The Sinocism China Newsletter For 12.07.12
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Duowei broke the news that Xi Jinping will visit Shenzhen on his first domestic inspection tour (多维独家：习近平访深圳重温邓南巡精神力挺改革). The South China Morning Post has the first report in English today:
Xi Jinping has decided Shenzhen will be the venue for his first inspection trip as the party’s new general secretary.
It is a move political observers say pays tribute to the famous southern tour of Deng Xiaoping in 1992 and sends a signal of commitment to deepening reform.
A Shenzhen propaganda official said Xi, who will succeed Hu Jintao as president in March, would follow in the footsteps of Deng’s tour to “express his determination to further deepen China’s reform”…
Former National People’s Congress deputy Ng Hong-man said Xi chose Shenzhen for his first tour to pay tribute to Deng and his reformist father Xi Zhongxun’s commitment to reform and opening up.
Deng gave Xi’s father the task of setting up experimental zones for economic reforms in 1979.
This is a big deal and a very strong signal that Xi is hitching himself to Deng Xiaoping’s legacy and style and is serious about reinvigorating reforms. The new leadership is clearly trying to shift perceptions and rebuild public confidence (Caijing):
“How about giving China, and its future, a little more confidence?” China’s national broadcasters CCTV asked in a prime-time program on late Wednesday.
The new leadership has set a target for the Chinese, the Chinese dream, only half month after top officials’ first public debut, and Wednesday’s “Eight Measures” have delivered “commitment to all the ordinary people” and “restrains to officials”, it contended, “With such a clear direction, measures… in such a short time…[we should be] more confident about China, and China’s future.”
The CCTV show was hosted by Bai Yansong. It is worth watching– 新闻1+1：对中国 再有点信心怎么样?
Reuters looks at Xi’s language and its nationalist implications in China’s new boss Xi hits nationalist note with talk of revival:
Diplomats and some analysts acknowledged that even if Xi’s recent rhetoric is aimed at a domestic audience, there is always potential risk in using nationalism as a political strategy – “particularly now, at this point in China’s history, when it’s more confident, and some of its neighbors are wary”, the Western diplomat said.
Analysts in Beijing believe Xi’s domestic political strategy is clear enough. “He’s using (these words) to move away from ideology,” added Chen Ziming, an independent scholar of politics in Beijing. “He knows that Communist slogans don’t really have much status anymore among Chinese people, so he thinks playing the ‘national rejuvenation’ card is a better way to go.”
Regular Sinocism readers know this blog has discussed this several times since Xi met the media on November 16. Xi Jinping is a reformer, but likely a hardline nationalist one.
I should probably add a corruption section to this newsletter. China has been rocked by five sex scandals in six days (Telegraph) and there are more every day, as noted in the Politics and Law section below. The Internet is playing a key role:
“The ability of the internet [to uncover scandals] is greater than ever before and the new government cares more about corruption and is acting very quickly,” said Mao Shoulong, a professor of Chinese politics at Renmin university.
On Thursday Luo Changping (Sina Weibo account), the deputy editor of Caijing Magazine, took to Sina Weibo to publicly accuse (Economic Observer) Liu Tienan (刘铁男), Director of the National Energy Administration and Deputy Director of the NDRC, of fudging his resume and engaging in corruption. Luo made the accusations while Liu was travelling in Russia, with Wang Qishan, the new anti-corruption czar.
Luo’s move is remarkable, and appears to be the first non-anonymous accusation on Weibo about a ministerial-level official. Luo’s three weibos about Liu Tienan are still available.
So is a real corruption crackdown underway, or is this mostly political score-settling and window-dressing? Clearly the propaganda authorities are allowing, and in fact may be encouraging, more reporting on corruption exposes. So far only one senior official–Li Chuncheng–has been detained while several expendable, local peons have also gotten into trouble. My guess is that the crackdown is more real and will last longer than most assume but will not address the structural sources of graft. Significant political reform and and a free press are needed, and those steps seem unlikely.
Your support is still welcome…
Today’s links:
BUSINESS AND ECONOMY
China’s Xi underscores economic growth, market-oriented reforms – Xinhua | English.news.cn- China must maintain economic growth and persevere with market-oriented reforms in the face of multiple risks in the economy, the new helmsman of China’s ruling party has said.The government should continue its proactive fiscal and prudent monetary policies next year and improve the economy’s internal vigor and dynamic, said Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, at a symposium held with non-Party figures here last week.”The growth that we achieve must be tangible, not exaggerated growth, and should be efficient, of good quality and sustainable,” Xi said.
China may lower 2013 economic growth target |Economy |chinadaily.com.cn- China is likely to set a lower economic growth target for 2013 to achieve a smooth change in its growth pattern and minimize future risks amid uncertainties in global economy, according to a newspaper column by a senior economist published on Wednesday.The Chinese government will make self-motivated efforts to slow down the rapidly expanding economy in the coming year, wrote Yi Xianrong, a finance researcher with government think tank the Chinese Academy of Social Sciences, in Shanghai Securities News.
China to stick with 7.5 percent economic growth target in 2013 Reuters–Policymakers believe keeping the 7.5 percent target in 2013 will help balance the need to keep growth humming with the need for economic wiggle room to deepen reforms, said government economists involved in the discussions about the plans. The government also intends to maintain a 4 percent inflation target and 14 percent limit on M2 money supply, the sources said. They declined to be identified because of the sensitivity of the issue.
China “Big Four” Lend Cautiously in Nov; New Loans at CNY168Bln-Caijing - New loans extended by the four biggest banks in China were 168 billion yuan in November, down from the previous month’s 220 billion
Sorting Out a Chinese Puzzle in Auditing – NYTimes.com- The volume of new Chinese frauds seems to have declined, and there are few new listings of such companies — either because American investors have grown wary or because Chinese companies don’t want to deal with regulators who think investor protection is important.One can only imagine the conversations of Chinese corporate officials as they discuss just how gullible the Americans turned out to be.
China State-Driven Rebound at Risk as Small Firms Suffer – Bloomberg - China’s rebound from a seven-quarter slowdown is being driven by state-funded transport projects, boosting the shares of railcar makers such as China CNR Corp. even as the benchmark stock index dropped. The focus on infrastructure and the lack of a more widespread pickup may threaten the sustainability of the economic recovery.
A Wealth Management Product Fails in China. So Who Pays? -Caixin - He originally planned to buy another wealth product with an expected annual interest rate of 5.8 percent, he said. ”I had filled out the purchase form for that product,” he said. “The bank’s lobby manager saw I was about to invest 1.1 million yuan and told me, ‘Why don’t you go inside (to the VIP room)? We have a better product with a 12 percent annual interest. It’s 100 percent risk free. All you need to do is pick up your money when the time comes.’” Without even reading the contract, the man said, he signed up to buy a piece of a plan called Zhongding Wealth Investment Center. The factory owner’s portion was to mature in January//don’t underestimate the greed..investors do bear some responsbility
Fear and Loathing in China’s Banking System – China Real Time Report – WSJ - Initially, Beijing-based Huaxia Bank said it had never approved the product, but in a meeting with about a dozen investors on Monday night, Huaxia officials said there was “some management oversight” of the product and said the bank will offer a “reasonable solution,” according to a person with direct knowledge of the bank.
China’s Shadow Banking Revisited: Size, Implications, Risks, and Reforms-Caijing - We estimate that the shadow banking system has a size of around RMB15-17trn, about 12-13% of the formal banking assets, and one third of China’s GDP.
Japanese Dealerships in China Retrench in Wake of Dispute – Bloomberg - More distributors than ever are considering quitting Japanese car brands, even as showroom traffic and orders begin to rebound, according to the China Automobile Dealers Association. Failing to sign up enough new dealers will hurt Japanese automakers, benefiting General Motors Co. (GM), Volkswagen AG (VOW) and Hyundai Motor Co. (005380) as they compete to expand in smaller Chinese cities where the bulk of future demand lies.
China to flatten 700 mountains for new metropolis in the desert | World news | guardian.co.uk- In what is being billed as the largest “mountain-moving project” in Chinese history, oneof China’s biggest construction firms will spend £2.2bn to flatten 700 mountains levelling the area Lanzhou, allowing developers to build a new metropolis on the outskirts of the north-western city.The Lanzhou New Area, 500 square miles (130,000 hectares) of land 50 miles from the city, which is the provincial capital of arid Gansu province, could increase the region’s gross domestic product to £27bn by 2030, according to the state-run China Daily. It has already attracted almost £7bn of corporate investment.
Luxury housing sales rise in Beijing – Xinhua | English.news.cn- Sales of upscale housing in Beijing reversed a previous downward trend to record a sharp increase in November, driven by appetite from foreign buyers and relatively cheap loans, local real estate consulting agencies have said.Luxury housing, mainly villas priced about 50,000 yuan (7,948 U.S. dollars) per square meter, saw hefty sales of 412 units in November, up 52 percent year on year and 84.8 percent month on month, according to Beijing-based Yahao Real Estate.
一位北京青年白领讲述自己的买房故事：想当“房奴”也不易–
收入分配改革方案月内出台 专家称工薪收入不应收税_国内财经_新浪财经_新浪网 - ND
聚焦2012中央经济工作会议 - First Financial’s new microsite on the upcoming 2012 central economic work conference..
专访李铁 破解城镇化征地矛盾：平衡农民与市民利益_思想频道_一财网 -
一号文件或聚焦农业经营体制 新华社——经济参考网 - speculation that 2013 Central Government’s #1 Document will be about rural issues// 明年的经济政策令人关注，
城镇化将再次激发中国经济发展的巨大潜力 新华社——经济参考网 - 有序推进农业转移人口市民化、扩大内需消费投资双管齐下、
Rolls-Royce could face prosecution in bribery probe | Reuters - Aerospace and defense group Rolls-Royce may face prosecution after Britain’s Serious Fraud Office (SFO) ordered it to hand over details of possible bribery and corruption in China and elsewhere, the company said on Thursday.
POLITICS AND LAW
AP Exclusive: Detained China Nobel wife speaks out – Yahoo! News - all the talk of rule of law and respect for the Constitution empty while her illegal detention continues// Breathless from disbelief at receiving unexpected visitors into her home and with a shaking voice, Liu spoke in her first interview in 26 months — a brief conversation with journalists from The Associated Press who managed to visit her apartment while the guards who watch it apparently stepped out for lunch.
Commentary: Law-abiding ruling party key to rule of law in China – Xinhua | English.news.cn- BEIJING, Dec. 6 (Xinhua) — A recent speech from the new helmsman of the Communist Party of China (CPC) notably urged Party members not to cross the lines set by the Constitution and laws.Xi Jinping, newly-elected general secretary of the CPC Central Committee, said the CPC should not only lead the people in adopting the Constitution and laws but also set an example by abiding by them. The speech was made on the occasion marking the 30th anniversary of the implementation of the country’s current version of the Constitution, a time of great historical significance.
Top Policy Experts Urge Legal Reforms – Caixin - The remarks were made at a November 30 forum hosted by the monthly magazine China Reform and Hu Yaobang Historical Materials, an online education portal. The session, titled Rule of Law and the Chongqing Lesson, included 30 experts and historians. China Reform is a sister publication of Caixin.
Report on propaganda chief Liu Qibao released | South China Morning Post- Xinhua reported last night that Liu had made visits to the office of foreign propaganda, which is more commonly known as the Information Office of the State Council, and the cultural ministry, recently. The report did not specify when the visits were made, but its release last night was apparently aimed at dismissing rumours about him.Meanwhile, another figure under close scrutiny by overseas media in recent days, Gu Liping, wife of the United Front minister Ling Jihua, also appeared in public recently. The website of Youth Business China carried a photo of Gu with her colleagues on Wednesday, saying she is leading the team to make plans for the non-governmental organisation for next year.
中石化干部“艳照门”调查_视听频道_财新网 - Sinope
曝人大代表澳门豪赌输七千万 回应称是购物度假_新闻_腾讯网 - local official in Shenzhen accused in an Internet post of spending 70m rmb gambling in Macau..investigation underway//
知情人称北京交管局长之子可能涉嫌倒卖车牌_网易新闻中心 -
消息称郎酒掌门人被带走调查 当事人否认-财经网 - 有传闻称川酒巨头郎酒掌门人汪俊林已被带走调查，
人民日报的微博 新浪微博-随时随地分享身边的新鲜事儿 -
男子自述为官员拆窃听器经历：一周拆出四十多个_网易新闻中心
十八大后西方对习近平“谋静而后动”_多维新闻网 - 【多维新闻】中共十八大后，
访民离京疑遭黑保安殴打 信访干部证实有人随行_网易新闻中心 - 核心提示：12月6日，安徽颍上县迪沟镇村民爆料称，
From 10.26–A concerned dragon: China’s fresh overture to Tibetans – Analysis – DNA would be interesting and possibly encouraging if true// Xiao Wunan, a senior CCP cadre and executive vicepresident of APECF visitedIndia and was received in Dharamsala on August 16 by the Dalai Lama, Lobsang Sangay, then ‘Kalon Tripa’ (prime minister) of the Central Tibetan Administration (CTA) and Ugyen Thinley Dorjee, who is formally approved by the Dalai Lama and Beijing as the XVIIth Gyalwa Karmapa, or head of the Karma Kargyu sect. Xiao Wunan was accompanied byGong Tingyu, a Deputy Secretary General of APECF and Simon Kei Shek Ming, reportedly a journalist of the Hong Kong magazine Yazhou Zhoukan. During his meeting with the Dalai Lama, Xiao Wunan probably carried a personal message from a senior Chinese leader, possibly Xi Jinping. He could have informed the Dalai Lama that he was welcome to spend his last days in Beijing provided he gave up ‘anti-China’ activities and expressed support for the Communist regime.
Scholars interpret “Chinese dream” after Xi’s speech – Xinhua | English.news.cn- “The Chinese dream is about solving China’s problems,” according to Zheng Bijian, former executive vice president of the Party School of the CPC Central Committee.The Chinese can neither afford to dream of consuming 25 barrels of oil per person each year like the Americans, nor they can pursue their dream of development by colonization, he said. ”Fundamentally, the Chinese dream is about using a peaceful, civilized way to realize national development and the modernization of a socialist country,” in Zheng’s view.
FOREIGN AND DEFENSE AFFAIRS
US has no right to frequently disturb the world – People’s Daily Online - The U.S. Republican and Democratic parties have not made any substantive progress in the first round of fiscal cliff talks, arousing worries that the country may fall off the fiscal cliff.
中国女兵实战演练视频集-新闻中心 - Video of china’s first female j-10 pilots
Asia Unbound » South China Sea: Going to Get Worse Before It (Might) Gets Better- Although there have been several brief cooling-off periods in the past two years, including some initiated by senior Chinese leaders traveling to Southeast Asia, they have not stuck, and the situation continues to deteriorate and get more dangerous.In the new year, it will likely get even worse. Here’s why:
China tells Vietnam to halt oil exploration in disputed waters | Reuters - China told Vietnam on Thursday to stop unilateral oil exploration in disputed areas of the South China Sea and not harass Chinese fishing boats, again raising tensions in a protracted maritime territorial dispute with its neighbor.Vietnam had already expelled Chinese fishing vessels from waters near China’s southern Hainan province, Chinese Foreign Ministry spokesman Hong Lei told a daily news briefing.Hong’s description of the confrontation last Friday was in contrast to the account by Vietnam, which said a Vietnamese ship had a seismic cable it was pulling cut by two Chinese fishing ships.
Battery maker that received stimulus money could be sold to Chinese company – The Washington Post A bankrupt battery manufacturer that was a cornerstone of President Obama’s effort to make the United States a global leader in clean-energy technology could end up in the hands of a Chinese company when it goes on the auction block Thursday. Congressional Republicans call the company, A123 Systems, which received $133 million in federal stimulus grants, a textbook case of how the Obama administration wasted taxpayer money trying to nurture new industries. Administration officials say the stimulus money was used to build a new manufacturing facility in Michigan that could remain open under new owners, even if they turn out to be foreign.
Mongolia finds China can be too close for comfort – Businessweek This story is part of “China’s Reach,” a project tracking China’s influence on its trading partners over three decades and exploring how that is changing business, politics and daily life.
Hackers Target Former Joint Chiefs Chairman Mullen – WSJ.com - One official said that evidence gathered by the FBI points to China as the origin of the hacking, and that it appeared the perpetrators were able to access a personal email account of Mr. Mullen. The official declined to be more specific.
HONG KONG AND TAIWAN
Hong Kong’s Leader Seeks to Ease Concerns About China – NYTimes.com - In a rare speech specifically addressing relations with Beijing, Mr. Leung said on Thursday that he hoped to improve relations by emphasizing better communications between Hong Kong and the mainland. “It is without doubt our most important bilateral relationship, and one we must treat with the utmost respect,” Mr. Leung said.
TECH AND MEDIA
微信“蚕食”飞信：中移动冀望移动互联网破局|互联网|
Apple to Resume U.S. Manufacturing – NYTimes.com - For the first time in years, Apple will manufacture computers in the United States, the chief executive of Apple, Timothy D. Cook, said in interviews with NBC and Bloomberg Businessweek.
Foxconn Plans American Expansion as Clients Seek Made in U.S.A. – Bloomberg - “We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there,” Louis Woo, a Foxconn spokesman, said in a phone interview. He declined to comment on individual clients or specific plans.
Apple’s ranking in China smartphone market falls to No.6: IDC | Reuters- Apple saw its third-quarter ranking by market share fall two notches from its position in the second quarter, IDC said. Its market share by shipments was under 10 percent in the third quarter, when China’s smartphone shipments hit a record high, at more than 60 million units, the research firm added.However, IDC analysts expect a rebound with the launch of the iPhone 5 in China in December. Apple last week received approval from regulators for the sale of the iPhone 5 in the country.
Baidu and Lenovo Announce New $150 LePhone Handset–TechInAsia - Baidu has teamed up with Lenovo to announce the new LePhone A586. Priced at 999 RMB ($158) when purchased through Lenovo’s official site, the handset looks set to compete with the many other internet-company-branded phones that have flooded into the market over the last six months. Sales of the phone will begin on December 12.
Chinese Studio Boss Yu Dong Calls For Censorship Reform – Hollywood Reporter SINGAPORE—Yu Dong, CEO and Founder of Bona Film Group, China’s largest private film company, called upon Chinese government regulators Wednesday to loosen censorship restrictions on the country’s domestic film industry. The remarks were part of an opening keynote speech Yu gave at ScreenSingapore’s new “Focus on China” panel discussion series.
In China, Tycoons’ Divorces Hurt Stocks – Businessweek Now divorce rumors are swirling around Robin Li, chief executive officer of Internet search giant Baidu (BIDU). Li and his wife own 20.8 percent of the stock. The gossip has no apparent basis in fact, but no matter. “People are worried about what the dissolution of their marriage might do to the ownership of Baidu and how this might negatively affect the stock, presumably because some believe the wife would flood the market with her shares to get liquidity,” wrote TheStreet.com’s (TST) Eric Jackson on Nov. 14, just after Baidu shares hit their lowest price since January 2011. A Baidu spokesperson said the company does not comment on Li’s private life. ..The most vivid case of a divorce torpedoing corporate ambitions concerns the video-sharing site Tudou, once a contender to become the YouTube (GOOG) of China.
SOCIETY, ART, SPORTS, CULTURE AND HISTORY
Left-behind American children in China | Offbeat China Among China’s vast troops of left-behind children, an even more special segment is left-behind foreign children. Their parents are oftentimes illegal immigrants to other countries (primarily the US) who work low-paid jobs on foreign lands. Below is a story done by Netease on the lives of about 10,000 such left-behind American children in Fuzhou, Fujian province, which is the home town of many early Chinese immigrants.
ENERGY, ENVIRONMENT AND HEALTH
China sacks three officials for GMO rice test: Xinhua | Reuters- The officials from the Chinese Center for Disease Control and Prevention and the Zhejiang Academy of Medical Sciences were sacked for violatingregulations, scientific ethics and academic integrity, Xinhua news agency said.The controversial test first came to light when environmental group Greenpeace said a U.S. Department of Agriculture-backed study used 24 Chinese children aged between six and eight to test genetically modified “golden rice”.
In China, HIV & HCV Transmission through Blood Continues | Seeing Red in China- Dr. Wang Shuping writes on World Aids Day. I’m please to translate, and publish, her piece here. — YaxueI am Wang Shuping, and, as a doctor and epidemics researcher, I was the one who first discovered Hepatitis C virus and HIV contamination in plasma collection stations mushroomed in China in the 1990s. Hundreds of thousands of innocent people became infected as a result. Twenty years have passed since those frightful discoveries, the current state of blood safety in China, to my dismay, still presents an alarming picture of continuing transmission of HIV and HCV through blood. On World AIDS Day today, I would like to call attention to the matter to raise the public’s awareness and warn the policy makers.
BOOKS AND LITERATURE
Chinese Nobel literature winner: censorship a must – News – Boston.com - He also suggested he won’t join an appeal calling for the release of the jailed 2010 Peace Prize laureate, Liu Xiaobo, a fellow writer and compatriot…Mo said he doesn’t feel that censorship should stand in the way of truth but that any defamation, or rumors, ‘‘should be censored.’’ ‘‘But I also hope that censorship, per se, should have the highest principle,’’ he said in comments translated by an interpreter from Chinese into English.
AmCham China–Podcast: The Banking Global Powerhouse You’ve Never Heard Of China Development Bank is not only financing China., Inc.’s overseas expansion, but it’s also doling out billions of dollars in loans to cement ties with China’s new allies in Africa and South America, according to a new book by Henry Sanderson and Michael Forsythe.
The Sinocism China Newsletter For 12.06.12
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The New York Times has a very interesting story of a Ferrari’s role in Chinese politics. In How Crash Cover-Up Altered China’s Succession Jonathan Ansfield writes about Ling Gu’s death by Ferrari and how his father’s actions weakened Hu Jintao:
By September, party insiders said, Mr. Hu was so strained by the Ling affair and the leadership negotiations that he seemed resigned to yielding power. As Mr. Hu’s influence faded, Mr. Xi began taking charge of military affairs, including a group coordinating China’s response to the escalating row with Japan over disputed islands.
Perhaps China should consider banning Ferraris, which are clearly tools of hostile foreign forces.
Overseas Chinese media are running with some crazy rumors about further problems for Ling Jihua. 明鏡新聞網: 明鏡獨家：令計劃涉謀殺竊國，政治風暴快到 and 明鏡新聞網
Reuters has dropped a bomb on Huawei. How foreign firms tried to sell spy gear to Iran is not going to help Huawei with its overseas lobbying efforts:
Documents seen by Reuters show that a partner of China’s Huawei Technologies Co Ltd offered to sell a Huawei-developed “Lawful Interception Solution” to MobinNet, Iran’s first nationwide wireless broadband provider, just as MobinNet was preparing to launch in 2010.
The system’s capabilities included “supporting the special requirements from security agencies to monitor in real time the communication traffic between subscribers,” according to a proposal by Huawei’s Chinese partner seen by Reuters.
Huawei also gave MobinNet a PowerPoint marketing presentation on a system that features “deep packet inspection” – a powerful and potentially intrusive technology that can read and analyze “packets” of data that travel across the Internet. Internet service providers use DPI to guard against cyber attacks and improve network efficiency, but it also can be used to block websites, track internet users and reconstruct email messages…
Although Huawei maintains it doesn’t sell any filtering technologies, its presentation given to MobinNet, marked confidential, repeatedly says its “DPI Solution” features “URL filtering,” which can be used to block specific websites. The presentation also cites a number of customer “success” case studies – including in Britain, Russia, Colombia, and China – where it says telecommunication operators were using its system to filter websites.
If this is true, expect some of Huawei’s foreign consultants to resign.
Congratulations to historian Stephen Platt for winning the prestigious Cundill Prize for his excellent book Autumn in the Heavenly Kingdom: China, the West, and the Epic Story of the Taiping Civil War Stephen R. Platt (Amazon).
Today’s links:
BUSINESS AND ECONOMY
Analysis: China diners say more than economy hurting Yum’s KFC | Reuters - good to see this, too many pundits/analysts jump of company specific news to support their broader macro-theses without actually understanding the company-specific issues// A slowdown in China’s economy is not the only strain on Kentucky Fried Chicken’s business in the country, where competition is getting tougher and customers are getting pickier.
SEC Details Friction with Chinese Counterpart Over Audits – China Real Time Report – WSJ no way SEC can compromise now// In court papers filed late Monday, the SEC said that since 2009 it had sent its Chinese counterpart, the China Securities Regulatory Commission, 21 separate requests for assistance in connection with 16 different investigations and hadn’t received any of the requested audit papers or any meaningful assistance. Additionally, the agency said that long-running negotiations with the CSRC to establish a framework for information sharing had gone nowhere.
China listings may soon flee U.S., expert says – Asia Stocks to Watch – MarketWatch- and may be a fee boon for the bankers, lawyers and accountants// Paul Gillis, a financial author and professor of accounting at Peking University, believes the window to prevent a worst-case scenario of wholescale delistings of Chinese firms in the U.S. is rapidly narrowing.He puts the odds of China companies having to pull up stakes from U.S. exchanges at 80%. In June he assigned a 20% probability of such an outcome, while seeing 70% odds that the “can is kicked down the road,” and U.S. and Chinese regulators find some way to defer the issue.
INTERVIEW: SEC probe will see more China firms list at home | Video | Reuters.com - Dec. 5 – Chinese firms may shun U.S. listings as regulators in Washington and Beijing bicker over the opening of books to U.S. audits, says China Accounting Blog author Paul Gillis.
Bankers See Fees Fade as China Era of Jumbo IPOs Draws to Close – Bloomberg - The lack of megadeals comes amid a pronounced slump for IPOs in Hong Kong of any size. The value of initial share sales has fallen to $6.6 billion so far in 2012 from $58 billion in 2010, putting the city on pace for its worst year since at least 2003, when companies raised $7.5 billion there, according to data compiled by Bloomberg.
China Developers Chase Wealthy Locals Abroad Amid Curbs at Home – Bloomberg - 2nd time bloomberg has mentioned the xinyuan deal in brooklyn without mention sam zell’s investment in xinyuan// Diversification would bring China’s developers closer in line with Asian peers.Among the 24 companies in Shanghai Stock Exchange Property Index (SHPROP), only Beijing-based China State Construction Engineering Corp. (601668) earns revenue outside of China, and even then it’s just 5.8 percent of total sales, according to data compiled by Bloomberg from company statements. All revenue from the rest came from China, according to their annual filings last year.
China Tackles Land Seizures – WSJ.com - little-noticed perhaps among western reporters..not little noticed in chinese news or social media..or sinocism// In a little-noticed move, a meeting of China’s State Council, the top government decision-making body, last week backed an amendment to the land-management law. Details remain sketchy, and the law is still to be approved by China’s National People’s Congress. But experts say that the change will make it more difficult for local officials to requisition land, and raise the level of compensation farmers receive when land is taken in the public interest.
明年政策取向继续“宽财政稳货币” 新华社——经济参考网 - 货币政策倾向中性，M2增速13%至14%；财政政策略为积极，
人民日报-政策要向实体经济倾斜（经济聚焦·十八大热词·
兰州最后一宗体育用地消失之谜|兰州|体育用地|消失_
Fulfilling the Pension Promise – Caixin Editorial - With China now enjoying the last of its demographic dividend, there is no time to lose. The priority is to clear the legacy debt. The moves now to promote urbanization and speed up labor mobility are only an attempt to remedy the defects of the system, rather than a fundamental overhaul. In the long run, it must address the problem of unfair access and simplify the fragmented, complicated system. Building an effective social security system is a challenge for governments around the world, and none can claim that theirs is perfect. While European countries struggle with their perhaps overly generous welfare systems, Asian economies in general are lacking in social welfare. While an economy in transition like China’s would need to beware of the welfare trap, for now, the country must accelerate the pace of its social security reform – in an affordable and sustainable way – so it can honor the commitments the government has promised its people.
Husband of sacked Hua Xia Bank employee says wife a scapegoat: report | Reuters- The man, identified only by his surname Xu, has hired lawyers to defend his wife, who has been arrested and is in police custody, the news portal reported.”As a customer manager, Tingting (his wife) had no authority to transfer money over the counter or examine product risks,” the husband told Netease. ”The products had been on sale for half a year, and now the bank is pushing the responsibility on her. Why is the bank sacking her now, when the products failed, rather than six months ago?”
China’s Dream Team -Caixin-Stephen Roach - Roach well-liked here// As is the case in any country’s leadership transition, no one knows for certain whether the incoming administration is up to the multiplicity of challenges they face. Since the days of Deng, China has had an uncanny ability to rise to the occasion and meet its challenges head on. The new generation of leaders has the right skills and experience for the task. Western biases notwithstanding, we will know soon enough if they can translate strategy into action.
社科院预测明年经济增速8.2% 新华社——经济参考网 - 中国社科院经济学部2012年12月5日发布《经济蓝皮书：
How Cities Can Save China – NYTimes.com–Henry M. Paulson Jr. - Global prosperity depends on China’s continuing to be an engine of growth. We all need China to reinvent its economic model. Working together on urbanization creates progress toward joint solutions to the challenges the world faces from overwhelming pressure on natural ecosystems, resources and commodities. We need Chinese cities to succeed, and we can help ensure that they do so.
Chinese Stock Accounts Empty Before Rally on ‘Capitulation’ – Bloomberg - Chinese stock investors emptied trading accounts at the fastest pace in 16 months last week, three days before the benchmark Shanghai Composite Index (SHCOMP) rallied the most in three months.The number of Chinese stock accounts containing funds dropped by 205,000 to 55.6 million, the largest decline since the week ended July 8, 2011, according to regulatory data compiled by Bloomberg. The number of funded accounts slid to the lowest level since the week through Nov. 26, 2010, after reaching a high of 57.28 million in June 2011. About 112 million accounts are empty or frozen, the data show.
POLITICS AND LAW
Commentary: CPC leadership wages war against formalism, bureaucracy – Xinhua | English.news.cn- Deng and Hu Jintao also launched campaigns against this…//These conducts showed the top CPC leaders’ resolve to root out the chronic and lingering problems of formalism and bureaucracy, which have been hampering flesh-and-blood bonds between the Party and the people.Formalism and bureaucracy cannot be gotten rid of within a short time. The new requirements are good as they will help leaders turn rhetoric of into practice. But they will only have their full intended effect if fully implemented.
习李举刀清党 第五代欲达邓胡未竟之志_多维新闻网 - 此外，有分析进一步指出，实际上在1989年“六四”之后，
Under-Secretary Cadre in Sichuan Province Investigated-Caijing Li Chuncheng, Deputy Secretary of CPC Sichuan Provincial Committee, has been investigated by the Party’s Central Commission for Discipline Inspection, Caijing learned from various sources. Li is believed to be the first cadre at the deputy-provincial level to be investigated after November’s 18th Party National Congress, at which he was elected as an alternate member of the party’s central committee.
中纪委：四川省委副书记李春城严重违纪被查_网易新闻中心 -
实德卖地救急 转让北京亦庄三幅地块至万泽集团旗下 _财经频道_一财网 - Dalian? Shide being dismembered..how long a sentence will Xu Ming will get? //从出售足球俱乐部到变卖土地，
内地反腐进入新阶段_资讯频道_凤凰网 - ifeng.con has a special microsite now for the growing corruption crackdown..maybe this is just score-settling politics, but i would not be so sure of that yet…
中纪委座谈会专家:反腐不能仅靠二奶翻脸等事件|十八大|反腐|
网曝新疆一公安局长包养“双胞胎姐妹” 纪委调查_资讯频道_凤凰网 - Internet post claims wusu, xinjiang police chief is keping twins as mistresses…oh man, evil, hits close to home…note the increasing tempo of internet “exposes” of mistress-related corruption…
Cutting Off Corruption – China Media Project sort of safe for work cartoon…
Former village head has 4 wives and 10 children — Shanghai Daily | 上海日报 — English Window to China New- A FORMER legislator currently under investigation in the northern Chinese city of Taiyuan has been revealed as having four wives and 10 children.Details of Li Junwen’s personal life were widely known in the area but the district authority turned a blind eye to villagers’ complaints and just said: “That is his ability,” yesterday’s Legal Weekly reported.
邓聿文：从雷政富案看县委书记的权力-财经网 - Deng Yuwen on how the Lei Zhengfu case shows the excessive power of county secretaries, shows need for faster reform of local county government//
The five levels of expression in China – China Media Project - The following article, shared through Sina Weibo as a text image this week, shares a recent talk given by Wu Si (吴思), a former China Media Project fellow and the editor-in-chief of the liberal journal Yanhuang Chunqiu. In his talk, Wu Si described freedom of expression in China as a building with five levels — starting at the Constitutional ground level and moving up to the odd and unpredictable space of the internet and social media…Therefore, in Wu Si’s view, the way space for expression in China is structured is quite complex. Freedom of expression is not “total,” but nor is it “nonexistent.” It can be found on all five levels.
Exclusive: How a Chinese prisoner release reveals business as usual at ‘black jail’ – CSMonitor.com - A Monitor investigation reveals that Tuesday’s announced freedom for 70,000 prisoners was really just a regular release of several hundred petitioners.
FOREIGN AND DEFENSE AFFAIRS
人民日报-习近平在会见第二炮兵第八次党代会代表时强调 深入学习贯彻党的十八大精神 建设强大的信息化战略导弹部队 范长龙许其亮参加会见 -
Xi calls for powerful missile force |Politics |chinadaily.com.cn -
习近平称中国决不称霸 对外开放国策不动摇|习近平|中国称霸|对外开放_新浪新闻 -
China’s Xi pledges peace, opening-up in first meeting with foreigners – Xinhua | English.news.cn- China’s development will never be a challenge or a threat to any other country or the world at large, Xi said.”China will never seek hegemony or expansionism,” said Xi, who is also chairman of the CPC Central Military Commission. The more China develops, the more it is conducive to peace and development of the world, he added.
CPC delegation leaves for U.S. visit – Xinhua | English.news.cn - will speaker Boehner get his picture taken with these folks?// The delegation, led by Wang Jiarui, head of the International Department of the CPC Central Committee, is due to hold the fifth high-level dialogue with the U.S. Democratic and Republican parties during the U.S. tour.
Why US meddles in Diaoyu Islands issue? – People’s Daily Online - Seen from the U.S. traditional strategy, the disputes between China and Japan in Asia Pacific serve interests of the United States. And the easiest way of intensifying China-Japan tensions is to incite Japanese right-wingers to stir up troubles on the surface. This U.S. move will undoubtedly increase the Japanese right-wing forces’ chance to win the election.
Washington shies away from commitments|Asia-Pacific|
China’s J-15 fighter superior to Russian Su-33 – People’s Daily Online- Foreign media especially Russian media guessed that the J-15 is a copy of Russian Su-33 carrier-borne fighter jet because its appearance is similar to Su-33. In this regard, spokesman of the Ministry of National Defense of China Geng Yansheng said on Nov. 29, “The world military affairs have an objective law of development. Many weapons have the same design principle and some command and protection methods are also similar. Therefore, it at least is non-professional to conclude that China copied the aircraft carrier technology of other countries only by simply comparison.”First, J-15 has an avionics more advanced than Su-33. Su-33 is equipped with old-fashioned ARINC429 discrete avionics system of one-way low-speed data bus, while J-15 adopts joint avionics system of bidirectional data bus.
Pictures–Destroyer flotilla in confrontation assessment – People’s Daily Online - Recently, a destroyer flotilla under the North China Sea Fleet of the Navy of the Chinese People’s Liberation Army (PLA) organized its ship formation to conduct actual-combat confrontation assessment in the waters of the Yellow Sea, so as to examine emergency-handling capability of its officers and men under actual-combat conditions
Inside the Ring: Asia pivot questioned – Washington Times- The Senate version of the fiscal 2013 defense authorization bill contains language that would require the Pentagon to highlight China’s growing cyberwarfare and strategic nuclear capabilities.A section of the legislation calls for adding language to the annual report on Chinese military power on “China’s asymmetric capabilities, including efforts to develop and deploy cyberwarfare and electronic warfare capabilities, and associated activities originating or suspected of originating from China.”
Navy chief was fed words by media: NSA – The Times of India- National security advisor Shiv Shankar Menon implied India is uneasy about publicly committing itself about a naval role in the South China Sea because it might hurt Chinese sensibilities.Menon said Admiral Joshi was misled by reporters into saying that Indian naval ships would, if necessary, sail into South China Sea, the scene of dispute between China, Vietnam and Philippines.
Recounting First Visit to China, Orville Schell Evokes a World of Difference | Asia Society - In 1975 the author worked for a month at the Dazhai model agricultural work brigade in Shanxi province. Here he helps prepare the fields for maize, peanuts and fruit
What’s at Stake at WCIT? | NewAmerica.net - This policy brief spotlights seven of the most controversial issues at stake when governments meet at the WCIT to negotiate a revised text of the International Telecommunication Regulations treaty and in the future. They range from the ITU’s role in Internet governance and cyber-security, to Internet traffic routing, to human rights and transparency. The paper argues that the ITU’s role has been limited and should continue to be as part of the broader multi-stakeholder process.
HONG KONG AND TAIWAN
China will step up pressure on Taiwan for political talks: MAC – CNA ENGLISH NEWS - He said that judging from what was said at the 18th National Congress of the Communist Party of China and views from all sides, “the mainland will step up pressure on Taiwan for political talks,”
TECH AND MEDIA
Facebook Backer Alisher Usmanov Now Focused on China – Bloomberg The billionaire is particularly interested in e-commerce in China, Streshinskiy said. Alibaba Group, the country’s largest e-commerce company, was valued at $40 billion in September, when an investment group led by China Investment Corp. paid $2 billion to acquire a 5.6 percent stake, a person familiar with the matter said at the time.
工信部酝酿民资进入电信业新政 新华社——经济参考网 - 租用网络和设备费用有望直降
SOCIETY, ART, SPORTS, CULTURE AND HISTORY
多地曝孩子落户母亲须先上节育环 律师呼吁松绑_新闻_腾讯网 - 本报讯 （记者李秋萌）
Video: Education, Education | Watch Why Poverty? Online | PBS Video - In China, education is considered the only way out of poverty. But as the nation’s higher education system has largely been privatized by for-profit companies, the future for millions of students is bleak. College is less accessible to Chinese youth than ever before, and without it, they are often shut out of well-paid employment opportunities. What will it mean for coming generations and the future
ENERGY, ENVIRONMENT AND HEALTH
Mega-Dairies Riding a Herd Instinct Industry - - Heavyweight investors such as the U.S. private equity firm Kohlberg Kravis Roberts Co. LP (KKR) and China’s Citic Industrial Capital helped lay a financial foundation for the agribusiness boom. Government subsidies and retail investor enthusiasm for Chinese dairy company shares on exchanges at home and abroad also helped prime the sector’s pumps. And overseas suppliers from forage growers in California to cattle breeders in South Africa have been happy to accommodate China’s new dairies. China’s dairy farm industry has hit a few bumps on the road to success, for example in the area of environmental protection. Some experts have warned about the potential for cattle disease spreading from vast, crowded milking parlors. And for some companies, financial support is cooling.
Environmentalist Liu Futang fined for exposing Hainan pollution scandals | South China Morning Post - Liu, 65, was sentenced to three years in prison, but given a full reprieve, and fined 17,000 yuan (HK$21,000). He is thought to have struck a plea deal to avoid imprisonment.
After Another Cruel Spate of Poaching in China, Netizens Ask When It Will Stop | Tea Leaf Nation - The poaching and trading of wild animals has again attracted the attention of China’s Internet users after a video called “Shocking Killings” aired on a popular Chinese television program, Focal Interview (焦点访谈), on China Central Television (CCTV). The video was secretly recorded by a journalist in Zixi County, a small mountainous area in Jiangxi Province. The county advertises itself as a “Jade in China” and a “Human Oasis” based on its ecological environment index and the fact that 87% of its surface is covered by forest. But the reality is far darker for its animal residents, including wild macaques, geese, muntjacs and boars.
China demands timetable to $100 billion climate aid for developing world | Reuters- “The core issue is finance,” Xie Zhenhua, head of China’s delegation, told a news conference of a main track of the November 26-December 7 talks among 200 nations in Doha, Qatar, that is a big block to a modest deal to keep U.N. climate efforts on track.He said a deal on finance would “create very good conditions for the settlement of other issues” in Doha, which is also seeking a symbolic extension of the U.N.’s Kyoto Protocol for curbing greenhouse gas emissions by rich nations beyond 2012.
China pledges $56 billion to cut air pollution | Reuters - local governments will fund with what money?// China will spend 350 billion yuan ($56 billion) by 2015 to curb air pollution in major cities, the environmental watchdog said on Wednesday. Local governments will fund most of the programs aimed at cutting the level of harmful particles in the air in 117 cities by at least 5 percent between 2011 and 2015, the Ministry of Environmental Protection said in a statement on its website.
The Sinocism China Newsletter For 12.05.12
Spread the word by forwarding this email to your friends, follow me on Twitter @Niubi or Sina Weibo @Billbishop, support Sinocism.
This week’s column for Dealbook is up, a day later than normal even though I wrote it Monday. From Bubble to Muddling Through? looks at the latest economic data as well as moves against corruption:
Last week’s column also discussed the continuing signs of an impending crackdown on corruption. Investors who like the recent Chinese data may still want to be wary of any stocks that have exposure to China’s corruption economy, and specifically ones that rely on business from mistresses. Two weeks ago a sex tape scandal brought down a mid-level Chongqing official named Lei Zhengfu and last week Shan Zengde, an official in Shandong province, was detained after his written promise to his mistress to divorce his wife leaked online. One of Shan’s colleagues co-signed the pledge as a witness.
Those who believe that China’s technocrats have the knowledge and ability to muddle through this downturn and successfully guide a sustainable economic recovery should hope that the officials in Beijing are a lot smarter than the lascivious officials in the provinces who keep making the news.
I submitted the column before seeing Christina Larson’s The Mistress-Industrial Complex in Foreign Policy:
Li sees a connection between China’s modern concubine culture and its runaway graft: the “emperor psychology” of the unrestrained: “Absolute power corrupts absolutely. When officials have absolute power, they become bold to ignore the law and social norms and do everything they like.” This ultimately hurts the party: “It’s misleading to think that keeping a mistress is not a big problem — that it won’t affect the official’s main work, records, and achievements. Temptation brings temptation.”
Mistress problems continue in Chongqing, where official Wu Hong is the latest to become embroiled in sex scandal (South China Morning Post):
Authorities in the municipality’s Peiling district issued a brief statement on their official microblog account yesterday morning saying an investigation would be conducted into Wu Hong, who works for the district’s Urban Administrative and Law Enforcement Bureau, after pictures appeared online on Sunday showing him with a half-naked young woman in a hotel room.
There are a lot more mistress messes to come.
The South China Morning Post is also reporting that Sichuan deputy party secretary Li Chuncheng is under investigation for corruption:
Sichuan’s deputy party secretary has become the first senior official to be targeted in an anti-corruption drive launched by the new leadership.
Li Chuncheng, 56, who was named an alternate member of the Communist Party’s Central Committee last month, has been placed under investigation for breaching party discipline.
Duowei says Li is a trusted lieutenant of Zhou Yongkang 传周永康爱将四川省委副书记被双规_
One place corrupt officials need to avoid is Macau. The Wall Street Journal reports that China appears to be taking the corruption crackdown to the casinos and junkets:
In recent weeks, police in mainland China and Macau have detained people from at least three of Macau’s biggest junket operators, the middlemen who extend credit to high-roller players and collect the debts in China, according to people familiar with the situation. Some of the detentions have occurred in China and in other cases, the detainees have been moved there, these people say.
Junket and casino customer lists would be very useful to Wang Qishan and his investigators.
The Times also reports on a Macau crackdown in Bo Xilai investigators examine link with casino money laundering (paywalled):
Investigators from mainland China are understood to have secretly rounded-up a group of six men with alleged links to a money laundering operation in the world’s most lucrative gambling enclave, The Times has learnt.
A source with close links to the Macau police said that the men were being interrogated about a corruption case involving “a former senior Chinese official
Investors are spooked, as they should be, and Macau casinos shares dropped on the report of junket arrests (Bloomberg).
Investors also did not like the news of the SEC suit against Chinese accounting firms, as Chinese stocks traded in the US fell sharply Tuesday (Bloomberg). Delisting is certainly not imminent or a certainty, but this is a new China risk and I believe many portfolio managers will decide it is not worth it to own these shares.
Does the Chinese government actually prefer an outcome in which these firms have to delist and return to Shanghai or HK to relist?
Yesterday’s newsletter incorrectly linked to a 2011 cable cutting incident in the South China Sea. The PetroVietnam CEO now says Chinese ships cut cables ‘by accident’ (Bloomberg) but Vietnam is stepping up sea patrols (Reuters). Vietnam’s announcement, along with the statement by India’s naval chief that the Indian navy is prepared to deploy to South China Sea to protect oil interests (Reuters) dominate the front page of today’s 参考消息.
And just because “let them eat cake” seems appropriate these days, check out this politically correct Diaoyu Islands birthday cake I had for a birthday dinner with some of my Beijing friends last night. No one ate the flag.
Your support for Sinocism is still welcome.
Today’s links:
BUSINESS AND ECONOMY
政治局会议传递经济政策六大信号 新华社——经济参考网 - 6 signals about economic policy from yesterday’s Politburo meeting
政治局定调明年经济工作：加强房地产调控|京基工作|楼市调控|
China Detains Some Involved in Illicit Sale of Wealth Management Products at Huaxia Bank-Caijing - In addition to the ex-employee, whom Huaxia bank has blamed for selling the wealth management products without permission and who was sacked later by the bank, authorities detained several others including the legal representative of Tongshang Guoyin Asset Management Company, manager of Zhongding, who issued the products.
China’s Huaxia may face liability for troubled wealth product sale | Reuters - “Currently, investors think Huaxia Bank must take the responsibility and no matter what we argue, they won’t listen to us. So we must let the police and judiciary decide the different responsibilities of all parties involved in this case,” Huaxia’s Shanghai division spokesman told Reuters.
华夏银行理财产品事件-财经网 - Caijing microsite on the Huaxia bank WMP scandal
万科11月销售再创年内新高 - record November sales for real estate developer Vanke, which is buying a lot more land for new projects// 不仅如此，
龙头房企业绩飘红透露出什么信号-中国金融新闻网 - 长远来看，人多地少、房少，仍是我国基本国情，
MNCs in China and PCAOB deregistration | China Accounting Blog | Paul Gillis - for MNCs, no reason to panic, but the future might be painful.
Chinese firms’ push into global market |Economy |chinadaily.com.cn- For instance, efforts will be made to improve the investment safeguards offered to Chinese companies by neighboring countries, while at home, there will be a fine-tuning of the legal and approval requirements needing to be met by firms looking to invest abroad. The government also plans to fund a network of public information organizations abroad, and establish investment agencies and associations at home, which could offer business advice to companies looking to invest internationally. They will be available to guide companies in the often-complex legal and regulatory conditions of key markets around the world, as well as working to promote the image of the country globally.
The Shift from East to West: Chinese Investment in North America - Our latest Infographic takes a closer look at China’s investment abroad, and where they really rank in the North American market. And you might be surprised by the findings…
China Emerging Globally: ENN $5 Billion Eco-City Case Study on December 11th « e8 Resources - On Tuesday, December 11th, E8 Resources and Emerging China are happy to have John Zhang Wenfu, Executive Director for Advanced Technology of CH2MHILL, speak about the importance and progress of Chinese companies’ emergence globally. The event will be held at glo London (Shanghai) from 7:00 p.m. to 9:00 p.m.
China Economic Watch | The Return of the RMB - Many of the very negative market expectations surrounding China’s economic slowdown may be changing. The change is now being reflected in foreign currency deposits and more broadly RMB appreciation expectations. It is still too early to tell if the trend has fully reversed itself with corporations continuing to increase foreign exchange deposits on October. However, if deposit growth falls in November and December this would suggest that expectations surrounding RMB appreciation are more entrenched, and thus reverting back to the trend of the past two years.
Invest in China…..Or Just Its Government – Dragonfly Capital | Dragonfly Capital - But what does ‘Invest in China’ really mean? Buying the FXI is not really buying the Chinese market. The ETF actually has a 57% weighting to Financial Stocks and its Top 10 Holdings, accounting for 61% of its total assets, include 5 banks, 4 energy companies and China Mobile. Looked at another way, this ETF contains the top 25 companies in China. Buying the FXI is not investing in China, it is investing in large cap state controlled entities in China.
Can U.S. and China Avert Accounting Armageddon? « Patrick Chovanec - the aviation success model is from a different era, when the Chinese side actually thought the US was more successful and could teach them things..unlikely to work this time, nor should the US be this patient or diplomatic on a a very black and white issue. China insists, reasonably, that foreign firms in China obey Chinese laws and regulations. The same standard needs to apply to Chinese firms who want the privilege of accessing the US capital markets. // The U.S. has to make a forceful, compelling argument that adopting international norms of openness and cooperation on securities fraud investigations will help China achieve its ambitions — but that until then, it’s “no fly” for unsafe stocks on U.S. markets.
地方政府应对融资难问题调查|地方政府|融资|高利息_
China’s Stocks Drop to Lowest Since 2009, Led by Liquor Shares – Bloomberg - liquid corruption plays…if corruption crackdown coming these guys will see business hit..and new rules for official entertaining will hit hard if followed//
A primer on Chinese shadow banking | | MacroBusiness - ANZ has a note out with a quite useful description of Chinese shadow banking.
POLITICS AND LAW
人民日报-审议关于改进工作作风、密切联系群众的 有关规定 分析研究二〇一三年经济工作 中共中央总书记习近平主持会议 -
人民日报-在首都各界纪念现行宪法公布施行３０周年大会上的讲话 （２０１２年１２月４日） -
Xi pledges to implement rule of law |Politics |chinadaily.com.cn- 空谈误国 as Xi knows, so…//Xi called on officials to respect and protect citizen’s rights, including human rights, and to reinforce public confidence in the law, as he delivered a speech marking the 30th anniversary of the current edition of the Constitution. He urged officials to work hard to let the people feel the sense of justice in every legal issue, and never allow unfair rulings to hurt people’s feelings.
Red Carpet Roll-Up: China’s New Do’s and Don’ts for Top Leaders – China Real Time Report – WSJ - The Communist Party’s powerful Politburo, in only its second meeting since a new group of leaders was chosen earlier this month, unveiled a lengthy list of “do’s and don’ts” for top leaders, saying the objective was to “genuinely win the confidence and support of the people.”
《人民日报》连发四论宣扬习近平“误国兴邦”论_多维新闻网 - 中国的复兴之路究竟有何深意？按照《人民日报》
全面新政蓄势待发 习李将烧“第三把火”_多维新闻网 - 报道援引专家的话说，
The nomenklatura: Vertical meets horizontal | The Economist - China’s power grid is a tangle of interlocking entities, overlapping vertical and horizontal lines of authority, and complex interplay between government, party and military bureaucracies. The arrangement borrows much from the Leninist model of the Soviets, who pioneered it for themselves and decades later helped adapt it to China.
Audio: Schieffer Series: China’s Leadership Transition and Looking Ahead at U.S. – China Relations | Center for Strategic and International Studies - This event was moderated by Bob Schieffer, Chief Washington Correspondent, CBS News. With panelists The Honorable Kurt Campbell, Assistant Secretary of State for East Asia and the Pacific; Richard McGregor, Washington Bureau Chief, Financial Times; Author, The Party: The Secret World of China’s Communist Rulers; and Christopher K. Johnson, Senior Adviser and Freeman Chair in China Studies, CSIS.
河南截访黑保安头目疑系信访部门邀请进京|黑保安|信访局|
Former TV host accuses legislator of assault, graft|Society|chinadaily.com.
山西一人大代表被指有4老婆 10个小孩均上户口_新闻_腾讯网 - local Shanxi official exposed for having 4 wives, 10 kids…
网曝河南贫困县1名村官圈地60亩建庄园别墅_网易新闻中心 -
兰州市长被曝戴价值20余万名表_网易新闻 - Netizen
No repeat of Chongqing: scholars – Globaltimes.cn- In order to prevent China from straying from its path of pursuing the rule of law, high-profile intellectuals and scholars called for a thorough reflection on the failed “Chongqing Model,” which was characterized by a gangster-style anti-crime campaign and revival of the Cultural Revolution’s ideology. Prominent figures such as Hu Deping, son of Hu Yaobang, late general secretary of the Communist Party of China and Li Zhuang, a former lawyer who claims to have been purged and framed by the Chongqing police during the municipality’s crackdown on crime, were among the 30 scholars and intellectuals attending a special roundtable held by the Beijing-based news magazine Caixin.
TECH AND MEDIA
Smartphone Makers Worried Over New China Requirements – China Real Time Report – WSJ - mandate that handset makers ensure preloaded apps and those made available through other means are in accordance with Chinese laws before the phones are licensed to be sold in China. To ensure the smartphones meet requirements, they say, new testing rounds would likely need to be put into place and companies would likely have to notify the Chinese government ahead of software updates.
Qihoo 360 Search Threatens Google Search More Than Baidu QIHU BIDU – Investors.com -
WeChat Bests Weibo in Monetizing Social Media-Caijing - WeChat resumed verifying “public accounts” Nov. 22 to attract verified accounts from Sina Weibo (Weibo), China’s Twitter, and Tencent Weibo. Industry insiders think the move boosts the opening-up and commercialization of WeChat and casts doubt on Weibo’s commercial future as a social media platform.
SOCIETY, ART, SPORTS, CULTURE AND HISTORY
1942年大饥荒的真实记录-财经网 - Caijing slideshow of pictures from 1943 famine
A Merry Band of Rights Pranksters – NYTimes.com - BEIJING — They call themselves the Volunteers — a growing band of young Chinese who stage playful, but pointed, public protests for greater rights for women.
Not a Piece of Cake: Uighur-Han Relationship in Focus on China’s Internet | Tea Leaf Nation - The most talked-about snack on China’s social media right now is qiegao (切糕), a dense, sweet cake made with corn flour, dried fruits and nuts
An unbelievably expensive piece of Xinjiang nut cake and what it tells about the ethnic policy in China. | Offbeat China - This one piece of RMB 160,000 Xinjian nut cake soon swept China’s microblog-sphere. Everybody was talking about, and making fun, of it. Weibot 北京厨子, a popular Weibo celebrity, did a calculation: “A piece of Xinjiang nut cake about 1.6 square meters in size cost RMB 160,000, which means about RMB 100,000 per square meter. Every 1 square meter of Xinjiang nut cake can buy about 3 square meters of apartment in Beijing.”
Qi Baishi painting sells for $11.4 million in Beijing – Yahoo! News Philippines - A painting by famed Chinese artist Qi Baishi fetched 72 million yuan ($11.4 million) Monday at China’s Poly art house’s autumn auction, a source at the event said. Bidding for the work “Ode to the Motherland” began at 40 million yuan for the 1954 work that depicts a red crown crane watching a giant red sun setting over the ocean, the auction attendee, who asked not to be identified, said.
ENERGY, ENVIRONMENT AND HEALTH
Hong Kong Smuggled Ivory Seizures Jump – China Real Time Report – WSJ - Hong Kong customs officials seized 4.6 tons of ivory in the first 10 months of 2012, up nearly 25% from a year earlier, a government spokesman said. This year’s tally got a boost from a massive seizure made in late October, in which smugglers tried to camouflage the tusks, which were shipped from Kenya and Tanzania, by hiding them amid plastic scraps and beans