The Sinocism China Newsletter 10.12.16

AnchorTHE ESSENTIAL EIGHT

1. Xi stresses CPC leadership of state-owned enterprises – Xinhua President Xi Jinping stressed the Communist Party of China’s (CPC) unswerving leadership over state-owned enterprises (SOEs) during a national meeting on building the role of the Party within SOEs held here from Monday to Tuesday. Efforts should be made to strengthen and improve Party leadership, as well as to build the role of the Party in SOEs to make them the most trustworthy and reliable forces of the CPC and the state, said Xi, who is also general secretary of the CPC Central Committee. SOEs should also become important forces to implement decisions of the CPC Central Committee, the new development concept, deepened reform, major strategies such as the “going out” strategies and the Belt and Road Initiative, as well as to enhance overall national power, economic and social development and people’s wellbeing, Xi added. The president urged deepening the reform of SOEs, improving management and stepping up supervision of state assets to make SOEs stronger, bigger and better.// Tuesday CCTV Evening News report on it, top 12:30 of the broadcast…seems more like Marxist reform than market reform…

Related: 习近平在全国国有企业党的建设工作会议上强调:坚持党对国企的领导不动摇-新华网 Xi speech at SOE Party construction work conference

2. Xi Jinping May Delay Picking China’s Next Leader, Stoking Speculation – The New York Times Predicting what happens depends on “whether or not you think the de facto rules and norms of elite succession will hold,” said Evan S. Medeiros, the former senior director for Asian affairs in the National Security Council under President Obama. “If not, predicting outcomes is a crapshoot.”…Even if he delays picking a successor, that does not mean he is determined to stay on as leader past 2022, when he will be 69, said Christopher K. Johnson, a senior China analyst at the Center for Strategic and International Studies in Washington. “The only thing he’s focused on right now is next fall,” Mr. Johnson said. “If he gets his way next fall, which I think would mean they don’t signal the successor, that doesn’t then mean he’s already decided to stay on forever.” // and at the the start of the 17th Congress five year period it was not a done deal that Xi would be Hu Jintao’s successor, though it was obvious he was very much in the running…seeing lots of what I think is very premature speculation, doubt anyone in Beijing even knows the likely outcome, western voices I trust the most on this subject are those of Chris Buckley and Chris Johnson.

Related: CPC to convene plenum from Oct. 24 to 27 – Xinhua The cadre Cultural Revolution continues, and may even kick up a notch  //  The sixth plenary session of the 18th Communist Party of China (CPC) Central Committee will be held here from Oct. 24 to 27, the Political Bureau of the CPC Central Committee announced on Tuesday. At a meeting on Tuesday, the Political Bureau members heard reports on the drafting of two documents to be submitted to the plenum for deliberation, namely, the norms of political life within the Party under the new situation and a revision to an intra-Party supervision regulation, according to the announcement. The meeting was presided over by Xi Jinping, general secretary of the CPC Central Committee. History shows that as a Marxist party, the CPC must be politically conscious and adopt a serious and meticulous approach to intra-Party political life, it said. “To strengthen and standardize intra-Party political life, the Party Constitution must be followed, and the CPC’s political, ideological, organizational and mass lines be upheld,” the statement read. Efforts should be made to enhance the Party’s capability to purify, improve and renovate itself, to resist corruption and risk, and prevent itself from degeneration, according to the statement.

Related: CCDI warns of weakening of Party leadership after inspections – Xinhua The Central Commission for Discipline Inspection (CCDI) of the Communist Party of China (CPC) kicked off a new round of inspections in July covering Tianjin Municipality and the provinces of Jiangxi, Henan and Hubei, all of which had been inspected previously. This round of inspections uncovered major problems plaguing the regions, including the weakening of the CPC leadership, violations in personnel selection and placement, and corruption, according to the findings released by the CCDI.

Related: 大型专题片《永远在路上》即将播出——中纪委视频页面——中央纪委监察部网站 中央纪委宣传部、中央电视台联合制作八集专题片《永远在路上》将于10月17日一10月25日播出。首播时间:CCTV-1 20:00;重播时间:CCTV新闻当晚21:30、次日13:00。

3. Why Philippine President Rodrigo Duterte Distrusts The U.S. : Parallels : NPR The Meiring case is one reason for Duterte’s mistrust of the U.S. — the main reason, according to most — but not the only one. His sense of grievance goes back even further into the past, to history dating back to the U.S. colonial rule of the Philippines from 1898 to 1946. “He’s not against the American people. But more the policy,” says Davao journalist Editha Caduaya, who has known Duterte for decades. He is angry, she says, about “the injustice done to the Moros,” the Muslims of Mindanao. Why? “Because his mother has roots from the Muslim settlers of Mindanao.”  // could be fairly easy pickings for a skillful and cashed up China, Duterte may help Beijing win the South China Sea without firing another shot

Related: US, EU investors put Philippine plans on hold | The Philippine Star Investors from the US and Europe are now having second thoughts on the Philippines, with several manufacturing and business process outsourcing (BPO) companies opting to put their investments on hold while some are choosing to take them elsewhere. A number of trade and investment missions to the country are likewise being cancelled, officials from US and European business groups in the Philippines told The STAR.  // expect China to fill the void

Related: The Philippine pivot: Duterte readies huge business delegation for Beijing visit | Reuters About 250 Philippine business executives will visit Beijing with President Rodrigo Duterte next week as he puts aside years of hostility to seek a new partnership with China at a time when tensions between Manila and its traditional ally, the United States, are mounting. There has been no announcement about the delegation, but business groups and government officials said registration to join Duterte on his Oct. 19-21 visit had been oversubscribed.

Related: Behind Duterte’s Bluster, a Philippine Shift Away From the U.S. – The New York Times But beyond the blasts of hyperbole — he recently compared himself to Hitler — lies a real and potentially historic shift in Philippines foreign policy. In public statements and interviews during the past week, Mr. Duterte’s top foreign policy advisers said he was seeking to break the Philippines out of the United States’ orbit and signal to China that he is ready to negotiate closer ties after years of wrangling over its military presence in the South China Sea. The move is a radical departure for a country that has historically been the most dependable American ally in Southeast Asia, and could undermine Mr. Obama’s so-called pivot to Asia, a keystone of his foreign policy. That strategy depends on American allies to counter China’s increasing power in the region.

Related: Philippines to open giant rehab center soon, funded by China tycoon | Reuters The center, located in a military camp north of the capital, Manila, was paid for by Chinese philanthropist and real estate developer Huang Rulun, whose net worth Forbes magazine has estimated at $3.9 billion. It will be built using 75 shipping containers of material imported from China, said Ubial. The government plans to build four more mega treatment and rehabilitation facilities elsewhere in the country and many donors, including Chinese, have come forward, she added.

4. Xi stresses Internet innovation, security – Xinhua Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, has called for more independent innovation in the Internet and information technology, as well as enhanced cyberspace security. Xi made the remarks Sunday afternoon at a study session attended by members of the Political Bureau of the CPC Central Committee. He called for the construction of a safe and controllable information technology system, and for major breakthroughs in the fields of high-performance computing, mobile communication, quantum communication, core chips and operating systems. At the meeting, Xi said the digital economy should play a greater role in pushing forward economic development and that the country’s Internet management and cyberspace security defense should also be enhanced. The Internet and information technology should be better used to advance social governance, Xi said, calling for a greater voice from China in setting the rules of the Internet, as well as greater efforts to build China into an Internet power. At the session, Wei Shaojun, director of the Institute of Microelectronics at Tsinghua University, gave a lecture on China’s strategy on developing Internet power. Noting that the Internet and information technology are developing rapidly and increasingly integrated with society, Xi warned of the gap between China and the world’s frontiers in relevant fields. // CCTV Evening News on the meeting 习近平在中共中央政治局第三十六次集体学习时强调 加快推进网络信息技术自主创新 朝着建设网络强国目标不懈努力 “deglobalizing” of the PRC IT stack remains a key goal, don’t expect foreign lobbying to change it in any substantive way

Related: 第三届世界互联网大会11月16日开幕 习近平将发表视频讲话-中新网 Wuzhen Internet Conference to be held 11.16, Xi will not attend but will give a speech by video. Which foreign Internet execustives will attend? Last year Linkedin’s Reid Hoffman was the big laowai get, as evidenced by his prominent positioning in various propaganda around the conference

5. Xi urges strengthened, innovative social governance for “safe China” – Xinhua Chinese President Xi Jinping has called for strengthened and innovative social governance, stressing the need to improve systems to prevent and forecast risk. Xi, general secretary of the Communist Party of China (CPC) Central Committee, made the remarks in a prepared statement about the country’s social management that was released Wednesday. The statement was delivered by Meng Jianzhu, head of the Commission for Political and Legal Affairs of the CPC Central Committee, at a national conference on public security governance held on October 10 and 11. “More efforts should be made to build a safe China at a higher level and further enhance people’s sense of security,” Xi said. // Two Wednesday CCTV Evening News reports on this: 习近平就加强和创新社会治理作出重要指示强调 完善中国特色社会主义社会治理体系 努力建设更高水平的平安中国  and 全国社会治安综合治理创新工作会议召开 so does forecasting risk mean a Minority Report approach?

Related: Snooping in the Bathroom to Assess Credit Risk in China – The New York Times Extensive consumer databases are not in place for lenders to check, but companies are scrambling to crack the credit code.  //  will this data also be available to the relevant organs for social governance (a rhetorical question I would guess…)

6. Hollywood’s dangerous obsession with China – LA Times China is something new for filmmakers and the U.S. government — a nation of grave concern to us that we also want to sell to and cooperate with. If a free culture is essential to our national well-being, it matters that the U.S. is surrendering its ability to respond to this historic challenge through film. Congress is right to worry that Hollywood’s global business model has implications for national security. The film industry needs to prove it is protecting creative freedom in the face of Chinese pressures and temptations, before the invitations arrive from Capitol Hill. Robert Daly is director of the Kissinger Institute on China and the United States at the Wilson Center in Washington. He was a cultural exchange officer at the U.S. Embassy in Beijing, and later an actor, producer and program host on Chinese TV. //  Robert Daly a very knowledgeable and reasonable person, not one prone to “reds under the bed” scaremongering, so this is a noteworthy op-ed…momentum seems to be building for a backlash against PRC forays in US media

Related: Why DC Started Caring About Dalian Wanda Group and China in Hollywood-TheWrap as members of Congress have plenty of issues to occupy their minds and public pronouncements aside from Chinese investments in entertainment companies, one instrumental factor in the recent string of fusillades from Capitol Hill has been a campaign by Richard Berman, the president of D.C. lobbying firm Berman & Co.

Related:  Jack Ma, Spielberg Strike Deal to Bring Hollywood to China – Bloomberg Fellow Chinese billionaire Wang Jianlin’s Dalian Wanda Group Co. has been among the most aggressive in its overtures. It bought “Jurassic World” co-producer Legendary Entertainment and has agreed to co-finance and market releases in China for studios including Sony Pictures. Wanda, now said to be eyeing Golden Globes show-runner Dick Clark Productions, also runs the world’s biggest chain of movie theaters after buying AMC Entertainment. Other Chinese players investing in studios include Fosun Group and Huayi Brothers. But the rapid pace of acquisitions has some in Washington spooked. Lawmakers have called for an overhaul of regulations to give the U.S. greater ability to scrutinize and block Chinese investment in U.S. media, as well as force lobbyists acting for the Chinese to register their interests.

Related: Omission of Tibet in ‘Doctor Strange’ Pays Off With November China Release – China Film Insider In the original Marvel comics, Swinton’s character, the Ancient One, is portrayed as a mystical male Tibetan mentor for Cumberbatch’s character Stephen Strange. But in the upcoming film, the character’s ethnicity has been changed to Celtic and gender to a woman, prompting some to accuse Marvel of “whitewashing” the character. Protests gained steam earlier this year when Doctor Strange screenwriter C Robert Cargill argued on the Double Toasted Podcast that Tilda Swinton was cast partly as a political move to prevent the Chinese government from banning the film.

Related: U.S. Lawmakers Urge Greater Scrutiny of Chinese Corporate Purchases – NYTimes In a list of nine questions at the end of the letter, the signers also asked whether the committee sufficiently reviews Chinese angel or venture capital funds being established in the United States, as well as Chinese investment in technology accelerators and regulators.

7. New Restrictions Show Beijing’s Growing Concerns of Property Bubble-Caixin Last week’s long National Day holiday was a turbulent time for China’s overheated real estate market, as a growing number of cities rolled out new restrictions to cool prices during a time that’s traditionally a prime season for home sales. The next major signal will come in December at the Central Economic Work Conference, the Communist Party’s top economic agenda-setting meeting, which could set the tone for how Beijing will manage the housing market in the year ahead. That meeting could show how housing inventories will be reduced and could stress more localized policies to squash an asset bubble and channel funds back into the real economy. // so where will the liquidity go now? back to stocks? to bitcoin?

Related: China’s Regulators Plan Tighter Control of Funds Into Property – Bloomberg Authorities including the central bank, the China Banking Regulatory Commission and the China Securities Regulatory Commission aim to tighten control on speculative real-estate investments and money involved in land transactions, said the people, who asked not to be identified because the information isn’t public. The people didn’t provide further details.

Related: 央媒:当公司主业收益被炒房抛在身后,一切经济转型都是空谈地产界澎湃新闻-The Paper 抛开上市公司纷纷卖房传递了什么样的楼市信号不谈,这一现象背后所透露出的当前中国经济最为扭曲的一面,就足以值得我们警惕:当其主业产生的收益被“炒房”远远抛在身后时,一切经济转型都是空谈。一方面,“炒房”带来了超高收益,会诱导越来越多的社会资金从实体经济中抽离出来,流向房地产市场,导致资金“脱实入房”的出现,进一步恶化实体经济的发展空间。另一方面,房地产价格的高涨,会进一步抬高个人创业、企业创新转型的租金以及其他成本,抑制整个经济体的创新发展动力。实际上,在超高的投资收益的诱惑下,越来越多的上市公司正在把触角伸向房地产市场。WIND统计数据显示,截至2016年上半年,两市共计有1308家上市公司持有投资性房地产,合计到5950.79亿元,此外,新三板共有521家企业拥有“用以出租或短期出售”的房产,价值合计达117亿元。

8. In search of China’s hidden credit | FT Alphaville Mr Chen estimates that adding hidden credit pushes China’s total debt-to-GDP ratio from 244 per cent to 231 per cent and growth in credit outstanding in the first quarter to 18 per cent from 16 per cent. He writes that “the trajectory (of credit growth when hidden credit is included) … is not very different from the simple sum of private-sector credit (i.e., TSF) and government bonds, and for most purposes that will still be a fine indicator.” Ms Wang broadly agrees. Her adjustment for hidden credit adds about eight percentage points to China’s total debt-to-ratio and raises credit growth to 17 per cent in 2014 and 2015 from 14.6 per cent and 15.2 per cent before the adjustment. She nicely sums up the takeaway from the analysis:

AnchorBUSINESS, ECONOMY AND TRADE

Former Deputy Head of China Development Bank Caught in Graft Net-Caixin A former vice president of China Development Bank (CDB), one of the big three policy lenders, has been arrested on allegations of bribery and illicit sex amid an ongoing investigation, Beijing Business Today reported Monday, citing a source from the top prosecutor’s office. Yao Zhongmin, 64, served as the deputy party secretary of the bank from 2008 to 2013 and was also the chairman of the CDB’s board of supervisors.

Hangzhou Becomes Latest City to Submit Tougher Rules for Ride-Hailing Businesses-Caixin The draft guidelines announced Monday require drivers to have a local household registration, or hukou, or to be a long-term, tax-paying resident of the city holding a temporary residence permit for at least six months before registering with a ride-hailing company. Hangzhou regulators also proposed a slew of detailed technical requirements and age limits for vehicles that can be used for commercial purposes. The official statement said the rules will come into effect on Nov. 1, and will be tried out for a year before they are finalized. Hangzhou’s move follows a spate of similar draft restrictions rolled out over the weekend by large cities, including Beijing, Shanghai, Guangzhou and Shenzhen on Saturday, and Chongqing and Tianjin on Sunday.

Follow the Money » China’s September Reserves, and Q2 Balance of Payments The implication of this view is that the market is (still) betting on where it thinks Chinese policy makers want the currency to go. As long as the market thinks China wants to depreciate one way or another against a basket after Hangzhou and the SDR decision, outflow pressure will continue. The alternative view is that Chinese residents want to get out of Chinese assets independently of the expected path of the yuan, and that the controls put in place in the spring are starting to show a few more leaks. The weaker fix on Monday doesn’t really settle this debate; the fix was below the symbolically important 6.7 level against the dollar, but was also broadly consistent with maintaining stability against the CFETS basket. There isn’t yet enough information to determine if China’s current policy goal is stability, or a stable pace of depreciation.

PBOC Fuels Depreciation Talk as It Weakens Fixing for Sixth Day – Bloomberg The PBOC set its daily fixing at 6.7258 against the dollar, extending a six-day weakening run to 0.9 percent. The onshore yuan rose 0.05 percent to 6.7152 as of 4:57 p.m. in Shanghai, after dropping to a six-year low of 6.7230 earlier in the day, while the offshore rate climbed 0.1 percent. The Chinese currency has fallen 6.5 percent against a 13-currency index this year.  // just after added to IMF’s SDR. Anyone shocked, and IMF have any regrets?

China Money Network − Chinese Regulator Approves Back-Door Listing Of SF Express The back-door listing plan of China’s largest express delivery firm S.F. Express has been approved conditionally by Chinese securities regulator, paving the way for the transaction to press ahead toward completion in the next couple of weeks. S.F. Express, backed by CITIC Capital Holdings Ltd., Oriza Holdings and China Merchants Group, said in May that it planned to conduct a reverse merger with Shenzhen-listed Maanshan Dingtai Rare Earth & New Materials Co., Ltd. in a deal that values the express delivery firm at an estimated RMB44.8 billion (US$6.8 billion).

Trump’s Muse on U.S. Trade with China – The New Yorker Trump’s views on trade are crude: there are winners (them) and losers (us), and there is one simple solution that will fix everything (threat of a trade war). How Trump came to these views is not totally clear, but his thinking, especially on trade and China, has certainly been influenced by Peter Navarro, a professor of economics and public policy at the University of California, Irvine. Being the only economist—and one with a Harvard Ph.D. at that—on Donald Trump’s economic team, Navarro provides a patina of legitimacy. (The others on Trump’s economic team are businesspeople who donated to the campaign and several people from the far right of Republican economic thought.) Navarro’s views on trade and China are so radical, however, that, even with his assistance, I was unable to find another economist who fully agrees with them. Should Donald Trump overcome the odds against him now and be elected President, Navarro would likely become the single most powerful economic adviser in the United States.

AnchorPOLITICS AND LAW

Xi stresses implementation of reform measures – Xinhua A series of central documents were also approved at the meeting, covering issues ranging from disaster relief, senior care, production safety, mobile networks and real-name registration systems. China will make more efforts to protect rivers and lakes, act against data fraud, improve the accuracy of statistics, and integrate socialist core values into the rule of law, according to the meeting. Administration reforms in developed towns will be advanced, and urban and rural land planning pilots will be implemented at the provincial level. // 8 minute Tuesday CCTV Evening News report on the meeting 

Speak Not of Lawyers Speaking Out – China Media Project – Medium Caixin-One of China’s leading professional news websites is slapped with a two-month suspension on content sharing after it posts a sensitive report about criticism of revised regulations on law firms.

Former High Party Official Gets Suspended Death Sentence for Bribery-Caixin Under Chinese law, a death sentence with a two-year reprieve can be commuted to a life sentence, and the jail term can be shortened based on the prisoner’s conduct. But in October 2015, the national legislature amended the country’s penal code to allow a court to rule against the shortening of a jail term in a bribery case in which a large sum of money was involved or if the offender had caused grave damage to state or individual interests. The court in Anyang ruled against allowing Bai [Enpei] to apply for parole once his sentence is commuted to life imprisonment. Bai is the first ministerial-level official whose right to parole was revoked.

Is the Growing Pessimism About China Warranted? | ChinaFile n a special symposium of articles just published in The Washington Quarterly, five leading China specialists have weighed in on these issues: David M. Lampton, David Shambaugh, Minxin Pei, Orville Schell, and Jeffrey Wasserstrom. These long-time China hands unpack the complexities and uncertainties, explore the forces shaping China’s future, and offer several alternative pathways the regime and nation may follow in the years ahead. Is the growing international pessimism about China’s internal and external behavior warranted?

Convicted Chinese protest leader renounces bribery confession after getting heavy sentence | South China Morning Post Former Wukan village chief Lin Zuluan withdrew his confession during a hearing into his appeal against a 37-month sentence and 200,000 yuan (HK$230,000) fine handed down last month by a Chancheng district court in Foshan.

Wu Zhenglong appointed Nanjing boss after weathering political storms | South China Morning Post Wu is one of few direct subordinates of disgraced Chongqing party boss Bo Xilai to survive the subsequent political storm and make his way further up the political ladder. Many of his former colleagues in Chongqing were purged during the clean-up of the rank and file after Bo’s downfall. He was “parachuted” into Taiyuan city as party chief and a standing member of the Shanxi provincial party committee in August 2014 in the middle of a political storm as an intense anti corruption crackdown brought down many officials in the province. // Caixin has more interesting details 吴政隆任江苏省委副书记兼南京市委书记 

中共中央党校 – 学习时报网_永葆赤子之心 对党绝对忠诚    作者:刘家义    2016-09-29 09:42:42

站在历史的深厚基础上走向未来  deputy director of the Central Party Documentary Research Office on the importance of Party History // 学习习近平总书记关于党史国史的重要论述 2016年09月23日 08:00:00 来源:《求是》2016/19  作者:孙业礼-(作者:中共中央文献研究室副主任)// 党史国史是我们的营养剂,是我们的精神家园和安身立命的根本。国内外敌对势力往往拿党史国史做文章,竭尽攻击、丑化、污蔑之能事,企图动摇我们的根本。领袖人物、英雄人物是他们抹黑、攻击的主要对象。

AnchorFOREIGN AND DEFENSE AFFAIRS

Xiangshan Forum reaches consensus on maritime security – Xinhua About 500 defense officials and scholars gathered to discuss global security cooperation at the forum. Cai Yingting, president of the PLA Academy of Military Science, said consensus had been reached on five aspects, when delivering his concluding speech. Maritime disputes should be handled by directly involved parties through consultations and negotiations in line with the UN Charter and the international law and with respect to historical facts, according to the consensus reached at the forum.

China, Russia criticize U.S. missile defense plan – Xinhua THAAD, an advanced missile defense system the United States plans to deploy in the ROK, apparently does not conform to its alleged purpose and is inconducive to the peninsula’s peace and stability, Cai said at a press briefing jointly held by Chinese and Russian armed forces on the sidelines of the 7th Xiangshan Forum in Beijing. “China resolutely opposes the THAAD plan and strongly urges the United States and ROK to change their minds,” he said.

中外将星云集的场合 5位中国强硬派再放狠话|南海|常万全_新浪新闻 “政事儿”(微信ID:gcxxjgzh)注意到,此次香山论坛,国务委员兼国防部长常万全、中央军委联合参谋部副参谋长孙建国、中国人民解放军军事科学院院长蔡英挺等均有出席,而针对南海问题、航行自由、朝鲜半岛、台湾问题等国际焦点,中方与会将领、官员及学者均进行了强硬表态。

A framework for U.S. policy toward China | Brookings Institution – Jeff Bader There are three broad options for the United States to respond to the China challenge: 1) accommodation; 2) containment, confrontation, or untrammeled strategic rivalry; and 3) global cooperation paired with regional resolve. The third option is best, in my view, because we need to find a middle course that would safeguard the array of conflicting interests we have. U.S.-China cooperation is possible on many global issues, which has already been demonstrated on climate change, cooperation in the P5+1 negotiations to roll back Iran’s nuclear weapons program, and foreign assistance, for example.

Chinese military’s anti-graft drive targets mid-level officers to root out disgraced leaders’ influence | South China Morning Post The top brass of the People’s Liberation Army has expanded its anti-graft targets to include mid-level officers to root out the harmful influence of Guo Boxiong and Xu Caihou, the disgraced former top leaders of the army. All party chiefs from PLA departments, and units under the powerful Central Military Commission held a study meeting on Monday to come up with measures to eliminate all adverse effects of Guo and Xu’s leadership, in the aftermath of their downfall, according to a report published by the PLA Daily’s social media.

Obama’s Legacy in US-China Relations: A Conversation with Evan Medeiros by CSIS The relationship between the United States and China is one of the most important bilateral relationships in the world. During the course of Obama’s tenure, the opportunities to cooperate with China on key global challenges expanded, but at the same time, Chinese interests clashed on several issues and strategic competition increased. In this episode, ChinaPower sat down with Evan Medeiros to discuss the president’s legacy in relations with China and the evolution of the bilateral relationship that President Obama will be handing off to the next U.S. president in January 2017.

South Korea vows greater force against China fishing boats | Reuters South Korea said on Tuesday it would use greater force, including firearms, against Chinese boats fishing illegally in its waters and summoned China’s ambassador to protest against a clash between a Chinese vessel and a coast guard boat.

China denies allegations its peacekeepers abandoned South Sudan posts | Reuters The Center For Civilians in Conflict (CIVIC) said in a report published last week that Chinese peacekeepers with the United Nations Mission in South Sudan (UNMISS) had withdrawn from a civilian protection zone in July after coming under attack. The CIVIC report said the Chinese peacekeepers abandoned their posts in the South Sudanese capital of Juba on July 11, a day after a rocket-propelled grenade had exploded near a Chinese armored personnel carrier, killing two Chinese soldiers.

Ilham Tohti, Uighur Scholar in Chinese Prison, Is Given Human Rights Award – The New York Times The scholar, Ilham Tohti, 46, an economics professor at a Beijing university at the time of his arrest in 2014, was selected by the Swiss-based Martin Ennals Foundation for its annual award, known as the Nobel of human rights prizes, in recognition of two decades of trying to foster better ties between Uighurs and Han Chinese.

Full text of Chinese president’s signed article in Cambodian newspaper – Xinhua By H.E. Xi Jinping, President of the People’s Republic of China At the invitation of King Norodom Sihamoni, I will pay a state visit to the Kingdom of Cambodia. This will be my first visit to Cambodia as the President of China, a visit I look forward to with great anticipation.

China vows to address ‘challenges facing veterans’ after protest – Global Times China’s military authorities on Wednesday pledged to continue addressing the difficulties facing some military veterans, after over 1,000 of them gathered outside a military building to protest their dismissal. China’s Ministry of National Defense confirmed the gathering with the Global Times in a statement sent by its Information Bureau on Wednesday, saying that in recent years some veterans have been facing personal and employment problems, and that they have appealed with letters and calls.

Xi calls for reforms on global governance – Xinhua Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, has called for closer cooperation to pursue reforms to the global governance system and advance the noble cause of peace and development for mankind. Xi made the remarks Tuesday at a study session attended by members of the Political Bureau of the CPC Central Committee. Gao Fei, a professor with the China Foreign Affairs University gave a lecture at the session with the themes of the G20 summit and global governance system reform, As the international balance of power has shifted and global challenges are increasing, global governance system reform has emerged as a “trend of [the] times,” Xi said.

Russia May Be Hacking Us More, But China Is Hacking Us Much Less – NBC News Analysts say the success may hold lessons for how the U.S. should deal with Russia, which at the same time has stepped up a different sort of hacking campaign that officials says is aimed at undermining confidence in the American election. The change in China’s behavior “has been the biggest success we’ve had in this arena in 30 years,” said Dmitri Alperovitch, co-founder of Crowdstrike, a cyber security firm that tracks computer network intrusions.

探访西沙海权守护者:民兵配合赶走“菠萝船” 战士苦训连脱三次皮 【环球时报赴三沙特派记者 马俊】作为中国陆地面积最小、总面积最大的城市,海南省三沙市成立4年多来一直挺立在国家主权斗争的第一线。这里的军民不仅常年与外籍非法渔船斗智斗勇,并直面域外大国对我主权的侵扰行为,甚至还遭遇到一些西方媒体的诋毁。这些报道肆意歪曲中国的正常海上维权行动,尤其是对三沙民兵更是充满各种妖魔化的描述。《环球时报》记者近日登上西沙多个岛礁,探访这些南海守护者,听他们讲述守护海权的故事。

军报:守卫南海敢于斗争 守好老祖宗留下的寸土寸海-中国新闻网 习主席关于推动我国海洋强国建设不断取得新成就的重要论述,极大地凸显了海洋的战略地位和作用,对于实现中国梦强军梦、建设世界一流海军至关重要。   建设海洋强国是习主席审时度势作出的战略抉择。随着国家战略利益的不断拓展,海洋越来越成为国家安全与长远发展的命脉所在,中华民族振兴的希望所在。习主席准确把握时代特征和世界潮流,深刻总结世界主要海洋国家和我国海洋事业发展历程,站在国家发展战略全局的高度,在全面建成小康社会决定性阶段果断作出这一重大决策部署,迈出了由海洋大国向海洋强国转变的坚实步伐。习主席的重要论述,把建设海洋强国提升为国家战略、国家意志,充分体现了对国家发展战略的深谋远虑和战略筹划。海军因海而生、向海而兴,维护国家海洋权益、建设海洋强国,责无旁贷。

Does a San Gabriel Mission Playhouse gala support China’s Communist Party? Activists say yes “The American Chinese Culture Association presents an 80th Anniversary Gala for the Long March” is how the event is billed by the Mission Playhouse. The Long March was a year-long retreat that began in October 1934 by the Red Army of the Communist Party of China to evade the pursuit of the Chinese Nationalist Army. The march, which was a series of shorter marches through southwest China, represents the start of the rise to power for Mao Zedong and communism in China. Rocky Chang, an activist who wants the gala to be canceled, said the event’s focus on the Long March gives the appearance of celebrating the Red Army’s escape as well as the Communist Party of China.

AnchorHONG KONG, MACAO AND TAIWAN

At Hong Kong Swearing-In, Some Lawmakers Pepper Their Oath With Jabs – The New York Times One new legislator, Sixtus Leung, known as Baggio, took his oath with a banner draped across his shoulders that read “Hong Kong is not China.” And instead of swearing allegiance to the “Hong Kong Special Administrative Region of the People’s Republic of China,” he pledged allegiance to a “Hong Kong nation.” Mr. Leung, 30, a founder of the political group Youngspiration who advocates independence for the former British colony, then read the official text of the oath, as required by law. Except that he replaced the word “China” with the derogatory “Shina.”

Taiwanese President Tsai: Taiwan Won’t Succumb to China’s Pressure – China Real Time Report – WSJ Ms. Tsai sat down with The Wall Street Journal to discuss her first four months in office. Here’s a transcript of the interview:

Taiwan’s President Calls for New Talks With Beijing – The New York Times In her first National Day speech, President Tsai Ing-wen called for talks between Taiwan and the mainland government, but she emphasized that Beijing should acknowledge Taiwan’s choice to become a democracy. China considers Taiwan to be a renegade province, while the self-governing island Ms. Tsai leads traces its roots to the formation of the Republic of China in 1911 that overthrew the last Chinese dynasty, only to lose the Chinese civil war to the Communists in 1949.

No force can stop cross-Strait reunification: mainland official – Xinhua Denying the 1992 Consensus and seeking to cut off cross-Strait ties and incite confrontation will only lead to a dead end, a mainland spokesman has told Taiwan’s leadership, adding that no force can stop cross-Strait reunification. An Fengshan, a spokesman for the State Council Taiwan Affairs Office, made the remarks in response to Taiwan leader Tsai Ing-wen’s speech earlier on Monday.

社评:香港《成报》的突变必有黑幕评论环球网 由于《成报》发起的攻击只有极端政治立场,而无通常的事实论证逻辑,一看就是在编故事,扣帽子,香港一些新闻从业人士私底下笑称这家报纸如今成了“大纪元成报”。“大纪元”是法轮功在海外办的专事造谣中伤的媒体的名字。 《成报》出现如此强烈的异动,不会是出于普通政治原因。因为香港的“反中”媒体有多家,它们也没有像《成报》这样干过。换句话说,“反中”也有规律,而《成报》显然跳到了规律之外。

AnchorTECH AND MEDIA

Netflix May Be the Latest Tech Giant to Stall in China | Vanity Fair Investors should applaud Netflix’s decision to not jump into China, trying to build a Netflix China in an already overfunded and over-saturated market would likely not end well  //  In a conversation with The New Yorker editor David Remnick on Friday at a tech conference hosted by the magazine in New York City, Hastings said his company has yet to work with China, and based on Chinese regulators’ attitudes toward working with iTunes and Disney’s movie offerings, he doesn’t expect a relationship to develop.

How Youku Allocates Its Hefty Content Budget and Commercialization Plans – China Film Insider “In terms of content strategy, Youku has been spending a lot of money, a lot more than we did before,” said Lerch. The company has poured RMB 600 million (around US$90 million) and RMB 1.1 billion in original contents and licensed contents respectively in 2015. The figure is expected to jump to RMB 2 billion and RMB 6 billion this year.

Baidu sets up $3b fund for later-stage startups-TechInAsia Baidu Capital will focus on mid- and later-stage startups, with most rounds being in the range of US$50 to 100 million, said the firm today in an announcement. The funding will either be in US dollars or Chinese yuan.

卡位客厅经济 阿里推家庭娱乐战略公司频道财新网 //  Caixin on Alibaba’s plan to dominate home entertainment

16 Observations on Livestreaming in China – Andreessen Horowitz roughly 46% of China’s internet population used a livestreaming app in June 2016. Huachuang Securities estimated the mobile livestreaming market opportunity to be a $1.8B industry last year, expanding to $15.9B by 2020. Credit Suisse stated in its September research report that it believes the Chinese personal livestreaming market will be $5B next year — already just $2B less than China’s movie box office total ($7B) and half the size of its mobile gaming market. These are startling figures given that the livestreaming explosion in China really only started a year ago.

AnchorSOCIETY, ART, SPORTS, CULTURE AND HISTORY

China to settle 100 mln migrants in cities by 2020 – Xinhua The government plans to annually help over 13 million migrants seek urban hukou (household registration) that will qualify them for social benefits such as health care, over the next five years. The plans are part of an attempt to lift the percentage of people living in cities and having the relevant hukou to 45 percent by 2020, according to a statement released by the State Council. The percentage of people living in cities and having local hukou, stood at 39.9 percent at the end of 2015. The percentage of the entire population living in cities was 56.1 percent, as many migrants live in cities without the relevant local hukou.

Chinese Public Sees More Powerful Role in World, Names U.S. as Top Threat | Pew Research Center  The United States, another principal actor on the world stage, gets mixed reviews in China. Half give the U.S. a favorable rating, while 44% offer a negative one. But 52% think the U.S. is trying to prevent China from becoming an equal power; only 29% believe the U.S. is willing to accept China’s rise. And the Chinese public names U.S. power and influence as the top international threat facing the country. Just under half (45%) say the U.S. is a major threat – the highest percentage among the seven potential threats tested on the survey.

Fading World Cup hopes a rude awakening for China’s soccer dream | Reuters China’s ambitions to become a global soccer power are facing a stark reality check after the national team’s coach stepped down following defeats to Uzbekistan and war-torn Syria, leaving in tatters a bid to qualify for the 2018 World Cup. Chinese coach Gao Hongbo resigned after a 2-0 defeat to Uzbekistan on Tuesday night in Tashkent, days after losing to Syria. The slump underlines the challenge facing President Xi Jinping, who wants China to host – and win – the World Cup.

Musicians Meld Traditions of Two Continents – WSJ Banjo player Abigail Washburn and guzheng master Wu Fei will play Bela Fleck’s Acoustic Planet Tales series at Symphony Space

AnchorENERGY, ENVIRONMENT, SCIENCE AND HEALTH

Central Government Orders Tianjin to Review Decision on Incinerator-Caixin Residents of village claim developer of $44.8 million incinerator used falsified questionnaires to get project go-ahead

China says 55 firms severely exceeded pollution limits in the second-quarter | Reuters The ministry’s official publication, China Environmental News, said the regions with the most offenders were Inner Mongolia and Liaoning in the industrial northeast, and the country’s top steel producing province, Hebei, which surrounds the capital Beijing.

Top Chinese research labs demand independent inquiry into scientist’s controversial DNA claims | South China Morning Post About a dozen top lab researchers on the Chinese mainland said they could not replicate a local scientist’s experiment hailed as a breakthrough in engineering human and animal genes. The concerns have led to a call for a thorough independent investigation into claims made in May of a breakthrough involving NgAgo – a new tool for editing genes – by a poorly funded team led by Dr Han Chunyu of Hebei University of Science and Technology.

AnchorBEIJING

北京市属高校加大京外招生限制政经频道财新网 专家认为,压缩京外招生人数,恐使北京市属高校都成为北京人的高校,有违公平,也难让市属高校满意

AnchorJOBS AND EVENTS

Event Announcement: Chinese Public Opinion and the Durability of Chinese Communist Party Rule Wednesday, October 26, 2016 3:00 pm-4:30 pm/ Bruce Dickson, Tang Wenfang

Application for 2016-2018 Public Intellectuals Program | National Committee on United States – China Relations Timeframe  Two years, from December 2016 to fall 2018.

Fellows Program – American Mandarin Society excellent program, applications due soon  //  The program, conducted entirely in Chinese, is built around a one-week trip to Shanghai and Beijing to learn from experts and professors from Party-affiliated schools who train rising Chinese leaders. AMS Fellows will engage with these experts in order to develop an in-depth understanding of China’s policy processes, goals, challenges, and perspectives, while honing their Chinese-language skills.

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