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Open Letter Appeals to Xi Jinping to Stop the Massive Handouts to Foreign Students

A U.S. based blog site – weiquanwang (rights protection site) – recently published an open letter to the Chinese Communist Party Central Committee and requested that China stop providing blanket massive subsidies to foreign students in China. The letter stated that millions of ordinary Chinese people have to tighten their belts for their children’s education, while the government hands out disproportionate subsidies to thousands of international students in China.

As of July 31, 2018, 295 people had signed the letter, which was titled, “Citizens’ Opinion on Requesting an End to the “Universal” Fiscal Subsidies to Foreign Students.” Among them were 49 lawyers (not including one lawyer who withdrew under pressure), six journalists, and 240 doctors, professors, teachers, and other activists.

The author Liu Shuqing, a human rights Lawyer and a lecturer from Shandong Qilu University of Technology, has already mailed it to Chinese President Xi Jinping, Premier Li Keqiang, Chair of the National People’s Congress Li Lishu; Minister of Education Chen Baosheng, Finance Minister Liu Kun, and Director of Legal Affairs of the NPC Standing Committee Chen Chunyao.

The letter stated, “We are not a group that suffers from xenophobia.  . . . We understand our government’s moderate assistance to poorer countries. We understand the practice of granting scholarships to a small number of outstanding foreign students, but the principle body of doing this should be schools and universities.  . . . What we are opposed to is the ‘universal’ and high amount of fiscal subsidies to foreign students without considering our national conditions. What we oppose is the irrationality of policies and the lack of procedural justice in the process of policy making. What we value is the Chinese national’s equal rights to education and the taxpayer’s rights to have a say on fiscal expenditures.”

The letter pointed to the fact that China’s per capita income in 2017 ranked 69th in the world, a very low level. By China’s own poverty standard, 40 million people are still living in poverty. Without a system that provides the basic guarantees of education and medical care, incidents of poverty related dropouts have occurred from time to time. Chinese university students need to pay a high tuition. Scholarships, assistantships, and work-study programs cannot offset these payments. For an ordinary Chinese family, a university education is a heavy burden.

The letter criticized the handing out of 60,000 to 100,000 yuan annually to almost every foreign student, the number of which has grown dramatically. It is an immoral policy as the government is obligated to have its actions be approved by the tax payers before it makes such policies of foreign aid.

The letter said it understands that there may be strategic considerations related to the “One Belt, One Road” initiative. By increasing the proportion of foreign students in the country, the regime hopes that they will become the backbone of the local people and help to promote strategic implementation. However this way of using fiscal subsidies to attract foreign students is wrong.

Source: Radio France Internationale, August, 9, 2018
http://rfi.my/2zJb.T

China to Become the World’s Largest Natural Gas Importer by 2019

Recently, the International Energy Agency (IEA) issued the “Natural Gas Market Report 2018,” which predicts that, by 2019, China will become the world’s largest natural gas importer due to the lack of domestic supply. By 2023, China’s natural gas imports will reach 171 billion cubic meters, most of which will be LNG (liquefied natural gas).

According to the Chinese Ministry of Energy, China and India have become the fastest growing countries in demand for natural gas, especially LNG. Last year, China surpassed South Korea and became the second largest importer of LNG after Japan.

The Report shows that China and emerging Asian markets are promoting global natural gas consumption. Between 2017 and 2023, China will account for 37 percent of the increase in global natural gas consumption, surpassing every other country in the world. Regarding the forecast period, the Report expects the global natural gas market to exceed 4 trillion cubic meters by 2022, while China’s demand will grow at an average annual rate of 8 percent, accounting for more than one-third of the growth in global demand.

At present, the United States is the main producer of natural gas and exporter of LNG, accounting for nearly 45 percent of global production growth and nearly three-quarters of LNG export growth.

Source: Shanghai Security News, July 20, 2018
http://news.cnstock.com/paper,2018-07-20,1029054.htm

The Liao River Is an Environmental Nightmare

The Liao River is the principal river in southern Northeast China, and one of the seven main river systems in mainland China. Coursing 1,345 kilometers (836 mi) long, it passes through Hebei, Inner Mongolia, Jilin, and Liaoning Provinces.

According to Economic Information Daily, a subsidiary of the official Xinhua News Agency, in recent years, the amount of river water has decreased year by year. In many places, there is no water at all. A major section of the Liao River flows through Chifeng City and Tongliao City in Inner Mongolia, with a total length of 829 kilometers. In Chifeng City, since 2007, most parts of the river have run out of water for most of the year. In Tongliao City, the Liaohe River has experienced 20-years of being cut off.

In addition to the climate drought, the main reason is that there are too many water conservation projects along the river. In Chifeng alone, there are 82 large, medium, and small reservoirs in the upstream portion of the Liao River.

Over the years, with the interruption of water in the middle and upstream areas of the River and with the people living nearby increasing their demand for water consumption, the demand for groundwater has increased. This has resulted in over-exploitation and a decline in the water level. In Chifeng City and Tongliao City, groundwater depletion caused areas of land subsidence as large as 3000 square kilometers, and the water level dropped by about 10 meters.

The water interruptions have caused a large reduction in the area of lakes, wetlands and grasslands. Trees along the banks of the river have declined and died, posing a threat to the ecological environment and ecological security of this area. The grassland area in Tongliao City has been decreasing year by year since 2014. In 2004, the area of lake wetlands in Chifeng City was 60,738.05 hectares. By 2010, it shrank to half that size. Of the 82 reservoirs in Chifeng City, 40 percent have dried up.

Source: Economic Information Daily, August 6, 2018
http://jjckb.xinhuanet.com/2018-08/06/c_137370677.htm

Huawei Surpassed Apple to Become Number Two as a Cellphone Maker

Well-known Chinese news site Sohu recently reported that, based on numbers from the U.S. research institute IDC, in the second quarter of 2018, Chinese communications equipment vendor Huawei surpassed Apple to become the world’s second largest cellphone manufacturer in terms of handsets sold. Huawei’s Q2 global handset shipment (54.2 million) is significantly more than that of Apple’s (41.3 million), and Huawei now has a global market share of 15.8 percent (versus Apple’s 12.1 percent). Samsung remains the top vendor in the same category but saw a 1.8 percent decline in sales, down to a shipment volume of 71.5 million, with a 20.9 percent global market share. Two other Chinese handset makers, Xiaomi and Oppo took the world’s number four and five positions. In Q2, Huawei did take the top leader position from Samsung in the Russian market. It set the goal to be the world’s number one cellphone maker in 2020.

Source: Sohu, August 1, 2018
http://www.sohu.com/a/244589900_466942

Internet Posting: As Foreign Companies Leave China Who Will Fill in Holes Left by 45 Million Lost Jobs?

A popular Internet posting titled “As Foreign Companies Leave China Who Will Fill in the Holes left by 45 Million Lost Jobs?” was circulating on overseas Chinese media sites. The original source has not been found. Below is a list of statistics and facts used in the article:
1. The following is a partial list of well-known foreign companies that have closed or are relocating manufacturing sites they have in China: Nikon, Nitto, Samsung, AU Optronics Corporation, Olympus, Omron, Adidas, Uniqlo, Foxconn, Intel, LG, and Nokia.
2. In November 2013, there were 57,200 foreign companies in China. By November 2016, there were 51,800 foreign companies in China, a reduction of 9.4 percent.
3. Fixed capital investment by foreign companies was at 214.6 billion in 2017 compared to 508.7 billion in 2011, a reduction of 57.8 percent in six years.
4. China made US$60.07 billion in investments overseas in 2011 vs. US$170 billion oversea investment in 2016. It shows that China’s investments overseas continue to grow.
5. Foreign companies account for less than 3 percent of the total companies in China, but they contributed over 50 percent of China’s foreign trade volume, 25 percent of profit and 20 percent of China’s tax income.
6. Regarding China’s foreign trade surplus in 2017, private enterprises and foreign companies accounted for 46.5 percent and 43.2 percent, respectively, and state-owned enterprises accounted for only 10.3 percent.
7. Foreign investment’s contribution to GDP: Guangzhou 62 percent of its GDP; Shanghai 67 percent, Shengzhen 70 percent.
8. One statistic suggested that in 2013, the number of people employed by foreign companies (including Hong Kong, Macao and Taiwan) reached a peak of 29.63 million. By 2014 and 2015, the number of employed persons was 29.55 million and 27.9 million respectively. By 2016, the number dropped to 26.66 million, a drop of 2.97 million in three years. China’s official number for direct employment by foreign companies in China, however, was at 45 million.
9. Three major reasons why foreign companies have left China: the real estate bubble, increases in operating costs, a decline in profit, and a devaluation of Chinese currency.

Source: Wenxuecity, August 2, 2018
http://www.wenxuecity.com/news/2018/08/02/7494179.html

China’s Largest Corn Trader Quietly Filed for Bankruptcy

According to Beijing News, the Intermediate People’s Court of Changchun City of Jilin Province recently issued a civil ruling that Xinghua Grain Depot, a subsidiary of Jilin Grain Group Co., Ltd., is insolvent and unable to pay off its debts. The court ruling showed that Xinghua’s current debt ratio exceeded 100 percent. It has 27 employees under labor contracts. The company has so far defaulted on wages, social security, and medical insurance payments.

As a matter of fact, before the Xinghua Grain Depot’s bankruptcy filing, its parent company Jilin Grain Group Co., Ltd. already quietly went bankrupt. The civil ruling that the Beijing News reporter obtained showed that the applicant, Wang Jing, applied to the Changchun Intermediate People’s Court for bankruptcy liquidation of the Jilin Grain Group on the grounds that it was insolvent and was not able to pay off its debts. On May 15, 2018, Jilin Grain Group submitted a written opinion to the court, expressing its consent to bankruptcy liquidation. The court ruled to accept Wang’s bankruptcy application for Jilin Grain Group.

Since August, a number of Jilin Grain Group’s subsidiaries including the above-mentioned Xinghua Grain Depot have filed for bankruptcy reorganization. For example, the Changchun Intermediate People’s Court issued another civil ruling on August 2, indicating that Jiashi Rice Industry Co., Ltd. has been unable to pay off its debts. It ruled to accept Jiashi Rice’s bankruptcy application.

Founded in 1996, Jilin Grain Group Co., Ltd. grows, processes, and distributes grains. With registered capital of 664 million yuan (US$97 million), it has 20 subsidiaries, a total of 3,000 employees and an annual sales income of more than 10 billion yuan (US$1.5 billion). A nationally recognized state-owned enterprise, Jilin Grain Group was China’s largest corn trader.

In recent years, Jilin Grain Group has been involved in corruption investigations. In February 2018, former party secretary and chairman of Jilin Grain Group, Meng Xiangjiuwas, was under investigation for “serious violations of discipline” and dismissed from the party. Xinhua News Agency reported a long list of charges against Meng, including illegal possession of property, misappropriation of public funds for illegal activities, accepting bribery when appointing officials, contracting projects and conducting business operations.

Source: Beijing News, August 3, 2018
http://www.bjnews.com.cn/finance/2018/08/03/498070.html

Overseas Study Tours for Preschoolers

In order to prepare for the tough competition in the future, Chinese families continue to invest in their children’s education. Online travel agency Ctrip recently released the “2018 Summer Study Camp Report,” pointing out that more and more Chinese families prefer that their children go abroad for study and camp tourism. In 2018, the scale is expected to reach 1 million people, with expenditures of more than 30 billion yuan (US$4.4 billion).

The report sampled families with children between the ages of 8 and 12 and found that the proportion of families who are willing to participate in study tourism this summer is as high as 80 percent. The per capita expenditure for an overseas trip is more than 23,000 yuan (US$3,400). The average expense of a trip to the United Kingdom, the United States, or Australia is between 32,000 yuan (US$4,700) and 38,000 yuan (US$5,600); the shorter trips to Asian countries cost between 8,000 yuan (US$1,200) and 15,000 yuan (US$2,200). The most popular destinations for overseas study tours are the United Kingdom, the United States, Australia, New Zealand, Singapore, and Thailand.

The age of those going on overseas study tours is concentrated between 10 and 15 years old, accounting for 66 percent of the total. However, children under 6 years old also account for 5 percent.

The demand for quality in the study tours has gradually increased. Compared with the previous trips which were usually to open the eyes of the children, in recent years, parents have been giving thought to more professional considerations. Their inquiries include the information on the target school, the quality of teachers, the proportion of international students, the teaching philosophy of the school, and even the teaching materials.

Source: The Paper, August 3, 2018
https://www.thepaper.cn/newsDetail_forward_2317979

The Paper: The New US-EU Zero-Tariff Trade Deal So Far Is Just Talk

The well-known Chinese news site The Paper recently reported that the newly reached zero-tariff trade deal between the U.S. and the European Union (EU) sounded a lot better than the outcome of the G7 and the NATO summits. It is understandable and logical that these old allies wanted to avoid an ugly final show-down on trade when both sides were under heavy internal pressure. However, the actual negotiation, as the result of the agreed framework, will be very tough and will drag on for a long time. Only one day after the announcement, the world started to hear different interpretations of the deal. The Germans were more optimistic about the trade deal, but France sounded very cautious and immediately excluded agricultural topics from any future negotiation. The soon-to-start negotiation rounds most likely will be a long and tedious process since it is naturally hard to get 28 EU members to agree on anything. Chinese trade experts expressed the belief that it seems the developed countries now think that the WTO trade framework no longer serves their best interests. That sounded a lot like the TTIP negotiation Obama started with the EU, which ended up going nowhere. The spokesperson of the Chinese Ministry of Foreign Affairs commented in a press briefing that China expects the efforts between the U.S. and the EU will follow the international multilateral trade rules, such as the non-discrimination principle.

Source: The Paper, July 28, 2018
https://www.thepaper.cn/newsDetail_forward_2299639