Skip to content

China’s Per Capita Income Gap: 55 Times in Difference

Radio Free Asia reported that Chinese scholars had shown that the highest per capita income in mainland China was 55 times the lowest. The difference is much higher than the officially published figures. Scholars believe that corruption is the reason for such a wide gap. It is the result of an ill-conceived system, and of the "gray" income to special groups [that is, income in the form of bribes — Ed.]. The wealth gap causes widespread dissatisfaction among the members of the public and poses the biggest threat to a harmonious society and sustainable economic development.

Source: Radio Free Asia, July 28, 2009
http://www.rfa.org/mandarin/yataibaodao/shouru-07282009104520.html

Central News Agency: The Corruption in Chinese Business World Is Forced

The Central News Agency reported that China palms corruption chaos off on multi-national corporations. In fact, Western companies had been forced to submit to the Chinese system of corruption. Peter Navarro, a professor at the School of Business at UC Irvine, said, “In China, because of corruption, multi-national corporations are in a dilemma. Corruption in China has become a part of people’s lives.” Gordon Chang, author of The Coming Collapse of China, believes that Western companies’ submission is rooted in the Chinese Communist Party. He said, “I think in China, large-scale transactions have indeed been full of corruption and the small-scale transactions have been in the same situation. Unfortunately, the Western companies have had to do that also. The Chinese Communist Party (CCP) originally designed the system and hasn’t taken measures to deal with corruption."

Source: Central News Agency, July 26, 2009
http://www.cna.com.tw/SearchNews/doDetail.aspx?id=200907260169

China Negotiated with Russia in Vain on Market Closure

From July 22 to 25, Deputy Minister Gao Hucheng led a Chinese Commerce and Trade Group to visit Moscow to discuss Russia’s closure of the Moscow market that many Chinese merchants used for small commodity trades. In June, the Russian authorities claimed that the Chinese merchandise did not go properly through Russian customs, so they suddenly closed the market and confiscated over over 15 billion yuan of goods, leaving more than 60,000 Chinese merchants with nothing.

After the negotations, China and Russia reached agreement on three points: 1. Both sides will further develop the strategic partnership with each other. 2. Both sides will further develop the commerce and trade between each other. 3. Both sides will resolve the closure of the large commodity market through friendly negotiation.

Ed – The Chinese merchants imported their goods into Russia through "gray customs," using the common practice of bribing Russian customs officials. There is no material result in the agreement that would help the merchants to get back their confiscated goods.

Source: Embassy of China in Russia
http://ru.china-embassy.org/chn/sgxw/t575204.htm

After Uyghur Crackdown, State Council Will Further Manage Minorities to “Promote National Unity”

In the aftermath of the July 5 crackdown on Uyghur protests in Xinjiang, the State Council issued a notice calling for further development of minority culture in order to “promote national unity” and “common prosperity and development.” It claimed that “the party and the State have always attached great importance and concern to the cause of minority culture.” The notice asks that cognizant laws and regulations be put in place and that the Party’s leadership of minority cultural development be strengthened.

Source: Xinhua, July 23, 2009.
http://news.xinhuanet.com/politics/2009-07/23/content_11762069.htm

China Supreme Court Calls for Emergency Response Mechanism

The Supreme People’s Court of China recently issued a notice titled “Opinion on Further Strengthening and Standardizing Enforcement,” reported Xinhua. In the notice, the Director of the Enforcement states, “For a long time, there have been frequent and sometimes violent incidents of resisting enforcement of the law… Therefore, we need to establish a rapid response mechanism for enforcement to timely deal with emergencies and unexpected events, remove obstructions and interference with the enforcement of the law, maintain orderly enforcement, and safeguard social harmony and stability.”

Source: Xinhua, July 27, 2009
http://news.xinhuanet.com/politics/2009-07/27/content_11777966.htm

China-Russia Military Relationship – Lack of Trust?

In its military forum, Global Times, a state newspaper under People’s Daily, published the translation of a South China Morning Post article calling the Russian-China relationship a marriage of convenience. The July 25 SCMP article quoted Andrei Pinkov, editor-in-chief of Kanwa Defense Review, as saying that the relationship between Russia and China is nothing but a marriage of convenience with no solid foundation, in spite of their common interests. "China and Russia will not form the kind of close alliance that the US enjoys with Japan and Australia because Moscow feels uneasy about the rise of China… Some people in Moscow are worried that China may mass-produce Russian weapons." The SCMP also quoted from a military expert in Shanghai that, for the same reason, "the Shanghai Cooperation Organization will not be another NATO."

Source: Global Times, July 27, 2009
http://mil.huanqiu.com/Observation/2009-07/527747.html

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