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10,000 Factory Workers Protest Merger; executive killed

On July 24, over 10,000 workers from the Tonghua Iron and Steel Group (TISG), Jilin Province, protested the government’s decision to allow a private company, the Jianlong Group, to take control of the company. Jianlong’s newly appointed General Manager, Chen Guojun, who threatened to fire all current employees, was beaten by angry workers and died. The Jilin Province government immediately announced that the merger would stop. Workers used firecrackers to celebrate their "victory".

In 2005, Jianlong owned 36% of TISG. But it experienced a huge loss in 2008. In Q1 2009, its loss was 1 billion yuan. Jianlong managed to exit from TISG. TISG immediately became profitable. By June 2009, it had 60 million yuan in profit. In July, Jianlong managed to take back ownership of 60% of TISG. That triggered the event. It’s a failed M&A instance of a private firm trying to acquire a state-owned enterprise. Employees are leery about the government selling the nation’s properties and ignoring the workers’ interests. There is also a question about Jianlong’s ability to easily exit from TISG, and then regain ownership of TISG.

Source:
[1] BBC Chinese, July 28, 2009
http://news.bbc.co.uk/chinese/simp/hi/newsid_8170000/newsid_8171700/8171701.stm
[2] Epoch times, July 26, 2009
http://www.epochtimes.com/gb/9/7/26/n2602653.htm

JNOC News: China’s New Diplomacy Direction

China News Agency quoted a report from Japan New Overseas Chinese News (JNOC News), on Hu Jintao’s speech at the 11th Conference of China’s Diplomatic Envoy to Foreign Countries. JNOC News stated that Hu’s speech has given direction for China’s new diplomacy approaches. Diplomacy activities will focus on six areas: economic development, national security, targeted large countries, culture promotion, rights protection (for overseas Chinese), and harmony.

On National Security, Hu stated that diplomacy should firmly safeguard national sovereignty, territorial integrity, and interests. The core is the “One China” principle. That’s Chinese diplomacy’s “red line” that can’t be crossed. It is believed that China will be more aggressive against the Dalai Lama and Xinjiang separatists and pressure their international space. As for the South Sea, China will be firm on any area of land or water, but might exercise control to avoid escalating a situation to cause regional instability.

On rights protection, China wants to extend its influence to develop networks and protect the rights and interests of Chinese citizens and overseas Chinese (people with a Chinese origin but of other nationalities). “Our brothers are all over the world.” “(Let them) come to the Chinese Embassy or Consulate when they run into problems.”

Source: China News Agency, July 22, 2009
http://www.chinanews.com.cn/hb/news/2009/07-22/1786127.shtml

China Deputy Foreign Minister: 75 Event Is a Criminal Act Planned by Overseas Forces

He Yafei, the Deputy Foreign Minister of China, re-stated on July 22, that the “75” (July 5) event in Xinjiang is China’s domestic affair. Fundamentally, it is not a race issue, nor a religion issue, but a severe violent criminal act carefully planned and organized by the overseas “three forces” (a term used by the Chinese government to refer to terrorists, separatists, and religion extremists – Ed).

He stated that Rebiya Kadeer conducts activities outside China, including in the US, to divide China. “The Chinese are fully aware of this. The US should also be fully aware of it. (I) hope the US restricts Rebiya from using US land to conduct separation activities (against China).”

Sources: Xinhua, July 23, 2009
http://news.xinhuanet.com/video/2009-07/23/content_11761729.htm

Study Times: Strategic Thinking on the Reliability of Grain Supply

Study Times, a newspaper 0f the CCP Central Party School, recently published an article on grain supply. The article suggested that, to ensure the reliability of the grain supply, the government has to protect and improve comprehensive capabilities of grain production. It is very important to apply tight control over grain procurement, processing and market operation channels to prevent a foreign take-over. To achieve this goal, a few steps must be taken: (1) establish market access control systems on grain processing and seed sales channels; (2) establish central government macro-level industry control to eliminate the possibilities of a local “break-in;” (3) establish large scale grain production groups to grab market share; (4) improve technological creativity to increase competitiveness.

Source: Study Times, July 20, 2009.
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=0&id=2804&bid=4

Hu Jintao: Coping with the Financial Crisis an Important Task for Diplomacy

Hu Jintao delivered a speech at the 11th Meeting of the Chinese Diplomatic Envoys. He emphasized the tasks of effectively coping with the international financial crisis, and ensuring economic growth, people’s livelihoods and social stability.

Wen Jiabao emphasized in his speech that China must combine expanding domestic needs with stabilizing international needs, and that China must increase its international market share. He stated that the policy of taking full advantage of international capital is still essential. Integrating the use of foreign exchange reserve and internationalization of Chinese companies, integrating the use of foreign investment and Chinese exports, integrating the Chinese currency exchange rate and the market demand/supply model are key tasks ahead.

Source: China News, July 20, 2009.
http://www.chinanews.com.cn/gn/news/2009/07-20/1783217.shtml

Chinese Universities Fake Graduates Employment Rates

Some Chinese universities are forcing graduating students to sign employment status papers before they issue a diploma. Some of the companies mentioned in those papers don’t even exist. According to the Chinese official China Daily, the so called “employed” students don’t truly have jobs. The universities in question often “prepared” the papers for the students who later found themselves considered “employed” without their even knowing.

The Chinese Ministry of Education announced in July that, up untill July 1, Chinese university graduates had an employment rate of 68%. The Ministry of Human Resources and Social Security believes the rate will be 88% by the end of the year.

Source: Industry and Commerce Daily, July 21, 2009.
http://www.secretchina.com/news/302187.html

Zhou Yongkang Stresses the Need for the Military to Promote Social Stability

Days before the August 1st “Army Day”, Zhou Yongkang, a member of the Central Committee Political Bureau Standing Committee, and Secretary of the Central Political and Law Commission, spoke at the national conference in recognition of “work to safeguard national defense and the interests of military personnel and their dependents.” Zhou stressed that all political and law agencies and related departments in the military should promote national security and its overall strategic development level in order to effectively safeguard the national defense interest and protect the legal rights of military personnel and their dependents, to enhance national defense, and to promote social harmony and stability.

Zhou warned of the existence of unstable elements such as the enemy forces that are unwilling to recognize the power that China has gained over the years, and would use all kinds of means to interfere and destroy. He referred to the “July 5” Xinjiang Riot as an example.

Source: Xinhua, July 22, 2009
http://news.xinhuanet.com/politics/2009-07/22/content_11753084.htm

Huanqiu BBS: US Spends Millions to Pay Chinese Internet Spies

To counter claims by western medias on the, “China poses an Internet threat theory,” Quanqiu carried an article on its BBS sites denying that China could pose any Internet threat and counterclaiming that China has been the victim of cyber attacks by foreign countries. It also claimed that US intelligence agencies spend tens of millions of dollars every year to support a group of “Internet traitors” from China to infiltrate and instigate rebellion against China.

The article said, “Most of these Internet traitors are either losers or those without a stable income.” “They regularly visit various Chinese BBS sites and receive a fixed income from the US. … Intelligence agencies from the US or Japan hired them to publish articles to attack the Chinese government or spread rumors against us… Their topics target the government system, value concepts, or social morality. Many (democratic activists) carry extreme views against China.”

Source: Quanqiu, April 14, 2009
http://bbs.huanqiu.com/zongluntianxia/thread-213435-1-2.html