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Hong Kong Media on Anti-Corruption in Shanghai; Jiang Zemin’s Nephew in Trouble

On April 20, 2015, Boxun republished a news article from The Trend Magazine in Hong Kong on the current intense anti-corruption campaign in Shanghai, where former top leader Jiang Zemin has been for many years (the original article cannot be found online). Several high ranking political officials and business executives are already under investigations. Wang Qishan, Secretary of the Chinese Communist Party Central Commission for Discipline Inspection (CCDI), said that they “cannot afford to lose” in the anti-corruption effort and “vowed to break through Shanghai.” The Central Commission for Discipline Inspection is now investigating the Shanghai Politics and Law system.

Many serious corruption cases involved the Shanghai Politics and Law Committee. Most of these cases happened when Wu Zhiming, Jiang Zemin’s nephew, was in charge. Wu was the former Party Secretary of the Shanghai Politics and Law Committee and is the current chairman of the Shanghai Chinese People’s Political Consultative Conference (CPPCC). “What Wu Zhiming faces is far from a soft landing as outsiders have speculated.”

Source: Boxun, April 20, 2015
http://www.boxun.com/news/gb/china/2015/04/201504201500.shtml#.VTfMrWfYq3M

Qiushi: How Should China’s SOEs Deal With the Competitive Neutrality Rule?

"The Western countries have been on high alert about China’s State-Owned-Enterprises (SOEs). The U.S. and other countries have been promoting the ‘Competitive Neutrality’ rule in bi-lateral and multi-lateral trade treaties and have tried to adopt it in the TPP negotiations. [Editor’s note: Competitive neutrality is the recognition that significant government business activities which are in competition with the private sector should not have a competitive advantage or disadvantage simply by virtue of government ownership and control.] Qiushi article stated that, whether or not China joins the TPP negotiations, the ‘Competitive Neutrality’ rule will create challenges for China’s SOEs to carry out the ‘Going Abroad’ strategy."

The article suggested the following solutions to enable China’s SOEs to deal with this restriction:

1. Let the SOEs experiment with competition involving this principle (without the government’s subsidies and backing) in China’s Free Trade Zone (e.g. Shanghai) to gain experience.

2. Expedite "Going Abroad" activities. SOEs should take advantage of China’s "One Belt, One Road" strategy and other economic collaboration plans with Asian and African countries. This will enable them tom expand overseas quickly before the "Competitive Neutrality" term becomes a global rule.

3. Compete for international discourse power. Actively seek to control the discourse power and the right to define terms. Try to narrow the applicability of the "Competitive Neutrality" rule, reduce [other countries’ imposed] restrictions on China’s SOEs, request a longer grace period [for the government to stop supporting them], and tie the applicability of the "Competitive Neutrality" rule to match the economic development level of the emerging economies.

Source: Qiushi Online, April 19, 2015
http://www.qstheory.cn/tjyd/2015-04/19/c_1115015135.htm

Hired Armed Police Officers Attempted to Assassinate Wang Qishan

On April 20, 2015, Boxun republished a news article from The Trend Magazine in Hong Kong on recent attempted assassinations against Wang Qishan, Secretary of the Chinese Communist Party Central Commission for Discipline Inspection (CCDI). The original article in The Trend Magazine is not available online.

From the beginning of 2015, Wang has narrowly escaped assignations in Shanxi, Tianjin, Henan, and other places. In the assassination attempt in Shanxi, two killers were former provincial armed police officers who had been expelled from their positions. Both of them committed suicide after biting their poisonous collars. Since 2013, Wang Qishan has suffered assassination attempts over 12 times.

Source: Boxun, April 20, 2015
http://www.boxun.com/news/gb/china/2015/04/201504200306.shtml#.VTfgO2fYq3M

Global Times: Russian Media Discussed Defense Procurement from China

Global Times recently referred to Russian media reports that discussed buying naval equipment from China, especially given the situation that the French delivery on Russian naval orders are being questioned. The Russian reports indicated that the Russian naval capabilities are currently weak in the Far East seas. Russia lacks anti-submarine and escort capabilities on the surface. The Russian shipbuilding industry suffered deeply after the Ukraine crisis, since Ukraine withdrew all its operational support. Russia should look to China to seek cooperation, especially in the field of building surface vessels. A strong Far East Russian fleet may benefit China in balancing the US-Japan partnership. The Chinese 054A Frigate may be the right choice for Russia not only because of its advanced configurations and performance, but also because of the deep Russian involvement in its original design. The Russian media called for procuring eight to twelve 054A Frigates for the Russian Pacific Fleet.
Source: Global Times, April 17, 2015
http://mil.huanqiu.com/observation/2015-04/6214105.html

China News: China’s Response to India’s UN Plan

China News recently reported that Hong Lei, the spokesperson for the Chinese Ministry of Foreign Affairs, commented at a press conference that China supports the reform of the UN Security Council and the idea of an ncreased representation of developing countries. Not long ago, Indian Prime Minister Modi stated that India has the right to be a Security Council permanent member due to the significant contributions India has made to the UN’s world peace mission. He mentioned that China did not demonstrate its support for this claim. Hong commented that China recognizes India’s importance and understands India’s willingness to make more contributions; however, the UN Security Council reform must consider many factors. These may touch on the key interests of a large number of member countries. China called for a wide and democratic discussion to seek global agreements. Hong also expressed the belief that the UN has many other reforms on its agenda, in addition to the reform of the Security Council.
Source: China News, April 13, 2015
http://www.chinanews.com/gn/2015/04-13/7204416.shtml

China’s Trade Surplus Declined to $3 Billion in March

Well-known Chinese news site Netease reported that the General Administration of Customs held a press conference recently. According to the announcement that it made, China’s trade surplus suffered a sharp decline to US$3.08 billion in March, while the expected surplus was US$40.1 billion. The same number in February was US$60.62 billion. Month-over-month, March imports declined 15 percent, while March exports declined 12.7 percent. In the first quarter of this year, China’s total import/export volume declined six percent year-over-year. According to the spokesperson of the General Administration of Customs, the world economy is still in a “deep recovery period,” following the global financial crisis. China has entered the mode of the “New Norm.” Its international trade volume has been declining, but the quality and the efficiency of the trade has seen improvements. The second quarter situation now faces uncertainty. After the announcements, the onshore Chinese currency RMB dropped sharply against the U.S. Dollar.
Source: Netease, April 13, 2015
http://fa.163.com/zx/cj/15/0413/10/AN2U6TIO00754KOA.html

People’s Daily: Market Penetration Rate for Mobile Users Reached 94.6 Percent

People’s Daily reported that, according to the statistics that the Ministry of Industry and Information Technology recently released, by the end of March, the number of mobile users in China was close to 1.3 billion with a market penetration rate at 94.6 percent. Meanwhile the number of broadband users had reached 640 million. In the month of March alone, the number of 4G broadband users went up by 23 million and reached 162 million. The statistics also suggested that total mobile Internet users surpassed 899 million in the first three month of 2015, up by 5.7 percent compared with the same period in 2014.

Source: People’s Daily, April 20, 2015
http://it.people.com.cn/n/2015/0420/c1009-26869500.html

People’s Daily: Real Estate Registration Process Faces Serious Delays from the Local Government

People’s Daily reported that, last December, the State Council issued provisional regulations on real estate registration. Local cities and counties were to launch the regulations but have been seriously behind in doing so. Therefore, the Ministry of Land and Resources and the State Commission Office for Public Sector Reform recently issued another round of directions targeting the delays. The article quoted a representative from the Ministry of Land and Resources who stated that, out of over 300 cities and 2800 counties in China, only 16 percent of the cities and 4 percent of the counties had formed a designated department to handle the real estate registration process in their area. According to the representative, the delays have seriously hindered the progress of the real estate registration process.

According to Xinhua, the State Council, China’s Cabinet, issued the provisional regulations on real estate registration. The regulations provided that all governments above the county level shall designate special departments for registration in their areas, which would then follow instructions from higher governments. The regulations will cover collective ownership of land, ownership of buildings and forests, contracted land management rights, and rights to the use of land for construction, homesteads, and maritime areas.

Sources: 

People’s Daily, April 19, 2015 

http://politics.people.com.cn/n/2015/0419/c1001-26868660.html
Xinhua, December 22, 2014 
http://news.xinhuanet.com/english/china/2014-12/22/c_133870891.htm