Propaganda and Education activities for the 100th Anniversary; Inner Mongolia's crypto crackdown; Financial support for rural vitalization; John Cena apologizes

Today’s Essential Eight items:

  1. Propaganda and Education activities for the 100th Anniversary of the CCP - a new circular outlines activities for the next 36 days;

  2. Putting money behind rural vitalization - The PBoC and 5 other departments issued a document about providing financial services for agricultural business and rural areas;

  3. NDRC issues guideline on price reforms for high-quality development;

  4. Inner Mongolia issues harsh draft rules to crackdown on crypto - The draft threatens loss of business licenses and in some cases ending of official careers and jail for non-compliance;

  5. Damming the Yarlung Tsangpo - Australia’a ABC News has a long interactive story on a mooted hydropower project in Tibet that would dwarf the Three Gorges Dam;

  6. Huawei’s HarmonyOS launching next week - It is billed as a homegrown operating system, but is it actually an Android fork?;

  7. CCDI Report on corruption and the collapse of Baoshang Bank - The official public report on the corrupt ways of Xiao Jianhua’s Tomorrow Group’s Baoshang Bank;

  8. John Cena apologizes for calling Taiwan a country - His Fast & Furious 9 is playing in the PRC now, doing quite well, but he called Taiwan a country in one interview and had to grovel it back in broken Chinese. Painful to watch.

Thanks for reading


The Essential Eight

1. Propaganda and Education activities for the 100th Anniversary of the CCP

China continues to promote Party history learning - Xinhua

According to a circular issued by the General Office of the CPC Central Committee, various activities will be carried out across the country, including reading activities, lectures at the grassroots level, exhibitions, "red tourism" activities and speech contests.

Highlighting the importance of organizing education activities tailored for teenagers, the document also called for making full use of the internet to carry out such activities.

中办印发《关于在全社会开展党史、新中国史、改革开放史、社会主义发展史宣传教育的通知》-中国长安网

The General Office of the Central Committee of the Communist Party of China issued a circular on Carrying out Propaganda and Education on the History of the Party, the History of New China, the History of Reform and Opening up and the History of Socialist Development in the whole society, and made arrangements for carrying out publicity and education on the "Four Histories" on the occasion of the 100th anniversary of the founding of the Communist Party of China...

The Circular clearly stated that it is necessary to study, publicize and implement Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era as the main line, accurately grasp the theoretical logic, historical logic and practical logic of this important thought, deeply understand the historical status and great significance of this important thought, and continuously enhance political identity, ideological identity, theoretical identity and emotional identity. In-depth study and understanding of General Secretary Xi Jinping's important expositions on Party history, the history of New China, the history of reform and opening up, and the history of socialist development, especially the spirit of the important speech delivered at the mobilization meeting of Party history study and education and the celebration of the 100th anniversary of the founding of the Communist Party of China. It is necessary to grasp the connotation of the publicity and education of the "Four Histories", pay attention to the integration of content and logical interlocking, and guide the broad masses of the people, especially young people, to find out the basic principles such as why the Communist Party of China is capable, why Marxism works, and why socialism with Chinese characteristics is good, so as to deepen their understanding and grasp of the Party's history and deepen their understanding and understanding of the Party's theory.

The circular pointed out that it is necessary to organize various publicity and education activities. First, carry out activities of reading and studying history. Carry out the activities of recommending and reading good books, holding the reading activities of "Red Classics, Giving Gifts for Centennial Years", organizing the reading activities of "Strong Quality, Setting an Example", and carrying out the special reading and learning activities of party building literature. The second is to organize grass-roots publicity activities. Extensively carry out propaganda among the people, carry out roving propaganda at the grass-roots level, and tell the truth thoroughly with short stories. Hold situation report meetings and special lectures on "Four Histories", and invite leading cadres to take the lead in making reports. The third is to carry out learning experience activities. Dig deep into the connotation of red culture, carefully design and launch a number of boutique exhibitions, red tourism boutique routes and learning experience routes. Organize ceremonial activities with solemn sense and educational significance, and carry out social practice activities such as culture, science, technology and health "going to the countryside". Fourth, carry out activities to pay tribute to revolutionary martyrs. Combine with important anniversaries such as Martyrs' Day and other traditional festivals, organize activities such as sweeping martyrs' tombs, offering flower baskets, reading eulogies, and paying tribute to relics.

中共中央办公厅印发《关于在全社会开展党史、新中国史、改革开放史、社会主义发展史宣传教育的通知》,对在中国共产党成立100周年之际开展“四史”宣传教育作出安排部署...

《通知》明确,要以学习宣传贯彻习近平新时代中国特色社会主义思想为主线,准确把握这一重要思想的理论逻辑、历史逻辑、实践逻辑,深入领会这一重要思想的历史地位和重大意义,不断增进政治认同、思想认同、理论认同、情感认同。深入学习领会习近平总书记关于党史、新中国史、改革开放史、社会主义发展史的重要论述,特别是在党史学习教育动员大会、庆祝中国共产党成立100周年大会上的重要讲话精神,及时跟进学、前后贯通学、联系实际学。要把握“四史”宣传教育内涵,注重内容上融会贯通、逻辑上环环相扣,引导广大人民群众特别是青少年弄清楚中国共产党为什么能、马克思主义为什么行、中国特色社会主义为什么好等基本道理,加深对党的历史的理解和把握,加深对党的理论的理解和认识。

《通知》指出,要组织好各项宣传教育活动。一是开展读书学史活动。开展“书映百年伟业”好书荐读活动,举办“红色经典·献礼百年”阅读活动,组织“强素质·作表率”读书活动,开展党建文献专题阅读学习活动。二是组织基层宣讲活动。广泛开展百姓宣讲,深入基层开展巡回宣讲,用小故事讲透大道理。举办形势报告会、“四史”专题宣讲等,邀请领导干部带头作报告。三是开展学习体验活动。深入挖掘红色文化内涵,精心设计推出一批精品展览、红色旅游精品线路、学习体验线路。组织有庄严感和教育意义的仪式活动,开展文化科技卫生“三下乡”等社会实践活动。四是开展致敬革命先烈活动。结合烈士纪念日等重要纪念日及其他传统节日,组织开展祭扫烈士墓、敬献花篮、宣读祭文、瞻仰遗物等活动。


2. Putting money behind rural vitalization

China to step up financial services for new agricultural businesses - Xinhua

The rural inclusive financial reform experiments will be expanded, while pilot zones for financial service supporting rural vitalization will be built, according to a document jointly released by the People's Bank of China (PBOC), the central bank and five other government departments [Central Agricultural Office, Ministry of Agriculture and Rural Affairs, Ministry of Finance, China Banking and Insurance Regulatory Commission and CSRC].

New types of rural business entities such as family farms and farmers' cooperatives have gradually become a vital force in ensuring farmers' income growth, the supply of agricultural products and the transformation and upgrading of the agricultural sector, it said.

The document has specified requirements on strengthening information sharing, promoting the development of credit loans, the innovation of exclusive financial products and services and expanding and diversifying financial channels, as well as improving agricultural insurance service, among others..

Financial services for new types of rural businesses will be taken into account in assessing the financial institutions' service performance on rural vitalization, according to the document.

央行等六部门:积极推广农村承包土地的经营权抵押贷款_经济_宏观频道首页_财经网 - CAIJING.COM.CN

Six Chinese ministries, including the country’s central bank and the finance ministry, have issued a sweeping plan aimed at stimulating the rural economy. From rural finance to information sharing to public listing rules, the plan contains intensifying measures to support the so-called 新型农业经营主体 “new types of agricultural operating entities.” Most notably, it calls for an expansion of the “scope of collateral” farmers can use to secure loans. Meanwhile, it says banks and financial institutions are encouraged to issue special bonds and increase their tolerance for bad loans.

From February - China debuts new gov't body to propel rural vitalization - Xinhua

The new national administration for rural vitalization is the successor to the State Council Leading Group Office of Poverty Alleviation and Development, which focused on overseeing China's poverty alleviation efforts.

The debut of the new administration came after China's announcement of "complete victory" in eradicating absolute poverty, marking the transition of the country's policy priority from poverty alleviation to comprehensively promoting rural vitalization.


3. NDRC issues guideline on price reforms for high-quality development

China to deepen reform of price mechanism - Xinhua

The National Development and Reform Commission has issued a guideline on strengthening the reform of its price mechanism to bring it in line with China's high-quality development during the 14th Five-Year Plan (2021-2025) period.

By 2025, prices in competitive areas of business will be mainly determined by the market. The price mechanism for energy and natural resources will be further improved, and the price-control mechanism for commodities important for people's livelihoods will be improved, according to the guideline.

It urges efforts to fine-tune the monitoring, forecast and early-warning system for key commodities, strengthen price control for goods important for people's livelihoods and address unusual fluctuations in commodity prices.

Measures will be taken to promote energy-price reforms, such as optimizing the price mechanism for wind power and photovoltaic power generation, as well as improving differentiated and tiered electricity prices for industries with high energy consumption and emissions.

In terms of water-price reforms, the guideline stresses deeper price reforms in water used for agriculture and in urban areas, as well as improvements to the charging mechanism for sewage treatment.

The guideline - 【关于“十四五”时期深化价格机制改革行动方案的通知】-国家发展和改革委员会

By 2025, the prices of competitive fields and links are mainly determined by the market, the scientific pricing mechanism of network-based natural monopoly links is fully established, the price formation mechanism of energy resources is further improved, the price control mechanism of important people's livelihood commodities is more perfect, the price policy of public services is basically improved, and the price policy system meeting the requirements of high-quality development is basically established.

到2025年,竞争性领域和环节价格主要由市场决定,网络型自然垄断环节科学定价机制全面确立,能源资源价格形成机制进一步完善,重要民生商品价格调控机制更加健全,公共服务价格政策基本完善,适应高质量发展要求的价格政策体系基本建立。


4. Inner Mongolia issues harsh draft rules to crackdown on crypto

Draft rules from Inner Mongolia are very harsh, and clearly threaten loss of business licenses and in some cases ending of official careers and jail. With those rules on the books, and the high-level attention from Beijing we are now seeing, it is going to be much harder to think that this is just a passing crackdown and that things will return to normal relatively soon. There is the chance that other provinces and regions, and especially Sichuan and Xinjiang, will not take as hard a line as Inner Mongolia appears to be, but again given the attention from Beijing I would be surprised if they do not follow suit. In the current especially sensitive political environment, and given that all senior provincial officials are working towards the 20th Party Congress in 2022 and possible promotions, expect those officials to be even more careful to avoid screwing up and angering central government officials, which means they are likely to lean into what looks to be signals from Beijing to take a much harder line on all things crypto-related.

Major Bitcoin mining hub in China issues harsh crackdown measures on cryptocurrency activities - Global Times

Following recent warnings and actions against cryptocurrency mining, the regional development and reform commission issued eight draft measures against mining activities in the region.

Among the harsh crackdown measures proposed, is possible revocation of licenses for telecom and internet companies that engage in mining activities. Companies would also be held accountable with rigor, according to the draft measures.

Big data centers and cloud computing firms could also face cancellation of policy support by the government if they engage in cryptocurrency mining activities. The draft measures also include severe punishment for entities and individuals engaging in cryptocurrency mining activities as well as money laundering through cryptocurrencies, including possible criminal charges.

The commission is going through a public consultation of the draft measures that will continue until June 1.

关于对《内蒙古自治区发展和改革委员会关于坚决打击惩戒虚拟货币“挖矿”行为八项措施(征求意见稿)》公开征求意见的公告

Somewhat rough translation

"Eight Measures of the Development and Reform Commission of Inner Mongolia Autonomous Region to Resolutely Combat and Punish Virtual Currency "Mining"

(Draft for Solicitation of Comments)"

1. For industrial parks, data centers, self-provided power plants and other entities to provide venues and power support for virtual currency "mining" enterprises, according to the "Energy Conservation Law of the People's Republic of China", "Electricity Law of the People's Republic of China" and other relevant laws and regulations, Increase energy conservation supervision and reduce energy consumption budget indicators; Those who deliberately conceal and fail to report, fail to retire and shut down in time, and fail to supervise the examination and approval shall be held accountable according to the relevant laws and regulations and the party's internal regulations.

2. If there are virtual currency "mining" behaviors in big data centers, cloud computing enterprises and other entities, the competent authorities will cancel all kinds of preferential policies, withdraw from the Inner Mongolia power multilateral trading market, and strictly deal with them according to the Energy Conservation Law of the People's Republic of China, and seriously investigate the responsibilities.

3. If there are virtual currency "mining" behaviors by communication companies, Internet companies and other entities, in accordance with the relevant provisions of the "People's Republic of China Telecommunications Regulations", the competent authority shall revoke the value-added telecommunications business license in accordance with the law and hold them accountable.

4. If there is a virtual currency "mining" behavior at Internet cafes and other entities, the competent authority shall suspend business for rectification in accordance with laws and regulations.

5. For entities such as virtual currency "mining" projects that privately access power sources without approval, in accordance with the "Criminal Law of the People's Republic of China" and other relevant regulations, their illegal electricity theft shall be transferred to the judicial organs for handling in accordance with the law.

6. Where entities such as enterprises, individuals, etc. conduct money laundering in the form of virtual currency and other illegal activities, they shall be transferred to judicial authorities for handling in accordance with the "Criminal Law of the People's Republic of China" and other relevant regulations.

7. Where enterprises, individuals and other entities use virtual currency to conduct illegal fund-raising, etc., they shall be dealt with strictly by the competent authority in accordance with the "Regulations on Prevention and Handling of Illegal Fund-raising" and other relevant regulations.

8. Relevant companies and related personnel with virtual currency "mining" are included in the untrustworthy blacklist according to relevant regulations; public officials who use their positions to participate in virtual currency "mining" or provide convenience and protection for them will be transferred to discipline inspection and supervision organs for handling.

“过山车”几时刹车? 金融委首次点名“比特币” _ 证券时报网

Xinhua article [not a commentary or editorial but still interesting]: "When will the "roller coaster" brake? The Financial Stability and Development Committee mentioned Bitcoin for the first time"

Virtual currency is by no means a "profitable" investment, and the high risks behind it must not be ignored. Virtual currency trading speculation is often accompanied by false asset risk, business failure risk and investment speculation risk ... Some overseas virtual currency trading platforms encourage investors to participate in highly leveraged transactions, and manipulate the market and make false transactions by themselves, which makes it difficult to protect investors' asset rights and interests.

From warning the risk of trading speculation to clearly cracking down on related behaviors; From closing the domestic trading platform to cutting off the top-up trading channel ... The regulatory attitude towards bitcoin and other virtual currencies is becoming clearer, and the situation of strict management is becoming clearer.

Investors can't turn a blind eye to regulators who have made clear statements time and again and fully carried out supervision tips and risk warnings. In the face of huge profits, we should keep enough rationality and "brake" in time.

虚拟货币绝非“一本万利”的投资品,千万不可忽视其背后的高风险。虚拟货币交易炒作活动常常伴随着虚假资产风险、经营失败风险、投资炒作风险……部分境外虚拟货币交易平台怂恿投资者参与高杠杆交易,自己坐庄暗中操纵市场、虚假交易,令投资人的资产权益难以保障。

从警示交易炒作风险,到明确要打击相关行为;从关闭国内交易平台,到切断充值交易渠道……监管对比特币等虚拟货币的态度愈发清晰,从严管理的形势日趋明朗。

监管一再明确表态,充分进行监管提示和风险预警,投资者可不能视而不见。在暴利面前要保持足够的理性,及时“刹车”



5. Damming the Yarlung Tsangpo

High in the Himalayas, China is planning to build the mother of all mega dams - ABC News

As China seeks to meet its targets of becoming carbon neutral by 2060, it is turning its sights to some of the wildest reaches of the Tibetan Plateau, where it plans to build a hydropower plant so ambitious that it could produce three times as much power as Three Gorges.

Late last year, as the world grappled with the COVID pandemic, the Chinese Government announced it would seek to exploit the hydropower potential of the lower reaches of the Yarlung Tsangpo — a transboundary river that flows from Tibet into India, where it becomes the Brahmaputra, and then into Bangladesh as the Jamuna.

The announcement was made as part of the government’s 14th five-year plan, a series of guidelines spelling out China’s economic and social priorities.

Experts believe it could be the riskiest mega structure ever built. Not only is the location prone to massive landslides and some of the most powerful earthquakes ever recorded, it’s also precariously close to the disputed border between India and China...

Chinese scientists who surveyed the region on foot in the late 1990s would later claim the Yarlung Tsangpo Grand Canyon was not only the world’s longest canyon at more than 500 kilometres but also the deepest with a depth of more than 5,300 metres. That’s almost three times as deep as the Grand Canyon in the US.


6. Huawei’s HarmonyOS launching next week

Huawei to Hold Launch Event for HarmonyOS on June 2 - Pandaily

Huawei is currently communicating and cooperating with the world’s top 200 App vendors to jointly develop applications across devices. The company predicts that by the end of 2021, the number of devices equipped with the HarmonyOS will reach 300 million, of which Huawei’s devices will exceed 200 million, with third-party partners accounting for 100 million.

Huawei started developing HarmonyOS in May 2016. On August 9, 2019, the company officially released HarmonyOS. At the same time, Richard Yu, CEO of the Consumer BG at Huawei Technologies, announced that the operating system will be open source.

Huawei HarmonyOS launch shows breaking of US technology myth - Global Times

HarmonyOS, or Hongmeng in Chinese, the Huawei-developed operating system which is currently used in gadgets like wearable devices and smart screens, will be rolled out for its smart phones on June 2, Huawei confirmed with the Global Times on Tuesday...

Chinese telecom analysts spoke highly of Huawei's HarmonyOS phones, as it could not only help Huawei break US technological blockade, but also shows China's powerful entry into the software field that has long been dominated by US IT giants like Apple and Google.

But is it really just an Android fork? This piece from February says so, has anything changed since then? - Huawei’s HarmonyOS: “Fake it till you make it” meets OS development | Ars Technica

After getting access to HarmonyOS through a grossly invasive sign-up process, firing up the SDK and emulator, and poring over the developer documents, I can't come to any other conclusion: HarmonyOS is essentially an Android fork. The way that Huawei describes the OS to the press and in developer documents doesn't seem to have much to do with what the company is actually shipping. The developer documents appear almost purposefully written to confuse the reader; any bit of actual shipping code to which you hold up a magnifying glass looks like Android with no major changes.


7. CCDI Report on corruption and the collapse of Baoshang Bank

China’s Graft Busters Reveal ‘Shocking’ Corruption Among Local Regulators of Failed Baoshang Bank

China’s top antigraft agency has disclosed details of corruption cases involving five former banking regulators in the Inner Mongolia autonomous region who between them took more than 700 million yuan ($109 million) in bribes, mostly connected with scandal-hit Baoshang Bank Co. Ltd., a failed local lender taken over by the state in 2019.

The officials, including Xue Jining, a former head of the Inner Mongolia branch of the now-defunct China Banking Regulatory Commission (CBRC), abused their power to seek benefit for those who paid them bribes related to establishing institutions, approving new businesses and loans, project construction and personnel appointments, the Central Commission for Discipline Inspection (CCDI) said in report (link in Chinese) released on its website Tuesday...

The cases came to light in the wake of investigations into the collapse of Baoshang Bank which was seized from private conglomerate Tomorrow Holding Co. Ltd. in May 2019. The bank’s high leverage, poor lending practices and corrupt activities had built up risks that regulators feared could threaten the stability of the banking system. Subsequent investigations found a 220 billion yuan hole in the bank’s books due largely to massive misappropriation by Tomorrow Holding, whose billionaire founder Xiao Jianhua was placed under investigation by anti-corruption authorities in early 2017.

The CCDI report - 严查原内蒙古银监局系列监管腐败案:铲除监管内鬼 守护金融安全————头条——中央纪委国家监委网站

Question: How was Xiao Jianhua able to get so many financial services licenses during the Hu-Wen era?


8. John Cena apologizes for calling Taiwan a country

WWE superstar John Cena is ‘very sorry’ to Chinese fans for referring to Taiwan as a country in Fast and Furious 9 promotional interview | South China Morning Post

The 44-year-old American, who made the comment on Taiwanese broadcasting network TVBS during a promotional tour for the Hollywood blockbuster Fast & Furious 9, posted a video message on Sina Weibo clarifying his comments, though he did not directly mention Taiwan or its relationship with China.

“Hi China, I’m John Cena. I’m in the middle of Fast and Furious 9 promotions. I’m doing a lot of interviews. I made a mistake in one of my interviews. Everyone was asking me if I could use Chinese – [movie] staff gave me a lot of information, so there was a lot of interviews and information,” said Cena, who started learning Mandarin to help his wrestling promotion’s integration in China. He has since gone viral many times for his enthusiastic Mandarin-speaking abilities.

“I made one mistake. I have to say something very, very, very important now. I love and respect China and Chinese people. I’m very, very sorry about my mistake. I apologise, I apologise, I’m very sorry. You must understand that I really love, really respect China and the Chinese people. My apologies. See you.”

876 million reasons and counting for Cena to grovel like this - ‘Fast and Furious’ Turbocharges China’s Box Office - Caixin

In a promising sign of the nation’s post-pandemic rebound, China’s cinemas took 1.36 billion yuan in the week through May 23, a rise of 132% on the previous seven days, according to the China Movie Data Information Network.

Despite lukewarm reviews, “F9” raked in 876 million yuan, or nearly two-thirds of the total. The film, which stars Vin Diesel and is actually the 10th full-length release in the franchise, hit Chinese screens on May 21.

But this video os so painful and the coverage of it so negative that the reputational damage outside of the PRC may turn to be quite expensive for Cena

The cover story last week on troubles Hollywood faces in the PRC is interesting - Is the China-Hollywood Romance Officially Over? – The Hollywood Reporter

In the run-up to Chloé Zhao’s historic best director win for Nomadland at the 93rd Oscars, Disney began tiptoeing around potential land mines with regard to China, the director’s home country and the studio’s most important international market...

For months, the studio had been making clandestine efforts to avoid agitating the Chinese Communist Party when it came to Zhao, who was born and raised in Beijing but attended high school in London and Los Angeles and college in Massachusetts and New York. The simple fact that she now lives in Ojai, California, was certain to irk the CCP and provoke China’s notorious internet ultranationalists, whose M.O. is to aggressively scrutinize any Chinese artist who achieves significant success in the West — searching for hints of disloyalty to the motherland.

Sources say that in late 2020, a Searchlight publicist persuaded the small, New York-based Filmmaker magazine to remove a quote from a 2013 Zhao profile in which the budding auteur explained the inspiration for her first feature film, Songs My Brother Taught Me, about a Native American teenager looking for escape from the tough conditions of South Dakota’s Pine Ridge Indian Reservation. “It goes back to when I was a teenager in China, being in a place where there are lies everywhere,” she said. “You felt like you were never going to be able to get out. A lot of info I received when I was younger was not true, and I became very rebellious toward my family and my background.

“Disney should have the ability to say, ‘We don’t stand for what’s happening in Xinjiang province as a company,’ ” says Chris Fenton, the former U.S.-based president of DMG Entertainment, which was an active player in the Beijing boom period, co-producing Disney’s Iron Man 3. “And they should be able to make that statement without fearing that their theme park’s going to get shut down or they’re never going to be allowed to exploit their IP in that market again.” But how that ideal can be realized in a global industry of ruthless realpolitik is anything but clear.

Comment: I enjoyed Fenton's 2020 book "Feeding the Dragon: Inside the Trillion Dollar Dilemma Facing Hollywood, the NBA, & American Business"

Sale of AMC cinemas closes curtain on Dalian Wanda's global dream - Nikkei Asia



Business, Economy and Trade

China Stocks Jump Most Since July Amid Record Foreign Purchases - Bloomberg The CSI 300 Index closed 3.2% higher at its strongest since early March, driven by gains in consumer staples equities. The surge came as overseas investors net purchased 21.7 billion yuan ($3.4 billion) worth of A shares via links with Hong Kong on Tuesday, the most ever.

China state banks buy dollars to curb rapid yuan rally -sources | Reuters China’s major state-owned banks were seen buying U.S. dollars at around 6.4 yuan per dollar level on Tuesday afternoon, four sources with knowledge of the matter said, in a move viewed as an effort to curb fast yuan appreciation to breach the key level.

Huarong Bonds Lose Half Their Value in Key China Funding Market - Bloomberg Borrowers putting up a Huarong Securities 2023 bond for collateral now get just 40% of the note’s face value as cash, down from 91% at the start of April, according to China Securities Depository and Clearing Corp. data.

Yicai - Debt-stricken Oceanwide Holdings Postpones Bond Repayment Oceanwide Holdings has repaid USD146 million of the USD280 million bond it issued in May 2019, and it plans to postpone the repayment of the principal and interest on the remaining USD134 million until August 23, the financial and real estate holding company announced yesterday.

Global investors get power to chase Chinese debtors into mainland | Financial Times $$ The mechanism will obligate courts in Shanghai, Shenzhen and Xiamen to recognise insolvency orders filed by company creditors in Hong Kong, conduit for Chinese companies raising money from global investors. It means that investors can more easily seek to wind up Chinese businesses’ assets on the mainland to recover their money. The scheme could be expanded to more Chinese cities in future.

王晋斌:通过汇率升值降低进口大宗商品成本,是划不来的|界面新闻 To reduce the cost of imported commodities by renminbi appreciation is not a good trade off, says Wang Jinbin, a Renmin University professor. “There are many factors that have pushed up the commodity prices, forcing us to face a trade off: the appreciation of renminbi will help reduce the costs of imported goods but will lower the competitiveness of exports,” he argues.” On this issue, the reduction of import costs through renminbi appreciation will also bring down prices of exports. This is not a good trade off.”

五矿发展:国家市场监管总局决定对公司不实施进一步调查_中证网 China’s market watchdog has launched an investigation into Minmetals Development, a Shanghai-listed firm, which formed a joint venture with Alibaba in 2016.

房地产金融强监管态势延续 _ 经济参考网 _ 新华社《经济参考报》官方网站 The banking regulator has issued 837 million in fines so far this year, almost half of which were related to illegal property financing, the Economic Information Daily reported, citing figures from iFind. The regulator slapped Huaxia Bank with a hefty fine of 98 million RMB for providing financing to illegal land projects. The Bank of China, which used wealth management products to fund land acquisitions, was fined 87 million.

China’s factories decry surge in raw material prices as they cut production and say 2021 may be worse than 2020 | South China Morning Post A wave of shutdowns and temporary production stoppages is sweeping through a number of factories in China’s southern manufacturing hub as the surging cost of raw materials eats away at profits and raises concerns over inflation risks in the world’s second-largest economy. Across Guangdong province, small and medium-sized enterprises in the industrial chain – producing everything from steel castings to home appliances – lament that it may be even more difficult to stay afloat this year than it was last year.

China approves Goldman Sachs, ICBC joint wealth management venture | Reuters The unit of U.S. banking giant Goldman Sachs Group Inc (GS.N) will offer a 51% funding contribution ratio, while the wealth management unit of ICBC will offer 49%, the Chinese bank said in a exchange filing.

In Depth: Saving Peking University’s Fallen Tech Conglomerate - Caixin Under the terms of the deal, PUFG’s “good” assets, namely healthcare, finance, information technology, education, commerce and trade, and real estate, will be injected into NFG. The semiconductor assets, comprising Founder Microelectronics International Co. Ltd., will be excluded from the new company and will be sold for 800 million yuan to Shenzhen Shenchao Technology Investment Co. Ltd., a company controlled by the Shenzhen government. The remaining “bad” assets will be kept in the old PUFG and disposed of or written off.

大力发展保障性租赁住房,北上广深等40城全部出列 _ 证券时报网 Recently, the Ministry of Housing and Urban-Rural Development held a symposium on the development of affordable rental housing in 40 cities. 40 cities will vigorously develop affordable rental housing and promote the solution of housing difficulties for new citizens and young people. The Ministry of Housing and Urban-Rural Development pointed out that it will focus on the use of existing land and housing to build affordable rental housing. picture// 近日,住房和城乡建设部召开40个城市发展保障性租赁住房工作座谈会。40个城市将大力发展保障性租赁住房,促进解决新市民、青年人住房困难问题列入重要议事日程。住建部指出,将重点利用存量土地和房屋建设保障性租赁住房。

消息称浙江省联社五位人士进驻温州银行 并接替“三长”、两副行长职务 - 21财经 21CBH reports that Zhejiang Rural Credit Cooperative Union has effectively taken control of the Bank of Wenzhou, which has been having "issues"

China steel body sees prices stabilising, helped by crackdown on speculation | Reuters Chinese steel prices are expected to stabilise as demand softens in the near term and a round of government inspections aims to stop speculation and irregularities, the China Iron and Steel Association (CISA) said on Monday.

EXCLUSIVE China launches antitrust probe into Tencent-backed property broker KE -sources | Reuters SAMR has been formally investigating in recent weeks whether KE Holdings forces real estate developers to list housing information only on its platforms, including Lianjia and Beike, a tactic known as "choose one from two", the people said, declining to be named because the information is not public.

Yicai - FAW-VW May Slash Output by 30% in Second Quarter due to Chip Shortage A joint venture of Germany’s Volkswagen and China's FAW Group may have to cut its production by 30 percent in the second quarter due to the global chip shortage, Yicai Global learned exclusively from an internal document. FAW-Volkswagen Automobile expects to produce only 400,000 vehicles in the quarter ending in June, much lower than the original target of 610,000 units, the JV’s second-quarter production plan shows

The collateral damage of Australia's trade war with China - ABC News Over the past year, China’s trade sanctions have hit industry after industry.

Ant Shelves Sales of Debt Backed by Online Loans After Crackdown - Bloomberg Ant has no immediate plans to issue asset-backed securities this year, the people said, asking not to be named since the matter is confidential. The Shanghai stock exchange said on Tuesday that sales of two ABS totaling 18 billion yuan ($2.8 billion) by Ant units were terminated, without giving a reason.

Yicai - Chinese Fast-Fashion Unicorn Shein to Go Public Soon, Source Says Shein is preparing for an initial public offering in the near future, investment data platform Pedaily reported, citing a person with knowledge of the matter. No details were given about the bourse in question or the amount to be raised, but the Chinese online budget fashion retailer was worth USD15 billion at the end of last year.

China orders prompt probe into swaying Shenzhen skyscraper | South China Morning Post Officials in the southern Chinese province of Guangdong have ordered a swift and “scientific” investigation to address public fears about a swaying landmark skyscraper in Shenzhen. The orders come as tenants in the SEG Plaza worry about the future of their businesses and the building’s management scrambles to find alternative accommodation for clients.

Huawei Vows It Won’t Make Cars or Invest in Automakers - Caixin Huawei Technologies Co. Monday dismissed speculation that it wants to be China’s Tesla challenger, driving down the shares of several automakers. The telecom equipment giant has not and will not invested in any auto companies, Huawei said Monday in a statement. The company also said it will not control or hold shares of any automakers.

Tesla announces to store all data collected by its cars within China - Global Times In a post on its official account on social media platform Sina Weibo, Tesla said that the company has built data centers in China to realize localization of data storage, and it will gradually increase the number of local data centers. It did not offer further details of future data centers in China.

Update: Taiyuan branch of China’s central bank summons finance firm over insult in customer’s credit report - Global Times The company deleted insulting comments on a customer's credit report after calling her "a 10-year professional sex worker" in the report's job description column. However, it has not yet offered a proper explanation to the customer, according to the People's Daily on Monday.

Premier Li: Flexible employees should enjoy social security - CGTN China should work to bring social security benefits to as many flexible employment workers [AKA "gig workers"] as possible, Chinese Premier Li Keqiang said during an inspection tour to east China's Zhejiang Province on Monday. Guaranteeing such security will help extend the potential of the job market, and make cities more competitive and the society more vigorous, Li stressed in Ningbo, a major city in the province...During a visit to a local job and talent center, the Chinese premier asked a job seeker for online food delivery services whether he will have work-related injury insurance. Some university graduates told him flexible employment is an alternative for them and they hope to start their own businesses in the future.

China’s Qiming Venture Launches $500 Million Fund to Invest in Listed Companies — The Information $$ Qiming Venture Partners, a prominent China-focussed VC firm whose portfolio includes TikTok owner ByteDance, has expanded into public stock market investments for the first time, with a recently launched $500 million fund that bets primarily on Chinese  healthcare companies listed outside mainland China, people with knowledge of the matter said.


Politics and Law

Liaoning Residents, Online Comments Raise Doubts Over Fuxin Bike Blast — Radio Free Asia Local residents questioned the official version of events on Tuesday after an electric bike exploded outside government offices in the northwestern Chinese province of Liaoning, killing one person and injuring five others. A video clip sent to RFA showed a person on a moped, inching towards the gates of the Fuxin municipal government headquarters in Liaoning, close to a black, official-looking sedan car.

State Council urges improving urban parking - State Council An urban parking system will be built throughout China by the end of 2025, mainly consisting of supporting parking facilities, with off-street and on-street parking to be adopted when necessary, said a circular issued by the General Office of the State Council on May 21.

Filming completes on Chinese feature about CPV's courageous battle - Xinhua Filming has been completed on a new feature depicting the Chinese People's Volunteers (CPV) in a courageous battle during the War to Resist U.S. Aggression and Aid Korea (1950-1953). Known in Chinese as "Chang Jin Hu," which roughly translates to "Changjin Lake," the highly anticipated film tells the story of CPV soldiers fighting bravely in freezing temperatures, contributing to the CPV's victory in a key campaign around Changjin Lake. Co-produced by Bona Film Group and August First Film Studio, the film is jointly directed by Chen Kaige, Dante Lam, and Hark Tsui -- all big names in the Chinese film industry. Wu Jing, a renowned Chinese martial artist, actor, and film director, played a leading role in the new movie….Tuesday's announcement came just days after the workshop of Chinese director Zhang Yimou announced via Weibo that his film "Ju Ji Shou," or "The Coldest Gun" in English, set in the same war, is set for release on July 30. It is just two days ahead of China's Army Day, Aug. 1. The upcoming film by Zhang revolves around a sharpshooter squad of the CPV in their heroic fight against the enemy.


Foreign and Defense Affairs

China’s foreign minister says EU parliament is wrong to tie investment deal to Xinjiang | South China Morning Post

Speaking at a teleconference talk hosted by the Munich Security Conference, Foreign Minister Wang Yi gave his first public reaction to the European Parliament’s passage last week of a motion halting its ratification process of the Comprehensive Agreement on Investment (CAI)...

Wang said that the motion was wrong to link human rights to trade issues, adding that allegations of concentration camps and genocide in Xinjiang were “lies and rumours”.

“The investment agreement is not a one-sided favour, the Xinjiang-related issue bears on China’s sovereignty and security,” he said...

“When those EU sanctions were launched, the Chinese people were reminded of the days when we were bullied by European imperialists,” he said.

“So we had to give a response. We were unwilling to do so, but we were not the first to bring up the issue. If there were no EU sanctions, we would not have written out our sanctions.”

MSC Conversation on Relations between China and the West with Wang Yi - Munich Security Conference

China rejected Lloyd Austin’s phone calls ‘after US defence secretary requested wrong person’ | South China Morning Post A Chinese military source said there was misunderstanding when US Defence Secretary Lloyd Austin requested to talk to Chinese Central Military Commission (CMC) vice-chairman Xu Qiliang, causing offence at the Chinese defence ministry. Speaking on condition of anonymity, citing the sensitivity of the matter, the source said Austin’s counterpart should be Chinese Defence Minister Wei Fenghe, rather than Xu – the No 2 in the CMC below President Xi Jinping, who chairs the body.

China's Xinjiang denounces so-called "Uygur tribunal" as trampling of int'l law - Xinhua A spokesperson of northwest China's Xinjiang Uygur Autonomous Region on Tuesday strongly condemned and rejected the so-called "Uygur tribunal" which attempts to hold a "hearing" on claims of "genocide" in the region...The "Uygur tribunal," set up by the U.S. and Western anti-China forces in collusion with the "World Uygur Congress" and other "East Turkistan" organizations, is a pseudo-court set up to attack and smear Xinjiang and interfere in China's internal affairs, the spokesperson said. Xu added that it is simply absurd to see an illegal tribunal holding a "hearing" on the lie of the century.

China, Russia eye fixing ‘global disorder’ amid US withdrawal - Global Times Among a wide range of topics, how to confront "the challenges posed by the US-led Quad alliance" that may pose security impacts to China and Russia would also top the agenda of security talks, Wang Xianju, deputy director and research fellow at the Renmin University of China - Russia St. Petersburg State University Russian Research Center, told the Global Times on Tuesday.

Beijing recommends avoiding cross-border travel due to COVID-19 - CGTN China's foreign ministry on Tuesday recommended that Chinese citizens avoid unessential cross-border travel, citing the still severe COVID-19 situation around the world. Zhao Lijian, a spokesperson for the ministry, said the recommendation was made to protect travelers' health and safety.

What I Learned From the PLA’s Latest Strategy Textbook - Jamestown - Joel WuthnowIn August 2020, China’s National Defense University (NDU) released a revised version of its Science of Military Strategy (战略学, zhanlüe xue) (SMS), a core textbook for senior PLA officers on how wars should be planned and conducted at the strategic level. This article compares the 2020 version of this book with its last revision, in 2017, and finds that the former contains new details on wartime political work, “intelligentization” concepts, China’s military strategic guidelines, major war operations, joint logistics and the People’s Armed Police. It should be a go-to reference for those seeking to understand Chinese military thinking as it is currently explained to PLA officers themselves...The second new section discusses “maritime maneuver operations” (海上机动作战, haishang jidong zuozhan), describing joint operations that aim to achieve control over “important sea areas” and “important maritime passages” (p. 233-4). The text does not cite specific locations but notes that one key characteristic of these operations is “a rather long distance from one’s home territory, with large difficulties in operational support,” suggesting preparing for combat-oriented operations in seas farther from China’s coasts and well-defended supply lines.

Can China’s Israel-Palestine Peace Plan Work? – The Diplomat Wang’s latest four-point plan is simply a rehash of the international consensus, with no real chance of bringing either the Israelis or the Palestinians to the negotiating table. China’s interests in maintaining positive relations with Israel preclude it from offering anything that will truly threaten the status quo or pressuring Israel to accept mediation. Any progress would be contingent on Israel agreeing to allow China to step into the negotiations, a development that Netanyahu has every incentive to avoid. While China’s rhetorical support for the Palestinians is an important part of its strategy of engagement with the Arab world, it only needs to embrace the international consensus to win the support of the Arab states, which are themselves content to make only just enough noise about Palestine to satisfy their own populations.

China’s Foreign Technology Wish List - Center for Security and Emerging Technology “Science and technology diplomats” act as brokers as part of China’s broader strategy to acquire foreign technology. Each year, they file hundreds of official reports on their activities. This issue brief illuminates trends in the 642 reports filed by the S&T directorates of Chinese embassies and consulates from 2015 to 2020, quantifying which types of technologies the Chinese government is most focused on acquiring, and from where.

Trapped in Dubai – China’s hunt for a teenage dissident | Safeguard Defenders What started as a solitary, early evening post on China’s Weibo platform on February 21 earlier this year, questioning the PLA and the Chinese government after its conflict with India the year before, is rapidly turning into an international incident in a dramatic standoff between a lone teenage Chinese dissident and the Chinese State. At play is also the Dubai authorities, who in determining the fate of the teenager, will also seal the fate on whether Dubai, like Hong Kong, is to become yet another transit hub no longer safe for anyone that has questioned the Chinese State or its policies.

China’s mysterious H-20 strategic bomber ‘may be able to strike second island chain’ | South China Morning Post China’s next-generation Xian H-20 strategic bomber may have adopted a stealthy flying wing design that can help it strike targets in the second island chain and beyond, an analyst said after images of the aircraft’s design were published. The latest edition of Modern Weaponry [飞翼布局?轰20想象图再现身,未来轰炸机一定要用飞翼布局吗_隐身], a monthly magazine run by state defence corporation China North Industries Group, or Norinco, has released four computer-generated pictures of the design of the Xian H-20. The bomber has been under development for years and photos of it have never been officially disclosed.

PLA Navy conducts large-scale joint submarine rescue drill - China Military A naval search and rescue flotilla under the PLA Northern Theater Command , together with surface ships, helicopter units, and local maritime search and rescue forces, carried out a 74-hour uninterrupted multi-course drill in actual combat context in waters of the Yellow Sea as scheduled from May 17 to 20, aiming to test the troops’ ability to perform submarine rescue mission and emergency treatment. During the drill, the application of multi-type submarine rescue equipment has highlighted the breakthroughs made in the troops’ core rescue capabilities.

US elites degenerate further in morality, and Fauci is one of them - Global Times Editorial by Hu Xijin Because of their anti-China stance, US elites have festered further in morality. Even figures like Dr. Anthony Fauci, a top expert in public health, have echoed their opinion war against China. Fauci said that he is no longer convinced that the COVID-19 pandemic originated naturally. He added, "I think we should continue to investigate what went on in China until we continue to find out to the best of our ability what happened," according to media reports. Fauci attempted to hype the old and groundless narrative that the virus was leaked from a lab in Wuhan. It is noticeable that a day before Fauci made the statement, the Wall Street Journal published a so-called "exclusive report."

交流经验  互学互鉴(阿拉伯国家驻华外交官上海行)--新闻报道-中国共产党新闻网 Exchange experience and learn from each other (Arab diplomats in China travel to Shanghai) - In the China-Arab Reform and Development Research Center of Shanghai International Studies University, 18 diplomats from 14 Arab embassies in China and the Arab League representative offices in China strolled along the picture gallery of China-Arab cultural exchange. From supporting each other's national liberation and national independence, to joining hands on the road of economic and social development, and then issuing the voice of unity and cooperation on the international stage, the history of friendly exchanges between China and Arab countries came into view instantly, which aroused deep emotion among Arab diplomats.

Chinese Surveillance-Gear Maker Hikvision Has Ties to Country’s Military, Report Says - WSJ According to public documents and online materials found by IPVM, Hikvision sold drones and other accessory equipment to the Chinese air force in 2019 and was considered a top-tier supplier to the nation’s military in 2014. In March, a drone-jamming rifle, emblazoned with a Hikvision logo, was shown on state television being held by a soldier kneeling in rough terrain and testing equipment for use in extreme conditions such as subzero temperatures or high altitudes. Hikvision’s website also carried a report on how the company’s technology could improve the performance of Chinese missile, tank and other weapons systems, citing a study done jointly with commanders and weapons experts from the People’s Liberation Army. The study proposed the use of Hikvision cameras to record drills and improve weapons accuracy. The report was taken down from Hikvision’s website for several days this month after The Wall Street Journal contacted the company for comment.


Hong Kong

'RTHK dumping staff disturbing and disproportionate' - RTHK RTHK's decision to outsource production of one of its programmes after "unapproved content" made its way into a recent episode is both "disturbing" and "totally disproportionate", the Hong Kong Journalists Association (HKJA) said on Tuesday. The government broadcaster says its producers added footage to the end of last Friday's episode of Legco Review, showing the organisers of what used to be the annual June 4 Tiananmen massacre vigil taking part in a run.

Covid vaccine hesitancy could see Hong Kong throw away doses | The Guardian The city of 7.5 million people has bought enough doses of the Pfizer/BioNTech vaccine and China’s Sinovac, to vaccinate its entire population, but so far only 2.1 million have been administered since the vaccination programme launched in late February.

HKSAR chief executive says no obvious capital outflow seen in Hong Kong - Xinhua Lam told the media before attending an Executive Council meeting that a survey released earlier by the American Chamber of Commerce in Hong Kong said 42 percent of the companies surveyed were considering leaving Hong Kong, but the HKSAR government has not seen any significant capital outflow from Hong Kong, and the local stock and financial markets have remained stable.


Taiwan

Taiwan hit by triple blow of drought, blackouts and COVID surge - Nikkei Asia Multiple cities across Taiwan welcomed heavy rain on Monday afternoon, however, as of evening, the water reserve rate at the Nanhua Reservoir stood at just 8.8%, suggesting the water supply from this reservoir could last only 19 days without any rainfall, according to open data provider Taiwanstats, citing data from the Water Resources Agency.


Society, Arts, Sports, Culture and History

Race Organizer Put a Team of Temps in Charge of Deadly Race - Caixin The organizer of the deadly race in northwestern China’s Gansu province was a small company with a temporarily hired executive team, Caixin learned from interviews. Twenty-one runners died amid freezing weather that suddenly struck the May 22 event.

The secret deportations: how Britain betrayed the Chinese men who served the country in the war | Liverpool | The Guardian During the second world war, Chinese merchant seamen helped keep Britain fed, fuelled and safe – and many gave their lives doing so. But from late 1945, hundreds of them who had settled in Liverpool suddenly disappeared. Now their children are piecing together the truth

With Far Fewer Abandoned Babies, China’s Orphanages Stand Empty - Sixth Tone In 2012, the country had about 570,000 children who had been abandoned or whose parents had died. Today, that figure stands at 190,000, said Zhao Yong, deputy chair of the child welfare department at the Ministry of Civil Affairs (MCA).


Energy, Environment, Science and Health

Over 527 mln COVID-19 vaccine doses administered across China - Xinhua More than 527.25 million doses of COVID-19 vaccines had been administered across China as of Monday, the National Health Commission said Tuesday

Tsinghua University to cultivate quantum information talent - Xinhua Tsinghua on Monday announced the establishment of the quantum information program, led by Turing Award winner Andrew Chi-Chih Yao as chief professor. It is the third talent training program initiated at Tsinghua by the renowned computer scientist, after his computer science experimental program and artificial intelligence program. It will offer courses on a range of topics, including quantum computer science, quantum communication and cryptography, computers and mathematics with applications. The program plans to recruit 20 undergraduate students this year.

Supervision, disposal of hazardous waste to be strengthened - State Council China will strengthen supervision over hazardous waste and enhance effective disposals, according to a circular released by the General Office of the State Council on May 25. By the end of 2022, the supervision system and mechanism for hazardous waste will be further improved, harmless treatment rate of medical waste in urban built-up areas at county level and above should be more than 99 percent, and a regulatory system covering the whole process of hazardous waste disposal should be established by the end of 2025.


Rural and Agricultural Issues

Alibaba Ramps Up Digital Support to Revitalize China's Rural Economy | Alizila Alibaba Group last week rolled out 14 measures to boost rural economies in China, expanding its investment and philanthropic efforts in rural education, female empowerment, healthcare, digital infrastructure and e-commerce development for present and future generations. Dubbed the Alibaba Rural Vitalization Fund, this effort extends Alibaba’s Poverty Relief Fund, a philanthropic initiative the company set up in 2017.

Obese Pigs in China Are Fueling Relentless Slump in Pork Prices - Bloomberg Cao Tao, a pig trader in the northwestern province of Shaanxi, said many of the swine he’s buying weigh more than 200 kilograms, compared with their usual size of around 125 kilograms. “Some farmers are holding onto their larger pigs on hopes of a price rebound,” he said. Instead, Chinese wholesale pork prices have plunged more than 40% since mid-January amid sluggish demand, increased imports and panic selling by farmers after fresh outbreaks of African swine fever.