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China Consumers Assn: 70 Percent of Consumers Unhappy about the Domestic Health Food Market

People’s Daily carried an article which stated that, according to statistics that the China Consumers Association released, 70 percent of Chinese consumers are not happy about the domestic health food market and over 60 percent of consumers don’t trust the advertising. They feel that the market is full of fake products and false advertising. The article used liquor as an example. It said that some of the manufacturers claimed that their liquor products provided health remedies. However, investigation results revealed that, in 2015, 51 types of “healthy liquor” brands falsely claimed health benefits and used illegal additives in making their products.

Source: People’s Daily, June 20, 2016
http://society.people.com.cn/n1/2016/0620/c1008-28456589.html

Lancome Bent Under Beijing’s Pressure

Lancome planned to have a free concert on June 19 featuring Hong Kong singer Denise Ho. However, under mounting pressure from China’s state media and "patriotic" netizens, Lancome backed out of the deal. This event and Lancome have received substantial international criticism.

In 1914, Denise Ho had been arrested for participating in the Occupy Central protest in Hong Kong. In addition, last month she met with Dalai Lama.

On June 4, Global Times published a posting with a question for netizens: "Some netizens reported that the hot selling Listerine and Lancome both invited Denise Ho to promote their products. Denise Ho supported Hong Kong independence and also, in Japan last week, advocated Tibetan independence. … What do you think?"

In no time netizens responded with the answer, "From now on absolutely boycott Lancome products."

Over a hundred Chinese netizens posted messages on Lancome’s official website in China, demanding that Lancome get out of China. Lancome China clarified that Denise Ho was not its product endorser. Over 40,000 Chinese netizens responded with their criticizm that Lancome was "playing a word game."

Lancome Hong Kong issued a statement on June 5 that its invitation to Denise Ho was "purely to share music, without any work endorsement relationship."

Late that night, Lancome issued an announcement saying, "We decided to cancel the event due to possible safety concerns."

Lancome’s kowtowing to Beijing irritated Hongkongese. By June 6, over 44,000 people clicked the "angry" button on Lancome’s two Facebook’s announcements.

Among the Internet messages, some Hong Kong netizens stated that they would not buy Lancome products anymore, some called for boycotting all products by L’Oreal, Lancome’s parent company, and some asked Lancome to fire its employees and public relations contractors who worked on the two announcements. [Editor’s Note: On Wednesday, June 8, Lancome shut its main stores in Hong Kong.]

Source: BBC Chinese, June 6, 2016
http://www.bbc.com/zhongwen/simp/china/2016/06/160606_hongkong_lancome_denise_ho

China Youth Online: Military Staff Cut Has Started

China Youth reported that, as part of the military staff cut that Xi Jinping announced last year, China has started the first round of the retirement of officers of the People’s Liberation Army (PLA).

"The 21st Army of the Western Combat Theater, an air-defense unit of the Central Combat Theater, and an armored brigade of the Eastern Combat Theater all have recently held retirement ceremonies for the officers who are leaving the military."

One goal of Xi Jinping’s military reform was to shrink the PLA command structure. "Among the 300,000 military staff cut, half of them are officers."

Source: China Youth Daily, June 13, 2016
http://zqb.cyol.com/html/2016-06/13/nw.D110000zgqnb_20160613_2-12.htm

Asia Pacific Daily: China Arrested a North Korean Spy

Asia Pacific Daily published a comprehensive article based on reports from several media that China arrested a North Korean spy at home in early June and confiscated 30 million yuan (US$4.6 million) and some gold bars.

The Yomiuri Shimbun, a Japanese media, which received information on June 11, first reported the news.

The South Korean media Chosun Ilbo reported, "The huge amount of cash and gold bars belonged to the North Korean military or the Worker’s Party."

The arrested spy was stationed in Dandong City, a city on China’s border with North Korea. He was referred to as "representative of the home country" and "General Manager." He was believed to have participated in the secret trade of materials that the United Nations embargoed against North Korean.

This arrest took place a few days after Vice chairman of the Workers’ Party Lee Yong-soo’s visit to China. Lee had a meeting with Xi Jinping in Beijing and returned on June 2. The Yomiuri Shimbun believed that China arrested the spy in order to apply pressure to North Korea because Lee Yong-soo expressed, during his meeting, that North Korea would continue its nuclear development efforts.

South Korea’s media JoongAng Ilbo also reported that, in March, a North Korean official tried to carry 20,000 yuan (US$3,000) to North Korea but was stopped at China’s customs at Dandong. He ended up not going to North Korea. Some analysts suggested, "Since China does not allow wiring Renminbi from banks to North Korea , the North Koreans can only transport cash. If China strengthens currency control [at the border], North Korea may have [no choice but] to smuggle or use international postal delivery vehicles to send cash."

The United Nations Resolution 2270, which was passed on March 2, required all member countries to cut bank connections with North Korea within 90 days.

Source: Asia Pacific Daily, June 14, 2016
http://zh.apdnews.com/asia/neasia/423565.html

CCDI: Some Countries Protect the CCP’s Corrupt Officials

On June 14, the Communist Party’s Central Commission for Discipline Inspection (CCDI) published an article asserting that some countries protect the corrupt officials who have fled China. 

The article observed that those countries believed that the corrupt Chinese officials who fled China to come to those countries were cards in their hands to play against China. However, they have now found out that these cards have become hot potatoes. In the past, the international communities applied a double standard to China. On the one hand, they criticized China for corruption; on the other, they protected the corrupt officials who fled China using the pretext of the law and human rights. “[We] must break through this ‘double standard’!” 

The article advocated that China should proactively inform the world of the anti-corruption campaign and related achievements in a systematic way. 
Source: The Communist Party’s Central Commission for Discipline Inspection reprinted by Qiushi, June 14, 2016 http://www.qstheory.cn/bwtj/2016-06/14/c_1119036319.htm

BBC Chinese: China’s Anti-Graft Watchdog Criticized the Central Propaganda Department

According to a report posted June 8 on the website of the Central Commission for Discipline Inspection (CCDI), the anti-graft watchdog of the ruling Chinese Communist Party (CCP), CCDI’s inspection team listed problems it had found when stationed at the Central Propaganda Department a few months ago.

The report cited CCDI member and lead investigator Wang Huaichen as saying that leaders in the department did not feel a sufficient sense of responsibility for undertaking ideological work.

According to the report, news propaganda was not targeted or effective enough. It identified the root cause as the weakening of the CCP’s leadership.

BBC Chinese cited AFP comments that this criticism indicated Beijing was attempting to continue tightening its control over the media and added that, based on other overseas analyses, this indicated the top Chinese leadership’s dissatisfaction with the propaganda department, which will probably lead to a restructuring of the department’s organizational hierarchy.

Source: BBC Chinese website, June 9, 2016
http://www.bbc.com/zhongwen/simp/china/2016/06/160609_china_anticorruption

EU Chamber of Commerce: Nearly Half of the Members Reevaluating Investments in China

Radio Free International (RFI) recently reported that the European Union Chamber of Commerce in China just released its 2016 Business Confidence Survey. The survey showed that 41 percent of its members are reevaluating their business in China and are planning to cut costs using such ways as layoffs. The report found the EU companies became pessimist because the Chinese government did not deliver on its promise to establish a more open and more competitive market environment. According to the report, 47 percent of the companies still intend to expand their Chinese operations. However, the same number was 86 percent three years ago. Among the members surveyed, 58 percent said the Chinese censorship of Internet access significantly impacted their ability to do business in China. This is a 17 percent increase from just last year.
 
Source: Radio Free International, June 7, 2016
http://rfi.my/1Uoopw8

CNR: The U.S. Unilaterally Terminated the High Speed Railway Project with China

China’s Central National Radio (CNR) recently reported that the U.S. company XpressWest unilaterally announced the formal termination of its joint effort with the China Railway International (CRI) to build a high speed railway between Las Vegas and Los Angeles. The contract was signed only nine months ago. XpressWest said that CRI was not able to deliver on its promises on time and could not obtain the required authorizations needed to build the trains. However, CRI explained in their response that XpressWest added new conditions into the signed contract and violated the contractual requirement that they not make public comments without mutual agreement. CNR found out from analysts that the primary road block was that the U.S. Federal regulations required the trains to be made in the U.S., and XpressWest could not get its train suppliers to meet the requirements on the degree of domestic manufacturing. The next step for China should be to take the legal approach since the United States claims to strictly follow the rule of law. In the meantime, China should be more careful about the impact of protectionism on the U.S. investment environment when it considers investing in the United States. 
Source: Central National Radio, June 11, 2016
http://china.cnr.cn/yaowen/20160611/t20160611_522367850.shtml