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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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  13-17.1.2020, No. 800  
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Table of contents

DPRK

Mongolia

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Switzerland

China's top legislator holds talks with Swiss National Council president (Xinhua)
2020-01-16
China's top legislator Li Zhanshu held talks with President of the Swiss National Council Isabelle Moret Thursday in Beijing. Forging diplomatic relations with China 70 years ago, Switzerland was one of the first Western countries to recognize the People's Republic of China and was the first country from continental Europe to sign a free trade agreement with China, said Li, chairman of the National People's Congress (NPC) Standing Committee. China stands ready to work with Switzerland to uphold the spirits of partnership, exploration, openness and humanism, he said. China and Switzerland should respect each other's core interests and major concerns, forge mutual understanding, expand consensus, deepen cooperation, and push bilateral relations for more development, Li added. Noting that both countries are firm supporters of economic globalization, free trade, openness and cooperation, Li applauded Switzerland's active support of and participation in the Belt and Road Initiative. China is ready to work with Switzerland to enhance the dovetail of development strategies and be cooperative partners in the high-quality construction of the Belt and Road, Li said. Noting the long-term exchanges and cooperation the NPC has maintained with the Swiss National Council, Li expressed the hope that both sides can develop closer friendly exchanges and provide legal guarantees for the implementation of the consensus reached by leaders of the two countries. Li called on the two legislative bodies to deepen mutual learning and enhance exchanges in legislation, supervision, and governance experiences to promote interactions and cooperation between the two countries in fields such as the economy, culture, sports and youth. Moret said the continuous improvement of Chinese people's living standard has proven that China is one of the best swimmers in the ocean of the world economy and Switzerland is willing to enhance exchanges and cooperation with China in various fields. The Swiss National Council will play an active role in promoting bilateral relations and cementing the understanding and friendship between the two peoples, she said. ^ top ^

 

Foreign Policy

Millennia-old relations with Myanmar 'enter new era' (China Daily)
2020-01-17
President Xi Jinping said he looks forward to renewing China's close ties with Myanmar and discussing future cooperation during a trip to the Southeast Asian country starting on Friday. He made the remark in a signed article titled "Writing a New Chapter in Our Millennia-Old Pauk-Phaw Friendship", published on Thursday in Myanmar newspapers ahead of his two-day state visit. Pauk-phaw, which means siblings from the same mother in the Myanmar language, "is an apt description of the fraternal sentiments between our two peoples, whose close ties date back to ancient times", Xi said. Myanmar was among the first countries with a different social system to recognize the People's Republic of China after its founding in 1949. Xi said that the elder statesmen of the two countries have since made enormous efforts to develop China-Myanmar relations. "Our relationship has been marked by mutual trust, mutual respect and mutual support. It has become a prime example of equality, win-win cooperation and common development between countries of different sizes," he wrote, noting that the close ties have delivered real benefits to people in both countries. China has long been Myanmar's largest trading partner and its most important source of investment. Bilateral trade reached $16.8 billion in the first 11 months of 2019. According to Xi, more and more agricultural and livestock products from Myanmar are making their way to Chinese kitchens, with fruitful cooperation taking place in infrastructure construction and many other fields. The vibrant cultural, religious and personnel exchanges provide solid support for deepening the friendship between the two nations, he added. As this year marks the 70th anniversary of China-Myanmar diplomatic relations, Xi said it is important that the two countries carry forward their traditional friendship and deepen mutually beneficial cooperation to bring this relationship into a new era. He called on the two sides to continue to harness the vital role of high-level exchanges in guiding their relations, step up communication and coordination at all levels and share development experience. "It is important that we continue to show strong mutual support on issues concerning each other's core interests," Xi said. China supports Myanmar in advancing the peace and reconciliation process through political dialogue, he said, asking the two sides to work together to ensure peace and stability along the border. Xi proposed that two sides deepen results-oriented Belt and Road cooperation and move from a conceptual stage to concrete planning and implementation in building the China-Myanmar Economic Corridor. "We also need to deepen practical and mutually beneficial cooperation in such areas as connectivity, electricity, energy, transportation, agriculture, finance and livelihood to deliver more benefits to both peoples," he wrote. China and Myanmar have designated 2020 as the China-Myanmar Year of Culture and Tourism. "Myanmar's charming natural scenery and fascinating cultural heritage will surely attract more and more Chinese tourists," Xi wrote. Confronted by rising unilateralism and protectionism, the president said the two countries need to strengthen coordination and collaboration in the multilateral platforms, such as in the United Nations and within the framework of East Asia cooperation and Lancang-Mekong cooperation. "Let us work hand in hand to build an even closer China-Myanmar community with a shared future and write a new chapter for our millennia-old pauk-phaw friendship," he wrote. ^ top ^

Xinhua Headlines: China, U.S. sign phase-one trade deal, adding certainty to global economy (Xinhua)
2020-01-16
China and the United States on Wednesday signed their phase-one economic and trade agreement that both sides said benefits each other and the whole world, a progress welcomed by businesses, investors and observers. After nearly two years' strenuous negotiations, Chinese Vice Premier Liu He and U.S. President Donald Trump inked the papers at the White House East Room on behalf of their respective countries, injecting stability into bilateral relations and adding certainty to global growth. It "shows that our two countries have the ability to act on the basis of equality and mutual respect, and work through dialogue and consultation to properly handle and effectively resolve relevant issues," Chinese President Xi Jinping said in a message to Trump read out by the vice premier at the signing ceremony. The deal is a hard-won phased outcome for the U.S.-initiated trade tensions with China, and the progress shows that the world's two largest economies are seeking a more rational way to break the deadlock and inject positive energy into the stability and development of the world economy. The Chinese vice premier, in his remarks at the signing ceremony, called the agreement mutually beneficial and of win-win nature. "It will bring about stable economic growth, promote world peace and prosperity, and is in the interest of the producers, consumers, investors in both countries," he said. Liu, also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-U.S. comprehensive economic dialogue, told a briefing with the Chinese press later that day the phase-one deal has to a large extent addressed the concerns of both sides. The agreement ranges from expanding bilateral trade in such sectors as agricultural products, manufactured goods, energy, and service, further broadening market access, to enhancing the protection of intellectual property rights. The two sides also agree to establish a bilateral mechanism for two-way assessment and dispute settlement, and the United States has pledged to cancel some of its additional tariffs on Chinese products, marking a policy change from hiking to cutting additional tariffs. At the signing ceremony, Liu noted that the phase-one deal is in line with the World Trade Organization rules, and that it is neither directed at nor will affect the lawful rights and interests of any third party. For his part, Trump called the signing of the phase-one deal "remarkable," which is a boon to the United States, China, and the whole world. The phase-one deal, expected to bring mutual benefit to industries, businesses and consumers of both nations, is well received by U.S. analysts, business and farming communities and financial markets. U.S. Chamber of Commerce CEO Thomas Donohue said in a statement released Wednesday that this deal provides "much needed certainty" to U.S. businesses as they begin the new year. "We commend both governments for staying the course and taking this important step to rebuild trust and restore some stability in the world's most important commercial relationship," Donohue said. Noting that there's a lot of excitement in the U.S. business community, U.S.-China Business Council President Craig Allen told Xinhua in a recent interview that the agreement is good for both the Chinese side and the U.S. side. Rick Kimberley, president of Kimberley Farms Inc. in the U.S. State of Iowa, told Xinhua he is "pleased" to see that the phase-one deal has been signed, calling it definitely a step in the right direction. In a recent interview with Xinhua, Tyler Stafslien, a North Dakota-based soybean farmer, said the signing of the phase-one deal signifies to him that "the United States and China are on a path back towards more normalized trading." David Dollar, a senior fellow in the John L. Thornton China Center at the Brookings Institution, told Xinhua that "markets are relieved that the phase-one deal means that the U.S.-China trade war is not escalating," adding that 2020 looks set to be a more stable year in terms of trade policy. U.S. markets closed at record highs Wednesday after the signing of the widely-anticipated trade deal, with the Dow Jones Industrial Average ending the trading day at 29,030.22. The signing of the deal is a positive first step for resolving the economic and trade issues between the world's top two economies, and the priority now is to implement the deal, and get off to a good start for China-U.S. economic and trade ties. In the next step, the two sides need to implement the agreement in real earnest and optimize its positive impact, so as to make even greater progress in China-U.S. trade and economic cooperation, Xi said in his message to Trump. Speaking at the signing ceremony, Liu expressed the hope that both sides will work together under the principle of equality and mutual respect, strictly honor the agreement, accommodate each other's core concerns, and ensure a good implementation of the phase-one trade agreement. "It is the pressing need and will also play an important role in the growth of bilateral economic and trade relations in the future," he said. Robert Kuhn, chairman of the Kuhn Foundation and a leading U.S. expert on China, told Xinhua on Wednesday that the deal is a "milestone" in international trade and China-U.S. relations. The phase-one deal "does not solve all problems forever, but by providing stability for China-U.S. economic relations, it does give the entire world greater economic confidence and increases opportunities for global prosperity," he said. "I am confident that both sides will adhere to the deal," Kuhn said. President Xi has said that there are a thousand reasons to make the China-U.S. relationship work, and no reason to break it, Liu noted at the press briefing. The two countries have a lot of shared interests, and can certainly find a way to manage their differences and engage in win-win cooperation, Liu said. ^ top ^

China's deal to buy more US goods is 'distortion of the market', Europeans complain (SCMP)
2020-01-16
China's pledge to ramp up purchases of US goods and services in an interim trade deal has drawn concern from other trading partners, with a leading European business group calling it a "distortion of the market" and saying the pact was "rewriting globalisation". After the deal was signed in Washington on Wednesday, Vice-Premier Liu He sought to reassure other countries that they would not suffer as a result of the agreement, but the message was not convincing for some. Joerg Wuttke, president of the European Union Chamber of Commerce in China, said the purchasing commitment was "managed trade – meaning the US tells China what it should buy from America", and it would lead firms from Europe to "wonder where our place is". China faced "less choice or possibilities of sourcing, say, soybeans from Brazil, or gas from Australia and Qatar, or coal from India, or aeroplanes from Europe, and this is distortion of the market", Wuttke told reporters in Beijing on Thursday. The Chinese vice-premier also said Beijing's promises to Washington on intellectual property rights protection, technology transfers and financial markets access would apply to its other trading partners. Wuttke said that was "very encouraging" and showed China may still try to source products and services globally. "Let's see how it will be implemented over the next year or so. We will also have to see how long the phase one is going to survive. This is going to be a very challenging undertaking for both parties," he said. Under the deal, China has committed to buy, over two years, at least US$200 billion of American goods and services more than it did in 2017, including manufacturing, energy and agricultural products. Liu said the purchases would be based on market demand and "won't hurt any third party". But European diplomats fear the bloc could be sidelined as China puts its focus on the US. Chinese officials have repeatedly stressed that Beijing would continue to treat Europe as a partner, and the EU envoy to China was given a briefing on the trade deal by the foreign ministry on Thursday in a bid to ease concerns. European trade officials have been negotiating an investment pact of their own with China, seeking to change some of the unfavourable market practices they have long complained about, and to create a more even playing field for foreign businesses. The EU is also looking to reset its trade and investment relationship with the US – the world's biggest economy – after three years of President Donald Trump's tariffs. However, it has yet to achieve a deal with either side. Former EU trade commissioner Cecilia Malmstrom also weighed in on the US-China deal after it was signed. "De-escalation [between the US and China] is good but very few tariffs are actually being reduced," she said in a Twitter post. "Managed trade [is] not in line with multilateral norms and not really good for the economy either." Since the new European Commission came to power just before Christmas under President Ursula von der Leyen, the EU has been trying to deliver the message that outside the United States and China, the bloc is of equal strategic importance. Much of that centres around trade, and the new trade commissioner, Phil Hogan, who happens to be in Washington this week. Top of his mind will be finding a way to persuade Trump not to wage a tariffs war with the EU – a scenario that has haunted the bloc in recent months amid disputes over France's new digital services tax and European support for Boeing's chief rival, Airbus. But pessimism persists in Brussels. "With South Korea, Japan, Canada, Mexico and now China under his buckle, the Trump administration has already indicated to dust off the outstanding issues with the EU – namely the trade deficit," said Tobias Gehrke, a research fellow at the Brussels-based Egmont Institute. "There will be no easy answers to this question and 2020 will likely see a further deterioration of the transatlantic relationship." EU officials have also complained about the slow progress in discussions towards the investment agreement with China, which is slated for the end of the year. Initial hopes of the agreement coinciding with President Xi Jinping's visit to Leipzig, Germany to meet all 27 EU heads of state in September have largely evaporated in recent weeks. And with Beijing securing a partial deal with Washington – with little mention of tough issues like structural reforms or state subsidies – some in Brussels fear it will only embolden China at the negotiating table. "The phase one deal provides a sober reality: China's increase in trade purchases seems to leave it off the hook for structural reforms and binding commitment on issues such as industrial subsidies or forced technology transfer," Gehrke said. The deal has other trading partners worried too, including Brazil. Its soybean exporters are expecting to take a hit after benefiting from the trade war. "The negotiations between China and the US have been a concern for the Brazilian agribusiness sector during all of 2019. The general perception among its leaders is that any deal between Beijing and Washington will have negative consequences for Brazil's agricultural exports," said Mauricio Santoro, an assistant professor in international relations at the State University of Rio de Janeiro. He said Brazilian exports to China were highly concentrated – with around 80 per cent in soybean, iron ore, oil and meat. Brazil is the world's largest soybean exporter and the main supplier to China. "It is natural that agribusiness is concerned about the risk of losses. But on the other hand, it is worth noting that Brazil in general will probably benefit from a truce in the trade war," he said. "The country needs a stable global economy in order to recover foreign investment and to resume its economic growth after almost a decade of recession and very low GDP performance – little over 1 per cent yearly." ^ top ^

Avoid raising Kashmir dispute at United Nations, India asks China (SCMP)
2020-01-16
India on Thursday asked China to avoid raising the Kashmir dispute at the United Nations Security Council, insisting it is a bilateral matter between India and Pakistan. The government issued a statement on Thursday, a day after China requested a review by the UN Security Council of the UN observer mission in Kashmir. "China should reflect on a global consensus on Kashmir and avoid raising it at the United Nations," Indian External Affairs Ministry spokesman Raveesh Kumar said in New Delhi. Most countries on the 15-member council have urged India and Pakistan to cool the dispute and resolve it between themselves. But on Wednesday, China's UN ambassador warned against further escalation of strife between India and Pakistan over the disputed Kashmir region and expressed hope that a Security Council meeting called by Beijing might help both countries seek a solution through dialogue. Kumar said India had raised the matter with China in the past. The latest flare-up in conflict was sparked by a decision by India's Hindu nationalist-led government to end the semi-autonomous status of Muslim-majority Kashmir on August 5. A harsh crackdown ensued, with New Delhi sending tens of thousands more troops to the already heavily militarised region, imposing a sweeping curfew, arresting thousands and cutting off virtually all communications. Authorities have since eased several restrictions, lifting roadblocks and restoring landlines and cellphone services, but internet service is yet to be restored in the Kashmir valley. Also on Thursday, India's External Affairs Ministry said India would invite Pakistan Prime Minister Imran Khan to attend the 19th council of heads of government of the Shanghai Cooperation Organisation which will be hosted by India later this year. "As per the established practices and procedures within the SCO, all eight members of the SCO as well as four observer states and other international dialogue partners will be invited [by India]," the ministry said. India and Pakistan both became full members of the SCO in June 2017. The SCO was founded at a summit in Shanghai in 2001 by the presidents of Russia, China, Kyrgyzstan, Kazakhstan, Tajikistan and Uzbekistan to promote multilateral economic cooperation. ^ top ^

Chinese ambassador warns Dutch government against restricting ASML supplies (SCMP)
2020-01-16
Trade relations between China and the Netherlands would be damaged if Dutch semiconductor equipment supplier ASML is not allowed to ship its newest machines to China, Beijing's ambassador to the Netherlands was quoted as saying on Wednesday. Reuters reported last week that the Netherlands had withheld the licence ASML needs to export its newest machines to China following pressure from the US government. ASML, one of the Netherlands' largest companies, is a near monopolist in lithography, an essential step in the manufacture of computer chips. China has invested billions to develop its burgeoning semiconductor industry, but needs ASML equipment if its chip makers are to compete with the best in Taiwan, South Korea and the United States. "We are concerned that the Netherlands is politicising our trade relationship under American pressure," Chinese ambassador Xu Hong was quoted as saying in the Het Financieele Dagblad newspaper. "If this movement continues it will of course negatively affect bilateral relations." After a lengthy trade war, the United States and China are expected to announce a limited trade deal on Wednesday that will not resolve disputes over technology transfers. A spokeswoman for the Chinese embassy confirmed Xu had been interviewed by the newspaper, and said the embassy would publish a complete transcript later on Wednesday. In the interview, Xu noted that China was an important export market for the Netherlands. In 2018, the Netherlands also imported 39.2 billion euros (US$43.7 billion) worth of Chinese goods, two-thirds of which was exported on to other countries. ASML, which is due to report full-year earnings next week, has said it cannot ship its newest machines without a licence, as they are considered "dual use" goods with potential military applications. It says an export request is under consideration. Prime Minister Mark Rutte told reporters on Friday the government treated dual use export requests on a case-by-case basis and he would not comment on individual cases. Foreign Ministry spokeswoman Irene Gerritsen said on Wednesday the government did not have any new response in light of Xu's remarks. "When deciding whether to issue an export license, the Dutch government weighs both the economic and security interests," she said in an emailed statement. ^ top ^

Chinese, Vietnamese leaders agree to further promote bilateral ties (Xinhua)
2020-01-16
Chinese President Xi Jinping spoke over phone with Vietnamese President Nguyen Phu Trong on Thursday, and the two leaders agreed to make joint efforts to cement bilateral relations. This year marks the 70th anniversary of China-Vietnam diplomatic ties, and is also of great importance in the socialist causes of both countries, noted Xi, who is also general secretary of the Communist Party of China (CPC) Central Committee. Xi said that as both the Chinese and Vietnamese people are preparing for the traditional Spring Festival, he is pleased to have this phone conversation with Trong, who is also general secretary of the Communist Party of Vietnam (CPV) Central Committee. "In recent years, I have kept close contact and exchanges with Comrade General Secretary Trong, and we have reached a series of important consensus on the development of relations between our countries and between our parties," Xi added. The sound development of China-Vietnam ties, Xi said, has injected new impetus to the socialist causes of both countries and made positive contributions to regional and global peace and development. China and Vietnam are good neighbors, good friends, good comrades and good partners with a closely interconnected future, Xi said, adding that the socialist causes of both countries are developing vigorously while facing increasing risks and challenges. The Chinese leader said he is ready to strengthen strategic communication with his Vietnamese counterpart and jointly draw a blueprint to guide the development of China-Vietnam relations in the new era. "We need to continuously consolidate political mutual trust, carry forward our traditional friendship, and strengthen the foundation of our bilateral ties," Xi suggested. Meanwhile, the two neighbors should properly handle and solve their differences with the larger picture in mind and from a long-term view, and secure a favorable external environment for both countries' development, he added. They also need to seize the opportunities and build on the momentum to comprehensively lift the level of exchanges and cooperation, promote the joint construction of the Belt and Road, and continuously expand bilateral exchanges and cooperation, so as to enable the people of both countries to enjoy a stronger sense of fulfillment and happiness, Xi said. Xi pointed out that the CPC and the CPV not only serve as the leadership core for their respective socialist causes, but also play a key leading role in guiding China-Vietnam relations. Noting that the CPV is about to celebrate the 90th anniversary of its founding, Xi, on behalf of the CPC and the Chinese people, expressed warm congratulations to the CPV and the Vietnamese people. The CPC, Xi added, stands ready to join hands with the CPV to open new prospects for the two countries' socialist causes as well as their relations in the new era. Trong, for his part, said he is glad to talk with Xi over phone ahead of the Spring Festival and the 70th anniversary of China-Vietnam diplomatic ties. He extended congratulations on the 70th anniversary of the founding of the People's Republic of China and on the great achievements China has made during the past more than 40 years of reform and opening-up. He also thanked China for its long-running valuable support and assistance for Vietnam's national liberation and socialist cause. Over the past 70 years, Vietnam-China ties have generally maintained positive momentum of development, Trong said, adding that facing new circumstances and missions, Vietnam hopes to work with China to push for greater development of bilateral relations. He called for joint efforts to strengthen political mutual trust and exchanges of governance experience, promote practical cooperation in economic and other fields, consolidate the public support for bilateral friendly cooperation, and enhance communication and collaboration on multilateral occasions. Xi and Trong also exchanged Spring Festival greetings to each other and jointly wished the people of both countries a happy new year. ^ top ^

China confident about Russia ties amid power shift in Moscow (SCMP)
2020-01-16
Pressure from the West will draw China and Russia closer, irrespective of changes at the top in Moscow, according to diplomatic observers. The assessment came after Russian President Vladimir Putin called for sweeping constitutional changes, fuelling speculation that Putin could hold on to power after leaving the presidency in 2024. In his state-of-the-union address on Wednesday, Putin outlined proposed changes to the constitution that would strengthen the roles of the parliament and other government bodies, weakening the potential influence of his successor. Chinese President Xi Jinping and Putin have forged a close relationship, meeting nearly 30 times in the past six years. During a trip to Moscow last year Xi described his Russian counterpart as his "best friend". On Thursday, Beijing was quick to dispel questions about the future of ties between the two countries, which have deepened as their relations have been strained with the West, particularly the United States. Foreign ministry spokesman Geng Shuang said China "remains full of confidence about deepening and developing the partnership with Russia". "Under the strategic guidance of Chairman Xi and President Putin, the comprehensive strategic partnership of coordination has entered a new era, become more mature, stable and resilient, and is not subject to the changes in international relations and each of our domestic political development," Geng said. Hu Xijin, editor-in-chief of influential nationalist tabloid Global Times, echoed the line on Weibo, a Twitter-like platform. "Russia is fine. The resignation of the Medvedev government is obviously planned by the Russian political figures," Hu said in a post on Wednesday. Hu later said the "long-term stability" of Russia was crucial to China's national interest, and that "the Chinese people should not be mistaken about" Putin's contribution in strengthening ties between the two countries. Moscow has turned to Beijing to counter pressure from Western sanctions imposed over Crimea, while Beijing's ties with Washington have been strained by a bitter trade war. Zhang Xin, an associate professor at the school of advanced international and area studies at Shanghai's East China Normal University, said the closer ties between China and Russia "increasingly build on the common pressure they feel, particularly from the West, particularly the United States". "That feeling of a common threat will probably play a role in further consolidating ties between China and Russia," Zhang said. Alexander Gabuev, senior fellow and the chair of the Russia in the Asia-Pacific Programme at the Carnegie Moscow Centre, said the political stability both leaders enjoyed would extend their common resolve on various international issues. "Since Putin is not really going anywhere... the strategic rapport with Xi Jinping will continue to play its role," Gabuev said. "From the geopolitical viewpoint... China and Russia will still remain the two authoritarian superpowers at the United Nations, where they will present an alternative view to the US... trying to define global rules [for example] on the internet, digital economy and the understanding of human rights," he said, noting the two were "likely to remain in the same boat" after Putin was succeeded as president. But Wang Xianju, a Russian affairs specialist at Renmin University, said the two countries were held together by more than the chemistry between the two leaders. "The two countries share common interests on many regional issues such as on North Korea and in the Middle East. The two economies are also compatible in particular in terms of energy," Wang said. He said that while the US' trade war with China could prompt it to improve ties with Russia, Nato's eastward expansion and Europe's long-standing suspicion towards Russia meant it was unlikely that Moscow's ties with Beijing would be threatened. Gabuev also said Russia could pursue better ties with the West under the next president, but it would not be "at the expense" of its relations with China. "Russia will continue to try and build its economic interdependence with China and will still be on the same page in terms of values and powers of the state over rights of the people. That won't change much." ^ top ^

China urges Britain to make independent decision on 5G (Xinhua)
2020-01-15
China expressed the hope Wednesday that Britain will take an objective and fair position, make an independent choice in line with its own interests on the issue of 5G, and provide a fair, just, open and non-discriminatory business environment for Chinese enterprises. Foreign Ministry spokesman Geng Shuang made the remarks at a routine press briefing when answering a question concerning the U.S. pressure on Britain to ban the use of Huawei's 5G technology. Geng noted that Huawei has been operating in Britain for many years, investing billions of pounds, supporting tens of thousands of jobs, setting up joint research centers and actively fulfilling social responsibility. He urged the United States to stop generalizing the concept of national security, smearing and blaming China and suppressing Chinese companies unreasonably. "What is the real intention of the United States to slander China and suppress Chinese enterprises? I believe any country that upholds an objective and fair position can clearly see," Geng said. ^ top ^

 

Domestic Policy

CPC leadership holds meeting to deliberate reports (Xinhua)
2020-01-16
The Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting on Thursday to deliberate three reports. Xi Jinping, general secretary of the CPC Central Committee, presided over the meeting. Among the reports was a comprehensive report that was prepared after the Standing Committee of the Political Bureau of the CPC Central Committee heard and discussed the work reports from leading Party members groups of the Standing Committee of the National People's Congress, the State Council, the National Committee of the Chinese People's Political Consultative Conference, the Supreme People's Court, and the Supreme People's Procuratorate, as well as from the Secretariat of the CPC Central Committee. A comprehensive report on the fourth round of disciplinary inspections launched by the 19th CPC Central Committee and a report on the key work of the central leading group on disciplinary inspection in 2019 were also deliberated. The meeting fully recognized the performance of the leading Party members groups and the CPC Central Committee Secretariat in 2019 and agreed on their work plans for 2020. The leading Party members groups were asked to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and closely follow the CPC Central Committee in terms of thinking, political orientation, and actions, according to a statement issued after the meeting. They were also urged to complete their tasks to secure victory in building a moderately prosperous society in all respects and ensure the full implementation of major policies and decisions made by the CPC Central Committee. The Secretariat of the CPC Central Committee should center on the work of the CPC Central Committee Political Bureau and its standing committee, and complete all tasks assigned by the CPC Central Committee, said the statement. The fourth round of disciplinary inspection launched by the 19th Central Committee of the CPC has achieved remarkable outcomes and played a proven role in political oversight, the meeting noted. Stressing central Party and state institutions' special and important position in the governance system of the Party and the country, the statement urged them to take the lead in strengthening the political work of the Party and to put in practice the leadership of the Party in all fields and aspects. The meeting required efforts to rectify problems exposed in the inspections so as to consolidate the achievements of the reform of Party and state institutions and advance the modernization of China's system and capacity for governance. The meeting acknowledged the performance of the central leading group on disciplinary inspection in 2019 and agreed on its work plan for 2020. Disciplinary inspection work has been further institutionalized and standardized, becoming more effective, the statement read. The meeting hailed disciplinary inspections as a sharp weapon for ensuring full and strict governance over the Party and an effective institutional arrangement for identifying problems. It called for strengthened oversight over the implementation of rules and regulations and the exercise of power. ^ top ^

China increases military recruitment frequency, aims to keep high vigilance (Global Times)
2020-01-16
China will increase the frequency of its military recruitment and retirement to twice a year, up from once, starting 2020, to maintain a smooth flow of troops, the military's high vigilance and to better train new recruits. The change was announced in a statement on the recruitment work joint released by the State Council and the Central Military Commission in Beijing, the Xinhua News Agency reported on Thursday. The first recruitment will be held from mid-February to the end of March, and the second from mid-August to the end of September, Xinhua reported, noting that retirement for military personnel will also change to twice a year. Ren Guoqiang, a spokesperson at the Ministry of National Defense, said on Thursday that while the total number of annual recruits will remain stable compared with previous years, the increased frequency will allow a smooth flow of troops and maintain the military's high vigilance. This will further improve the quality of recruits and the recruitment training programs, which will contribute to combat capability development, Ren said. Conscripts shall serve in the military for two years, according to the country's Military Service Law. University students will remain as key recruitment targets, Ren said. ^ top ^

Chinese export powerhouse bets on infrastructure to help stabilise economy (SCMP)
2020-01-16
The southern Chinese province of Guangdong will keep pouring money into infrastructure and job creation this year to stabilise the economy as it battles strong economic headwinds, provincial officials said on Wednesday. But the province was in good financial shape and could fund its building and investment drive through local revenue and bond issues, the officials said on the sidelines of the provincial legislature's annual conference. Chen Yiwei, director general of the Guangdong Department of Human Resources and Social Security, said the province was facing challenges from China's slowing economic growth and external issues like the China-US trade war. "We will face great complications and difficulties in the new year to keep employment stable," Chen said. "This is caused by mounting downward pressure on the economy and because of the trade conflicts between China and the United States." Officials at the conference said Guangdong, an export powerhouse, had set a relatively low growth target of 6 per cent for 2020. Last year, the province, one of the richest in the country, registered a modest 6.3 per cent growth, down half a percentage point from 2018. Guangdong would increase spending virtually across the board, it would target the service sector for job creation in 2020, they said. Authorities would encourage more employment through ventures like the Didi ride-hailing service and popular online food delivery firm Meituan Dianping. In addition, the government would help university graduates set up businesses and early retirees to rejoin the workforce. Chen said the government would step up vocational training for migrant workers and offer support to young entrepreneurs from Hong Kong and Macau to launch businesses in Guangdong, particularly in the Greater Bay Area. The officials also projected infrastructure to help keep driving the economy, unveiling massive investment plans for highways and railroad networks across the province. Guangdong originally planned to put 650 billion yuan into major infrastructure projects in 2019 but overshot the target by more than 20 per cent, reaching 784.9 billion yuan, according to Ge Changwei, head of the Guangdong Development and Reform Commission. "Through increased investment in major projects, [we have] effectively stabilised and supported our fixed capital [growth], and contributed to the stable economic growth of the province," Ge said. "In 2020, our budgeted investment will amount to 700 billion yuan in a total of 1,230 major projects, up 50 billion yuan from last year." Much of the money would be used to expand the transport network, including highways, high-speed rail and new airports. Dai Yunlong, head of the Guangdong Department of Finance, said the province would issue more government bonds to finance the investment plans but also offer tax breaks to enterprises, especially small businesses to support the job market. Guo Wanda, from the China Development Institute, a Shenzhen-based think tank, said Guangdong's economic game plans were in line with China's national strategies to keep employment, finance, trade and investment stable in the new year. "Infrastructure investment is an important aspect that can ease the effects brought by the trade frictions [between China and the US]," he said. Hu Xingdou, a Beijing-based economist, said China's economy would continue to face downward pressure in 2020 but unemployment would be under control and not cause social instability. Hu said new businesses like start-ups would help absorb some people left jobless by the economic downturn but, in the long term, "China will need to put greater emphasis on the private sector" to help create jobs, he said. "That's the key to solving the unemployment problem." In the near term, the government would likely focus on finding jobs for new graduates and support them through tax breaks and subsidies, Hu said. ^ top ^

Wuhan pneumonia: World Health Organisation links China virus outbreak to single seafood market in Wuhan and says it's not spreading (SCMP)
2020-01-13
An outbreak of pneumonia that has killed one person in China and infected 40 others appears to be linked to a single seafood market in the central city of Wuhan and has not so far spread beyond there, the World Health Organisation said on Sunday. The cluster of infections had raised fears of a potential epidemic after China said last week that the virus causing it was a previously unknown type but came from the same family of viruses that caused the SARS and Mers epidemics. However, the WHO said the outbreak had not spread. The seafood market in Wuhan – a major domestic and international transport hub – is now closed and no cases have been reported elsewhere in China or internationally, it said. "The evidence is highly suggestive that the outbreak is associated with exposures in one seafood market in Wuhan," the WHO statement said, adding that the market was closed on January 1. "At this stage, there is no infection among health care workers, and no clear evidence of human to human transmission." The WHO said last week that a newly emerging member of the 'coronavirus' family of viruses that caused the deadly Severe Acute Respiratory Syndrome (SARS) and Middle East Respiratory Syndrome (Mers) outbreaks was the likely cause of the outbreak. Coronaviruses can cause infections ranging from the common cold to SARS. Some types cause less serious disease, while others can be far more severe. Among 41 people confirmed as infected with the new viral pneumonia, one – a 61-year-old man with serious underlying medical conditions – died last week. Seven others are in critical condition, the Wuhan health authorities said on Saturday. The WHO said preliminary epidemiological investigations had found most cases were in people who either worked at or were frequent visitors to Wuhan's Huanan Seafood Wholesale Market. "To date, investigations are still under way to assess the full extent of the outbreak," it added. ^ top ^

Former head of China Development Bank expelled from Communist Party, facing prosecution (SCMP)
2020-01-11
The former head of a Chinese state bank has been expelled from the Communist Party for serious violations of discipline and laws, and is set to face criminal prosecution, according to the country's anti-corruption watchdog. Hu Huaibang, a former chairman of China Development Bank (CDB), is accused of exploiting his position for financial gain and taking bribes directly or through his relatives, the Central Commission for Discipline Inspection said in a statement on Saturday. "The investigation found that Hu violated the eight-point code on party and government conduct, sought profits for others in personnel promotion by taking advantage of his posts, wantonly traded power for money, and connived with his relatives, allowing them to use his influence to seek personal gains," it said. CDB is one of China's three policy banks, and issues loans at the direction of Beijing. It plays a crucial role in the financing of domestic infrastructure schemes and strategic investments overseas, including projects under the Belt and Road Initiative. The other two policy banks are the Agricultural Development Bank of China and the Export-Import Bank of China. Hu, 64, joined the CDB in 2013 and retired in September 2018. A month after he stepped down, it was revealed that he had been linked to the corruption case against former Gansu Communist Party secretary Wang Sanyun, who was sentenced to 12 years in prison in April last year after being found guilty of taking 66 million yuan (US$9.5 million) in bribes. As well as the corruption allegations, the CCDI said Hu had indulged a decadent lifestyle and had refused to cooperate during its investigation. The anti-corruption watchdog's records show that about 20 vice-minister level officials were punished last year, including former Yunnan party boss Qin Guangrong. A total of 485,000 party members of different ranks faced disciplinary action in the year, with 19,000 cases being handed to prosecutors. ^ top ^

 

Shanghai

Shanghai introduces facial recognition drug collection terminals to combat abuse by patients and pharmacists (SCMP)
2020-01-17
Shanghai has begun rolling out a drug collection terminal equipped with facial recognition technology for people buying certain medicines at pharmacies and hospitals in an effort to stem abuse. At the new terminals, pharmacists and buyers of controlled medicines – such as those containing sedatives and psychotropic substances – will be asked to verify their identities by scanning their faces, according to local reports on Wednesday. The system, which scans both pharmacists and patients, is designed to flag potential and high-risk abusers as well as prevent health care professionals from colluding to help patients illegally obtain drugs. The move is expected to prevent potential abusers from obtaining prescription medicines containing ephedrine, psychotropic substances and tranquilisers and turning them into raw materials to produce illegal drugs – an increasing problem in China and the rest of the world, according to state news outlet China News Service. For instance, ephedrine or pseudoephedrine, commonly found in cold and allergy medications, is a key component of crystal meth. Shanghai's health care and anti-drug agencies have been testing the terminals since November and expect to achieve full coverage of all of the city's medical institutions by the first half of next year, state-funded The Paper reported. So far, the trial system has been adopted by 31 health care organisations across seven districts and performed more than 300 facial scans, according to China News. The drug collection terminals are yet another example of the ever-expanding applications of facial recognition technology in China, where it is increasingly becoming part of people's lives and used for everything from mobile payments to identifying jaywalkers. After success with security and surveillance applications, China is now pushing the technology's adoption in the healthcare and education arenas. About 118 million Chinese people signed up for facial recognition payments in 2019 compared to 61 million in 2018, according to a report by iiMedia Research. By 2022, the research consultancy expects the number of users to exceed 760 million, about half of the country's population. While the government has touted benefits including security and convenience, the ubiquity of facial recognition in the country has also sparked concerns over privacy and data security: nearly 80 per cent of people in China fear that their facial data may be leaked, a survey by Nandu Personal Information Protection Research Centre showed. Last November, China had its first facial recognition lawsuit when a law professor sued a wildlife park after it replaced its fingerprint-based entry system with one that uses facial recognition. ^ top ^

 

Tibet

First Xinjiang, now Tibet passes rules to promote 'ethnic unity' (SCMP)
2020-01-13
Regulations to "strengthen ethnic unity" will take effect in Tibet in May, four years after similar rules were introduced in Xinjiang, according to Chinese state media. Officials in Xinjiang have occasionally cited similar regulations as justification for crackdowns on the region's ethnic Uygur community. Tibet's people's congress, the autonomous region's legislature, endorsed the rules on Saturday to take effect from May 1, the official Tibet Daily reported on Sunday. The report did not release the full text of the regulations, saying only that they contained "dos and don'ts" for the local governments and society to promote ethnic unity. Other neighbouring provinces, including Yunnan and Qinghai, approved similar regulations last year. According to Tibet Daily, the regulation requires all levels of government, companies, community organisations, villages, schools, military groups and religious activity centres be responsible for work on ethnic unity. They should support efforts to develop local trade, tourism and handicraft industries and build local brands, the report said. All types of companies are also encouraged "to integrate ethnic unity into the companies' management and culture, recruiting employees from all ethnic groups". Under the regulations, September is designated a month for activities to promote ethnic unity in the region. Addressing a national conference on Tibet in August 2015, Chinese President Xi Jinping said officials must focus on maintaining the unity of the nation and strengthening ethnic unity to promote the "sustainable, long-term and comprehensive stability of the society". Lin Qingzhi, deputy secretary general of the standing committee of Tibet legislature, said the regulations were designed to "unify the sense of community of the Chinese nation", official news site Tibet.cn reported. Tibet.cn also quoted an unnamed official overseeing the legislature as saying that "Tibet has entered a new era of long-term development with peace and stability. These regulations are to consolidate the practices and achievements in building harmonious ethnic relationships and to establish a model for all of the people and industries in Tibet." ^ top ^

 

Hongkong

Lam espouses 'one country, two systems' (China Daily)
2020-01-17
Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said she believed the "one country, two systems" principle will continue beyond 2047, as long as the special administrative region can uphold and fully implement the principle. Lam, in her first appearance in the Legislative Council this year for a question-and-answer session, said so long as the SAR strives to comprehensively implement the "one country, two systems" principle for the benefit of Hong Kong people, there will be sufficient reasons to believe that the institutional arrangement will go far, without the need for change. The Hong Kong leader acknowledged that the monthslong social unrest has reflected residents' lack of confidence in the "one country, two systems" principle. But she stressed that the SAR is an inseparable part of China, while the city is granted a high degree of autonomy. She called on people to cherish the principle, which has brought prosperity to the city, stressing that the SAR should safeguard the foundation of "one country" and respect the differences of "two systems". Lam made the remarks in response to those of legislator Ann Chiang Lai-wan, who said that many young people who took to the streets in the last seven months worried that "one country, two systems" will be replaced by "one system" after 2047. Article 5 of the Basic Law stipulates that the capitalist system and way of life in Hong Kong shall remain unchanged for 50 years from 1997. Lam said that many young people in Hong Kong were born after the return of sovereignty to China in 1997. The "one country, two systems" principle has ensured that they can be educated and find employment in a stable and prosperous city, she said. Lam urged the city's youth, who have been at the forefront of the often-violent protests stemming from the extradition bill incident, not to undermine the principle because of "temporary misunderstandings". "Otherwise, the scenario they worry about today may be triggered by their own hand," Lam said. Responding to lawmaker and convener of the pro-establishment camp Martin Liao Cheung-kong's question on the cultivation of national identity among the young, Lam said the SAR government held that people's national identity is crucial to the successful implementation of "one country, two systems" in Hong Kong. In the future, the SAR government will strive to enhance civil servants' and the younger generation's understanding of the nation, and the "one country, two systems" principle, through various forms, Lam pledged. This will include tours and field studies on the mainland, she explained. Lam also said an independent review committee designed to look into the social unrest is expected to be set up in February. ^ top ^

'Police apologise?' No, Hong Kong rioters should say sorry for chaos they brought to the city, force chief Chris Tang says (SCMP)
2020-01-16
Hong Kong's police chief rejected calls on Thursday for the force to apologise for their alleged violence during the ongoing social unrest, declaring that it is the "rioters" who need to say sorry for the harm they have caused the city. Even as he refused to back down, Commissioner of Police Chris Tang Ping-keung conceded the force could have handled the social unrest better during a two-hour grilling by predominantly pro-democracy Central and Western District Council members at a meeting to discuss the force's conduct over the past months since the anti-government protests began last June. So far, 7,019 people have been arrested during the movement sparked by an aborted extradition bill, with 1,092 prosecutions brought to the courts, including 547 cases of rioting. Asked whether the police had made mistakes in handling the protesters, Tang said: "Of course there is room for improvement … including in terms of our actions and strategies, communication with the media, our gear and my colleagues' attitudes when talking to citizens." During the rowdy session in which police supporters exchanged angry words with the councillors, the elected officials displayed photos and videos of protesters' bloodied faces. Venting their anger, they accused Tang of blindly protecting his men as no officers had been punished despite demonstrators' claims they were assaulted during dispersal actions. Democratic Party lawmaker and district councillor Ted Hui Chi-fung asked Tang whether officers were so "perfect and flawless" or were the top brass covering for their rank and file. Hui also asked whether Tang would apologise to the public for what he and other councillors called "police violence". Tang replied: "It is the rioters who should apologise for the harm they have done to society." He added that any officers found to have committed crimes would be dealt with in accordance with the law. On a recent poll that revealed 40 per cent of Hongkongers gave the force a satisfaction score of zero, Tang admitted public perception was "relatively bad" and worsening, but said it was partly because citizens were being misled by fake news. He rejected a call from councillor Ho Chi-wang to resign, saying he was in the right and that the people urging him to quit were just afraid of his righteousness. He categorically rejected remarks from councillors that there was "police brutality" in the city, telling those who claimed they have been mistreated by the force to formally file a complaint to the police's complaints division. Councillor Camille Yam Ka-yi told Tang that, after a recent demonstration, she saw that police had arrested a group of protesters in Central and tried to get close to assist the detained. But the officers responded by calling her a "cockroach" and shone a bright light in her eyes, she said. Tang said it was inappropriate for officers to use such language. Police have long referred to the protesters as cockroaches, with the other side often referring to members of the force as dogs. The meeting was packed with police supporters, some of whom called journalists present "rogue reporters" and one suggesting they should be assaulted. Council member Napo Wong Weng-chi waved a piece of raw pork at Tang, invoking a Chinese saying to accuse police of falsely arresting protesters. On Wednesday, the Post reported that police were looking to arm officers with weapons that stun suspects or entangle them in nets. Asked about this after the meeting, Tang said only that the force had been exploring different types of weapons to enhance operations efficiency. "One of the key issues is about the safety of the weapon. The purpose of exploring new types of weapons is to find alternatives to genuine firearms so that in appropriate cases we can use a less-lethal weapon," he said. On the teenage girl who claimed she was gang-raped inside Tsuen Wan police station in September last year, Tang said police had looked through CCTV footage and found no such evidence. The force is looking into whether the complainant had given a false statement to mislead police officers, Tang said. Immediately after the meeting, the council passed an impromptu motion in support of the establishment of an independent judge-led inquiry into the social unrest, as well as to condemn Tang for condoning "police violence". Tang and other officers walked out of the conference room while council chairwoman Cheng Lai-king was reading out the motion. On Thursday evening, the government issued a statement to say it disagreed with the motion. "The motion made unfounded allegations against police. The government disagrees with the impromptu practice of the council as well as the stance of the motion, and therefore all members of the government in attendance walked out of the meeting," it said. ^ top ^

 

Taiwan

Former US defence official calls US arms sales to Taiwan a catalyst for cross-Strait dialogue (SCMP)
2020-01-17
US military sales to Taiwan are a force for stability and a catalyst for cross-Strait dialogue, allowing Taipei to negotiate with Beijing "without a gun to their heads", said a recently departed senior US defence official and prime architect of the US Indo-Pacific strategy. "Our arms sales actually have a very good track record of promoting cross-Strait dialogue," said Randall Schriver, chairman of the Project 2049 Institute, a security-focused think tank, who left his job as assistant secretary of defence for Indo-Pacific affairs in late December. Schriver, who did not shed light on why he left the Pentagon, cited examples of the purported link in a speech at the Notre Dame Keough School of Global Affairs in Washington. The sale of 150 F-16s fighter aircraft to Taiwan in 1992 led a few months later to the first cross-Strait dialogue, he said. The sale of US$6.4 billion in missiles, helicopters and other weaponry in 2008 during the Obama administration led to the historic 2010 China-Taiwan Economic Cooperation Framework Agreement reducing tariffs and trade barriers. And the sale of a major package of destroyers, helicopters and amphibious vehicles in 2001 was followed by China and Taiwan both joining the World Trade Organisation. The US is required to defend the self-governed island under the 1979 Taiwan Relations Act. Beijing – which views Taiwan as a wayward province to be united with the mainland, by force if necessary – strongly opposes US weapon sales and in no way sees US arms sales to Taipei as a contributor to dialogue and stability. The Chinese embassy in Washington did not immediately respond. But following the most recent US$2.4 billion sale of tanks and missiles announced in July, the Chinese Foreign Ministry said in a statement that Washington's move violated China's territorial sovereignty and national security. "To protect our national interest, China will impose sanctions on the US companies involved in the arms sale," ministry spokesperson Geng Shuang was quoted as saying. Analysts saw the response as relatively muted, however, as Beijing and Washington faced off in their protracted trade war. Schriver, a China hawk and former US liaison with the People's Liberation Army, said US policy is not anti-China. But as Beijing has expanded in the South China Sea and adopted a more confrontational approach, competition between the two superpowers has increased on a host of regional, global, cyber and space fronts. "It's global in nature. But the primary driver for PLA military modernisation remains Taiwan," he said. "The primary source of tension between the US-China remains Taiwan, I would argue. And the most likely place where we'd have a problem, if not a crisis, remains Taiwan." If Beijing at some point attempts to impose its control over Taiwan by force, as it has threatened to do, the island has natural defences, including the 80 nautical miles of ocean separating the island from China and its difficult mountainous terrain. But Taipei needs to do more and do it faster to better defend itself, he added, including buying and deploying the right weapons systems and developing more flexible defence strategies. Russell Hsiao, executive director of the Global Taiwan Institute, said Schriver's argument that US arms sales lead to greater cross-Strait dialogue is somewhat counter-intuitive. "But people miss the element of Taiwan feeling it has the capacity to negotiate on a more equal footing," he said. "The logic is, with more meaningful arms sales to Taiwan that could deter Beijing from using force." Schriver said Beijing has been very successful at isolating Taipei diplomatically. In September, the Solomon Islands and Kiribati both officially recognised China and cut state ties to Taiwan, which left the island with just 15 allies, down from 22 in 2016. "They will continue to put the squeeze on Taiwan," he said. But Taipei can expand its international space in other ways, including through such vehicles as the Global Cooperation and Training Framework, a platform allowing Taiwan to confer with countries in public health, law enforcement and other sectors. Tiffany Ma, a senior director at BowerGroupAsia consultancy, said Taiwan also needs to diversify and modernise its economy, not only for economic reasons, but also as a way to strengthen ties with the US, Australia, Canada, Japan and other nations. Beijing's rather blunt tactics in isolating Taiwan could backfire, added Sean King, senior vice-president with consultancy Park Strategies LLC. "Beijing is almost pushing Taiwan to establish its own identity by isolating Taiwan," he said. "Trying to say the ROC doesn't exist almost brings forward the creation of an independent Taiwan," he added, referring to the Republic of China, Taiwan's official name. While US-Taiwan relations are at a high point, some also questioned how long this would last, given US President Donald Trump's mercurial, transactional style. "Now that he has got his trade deal, will he dial back his support of Taiwan?" King said. "If Trump gets something from China in the election, he could push Taiwan aside." ^ top ^

Tsai Ing-wen says Beijing must face reality that Taiwan is 'an independent country already' (SCMP)
2020-01-15
Taiwan's President Tsai Ing-wen on Wednesday said mainland China needed to face the reality that the island was "an independent country already", in remarks certain to infuriate Beijing following her election win. In an interview with the BBC, Tsai also said the democratic island deserved respect from Beijing. "We don't have a need to declare ourselves an independent state," Tsai told the BBC. "We are an independent country already and we call ourselves the Republic of China, Taiwan." Tsai garnered a record 8.17 million votes to secure a second term in Saturday's presidential election – a convincing win over her main rival, Han Kuo-yu from the Beijing-friendly Kuomintang, that gives her a mandate to continue her approach to cross-strait relations. Official ties have been suspended since Tsai took office in 2016 and refused to accept the one-China principle – a political understanding that there is only one China with ambiguity over whether it is governed by Taipei or Beijing. Mainland China sees Taiwan as part of its territory to be returned to its control, by force if necessary. With Tsai as president, Beijing has ramped up pressure on the island, including by poaching its diplomatic allies and staging military drills nearby. But Tsai warned against any military action from Beijing, which responded to her re-election by accusing her independence-leaning Democratic Progressive Party of "dirty tactics". "Invading Taiwan is something that is going to be very costly for China," she said. "We're a successful democracy, we have a pretty decent economy, we deserve respect from China." In Beijing on Wednesday, Ma Xiaoguang, spokesman for the Taiwan Affairs Council, said any pro-independence activities seeking to separate the island from the mainland would not be tolerated. "We firmly attack and counter various forms of Taiwan independence and separatist activities in order to maintain overall peace and stability in the Taiwan Strait," Ma said in a press briefing. He said Tsai had "unilaterally damaged" the basis for official exchanges by refusing to accept the one-China principle. Ma added that Tsai had supported and tolerated the pro-independence movement in Taiwan, which he said would only block cross-strait exchanges and cooperation. In the BBC interview, Tsai said she believed her election victory was proof of how little appetite there was now for the "one China concept" and the ambiguity it created over Taiwan's status. She said the "situation has changed" and such "ambiguity can no longer serve the purposes it was intended to serve". She also insisted that the sovereignty of the self-governing island was not in doubt or up for negotiation. Responding to Taiwan's election results and Tsai's call to reopen talks with Beijing on the basis of peace, parity, democracy and dialogue, Ma said the one-China principle was the only basis for official exchanges. "Moving a mountain would be easier than moving the [principle]," the Taiwan Affairs Council spokesman said. Taiwan's future was unification with the mainland, he said, and that future was "decided by all compatriots of China, including those from Taiwan". Tsai has repeatedly said that Taiwan's future must be decided by the 23 million people on the island. Ma continued that the election outcome would not change the fact that Taiwan was part of China and that unification was inevitable. In her victory speech on Sunday, Tsai said the vote showed that when Taiwan's sovereignty and democracy came under threat, the Taiwanese would speak loudly. Ma also said that mainland health authorities had shared information with Taiwan on the coronavirus outbreak in Wuhan, allowing two experts from the island to visit the central city on Monday and Tuesday to find out more about the new strain of pneumonia. Forty-one people have so far tested positive for the virus, and one of them has since died. Analysts expected Beijing to continue its carrot-and-stick approach to dealing with Taiwan for now. "Allowing Taiwan to send experts to Wuhan was an olive branch from the Chinese side, though it is obviously aimed at the Taiwanese people," said Fan Shih-ping, a political science professor at National Taiwan Normal University. ^ top ^

China urges countries to abide by one-China principle after Taiwan leadership election (Xinhua)
2020-01-12
China opposes any forms of official ties between Taiwan and countries that have diplomatic relations with China, a Foreign Ministry spokesperson said Sunday, urging countries to abide by the one-China principle. Spokesperson Geng Shuang's remarks came after senior officials of some countries that have diplomatic ties with China, including the United States, Britain and Japan, congratulated Tsai Ing-wen on the Taiwan leadership election result. The election in Taiwan is a local affair of China, Geng said, stressing that China deplores and firmly opposes those countries' violation of the one-China principle by taking such a move, and has lodged solemn representations. The Taiwan question concerns China's core interests, said Geng. "We oppose any forms of official ties between Taiwan and countries that have diplomatic relations with China," he said, noting that the one-China principle is a basic norm governing international relations and a universal consensus of the international community. China urged those countries to earnestly abide by the one-China principle, refrain from having any official ties or exchanges with Taiwan, deal with Taiwan-related issues properly and with caution, and avoid sending any wrong signals to the "Taiwan independence" forces, said the spokesperson. He added that those countries should take concrete actions for the peaceful development of relations across the Taiwan Strait, and strive to uphold their relations with China. ^ top ^

 

Economy

PBOC to focus on growth and yuan stability (China Daily)
2020-01-17
Maintaining currency stability and strengthening economic growth will be key objectives of the monetary policy this year, as flexible measures from the People's Bank of China, the central bank, will help maintain ample liquidity in the financial system, officials said on Thursday. Though there is still room for lowering the reserve requirement ratio (RRR), or the cash set aside by commercial banks as reserves, to inject additional liquidity if necessary, the window is limited, said Sun Guofeng, head of the monetary policy department of the PBOC. Monetary policies will stress on dampening inflation expectations, maintaining yuan stability and supporting economic growth, said Sun. China's consumer inflation increased by 2.9 percent in 2019, driven by surging pork prices. Responding to queries on whether the central bank will cut interest rates in the future, Sun said the new benchmark lending rate-the loan prime rate-has dropped since it was first introduced in August last year. "The LPR reflects the current market demand and supply," he said. According to the PBOC, most of the financial data for 2019 that were released on Thursday indicate a stable growth in money supply and credit and stronger financial support for the real economy. The broad money supply, or M2, increased by 8.7 percent last year, the highest level in almost two years, compared with 8.1 percent a year earlier and 8.3 percent by the end of November, according to the People's Bank of China. The outstanding amount of total social financing, a broad measure of credit and equity capital supporting the real economy, increased by 10.7 percent on an annual basis in December. The total social financing increased by 2.1 trillion yuan ($305 billion) last month, 171.9 billion yuan higher than the same period in 2018. The statistical range of this indicator has been enlarged since last month, with treasury bonds and all types of local government bonds, including special bonds, included in the calculation. "The newly incorporated total social financing will include fiscal and monetary policies to improve coordination and enhance macroeconomic administration," said Ruan Jianhong, head of the central bank's statistics and analysis department. New yuan loans increased by 12.3 percent year-on-year in December, compared with 13.5 percent in the same period last year, with outstandings up by 16.81 trillion yuan in 2019 compared with the level in 2018, the PBOC said. The latest financial data show that there is reasonably ample liquidity in the banking system, said Ruan. The accelerated growth of both money supply and credit was a result of the counter-cyclical adjustments of the monetary policy, mainly because of the faster growth in bond issuances and commercial banks' stronger lending to small-and medium-sized companies, said Ruan. Earlier, the central bank had injected 400 billion yuan into the financial sector on Wednesday, to maintain sufficient liquidity ahead of the upcoming Lunar New Year. This follows the RRR cut announced on Jan 6. The PBOC has also injected 300 billion yuan through the medium-term lending facility (MLF), while keeping the one-year MLF interest rate unchanged at 3.25 percent. The LPR will be revised again on Jan 20, based on the MLF adding risk premium, and some analysts expect the LPR to fall by 0.5 percentage point this month. ^ top ^

Economic Watch: China's home prices remain stable amid targeted regulation (Xinhua)
2020-01-16
House prices in 70 major Chinese cities remained stable in December as regulators continued to limit speculation. On a monthly basis, new home prices in four first-tier cities -- Beijing, Shanghai, Shenzhen and Guangzhou -- increased 0.2 percent in December, 0.4 percentage points lower than the previous month, while the prices of resold houses edged up 0.4 percent, the National Bureau of Statistics (NBS) said in an online statement. The real estate market in smaller cities also showed signs of stabilizing as the 31 monitored second-tier cities and 35 monitored third-tier cities saw growth rates of 0.3 percent and 0.6 percent, respectively. The prices of resold houses in second-tier cities saw a slight increase of 0.1 percent last month while those in third-tier cities registered a 0.2-percent growth. NBS chief statistician Kong Peng attributed the property market's stable development to the central government's continued efforts to stabilize land and home prices. The number of cities that saw declining housing prices in 2019 exceeded that in the same period of 2018, according to a report from the Chinese Academy of Social Sciences. The Chinese government has upheld the principle of "housing is for living in, not speculation" over the years to ensure the healthy development of the property market. The year 2019 saw intensified regulatory efforts with local authorities introducing a new round of measures tailored to local conditions. Last year, some cities tightened the regulation of the property market while others moderately relaxed the purchase restrictions. Some cities have rolled out preferential policies to lure and retain skilled workers. The two-way targeted regulation of the property market protects the housing supply while curbing speculation, said Wu Jianbin, executive vice-president of Yango Holdings Group. A total of 620 measures on house prices regulation were rolled out in 2019, up 38 percent from 2018, said Zhang Dawei, chief analyst with the real estate agency Centaline Property. The central government has been working on maintaining the stability of real estate policies, completing the land regulation mechanism and making other efforts to advance the sound development of the real estate sector. China's central bank also stressed continuous special operations in establishing a long-term management scheme for real estate finance. The tone-setting Central Economic Work Conference held last month reiterated a long-term mechanism to maintain the sound and healthy development of the real estate market and decided to guarantee housing for low-income families in cities and further develop rental housing. ^ top ^

 

DPRK

US sanctions China-based entity over North Korean overseas workers (SCMP)
2020-01-15
The United States on Tuesday imposed sanctions on two North Korean entities it accused of facilitating the export of workers from North Korea in violation of United Nations sanctions. The US Treasury Department announced the sanctions on the Korea Namgang Trading Corp and China-based North Korean lodging facility Beijing Sukbakso, despite US efforts to revive stalled talks aimed at persuading North Korea to give up its nuclear weapons. It said the former entity had facilitated, or been responsible for, the exportation of workers from North Korea to generate revenue for the North Korean government or ruling party. It said the latter ran a China-based lodging facility to assist in labour export. "The exportation of North Korean workers raises illicit revenue for the government of North Korea in violation of UN sanctions," Treasury Secretary Steven Mnuchin said in a statement. The sanctions imposed on Monday freeze any US assets of the blacklisted entities and generally prohibit Americans from doing business with them. They come at a time of heightened tensions between Washington and Pyongyang. Pyongyang has expressed frustration at what it calls Washington's lack of flexibility in talks and warned that there were no longer grounds for it to be bound by a self-declared moratorium on intercontinental ballistic missile and nuclear weapons testing. US officials say North Korea must take more concrete steps to dismantle its nuclear weapons and ballistic missile programmes before sanctions are eased. On Monday, US Secretary of State Mike Pompeo said he was hopeful North Korea would make the right decision despite slow progress. "The sanctions that we have put in place on North Korea along with the rest of the world … have certainly caused Chairman Kim to think seriously about the right path forward for his people," he said, referring to North Korean leader Kim Jong-un. ^ top ^

North Korea says Kim Jong-un, Donald Trump bromance not enough to return to talks (SCMP)
2020-01-11
North Korea has received birthday greetings to its leader Kim Jong-un from US President Donald Trump, but their personal relationship is not enough for a return to talks, according to a statement published on Saturday by state news agency KCNA. The comments come against the backdrop of stalled denuclearisation talks following a flurry of diplomacy between the United States and North Korea in 2018 and early 2019. While Kim could personally like Trump, he would not lead his country on the basis of personal feelings, Kim Kye Gwan, an adviser to the North Korean foreign ministry, said in the statement. "Although Chairman Kim Jong-un has good personal feelings about President Trump, they are, in the true sense of the word, personal," he said. "We have been deceived by the United States, being caught in the dialogue with it for over one year and a half, and that was the lost time for us." North Korea will not discuss proposals such as those Trump made at his last summit with Kim Jong-un in Hanoi in February 2019, the foreign ministry adviser said. The North will not give up its nuclear facilities for partial sanctions relief, and will only return to talks when the United States makes concessions, he added. "The reopening of dialogue between the DPRK and the US may be possible only under the condition of the latter's absolute agreement on the issues raised by the former, but we know well that the US is neither ready nor able to do so," he said. The abbreviation DPRK refers to the North's official name, the Democratic People's Republic of Korea. Saturday's comments show how ties between leaders are sometimes only marginally useful for diplomacy, said Mason Richey, a professor at Hankuk University of Foreign Studies in Seoul. "At least one member of the US-North Korea diplomatic 'bromance' is mature enough to admit that personal feelings are just that," Richey added. "Kim Kye Gwan's statement doesn't close the door on diplomacy any more than it already was, but he underlined how the US and North Korea have fundamentally different strategic interests with almost no meaningful overlap." The North Korean adviser also cautioned South Korea to steer clear of ties between the North and the United States, saying it should not seek "to play a mediator role". On Friday, a South Korean official said Trump had asked the South Koreans to pass on birthday greetings to North Korea. For South Korea to meddle in personal relations between Kim and Trump was "presumptuous", the North Korean adviser said, adding that the North had already directly received from Trump a letter with the greetings. "But they seem not to know that there is a special liaison channel between the top leaders of the DPRK and the United States." South Korea's presidential Blue House declined to comment. The North's comments come after South Korean President Moon Jae-in's administration signalled it wanted to renew "independent" economic engagement with the North, Richey added. "This is another slap in the face, which Moon seems determined to accept ad infinitum." ^ top ^

 

Mongolia

Up to 50 percent of ballots can be recounted in 2020 Parliamentary elections (Montsame)
2020-01-16
Yesterday, January 15, General Election Commission (GEC) delivered a report on preparation works of the upcoming 2020 Parliamentary Elections. Head of the GEC Ts.Sodnomtseren said that the recent amendments to the Law on Parliamentary made corrections to any shortcomings and challenges encountered when organizing previous elections in the country and outlined more detailed regulations for controlled disbursements and transparency. He further said the law enables recount on up to 50 percent all ballots in the elections. The distribution of election constituencies will be finalized by the Parliament before February 1, Mr. Ts.Sodnomtseren says. The amendments to the Election Law enables the 2020 Parliamentary Election to be held with plurality-at-large voting system. Since the beginning of the year of elections until the end of polling day, organization of any public events aimed to win votes and distribute gifts (in kind or in cash) is prohibited according to the law. Fines of MNT 20 thousand to individuals and MNT 200 thousand will be imposed for any actions failing to comply this during this period. However, current members of parliament are allowed to meet with voters in person to present their report of work of their tenure. Moreover, officials of the Communications Regulatory Commission of Mongolia reported that the they are working with Facebook company to take necessary measures to prevent from spread of misinformation on the platform during the elections. It was reported that the GEC had submitted its proposal to parliament on scheduling the elections on June 24, 2020. ^ top ^

Free zones to be discussed (Montsame)
2020-01-14
Current state, future, and the development of Zamyn-Uud, Altanbulag, and Tsagaannuur free economic zones will be broadly discussed on January 16. At the 'Correlation between the economic corridor and free zones' investors' forum in Ulaanbaatar, Mongolia's policies on transport and logistics and the role and significance of free zones in that respect will be touched upon in addition to the main topic of free zones, reports the event's organizers- the Mongolian National Chamber of Commerce and Industry and Council of Investors to Free Trade Zones. Moreover, information on the three-country economic corridor will be given alongside a display of a scale model of the Zamyn-Uud free zone. The forum will be participated by scholars and experts from the Ministry of Road and Transport Development, Border Protection Agency, immigration Agency, customs authority, and the Asian Development Bank. ^ top ^

Shadow economy fluctuates at 9.2-15.7 percent of GDP (Montsame)
2020-01-14
The National Statistical Office of Mongolia released a report on research made on the informal economy of Mongolia between 2015 and 2018. The report shows that the share of shadow economy in the country's GDP has been fluctuating at around 9.2 – 15.7 percent in the last decade. As of 2018, the size of shadow economy was estimated at MNT 2.9 trillion, equaling to 9.8 percent of GDP. This share is made up of informal sector of 52.3 percent (such as unincorporated household enterprises), underground and artisanal mining of 42.3 percent, which totals MNT 1.2 trillion. In the last decade, the informal economy showed a double-fold increase, regardless of its decline by 18.2 percent compared to 2015. In particular, the size of illegal production grew by 5.3 times, including prostitution and sale of illegal drugs. The number of unincorporated household enterprises lowered by 27 percent during 2010-2015 and annual income of each household enterprise was around MNT 22.6 million, the report says. There are more than 57 thousand enterprises operating in sales and service and maintenance industries, constituting 48 percent of the informal economy and annual production for each employer equaled to MNT 11.6 million, which increased by 45.9 percent since 2013. Men make up 53.3 percent of employees of household enterprises and women are 46.7 percent. ^ 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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