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Monthly Archives: June 2017

Huanqiu Commentary: “Indian Troops’ Provocation in the Wrong Place Brings Disgrace to Themselves”

On June 27, 2017, China’s state-run Global Times website, called Huanqiu in Chinese, published a commentary titled “Indian Troops’ Provocation in the Wrong Place Brings Disgrace to Themselves.”

China accused Indian troops of “trespassing” its boundary and entering Chinese territory. Chinese and Indian soldiers are locked in a face-off at the Sikkim section of the China-India border, where, according to the Huanqiu commentary, no disputes have ever occurred between them.

The commentary stated, “It remains unclear whether this flare-up is the fault of low-level Indian troops, which chose a wrong place to declare ‘patriotism’ or a tentative strategic move that the Indian government made. Whatever the motive, China must stick to its bottom line. China must use all means necessary to force the Indian troops to retreat to the Indian side and China’s road construction mustn’t be stopped.”

“What we are concerned about is that Indian’s attitude toward China has become more arrogant. With its GDP rising to fifth in the world, its national confidence is growing. The fact that the U.S. and the West are willing to woo India to counterbalance China has particularly added to Indians’ sense of strategic superiority. … India shows an inexplicable arrogance toward China as if it holds the strategic dominance in Sino-Indian relations.”

“Some Indians believe that the US and Japan are building a circle to contain China and India has an advantage over China because it can choose whether to join this circle.”

“It’s not time for India to display arrogance toward China. India’s GDP is only one-quarter of China’s and its annual defense budget is just one-third. Having a friendly relationship and cautiously handling border issues with China is its best choice.”

“However, almost all friction is fed to the Indian media by the Indian military which hypes {things up} time and again.”

Global Times continued, “China has avoided making an issue of these border disputes, which has indulged India’s unruly provocations. This time the Indian side needs to be taught the rules. … Let the Indian troops lose face openly. Let them know that they have to pay the price if they break the border agreement.”

“India cannot afford a showdown with China on border issues. It lags far behind China in terms of national strength and the so-called strategic support for it from the U.S. is superficial,” the commentary said, adding that China has no desire to confront India.

{Editor’s note: Zachary Keck, former editor of the National Interest, wrote a recent article focusing on a different point of view}

Sources:
1) Huanqiu, June 27, 2017
http://opinion.huanqiu.com/editorial/2017-06/10905174.html
2.) National Interest: China’s Secret Landgrab (No, Not in the South China Sea)
http://nationalinterest.org/blog/the-buzz/chinas-secret-landgrab-no-not-the-south-china-sea-21296?page=show

China’s Newly Formed Central Military and Civil Integration Development Committee

On June 20, the Chinese Communist Party (CCP) Central Committee Secretary Xi Jinping hosted the first plenary meeting of Central Military and Civil Integration Development Committee. The mysterious Development Committee was established on January 22, 2017. It is the CCP’s high-level decision-making and coordination body for major issues of military and civilian integration and development. It is directly under the control of the CCP Politburo and Politburo Standing Committee. Xi Jinping heads the committee himself.

According to ifeng.com, military and civilian integration has the purpose of ensuring a powerful military nation. On the other hand, military and civilian integration also means reform, which will touch the interests of some people in the military enterprises. Therefore, military and civilian integration will face resistance from different groups having vested interests.

Source: Ifeng.com, June 23, 2017
http://news.ifeng.com/a/20170123/50618598_0.shtml

Russian Customs Announced China as the Main Source of Synthetic Drugs

Radio Free Asia reported on news that Russia’s “63 news network” published on June 26. According to Russian Samara Customs, since the beginning of 2017, 4.5 kilograms of drugs and strong psychotropic drugs had been seized in the Samaritan area. Of the synthetic drugs that had been seized, more than 90 percent came from China.

The Russian media report also revealed that many of the drugs from China had been sent through the mail and through other hidden means in order to avoid a customs inspection. Alexander Maximovich, head of the anti-drug department of Samara Customs, said that the Chinese hid narcotics in vegetable oil or in a variety of buns and dumplings, in semi-finished packages, and in packs of different kinds of soup materials, all of which were sent through the mail.”

Source: RFA, June 26, 2017
http://www.rfa.org/mandarin/yataibaodao/junshiwaijiao/lxy1-06262017100059.html

Oriental Daily: “Wu Xiaohui Is Finally under Investigation; Who Is the Anti-Corruption Sword Pursuing?”

On June 16, 2017, Oriental Daily, a Chinese language newspaper in Hong Kong published an article titled, “Wu Xiaohui Is Finally under Investigation; Who Is the Anti-Corruption Sword Pursuing?” Wu Xiaohui, chairman of the Anbang Insurance Group in China, is the grandson-in-law of Deng Xiaoping, the second-generation top leader of the Chinese Communist Party (CCP). When Anbang was established, in the early stages, its original shareholders were state-owned enterprises in Shanghai including SAIC Motor Corporation Limited (Shanghai Automotive Industry Corporation). All of these enterprises are related to the families of Jiang Zemin, the former top CCP leader after Deng Xiaoping.

Wu Xiaohui became wealthy very quickly due to support from these state-owned enterprises. When Anbang did not make much money, those state-owned enterprises stayed with Anbang; but when Anbang entered the rapid development and profit cycle, the state-owned enterprises withdrew from Anbang. They took a low premium and stopped enjoying the big dividends as Anbang grew.

Many state-owned enterprises play a role as stepping stones for the elite families. State-owned enterprises set up a platform first, if the platform makes money, the state-owned enterprises will find an excuse to withdraw and will transfer their interest to the elites or their agents; if the platform loses money, the losses belong to the nation, and it has nothing to do with the elites.

Oriental Daily suggested that, when the authorities were investigating Anbang, it looked better to investigate all of the similar companies together.

In addition, it is questionable why Anbang has gone crazy making acquisitions overseas. Where did the funds for these mergers and acquisitions come from? Why did Anbang go overseas to make acquisitions? With the arrival of the big data period, if the cash cannot be circulated, the elites’ cash may soon turn into waste paper. However, the amount is so large that an ordinary company simply cannot accommodate it, so they use an insurance company to circulate the cash. Overseas acquisitions provide a good opportunity for the elites to get money out of China. By laundering money, they turn black or grey money into white money through acquisitions. When Anbang purchased the Waldorf Astoria and other well-known hotels, some people suspected that this was money laundering.

Source: Oriental Daily, June 16, 2017
http://orientaldaily.on.cc/cnt/china_world/20170616/mobile/odn-20170616-0616_00182_001.html

Reuters Chinese: China’s Imports from North Korea Dropped over 30 Percent in May

Reuters Chinese recently reported that, based on data that the China General Administration of Customs just released, China’s imports from North Korea in May were valued at US$123.8 million. This was a 31 percent decline, year-over-year. The lowest import level from North Korea was in April, reaching US$99.3 million. March was the second lowest. The custom’s data showed that China’s halt to the importation of North Korean coal in February significantly limited North Korea’s capability of obtaining enough hard currency. The same data also showed China’s exports to North Korean totaled at US$319.8 million in May, which was a two-digit percentage increase, year-over-year. Also, the May export level was higher than April’s.

Source: Reuters Chinese, June 23, 2017
http://cn.reuters.com/article/cn-kp-may-import-idCNKBS19E0Z3

Xinhua: The Chinese Pension Fund Saw a Deficit in Some Regions

Xinhua recently reported that the Chinese Ministry of Human Resources and Social Security revealed that, based on its January to May statistics, the national pension fund saw a deficit in some regions. In Northeastern China, where most of the old industrial bases are located, the pension fund income is lagging behind its expenditures. Northeastern China has a much bigger retirement population, with fewer people paying into the pension accounts. The Ministry’s statistics also showed a significant imbalance among regions. This is a reflection of uneven economic development trends. The data demonstrated a clear structural difference between Eastern China and Midwestern China. Eastern China contributed a much bigger surplus to the overall pension fund. In order to ensure a healthy balance in the fund, the Ministry is planning to extend participation to all citizens, increase the government’s contribution to the fund, expand the scope of the market in which the pension fund can invest, and include company contributions as an income source for the fund.

Source: Xinhua, June 23, 2017
http://news.xinhuanet.com/2017-06/23/c_1121198636.htm
http://economy.caijing.com.cn/20170623/4289442.shtml

China Commented on French President Macron’s Suggestion to Restrict Chinese Investments

Well-known Chinese news site Sina recently reported that Geng Shuang, spokesperson for the Chinese Ministry of Foreign Affairs, commented on the suggestion that French President Macron made to give the European Union more power. The additional power is intended to allow the EU to be able to restrict China’s investments in Europe, especially in some of the critical industries. Geng recognized that China did pay attention to Macron’s suggestion. He further said that many countries in the world, European countries included, are emphasizing fighting against all kinds of protectionism under the current atmosphere of the anti-globalization mindset. He confirmed that China did encourage its investors to develop opportunities in Europe while requiring them to obey local laws and rules. China also hopes that Europe can provide the Chinese investors with a fair, just, and favorable investment environment.

Source: Sina, June 23, 2017
http://finance.sina.com/bg/economy/chinanews/20170623/05051617033.html

Survey Results Reveal Hong Kong Youths Do Not Want to Be Identified as “Chinese” Citizens

According to an article that Radio Free Asia published, Hong Kong University released the results of a recent survey reporting that the percentage of Hong Kong youths who acknowledged their identity as “Chinese” was only 3.1 percent, the lowest number in history. At the same time, the percentage of those who identify themselves as “Hong Kongese” was 65 percent, 3 percent higher than in the previous survey. The article quoted an interview with a few residents in Hong Kong. They felt that the political milieu and the livelihood in Hong Kong have worsened since its return to the mainland 20 years ago and that Beijing has never kept its promises. One professor from Hong Kong University said that Beijing constantly interferes with Hong Kong policy. Meanwhile Hong Kong youths are not happy with the uncivilized behavior that the tourists from the mainland display while they shop in Hong Kong or tour in foreign countries. The Hong Kong government didn’t bother to understand the dissatisfaction from the Hong Kong youths whose wish to have Hong Kong be independent continues to rise but is being suppressed.

Hong Kong University has conducted the survey once every two years since 1997. The “Chinese Citizen Identity” result was growing in the first 10 years from 1997 to 2006 but dropped sharply starting in 2008 and fell below 10 percent in 2012, two years before the “Occupy Central” movement took place.

Source: Radio Free Asia, June 21, 2017
http://www.rfa.org/mandarin/yataibaodao/gangtai/yf1-06212017113643.html