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RFA: Some Kind of Coup May Have Taken Place in China

On August 5, 2014, Radio Free Asia published an article titled, “Some Kind of Coup May Have Taken Place in China.” The article analyzed [what it identified as] the current abnormal situation in China, including the following. First, on-going unprecedented large scale military exercises are taking place from July to September (a portion of the exercises will continue until November). Second, a secret meeting was held at the end of July between the former Japanese Prime Minister Yasuo Fukuda and China’s current top leader Xi Jinping in Beijing in an effort to improve Sino-Japanese relations. Third, on July 29, a public announcement was made of the investigation of the former domestic security chief Zhou Yongkang. Fourth, on July 30, the Central Discipline Inspection Commission of the Chinese Communist Party sent a large investigation team to Shanghai; the team will be stationed in Shanghai until September (the same period of time that the large scale military exercises are taking place). Fifth, Shanghai Bright Food Group Chairman Wang Zong-nan, who has a close relationship with China’s former top leader Jiang Zemin, was taken away for investigation several days ago. Sixth, a large number of civilian flights were canceled in July, especially flights between Beijing and Shanghai. Seventh, in July security checks were enhanced in subways and other transportation areas in Beijing (trash cans have to be emptied every 15 minutes). Eighth, People’s Daily published a commentary article titled, "The Takedown of the Big Tiger Zhou Yongkang Does Not Mean the Anti-Corruption Campaign Has Stopped," which was then removed from its website. Finally, China’s former top leader Jiang Zemin’s inscriptions and signatures are being removed from public places, with online photos being published as evidence of the removal.

All of the above incidents indicate that some kind of coup is taking place between Beijing and Shanghai. The article concluded that the anti-Xi forces may have started the coup but failed when Xi’s forces fought back or that the Xi Jinping group launched a coup to eliminate the Jiang Zemin’s faction.

Source: Radio Free Asia, August 5, 2014
http://www.rfa.org/mandarin/pinglun/chenpokong/js-08052014120319.html

BBC Chinese: China’s Anti-Corruption û Tiger Locked in Cage; Why Worry about a Counterattack?

After Zhou Yongkang, the former standing member of the Politburo of the Chinese Communist Party (CCP) Central Committee and Secretary of the Politics and Law Committee was taken down, People’s Forum magazine, which is under one of the top Chinese government official media People’s Daily, published a series of 13 anti-corruption articles one after the other, saying that anti-corruption in China is now “transitioning from surface-oriented to root-oriented.” One of the articles pointed out that corrupt officials would not sit still and wait to be killed. “To protect their own interests, they must put up a last-ditch resistance effort and even unite together to fight back jointly.” This article was reprinted widely in China and a more striking title was used for the reprinted article, “The CCP’s Anti-Corruption – Be Alert for the Big Tigers’ Joint Counterattack.”

Source: BBC Chinese, August 5, 2014
http://www.bbc.co.uk/zhongwen/simp/china/2014/08/140805_corruption_tiger_fight_back.shtml

China News: Microsoft Investigated for Chinese Antitrust Violations

China News recently reported that the State Administration for Industry and Commerce (SAIC) confirmed that Microsoft is being investigated for antitrust violations. SAIC did a “spot check” against Microsoft branches in four major cities without any pre-notice. The case against Microsoft was based on “incomplete information disclosure” of problems in software packages like Windows and Office. The damages include compatibility issues, unlawful bundled sales, “file verification issues” and more importantly, price gouging. SAIC “suspects” Microsoft is conducting anti-competitive behavior. Many western countries have associated this investigation with the Snowden incident. However some Chinese legal experts expressed their disagreement by suggesting that SAIC was only doing its job to enforce the Chinese antitrust law. Microsoft issued a short announcement promising active cooperation with the investigation. Currently foreign vendors dominate the technologies deployed in key Chinese industries such as finance, telecommunication, energy, and civil aviation. The China News report concluded that domestic vendors will have “expanded room to compete” after this investigation concludes.
Source: China News, July 30, 2014
http://finance.chinanews.com/it/2014/07-30/6438951.shtml

Xi Jinping: Willing to Give up Personal Life to Fight Corruption

Xi Jinping recently made a statement that he is willing to fight corruption even at the cost of his personal life or personal fame. In its August 4th edition, Changbaishan Daily, a local newspaper in Changbaishan City, Jilin Province, made Xi’s statement its headline article.

Xi’s original statement, which was reported to have been given at the new round of the Chinese Communist Party’s Central Commission for Discipline Inspection’s local inspection tour, was "[We should] fight corruption. [Our] personal lives or deaths and our personal reputations or blame do not matter. Since the Party and the nation have given their future and their fate to us, we need to shoulder this responsibility."

Xi’s speech also mentioned that, currently, the battle between the corruption group and the anti-corruption group has reached a "stalemate." Wang Qishan stated that the anti-corruption situation is "still severe and complicated." He also stressed that the battle is a critical political issue in which officials need to decide which side to take.

Several media in China republished the article. However, in the U.S., as of the morning of August 5, they were no longer available. Searching Xi’s Chinese words "与腐败作斗争,个人生死,个人毁誉,无所谓" on Google resulted in several broken links. The article is no longer viewable on the Changbaishan Daily website either.

Source: Unavailable on web. Chinascope has a copy of the republished article from one website.
http://www.rfa.org/mandarin/yataibaodao/zhengzhi/sd-08052014132939.html

People’s Daily: CCDI Established New International Bureau

People’s Daily recently reported that the Chinese Communist Party’s Central Discipline Inspection Commission (CCDI) established a new unit called the International Cooperation Bureau. The key mission of the new Bureau is to pursue stolen money and escaped law-breaking former officials overseas. Over the years, a large number of corrupt officials successfully fled China and transferred a massive amount of money overseas. The new Bureau is to take advantage of the latest developments in the international banking industry to investigate and track down the criminals’ financial chains by working with foreign authorities and banks. This is a major organizational change for the CCDI, which is a Communist Party branch with a newly added function to conduct investigations in legal cases.
Source: People’s Daily, July 28, 2014
http://politics.people.com.cn/n/2014/0728/c70731-25356331.html

People’s Daily: Thailand Resumed Railway Project Connecting China

People’s Daily recently reported that the military government that is currently in-charge in Thailand just approved the resumption of the project to build two high-speed railways connecting Southern China. The project had been halted earlier due to political uncertainties and the Thailand Constitutional Court ruled in March that the entire infrastructure building project was unconstitutional. The new government started reviewing the railway project in May after taking over day-to-day government operations. According to the budget plan, the project is worth around US$23.2 billion. The construction is planned to begin next year. The resumed project plan, however, adjusted the target operating speed from 200 kilometers per hour down to 160. The government is still looking for ideas to bring the cost down further. 
Source: People’s Daily, July 31, 2014
http://world.people.com.cn/n/2014/0731/c1002-25379272.html

Seventy Percent of Coal Mining Companies Are in the Red

The level of the inventory in China’s coal mining industry reached a record high in the first half of 2014 in spite of measures to reduce the price and to restructure production. Seventy percent of these companies are in the red.

Recently, the largest 14 coal mining companies agreed on four measures. They agreed that, for the second half of 2014, they would reduce the output of their production by 10 percent; they would reduce the June level of their inventory by 50 percent; they would regulate and standardize coal imports and they would establish a self-regulatory mechanism within the coal mining industry. 
According to the statistics that the China Coal Industry Association released on July 12, 2014, as of the end of June 2014, China’s coal inventory had reached 99 million metric tons. Nine provinces had experienced industry wide losses in coal mining. Twenty out of 36 of the largest coal mining companies are in the red. Nine of those are on the brink of bankruptcy. Seventy percent of the coal mining companies in China are in the red. 
Sources: 
Securities Daily reprinted by People’s Daily, July 29, 2014 http://energy.people.com.cn/n/2014/0729/c71661-25361362.html 
Economic Information Daily, July 28, 2014 
http://news.xinhuanet.com/fortune/2014-07/28/c_126803768.htm

State Media Link Jiang Zemin with Zhou Yongkang and Bo Xilai

The People’s Daily website published a series of pictures with texts under each of them titled, “Charts: The Mysterious Petroleum Billionaire behind Zhou Yongkang.” 


The charts show that Zhou, the former Minister of Petroleum, has tightly controlled the petroleum industry through extensive and close connections both in and outside of the government. Most of these connections have been prosecuted or placed under investigation.  

The final chart shows the personal profile and rise of Zhou identifying him as part of petrochemical fraction and as someone who “knows Jiang Zemin and Bo Xilai well.” On July 29, Xinhua announced that Zhou was placed under investigation for "serious disciplinary violations.” On September 22, 2013, Bo was found guilty of corruption, stripped of all his assets, and sentenced to life imprisonment. 

The charts are no longer available on the People’s Daily website, although the title remained. 

Source: People’s Daily reprinted by Tencent Financial, July 31, 2014
http://energy.people.com.cn/n/2014/0731/c71661-25379629-5.html (See title of the article listed) http://xw.qq.com/c/finance/20140731076721