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China Imposes Restrictions on Trade with North Korea

On April 5, 2016, the Ministry of Commerce of China announced that, in order to implement relevant Security Council resolutions [prohibiting nuclear weapons development and ballistic missile activity], it was imposing an immediate ban on imports of North Korean coal, iron ore, gold, titanium, vanadium and rare earths. Some imports for civilian use would be allowed so long as they were not connected to nuclear or missile programs or U.N. Security Council Resolutions 1718 (2006), 1874 (2009), 2087 (2013) and 2094 (2013) and 2270 (2016). 

The Ministry of Commerce of China also announced that sales of jet fuel to North Korea were prohibited, but commercial aircraft outside of North Korea would be allowed to refuel for flights to North Korea. 
Source: Ministry of Commerce of China, April 5, 2016 http://www.mofcom.gov.cn/article/b/e/201604/20160401289770.shtml
Briefings | | |   Geo-Strategic Trend

CCDI Criticized the Communist Youth League

China Youth Daily, the official newspaper of the Communist Youth League, reported on April 1 that the Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party provided feedback after it conducted an inspection of the Communist Youth League. 

The CCDI inspection team criticized the Communist Youth League for its four tendencies. The Communist Youth League is out of touch with young people. Instead, it focuses on what the superiors are doing. It relies on an administrative mechanism from the top down; it rules by orders and demands obedience. It caters to the interest of elites and ignores working young people. It conducts too many entertainment activities that do not have educational content. 
“The Communist Youth League serves the Communist Party by working with the masses. … It mustn’t continue the four tendencies and mustn’t be out of touch with the masses. Otherwise, it will fail to fulfill the fundamental value for which the organization [the Communist Youth League] exists.” 
Source: China Youth Daily, April 1, 2016 
http://zqb.cyol.com/html/2016-04/01/nw.D110000zgqnb_20160401_6-01.htm
Briefings | | |   Government/Politics

Huanqiu: U.S. and Seoul Are Ready for Strike against North Korea

On December 31, 2016, as President Xi Jinping was meeting with President Obama at a nuclear security summit in Washington, DC, the China State media Huanqiu published a commentary by Lieutenant General Wang Hongguang, former Deputy Commander of the Nanjing Military Command, on the North Korean nuclear issue. 

According to Wang, the U.S., Seoul, and North Korea are implementing a "brinkmanship" policy, which has substantially increased the possibility of military confrontation. Once such a confrontation took place, it would probably not be an "accidental discharge" nor could any party control the situation.
Wang believed that the U.S. and South Korea have long been planning a military strike against North Korea and that the motivation for such a strike may now be ripe. 
Wang expressed that the military strike against North Korea would be likely to consist of four stages: first, a small scale attack on North Korea’s satellite launch site and the destruction of their nuclear technology; second, a small and medium scale attack on North Korean nuclear facilities and warehouses at the risk of nuclear contamination; third, a large scale attack on hundreds of military targets already identified, which would paralyze North Korea’s ability to initiate any of its own attacks and to fight back; fourth, a large scale attack to overthrow the North Korean regime by force. 
[Editor’s Note: Analysts noted the timing of Wang’s commentary was during Xi’s visit to the U.S. on nuclear issues.  Some also observed that the North Korean regime has been under the wing of former President Jiang Zemin’s faction. According to sources in the Chinese nuclear industry, North Korea’s nuclear scientists and technicians were trained in China, which also provided North Korea the most cutting-edge nuclear technology.] 
Sources: Huanqiu, March 31, 2016 
http://opinion.huanqiu.com/1152/2016-03/8793171.html?qq-pf-to=pcqq.c2c
Briefings | | |   Geo-Strategic Trend

Urbanization and China’s Housing Inventory

Xinhua’s Economic Information Daily recently published an article reporting on discussions that the attendees at the 2016 Boao Forum for Asia had about China’s large housing inventory. They expressed the belief that, in order for China to be successful in reducing its housing inventory, the number of new local residents must increase. About 70 percent of China’s real estate inventory is located in third or fourth tier cities such as capitals of less developed provinces, prefecture-level cities, and county-level cities. 

According to the article, experts at the forum pointed out that new residents who come to these cities may be the primary group to reduce the housing inventory. Urbanization based on population has reached 56 percent while urbanization based on registered urban residents is 37.5 percent, 18.6 percentage points lower. Farmers who left the countryside to work and live in the cities do not enjoy the same benefits in terms of pay, education, social security and housing, which makes it hard for them to take root in the cities. To incentivize these former farmers to buy houses in the cities requires the reform of the urban household registration system to allow them to register as well as solutions to other issues they face, such as enabling them to dispose of and liquidate their old farm houses. 

Source: Economic Information Daily, March 31, 2016 
http://news.xinhuanet.com/politics/2016-03/31/c_128850177.htm
Briefings | | |   Economy/Resources

Amended Regulations Will Hold Police Accountable for Abuse of Power

China has amended its Provisions on the Accountability of the People’s Policemen with Public Security Organs. The amended provisions took effect on March 1, 2016, superseding the original regulations of July 11, 1999. Notably, changes in the amended regulations include Articles 19 and 27. 

Article 19 provides that law enforcement personnel who commit wrongful acts such as corruption, torture, falsifying evidence, tipping people off, retaliation, or framing people will be severely prosecuted. 
Under Article 27, if law enforcement personnel intentionally or through gross negligence are responsible for cases being handled incorrectly, that law enforcement officer will be subject to lifetime accountability, regardless of any changes in his work unit, position, rank, or retirement status. 
Sources: 
Jinghua Times reprinted by People’s Daily, March 3, 3016 
http://opinion.people.com.cn/n1/2016/0303/c1003-28167802.html 
Legislative Affairs Office of the State Council of China, February 22, 2016 http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201602/20160200480251.shtml
Briefings | | |   Government/Politics

The Government’s Budget Includes the Budget of Communist Party Departments

The Chinese central government budget, which the Chinese national legislature is reviewing, includes, within its scope, the budgets of Communist Party departments. 

On March 11, 2016, the Fourth Session of China’s 12th National People’s Congress (NPC) held a press conference. The reporters present asked whether the government budget, which the NPC is reviewing, includes the budget of Communist Party departments and when the Party departments’ budgets may be made public. 
In response, Liu Xiuwen, Vice Chairman of the Budgetary Affairs Commission of the NPC Standing Committee, stated that the government’s budget that the NPC is reviewing does include the budgets of the Party’s departments such as the Organization Department, the Propaganda Department, the Office of the Committee on Organizational Structure, the Party School of the Central Committee (the Party School), and the Work Committee of Central Government Departments. 
Liu said that, last year, the Party School, the Office of the Committee on Organizational Structure, and the Work Committee of Central Government Departments released their budgets to the public and also released the budgets of some local Party departments. 
Source: People’s Daily, March 11, 2016 
http://lianghui.people.com.cn/2016npc/n1/2016/0311/c403040-28192881.html
Briefings | | |   Government/Politics

Liu Yunshan Met Zuckerberg

Liu Yunshan, a member of the Standing Committee of the Political Bureau of the Communist Party (CCP) Central Committee and of the Secretariat of the CCP Central Committee, met with Mark Zuckerberg, founder and CEO of Facebook, in Beijing on March 19, 2016. Liu is the top CCP official in charge of propaganda. 


Liu said that the Internet is the new home that mankind shares. It is the common responsibility for the international community to build a ‘community that will share the future’ in cyberspace.  Liu pointed out that President Xi’s four-point principles and five-point proposals on global Internet governance have won much popularity. 

Liu said that after over 20-years of development, China’s Internet industry, has blazed a path of development and governance with Chinese characteristics. He hoped that Facebook, with its advanced technology and governance mode, would work with Chinese Internet enterprises to enhance exchanges, share experiences, promote mutual understanding, and push for an outcome for the Internet’s development that would improve the benefits for the people of all countries. 

Source: Xinhua, March 19, 2016 
http://big5.news.cn/gate/big5/news.xinhuanet.com/politics/2016-03/19/c_1118382522.htm
Briefings | | |   Information/Technology

Li Keqiang: China Will Not Have a Hard Landing

On March 16, 2016, Li Keqiang stated at a press conference that China’s economy will not have a hard landing and that Government officials will be held accountable if they do not do their jobs. 

"We are fully confident in the long term prospects for the Chinese economy. This confidence is not without basis. We firmly believe that, as long as we continue to reform and open up, China’s economy will not suffer a hard landing." 
Li expressed that last year, due to multiple factors, the mainland’s stock market went through abnormal fluctuations and the authorities took comprehensive measures to stabilize the market only to prevent systemic financial risks. As the situation has changed, there is now a need for reform and a need to improve the financial regulatory system. Efforts should be made to achieve full coverage without leaving any regulatory gaps. At the same time there must be coordination among the authorities, as well as accountability. 
Li stressed that reform and improving the financial regulatory system is a process and all cognizant departments and local governments should continue to do their jobs in accordance with the existing descriptions of their responsibilities. “Otherwise, you will be held responsible for the slackness.” The press conference lasted two hours and ten minutes with close to 1,200 foreign and domestic reporters in attendance. 
Source: People’s Daily, March 17, 2016 
http://politics.people.com.cn/n1/2016/0317/c1024-28204946.html
Briefings | | |   Government/Politics