The Sinocism China Newsletter For 09.08.12

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Just links today:

BUSINESS AND ECONOMY

China to Spend $156 Billion on Infrastructure – WSJ.com – the government hasn’t offered a combined figure for the projects. Nomura economist Zhang Zhiwei estimated that the various projects, along with recently announced plans for new airports and energy facilities, would amount to about one trillion yuan ($158 billion) of spending, or about 2% of China’s GDP, spread over four years. “We believe the decision for the Chinese government to intensively announce these projects over the past two days signals a significant change in its policy stance from the incremental and reactive approach to a more decisive and proactive approach,” he said in a note.

Here Are All Of The Infrastructure Projects China Just Approved In One Giant Slide – Business Insider – This slide from Nomura highlights every project approved by the National Development and Reform Commission

China’s Stocks Rise Most in Eight Months on Stimulus Bets – Bloomberg – China’s stocks rose, driving the benchmark index to its biggest gain in eight months, as a government plan to build more roads fueled speculation policy makers will introduce more economic stimulus measures. Sany Heavy Industry Co. (600031), the nation’s biggest machinery maker, jumped the most since February 2009 and Anhui Conch Cement (600585) Co., the country’s largest cement maker, had its biggest surge since July 2010 on optimism demand for their products will rise. SAIC Motor Corp. (600104), China’s biggest carmaker, climbed to a three-week high after sales increased in August.

证监系统下达维稳令_投资头条_财经国家新闻网 – stability preservation” order sent 2 securities regulatory system, last 2 times (08 & 09) stocks popped// 相关监管部门日前就中国股市的现状征求业内意见,希望券商能寻找到“中国股市上涨的理由”

China’s securities regulators take measures to stabilize marketWantChinaTimes.com – The China Securities Regulatory Commission is taking steps to stabilize the country’s stock market, including holding a videoconference with the representatives of local securities regulators to identify the risks in the capital market, Shanghai’s Oriental Morning Post reports… On each of the two previous occasions in 2008 and 2009, when similar market stability videoconferences were held, the stock market reportedly staged rebounds.

罕见的价值,罕见的上涨!_21世纪网-21cbh.com – talking up A shares is official policy now. //

UBS, Goldman Join Chorus of Gloom on China – China Real Time Report – WSJ – probably a sign that bottom is near?// After all the grim economic data out of China recently, it was bound to happen: One after the other, many of the largest global banks are cutting their growth forecasts for the world’s second-biggest economy.

Hu: Proactive fiscal policy will continue |Latest News |chinadaily.com.cn – China will continue to pursue a proactive fiscal policy and a prudent monetary policy, President Hu Jintao said Saturday while saying that the Chinese economy is facing “notable downward pressure”.

PBOC stops liquidity injection through reverse repos |Markets |chinadaily.com.cn – RRR or rate cut coming this weekend?// The People’s Bank of China, the central bank, halted its efforts to inject liquidity into banks through open market operations this week, renewing speculation that the PBOC may move to ease its monetary policy soon.

8月经济数据9日公布 CPI涨幅料重回”2″时代 新华社——经济参考网 – August CPI to be released Sunda, expectations for it to be back above 2%, may limit loosening prospects//

[新闻1+1]运动场上无运动!(20120907)_新闻台_中国网络电视台 – CCTV News show looks at the wasteful building of stadiums/sports facilities by local governments in search of “political accomplishments”//

Do it right, Mr Left |Opinion |chinadaily.com.cn – Xinhua takes on Citron again// Even surnamed Left, a short-seller should still do business in the right way. Andrew Left, founder of US short-seller Citron Research, has failed to provide ample justification for his publication of erroneous data in investment reports concerning United States-listed Chinese hi-tech companies, such as Qihoo 360.

Heard on the Street: Rebalancing a Divided China – WSJ.com – Conventional wisdom says that China’s poor save too much—improving the social safety net would encourage them to hit the shops and rev the consumption engine. The facts disagree. A 2011 survey from China’s South Western University of Finance and Economics found that 55% of China’s households had little or no savings for the year. That busts the myth of industrious farmers and migrant workers saving to pay for education, health care and pensions.//Here is the full study report, in Chinese

温商人物志(2)南存辉_视听频道_财新网 – Caixin has a video series profiling Wenzhou businessmen//

浙江民间借贷从“熟人交易”转向“以钱炒钱” 深度报道——经济参考网 – Economy Reference News special report on Zhejiang informal lending networks/

李宁危局:超级丹难救场,老王子重出山|李宁|林丹阿迪达斯|_21世纪网 – long article on the travails of the Li Ning Sportswear firm. Have seen a few analysts pont to Li Ning’s troubles as a sign of retail sales slowdown in China, but they are missing that many of Li Ning’s problems are company specific and the firm is a not a good indicator for retail sales in China.//

China Price War Draining Jobs in Germany’s Solar Valley: Energy – Bloomberg – The European Union yesterday threatened to impose tariffs on solar panels from China, echoing a similar move by the U.S., as it opened a probe into whether Chinese manufacturers are selling them below cost, a practice known as dumping. Tariffs however will come too late for Sovello and many German firms.

Why Expat Businessmen Are Leaving China – Business Insider – this story certainly has legs. But if reporters are going to bring up the That’s magazine mess they should not assume the foreigner’s version of the story includes the whole truth. what happened to Kitto over That’s sucks, but what do you expect if you are running a business illegally in China?//

Bank Loan Tricks Stain, Strain Steel Sector – Caixin Online – Some steel manufacturers and trading firms used product inventories as collateral for bank loans, then increased their money in hand by convincing another bank to exchange the lenders’ acceptance bills for cash. The strategy worked apparently because bankers between 2007 and 2010 too often failed to verify that acceptances were specifically tied to trading, said a Bank of China loan officer. The oversight apparently “fueled risky and speculative activities on the part of steel companies,” he said.

Big Deal — Courting Chinese Buyers – NYTimes.com– When the New York market dried up at the end of 2008, Sotheby’s International Realty turned its focus to Asia. The company dispatched one of its prominent brokers, Nikki Field, to travel to Asia to develop relationships with potential clients. She and her real estate partner, Kevin Brown, began making about four trips a year there, with a growing focus on mainland China. “We wanted to get out ahead of the world’s investment flow,” Ms. Field said.

Record Corn Imports by China to Drive Rally, Rabobank Says – Bloomberg – The biggest-ever imports of corn by China, the world’s largest livestock producer, may help sustain a record rally in Chicago that’s been driven by drought across the U.S. Midwest, according to Rabobank International. Shipments may climb to 7 million metric tons in the year starting Oct. 1 from about 5 million tons this year, Daron Hoffman, Shanghai-based director of research, said in an interview. That compares with a U.S. Department of Agriculture forecast for a 60 percent drop to 2 million tons in 2012-2013.

FT Alphaville » Why it doesn’t matter if China sells its USTs – Earlier this week Paul Krugman went out of his way to point out that if China stopped buying US bonds, it wouldn’t be the end of the world. We wanted to come back to some of his points, because well, we think they are pretty good.

 

POLITICS

Exclusive: China president-in-waiting signals quicker reform – sources | Reuters –Hu Deping represents an important constituency, good news if this is true. Xi stepping into a very hard job, hope he can live up to expectations// China’s president-in-waiting, Xi Jinping, has said the ruling Communist Party must embrace reform with fresh vigor to stave off social and economic malaise, sources said, citing accounts of comments he made at a meeting with a party reformer.Xi met the prominent reformer, Hu Deping, in the past six weeks, the sources said, in a gesture intended to show he was listening to voices calling for not only faster economic liberalization but also a relaxation of political controls.

俞正声或任国家副主席 十八大不进常委_多维新闻网 – Duowei saying Yu Zhengsheng won’t make the 18th standing committee. Mingjing had a similar report friday. interesting this is coming out now and simultaneously. true, or coordinated leak?//

新聞網: 江澤民:俞正聲沒必要“入常” – Mingjing news saying Yu Zhengsheng won’t make the 18th standing committee, mentions his defector brother yu qiangsheng as being one issue. //

Today’s China Readings August 6, 2012 | Sinocism – Duowei a month ago had bullish report about Yu Zhengsheng’s prospects..who really knows other than a handful of people? consider everything you read about the new leadership lineup as speculation, until perhaps the meeting is underway, when someone may get the real scoop// Duowei claims those six are Xi Jinping, Li Keqiang, Zhang Dejiang, Li Yuanchao, Wang Qishan and Yu Zhengsheng and that competition for the last seat is between Liu Yunshan, Zhang Gaoli and Wang Yang. Duowei claims in a separate report that Shanghai Party Secretary Yu Zhengsheng will be leaving his post by the end of August and moving to a new role in Beijing–8月底省部级官员再有异动 俞正声入京韩正掌沪_多维新闻网. We will know in less than 4 weeks whether or not Duowei is right about Yu.//Duowei was wrong

CHINASCOPE – Study Times Criticized Hu and Wen for Stalling Political Reform – Deng Yuwen, a deputy editor at Study Times, criticized Hu Jintao and Wen Jiabao in a commentary he wrote, titled, “The Political Legacy of Hu and Wen.” The commentary was published on caijing.com.cn in three installments on August 30, 31, and September 3, 2012.  In the second installment, Deng stated that during their ten years in power, Hu and Wen “created more problems than accomplishments” and they also brought about a legitimacy crisis for the Chinese Communist Party. The problems include the lack of political reform and more democracy. The commentary was soon taken down, although a search at caijin.com.cn still shows the title of the article.

 

FOREIGN AFFAIRS

Hu and Putin Get Warm and Fuzzy in Russian Far East – China Real Time Report – WSJ – most Chinese I know think the Russians are the near enemy, much more worried about them than the US// But all that has just been ice on the Champagne for the Chinese and Russians, who, by their own accounts, are having a grand old time discussing trade liberalization and the potential for economic cooperation in Russia’s sparsely populated Far East – a region Moscow is seeking to outfit with new infrastructure and build out as a trade and technology hub

TODAYonline China and the World: Prospering and progressing together – Prime Minister Lee Hsien Loong’s speech at the Central Party School in Beijing, China on Sept 6 // Turning to recent events, the South China Sea is a major issue in the heart of ASEAN’s own region. For ASEAN not to address it would severely damage its credibility. ASEAN must not take sides on the various claims, but it has to take and state a position which is neutral, forward-looking, and encourages the peaceful resolution of issues. The 6-point principles on the South China Sea recently proposed by Indonesia does that. ASEAN has accepted these principles. This is a positive development. We also hope that ASEAN and China will start talks on a Code of Conduct (COC) soon. ASEAN and China have wider interests at stake in the South China Sea issue too, besides sovereignty and maritime rights. Many countries are watching us closely. They will read how China deals with difficult bilateral problems with its neighbours as a sign of what China’s rise means for the world. They will scrutinise ASEAN to see if it can deal with difficult issues effectively. ASEAN and China must not allow this isolated issue to affect their overall positive relationship. The account between China and ASEAN is large and overwhelmingly positive, and should remain so.

China’s position on South China Sea consistent, clear: FM – Xinhua | English.news.cn –  China has sovereignty over the South China Sea islands and their adjacent waters, said Yang Jiechi… “This is based on sufficient historical and legal grounds,” Yang said… Disputes over the sovereignty of some islands should be solved through dialogue and negotiation.

China’s Self-Absorbed Nationalism – It’s Worse than It Looks / ISN – To many foreign observers, the Chinese people’s belief that their government should be more aggressive in its territorial disputes reflects a pugnacious form of nationalism that Beijing has deliberately cultivated since the end of the Cold War. Such pugnacity, Robert Sutter argues, bodes ill for the future.

Decoding the ‘voice of China’ through media reports | 八八吧 :: 88 Bar – The position of the Global Times is also important. On this source, frequently quoted as a voice of the more nationalistic sector of the Chinese body politic, Miller is especially cautious. In another Swaine footnote, she argues: “Despite the view expressed by some pundits, nothing published in the Global Times is ‘authoritative’ in any meaningful sense, ‘because the newspaper is a commercial vehicle and doesn’t stand for the People’s Daily, even though it is subordinate to that organ.’”

Li Bin–China and the New U.S. Missile Defense in East Asia – Carnegie Endowment for International Peace – Although these new installations would ostensibly be directed at the North Korean missile threat—not at China—U.S. intentions are questionable.  To avoid a confrontation, Washington and Beijing should prioritize establishing a constructive dialogue on conventional military issues in addition to the existing strategic nuclear dialogue.

 

TECH AND MEDIA

Internet freedom: Plus ça change | The Economist – Yahoo!’s Chinese operations, meanwhile, have been under the control of Alibaba Group, a Chinese internet company, since 2005. Chinese companies, though often listed overseas with significant foreign ownership, must co-operate with authorities in self-censorship, shutting down accounts and identifying users if they want to stay in business.

 

SOCIETY AND CULTURE

3 smugglers’ sentences stir debate |Society |chinadaily.com.cn – Three people who bought goods overseas to sell in China have been charged with smuggling and received severe sentences, triggering a heated discussion over whether the booming online purchasing agents industry has crossed a line. Li Xiaohang, 30, a former flight attendant, was sentenced to 11 years in prison for buying makeup from duty-free shops in South Korea and passing the items through customs as personal belongings instead of goods “many times” between 2010 and August 2011.

云南一所小学3名学生遇难 有教学楼交付2年开裂_网易新闻中心 – at least 3 students killed in latest earthquake, damage to several schools built in last two years//

Interview: Tufts University reviewing GM rice research on Chinese children: spokeswoman – Xinhua | English.news.cn – We are in the process of conducting a thorough review of the protocols followed in this research to ensure that the strictest standards were adhered to,” Andrea Grossman, assistant director of public relations at the university, told Xinhua in a written interview.

Medical ethics group OK’d GM rice test for Chinese kids — Shanghai Daily – A MEDICAL research institution in Zhejiang Province admitted yesterday it had approved a widely panned US-China joint project that used dozens of Chinese children as guinea pigs in a trial of a new type of genetically modified rice.

Courts Uphold Labor Camp Sentence Handed to Protestors – Caixin Online – Seven protestors that were sentenced to labor camps had each of their appeals for a sentence review rejected by courts in Hunan Province. Roughly one year ago, 25 petitioners knelt down before China’s national flag in Beijing’s Tiananmen Square and shouted slogans protesting the forced demolition of their property. Authorities in Changsha sentenced four people to 18 months of hard labor, 17 people to 12 months of hard labor and four people to prison sentences ranging from two and a half to three years. Since then, several of the protestors have continued to appeal for a sentence review.

Starved of memories – Globaltimes.cn– Great Leap Forward// In a cotton field near a village in Henan Province, two elegantly decorated monuments bear 72 names of villagers who starved to death over five decades ago. Their deaths were likely the tragic result of misguided thinking, instead of the claimed “natural disasters.” China is in dire need of recording the dark chapters of its modern history. This is never more true than for a disaster which claimed at least 10 million lives in just three years. A farmer in Henan has taken the first step. As a survivor who almost starved to death twice, he set up two memorials for the dead villagers in 2004, considered to be the first of their kind.

Censors monkey with China art show before 18th Party Congress | Reuters– (Reuters) – The pot-bellied official in a tan golf shirt paused in front of a poster-sized image for a few seconds, asked a member of his entourage to make a note of it, then continued to lead the group on its awkward march through the Shanghai Exhibition Center. A few hours later, the digitally manipulated photo of China’s legendary Monkey King facing Tiananmen Gate, by Beijing-based artist Chi Peng, was pulled from the wall, one of several works at the SH Contemporary Art Fair deemed unfit for display by Shanghai’s culture police.

 

ENERGY AND ENVIRONMENT

» The River Runs Red: Yangtze River In Chongqing Mysteriously Discolored Beijing Cream – perhaps a sign a lenient resolution of Bo Xilai case is near? or his blood turning the water crimson?…river color divination may be at least as accurate as pundit predictions…// On Thursday, residents of Chongqing woke up to find their beloved river the color of — pardon the dramatics — blood. Was Death heralding its arrival upon these shores? Would the end of our world bubble forth from these riparian banks? Authorities are currently investigating. The coloration could be due to silt, or industrial pollutants — which wouldn’t surprise us, considering something similar happened two months ago in Wenzhou, Zhejiang province when a latex factory disgorged many tons of a milky colloid into the Quxi River

Thanks for reading. The best way to see this daily post is to subscribe by email, especially if you are in China, as Sinocism is blocked by the GFW. You can also follow me on Twitter @niubi or Sina Weibo @billbishop. Feel free to donate through the button on the top right, and if there is a story you think I should include please send it to me. 

 

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