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China to Amend Armed Police Force Law

Last Wednesday, People’s Liberation Army Daily reported that Sun Sijing, Political Commissar of the People’s Armed Police Force (PAPF) and a People’s Congress representative attending the National People’s Congress in Beijing, submitted a proposal seeking an amendment that would put the PAPF exclusively under the command of the Central Military Commission headed by Xi Jinping. 

According to Sun, the proposal to amend the law was based on the need to codify Xi Jinping’s recent guidance on the Armed Police Force and to implement the responsibility of the Chairman of the Central Military Commission. "Our Constitution established the responsibility of the Chairman of the Central Military Commission as an important part of the system. The Armed Police Force is part of the national armed forces. This major principle, that the Armed Police Force must follow the command of the Chairman of the Central Military Commission, must be written into law in order to ensure that the Party’s Central Committee, the Central Military Commission, and President Xi Jinping have firm supreme command of the armed forces."
[Editor’s Note: The current Armed Police Force Law, passed in 2009, states that PAPF is under the dual leadership of the State Council and the Central Military Commission.] 

Source: National People’s Congress, March 8, 2016 
http://www.npc.gov.cn/npc/dbdhhy/12_4/2016-03/08/content_1973601.htm

Briefings | | |   Defense/Military

Xi Jinping on the Private Ownership Economy

On March 9, 2016, People’s Daily published the full text of a speech that Xi Jinping delivered to a group of businessmen. On March 4, 2016, during the fourth session of the 12th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), Xi gave a speech titled, “Unswervingly Adhere to Our Basic Economic System and Promote the Healthy Development of different Forms of Ownership.” 

Xi stressed that the status and the role of the non-State [private] ownership economy in economic and social development has not changed. Likewise, the policies to encourage, support, and guide the non-State [private] ownership economy have not changed. Xi said that there are five priorities: to resolve fund-raising issues that mid-sized and small private businesses face, to open the market to them, to accelerate the construction of public infrastructure to serve these businesses, to guide them in mergers and acquisitions using their intellectual property as leverage to form conglomerates, and to expedite government approval of investments into these private businesses. 
Source: People’s Daily, reprinted by the official website of the Communist Party of China, March 9, 2016
http://cpc.people.com.cn/n1/2016/0309/c64094-28183110.html
Briefings | | |   Government/Politics

Major General: Four Bottom Lines for the North Korean Nuclear Issue

On February 24, 2016, Luo Yuan, a retired People’s Liberation Army (PLA) Major General and Chinese military theorist, published an opinion article on Huanqiu, a People’s Daily publication, on the subject of North Korea’s nuclear program. He stated that China must have four bottom lines when handling North Korea. 

The first is that any chaos in North Korea cannot spread to the Chinese side of the Yalu River. "Once unrest starts on the peninsula, the safety of the China-Korea border will be the first thing that is endangered. Why should China pay for the irresponsible act of someone else?" 
The second is that any military action that North Korea takes cannot take place beyond the Korean Demilitarized Zone (DMZ). Luo stated that the DMZ was the result of the Korean Armistice Agreement that multiple parties signed and also that North Korea’s research on and development of long-range offensive and defensive weapons and related military deployment and actions violate the Korean Armistice Agreement. 
The third is that North Korea cannot have nuclear weapons. Luo stated that, although North Korea has the right to the peaceful use of nuclear energy, such a right cannot be abused. Countries, particularly the United States, that want North Korea to abandon its nuclear program, should compensate it for such abandonment and should resume the Agreed Framework. 
The last is that any sanctions cannot be excessive and cannot harm China’s national interest. 
Source: Huanqiu, February 24, 2016 
http://opinion.huanqiu.com/1152/2016-02/8592564.html
Briefings | | |   Defense/Military

New Round of Anti-Corruption Inspections Launched for 2016

On February 23, 2016, the Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party announced that it will start its first round of 2016 inspections to look into corruption and the abuse of power. Inspection teams will be dispatched to 32 Communist Party and government departments. At the top of the list are the Publicity Department of the Communist Party, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the State Ethnic Affairs Commission, the Ministry of Civil Affairs, and the Ministry of Justice. 

Wang Qishan, a standing member of the Politburo, Secretary of the Central Commission for Discipline Inspection, and head of the CCDI, spoke at the kickoff of the first round of inspections. He stressed that the inspections should highlight the Party’s leadership and reinforce Party discipline. He called on inspection teams to study and understand speeches by Xi Jinping, general secretary of the CPC Central Committee and “resolutely safeguard the centralized and unified leadership of the Party’s Central Committee.” 
Source: The Central Commission for Discipline Inspection of the Chinese Communist Party, February 23, 2016 http://www.ccdi.gov.cn/xwtt/201602/t20160224_74842.html
Briefings | | |   Government/Politics

Universities to Launch Patriotic Campaign with Theme of Always Follow the Party

According to Xinhua, China’s Ministry of Education has issued a directive asking Chinese schools to re-enforce patriotic education using innovative methods such as the new media. 
In the directive, the Ministry of Education declared that schools at all levels must creatively carry out the patriotic campaign with a focus on the new media on the Internet. Schools are required to integrate the patriotic spirit into curriculum standards, textbooks, and exams and evaluations at the primary and secondary levels and in higher education; and also into morals, Chinese, history, geography, physical education, arts and other endeavors. 
The directive calls for launching special campaigns in universities with the themes of “I love my motherland” and “Always follow the Party.” 
Source: Xinhua, February 9, 2016 
http://news.xinhuanet.com/2016-02/09/c_1118016897.htm
Briefings | | |   Government/Politics

Retired Officials Urged to Follow Party’s Disciplinary Regulations

On February 4, 2016, Xinhua reported that the General Office of the Central Committee of the Communist Party of China and the General Office of State Council issued a new directive on retired officials. 

According to the new directive, retired officials are required "to keep the political character of loyalty to the Party at all times and to conscientiously maintain a high degree of consistency with the Party’s Central Committee headed by Xi Jinping, in their thoughts, in their political views, and in their actions." 
The new directive requires that retired officials be guided "to establish a firm sense of discipline and of the rules, and to abide strictly by political discipline and political rules." Retired officials must conduct themselves in compliance with the Party’s charter and disciplinary regulations and must stand firm on major issues. 
Source: Xinhua, February 4, 2016 
http://news.xinhuanet.com/politics/2016-02/04/c_1117995803.htm
Briefings | | |   Government/Politics

CCDI Uncovered Corruption and Abuse of Power During Inspections

On February 4, 2016, The Central Commission for Discipline Inspection (CCDI) of the Chinese Communist Party published the findings of its third round of inspections, which involved 31 entities. Major problems uncovered included corruption, weakening of the Party’s leadership, and violations in personnel selection and placement. 

CCDI launched the third round of inspections in October of 2015. Fifteen inspection teams were dispatched to cover the 31 entities. Several central government organs such as the Ministry of Education and the National Bureau of Statistics (NBS), along with 21 major financial institutions including the central bank, securities regulators, state-owned banks and insurance companies were inspected. 
For example, at the China Securities Regulatory Commission, CCDI discovered loopholes that breed corruption due to conflicts of interest. At China Construction Bank, CCDI also found officials abusing their power in order to attain personal gain. At China Life, China’s largest insurer, CCDI found that "the company’s local branches frequently violated laws and regulations" including fundraising fraud. CCDI has required these 31 entities to correct the problems per the CCDI’s recommendations. Further CCDI inspection teams may be dispatched to monitor the progress of the effort. 
Source: The Central Commission for Discipline Inspection of the Chinese Communist Party, February 4, 2016 http://www.ccdi.gov.cn/xwtt/201602/t20160204_74087.html
Briefings | | |   Government/Politics

Half a Million Jobs in Steel Industry May Be Cut Due to Overcapacity

About 500,000 may see their jobs gone because of China’s effort to reduce steel overcapacity. 

On January 22, the State Council announced that China will cut its crude steel production capacity by 100 million to 150 million tons. To accomplish this goal, Chi Jingdong, deputy secretary-general of the China Iron and Steel Association (CISA), said that, based on the per worker output of 300 metric tons at China’s steel mills, it means that 500,000 steel workers will face job changes. 
To deal with the 500,000 job changes, the State Council has reviewed and approved the “Guidance on the Steel Industry Turnaround,” which is expected to be released officially after the Chinese New Year which is on February 8. According to the Guidance, the reduction in crude steel production will be accomplished within a three year period (2016 – 2018). Two approaches will be used: mandatory and guided closedowns. Those companies that do not meet the legal requirements of the environmental law and regulations must be completely shut down permanently. Government policies will guide the elimination process for those that have already exited the market, that need to be relocated, or that are involved in mergers and acquisitions. 
Source: The Economic Observer reprinted by Huanqiu, January 30, 2016 
http://china.huanqiu.com/article/2016-01/8478107.html
Briefings | | |   Economy/Resources