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CCDI: No Impunity for Corrupt Officials Who Flee China

On June 5, the Communist Party’s Central Commission for Discipline Inspection (CCDI) published an article addressing corrupt officials who are thinking of leaving China or who have already left. The article stated that the objective to contain rampant corruption has not changed and that there should be no impunity for corrupt officials who flee China. 

“Party members and cadres who flee aboard with [misappropriated] funds commit treason against the Party and the State. … If they are not brought to justice and dealt with according to the law, Party discipline and the law will not tolerate it. Nor will the people accept it.” 
The article stated that, in addition to recovering the funds, there are also political considerations. “Even if the misappropriated funds have been almost spent and are not recoverable, these perpetrators must be brought back to China to be punished severely in accordance with the Party’s discipline and the law so that there will be a closure for these people.” 
“However far they flee, they will be brought to justice in China. It may take 5, 10, or even 20 years to track them down. Even if there is only one corrupt element left at large out there, our pursuit in order to track down these people and the funds that they took will never cease.” 
Source: The Communist Party’s Central Commission for Discipline Inspection, June 5, 2016 http://www.ccdi.gov.cn/xsjw/series18/201606/t20160605_79953.html

Google CEO: We Want to Return to China in a Significant Way

NetEase (163.com) reported that, at the Code Conference on June 1, Google CEO Sundar Pichai expressed his interest in Google returning to China. He said that he wanted Google’s return to happen in a significant way, but we’re "being thoughtful about [the return]." "It depends. We are open [to the idea]."

Google closed its search engine in China in 2010. Though Chinese manufacturers are using its Android system, many Google services such as the Play app store are not available in China.

[Editor’s Note: There were reports that Zhou Yongkang and Bo Xilai expelled Google from China as part of a deal they made with Baidu. in exchange Baidu then posted negative information about Xi Jinping and their other political rivals. Recently, Baidu has been under scrutiny from both the government and from netizens for irresponsibly selling forums and search ads.]

Source: NetEase, June 2, 2016
http://tech.163.com/16/0602/10/BOI1V19S00097U7R.html

QQ Finance: The Biggest Secret in China’s Real Estate

Tencent (QQ) Finance published an article revealing the "Biggest Secret in China’s Real Estate." It is that the companies that have recently set records for the price of land purchases are actually State-Owned Enterprises (SOEs). They are doing it just to create the illusion that the real estate market is doing well. The following is from the article.

For example, two companies, China Electric Power Construction Group and Guangzhou Fangrong Real Estate  Corporation bid 8.29 billion yuan (U.S. $1.3 billion) to win "A816-0060," a commercial and residential land development project in Longhua district, Shenzhen. The first company is clearly an SOE. After tracing the parent company of Guangzhou Fangrong several levels up, the owner of the second company was found to be China Sinochem, which is also an SOE.

The average purchase price per construction area was 56,781 yuan (U.S. $8,735) per square meter. Excluding general facilities that can’t be sold, it would be over 60,000 yuan per square meter for the sellable construction area. The land is not downtown; it is 12 km (8 miles) away from downtown. Residential buildings in this area currently sell at 50,000 – 75,000 yuan per square meter. It is hard to believe that the developers would be able to make a profit if they bid so high on the price of land.

Then, why would SOEs pay a record high amount to buy land?

The answer is simple. They are just collaborating with the local government to create the illusion that real estate prices will keep going up; they do it to cheat people.

China Times reported this practice back in 2014. "When the market is slow, the local government will ask SOEs to bid a high price for land purchases to create an artificially high market. To the government, the left hand pays the money to the right hand. There is no real gain or loss."

Another trick the government uses is to get a high bidding price but return a substantial amount of money back to the developer later. "Some companies may receive a return of nearly 50 percent of the purchase price. If the land was related to re-developing shantytown, the return might be 80 percent."

Source: Tencent, June 5, 2016
http://finance.qq.com/a/20160605/014662.htm

Comments after China’s Foreign Minister Vented His Anger at a Canadian Journalist

Wang Yi, China’s Foreign Minister, castigated a Canadian reporter at the joint news conference with Canadian Foreign Minister Stephane Dion in Ottawa on June 1. Western media and some overseas Chinese media reported on the incident.

The comments that the Chinese made were split. Some criticized the Chinese Communist Party (CCP) for suppressing human rights; some, following the Party’s propaganda, denounced the Westerners; and some pointed out Wang’s response was a result of the Party’s culture which has ruined Chinese’ lives.

Reader’s comments on a BBC report:

A post from California:
"It definitely does not sound like what a foreign minister would say. … What he said was unreasonable and illogical. What is the connection between China’s getting people out of poverty or reaching $8,000 per capita GDP and China’s human rights record? He said ‘China has incorporated protecting human rights into its Constitution.’ This only shows that the CCP’s Constitution was only for show. In their Constitution, people have freedom of the press, assembly, and protest [but in reality they don’t have any of those at all]!"

A post from London:
"Some Western media are too prejudiced. Only we Chinese know how good China’s human rights record is. Only we Chinese have the qualifications to choose what is good for our nation at its current status. Westerners, go worry about your own human rights first! Don’t put your nose into our business. Xi Jinping said it right: China should have confidence in its own system. Besides, it is OK as long as we think it is right. As to how Westerners think about it, it does not matter, nor is it worth answering. Just take [their words] as farting."

A post from Chengdu, Sichuan Province, China:
"Wang Yi’s response is a complete revelation of the CCP’s evil face. He said ‘it’s the Chinese people who most understand China’s human rights record.’ That’s right. As a Chinese, I have to say, ‘China’s human rights record is not only bad, but rather non-existent."

Epoch Times commentary:
"It is not news to see this kind of response by China’s diplomats. The most representative one was what former Communist leader Jiang Zemin said. When asked about a female college student whose participation in the June 4th democracy protest in 1989 resulted in being put in prison and raped, he answered, ‘She deserved it.’ Jiang also berated a Hong Kong reporter for being ‘too simple’ and ‘naive.’"

"Actually, the root cause for these foreign affairs scandals is the Communist Party culture."

"The Communist Party culture was a monster that the CCP created in China after destroying traditional Chinese culture. The CCP mingled the theory of evolution, atheism, Marxism and Leninism, and struggle theory together to create the Party culture. It then, via political movements and routine brainwashing, gradually implanted it into the brains of Chinese."

"Officials at all levels, despite their own personality, when in public, self-restrict themselves to speak the ‘Party language’ following the Party’s principles."

"Chinese, who have grown up under the CCP controlled environment, carry the imprints of the Party culture to a certain extent. The Party culture gave Chinese a twisted personality, such as the tendency to belittle and not respect their own selves, violence, offensiveness, rudeness, and pretense.

"After people accepted the Party language, it was hard for them to express themselves to and understand people outside of the Party culture. A typical example is the different interpretation of ‘human rights’ between Chinese and Westerners. When Westerners talk about human rights, they care for individual’s rights not being violated by the government. They are actually on the side of the Chinese people. If the Chinese people were normal people, they would express their gratitude. However, after bring immersed in the CCP’s brainwashing for such a long time, many Chinese have reacted to this issue the same as China’s Foreign Minister just did."

"The result of this is not only damaging China’s image, but also blocking Chinese from accepting outside messages with an open, calm mentality. It makes the whole Chinese nation incompatible with normal human civilization."

Below is Wang Yi’s response when he jumped in to answer a question which was asked to the Canadian Foreign Minister Dion about Canadian citizen Kevin Garratt who China had detained and about China’s human rights record.

Wang Yi: "I want to give a response to the questions that the journalist just raised concerning China. Your question was full of prejudice against China and an arrogance that comes from I don’t know where. This is totally unacceptable to me. Do you understand China? Have you been to China? Do you know that China has come from a poor and backward state and lifted more than 600 million people from poverty? Do you know that China is now the world’s second biggest economy with $8,000 per capita? If we weren’t able to protect human rights properly, would China have achieved such great development? Do you know that China has incorporated protecting human rights into its Constitution? I want to tell you that it’s the Chinese people who best understand China’s human rights record — not you, but the Chinese people themselves. You have no right to speak on this. The Chinese people have the right to speak. So please don’t raise such irresponsible questions again. China welcomes all well-meaning suggestions, but we reject all groundless accusations."

Sources:
1. BBC Chinese, June 2, 2016
http://www.bbc.com/zhongwen/simp/indepth/2016/06/160602_indepth_china_humanrights
2. Epoch Times, June 6, 2016
http://www.epochtimes.com/gb/16/6/6/n7970148.htm

Xi Jinping: China and U.S. Should Focus on Cooperation

On June 7, 2016, Xi Jinping met in Beijing with U.S. Secretary of State John Kerry and U.S. Treasury  Secretary Jacob Lew. 

According to People’s Daily, Xi recommended that “both countries should firmly continue the historical trend of Sino-US relations, focus on cooperation, do more practical things, properly handle differences, eliminate interference, and promote the healthy and stable development of Sino-US relations.” 
Xi Jinping emphasized that China and the U.S. can do a lot of things. “Both sides should do more things that are conducive to China-US cooperation; they should not do or should do fewer things that are not conducive to bilateral cooperation. As long as the two sides keep things in perspective, move in the same direction, and proactively take action, [we can] ensure that Sino-US relations move forward on the right track and build new relations between big powers.” 
Source: People’s Daily reprinted by Qiushi, June 7, 2016 
http://www.qstheory.cn/yaowen/2016-06/08/c_1119008328.htm

Global Times: U.S. Department of Commerce Issued Administrative Subpoena to Huawei

Global Times recently reported that the U.S. Department of Commerce has issued an administrative subpoena to Chinese telecommunications giant Huawei, asking for full records from the past five years on exports to Iran, Syria, Cuba, and Sudan. This was to assist in an investigation into a potential violation of the U.S. legal restrictions on telecommunications technology exports. The subpoena has been officially delivered to Huawei’s U.S. headquarter in Dallas, Texas. The investigation is to find out whether Huawei resold U.S. communications technologies to banned countries. The Department of Commerce has not charged Huawei with any wrong-doing. Global Times quoted the British Magazine The Economist and said the U.S. is playing the “national security card,” is once again tied to protectionism, and it is expressing the needs of its politicians. Another Chinese communications company ZTE was recently found guilty in a similar investigation.
Source: Global Times, June 3, 2016
http://world.huanqiu.com/exclusive/2016-06/9008429.html

BBC Chinese: On June 4th Taiwan’s Ruling and Opposition Parties Called for Democracy

BBC Chinese recently reported that Taiwan’s newly elected ruling party the Democratic Progressive Party (DPP) released a statement on June 4th suggesting people on both sides of the Taiwan Strait had nothing to fear from democracy. Although the Mainland had significant economic growth in recent years, at the same time, political and social challenges are piling up. Both the former Taiwanese president Ma Ying-jeou and the new president Tsai Ing-wen issued statements asking for the vindication of the 1989 Tiananmen Square Massacre and for the Communist Party to return more rights to the Mainland people; acts which will win true respect from the international community. Hung Shiu-chu, Chairman of the opposition party, The Kuomintang of China (KMT), also stated that the entire Chinese population on both sides of the Strait is looking forward to the common goal of freedom and liberty. June 4th is the 27th anniversary of the Tiananmen Square Massacre. 
Source: BBC Chinese, June 4, 2016
http://www.bbc.com/zhongwen/simp/china/2016/06/160604_taiwan_china_64_dpp_kmt

Caixin: May Manufacturing PMI Showed Continued Slowdown

Well-known Chinese financial site Caixin recently released its official Chinese Manufacturing PMI index number for May, which was 49.2, down 0.2 from April. Caixin PMI was formerly known as HSBC PMI, which was a well-respected economic indicator monitored globally by financial institutions. The PMI report showed that the health of China’s manufacturing sector continued to decline in May, with output and new orders both falling. At the same time, job shedding persisted across the sector, with the rate of reduction remaining close to February’s post-global financial crisis record. Weak demand conditions underpinned further falls in both purchasing activity and inventory holdings in May. The renewed fall in total new business placed with Chinese manufacturers in May is a big concern. Though fractional, it was the first reduction in new work for three months. PMI (Purchasing Managers Index) is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline. 
Source: Caixin, June 1, 2016
http://pmi.caixin.com/2016-06-01/100950089.html