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All posts by LKY - 2. page

Huangqiu Editorial: China Needs to Be Prepared If the Relationship between China and North Korea Gets Worse

On April 28, Huangqiu published an editorial article on the relationship between China and North Korea. Below is the translation of a few key points from the article.
1) The relationship between China and North Korea has gotten worse. Since King Jong Un became the top leader, there have been no meetings between the top leaders of the two countries. Even though a diplomatic exchange between the two remains open, little strategic trust is left and a serious communication barrier exists between the two.
2) As tension in the situation on Korean Peninsula is increasing, the relationship between China and North Korea could get worse. Pyongyang might openly criticize Beijing or make unfriendly moves. China should be prepared for this.
3) Some Chinese residents are concerned that, as the relationship between China and North Korea gets worse, China will lose its bargaining advantage with South Korea and the U. S. It will also miss the strategic shield in North East Asia. We should be aware that, at this moment, North Korea has a direct conflict of interest with China’s national strategic interest. In the long term, there is no doubt that China still has control over the relationship between these two countries. As long as North Korea gives up on nuclear weapons, these two countries can easily go back to the normal relationship that they had before. Beijing can encourage Pyongyang to loosen up on its attitude on nuclear weapons. However if Pyongyang keeps pushing the conflicts to the irrational edge, China has the ability to be in charge of the situation completely so as to protect China’s national security.
4) Frankly speaking, “double suspension” is the ultimate goal for China. China does not have much of a bargaining chip to pressure the U.S. and South Korea. We need to be very clear with the U.S. and South Korea that China is not the key party in resolving North Korea nuclear issues. China will not use the interest of the U.S. and South Korea to set its policy towards North Korea. The U.S. and South Korea should line up their thoughts close to ours rather than try to use theirs to overpower ours. Beijing wishes to find a common ground that benefits all party’s interests and advocacy. If this fails, the solution to the situation on the Korean Peninsula has to be put on table. China is not afraid of North Korea nor does it fear the U.S. and South Korea. We have enough power to fight back against any parties that will cross the red line of China’s national interest.

Source: Huanqiu, April 28, 2017
http://opinion.huanqiu.com/editorial/2017-04/10555354.html

Sing Tao Daily: Xi Stresses Placing the Party’s Control over the Financial Industry

According to an article that Sing Tao Daily published, the Politburo of the Central Committee recently held a conference and invited the Central Bank, the Banking Regulatory Commission, the Security Regulatory Commission, and the Insurance Regulatory Commission. During the meeting, Xi Jinping stressed that these agencies should place safeguarding financial security as their top priority. Xi stated that, even though the overall financial risk can be controlled, there must be measures in place to prevent risk from going beyond a certain point so that the agencies “never overlook any risk and never pass by any hidden gap.” Xi also initiated an effort to conduct a complete inspection and investigation in the financial and Internet banking industry. Moreover Xi stressed that it is vital to have the Party and the central administration placed in a position to lead the financial industry. According to the article, there is a need to improve the mechanism that allows the Party to take the lead and form a financial risk prevention system nationwide.

The article quoted the analysis which stated that there might be the possibility of forming a central financial committee like the ones that were formed in 1998 following the financial crisis in Asia. Wen Jiabao, then prime minister, headed that committee, which manages the operation of the financial agencies under the central administration. In 2003 the committee was dissolved and the workload was shared among the Banking Regulatory Commission, the Security Regulatory Commission and the Insurance Regulatory Commission. The article then quoted the words that the director of the China Academy of New Supply-Side Economics gave, “As we all know, the Party has leadership over everything in China. However, if the Party’s leadership is combined with financial security work, it is obvious that it carries certain meanings.”

Source: Sing Tao Daily, April 28, 2017
http://std.stheadline.com/daily/news-content.php?id=1589691&target=2

Caixin Article: Digging behind the Capital Empire of the Anbang Insurance Group

The Sina website recently carried an article on how the Anbang Insurance Group (a Chinese holding company whose subsidiaries deal mainly with insurance, banking, and financial services) grew from a company with registered capital of 500 million yuan (US$72 million) in 2004 to 61.9 billion yuan (US$8.97 billion) in 2017. The source of the article was Caixin’s 2017 17th edition. The article found that Anbang was under suspicion for faking the registered capital that it used for the insurance fund under its control. According to the article, Anbang has gone through seven major capital growth spurts since 2014. The analysis of its capital structure and stockholders indicates that behind its 37 stockholders, the company sits on a network of 101 companies and 86 stockholders and that all of them can be traced to the relatives of Wu Xiaohui, Chief Executive Officer of Anbang in Zhejiang Province. In the international market, Anbang has been aggressively acquiring insurance companies, banks, and real estate in Europe, the U.S., and Korea, including the Waldorf Hotel in New York City in 2014. However, starting in 2016 Anbang has faced major obstacles in its overseas acquisitions. It failed in the US$14 billion acquisition of the Starwood Hotel as well as the acquisition of Fidelity & Guaranty Life, due to its inability to meet the company’s stockholder disclosure requirements that the Department of NY Financial Services had set.

According to an article that Apple Daily published on February 3, 2015, Wu Xiaohui, Anbang’s CEO, was reported to be separated from his wife, who is the second daughter of Deng Xiaoping. The couple got married in 2004. It was Wu’s third marriage. It is believed that Wu used his relationship to start Anbang and that the separation was an indication that Deng’s family wants to cut its ties with the Anbang group.

Source:
Caixin, April 29, 2017
http://finance.caixin.com/2017-04-29/101084867.html/
Sina, April 29, 2017
http://www.sina.com.cn/midpage/mobile/index.d.html?docID=fyetwtf8994622&url=finance.sina.cn/insurance/hydt/2017-04-29/detail-ifyetwtf8994622.d.html
Apple Daily, February 3, 2015
http://hk.apple.nextmedia.com/international/art/20150203/19027111

RFA: Internal Document Lists Baby Names That Are Banned for Uyghurs

According to an article from Radio Free Asia (RFA), a list of baby names has been circulating on the internet which are claimed to have a “separatist” or “religious” flavor and which the officials from the Xinjiang Uyghur Autonomous Region have therefore banned. According to the article, the violators could risk not being able to register their new born babies. RFA called a local police station in Urumqi and confirmed that there is an internal regulation on what to name new born babies. The police agency told RFA that the trained personnel at the residence registration office have the authority to approve or disapprove a name. The rights group for the Uyghurs in Munich Germany expressed concern over the escalation of the persecution of the Uyghurs in China.

Source: Radio Free Asia, April 20, 2017
http://www.rfa.org/mandarin/yataibaodao/shaoshuminzu/xl1-04202017100838.html

Epoch Times: China Increases Spying Activities Overseas

Epoch Times, an overseas Chinese media, published an article that summarized the spying activities of overseas Chinese as reported in the media of Japan, Germany, and the U.S. It quoted an article published on April 17 in Shukan Taishu magazine in Japan which claimed that there could be as many as 50,000 Chinese spies in Japan. The article stated that China has built a giant spy network in Japan using Chinese students, scholars, professional workers, waiters or waitresses, and massage therapists. According to the report, some female spies would marry members of the Japan Self-Defense Forces in order to collect information.

On April 17, Les Échos, (a newspaper that the article identifies as German) published an article stating that the Department of the Interior of Hessen Germany recently issued a warning that Chinese spies are active on Linked In and Facebook where they pretend to be scientists, government officials, consultants, or human resource representatives. They target German municipalities, army officials, diplomats, scientists, and college students. The warning also requested that any suspicious activities should be reported to the security agency in Germany immediately. It is reported that there are close to 600 Chinese companies and over 10,000 Chinese citizens working in Hessen.

Meanwhile Newsweek in the U.S. recently reported that the China’s security agency has constantly been recruiting American Chinese who work in defense, security agencies or highly sensitives industries to conduct spying activities. The recent trend shows that the recruitment has expanded to Americans. Typical examples include Glenn Duffie Shriver who tried to apply for a position with the CIA and Candace Claiborne who works for the Department of State. The Epoch Times article also mentioned that in a separate publication, it covers reports on how foreign security agencies monitor activities of Chinese student associations or overseas Chinese associations that have close ties with China, while arresting or deporting those who spy for China.

Source: Epoch Times, April 17, 2017
http://www.epochtimes.com/gb/17/4/18/n9051300.htm

Duowei News: China Uses Social Media to Monitor Activities of its Own Citizens

An article that Duowei published shared the information on how WeChat spies on the activities of residents in China. The article said that the totalitarian government is always there to monitor activities of its citizens and the large sum of information collected on social media has made it easier for the government to exercise control. It also stated that Chinese authorities not only monitor public postings but also screen sensitive words on private messages and in chat rooms. In addition to WeChat and Weibo, the Chinese authorities are also capable of collecting chat conversations, using Chinese Skype versions called “Tom Skype,” as well as other types of applications. Meanwhile China is constructing a social credit system to monitor and analyze the activities and behaviors of Chinese citizen from economic, political, social, and living situations. The system is expected to be completed by 2020.  The article pointed out, “The difference between how the information collected from social media is used in Western democratic countries versus China is that there are legal regulations to protect the citizens’ private information in the West while Chinese authorities can access citizens’ private information based on the national security law and the new Internet security regulations.”

Source: Duowei, April 1, 2017
http://www.dw.com/zh/你好老大哥中国是如何通过app监控民众的/a-38249393?&zhongwen=simp

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