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Jiang Zemin Received Different Media Treatment at the 19th National Congress

Storm, a Taiwan media and BackChina, an overseas Chinese media both carried reports on how Jiang Zemin received different media treatment at the 19th National Congress, which indicates where he stands in Xi Jinping’s eyes. Storm reported that during the closing ceremony, initially Xi Jinping and Jiang Zemin were chatting while waiting for the ceremony to start. However, when everyone rose during the national anthem, Jiang apparently struggled to get up. It was not until two assistants ran over that Jiang was able to stand up. The article stated that Xi did not even look at Jiang during the entire process; whereas, at the 18th National Party Congress, Hu Jintao helped Jiang to get up. In some situations, Jiang was either “accidentally” blocked or completely taken out of the picture. One example was at the opening ceremony. When Xi Jinping bowed and acknowledged Hu Jintao, Jiang Zemin, and the entire conference, Jiang’s image was completely cut off. When Xi led the group of leaders entering the stage, Xi completed blocked Jiang’s image. Also, when Xi finished his report and returned to his seat, CCTV showed a close up image of Xi shaking hands with Hu Jintao who sat to his right. However when Xi shook hands with Jiang, a photographer blocked him. Taiwan Eastern Television reported that when Xi delivered his report and read the part that said, “Whatever the public is against and hates …” it was not a co-incidence that CCTV showed a close up image of Jiang Zemin. The article suggested that Xi Jinping broke a number of political protocols to demonstrate that even though he appears calm and emotionless most of the time, he is in complete control of the current situation.

Source:
1. Storm, October 24, 2017
http://www.storm.mg/article/348992
2. BackChina October 23, 2017
http://www.backchina.com/news/2017/10/23/523065.html

Xi Jinping Directly Involved in New Leadership Selection Process to Weed out Opponents

Two articles that Xinhua published detailed the selection process for the new leadership candidates who were voted on during the 19th National Congress. The article gave an indication that, throughout the selection process, Xi Jinping was directly involved in weeding out his opponents. According to the article, the selection process started in February 2016, when a candidate selection committee that Xi Jinping led was first formed. During the process, Xi provided specific guidelines and criteria to use in the candidate selection. The criteria included, as the top priority, that the candidate must “meet political criteria and establish a political standard; the candidate must align himself with the Central Administration and be clear and firm about his political position; he must be clean and free from corruption while fit to get the job done.” From July 2016 through June 2017, the committee set up 46 observation teams to visit 31 provinces, 124 agency central administration agencies, financial institutions, and state owned enterprises to interview potential candidates. The Central Military Commission also formed 10 teams to visit military departments and agencies to talk to potential candidates. In the past year and a half, the candidate selection committee met seven times while the Standing Committee of the Political Bureau met six times to receive updates on candidate selection from the observation team. From April to June of 2017, Xi Jinping personally sat down with 57 existing party leaders to hear their opinions. The Political Bureau and Central Military Commission also set up hundreds of appointments to meet with members from the 18th Central Committee and leaders from a number of military divisions to hear their ideas. On September 25, a preliminary candidate name list was drafted and submitted to the Standing Committee of the Political Bureau. The final list was approved on September 29 before it was turned over to the 19th National Congress for a vote.

Sources: Xinhua, October 24 and 27, 2017
http://news.xinhuanet.com/politics/2017-10/24/c_1121850995.htm
http://news.xinhuanet.com/politics/19cpcnc/2017-10/26/c_1121860147.htm

Taiwan Couple’s Taiwan Nationality Removed Because of Their Chinese Communist Party Representative Position

The National Security Bureau and the Mainland Affairs Council (MAC) of Taiwan confirmed today that Chinese Communist Party representative Lu Lian and her husband’s Taiwan ID registration have been canceled. Lu’s family was quite disappointed after hearing the news. The Taiwanese applauded the action.

Lu Lian was born in Taiwan. She went to China in 1997 to teach in Shanghai. While there, she acquired a Chinese nationality. This year she was elected as a representative of the Communist Party of China. She published a remark affirming she “loves Taiwan and also loves the mainland.” Zhou Meixu, deputy director of the Taiwan National Security Bureau, said that, based on regulations, Lu Lian’s household ID registration has been canceled. Her health insurance and other rights have also been nullified.

Zhou also revealed that Taiwan authorities have confirmed that there are 19 Taiwanese people holding mainland Communist Party and government positions. Some of their canceled ID registrations have not been announced.

Source: Liberty Times (Taiwan) and Yahoo News (Hong Kong), October 26, 2017http://news.ltn.com.tw/news/politics/breakingnews/2234378
https://hk.news.yahoo.com/台灣陸委會證實盧麗安夫婦被取消台灣戶籍-090723729.html

Duowei: Chinese Communist Party’s Grand Goal: Building “a Community of a Shared Future for Mankind”

Duowei, a state sponsored Chinese news media, based overseas, reported that the 19th Congress of the Chinese Communist Party is the beginning of a new era. In the 19th Congress report, the Communist Party of China formally introduced the idea of building a “community for the shared future of mankind.” Professor Fang Changping, director of the International Strategy Center of the National Development and Strategic Research Institute of Renmin University of China, said in his interview with Duowei that the report’s most outstanding highlight in the diplomatic section was its innovative ideas. The Communist Party of China is standing at the pinnacle, above humankind, to promote the initiation of such a magnificent goal, that is to promote the development of new international relations — the development of a “community of a shared future for mankind.”

Source: Duowei, October 24, 2017
http://talk.dwnews.com/news/2017-10-24/60019362.htm

China.com: Zhou Xiaochuan Warns about China’s Minsky Moment

China.com recently reported that, at a recent press conference, Zhou Xiaochuan, the governor of China’s central bank, expressed his views on “systemic financial risks.” He proposed that the bottom line of China’s risk control should be to get prepared for stopping any kind of “severe adjustment” in the economy when China faces its Minsky Moment. A Minsky moment, named after U.S. economist Hyman Minsky, is a sudden major collapse of asset values which is part of the credit cycle or business cycle. Such moments occur because long periods of prosperity and the increasing value of investments lead to increasing speculation using borrowed money. As part of Zhou’s further explanation, he gave examples about China’s debts, especially company bonds and local government debts (channeled through local financial platforms). Zhou emphasized the importance of taking this issue seriously.

Source: China.com, October 20, 2017
http://economy.china.com/domestic/11173294/20171020/31588932.html

Apple Watch Cellular Connection Cut in China

Well-known Chinese news site Sina recently reported that the newly released Apple Watch Series 3, which added support for the LTE cellular connection, is facing governmental challenges in China. The LTE functionality was available on China Unicom at launch. However, the Chinese government abruptly terminated the LTE access for the new Apple Watch Series 3 subscribers a few days later without explanation. Industry analysts expressed the belief that the Chinese government was concerned about the fact that it could not track who was using the new Apple Watch. Apple’s new eSIM technology used in the Watch made it very difficult to track the user’s identity and China heavily regulates the mobile communications industry. The Chinese regulator, the Ministry of Industry and Information Technology, didn’t respond to the media’s requests for comment. Not long-ago the Chinese government forced Apple to remove more than 400 VPN apps from the local version of its App Store. VPN technology offers a way to bypass China’s Great Firewall.

Source: Sina, October 20, 2017
http://tech.sina.com.cn/mobile/n/n/2017-10-20/doc-ifymzqpq2652918.shtml

China Securities Journal: In September, the RMB’s Rank Fell in International Transactions

The China Securities Journal recently reported that SWIFT (Society for Worldwide Interbank Financial Telecommunication) released its September report. The report showed that the usage of China’s currency (the RMB) in international transactions fell to 1.85 percent. Among all currencies, the RMB was ranked number six for September, down from number five in August (1.94 percent). The report also pointed out that there is no clear relationship between the size of an economy and the usage of its currency in international transactions. The U.S. GDP is 25 percent of the global total, while the U.S. Dollar accounts for nearly 40 percent of all global transactions. China’s GDP takes a 15 percent share in the global economy, but the RMB accounts for less than two percent of the usage internationally. Although many RMB clearing centers have been established across the globe, the internationalization of the Chinese currency seems to have a long way to go to catch up with the Euro or even the British Pound.

Source: China Securities Journal, October 17, 2017
http://cs.com.cn/xwzx/hwxx/201710/t20171017_5518850.html

Foreign Companies Concerned about Party Interference in Their Operations

Epoch Times published an article in which it reported that Beijing has been extending its control over Foreign Companies in China. It now requires that these companies allow party branch offices to be established within the company and is pushing to grant operational decision making power to the party’s branch office. According to the statistics disclosed during the media conference at the 19th National Congress on the subject of the “party’s development and exercise of strict self-governance in every respect,” by the end of 2016, Chinese Communist Party branch offices had been established in 93.2 percent of 147,000 State Owned Enterprises; 67.9 percent of 2.7 million private companies, and 70 percent of 100,600 foreign companies in China. The article quoted the comments that several China scholars gave. They stated that the party organization might act like a union but its real purpose is to control and supervise how the company operates. One scholar told Epoch Times that, “The party can’t trust anyone. It must have its own people to do supervision. Therefore it must build a party organization everywhere even including temples and religious organizations.” The article also quoted a Reuters news article stating that top management from over 12 European companies gathered in Beijing at the end of July to discuss their concerns about how the party tried to influence the company’s day to day operations. One company manager disclosed that they received political pressure to modify the joint venture contract to include language that allowed the party to have decision making rights in company operations and investment decisions. According to Epoch Times, having the party organization manage the company is in conflict with the theory of a market economy and will eventually force private companies in China to lose their international competitive advantage.

Sources:
1. Epoch Times, October 22, 2017
http://www.epochtimes.com/gb/17/10/22/n9758229.htm
2. China.com, October 19, 2017
http://www.china.com.cn/19da/2017-10/19/content_41758149.htm