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Kim Jong-un Sees off Train Carrying Chinese Victims

A Chinese tourist group got into a deadly accident on April 22 when their bus fell off a bridge in North Korea. Thirty-two people died and two were injured. On the morning of April 26, North Korea sent a special train to carry the bodies of the dead and to take the injured Chinese back to China. Kim Jong-un went to the train station to see the train off. He stepped on the train briefly to greet the wounded people.

Sources:
{1} China News, April 26, 2018
http://www.chinanews.com/gn/2018/04-26/8500315.shtml
{2} The China Press, April 23, 2018
http://ny.uschinapress.com/spotlight/2018/04-23/143317.html

State Council Information Office Published “2017 Human Rights Record of the United States”

According to Guangming Daily, on April 24. the State Council Information Office published the “2017 Human Rights Record of the United States” and the “Chronology of Human Rights Violations of the United States in 2017.” The 2017 Human Rights Record of the United States claimed that in the “2017 National Human Rights Report” that the U.S. State Department issued on April 20, the U.S. continued to be a ‘human rights defender’ and claimed themselves to be the moral magistrates while blaming other countries for their domestic affairs and human rights conditions and making it look like that the U.S. is the only country in the world with a perfect human rights situation. Looking back on 2017, people with a sense of justice will find that the U.S.’s own human rights record is still notorious and continues to deteriorate.” The 2017 Human Rights Record of the United States was divided into the following sections: preface; serious violations of civil rights; systemic racial discrimination that further split the country; serious abuses of American-style democracy; continued deterioration of polarization between rich and poor; discrimination and physical abuse by specific groups; and continued brutal violations of human rights in other countries. The 2017 Human Rights Record consists of 10,000 words and the Chronology of Human Rights Violations consists of 9,000 words.

Source: Guangming Daily, April 25, 2018
http://news.gmw.cn/2018-04/25/content_28481537.htm

Supreme People’s Court and the Ministry of Justice Issued New Guidelines on Lawyers’ Conduct during Trial

Xinhua reported that the Supreme People’s Court and the Ministry of Justice issued a joint notice titled, “Protecting the Lawyer’s Rights of Law and Standardizing Lawyers’ Participation in Trial Activities.” The notice was said to “promote mutual respect, support, and supervision between the court and lawyers while, at the same time, defining the requirement to protect lawyer’s rights during trial and the lawyer’s code of practice.” One of the requirements stated that, “the lawyers are not allowed to interfere with a trial on the grounds of rights protection and are not allowed to use the Internet to publish statements, open letters, petition letters, etc. in their own names or through other people or the media. … Lawyers attending trials may not record, videotape, photograph, or use mobile communication tools to conduct court trial activities, and may not conduct other activities in violation of court rules and disobedience to court orders.”

Source: Xinhua, April 24, 2018
http://www.xinhuanet.com/legal/2018-04/24/c_1122734688.htm

LTN: Communist Party Branches Ask for Management Role in Foreign-Owned Companies

Major Taiwanese news network Liberty Times Network (LTN) recently reported that foreign companies in China are now facing a new challenge. More and more Communist Party branches have been established and are growing. In some cases, with the pressure from the Chinese government, these Communist Party branches are interfering with management activities. For example, when a U.S. engine manufacturer Cummins, headquartered in Indiana, decided to assign a manager for a project in China, the  Communists disagreed. Small Communist Party groups have existed in Chinese branches of foreign companies for many years. However, they never got involved actively in management activities. In the past several months, many of the Chinese partners of these joint ventures have asked for a “consulting role” for the Communist Party group before the board makes any decision. James Zimmerman, a lawyer operating in Beijing serves many U.S. international firms. Zimmerman said that quite a large number of his clients have received clear requests from the Communists. Most of the companies declined to comment on this matter to the reporters.

Source: LTN, April 17, 2018
http://news.ltn.com.tw/news/world/breakingnews/2398300

Samsung and LG Plan to Close Their LCD TV Factories in China

Well-known Chinese news site Sina recently reported that, according to South Korean media news, more early signs of the negative impact of the China-US trade war are emerging. Two large South Korean technology companies, Samsung and LG, are planning to close their LCD TV factories located in China, where their 40- and 50-inch LCD TV sets were manufactured for the U.S. market. The announced U.S. tariff on Chinese TVs will leave the two companies with no profit, or they may even suffer a loss. Insider sources said the two companies have almost reached final decisions on this plan. After the closures, the South Koreans will establish new factories elsewhere, such as Mexico. LG is constructing new factories in the United States too. TV sets made in China hold ten percent of the total TV output of these two companies. A Samsung official commented that, with a 25 percent tariff, there would be no way to continue production without a loss.

Source: Sina, April 16, 2018
http://tech.sina.com.cn/it/2018-04-16/doc-ifzcyxmv4838311.shtml

Oriental Daily: Chinese Companies Suspected of Using Greek Port for Tax Evasion

The popular Hong Kong newspaper Oriental Daily recently reported via its online news site that Italian investigators said they are working with the European Union to hunt down Chinese criminal groups who have smuggled a large amount of goods into the EU via the Greek port of Piraeus to avoid an import tax and a product value-added tax (VAT). The Italian Central Anti-fraud Office pointed out that evidence showed Chinese criminals worked through their own companies in Piraeus to import counterfeit clothing and shoes. The Italian government estimated the loss reached tens of millions of Euros. The Greek government also started its own investigation. Piraeus is Greece’s largest port. Its largest shareholder is China Ocean Shipping Company (COSCO). The Port of Piraeus is a strategic city in China’s “One Belt One Road” plan. Oriental Daily has been Hong Kong’s number one newspaper in circulation since 1976, with a record readership of over 3,100,000.

Source: Oriental Daily, April 21, 2018
http://hk.on.cc/cn/bkn/cnt/news/20180421/bkncn-20180421020014418-0421_05011_001_cn.html

Sina Commentary: We can Never Win if we are just working as the delivery person

On April 16, The U.S. Commerce Department’s Bureau of Industry and Security, or BIS launched a 7-year tech ban that prevents U.S. companies from selling components and technology to ZTE. It cited “ZTE not only for violating export controls meant keep sensitive American technology out of the hands of hostile regimes like Iran’s; ZTE also lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts.” On April 19, Sina published a commentary article which is titled “Inspiration from the ZTE Incident: We can Never Win if we are just working as the delivery person.” The article provided the timeline and background of the ban and made the following statement: To such an extent, there is nothing ZTE can do… They have themselves to blame… We should understand that winning the war in the modern era will not simply rely on airplanes or naval vessels. The rise of big powers cannot rely on the exaggeration of the slogans from CCTV or other patriotic propaganda. But rather it involves the accumulation of “lonesome” time and effort in investment in core technology development. According to an article Aboluowang published on April 22, Xi’s recent speech at the National internet security and information work conference held on April 20 and 21 in Beijing could be interpreted as the first news report on Xi’s reaction to the ZTE ban. In his speech, Xi stressed that “core technology is an important weapon for a country and (we) must be determined and persistentent in speeding up the breakthrough in core technology.” Xi also mentioned that “China needs to formulate a fair market environment, strengthen intellectual property protection, and oppose monopolies and unfair competition.” The Aboluowang article commented that, given China’s existing business environment and political system, it is not optimistic as to how much of Xi’s wish can be realized.

Sources:
1. Sina, April 19, 2018
http://tech.sina.com.cn/it/2018-04-19/doc-ifzihnep7718716.shtml
2. Aboluowang, April 22, 2018
http://www.aboluowang.com/2018/0422/1103289.html
3. Xinhua, April 21, 2018
http://www.xinhuanet.com/politics/2018-04/21/c_1122719810.htm

Options for Manufactures in the Pearl River Delta Economic Zone if the Trade War were to Begin

According to an article Hong Kong Economic Times published, if the trade war between U.S. and China were to begin, manufacturers in the Pearl River Delta Economic Zone might be looking at the following options. The first option is to relocate their production line or setup a warehouse in Malaysia, Vietnam, or Thailand, to avoid increases in the tariff. The second option is to forge a fake product bar code or change the country of origin to countries such as Mexico but there will be legal consequences with this approach. The third option is just close the door. The manufactures who make common products such as light bulbs or LED flat panels would face greater risks of closing the door. The last option is to pass the increase to the consumers in the U.S. who will end up paying an extra 30 to 35 percent. Currently, the Pearl River Delta Economic Zone produces 25 percent of the export volume in China. The article stated that companies in the zone will face the largest threat of survival if the U.S. and China trade war were to begin.

Source: Hong Kong Economic Times, April 16, 2018
http://china.hket.com/article/2050843/珠三角恐成貿戰「焦土」%20廠商只有三條路走?