own calendar this week reflected that shift: on Wednesday he delivered another address, focused on reducing poverty in Xinjiang's poorest counties. ^ top ^

 

Hongkong

Hong Kong public voice support for chief executive's call for dialogue (Xinhua)
2019-09-06
Members of the public in China's Hong Kong Special Administrative Region (HKSAR) have expressed support for Chief Executive Carrie Lam's call for dialogue to find a way out of the current impasse. Lam announced four actions to initiate a dialogue on Wednesday, including to formally withdraw the proposed amendments to the Fugitive Offenders Ordinance and the Mutual Legal Assistance in Criminal Matters Ordinance in order to fully allay public concerns, fully support the work of the Independent Police Complaints Council (IPCC), reach out to the community to start a direct dialogue, and to invite community leaders, professionals and academics to independently examine and review the society's deep-seated problems, and advise the government on finding solutions. On Thursday, 13 movie and entertainment companies in Hong Kong made a joint public statement, calling on all sides to expand communication, replace confrontation with dialogue and return to reason and rationality. Richard Li Tzar-kai, the chairman of Pacific Century Group, said in a published statement on Thursday that Hong Kong's long-term prosperity and stability depend on the sustainable implementation of the "one country, two systems," principle. "Violence has caused sweeping economic damage and divided society, which is truly saddening." Violence in Hong Kong needs to be immediately stopped and social order needs to be restored through the rule of law, he said. Li said he supports the administration team of the HKSAR to carry out dialogues with people from all walks of life and with the young people to continue to develop Hong Kong's economy, maintain its international status, and create a better future for Hong Kong and its next generation. The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) said in a statement that it is the common aspiration of the Hong Kong people to end the unrest, stop the violence, restore social order as soon as possible. The DAB said that the Hong Kong society should denounce violence so as not to further disrupt social order and hurt Hong Kong's economy, which will cause damage to the whole society. Jonathan Choi Koon-shum, chairman of the Chinese General Chamber of Commence of Hong Kong, said that it helps to ease the recent tension in the society as the HKSAR government takes Hong Kong's general interest into account and listens to opinions from all sides. The four actions announced by Carrie Lam represents an important step forward in building a platform for dialogue among all walks of life in Hong Kong to jointly find solutions to the political, economic and social problems facing Hong Kong, said Choi. Peter Lee Ka-kit, the co-chairman of Henderson Land Development Company Limited, said that he fully supports the decision by the HKSAR government. In the future, everybody should work together to repair the division through dialogue and communication, he said. Peter Lam Kin-ngok, the chairman of the Hong Kong Trade Development Council, said that people from all walks of life in Hong Kong should carry out constructive dialogue and discuss profound social problems to find a way out, and bring Hong Kong to refocus on developing economy and improving people's livelihood. ^ top ^

Beijing supports me all the way, Hong Kong leader Carrie Lam says, stressing decision to withdraw extradition bill was hers (SCMP)
2019-09-05
The decision to withdraw the contentious extradition bill was hers, Hong Kong's embattled leader has stressed, as she revealed that the central government had been supportive of her "all the way" and fully understood and respected her calls over the entire three-month-long crisis. Chief Executive Carrie Lam Cheng Yuet-ngor on Thursday also maintained she had not changed her mind over the bill, saying the legislation's withdrawal was no different in substance to her earlier decisions to suspend it on June 15 or call it "dead" on July 9. In announcing her decision on Wednesday, Lam also ruled out a second key demand from protesters – the setting up of an independent commission of inquiry to investigate police conduct when tackling demonstrations. Asked about it at a press conference a day later, the chief executive said the Independent Police Complaints Council (IPCC) would conduct a fact-finding exercise instead and warned against labelling the watchdog a pro-establishment body on the basis that no opposition politician had been appointed to the council in recent years. "It is a credible and independent statutory body and everyone I have appointed to the IPCC takes their independence seriously. We should not doubt them," she said. Opposition lawmakers were not impressed by Lam's remarks on Thursday, saying the chief executive failed to explain how her decision would end social unrest, especially when Beijing had called on all Hong Kong institutions with public authority, including the judiciary, to fight "violent criminals" with no mercy. But pro-establishment legislators said while there was no guarantee violence could be stopped in the near future, it was time to move on. Lam's 45-minute press conference on Thursday came a day after she made a dramatic U-turn by announcing that she would formally withdraw the bill, which had sparked the city's protest crisis since early June. In a pre-recorded video message, Lam also said on Wednesday she would invite professionals and academics to examine the city's deep-rooted problems, while she and principal officials would reach out to different communities to start direct dialogues. She also said she would fully endorse the IPCC's work by inducting new members and overseas experts. But even though she was finally acceding to one of the demonstrators' five demands, protesters and politicians alike doubted it would do much to ease roiling tensions fuelled by increasingly violent clashes between police and protesters. The protesters also want Lam to grant amnesty to those who have been arrested, stop characterising the protests as riots and restart the city's stalled political reform process. Lam reiterated on Wednesday she would not give in to the first two demands and that political reform could only be done "in an atmosphere that is conducive to mutual trust". At Thursday's press conference, Lam said the government's "comprehensive" response must not be seen as being too little, too late. "I have announced a package of four actions. I hope that it will provide a basis for a dialogue and help Hong Kong to break the current impasse," she said. But while Lam insisted she had not changed her mind about ways to handle the bill, she said it was after a meeting with 19 community leaders in late August that she agreed the legislation should be withdrawn. "Two weeks ago, we met a lot of people from different backgrounds with different political positions, and they gave me this piece of advice … the withdrawal of the bill to fully allay public concerns is [an important basis] for a dialogue," she said. "It is not exactly correct to describe this as a change of mind. You will remember on June 15 … I announced the suspension of the bill." Lam also insisted Beijing respected and supported her administration's announcement. "The decision was made by the Hong Kong government … The central government understands why we had to do it, they respected my views and they supported me all the way," Lam said. "We would like the peaceful demonstrators not to go together with … the really violent protesters who have been attacking our public infrastructure." Opposition lawmakers accused Lam of offering a "fake concession" intended to pave the way to invoke the Emergency Regulations Ordinance, which would give her sweeping powers to make any regulations if it was considered a matter of "emergency or public danger". But Lam denied she was doing so, maintaining that the only goal of her announcement on Wednesday was to find a way to get a breakthrough. Brian Leung Kai-ping, who fled the city after becoming the only protester to remove his mask in front of the media during the storming of the Legislative Council on July 1, suggested Lam had missed the point. "The situation is not de-escalating. What we need is concrete institutional guarantees, not pulling strings to personally rid oneself of responsibilities and international pressure," he said. Labour Party lawmaker Fernando Cheung Chiu-hung said only a relaunch of democratic reform could set the people at ease. "Our young people and the whole society has been awakened, but Lam still lives in [the Hong Kong of] three months ago," he said. Disagreeing, Federation of Trade Unions legislator Michael Luk Chung-hung said it was time to move on. "Everyone who loves Hong Kong will hope Lam's decision helps to stop the violence, though I am also worried whether that goal can be achieved. I very much hope I'm wrong, and my worst fears will not come true." After the press conference, Lam and the city's mainland affairs chief Patrick Nip Tak-kuen travelled to Nanning in Guangxi to meet mainland Chinese officials at the annual Pan-Pearl River Delta regional cooperation conference, due to start on Friday. ^ top ^

After extradition bill withdrawal, Hong Kong launches global ad campaign to reassure investors (SCMP)
2019-09-05
The Hong Kong government has launched a global advertising campaign describing the financial hub as a safe and welcoming place for business, a day after announcing the withdrawal of the extradition bill that plunged the city into its worst political crisis in decades. The advertisements are set to appear in selected major newspapers in North America, Europe, Australia and across Asia over the next week to give international readers a "sincere and unvarnished assessment of our position", a government spokesman said. The first of the adverts appeared in The Australian Financial Review, a broadsheet aimed at businesspeople and finance professionals, on Thursday. "We remain a safe, open, welcoming and cosmopolitan society and an internationally connected, vibrant and dynamic economy," the advert stated. "We will no doubt bounce back. We always do." The advertisement also highlighted that the government had started a "cross-sector dialogue to talk through differences and look for common ground", while remaining "resolutely committed to the 'one country, two systems'" framework by which Beijing governs the city. The Hong Kong government spokesman declined to say how much the advertising campaign would cost, but the full-page, full-colour advertisement in the AFR was understood to have cost A$20,000 (US$13,600). The cost of a full-page advertisement can run from about S$30,000 (US$21,600) in Singapore's Straits Times to 18,000 pounds (US$22,200) in Britain's The Guardian, and up to US$350,000 in The Wall Street Journal. The public relations push comes after Hong Kong leader Carrie Lam Cheng Yuet-ngor on Wednesday announced she would formally withdraw the extradition bill that would have allowed the transfer of fugitives to mainland China, among other jurisdictions. It meant the government had finally acceded to one of the five demands made by protesters, who have been carrying out increasingly violent demonstrations over the past 13 weeks. Lam also announced the setting up of a panel to examine the underlying cause of the protests, and appoint two new members to the Independent Police Complaints Council tasked with examining alleged police abuses. Pro-democracy figures and protest organisers have lambasted the concessions as too little, too late, though they agree it could make moderate demonstrators reconsider whether the protests should continue. The advertisement in the AFR emphasised the government's rejection of the use of violence and acknowledged it would "take time" to resolve the grievances that have polarised society. "Hong Kong has always been a resilient, resourceful and reasonable society," the advertisement said. "Our people are our greatest strength and possess the wisdom and wherewithal to handle anything that comes our way. And we will." Ryan Ching, an Australian entrepreneur who runs a chain of sandwich shops in Hong Kong, said the unrest had been a concern for him and other business owners, although he had not heard of anyone leaving the city as a result of the turmoil. "There's nothing stopping me from continuing on a day-to-day basis. I think the conditions are still quite good, but I guess the protests would put pause to any expansion or investments in Hong Kong," he said. Ching welcomed the government's backdown on the bill but was worried it could be "too little, too late". "I sincerely hope that yesterday [Wednesday] was a step in the right direction but there is a long way to go," he said. A prominent Hong Kong-based Australian business-person, who requested anonymity due to the sensitivity of the situation, expressed hope the withdrawal of the bill would act as a "circuit breaker". "We see that as an important olive branch and a major concession and we welcome that, and we would hope this leads to de-escalation," said the business-person. "It's in everyone's interest that the escalation ends, and that it de-escalates." The PR drive in Australia comes as trade unions step up their opposition to a pending free-trade deal between Australia and Hong Kong, citing concerns about police brutality and the erosion of rights such as freedom of speech and assembly in the city. Representatives of the Australian Council of Trade Unions and the National Tertiary Education Union last week told a parliamentary committee that the trade pact – which was signed in March but has yet to go through parliament – should be shelved as a gesture of solidarity with the anti-government protesters. "Our position remains unchanged – we support the demand of the Hong Kong Confederation of Trade Unions for the Hong Kong government to uphold freedom of assembly and free speech, for the release of arrested protesters, and an independent inquiry into human rights abuses," said Michael Evans, NTEU national organiser, on Thursday. "Until these demands are met, our position on the FTA is unlikely to change." Simon Henderson, a former official at Australia's Department of Foreign Affairs and Trade, said the Hong Kong government's ad campaign appeared to reflect concerns about the trade pact. Henderson, who now works as a human rights lawyer, said the FTA would likely make it into law but could be amended to address concerns about deteriorating freedoms in Hong Kong. "While I am supportive of the FTA being passed, I am of the view that passage should be subject to amendments guaranteeing human rights and rule of law protections," he said. "In particular, I recommend the inclusion of a human rights clause to ensure greater protection of fundamental rights and the rule of law. Such an approach would be both in Australia's national interest and reflective of Australia's foreign policy values." ^ top ^

Will withdrawal of the extradition bill be enough to calm Hong Kong's protests? (HKFP)
2019-09-05
A surprise concession to protesters by Hong Kong's leader may have eased tensions and reduced the likelihood of China sending in troops, but it is unlikely to halt the huge rallies or end clashes. After three months of taking a hardline tone, chief executive Carrie Lam finally scrapped a widely loathed bill on Wednesday allowing extraditions to the mainland. But will it be enough to calm nerves and end weeks of clashes in a financial hub once renowned for stability? Why make a concession now? On Thursday, Lam said she had decided to fully scrap the extradition law after meeting with various groups and leaders in recent weeks. Previously she had only agreed to suspend the legislation, fuelling further protests and sparking fears the law might one day be resurrected. She portrayed the withdrawal as an attempt to heal divisions and start a dialogue with more moderate protesters. But the timing was surprising. Only a week earlier Lam had delivered a defiant press conference saying she had no intention of yielding to protester demands. In between the two statements leaked audio recordings emerged of Lam privately telling people she wanted to quit and felt her hands were tied by Beijing. "I think China is really trying to pacify the situation," political analyst Dixon Sing told AFP, adding that the likelihood of Beijing deploying troops was now "close to zero". Will it end the crisis? The initial prognosis from protesters — and even some people within Lam's political camp — is that the concession was too little, too late, given more than 1,000 people have been arrested, with injuries on both sides in clashes with police and huge polarisation within the city. "If she did it two months ago, then there wouldn't be the current situation," Felix Chung, a pro-Beijing lawmaker who was among more than 40 people to meet with Lam on Wednesday before the announcement, told AFP. On the protest side, rejection has come in from both moderates and more radical groups. "Applying a band-aid months later on to rotting flesh will simply not cut it," said one masked protester at a so-called "citizens press conference" late Wednesday. Protesters say their movement will only end when all five of their demands are met. What are the remaining demands? An inquiry into police conduct, an amnesty for anyone arrested, a retraction of the label "rioters" to describe protesters and universal suffrage. Lam has said the current police complaints mechanism — which critics say is stacked with Beijing loyalists — is adequate and says an amnesty or withdrawal of rioting charges — which carry up to 10 years jail — would undermine Hong Kong's independent legal system. Universal suffrage has long been a thorny issue in a city where the leader is currently chosen by a pro-Beijing committee. In 2014 Beijing said it would be willing to give one person, one vote but said people would only be allowed to choose from a small number of pre-vetted candidates. That decision sparked huge pro-democracy protests that year which failed to make any headway. Beijing has repeatedly portrayed demands for direct elections as an unacceptable red line. What has been Beijing's response to Lam's concession? So far party organs have been silent. But Chinese state media has welcomed it. In an editorial headlined "HK protesters now have no excuse to continue violence" the China Daily described the move as an "olive branch" and called for dialogue with moderates. On Twitter — which is banned in China — the editor of the nationalist Global Times tabloid Hu Xijian wrote: "I hope this will be a new starting point. I also call on Western media and politicians to support a turnaround in the situation of Hong Kong." Lam has insisted the decision to withdraw the bill was hers alone and that no orders were given by China, although she said the central government supported her move. What next? More protests. Message forums used by protesters have filled with criticism and calls for new protests, including an attempted blockade of the airport on Saturday. There are also plans to get out huge crowds on October 1 when the People's Republic of China celebrates the 70th anniversary of its founding. Analyst Sing said only further concessions — particularly an independent inquiry — were likely to halt protests. "What remains is a tug of war over the next few months over whether an independent commission should be set up," he said, describing that demand as the one which has "gained the greatest support among the public." ^ top ^

 

Macau

Ho Iat Seng appointed Macao SAR chief executive (Xinhua)
2019-09-04
China's State Council on Wednesday appointed Ho Iat Seng as the fifth-term chief executive of the Macao Special Administrative Region (SAR). Ho was elected the fifth-term chief executive-designate of the Macao SAR on Aug. 25 as the sole candidate of the election. His tenure will start from Dec. 20, 2019, according to a decision made at a State Council meeting presided over by Premier Li Keqiang. Li told the meeting that the election was completely in line with the Basic Law of the Macao SAR and all other relevant laws, and reflected an open, fair and just principle. The premier said Ho's win by a clear majority showed the wide recognition and support for him by all walks of life in Macao. This year marks the 20th anniversary of Macao's return the motherland, Li said, adding the "one country, two systems" principle has been a great success in Macao and presented many highlights. The development of Macao is closely connected to the development of the Chinese inland, and the development of the Guangdong-Hong Kong-Macao Greater Bay Area has brought Macao new and great opportunities, said Li. He said that central authorities will continue to implement the Basic Law and the principle of "one country, two systems," under which Macao people govern Macao and the SAR enjoys a high degree of autonomy, supporting the improved livelihood and harmony of the region. The premier said he was confident that Ho could lead the SAR government and people to break new ground and write a new chapter for the successful practice of "one country, two systems" during his tenure. Ho, born in Macao in 1957, used to serve as a member of the Executive Council of the Macao SAR from 2004 to 2009. In October 2013, he was elected president of the Legislative Assembly of the Macao SAR and reelected in October 2017. He had also been a deputy to China's National People's Congress (NPC) and a member of the NPC Standing Committee. ^ top ^

 

Taiwan

Taiwan's refugee bill does not apply to Hong Kong protesters for now, Taipei says (SCMP)
2019-09-05
Taiwan's existing laws provide adequate opportunities for Hongkongers to relocate to the self-ruled island, but a refugee bill before the island's legislature does not apply to protesters seeking to flee the city, Taipei said on Thursday. The statement by the interior ministry came after visiting pro-democracy activist Joshua Wong Chi-fung appealed to Taiwanese lawmakers for more concrete support for his fellow protesters in Hong Kong. After meeting politicians from the ruling Democratic Progressive Party (DPP), Wong, who arrived in Taiwan on Tuesday, said the situation in Hong Kong had escalated beyond everyone's expectations. "No one in Hong Kong or Taiwan expected the protest would scale up to this level, and any policies or measures that could help Hongkongers to flee to Taiwan will have a positive effect on them," he said, adding that over the past two months, both Taiwanese President Tsai Ing-wen and lawmakers had expressed their concern about the unrest. "On how to strengthen the existing mechanism [to provide shelter to those in need], we understand that they need a little more study on this. Wong was apparently hoping to get more protection for Hong Kong protesters under Taiwan's delayed refugee bill, which passed its first reading in 2016 and is awaiting a second. But the ministry's statement said that "the existing mechanism has been working well and relevant authorities would deal with the shelter seekers on a case-by-case basis and in line with the international practices as well as human rights conventions". The refugee bill was designed to help foreigners and stateless people, but not mainland Chinese or Hongkongers, who had a separate nationality status, it said. Tsai, from the independence-leaning DPP, and her government have said repeatedly they will do all they can to help protesters seeking shelter in Taiwan. Systems are already in place allowing Hongkongers to apply to settle in Taiwan, but critics argue that they are of little use to those without plenty of time and money. For instance, Hongkongers can apply for residency in Taiwan by investing NT$6 million (US$192,000), setting up a business, obtaining a work visa and living on the island for several years, or studying at a local university and after graduation finding a job with a monthly salary of more than NT$45,000. Such conditions are unlikely to be of much use to the more than 1,200 Hongkongers who have been arrested or are facing charges of engaging in or instigating violence in the city during the past three months of protests against the now rescinded extradition bill. DPP legislator Lee Chun-yi said one of the problems of applying the new refugee bill to people from Hong Kong was how to define the terms. "Can the protesters be classed as refugees? And how many of them could Taiwan accept?" he said. Another problem was whether such people would have to abandon their nationality, and whether Hongkongers were considered as nationals of the People's Republic of China, Lee said. Lester Shum, a former deputy secretary general of the Hong Kong Federation of Students, who travelled to Taiwan with Wong and Hong Kong lawmaker Eddie Chu, said he hoped politicians from all of the island's political parties, including the Beijing-leaning Kuomintang, would support the protesters and not use the issue to make political gains. Wong said he was also seeking support from other countries, including the United States, Germany, Britain, Australia, Japan and South Korea, and hoped people there would stage mass rallies in support of the Hong Kong protesters on either September 27 or September 28, ahead of China's National Day on October 1. Also on Thursday, Communist Party mouthpiece People's Daily hit back at what it said was Wong's attempt to win support from pro-independence activists in Taiwan and arrange mass protests ahead of the celebrations to mark the 70th anniversary of the founding of the People's Republic. But "their collusion only leads to a dead end", it said, and is "bound to be in vain". ^ top ^

 

Economy

Nation lowers tax rate on heavy rare earths to support industry (Global Times)
2019-09-05
The Ministry of Industry and Information Technology has formalized a new law that reduces the resource tax on heavy rare earths from 27 percent to 20 percent, a move that analysts said shows China's resolve to support the industry's development amid a heated trade war. Heavy rare earths, where China has a dominant position in the global market and widely used in the defense sector, are widely regarded something that Beijing could weaponize to threaten US economic and national security. The new law was passed by the 12th meeting of the Standing Committee of the National People's Congress, China's top legislative body, on August 26, and it will take effect on September 1, 2020. The resource tax on light rare earths remains unchanged. Wu Chenhui, a Beijing-based independent rare-earth analyst, told the Global Times on Thursday that the new policy aims to ease the tax burden of rare-earth enterprises and encourage them to invest in and research more advanced extraction techniques and market applications, to cement China's position as a leading supplier in the market. "The new tax will also provide additional liquidity for these companies as they cope with the country's stronger environmental protection," Wu said. Amid an escalation of the China-US trade war, industry insiders have hinted that China could cut rare-earth exports to inflict massive damage to various US industries and defense capabilities. Rare-earth components are indispensable in the manufacturing of electronic devices such as laptops and smartphones. They are also of vital importance to US military equipment, such as radar, night vision goggles, missile guidance systems and tank armor. China is the world's largest producer and exporter of rare earths. Its mines account for about 70 percent of global output. The US from 2014 to 2017 sourced 80 percent of its rare-earth imports from China, according to US government statistics. ^ top ^

UN: US, China lead digital economy (China Daily)
2019-09-05
The United Nations, in its first Digital Economy Report, states that the US and China are creating the vast majority of wealth in the digital economy. Shamika Sirimanne, director of the Division of Technology and Logistics of the UN Conference on Trade and Development (UNCTAD), told the media that research reveals that the economic geography of the digital economy does not display a traditional North-South divide. It is consistently being led by one developed and one developing country — the United States and China. She spoke at a news conference on the launch of the Digital Economy Report 2019 at UN headquarters in New York on Wednesday. According to the report, the US and China "account for 75 percent of all patents related to blockchain technologies, 50 percent of global spending on the "Internet of Things" (IoT), and more than 75 percent of the world market for public cloud computing. The two nations also account for as much as 90 percent of the market capitalization value of the world's 70 largest digital platform companies. Seven "super platforms" – Microsoft, followed by Apple, Amazon, Google, Facebook, Tencent and Alibaba − account for two-thirds of the total market value, the report said. It also illustrated that Google accounts for some 90 percent of the global internet search market, and Facebook is the top social media platform in more than 90 percent of countries. And in China, "WeChat (owned by Tencent) has more than one billion active users and, together with Alipay, an Alibaba company, its payment solution has captured virtually the entire Chinese market for mobile payments. Meanwhile, Alibaba has been estimated to have close to 60 percent of the Chinese e-commerce market," the report said. The report also noted that those companies are competing aggressively to stay on top. The UN trade body warned that the dominance of those platforms is leading to a concentration and consolidation of digital value, rather than reducing inequalities between and within countries, with developing countries at the bottom. The report outlines enormous potential gains from the increasingly interconnected global economy, but calls for "concerted global efforts to spread the wealth potential to the many people who currently reap little benefit from it". It said the rest of the world, particularly countries in Africa and Latin America, are considerably behind. Under current policies and regulations, such trajectory is likely to continue, further contributing to rising inequality, UN Secretary General Antonio Guterres said in a foreword to the report. "We must work to close the digital divide," he wrote, "where more than half the world has limited, or no access to the internet. Inclusivity is essential to building a digital economy that delivers for all." UNCTAD Secretary General Mukhisa Kituyi said, "We need to respond to the desire of people in developing countries to take part in the new digital world, not just as users and consumers, but also as producers, exporters and innovators, for creating and capturing more value on their path towards inclusive prosperity." Kituyi noted that governments have a critical role in shaping the digital economy by defining the rules of the game through adapting existing laws and passing new ones in many areas. "A smart embrace of new technologies, enhanced partnerships and greater intellectual leadership are needed to redefine digital development strategies and the future contours of globalization," Kituyi said. ^ top ^

From rice to E-commerce -- China supports Africa to boost self-development (Xinhua)
2019-09-04
Malagasy farmer Georges Ranaivomanana can finally afford enough bricks to build his own house this year thanks to the growing of hybrid rice introduced by Chinese experts. "After using hybrid rice we no longer know about famine," the 55-year-old said, adding that the local Malagasy seeds yield 2 tons per hectare, while hybrid rice produces a harvest of 8 to 10 tons per hectare. "If all Malagasies use hybrid rice, Madagascar will be able to export rice," he said. In May, the China National Hybrid Rice Research and Development Center set up a research center in Madagascar, partnering with the country's agriculture ministry and local companies. The Chinese experts have successfully bred a number of hybrid rice types that suit the local climate with the highest yield of 10.8 tons per hectare. Ranaivomanana is just one of hundreds of thousands of beneficiaries from the booming cooperation between China and Africa. It has been a year since Chinese President Xi Jinping proposed eight major initiatives at the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) to elevate cooperation between the world's largest developing country and the largest developing continent. The eight initiatives cover various fields such as industrial promotion, infrastructure connectivity, trade facilitation, green development, capacity building, healthcare, people-to-people exchanges, and peace and security. "The eight initiatives promote the integration of China's Belt and Road construction with African development strategies with dozens of tangible programs that really bring benefits to the African people," said Xu Jinghu, the special representative of the Chinese government on African affairs. At the FOCAC summit last year, Xi announced a raft of measures to promote China-Africa cooperation. Among them are import of more non-resource products from Africa, increased corporate investment, more direct flights, an environmental cooperation center, an African studies institute, and security programs fighting pirates and terrorists. Xi has said that a China-Africa economic and trade expo would be held in China, and a number of economic and trade cooperation zones in Africa would be built or upgraded. The past year witnessed China's commitment to fulfilling those promises. The first China-Africa Economic and Trade Expo held late June in central China's Changsha City, with an air route with east Africa's big city of Nairobi opened two weeks ahead of the expo. A total of 84 deals worth 20.8 billion U.S. dollars were reached in trade, agriculture, tourism and other fields during the three-day event, which attracted more than 10,000 guests and traders, including those from 53 African countries. Nigeria's Jigawa State government signed a bilateral agreement with China's Hunan Province on the sidelines of the expo to boost the state's capacity in rice production. Gambo Ibrahim Aliyu, permanent secretary of the state's Ministry of Agriculture and Natural Resources, expressed optimism that the partnership would give Jigawa's highly-valued crops more access to the Chinese market, while increasing import of Chinese agricultural technology to the state. China has been Africa's biggest trading partner for 10 consecutive years, with an accumulated investment of over 110 billion dollars. In 2018, trade volume between China and Africa amounted to 204.2 billion dollars, up 20 percent year on year. In Ethiopia, people now expect a better business environment and new opportunities with the Chinese-built Dire Dawa Industrial Park almost being complete. Abdulkerim Yasin, a businessman in Ethiopia's eastern city of Dire Dawa, is hopeful that the commissioning of the industrial park would revive the business environment in the city and its surroundings. "Presently, I'm much focused on the import sector," Yasin told Xinhua. "Once the industrial park starts operations, I am planning to commit both in the import and export sector(s) by forging partnerships (with) some of the factories that are set to start their production inside the park." Drawing on China's development experience, Ethiopia will have about 15 industrial parks within years, mostly built by Chinese companies and with Chinese technologies. According to figures from the Ethiopia Investment Commission, Ethiopia has earned 142 million dollars in exports from Chinese-built industrial parks during the 2018-2019 Ethiopian fiscal year, up 50 percent year-on-year. In a week, 18-year-old high school graduate Mike Manzi from Rwanda will start his new life at the Alibaba Business College in Hangzhou, East China's Zhejiang Province. Manzi is one of 30 Rwanda students enrolled in the "International Business Cross-border E-Commerce" class. They will spend four years in Hangzhou, where the e-commerce giant Alibaba is based, studying subjects including the Internet, international trade and cross-border e-commerce. The project is a key part of the agreement signed last year between the Rwandan government and Alibaba to build the Electronic World Trade Platform that aims to promote small and medium-sized enterprises to participate in cross-border electronic trade. "It will help me grow in terms of business, ideas and innovations, and I will bring them (back) to Rwandans." said Manzi. "Digital business is a main form of business in the world, which will help Rwandans develop economy and skills." Chinese experience has offered references and opportunities for Africa's development and prosperity, observers have said. In Namibia, Basil Karedzera, a clearing and forwarding agent in the city of Walvis Bay who handles vehicles bound for landlocked countries like Botswana and Zambia, said a new Chinese-built port terminal, with a carrying capacity of some 750,000 containers, is going to make business transactions smoother. "The container terminal with the larger carrying capacity will now ensure that our goods will not immediately be sent to privately owned storage facilities which often charged us an arm and a leg for storage fees," he said. The new port terminal, constructed by China Harbor Engineering Company, which also features a dedicated cruise liner berth and a marina breakwater, is expected to encourage bigger international tourist liners to bring in tourists in the port city, a move greatly appreciated by the service sector. Putting infrastructure at the core, the China-proposed Belt and Road Initiative is a new driver of economic development from which Africa stands to benefit, said Richard Todwong, deputy secretary general of Uganda's National Resistance Movement. Like in many African countries, China has constructed key transport and energy infrastructure projects in Uganda aimed at unlocking the country's economic potential. "China argues that development should be for everybody. When China is building dams, roads, it is powering the Ugandan economy," Todwong said. At the FOCAC summit a year ago, Xi said China and Africa have long formed a community with a shared future and will now turn it into a pacesetter for building such a community for humanity. For Nathan Ankrah, a 24-year-old Ghanaian student who recently participated in a Chinese language competition for foreign college students, China is a big part of his future plans. "The trade between China and Africa is booming and it is a win-win situation," said Ankrah. "I am looking for my 'Chinese opportunity.'" ^ top ^

 

DPRK

China, DPRK pledge to further promote bilateral cooperation (Xinhua)
2019-09-04
China and the Democratic People's Republic of Korea (DPRK) pledged on Wednesday to promote friendly cooperation between the two countries. This year marks the 70th anniversary of the establishment of diplomatic relations between China and the DPRK, which is of great importance for both countries, visiting Chinese State Councilor and Foreign Minister Wang Yi said in a meeting here with Ri Su Yong, member of the Political Bureau and vice-chairman of the Central Committee of the Workers' Party of Korea (WPK) of the DPRK. Despite changes in the international arena, the traditional friendship forged by the leaders of the former generations of both countries has withstood the test of time and become a shared asset of the two countries, said Wang. General Secretary of the Communist Party of China (CPC) Central Committee Xi Jinping and top DPRK leader Kim Jong Un have injected fresh vitality into the relations between the two parties and the two countries, Wang said. "We should abide by the important consensus reached by the top leaders of the two countries, shoulder the responsibility to maintain, consolidate and advance the traditional China-DPRK friendship, and promote friendly cooperation between the two countries in various fields," he added. Under Kim's leadership, the WPK has created a new strategic line which is in accordance with the fundamental interests of the country, the nation and the people of the DPRK, said Wang, noting that he believes that the DPRK will overcome all difficulties and achieve its strategic goal. Speaking of China's development, Wang said that socialism with Chinese characteristics has achieved great success and revealed promising prospects. History will prove that China's development and rejuvenation are an irresistable trend that cannot be stopped, he said, adding that China and the DPRK should conduct more communication and exchanges, understand each other, trust each other and support each other in safeguarding their mutual interests and legitimate rights. Ri, also the director of the International Department of the WPK Central Committee, said that Kim and Xi have met many times in recent years and charted the course for the development of bilateral relations. Wang's visit to the DPRK on the occasion of the 70th anniversary of the establishment of diplomatic ties between the two countries is of great significance for the implementation of the consensus reached by the top leaders of the two countries, he said. The DPRK is willing to join China in strengthening exchanges at different levels and push forward the practical and friendly cooperation between the two sides, he said. Extending his congratulations on China's achievements and the 70th anniversary of the founding of the People's Republic of China, Ri said that the DPRK side will continue to firmly support the policies and measures of the CPC and the Chinese government on issues concerning China's core interests, including the issues of Hong Kong and Taiwan. The two sides also exchanged in-depth views on the Korean Peninsula situation. ^ top ^

China tells North Korea it wants 'closer communication and cooperation on world stage' (SCMP)
2019-09-03
China wants "closer communication and cooperation on the international stage" with North Korea, its top diplomat said on Tuesday, as both countries face a deadlock in critical talks with the US. Chinese Foreign Minister Wang Yi, who arrived in Pyongyang on Monday for a three-day visit, also reflected on the two countries' 70-year alliance when he met his North Korean counterpart Ri Yong-ho. "Over the past 70 years, China and North Korea have always been in the same boat and moving forward side by side, no matter how the international situation changes," Wang said, according to a Chinese foreign ministry statement. "Standing at a new beginning, China-[North Korea] relations will definitely strengthen and look to a brighter future," he said. China fought alongside the North in the Korean war against the American forces in the 1950s and the two nations are military allies under a treaty, while China is also North Korea's main economic backer. But the relationship deteriorated from 2016 to 2018 over Pyongyang's nuclear and missile programme and Beijing's support for United Nations sanctions against North Korea. Beijing and Pyongyang have been working to repair the relationship, with Chinese President Xi Jinping and North Korean leader Kim Jong-un meeting five times since March last year as they both seek more diplomatic leverage with Washington. Both countries' negotiations with the US are at an impasse. Beijing's talks to resolve a trade war with Washington remain stalled after they collapsed in May, when the US accused China of backtracking on its concessions. A meeting between Xi and US President Donald Trump in late June led to an agreement to resume talks, but the momentum was short-lived. Pyongyang's talks with Washington on denuclearisation of the Korean peninsula have stalled since the second summit meeting between Kim and Trump collapsed in February. That summit in Hanoi was followed by a third meeting at Panmunjom in the demilitarised zone between the two Koreas in June, where they agreed to revive stalled working-level talks – but those have yet to resume. Wang Sheng, a Korean studies professor at Jilin University in Changchun, said the situation had been exacerbated by US-South Korea military exercises and Pyongyang's recent short-range missile tests, as well as by last week's exchange between US Secretary of State Mike Pompeo and a senior North Korean diplomat after Pompeo described the country's behaviour as "rogue". Wang said he was "not very optimistic" about the prospects for the denuclearisation talks moving forward. "North Korea would want this support from China, and maybe also Russia," he said, noting that Beijing had also backed Pyongyang's demand for Washington to take substantial steps to address its security and economic concerns by suspending the military drills and easing some of the sanctions it has imposed. "Having better political, economic, social and all kinds of connections with North Korea is in China's strategic interest in the Northeast Asia region," he said. During their meeting on Tuesday, the two foreign ministers also discussed the coming celebration of the 70th anniversary of the countries' diplomatic relationship. It falls five days after the 70th anniversary of the founding of the People's Republic of China on October 1, and there is speculation that Kim could attend the ceremony and military parade for China's National Day. Wang also briefed Ri on the situation in Hong Kong. The city has been rocked by anti-government protests since early June, sparked by a now-shelved extradition bill. Ri said that Hong Kong was an internal matter for Beijing and that North Korea "firmly supports" China's "one country, two systems" framework and its territorial integrity. ^ top ^

North Korea says hopes for nuclear talks fading after US Secretary of State Mike Pompeo's 'rogue behaviour' comment (SCMP)
2019-08-31
A senior North Korean diplomat said on Saturday that Pyongyang's hopes for talks with Washington are fading, after berating US Secretary of State Mike Pompeo over his comments describing the country's behaviour as "rogue". In a statement carried by state media, North Korean First Vice Foreign Minister Choe Son-hui said Pompeo's "thoughtless" comments increased North Korean people's animosity toward Americans and made it harder for working-level nuclear negotiations between the countries to resume. "Our expectations of dialogue with the US are gradually disappearing and we are being pushed to re-examine all the measures we have taken so far," Choe said. "We are very curious about the background of the American top diplomat's thoughtless remarks and we will watch what calculations he has. The US had better not put any longer our patience to the test with such remarks irritating us if it doesn't want to have bitter regrets afterward." Pompeo in a speech to US veterans in Indiana on Tuesday said the Trump administration recognised that "North Korea's rogue behaviour could not be ignored" while touting its approach in foreign policy. "Americanism – it means telling the truth about the challenges we face," Pompeo said. "Look, this administration didn't pretend that the Islamic Republic of Iran was a responsible actor in the Middle East. We called out China's bad behaviour on trade and on national security. We recognised – we recognised that North Korea's rogue behaviour could not be ignored." Nuclear negotiations have been at a standstill since a February summit between President Donald Trump and North Korean leader Kim Jong-un in Vietnam collapsed after the US side rejected North Korean demands for broad sanctions relief in exchange for a partial surrender of its nuclear capabilities. Since the breakdown in Hanoi, the North has repeatedly demanded that Washington remove Pompeo from the nuclear negotiations, accusing him of maintaining a hardline stance on sanctions and distorting Pyongyang's statements, while avoiding direct criticism of Trump. Trump and Kim met again at the inter-Korean border in June and agreed to resume working-level talks, but there has been no known meeting between the countries since then. The North in recent weeks conducted a slew of short-range ballistic missile tests in what is seen as an attempt to increase pressure on Washington and Seoul over the slow nuclear diplomacy. ^ top ^

 

Mongolia

President of Mongolia taking part in Eastern Economic Forum 2019 (Montsame)
2019-09-05
On September 4 and 5, President of Mongolia Kh.Battulga is taking part in the fifth Eastern Economic Forum in Vladivostok, Russia. He arrived in Vladivostok yesterday on September 04 and welcomed by officials of Foreign Affairs Ministry of the Russian Federation and the local government. Today on September 5, he is scheduled to participate in the plenary meeting along with other heads of state and governments of 40 other countries and deliver remarks at the event. The Mongolian President will also hold bilateral meetings with Prime Minister of Japan Shinzo Abe, Prime Minister of India Narendra Modi and attend Business Breakfast event with heads of state and governments of Russia, Japan, Malaysia and India. Partaking in the annual Eastern Economic Forum for the third consecutive year, President Kh.Battulga will also attend the award ceremony of the annual international Vladivostok Jigoro Kano Junior Judo Tournament and meet with the president of the International Judo Federation. The President is accompanied by Member of Parliament B.Delgersaikhan and Head of the President's Office Z.Enhkbold, other officials and heads of educations institutions, National University of Mongolia, Mongolian State University of Education, Mongolian University of Life Sciences and Mongolian University of Science and Technology. ^ top ^

Remarks by President of Mongolia Kh.Battulga and President of Russia Vladimir Putin (Montsame)
2019-09-04
On September 3, following the signing ceremony of official bilateral documents at the State House, President of Mongolia Kh.Battulga and President of Russia Vladimir Putin delivered a joint press statement. Head of state of Mongolia Kh.Battulga began his speech by noting the growth of the bilateral ties between Mongolia and Russia based on traditional friendly relations and mutual trust. "The people of Mongolia are grateful that President of Russia Vladimir Putin is celebrating the 80th anniversary of the Mongolia-Soviet joint victory of the Battles of Khalkhiin Gol together with us. This joint victory was a significant event that reaffirmed the independence and sovereignty of Mongolia and strengthened the friendly ties between the peoples of the two nations. Therefore, we must immortalize the heroic deeds of Mongolian and Soviet Soldiers, who fought shoulder to shoulder in those battles, for future generations". During the press conference, President Kh.Battulga accepted the Russian President's invitation to attend 75th anniversary celebration of the Great Patriotic War to be held next year. On the newly-signed Treaty of Friendly Relations and Comprehensive Strategic Partnership between the two states, the Mongolian President said that the treaty holds great political and historical benefits in the bilateral cooperation, opening up significant prospects for its further expansion in various directions. He also noted about the ten documents signed during the visit concerning various sectors' collaboration, including traditional military and defense cooperation. As the two sides discussed about the possibilities of increasing profits of the Mongolian-Russian Ulaanbaatar Railways joint company, the President expressed willingness to spend the RUB 100 billion loan requested from the Russian Government on increasing the equity fund of the Russian Railways, energy industry and building new railroad from Zuunbayan to Khangi. Expressing his gratitude to Russia for giving opportunities to use seaports in the Russian Far eastern regions, opening access to the sea for landlocked Mongolia, the President Kh.Battulga stressed that preliminary technical and economic feasibility studies have been completed for a new terminal to be built at the Zarubino port in cooperation with Russian Fesko Company within the framework of the transit transportation agreement between the governments of Mongolia and Russia on June 2018. He then noted his hope that Russia will support Mongolia's willingness to establish free trade agreement with the Eurasian Economic Union. "To broaden the economic cooperation, it is necessary to take measures to redefine investment priorities from Russia and increase exports from Mongolia. I am glad that Russia is reopening its trade representative in Mongolia and Mongolia is planning to open its trade representative office in Vladivostok city of Russia" said the Mongolian President. "Mongolia is willing to co-implement large development projects for future cooperation of Mongolia and Russia and I have put forward a proposal to set up a joint working group to study this issue" he added. At the end of his remarks, President Kh.Battulga stated that an issue of excise duty regarding the Ulaanbaatar Railways and another issue related to Russian immovable properties in Mongolia that has been lying long unsettled, have been straightened out. For his part, President of Russia Vladimir Putin said he was convinced that the long-standing traditions of friendship and solidarity are a firm foundation for the development of Russian-Mongolian relations and agreed that the negotiations were informative and constructive. "We regard that the relations between Mongolia and Russia elevated to a new level of Comprehensive Strategic Partnership will enable opportunities to enhance cooperation in each and every field" he said. President Vladimir Putin further mentioned the 21 percent increase of trade turnover of Mongolia and Russia and gave a detailed information on issues concerning new joint projects of energy, mining and agriculture. ^ top ^

Mongolian and Russian Presidents sign Comprehensive Strategic Partnership (Montsame)
2019-09-03
After the official talks between the Mongolian and Russian Presidents at the State House, Mongolian President Kh.Battulga and Russian President Vladimir Putin attended a ceremony to sign intergovernmental and inter-agency documents on bilateral relations and cooperation. The heads of state of Mongolia and Russia signed a treaty between Mongolia and the Russian Federation on Friendly Relations and Comprehensive Strategic Partnership. Previously, Mongolia and the Russian Federation established a treaty on friendly relations and cooperation in 1993, which was renewed by the two countries in 2009 with a declaration of Strategic Partnership. Afterwards, several documents on cooperation in various fields were signed by the government officials and business delegates from Mongolia and Russia at the ceremony. Minister of Foreign Affairs of Mongolia D.Tsogtbaatar and Minister of Foreign Affairs of Russia Sergey Lavrov signed an intergovernmental agreement on cooperation between Mongolia and Russia in the fight against terrorism. Minister of Foreign Affairs of Mongolia D.Tsogtbaatar and Minister of Economic Development of Russia Maksim Oreshkin signed an agreement between the governments of Mongolia and Russia on promoting interregional and cross-border cooperation. State Secretary of the Ministry of Defense of Mongolia Kh.Batbileg and the First Deputy Director of the Federal Service for Military-Technical Cooperation of Russia Andrey Boytsov signed a protocol on the renewal of the 2014 intergovernmental agreement on the provision of military and technical assistance to Mongolia. Director General of the Mongolian Customs General Administration B.Asralt and Head of the Federal Customs Service of Russia Vladimir Bulavin signed a protocol on cooperation in ensuring the stable functioning of the Kyakhta-Altanbulag international automobile checkpoint on the Mongolian-Russian border and plan for 2020-2024 on cooperation between the customs agencies of the two countries. Director of the Mineral Resources and Petroleum Authority, the Implementing Agency of the Mongolian Government Kh.Kherlen and General Director of the JSC Rusgeology of Russia Sergey Gorkov signed an agreement between the agencies. CEO of the Mongol Post JSC B.Ankhbaatar and CEO of the Russian Post Nikolay Podguzov signed a strategic cooperation agreement between the two organizations. CEO of Erdenes Mongol LLC P.Gankhuu and Chairman of the Management Board and Director General of the national grid company Rosseti Pavel Livinsky signed a memorandum of understanding between the two organizations. Director of the DBM Asset Management LLC investment company of Mongolia and CEO of the Russian Direct Investment Fund Kirill Dmitriev signed a cooperation agreement. ^ 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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