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Monthly Archives: September 2015

Caixin: Li Ka-shing Responds to Commentaries on Divesting His Interests in China

On Tuesday, Hong Kong property tycoon Li Ka-shing responded publicly to those who expressed the viewpoint that he is moving his money out of China. Li said that there was no truth to these reports. He affirmed his confidence that the central government is committed to deepening reform and openness and that the mindset during the Cultural Revolution years will not revive. 

On Sept. 12, the Liaowang Institute, which is linked to the official news agency Xinhua, published an editorial, "Don’t Let Li Ka-shing Make an Exit," which expressed great displeasure over Li’s moving his money out of China. The article reminded Li that his huge wealth, as head of the Hutchison Whampoa conglomerate, had come from his connections to powerful Chinese officials, not from a level playing field in a market economy. It went on to lecture Li that "as someone who had reaped profits, [you are] not in a position to simply walk away." 

A statement that Li’s Cheung Kong Property Holdings Limited and CK Hutchison Holdings Limited released said, "Li understands that broader freedom of expression gives a voice to everyone, regrettably, even [to those who make] false accusations." The statement continued, "We did not respond earlier as the flurry of reports came at a time when President Xi Jinping was heading to the United States for a state visit. We did not want to take the spotlight off of that." 

In response to the "withdrawal" reports, the statement said, "In the past 10 years, over 70 percent of the companies listed in Hong Kong, including Chinese mainland state-owned enterprises, have chosen to register using BVI vehicles. The reason for companies to choose this method is for greater flexibility." 

The statement denied that there was any change in Li’s relationship with China’s leadership and added, "We are confident that the central government is committed to improving governance and to continuing on a path of economic reform. We do not think the mindset during the years of the Cultural Revolution will revive. Individual viewpoints in the Chinese media are not in line with China’s overall direction. Mr. Li greatly admires President Xi’s steady leadership."

Source: Caixin, September 29, 2015
http://companies.caixin.com/2015-09-29/100859580.html

Briefings | | |   Government/Politics

VOA: Chinese Petitioners Stopped Xi’s Motorcade Outside Department of State

On September 25, 2015, petitioners from Beijing, Shanghai, and two central provinces, Hunan and Hubei, among other regions of China, briefly stopped Xi Jinping’s motorcade when Xi and his wife were heading toward the Department of State for lunch during Xi’s state visit to Washington. 

At around 1:10 p.m., Xi’s motorcade was passing through the intersection of 18th St NW and E St NW. Several Chinese petitioners rushed toward and stopped two stretch Cadillacs. It was reported that Ms. Li Huanjun, from Beijing and Ms. Ge Lifang, from Shanghai, stopped the second Cadillac. From within, Xi looked squarely into the eyes of one of the petitioners for several seconds. The police rushed over and took the petitioners off the street and released them. Then Xi’s motorcade proceeded toward the State Department. Later, Xi sent someone from his entourage to chat with the petitioners and to take their complaint letters. 
Source: Voice of America, September 25, 2015 
Briefings | | |   US-China Relations

People’s Daily: China Opposes Tsai Ing-wen’s Visit to Japan

People’s Daily recently reported that Hong Lie, the spokesperson for the Chinese Ministry of Foreign Affairs, commented in a press conference on Taiwan’s Democratic Progressive Party’s chairwoman Tsai Ing-wen’s planned visit to Japan. Hong communicated that the Chinese government is seriously concerned and strongly opposes Tsai’s visit. He also called for Japan to stick to the “One China” principle. Hong asked the Japanese government to keep its promise of not providing anybody, using any excuse, room to spread the idea of an independent Taiwan. Tsai Ing-wen is currently running for President of the Republic of China in Taiwan. She was appointed Vice Premier under Premier Su Tseng-chang, who served until 2007.
Source: People’s Daily, September 25, 2015
Briefings | | |   Geo-Strategic Trend

Global Times: President of the Philippines Laughed at China’s South China Sea Policies

Global Times recently reported that, during a TV interview, the Philippine President Aquino III publicly “laughed at” the Chinese South China Sea policies. Aquino commented that China proposed a “joint development” plan for the South China Sea resources while claiming sovereignty to all strategic regions. He called this “they are mine but we’ll share with you” plan “a joke.” In the interview, Aquino also refused one-on-one negotiations. He indicated that all other parties with sovereignty claims, such as Vietnam, should be present at the negotiations. In the meantime, Aquino highly praised the new national security bill Japan passed recently and reaffirmed the strategic partnership between Japan and the Philippines. Chinese analysts thought that China invited all parties to the joint-development plan with an open heart. However, the Philippines has been trying to further complicate the situation by refusing one-on-one negotiations. 
Source: Global Times, September 24, 2015
Briefings | | |   Geo-Strategic Trend

Xinhua: China Introduces Market Access Negative List System

Xinhua recently reported that the Chinese central government will introduce a negative list based market access management system. The negative list will be approved by the State Council and will clearly state prohibited or restricted industries, business fields, and markets for investments in China. All markets outside the negative list will have equal permission of entry for all parties. The design of the negative list considers basic principles such as the rule of law, national security, the progressive approach, the doctrine of necessity and the doctrine of publicity. The list is fully controlled at the central government level. Provincial governments may request adjustments but cannot maintain any such list of their own. Lower level governments are not allowed to manipulate the list. The new market access system will be piloted in some regions from 2015 to 2017. National implementation of the system is planned to start in 2018.
Source: Xinhua, September 21, 2015
Briefings | | |   Economy/Resources

Minimum Wage Increased in 23 Regions

People’s Daily reported that, since the beginning of this year, at least 23 regions have raised their minimum wage. Among those cities, the monthly minimum wage in Shanghai and Shenzhen broke the 2,000 yuan (US$314) mark. While reports indicated that, in 2014, 19 regions had raised their minimum wage, the article said that the minimum wage in three provinces in Northeast of China has remained unchanged for over two years. According to the regulation published by the Ministry of Human Resources and Social Security, minimum wages need to be adjusted at least once every two years.

Source: People’s Daily, September 25, 2015
http://leaders.people.com.cn/n/2015/0925/c58278-27632080.html

Briefings | | |   Economy/Resources

Chinese Official Media Launched Propaganda Video to Show Foreigners Complimenting Xi Jinping

RFA reported that China’s official media, China Daily, published a three and half minute long video titled, "Who is Xi Dada" [in China, Xi Jinping is often called "Xi Dada" or "Big Daddy Xi"] on YouTube. The video consisted of compliments that foreign students studying in China gave to Xi Jinping. The article said that Xi’s visit to the U.S. faced many issues. Chinese authorities wished to use the video to glorify Xi’s image but the effort appears to have been in vain. The article said that, by the time RFA published the report, there were over 100,000 clicks on the video. However, the video also drew criticism and sarcasm. Some people called it the worst mentally retarded video ever. Some said that the video of Xi was published on a website that the Chinese people can’t even visit and that only People’s Daily can do things like this. RFA also quoted from the phone interviews it conducted. One comment said that the video is China’s propaganda to fool the foreigners because many protesters outside of China call Xi a dictator. Another comment said that China is concerned about Xi’s international image and that Xi has a very low acceptance rate. The article stated that the video is political propaganda but that it will not achieve the anticipated results.

Source: Radio Free Asia, September 25, 2015
http://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/yl-09252015102746.html

Briefings | | |   US-China Relations

VOA: Allowing Xi to Host Women’s Rights Meeting at the UN Brings Shame to the World

Voice of America (VOA) carried an article reporting on Xi Jinping’s joint hosting of a meeting at the United Nations on the subject of women’s rights. The article stated that, even though China continues to detain and harass women rights activists, Xi Jinping still went ahead and jointly hosted the meeting. Some human rights groups told VOA, "Allowing Xi Jinping to speak at the conference brings shame to the world." The article said that in Xi’s speech, he acknowledged that woman’s rights are human rights but he placed women’s rights after the rights for economic development. At the same time, the U.S. government launched a movement to call for the release of 20 women political activists. Three Chinese women’s rights activists were included in that number. According to the article, Samantha Power, the United States Ambassador to the United Nations, stated that the pictures of those women were placed at the entrance of the summit so that the delegates attending the summit could see them.

Source: VOA, September 27, 2015
http://www.voachinese.com/content/un-women-summit-20150927/2981423.html

Briefings | | |   Government/Politics