{Editor’s note: Qiushi published an article discussing three challenges that China has faced since it became the second largest economy in the world: the U.S.’ suppression, the low end of the industry chain, and the lack of discourse power. Continue reading
Research Journal Publication Faces Censorship in China
According to an BBC article that Cambridge University Press, the world’s oldest publishing house, which has business dealings and a server in China, had blocked over 300 articles on its website in China under Beijing’s pressure. China Quarterly had published those articles, which included such topics as on the June 4, 1989, Tiananmen Massacre; Tibet; and the democracy movement in China.
A specialist on the economy from Beijing University launched a petition asking Cambridge University Press to stand up to China’s censorship. By August 21, over 300 had signed the petition. On the same day, Huanqiu published an article claiming that, in order for institutions from the West to enter China’s market, they must make necessary adjustments; and that there is nothing wrong with what Chinese authorities had done because they were just doing their job according to the law.
The BBC article quoted several Chinese scholars who were concerned that more foreign research journals will face the same fate, that the censorship is unfair to Chinese scholars, and that it will negatively impact research and study work about China.
On August 21, Cambridge University Press unblocked these articles after it received pressure from the academic community.
On August 22, Radio France Internationale reported that Cambridge University Press received a request from State Administration of Radio, Film, and Television (SARFT) to remove 100 online articles from the Journal of Asian Studies. The Journal of Asian Studies is a publication of the Association for Asian Studies and is headquartered in the U.S. In the statement published on its official website, the Association for Asian Studies expressed its concern over academic freedom and it is talking with Cambridge University Press about how to response to the request from SARFT.
Source:
BBC, August 21, 2017
http://www.bbc.com/zhongwen/simp/chinese-news-41004248
Radio France Internationale, August 22, 2017
http://cn.rfi.fr/wire/20170822-北京施压-令剑桥出版社再撤学术文章
Beijing Is Determined to Clean up Chaos in the Financial Industry
According to a blog posted on Duowei, an opinion article that People’s Daily published on August 21 stated that Beijing has once again determined to increase oversight and scrutiny over the chaos in financial industry, especially in the area of high risk leveraged investments. The blog indicated that the cleanup effort could further affect a core interest group within the party. Starting this year, several private companies including Anbang, Hainan Airlines, Wanda, Fosun International, and Zhejiang Rossoneri Investment were the subject of different types of investigations, especially on the source of their capital as well as on acquisitions overseas. By the end of 2016, the combined capital of Anbang, Hainan Airlines, Wanda and Fosun International was over 4 trillion yuan (US$0.6 trillion). The blog quoted a source from the banking industry which indicated that, in the past two years, many companies used overseas buyouts to move capital overseas. Some of the buyouts were fake and hard to audit. The blog stated that the financial industry was flooded with party princelings who pocketed the profit, but when there was a loss, the people had to bear it. This became a classic model when Jiang Zemin was in power. It has enabled party officials to carve up the state’s assets for their own personal gain. The blog disclosed that during a central committee meeting last year, Xi Jinping used an unprecedented tone to condemn the corruption in the financial industry. In June of this year, Wu Xiaohui, Anbang’s chairman of the board was detained. Soon after that, Wanda issued a statement that it would keep the majority of its cash in China. At the same time, it started to sell off its real estate properties to pay back its bank loan.
Source:
Duowei, August 22, 2017
http://blog.dwnews.com/post-968498.html
Administration of Foreign Exchange Introduced Measure to Validate Domestic Issued Bank Card Use in Foreign Countries
On June 2, the Administration of Foreign Exchange issued a notice stating that, starting September 1, domestic financial institutions must report transactions if a bank card is used overseas and if the total amount is over 1000 yuan (US$150). The measure serves to validate personal information when there is spending activity overseas and to prevent any illegal purchase activity. People’s Daily published an article on August 4 stating that, since the bank card has become an important method for money laundering or corruption activity, the start day for reporting financial activity when using domestic issued bank cards overseas has been moved up to August 21. According to the article, a large amount of cash has been spent overseas in recent years. In order get cash to use while traveling overseas, some Chinese tourists have worked with a store to create fake purchases of jewelry or watches. Then they get cash from the store instead. Some have sold bank cards to be used for cash withdrawals overseas. The spokesperson from the Administration of Foreign Exchange stated that implementing reports of overseas bank card transaction activity will prevent illegal bank card transactions. The financial institution needs to report and collect the data and there is no need for the card user to do anything different. The Administration said it will not affect personal use of the bank card and personal information is strictly protected.
Sources:
1. People’s Daily, August 4, 2017
http://finance.people.com.cn/n1/2017/0804/c1004-29450089.html
2. Xinhua, June 2, 2017
http://news.xinhuanet.com/fortune/2017-06/02/c_1121078374.htm
Xinhua News Analysis: U.S. Army Cyber Command to Upgrade; Cyber War Is No Longer a Future Concept
China’s state media Xinhua published a news analysis on U.S. President Trump’s announcement to elevate the U.S. Cyber Command to a Unified Combatant Command. It said that the upgrade of the U.S. military cyber command to the U.S. military tenth joint operations headquarters, a status equivalent to the U.S. Central Command and other major combat commands, means that cyber space is officially listed as the U.S. military’s fifth battlefield along with marine, land, air, and outer space. Thus the worrying trend of the militarization of cyberspace has been further exacerbated.
The article quoted a statement that the Commander of the U.S. Cyber Command, Michael Rogers, made at a Congressional hearing in May, “Every conflict in the world now has a conflict in the dimension of cyber space. … A cyber war is not a future concept or a film scene. It has a real existence.”
The article stated in conclusion, “At the beginning of the establishment of the U.S. military cyber command, Commander Keith Alexander asserted that it would not promote the militarization of space in the military. Since then, however, Britain, Germany, France, Japan and other countries have announced the formation of cyber forces. Now the upgrade of the U.S. military cyber command is likely to trigger other countries to follow suit, thus further intensifying the arms race in cyber space.”
Source: Xinhua, August 18, 2017
http://news.xinhuanet.com/world/2017-08/19/c_1121509545.htm
Beidou Navigation System Will Be a Global Navigation System Not Subject to the Control of the United States
China’s state media quoted the Russian satellite network’s August 19 report that building a Sino-Russian joint orbit cluster (composed of 50-55 satellites) will help the use China’s Beidou satellite navigation system (BDS) in any part of the world. Many Asian countries are now using the BDS.
After creating a unified satellite cluster, “the concerns over Americans’ and Europeans’ (possible actions) will be completely eliminated.” Americans can cut off the global satellite positioning system and do anything they want with the system, but this will not have any effect on the GLONASS and the Beidou’s service consumers. By 2020, Beidou will become a global satellite navigation system for the Chinese army.
In case there is a conflict between any side of the partnership of the China-Russia, Sino-U.S. and Russia-U.S. with the U.S. side, none of the consumers of the GLONASS and BDS services will be damaged in any way. This is important for all countries that use the GPS and are concerned about U.S. sanctions.
The Sino-Russian joint navigation system is a strategic project. It is no coincidence that both countries regard their cooperation as one of the most promising directions in the high-tech field.
Sources: Global Times, People’s Daily and Xinhua, August 24, 2017
http://mil.huanqiu.com.vrp3d.com.cn/observation/2017-08/11165033.html
http://world.people.com.cn/n1/2017/0824/c1002-29491324.html
http://news.xinhuanet.com/world/2017-08/24/c_129687931.htm
Huanqiu: Philippine’s Secretary of Foreign Affairs Astonished the Media
Huanqiu reported that Alan Peter Cayetano, the Philippine’s Secretary of Foreign Affairs, held a press conference on August 8, after the ASEAN Foreign Ministers’ Conference. His comments on the South China Sea issue astonished the media.
According to Huanqiu, “Cayetano said that China has played an ‘active role’ in the ASEAN region. China’s rapid economic growth has benefitted all ASEAN countries. The Philippines ‘is proud’ of the current Sino-Philippine relationship.”
A news reporter asked if the Philippines wanted to add tough words towards China in the ASEAN Foreign Ministers’ joint statement on the South China Sea.
Cayetano stated that he didn’t want to add them. “I drafted the statement. (Adding tough words against China) does not reflect the current situation.”
The reporter followed up with asking why he did not want to add those words.
Cayetano cut the question off, asking, “Are you saying that we should embarrass China and then the Philippines should start a confrontation with China?” “Or should we let the South China Sea keep peace and stability and to pass the ‘South China Sea Code of Conduct successfully? … What is your goal?”
A CNN Philippines reporter asked why Philippine didn’t mention the “South China Sea Arbitration’ in the joint statement. Cayetano answered blankly, “Because it has no purpose in the development of Sino-Philippine relations.” “Do you want us to maintain the tough position and thus maintain the tension in the South China Sea, or get the current result via diplomatic channels?” “You tell me, which way better protects Filipinos’ interests and better protects the Philippine’s fishermen?”
“You asked me why I didn’t mention the South China Sea arbitrage.”
“My answer is that it is in the Philippine’s state interest.”
“What we need to do is to establish trust with China via friendly channels. That is in our state interest.”
Source: Huanqiu, August 10, 2017
http://world.huanqiu.com/article/2017-08/11108198.html
VOA: China’s SOEs in Hong Kong Openly Establish Party Structure
Voice of America (VOA) reported that China has recently taken off the veil and is openly establishing the Communist Party structure in its State Owned Enterprises (SOEs) that are listed on the Hong Kong Stock Exchange.
“From 2016 through July 2017, at least 32 of China’s SOEs listed in Hong Kong proposed to adjust their corporate governance structure to include articles that formally establish the Chinese Communist Party (CCP) Committee within the company. It has become particularly obvious in the past few months.”
The Industrial and Commercial Bank of China (ICBC) passed amendments to its by-laws in June 2017, including the following articles:
“According to the ‘Constitution of the Chinese Communist Party’ and the ‘Company Law,’ (ICBC decides to) establish the CCP’s organization (within the company).”
“The CCP Party Committee will have one Party Secretary, two Deputy Secretaries, and a few Party Committee members. The Chairman of the Board and the Party Secretary should be the same person.”
In their by-laws, other SOEs, including CITIC Securities, Sinopec, and other steel and energy companies, also defined the CCP’s leadership role in the company. These 32 companies have a collective market value of over US$1 trillion.
Since it attained power in China in 1949, the CCP has always firmly controlled China’s SOEs.
In 2001, shortly after China joined the WTO, China extended the CCP’s control to private companies. It required that any private company that had three or more CCP members as employees must establish a Party Branch or Committee within the company.
Walmart China and other foreign enterprises in China established CCP Branches around 2006.
Source: VOA, August 15, 2017
https://www.voachinese.com/a/china-firms-in-hongkong-20170815/3986965.html