Corrupt Chinese official ‘demands aircraft in return for favours’
Posted: March 7, 2016 Filed under: Uncategorized | Tags: China, corrupt officials, corruption, NPC session 1 CommentSCMP says in its report “Corrupt Chinese official ‘demands aircraft in return for favours’” today, “A deputy mayor in Shanxi took 644 million yuan (HK$767 million) in bribes – more than the combined fiscal income of the province’s nine poorest counties, Shanxi’s Communist Party chief said on Sunday.”
According to SCMP, the Party chief gave other vivid details of three corrupt officials in the province and describes graft as the “malicious tumour” that severely hindered economic development.
He said the anti-corruption campaign could help to get rid of these “black sheep”.
SCMP says that in one case an “official also asked 12 companies to chip in to buy a 390 million yuan aircraft for personal use.”
Source: SCMP “Corrupt Chinese official ‘demands aircraft in return for favours’
Full text of the report can be viewed at http://www.scmp.com/news/china/policies-politics/article/1921771/corrupt-chinese-official-demands-aircraft-return
China says economy will ‘absolutely not’ experience hard landing
Posted: March 7, 2016 Filed under: Uncategorized | Tags: China, Chinese economy, Xu Shaoshi Comments Off on China says economy will ‘absolutely not’ experience hard landingChina’s economy isn’t headed for a hard landing and isn’t dragging on the global economy, China’s top economic planner said on Sunday, but uncertainty and instability in the global economy do pose a risk to the country’s growth.
China on Saturday acknowledged it faced tough battle to keep world’s No.2 economy growing by at least 6.5 percent over the next five years while pushing hard to create more jobs and restructuring state-owned enterprises.
The comments, as Beijing kicked off its 12-day annual national parliament, underscored the challenges facing China as its economy transitions from an investment and export focused economy to one based more on services and consumption.
“China will absolutely not experience a hard landing,” Xu Shaoshi, head of the National Development and Reform Commission (NDRC), told reporters at a briefing. “These predictions of a hard landing are destined to come to nothing.”
China’s economy grew 6.9 percent in 2015, the slowest pace in a quarter of a century, but still comfortably the fastest among major economies.
It has set a growth target of 6.5 percent to 7 percent for this year, introducing a band rather than a hard target as it seeks greater flexibility in juggling growth, job creation and restructuring of a host of “zombie companies” in bloated industries.
On Saturday, Premier Li Keqiang outlined a series of targets on issues such as energy consumption, job creation and inflation but few details on how they would be met.
Many investors had been hoping China would post an aggressive target for fiscal spending to prop growth.
But the draft goal of running a fiscal deficit equivalent to 3 percent of GDP, while up from the previous year’s target of 2.3 percent, disappointed some.
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Xu emphasized that China will work to improve the “efficiency” of government investment, suggesting a desire for more targeted spending.
That would be a contrast to the last stimulus injection after the global financial crisis when Chinese local governments built ghost cities, roads to nowhere and airports to juice growth.
China has massive foreign exchange reserves of more than $3 trillion to tap if needed, but a sharp decline in reserves in the past 18 months as Beijing sought to support its yuan has rattled some investors.
Central bank vice governor Yi Gang on Sunday reiterated Beijing will keep the yuan basically stable and there was no basis for continued depreciation.
NEW NORMAL
The state of China’s economy and Beijing’s ability to manage it were key talking points at a Group of 20 finance ministers and central bankers in Shanghai last month.
Li said China has the confidence to handle the complexities both at home and abroad while pressing ahead with reforms.
“In general, I think China’s economy performance has stayed at a reasonable range (since 2015),” Xu said, adding that the Chinese economy shouldn’t be viewed through traditional perspectives.
“First, we should look from the angle that the economy has entered the ‘new normal’ period,” he said, in which growth rates have shifted and the economy’s growth engines are changing towards services from investment.
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In the run-up to parliament, Beijing has flagged major job losses in the country’s bloated coal and steel industries. But plans to reduce industrial over-capacity were unlikely to result in large-scale layoffs, Xu said.
Economic growth will create more jobs and help offset the impact of capacity cuts, he said.
Nonetheless, the broader world economy poses challenges to China this year, Xu said.
“First, we estimate the slow recovery and low growth rates in the world’s economy will continue for a period of time,” he said. “Also we could not overlook the risks from unstable (global) financial markets, falling prices of commodities and risks of geopolitics.”
China also plans to launch several mixed ownership pilot programs in the oil, natural gas and rail sectors, Xu said, part of the most far-reaching reforms of its sprawling and inefficient state sector in two decades.
In September last year, China issued guidance on reforming state-owned enterprises, including the introduction of so-called mixed ownership of state firms.
China has about 150,000 state-owned enterprises, managing more than 100 trillion yuan ($15 trillion) in assets and employing over 30 million people, according to the official Xinhua news agency.
(Writing by Ryan Woo; Editing by Lincoln Feast)
China warns Hong Kong not to politicize issues
Posted: March 6, 2016 Filed under: Uncategorized | Tags: China, Hong Kong, Hong Kong autonomy, Hong Kong independence, missing booksellers, Zhang Dejiang 1 CommentChina’s third-ranked Communist Party leader Zhang Dejiang said Hong Kong shouldn’t “politicize everything” and should instead focus on integrating its economy with China’s, according to members of China’s parliament who met with him on Sunday.
A day after Premier Li Keqiang pledged greater economic support for Hong Kong at the opening of annual parliamentary sessions in Beijing, Zhang said that while a recent riot in Hong Kong was a concern, it was one the city’s government could handle.
“He (Zhang) said one needed to take a broader perspective to look at it, and to not politicize everything,” said Rita Fan, a standing committee member of China’s parliament chaired by Zhang.
Chinese media has blamed the riot in early February on “radical separatists” seeking to destabilize Hong Kong.
Other delegates who met with Zhang said that while Zhang didn’t single out anyone for blame, there remained concern among Beijing’s top leaders towards an embittered cluster of youth groups in Hong Kong using increasingly radical or violent means to demand greater autonomy.
China maintains Hong Kong is an inseparable part of China and as such resolutely opposes any moves towards independence.
Reuters was not able to contact Zhang for comment. Calls to China’s Hong Kong and Macao Affairs Office in Beijing after regular business hours went unanswered.
NATIONAL SECURITY
“They worry about the rise of separatism,” said Lau Siu-kai, a former senior Hong Kong government adviser who met with Zhang on Friday with other members of the Chinese People’s Political Consultative Conference, a top parliamentary advisory body.
“If something big happens in Hong Kong that is seen as threatening national security, I don’t expect China to wait, they may take the initiative to protect national security,” Lau told Reuters.
Hong Kong was returned from British to Chinese rule in 1997 under a “one country, two systems” framework granting it broad freedoms and an independent judiciary, though with Beijing having ultimate authority.
As for the disappearances of five Hong Kong booksellers who published gossipy books of China’s leaders, the issue wasn’t raised by Zhang despite lingering questions about the cases.
All of the booksellers recently surfaced to give interviews on Chinese television saying they had traveled voluntarily to China. But the British government maintains one of the men, Lee Bo, had been “involuntarily removed” from Hong Kong.
China’s Foreign Ministry has said its law enforcement officials would never do anything illegal, especially not overseas, and called on foreign governments not to interfere in Hong Kong affairs.
“Even me, I still have some doubts … most of the middle class actually have serious concerns,” Ma Fung-kwok, a Chinese parliamentary delegate told Reuters in a Beijing hotel lobby.
“If someone broke the Basic Law and tried to do illegal enforcement in Hong Kong territory, this is something that shouldn’t be allowed… Even if it’s Chinese police.”
Still, Andrew Yao, a Hong Kong businessman and member of China’s parliament, said such concerns were overplayed, with Beijing intent to maintain Hong Kong’s prosperity and stability.
“I don’t see a pivot to a police state where they can come arrest us,” Yao said.
Premier Li emphasized in his annual work report that Beijing would continue to “elevate” Hong Kong’s role in China’s economic development.
China’s updated draft five-year development blueprint also mentioned a so-called “Guangdong-Hong Kong-Macau big bay area” to boost economic synergies, as well as business and transport linkages between Hong Kong and southern China.
“He (Zhang) is saying ‘look … don’t get politicized in all your social and economic issues, concentrate on developing your economy, ride with the tide of China rising’,” said Maria Tam, a veteran Hong Kong delegate to China’s parliamentary sessions.
(Reporting by James Pomfret; Editing by Kim Coghill)
Second bookseller detained in China returns to Hong Kong: police
Posted: March 6, 2016 Filed under: Uncategorized | Tags: causeway Bay Book, China, Gui Minhai, Hong Kong, Lee Po, Lui Por, one country two systems Comments Off on Second bookseller detained in China returns to Hong Kong: policeA second Hong Kong bookseller who went missing and was found to have been detained in China returned home on Sunday, refusing to discuss his case, Hong Kong police said.
Cheung Chi Ping was one of five Hong Kong booksellers specializing in gossipy publications about Chinese leaders to go missing last year. A colleague from the same store re-appeared in the city on Friday.
“Cheung Chi Ping requested police to cancel his missing person case and stated that he did not require any assistance from the Hong Kong Special Administrative Region Government or police,” the police said in a statement.
“Cheung refused to disclose other details,” it added.
Two of the others, Gui Minhai and Lee Bo had been outside mainland China when they disappeared. Gui was in Thailand and Lee in Hong Kong.
Gui appeared on state television in January and tearfully confessed to a fatal drink-driving incident over a decade ago. He appeared on Chinese television again late last month with three of his colleagues confirming for the first time they had been detained for “illegal book trading” in mainland China.
British passport holder Lee, in an interview with China’s Phoenix Television last week, said he had not been kidnapped by Chinese authorities, as many suspect, but had sneaked into China illegally and that he would renounce his British citizenship.
The booksellers’ plight had provoked concerns that China was using shadowy tactics to weaken Hong Kong’s broad freedoms under the “one country, two systems” formula under which the global financial hub has been governed since its return to China from British rule in 1997.
Police had said on Wednesday that authorities in the southern Chinese province of Guangdong had told them Lui and his colleagues, Cheung Chi Ping and Lam Wing Kee, would be released on bail in coming days.
A number of governments have expressed concern about the disappearances, which some diplomats fear were abductions by Chinese agents.
China’s Foreign Ministry has said its law enforcement officials would never do anything illegal, especially not overseas, and called on foreign governments not to interfere in Hong Kong affairs.
Hong Kong police said they would continue to follow the other missing person cases with the Interpol Guangdong Liaison Office of Guangdong Provincial Public Security Department.
(Reporting by Donny Kwok; Editing by Anne Marie Roantree and Kim Coghill)
Chinese Navy’s World First Self-propelled Floating Dock
Posted: March 6, 2016 Filed under: Uncategorized | Tags: China, PLAN, self-propelled floating dock 1 CommentChina’s ifeng.com says in its report on February 29 that the PLA has been equipped with world first huge self-propelled floating dock to provide reparation services at sea for all kinds of Chinese warships except aircraft carrier. In peace time, it can repair commercial ships with displacement up to 30,000 tons.
The floating dock is self propelled to sail at slight sea state to move to where the ship is damaged so as to provide prompt services for warships in war. As a result, damaged warships will be able to return to battle soon to satisfy the demand for fast operations in modern war. It can operate in wind not stronger than force 6 and wave not higher than 2 meters.
The construction of the world first huge self-propelled floating dock marks the commencement of a new era in reparation of warships.
Source: ifeng.com “PLA equipped with world first self-propelled floating dock: the huge dock begins a new era” (summary by Chan Kai Yee based on the report in Chinese)
China lays out its vision to become a tech power
Posted: March 5, 2016 Filed under: Uncategorized | Tags: China, cyber power strategy, cybersecurity, innovation, Internet Plus, NPC, tech power, Xi Jinping 6 CommentsChina aims to become a world leader in advanced industries such as semiconductors and in the next generation of chip materials, robotics, aviation equipment and satellites, the government said in its blueprint for development between 2016 and 2020.
In its new draft five-year development plan unveiled on Saturday, Beijing also said it aims to use the internet to bolster a slowing economy and make the country a cyber power.
China aims to boost its R&D spending to 2.5 percent of gross domestic product for the five-year period, compared with 2.1 percent of GDP in 2011-to-2015.
Innovation is the primary driving force for the country’s development, Premier Li Keqiang said in a speech at the start of the annual full session of parliament.
China is hoping to marry its tech sector’s nimbleness and ability to gather and process mountains of data to make other, traditional areas of the economy more advanced and efficient, with an eye to shoring up its slowing economy and helping transition to a growth model that is driven more by services and consumption than by exports and investment.
This policy, known as “Internet Plus”, also applies to government, health care and education.
As technology has come to permeate every layer of Chinese business and society, controlling technology and using technology to exert control have become key priorities for the government.
China will implement its “cyber power strategy”, the five-year plan said, underscoring the weight Beijing gives to controlling the Internet, both for domestic national security and the aim of becoming a powerful voice in international governance of the web.
China aims to increase Internet control capabilities, set up a network security review system, strengthen cyberspace control and promote a multilateral, democratic and transparent international Internet governance system, according to the plan.
Since President Xi Jinping came to power in early 2013, the government has increasingly reined in the Internet, seeing the web as a crucial domain for controlling public opinion and eliminating anti-Communist Party sentiment.
China will “strengthen the struggle against enemies in online sovereign space and increase control of online public sentiment,” said the plan.
It will also “perfect cybersecurity laws and legislation”.
Such laws and regulations have sparked fear amongst foreign businesses operating in China, and prompted major powers to express concern to Beijing over three new or planned laws, including one on counterterrorism.
These laws codify sweeping powers for the government to combat perceived threats, from widespread censorship to heightened control over certain technologies.
(Reporting by Paul Carsten; Additional reporting by Ryan Woo in BEIJING; Editing by Kim Coghill)
Source: Reuters “China lays out its vision to become a tech power”
China aims to maintain growth pace, fend off unemployment in five-year plan
Posted: March 5, 2016 Filed under: Uncategorized | Tags: China, economic growth, increase in employment, Li Keqiang, NPC, Xi Jinping, zombie firms, zombie firmsChina Comments Off on China aims to maintain growth pace, fend off unemployment in five-year planChina faces a tough battle to keep its economy growing by at least 6.5 percent over the next five years while creating more jobs and restructuring inefficient industries, Premier Li Keqiang said as he opened China’s annual parliament on Saturday.
Growth of 6.5 percent would mark a ripping pace for most countries but would be the slowest in China in a quarter century as world’s No. 2 economy grapples with gyrating financial markets, softening global trade and efforts to reduce environmental degradation.
“Our country’s development faces more and greater difficulties … so we must be prepared for a tough battle,” Li said.
In 2016, Beijing will aim for an economic growth rate between 6.5-7 percent, as Reuters previously reported, with a consumer inflation target of around 3 percent and money supply expansion of around 13 percent, according to a series of draft reports ahead of the opening of the 12-day parliament.
Many investors had been hoping China would post an aggressive target for fiscal spending to prop growth.
But the draft goal of running a fiscal deficit equivalent to 3 percent of GDP, while up from the previous year’s target of 2.3 percent, still disappointed some who had hoped for a number closer to 4.
“The budget deficit of 3 percent is not enough and should be increased,” economist and former central bank advisor Yu Yongding told Reuters on the sidelines of the meeting.
Zhou Hao, economist at Commerzbank in Singapore, said the low figure may reflect concerns that a higher number would signal tolerance for another spree of debt-fueled growth such as that Beijing embarked on in 2009.
Moody’s recently downgraded the outlook for Chinese sovereign debt, a move Chinese regulators said was unjustified.
“The pressure from rating agencies could be something China has to consider, indicating that China is cautious on rolling out large infrastructure investment that could result in long-term debt issues,” Zhou said in a email.
KILL THE ZOMBIES
The reports provide a blueprint of China’s aspirations for the next five years across a range of sectors and measures.
They show Beijing trying to strike a balance between holding up growth and restructuring underperforming industries, where so-called “zombie firms” are responsible for much of the country’s corporate debt overhang left over from the 2009 stimulus.
In lead up to parliament, the government flagged major job losses in key coal and steel industries. Overall, China aims to lay off 5-6 million state workers over the next two to three years, two sources said, in Beijing’s boldest retrenchment program in almost two decades.
Li said the country will create 10 million new jobs, address zombie firms through mergers, bankruptcies and debt deals, and hold the urban registered unemployment rate below 4.5 percent in 2016.
Seeking to improve the environment, Beijing aims to cap total energy consumption at 5 billion tonnes of standard coal by 2020 and set targets for improving water efficiency.
China will increase military spending by 7.6 percent this year, its lowest increase in six years, as it pursues a modernization plan that will shrink staffing.
Unlike previous years, the documents did not mention a specific target for trade figures, having missed their goals repeatedly in recent years.
Weighed down by sluggish demand at home and abroad, industrial overcapacity and faltering investment, China’s economic growth slowed to 6.9 percent in 2015.
Economists widely expect it to cool further to a still-healthy rate of around 6.5 percent this year.
But slower growth raises the specter of social unrest, as the transformation from low-end manufacturing to high technology and services leads to rising structural unemployment.
FIXING MARKETS
Beijing hopes the country’s financial markets can play a stronger role in supporting the economic transformation.
“We will move forward with the reform of stock and bond markets and increase the level of rule of law in their development, promote the sound development of the multilevel capital market, and ensure that the proportion of direct financing is increased,” Li said.
The reassurance comes after Chinese markets erupted in 2015, with the stock indexes crashing, the yuan sliding sharply, and property markets in major cities spiked while smaller cities lagged.
Those moves prompted heavy-handed intervention from the government, leading some to question whether the Chinese Communist Party was capable of following through on its commitment to let markets play a “decisive role” in setting the price of assets.
Li said China will open its capital account in an “orderly manner” and continue to improve the exchange rate regime in 2016.
(Additional reporting by Kevin Yao, Sue-Lin Wong, Zhang Xiaochong, Adam Rose, Kathy Chen, Niu Shuping, and Michael Martina; Writing by Pete Sweeney; Editing by Lincoln Feast)
Source: Reuters “China aims to maintain growth pace, fend off unemployment in five-year plan”
China 052C Destroyer Can Detect, Track, Intercept Stealth Aircrafts
Posted: March 5, 2016 Filed under: Uncategorized | Tags: 052 destroyer, B-2, EOTS-89, F-22, LR-66 radar, OFC-3 optical tracker, Type 730 CIWS 4 CommentsChina’s tiexue.net military forum says in its post today that China’s Type 052C missile destroyer is equipped with LR-66 tracking radar, OFC-3 optical tracker and Type 730 Close-in Weapon System (CIWS) to detect, track and intercept stealth aircrafts such as F-22 Rafter and B-2 bombers.
Type 730 CIWS has a respective range of 3,500 and 2,500 meters in intercepting aircraft and missile.
In addition Type 052 destroyer can coordinate with J-10B, J-31 and other Chinese fighter jets equipped with China’s most advanced EOTS-89 optical search and track system to detect F-22A and B-2 within 200 km.
Source: tiexue.net “China’s 052C has a close defense radar looks like a small spin: US military says nothing after seeing it” (summary by Chan Kai Yee based on the report in Chinese)