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Southern Weekend: How Do the Overseas Communist Branches of State-Owned Enterprises Operate?

Southern Weekend, a Chinese media headquartered in Guangzhou of Guang Dong Province, published an article detailing how China’s state-owned enterprises (SOEs) carry out the (Communist) Party’s activities in their overseas operations. Below are excerpts from the article:

In order to reduce conflicts with local laws and policies, all Chinese enterprises have implemented corresponding measures to carry out Party development work.

CITIC Construction Co. Ltd. has established the working mechanism for overseas Party development of “internal persistence, not being open to the outside, differential treatment from the outside, and effective operations.” China Railway Group Co., Ltd. stipulates that the Party development work of internal staff can be centralized and should start after working hours and after the non-Chinese staff have left.

“Our overseas party building activities follow the principle of five non-disclosures,” said Cao Haixia, director of the party office of the PetroChina Great Wall Drilling Company. The five non-disclosures are, “Do not disclose anything about the Party’s organization, do not disclose the identity of the Party members, do not disclose the Party’s title, do not disclose the Party’s activities, and do not disclose the party’s documents.”

Southern Weekend found that many state-owned enterprises have clearly stipulated in their regulations on the work of Party development that the overseas Party development work generally upholds this “five non-disclosure” principle.

The Southern Weekend reporter learned that, with the deepening of the internationalization of state-owned enterprises, how to design the system for the overseas party-development of state-owned enterprises has become an important issue for the organizational departments and state-owned assets management departments at all levels.

At the end of 2016, the Central Government General Office transmitted the document “The Guiding Opinions of the Central Organization Department, the Party Committee of the SASAC of the State Council, the Party Committee of the Ministry of Foreign Affairs and the Party Group of the Ministry of Commerce on Strengthening the Party’s Development in State Enterprises’ Overseas Operations. In April and May 2017, Beijing SASAC twice carried out overseas investigations of grass-roots Party development in overseas projects under municipal SOEs. They believe that upholding the Party’s leadership over overseas enterprises is a principle issue of fundamental and directional significance.

Source: Southern Weekend, December 7, 2017
http://www.infzm.com/content/131334

Sri Lanka Leased Its Territory to China

The Sri Lanka government leased its strategic port Hambantota on the Indian Ocean to China for 99 years as it was stressed because of the financial loans that China provided.

China has been providing financial loans to many countries in South Asia, Central Asia, and Africa, especially under its “One Belt, One Road” initiative. Sri Lanka owed Chinese State-Owned Enterprises a total debt of US$8 billion and was unable to pay the money back. Therefore, it resorted to leasing out its land in repayment of its debt.

Source: Duowei, December 14, 2017
http://news.dwnews.com/global/big5/news/2017-12-14/60029716.html

Xinhua: Armed Police Will Be under the Sole Direction of the CMC

Xinhua announced that the Chinese Communist Party Central Committee published the “CCP Central Committee’s December 27, 2017, Decision on Adjusting the Control System of the Armed Police Forces.” The decision stated that, starting on January 1, 2018, the armed police will be under the sole direction of the Central Military Commission (CMC). It will no longer be under both the CMC and the State Council.

Duowei also reported that the armed police will go through a staff cut from 800,000 down to 400,000.

Sources:

1. Xinhua, December 27, 2017
http://www.xinhuanet.com/politics/2017-12/27/c_1122175909.htm
2. Duowei, December 15, 2017
http://news.dwnews.com/china/big5/news/2017-12-15/60029875.html

LTN: Police Cracked the Largest Methamphetamine Drug Smuggling Case in Australian History

Major Taiwanese news network Liberty Times Network (LTN) recently reported that Australian police officially announced the outcome of a six-month secret investigation of a methamphetamine (also known as Meth) drug smuggling case. The case involved 1.2 tons of Meth drugs, worth around $1.04 billion Australian Dollars (around US$813 million). The drug dealers were caught red-handed upon delivery. This new case replaced a similar one they cracked at the beginning of 2017 to become the largest in Australia’s history. According to the police, this batch of drugs was sourced from China. The drug dealer group still has their “mother ship” near the seas of West Australia. The recent police move only halted the smaller shuttle boats. The police refused to release more information about the “mother ship” in order to protect the Interpol surveillance mission.

Source: Liberty Times Network, December 22, 2017
http://news.ltn.com.tw/news/world/breakingnews/2290921

VOA Chinese: China Construction Sued in New York

Voice of America (VOA) Chinese recently reported that BML Properties sued China Construction America (CCA), the U.S. branch of China’s largest construction company, for fraud in the project of constructing the Baha Mar Resort, located in Nassau, capital of the Bahamas. BML accused CCA of using large-scale deception in order to significantly delay the completion of the US$3.5 billion resort program. BML is seeking damages of US$2.25 billion. BML declared that CCA submitted hundreds of millions of dollars’ worth of forged invoices and intentionally created a situation involving a lack of construction workers. CCA also moved equipment and workers to another construction site that BML’s competitor managed. During the construction period, a large number of Chinese government officials visited the United States and the Baha Mar Resort. CCA also billed for their travel and tourist costs, which were largely unrelated to the construction project (such as tickets to the Empire State Building). BML filed for bankruptcy in 2015 due to the major delay in the construction work, and the bankruptcy caused S&P to lower the Bahamas’ sovereign rating. BML also sued CCA in the High Court of Great Britain.

Source: VOA Chinese, December 28. 2017
https://www.voachinese.com/a/us-lawsuit-against-cca-20171227/4182238.html

German Ambassador to China Complained about Issues between China and Germany

Well-known Chinese news site Sina recently reported that, at a press conference not long ago, the German Ambassador to China, Michael Clauss, described a series of issues that Germany had with China. One issue that the Ambassador discussed specifically was the agreement between the two governments to establish a mechanism to facilitate on-going dialogues on Internet security. Clauss said the original discussion started in June. However, because of the lack of good faith in such a dialogue on the Chinese side, there has been no activity since then. The spokesperson from the Chinese Ministry of Foreign Affairs, Hua Chunying, later responded that the comments that Ambassador Clauss made were almost “flipping right and wrong,” because, after multiple invitations from China, the German government kept delaying sending the delegation. She thought Mr. Clauss should be more constructive and should make more positive contributions to the China-Germany relationship.

Source: Sina, December 27, 2017
http://dailynews.sina.com/bg/chn/chnpolitics/phoenixtv/20171227/01048190592.html

China Keeps Silent on North Korea’s Massive Fake Chinese Currency Brought into China

Duowei cited a Japanese media report that North Korea has recently been mass producing counterfeit Chinese currency renminbi and bringing the counterfeit money into China.

According to South Korean media reports, the North Korean source responsible for the original manufacture of the counterfeit currency is the Pingcheng mint factories under the North Korean Workers’ Party “Room 39.” Its counterfeit money is very sophisticated. Even the bank staff that deals with cash every day cannot tell the difference unless they check very carefully.

The forgery and circulation of other countries’ currencies is called “economic terror” and could have become a big diplomatic issue. However, the response of the Chinese government is quite puzzling. To date, only a handful of police stations have placed a note, “The occurrence of a large amount of counterfeit money made in North Korea,” on the front page of their official websites to remind the public. The official media have been silent. The Chinese government also has not issued a protest to North Korea.

Source: Duowei, December 19, 2017
http://news.dwnews.com/global/news/2017-12-19/60030683.html

Zhejiang University Professor Asked to Prove “His Mother Is His Mother” for a Medical Insurance Card Transfer

Sina (China News Agency) reported that when Professor Pan Liyong of the Zhejiang University School of Humanities applied for social security card transfer for his mother in order to bring his mother to live with him in Hangzhou, the Cixi Medical Insurance Center asked him to prove that “your mother is (really) your mother.” He was forced to get a notarized certificate as proof from his school. The certificate of proof spread on the Internet and got widespread attention from netizens.

The circulated certificate from the Humanities and Tourism Research Center of Zhejiang University had its official seal. The certificate said,” Professor Pan Liyong is the director of the Philosophy Department at the Humanities School of Zhejiang University. Recently he brought his mother to live with him in Hangzhou. According to the requirement of the relevant departments of your organization, he needs to go through certain formalities for his mother’s social security medical cards to be transferred. This is hereby to prove that PAN Li-yong’s mother, Chen Ai-Lian, is the mother of PAN Li-yong. It is hereby also to prove that the ridiculous practice of “proving that your father is your father,” which Premier Li openly criticized, is indeed still widespread.

Professor Pan said that when he tried to apply for the social security card transfer for his mother, the staff of Cixi Medical Insurance Center insisted that he provide a certificate of relationship with his mother. He had to get the above proof against his will. He then sent a photo of this certificate to his circle of friends. After the relevant departments from Cixi City saw the photo, the United Front Department of Cixi City promptly contacted him. Then the Cixi City Health Insurance Center immediately processed his mother’s social security card transfer.

Source: Sina, December 28, 2017
http://news.sina.com.cn/s/wh/2017-12-27/doc-ifyqcwaq4969339.shtml