The Sinocism China Newsletter For 10.17.12

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

Just links today, watching the US Presidential debate, if you want some background on the election’s China rhetoric check out this week’s Dealbook column American Politics and Chinese Data:

BUSINESS AND ECONOMY

Fortress Turns Bullish on Yuan, Chinese Stocks on Stimulus Bets – Bloomberg – Fortress thinks it is a bad bet to buck Beijing// “We covered our positions related to Chinese shorts and are turning the other way,” Levinson, 42, said in a conference room at the fund’s office in the Southeast Asian city. “Policy makers are more likely to do something in the near term.”

Shrinking China Job Needs Show Why GDP Slowdown May Be Tolerated – Bloomberg – “With China’s shifting demographics, that benchmark should shift as well,” said Louis Kuijs, chief China economist for Royal Bank of Scotland Plc in Hong Kong, who previously worked for the World Bank in Beijing. Labor market resilience “reduces the perceived urgency of a major policy response,” he said…he working age population is growing at 0.5 percent a year now, one-third the pace of 10 years ago, Kuijs estimates. That means the benchmark growth rate may be 7 percent, he said.

Special Report: China’s other power struggle | Reuters– The reforms sought by the Communist leadership are limited nonetheless. The party isn’t launching a fundamental attack on public ownership or pushing for widespread privatization of the state leviathans. It aims to split SOEs into smaller units or bring in more private investment to state-dominated sectors including energy, telecommunications, railways and banking, on the theory that doing so will reinvigorate the world’s second-largest economy at a time of flagging growth.

Has a segment of China’s shadow banking system been curtailed? | FT Alphaville – the game of ‘cat and mouse’ between Chinese regulators and banks is likely to continue, says Werner (who, incidentally, says the Chinese banking sector tends to be undervalued by markets right now and has ‘outperform’ ratings on CCB, ICBC and Bank of China.) And indeed, the data up to Q2 still indicated a steep growth in trust companies and wealth management products, although the former had slowed down somewhat.

China New Home Sales More than Doubled in Oct.8-14-Caijing – New house sales in 54 major Chinese cities surged 210 percent in the week through Oct.14, from the level seen before the national holiday from Oct.1-Oct.7, and continued a trend in place before the holiday, the official Securities Daily.

两大工程民资有望“分羹”470亿 新华社——经济参考网 – Ministry of Railways to allow private investment into two major projects

地方规划频出 铁路建设提速_财经频道_一财网-First Financial – lots of rail projects in planning at local level, if money can be found一家地方铁路局知情人士对本报记者称,在能筹措到充足资金的前提下,许多地方都将铁路作为投资计划的首选。这种选择的背景是:铁道部之前明确城际铁路可由地方控股。

In China, a Move to Tiny Living Space – WSJ.com – At the research center of China’s largest property developer, China Vanke is an apartment that measures 160 square feet, about the size of a parking space. The bed folds to make seating. The shower is a vertical tube by the front door.At a price of about 835 yuan ($133) a square foot, an apartment that size is relatively affordable at the yuan equivalent of $21,500, which is around six times per-capita disposable income for China’s urban residents.

China Winds Shift for U.S., European Retailers – Caixin – Tesco, Carrefour, Wal-Mart and others roared onto the mainland but are now quietly adjusting to a changing market

China’s Big Four banks rotate auditors | China Accounting Blog | Paul Gillis – Most alarming, however, is the reduction in fees at each of the banks (other than CCB which appears to have frozen PwC’s fee). Not only do the new auditors have to figure out these banks, they have to do it with an average fee reduction of 22% on the three banks than rotated auditors this year. That level of fee reduction is going to result in reduced audit quality, reduced partner income, or both. Probably both; I am glad I am retired from the Big Four.

Bank of America-Merrill Lynch appoints Margaret Ren as China chairman | South China Morning Post –Zhao Ziyang’s daughter-in-law//  Bank of America-Merrill Lynch has appointed Margaret Ren, a well-known mainland banker as its new China chairman, according to an internal memo seen by the South China Morning Post on Tuesday.

Bulls and Bears Fight It Out, in Courts – NYTimes.com– Now Jon Carnes, the president of Eos Holdings, a hedge fund that is short Silvercorp, says he has been informed that the Royal Canadian Mounted Police have started a formal investigation into Silvercorp, in response to a complaint filed by Mr. Carnes. He said the complaint asserted that the company had improperly financed an investigation by the local police in Luoyang, a Chinese town where a Silvercorp subsidiary is based. Kun Huang, a researcher for Eos, has been imprisoned in Luoyang since July, although no criminal charges have been filed.

A Surreal Skateboarding Journey Through China’s Infamous Ghost Town – Video-Alessandra Ram – The Atlantic – ordos

Podcast -Chinese Investors Head West- Economic Observer – With Huawei’s long running tribulations in making US acquisitions, many Chinese investors are nervous to invest overseas. The coming US election and Chinese power turnover, combined with China’s economic slowdown, are also shaking up the trade situation between the two countries. In today’s podcast, we talk with Beijing-based trade lawyers Bill Rosoff and Spencer Griffith of the Akin Gump law firm.

 

POLITICS AND LAW

焦利去职新闻出版总署副署长_政经频道_财新网 – Jiao Li no longer vice director of GAPP, after only being there for 10 months. huh…

明鏡新聞網: 明鏡獨家:劉雲山親信涉嫌貪腐情色將被「雙開」 – Mingjing reporting that Jiao Li, a trusted aide of Liu Yunshan, to be “kicked out of Party and job”/investigated. The report that Jiao Li is no longer at GAPP is from the reliable Caixin. Mingjing is not particularly reliable, though in this case there have been rumors of trouble for a while, from issues that predated CCTV job, from Jiao’s time in Liaoning…and then there was the CCTV fire…If Jiao really in trouble then this may not a positive for Liu Yunshan’s career prospects, especially for possible ascension to 18th PBSC…?

China’s Liu Yandong carries the hopes – and fears – of modern feminism | guardian.co.uk – She is the only female member of the 25-member politburo and would be the first woman to reach its standing committee, the country’s top political body. Though she is regarded as a long shot, “the door is not closed”, said Cheng Li, an expert on Chinese politics at the Brookings Institution.

富平县纪念习仲勋诞辰99周年_资讯频道_凤凰网 – pictures of celebration of 99th anniversary of Xi Zhongxun’s birth in Shaanxi..Xi Jinping’s father

Long Ride For Justice – Caixin – The son of an American couple killed in the 2011 Wenzhou train collision is fighting a government agency for his family’s peace

争夺实德足球|争夺|实德|足球_21世纪网 – Who will get control of the Dailian Shide Football club?

Guest post: stability first for China’s new leaders, with tough action on corruption | beyondbrics– Although any significant structural political reform is unlikely to be rolled out under the new leadership, passive reforms introduced to respond to mounting domestic challenges in the next decade may plant seeds for fundamental changes in the way China is governed beyond the Xi/Li generation. In the short to medium term, however, there is little sign of the CCP losing its grip of social and regime stability.

Growing Concerns in China about Inequality, Corruption | Pew Global Attitudes Project – expectations and credibility gaps growing, Party knows this, why some reforms likely soon, though not western liberal political reforms. wonder how honest respondents really were, could even be worse// the side effects of rapid economic growth, including the gap between rich and poor, rising prices, pollution, and the loss of traditional culture are major concerns, and there are also increasing worries about political corruption. While the Chinese have consistently rated their national and personal economic situations positively over the last few years, they are now grappling with the concerns of a modern, increasingly wealthy society.

Survey Methods | Pew Global Attitudes Project – Results for the survey in China are based on 3,177 face-to-face interviews of adults conducted from March 18 to April 15, 2012. It uses a multi-stage cluster sample stratified by China’s three regional-economic zones (which include all provinces except Tibet, Xinjiang, Hong Kong and Macao), representing roughly 64% of the adult population. The sample is disproportionally urban (the sample is 55% urban, while China’s population is 50% urban)

Romney’s Stake in Chinese Stocks | Mother Jones – The GOP candidate invested in 10 Chinese companies recently—including ones that embezzled, partnered with Iran, and stole US trade secrets.

 

FOREIGN AND DEFENSE AFFAIRS

Commentary: Japan’s propaganda war on Diaoyu Islands doomed to fail – Xinhua | English.news.cn – In short, whatever tricks Japan may play, to lobby Western politicians, to distribute pamphlets or to spend huge money on propaganda, they can not change the fact that the Diaoyu Islands belong to China.

China protests after fisherman shot dead by ROK guard |Politics |chinadaily.com.cn – The Chinese fisherman was shot with a rubber bullet by a South Korean officer who was trying to arrest him during a raid, he died from injuries after transported to a nearby hospital, according to South Korean authorities.

人民日报-有一种行为叫做耍赖(国际论坛) ——二论钓鱼岛问题真相 钟声 – Zhong Sheng in People’s Daily on Japan being shameless re the Diaoyu Islands

2 U.S. Sailors Arrested in Okinawa Rape Case – NYTimes.com – Two United States Navy sailors were arrested on Tuesday on suspicion of raping a woman in Okinawa, local news reports said, an episode likely to fan anger on an island increasingly outraged over the presence of a large American base.

China should participate more in making int’l rules – People’s Daily Online – In the past, China was pushed aside in many ways under the “rules” because most of the rules were established under the auspices of Western countries and China can only adapt to and comply with them. Therefore, it is self-evident whether China will participate in the building and formulation of new international rules in front of currently changing international situation?

Vietnam latest news – Thanh Nien Daily | China prepares to take tourists to Vietnam’s islands despite protest – Chinese authorities are stepping up activities to bring tourists to Vietnam’s Hoang Sa (Paracel) archipelago, which China illegally occupies, despite Vietnam’s protests.

Chinese customs to seize devices with illegal maps – Xinhua | English.news.cn – Chinese customs officials have been told to strengthen inspections of mobile devices with Internet-based maps and to seize items using illegal maps, according to the national mapping authority.

U.S. Commander Sees Peaceful End to China-Japan Maritime Dispute – Bloomberg – “In my estimation we are headed toward a peaceful resolution and not toward conflict,” Admiral Samuel Locklear, commander of the U.S. Pacific Command, told reporters in Bangkok today, referring to the dispute between China and Japan. “And we need to stay on that course.”

 

HONG KONG AND TAIWAN

China critic to sell Taiwan media holdings to local businessman with close China ties – The Washington Post – A source at Hong Kong-listed Next Media Ltd said Tuesday that Jimmy Lai would sell Next Media Entertainment Services Ltd. to a group headed by Jeffrey Koo Jr. for New Taiwan dollars 17.5 billion ($580 million).

Temperatures Rise Over Mainland China Access to Taiwan Health Care – China Real Time Report – WSJ – “I fully agree that all people living in Taiwan should have access to emergency medical care, that’s without question. But how can it make sense to have my tax money go to ensure the medical rights of citizens whose country that still deploys over a thousand missiles pointed at my homeland?” he said.

 

TECH AND MEDIA

Fan Bingbing graces Italy’s L’Uomo Vogue – Entertainment News – SINA English – may drive some to distraction

Foxconn Admits To Underage Interns Working In Factories-AP – Foxconn Technology Group said the interns were found by a company investigation at its factory in the eastern city of Yantai and were sent back to their schools. China’s minimum legal working age is 16.

Leslie T. Chang: The voices of China’s workers – YouTube – In the ongoing debate about globalization, what’s been missing is the voices of workers — the millions of people who migrate to factories in China and other emerging countries to make goods sold all over the world. Reporter Leslie T. Chang sought out women who work in one of China’s booming megacities, and tells their stories.

A Look “Glorious Mission,” China’s Military-Produced Call of Duty Clone-TechinAsia – for players who want to put themselves in the shoes of the PLA, it is certainly the most realistic option out there. As for the anti-American accusations, they seem to have been quite overblown (no surprise there). Enemies are just called “enemies” and you won’t see any flags or other identifying marks in the game as far as I can tell. There’s not a lot of story, and what is there is pretty vague, but from everything I saw, this game is far more tame than any of the Western games where the PLA is the enemy.

CNN to debut monthly show about China|chinadaily.com.cn – The new monthly show On China will be hosted by CNN correspondent and anchor Kristie Lu Stout. During each 30-minute show, she will sit down with “business leaders from within China’s borders for a round-table discussion about what really drives this world power and economic giant”, CNN said in an online article on Tuesday.

出租车“入侵者” – 经济观察网 - 专业财经新闻网站 – an Uber for Beijing?// 在之前的半年时间里,一些生活在北京的人体验到一种新的租车服务——摇一摇你的手机,你就能收到一条短信,短信中会告诉你某个驾驶员正在驾驶某个牌子的汽车接近你,几分钟后,车到了。这种境况发生的前提是你拥有一部智能手机,下载由北京聚核众信开发的“摇摇招车”软件并且存入一定的金额。

Chinese Gaming Portal YY Shoots For US IPO-TechinAsia – Rumors swirled last October that YY would shoot for a US IPO – but this time the plan is for real. Last year I suggested that investors would be scared off by rampant piracy in the downloads section of Duowan, where pirated games are freely available. All that pirated material is still on the site today (fancy a “free” copy of Plants vs Zombies, anyone?), still threatening to torpedo its IPO plans.

 

SOCIETY, ART, CULTURE AND HISTORY

Residency rules get revised |Society |chinadaily.com.cn – A draft regulation on China’s permanent residency permits, which lowers requirements for applicants, is to be issued soon, a senior official with the Ministry of Public Security has said.

 

ENERGY, ENVIRONMENT AND HEALTH

Teleconference on China’s Leadership Transition and Implications for Energy and Climate by World Resources Institute on SoundCloud – –

 

BOOKS

Romance of the Three Kingdoms,Vol. 1: Lo Kuan-Chung,Robert E. Hegel,C. H. Brewitt-Taylor: Amazon –

BBC News – Liu Bei: China’s warlord who teaches good management – So if you are trying to understand how China works, do not just rely on pieties from the party leadership. Read the Romance of the Three Kingdoms and start looking out for the Liu Beis and the Cao Caos in real life.

China’s Superbank: Debt,Oil and Influence – How China Development Bank is Rewriting the Rules of Finance (Bloomberg): Henry Sanderson,Michael Forsythe: Amazon – Anyone wanting a primer on the secret of China’s economic success need look no further than China Development Bank (CDB)—which has displaced the World Bank as the world’s biggest development bank, lending billions to countries around the globe to further Chinese policy goals. In China’s Superbank, Bloomberg authors Michael Forsythe and Henry Sanderson outline how the bank is at the center of China’s domestic economic growth and how it is helping to expand China’s influence in strategically important overseas markets.

Mo Yan’s Creative Space – NYTimes.com – But it would be intellectually lazy for distant Western observers of this situation to dismiss Mo as a literary stooge, or to assume that his several historical novels set in post-1949 China offer an officially sanitized view of China and its recent past. Since the publication of “The Garlic Ballads” in the late-1980s, Mo’s fiction has sought to lay bare the brutality, greed and corruption that has flourished under Communist rule.

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

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