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New Rules to Battle Local Government Debts

On October 28, China’s Ministry of Finance issued the first of a series of directives on handing outstanding local government debt. 

According to the directive issued, local government debt outstanding as of December 31 must be categorized so that appropriate authorities will be assigned to take responsibility. The effort is meant to identify local debts with the ultimate goal being to include all government debts into budgets. Some debts may be converted into corporate debts through public-private partnerships (PPP). 
Analysts observed that the issuance of the directive indicated that China has entered the peak of debt repayments and many local governments face pressure to repay large debts that are due. The PPP model that the directive promotes, in fact, will allow the use of private funds to lessen the enormous pressure on local governments. 

Source: Economic Information Daily reprinted by People’s Daily, October 29, 2014
http://gd.people.com.cn/n/2014/1029/c123932-22752301.html

Xinhua Summarizes the CCP’s Decision on the Rule of Law

The Fourth Plenary Session of the 18th Central Committee of the Chinese Communist Party (CCP) passed the "CCP Central Committee Decision Concerning Some Major Issues on Comprehensively Advancing the Rule of Law (中共中央关于全面推进依法治国若干重大问题的决定)." Xinhua published an article listing 25 items to highlight the major points in the "Decision." A few points worth noting are:

12. Establish a mechanism to hold the decision maker accountable throughout his whole life [Editor’s Note: Implying even after retirement] for the major decisions he has made. Hold the administrative executive, other responsible leaders, and the related people who are legally responsible strictly accountable for decisions which involved a major mistake or which should have been adjusted promptly but were not and thus caused major damage or had a negative impact.

24. [China should] adhere to [the leadership of] the CCP’s Political and Legal Affairs Committee over the long-term. [Editor’s Note: It was Xi Jinping who took down Zhou Yongkang, the previous head of the Political and Legal Affairs Committee.]

25. The Party’s regulations and the Party’s discipline should be stricter than the country’s law. Party organizations and members at all levels should not only obey the law of the nation, but also follow the Party’s regulations and the Party’s discipline.

Source: Xinhua, October 28, 2014
http://news.xinhuanet.com/video/2014-10/28/c_127151833.htm

BBC Chinese: The UN Expressed Dissatisfaction with China’s Small Donation to Ebola Control

The United Nations criticized the Chinese government and Chinese billionaires for not giving enough financial support to control the spread of Ebola. China is a major investor in Africa. So far, China has only donated US$8.3 million while the UK has donated US$18.8 million and the U.S. government has donated US$200 million.

Source: BBC Chinese, October 22, 2014

http://www.bbc.co.uk/zhongwen/simp/press_review/2014/10/141022_press_un_china

Xinhua: Former Top General Xu Caihou’s Alleged Bribery Case Transferred over for Prosecution

On October 28, 2014, Xinhua published a short news release titled, “Xu Caihou’s Case of Alleged Bribery Transferred for Prosecution.” According to Xinhua, the Chinese People’s Liberation Army Military Procuratorate has officially completed its investigation into Xu’s bribery case and will transfer his case over to process for regular prosecution (lawsuit). Xu confessed that he had taken “particularly huge bribes,” directly or through family members in exchange fot helping others gain job promotions and other personal interests. Xu Caihou is a former member of the Politburo of the Communist Party of China, Vice Chairman of the Central Military Commission (CMC) and General of the Chinese People’s Liberation Army. His military position was just below the former top CCP chairman, Jiang Zemin, who was the CMC chairman.

Source: Xinhua, October 28, 2014
http://news.xinhuanet.com/politics/2014-10/28/c_1113015334.htm

The U.S. Again not Satisfied with China’s RMB Exchange Rate

Well-known Chinese news site Sina recently reported that the United States government once again expressed to China that it was dissatisfied with the Chinese currency exchange rate, saying the RMB to U.S. Dollar exchange rate was lowered artificially. In a recent meeting in Beijing, the U.S. Deputy Treasury Secretary Sarah Bloom Raskin asked the Chinese Finance Minister Lo Jiwei and the Chinese Central Bank Governor Zhou Xiaochuan to have the market determine the RMB exchange rate. The Chinese government tightly controls the RMB exchange rate. Every morning the Chinese central bank sets the central parity of the RMB against the U.S. dollar. However some analysts suggested that China’s purpose in artificially pushing down the Chinese currency is to raise the bar for speculators, not to use it as a weapon in trade.
Source: Sina, October 22, 2014
http://finance.sina.cn/?sa=t74d13992368v39&pos=108&vt=4

BBC Chinese: UN Human Rights Committee Called for Universal Suffrage in HK

BBC Chinese recently reported that the United Nations Human Rights Committee officially called for the protection of universal suffrage in Hong Kong’s political system. The committee has a working group that includes 18 independent experts who monitor the implementation of the International Covenant on Civil and Political Rights, which Hong Kong signed. All 18 members agreed to the Committee’s position. The UN Committee expressed the belief that it is crucial to protect universal suffrage, especially for the right to vote and the right to establish candidacy. Over the past month, tens of thousands of Hong Kong residents took to the streets to protest Beijing allowing only yes-men to become candidates for the head of the Hong Kong government. A member of the working group, French judge Christine Chanet, said that the Committee does not want to see a filtering mechanism for candidacy. China signed the International Covenant on Civil and Political Rights in 1998 as well. 
Source: BBC Chinese, October 23, 2014
http://www.bbc.co.uk/zhongwen/simp/china/2014/10/141023_un_human_rights_hk

Venezuela Will Breach Its Agreement with China

Well-known Chinese news site Netease recently reported that Venezuela, a long-term Chinese friend, seems to be planning to breach its oil supply contracts with China. Venezuela has been breaching its supply contracts with many oil service providers. China has been providing loans to Venezuela for a long time. Since 2006, the total amount has reached US$50 billion, which is half of China’s loans to Latin America. Currently Venezuela is exporting 330,000 barrels to China every day. However national newspapers in Venezuela have reported that the country doesn’t need to continue those exports any more. The Chinese Ministry of Commerce later confirmed the claim and added that the decision was made based on a request from Venezuela. The loans were apparently extended, but there has been no clear indication of what the new arrangement is. Venezuela is currently going through a major challenge in the lack of foreign exchange reserves. The situation is causing difficulties even in toilet paper supplies. The money saved by not paying back loans will help ease the painful need for cash.
Source: Netease, October 24, 2014
http://money.163.com/api/14/1024/08/A9AD8R8000254TFQ.html?frp091

Central Network Information Office to Implement Legal Measures on Internet Management

Xinhua reported that, in order to follow up on a proposal at the Party’s fourth Plenary Session of the 18th Party Congress to “advance the rule of law,” the Central Network Information Office held a meeting on October 26. The meeting participants studied the key messages from the fourth Plenary Session and discussed the opportunities to further implement legal measures on Internet management. According to the Central Network Information Office, the information offices at the local levels often face obstacles due to an absence of laws on Internet management.

Source: Xinhua, October 26, 2014
http://news.xinhuanet.com/politics/2014-10/26/c_1112981005.htm