Chinascope – Page 666

SASAC Notice: SOEs Losing Money to Reduce Financial Losses by 50 Percent over Next Three Years

According to China Review News, State Owned Enterprises (SOEs) were first given the direction to “increase revenue and reduce spending.” Then recently, the State-owned Assets Supervision and Administration Commission (SASAC) issued another notice urging SOEs that are losing money to reduce their financial losses by 50 percent over the next three years. The article said that, in order to reach the target, in addition to increasing revenue and reducing spending, the SOEs will need to improve their internal controls and speed up the reform and reorganization process, especially regarding the control of SOE asset loss.

Source: China Review News, July 8, 2015
http://hk.crntt.com/doc/1038/3/4/0/103834024.html?coluid=45&kindid=0&docid=103834024&mdate=0708103814

Briefings | | July 13, 2015 | Economy/Resources

China’s June PPI Down 4.8 Percent Year on Year

According to the latest release from the National Bureau of Statistics on July 9, China’s producer prices continued to fall in June, indicating a prolonged weakness in demand.

In June, China’s Producer Price Index (PPI), which measures the average change in the price of goods and services sold by manufacturers and producers in the wholesale market, fell 4.8 percent year on year, compared to the 4.6 percent drop in May. Month on month, the producer price index in June went down 0.4 percent. The drop in June marks the 40th consecutive month of the decline of the index and represents the sharpest drop since 2009.

For the 4.8 percent PPI drop, prices of production materials fell 6.2 percent in June, contributing 4.7 percentage points to the PPI drop during the month. Prices of consumer goods were down 0.2 percent.

Source: National Bureau of Statistics, July 9, 2015 http://www.stats.gov.cn/tjsj/zxfb/201507/t20150709_1211569.html

Briefings | | July 10, 2015 | Economy/Resources

Jiang Zemin and Zeng Qinghong Tried to Set up Road Blocks to Xi Jinping’s Anti-Corruption Campaign

On July 4, 2015, China Gate, a Chinese website headquartered in the U.S., republished an article from Cheng Ming Monthly magazine in Hong Kong (original article is not available online) on the internal fight between factions within the Chinese Communist Party (CCP).

The article stated that former CCP top leader Jiang Zemin and his right-hand Zeng Qinghong have become the next biggest targets of Xi Jinping’s anti-corruption campaign, following the downfall of Zhou Yongkang, which broke the unspoken rule that there would be "no legal punishment of any Politburo Standing Committee member."

In order to save himself from being investigated, Zeng Qinghong tried to set up other CCP senior leaders as anti-corruption targets. This included the families of Li Peng and Chen Yun, both of whom were powerful political figures in the past. Zeng hoped that these families would be too big for Xi Jinping to take on and this would stop Xi’s anti-corruption campaign.

However, Zeng’s strategy didn’t work. Chen Yun’s family used to be close to Jiang Zemin, but this time, the family chose to side with Xi Jinping. Chen Yun’s son Chen Yuan supported Xi’s corruption investigation against two Vice Chairmen of the National People’s Congress. Chen Yun’s daughter Chen Weili made a high-profile statement, "We all support Xi Jinping’s anti-corruption campaign."

Source: China Gate, July 4, 2015
http://www.wenxuecity.com/news/2015/07/04/4392092.html

Briefings | | July 10, 2015 | Government/Politics

Xi Jinping Acknowledged the Party’s Corruption Could Lead to Its Downfall

On July 2-3, 2015, several overseas Chinese websites republished an article from Cheng Ming Monthly magazine in Hong Kong (the original article is not available online) on the possible collapse of the Chinese Communist Party (CCP).

According to the article, the Party is so corrupt that it is on the verge of disintegration. Even top Party leaders do not avoid the topic of the "death of the Party."

In the middle of June 2015, the CCP Politburo Standing Committee held a two-day expanded meeting, discussing major political, economic, and other crises that the Party is facing. In addition to the Politburo Standing Committee members, Secretaries of the Secretariat of the CCP Central Committee, the State Councilors, Party Committee members of the National People’s Congress and the People’s Political Consultative Conference, Central Military Commission members, and Deputy Secretaries of the Central Commission for Discipline Inspection (CCDI) attended the meeting.

At the meeting, Xi Jinping said in his speech, "We must have the courage to face, acknowledge, and accept the harsh reality that the Party has become so corrupt and degenerated so much that it could cause the crisis of the Party’s downfall."

An investigative research report on the Party’s development and on Party cadres was distributed at the meeting. The report listed six crises, in the areas of politics, the economy, society, faith, and the future, that could lead to the Party’ death. The investigation showed that only 25 percent of senior officials in the CCP Central Committees and local governments have passed the CCDI’s review; 90 percent of Party committees at grass-roots levels or county levels have failed their performance review and need to be "reorganized."

Source: China Gate, July 2, 2015
http://www.wenxuecity.com/news/2015/07/02/4387525.html
http://www.boxun.com/news/gb/china/2015/07/201507031039.shtml#.VZ08O2dmK3M
http://www.iask.ca/news/china/2015/07/337621.html

Briefings | | July 10, 2015 | Government/Politics

China’s Draft Cybersecurity Law Allows Cutting Off Area-wide Internet Access

China’s recently proposed draft cybersecurity law makes it clear that the national Internet information authorities should perform the duties of supervision and management of network security. Once a publication or transmission of information that is prohibited by laws and regulations occurs, the authorities must demand the service provider to stop the transmission network operator, take measures to eliminate the information, and save the relevant records. When the above mentioned information comes from abroad, the authorities must notify the relevant agencies to take technical and other necessary measures to block the dissemination of the information.

The Draft emphasizes real name registration, requiring that Internet service providers should require the users to submit real identity information at the time of signing an agreement or confirmation or service. If the user does not submit real identity information, the service provider is not allowed to provide the related services. Any service provider who does not require users to submit real identity information, or who provides service to users who have not submitted their real identity is subject to a fine between 50,000 yuan (US$8,053) and 500,000 yuan (US$80,530). That provider may also be ordered to suspend all relevant business, stop or close operations, or have its relevant business license revoked.

The Draft classifies the websites or online systems that have a large number of users into the category of critical information infrastructure. It requires that the operator of the critical information infrastructure should collect and store important data such as citizen’s personal information within its borders. Any operator that stores Internet based data overseas, or provides data to overseas organizations or individuals without security assessments is subject to a fine between 50,000 yuan (US$8,053) and 500,000 yuan (US$80,530). It may also be ordered to suspend all relevant business, stop or close its operation, or have its relevant business license revoked. Executives directly responsible and other personnel directly responsible are subject to a fine between 10,000 yuan (US$1,611) and 100,000 yuan (US$16,110).

The Draft makes provisions for Internet security monitoring and an early warning and emergency response system. It requires that, when an Internet security incident occurs, the authorities at government offices above the county level should immediately start the network security emergency response plan and release the public-related warnings and relevant information. The Draft makes provision for Internet control: "For safeguarding national security and maintaining public order, out of the need to deal with major emergency social safety incidents, the State Council or provincial governments under the approval of the State Council can adopt temporary measures including limiting Internet communications in some areas."

Source: People’s Daily Online, July 9, 2015

http://it.people.com.cn/n/2015/0709/c1009-27275737.html

Briefings | | July 9, 2015 | Information/Technology

China IPOs Blocked in the Near-Term

Late on July 4, the Shanghai and Shenzhen exchanges announced that 28 planned IPOs of “A Shares” will be delayed, 10 at Shanghai Stock Exchange and 18 at Shenzhen Stock Exchange. On July 3, China Securities Regulatory Commission expressed that, in light of the recent market situation, there would be no new IPOs in the near-term and the number and volume of deals down the line would be greatly reduced.

This is the ninth "A Share" IPO delay in history. The previous delays were as follows:

1. July 21 to December 7, 1994

2. January 19 to June 9, 1995

3. July 5, 1995, to January 3, 1996

4. July 31 to November 2, 2001

5. August 26, 2004, to January 23, 2005

6. May 25, 2005, to June 2, 2006

7. September 16, 2008, to July 10, 2009

8. November 16, 2012, to December 30, 2013

China’s A shares are generally only available for purchase by mainland citizens; investment from outside mainland China is restricted to select foreign institutions or under mutual market access arrangements between the Shanghai Stock Exchange and the Hong Kong Stock Exchange, subject to aggregate and daily quotas.

Source: The Beijing News, July 5, 2015

http://epaper.bjnews.com.cn/html/2015-07/05/content_585764.htm

Briefings | | July 8, 2015 | Economy/Resources

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

The CCP’s Performing Arts Troupes in the U.S.