CHINA – POLITICS
1911 Revolution century celebration
October 10th 2011 marks a century since the 1911 Revolution that ended imperial rule in China. Chinese on the mainland, in Hong Kong, in Taiwan and elsewhere in the world celebrated the anniversary of the significant historical event, while the main messages of the revolution – democracy and equality – made the treatment of the celebration a delicate matter for current Chinese leaders.
Beijing held the official celebration in the Great Hall of the People and the biggest highlight was the presence of former president Jiang Zemin, presented together with his successor, Hu Jintao, and 8 politburo standing committee members. In early July the media reported Jiang was “critically ill” and Hong Kong’s ATV and Japanese daily Sankei Shimbun even reported his “death”. Analysts say Jiang’s public appearance and prominent positioning (right in the middle of the official photograph with Hu) showed that he’s still an important political player and still has influence on next year’s leadership changes. Hu’s speech called for reunion and rejuvenation of the Chinese nation and insisted on the Communist Party’s status as the true inheritor of the revolution but it’s notable he avoided mentioning Mao Zedong and only stressed the importance of Sun Yat-sen. Analysts say the speech has “little political significance in and of itself”.
Coverage of the commemoration on the party’s official media was dry. Newspapers, including People’s Daily, Guangming Daily, PLA Daily, etc. basically duplicated the Xinhua report. But newspapers from the south, especially those in Guangdong province, wrote some in-depth articles with their own angles. Tencent History interviewed historian Yuan Weishi (袁伟时) and magazines including Yanhuang Chunqiu, Dushu invited renown experts to write for the event.
While the China side is calling for reunion of the Chinese nation, Ma Ying-jeou in Taiwan, in his Double Tenth speech, called on the mainland leaders to remember Sun Yat-sen’s founding ideals of China as a nation of freedom, democracy and the fair distribution of wealth. He also urged Chinese leaders to “bravely march” toward that direction while also calling on China to face the existence of the Republic of China.
More content on the celebration will be delivered in a special newsletter soon.
Steve Jobs’ death stirs debates in China
Reaction to the death of Steve jobs was huge all over the world but nowhere more so than in China.
According to Southern Metropolis Daily, Twitter users posted 2.5 mln tweets within 12 hours after the release of the news, while in China, during the same time, on Sina Weibo and Tencent weibo altogether, 50 mln posts appeared on the same topic.
China is Apple’s fastest growing market with revenues booming from one million US$ two years ago to around 5 billion in the first half of this year alone.
Apart from mourning over the death of “great Leader Qiao” (乔教主), many netizens questioned why China couldn’t produce a Steve jobs and many harked back to China’s rote-learning obsessed education system with its lack of critical thinking.
One of the most popular postings came from scholar Wu Jiaxiang (吴稼祥) who said “if an Apple is a fruit on a tree, its branches are the freedom to think and create, and its root is constitutional democracy”.
Another fellow replied “And its trunk is a society whose legal system acknowledges the value of intellectual property.”
Scholars and university students join to support Chen Guangcheng
Recent online calls to visit blind dissident lawyer Chen Guangcheng (陈光诚) in Linyi, Shandong province has drawn unusually large support among Chinese netizens, scholars, businessmen, journalists, influential bloggers together with ordinary internet users expressed their criticism on Weibo, a popular Twitter-like service in China. The latest activity was in Guangzhou, students of Sun Yat-sen University started a campaign to free Chen. Student participants protest by posting their photos on the internet, in the photos they wear dark sunglasses and hold banners saying “Must have light (光), must have honesty (诚), free him.” Related photos and posters were also posted on Weibo, but were deleted immediately.
It’s not clear how many people have gone to Linyi, but according to overseas media reports, about 20 made their visit in the first week, and the latest post from famous columnist Wang Xiaoshan (王小山) said 200 more are on the road. A Weibo user said on October 15th that so far one person had managed to get into the village and was on his way back safely and before then, all the visitors were either beaten by undercover cops or hassled by the local police. One visiting netizen was reportedly detained for 21 hours.
Hong Kong Economic Journal listed 39 elite Weibo users who had shown support publicly to Chen by October 11thwhich can be very helpful as each of them has tens of thousands followers, the article said “Free Chen Guangcheng” has already become a citizens’ movement in China and hundreds of netizens are preparing new activities.
On a popular forum for young Chinese mothers, bbs.yaolan.com, a post calling the group to pay attention to Chen attracted tens of replies of anger and sympathy, two respondents said they are based in Chen’s city but had never heard of him.
In China, Global Times and Shanghai’s Oriental Morning Post broke through the blocks to make comment. Global Times commentary called to deideologize the Chen issue to make it easier for local officials to handle, while the Oriental Morning Post introduced to the public “Who is Chen Guangcheng” and what he has encountered, which was seen as a big step forward by the official media, the article was shared by more than 4000 users on Weibo. Some analysts say the two articles hint that the authorities are loosening control on the issue and may free Chen in the near future. But the Oriental Morning Post article was already deleted on the website of the newspaper and a reposted version on the most popular forum Tianya was also deleted.
On Weibo, the new U.S. Ambassador to China Gary Locke was invited by netizens to visit Shandong, and the first day U.S. Embassy Deputy Spokesman Justin Higgins registered on Weibo, about 500 of netizens commented on his greeting message, all claiming they are Chen Guangcheng and welcome Justin to visit Dongshigu village in Linyi.
A netizen said, “It’s endless darkness around Chen Guangcheng, but when have we ever had light around us? Without acting and fighting, our nation will live in the dark forever!” Another said, “Chen Guangcheng, a blind man, is looking for light for his country.”
On Weibo, “send him to Linyi” has become the latest trendy curse.
CHINA – DIPLOMACY
US, China envoys meet amid tension over arms sales and currency bill
Vice Foreign Minister Cui Tiankai met with US Assistant Secretary of State Kurt Campbell in Beijing on October 11th during the second leg of a Sino-US Asia-Pacific forum, just before US Senate passed a currency bill to retaliate against Beijing for alleged currency manipulation.
It’s confirmed by Beijing that the currency and arms sales issues were on the meeting agenda, Beijing also warned that bilateral relations could be hurt by the sales to Taiwan.
The currency bill was strongly criticized by the Ministry of Foreign Affairs, the Ministry of Commerce and the People’s Bank of China. According to Reuters, China has launched an intense lobbying effort in Washington to kill the bill, a 12-member “Congressional Liaison Team” inside the Chinese embassy has been meeting with aides to key lawmakers, making phone calls to congressional offices and speaking to the White House on the issue.
Recently, Hilary Clinton wrote in Foreign Policy that one of America’s most important tasks in the next decade “will be to lock in a substantially increased investment, diplomatic, economic, strategic and otherwise, in the Asia-Pacific.” In November, Obama will be in Bali for his first East Asian summit. He will also host the annual heads of state meeting of the Asia Pacific Economic Cooperation forum in Hawaii.
Gas deal remains unsolved during Putin’s visit to China
Russia’s Prime Minister had a two-day trip in China on October 11th and 12th. Though he mainly aimed to finalise the gas deal, the unease between the two countries has prevented them moving further to reach a deal, which is a cornerstone of the Beijing-Moscow strategic partnership announced in 1996.
Russians’ increasing fear is that they are fated to become a convenient source of natural resources, said VOA. Arms sales in the last five years have plummeted, Linda Jakobson, the lead author of a new report on China-Russia relations for the Stockholm International Peace Research Institute, told VOA, because “the Chinese have bought pretty much everything that the Russians are willing or able to sell.” The other leg of the bilateral relationship was energy sales, which Russia and China have been negotiating for 16 years the construction of two gas lines from Siberia to China. But now China has made big efforts to diversify in the gas sector and in oil as well.
As “Putin maps out his decade ahead, he clearly identifies China’s rapid rise as a big challenge for Russia”, said VOA.
Xinhua published an exclusive interview with Putin, quoting him saying that bilateral ties are at their best.
Vietnamese party chief’s visit to China improves ties
General-Secretary of the Communist Party of Vietnam (CPV) Central Committee Nguyen Phu Trong made a 5 day trip to China starting from October 11th. Chinese leaders Hu Jintao, Wen Jiabao, Wu Bangguo, Xi Jinping, Li Keqiang and Jia Qinglin met with him or accompanied him on his tour.
China and Vietnam agreed to strengthen military cooperation and increase contacts between high-ranking officers and establish a hotline for the two defense ministries, which hint at an attempt to cool tensions between the two countries. Joint development of the South China Sea will be discussed in the future, according to the statement Xinhua issued.
13 Chinese Sailors killed near Golden Triangle
Thirteen Chinese sailors were killed by suspected drug traffickers on the Mekong River near the Golden Triangle on October 5th. China suspended shipping through the Golden Triangle are on October 10th. Diplomatic envoys from Thailand, Laos and Myanmar were summoned by Chinese Foreign Ministry and urged to intensify their investigation of the attack.
CHINA – ECONOMY
Wenzhou bosses flee after flow of capital dries up
228 business owners in Zhejiang (84 in Wenzhou) fled or went into hiding in the first 9 months of this year after their flow of capital dried up, according to a report by Zhejiang authorities. The lack of capital is caused by the tightening up on bank lending; mounting debt owed to private creditors, mismanagement and blind credit guarantees.
In Wenzhou, nearly all entrepreneurs used the services of the underground banks, the “efficient” financing platforms for their cash-starved companies, but the annual interest rate can be as high as 100%. In one wave after another global recessions, more and more factories get less and less orders from abroad and can not afford the rising wages and prices of raw materials, at the end of day, many chose to flee.
On October 12th, the government unveiled measures to expand financing supports for cash-starved small businesses, signalling some relaxation of credit controls but not amounting to a fundamental shift in monetary policy, said the China Daily. The steps include allowing small companies to issue more bills and bonds while paying less taxes.
A Caixin commentary said the most worrying problem in Wenzhou is not underground banking as so far Wenzhou can still afford a certain amount of bad debt. A bigger problem is Wenzhou people don’t know where to invest their private capital which is estimated to be 800-1000 billion yuan. After investing in housing, mines and purely making money on money, some Wenzhou entrepreneurs started investing in technology industry and wish to get more government subsidies, which is a growing trend in Wenzhou.
Vendors protest at fee rises on Taobao Mall
China’s number one online B2C website; Taobao, announced on October 10th that it would raise the annual service fees vendors have to pay from Rmb6,000 to as much as Rmb60,000, and increase the deposit it takes from vendors from Rmb10,000 to up to Rmb150,000 next year.
On October 11th, about 7000 small vendors protested online. They were organized under an online voice chat room and attacked a few large vendors including the Japanese clothing chain Uniqlo, by buying large amounts of the same product and then cancelling the orders with complaints to drive down those vendors’ customer satisfaction ratings. According to Taobao, “Tmall.com suffered malicious attacks that continued for several hours which severely disrupted the normal business of some compliant vendors.” It’s reported by the FT that on October 13th, about 50,000 vendors logged in to the chat room to complain about the fee rises and to arrange more attacks.
On October 15th, the Ministry of Commerce expressed concern at the protests and vowed to support small businesses, but Taobao’s new statement says they’ll stick on to the new rules.
Internet analyst Fang Xingdong said the crisis reflects the confusing role Taobao plays, they told the government that they are only a platform, but in fact, they are the rule maker and the one who implements the rules. Professor Yang Jianzheng said China lacks relative legislations to regulate the internet, which is the core reason for the Taobao crisis.
Analysts believe Taobao Mall accounts for 33% of the B2C online retail market in China and the turnover of 2010 exceeded 30 billion yuan.
CHINA – CULTURE
New film: A Simple Life (桃姐)
A Simple Life’s success at the Venice Film Festival raised hope for Hong Kong’s film workers. Deanie Ip was crowned the best actress, which was the first time a Hong Konger has ever reached the top award in Venice.
The film industry has started a debate on what is needed to revive the once-vibrant industry. Lack of fund and an environment where new blood could practise their skills were mentioned by industry insiders.
The film is a sentimental tribute paid by Hong Kong producer Roger Lee to the memory of the amah Ah Tao who served in his family for 60 years and five generations. After six decades, Roger is the only one in his family that lives in Hong Kong and Ah Tao stays to look after him until one day she suffers a stroke. Roger moves her to a nursing house and looks after her till she passes away.
Since mid 1990s, Hong Kong’s film industry has been going downhill. Now only less than 100 films are produced every year in Hong Kong and Hollywood movies become the box office winners. With greater access to the mainland after 1997’s handover, more and more industry talent have turned to the mainland for investment and a much bigger market. To make mass-appeal popular films that meet the mainlanders’ taste, film workers have to carefully hide their Hong Kong characteristics, even Jonnie To Kei-Fung joined the trend last year. As a result films of pure Hong Kong production and focus on homegrown subjects have very little room to survive.
Director Ann Hui On-Wah is now the last straw for the film industry in Hong Kong. In a television and filmmaking of more than three decades, she has turned away from more glamorous and lucrative mainland work to produce poignant social dramas that represent the humanistic side of Hong Kong cinema. Her film The Way We Are in 2008 about the socially deprived in Tin Shui Wai was a good example of her gentle, unforced narrative. In A Simple Life, Hui’s no-nonsense story telling style continues but in a more straightforward way.
New film: People Mountain People Sea (人山人海)
Film People Mountain People Sea by mainland director Cai Shangjun won the Silver Lion for Best Director. It’s about a young man who wants to find his brother’s killer.
“People Mountain People Sea is a Chinese expression that refers to a magnificent sea of people, perhaps pointing to a sweeping ambition to say something about the country’s teeming poor and disenfranchised.”
HONG KONG – POLITICS
Government’s 2011-1012 Policy Address
Chief Executive Donald Tsang delivered the government’s 2011-12 Policy Address on October 13th, in which the most pressing social issues including housing were targeted.
The highlights of the policy address were that Tsang proposed the city restart the Home Ownership Scheme (HOS) in 2016 for aspiring homebuyers priced out of the property market, and offer old-age allowances from 2013 for elderly people who choose to live in Guangdong. He also proposed a flat rental scheme for young people designed to ease discontent among twenty- and thirty-somethings.
The measures were considered a step forward compared to Tsang’s previous ones policy addresses. Analysts say in his last policy address, Tsang, who steps down in June, finally turned on the green light to the appeals of the people. But as all the measures will be left to the next government to implement, Tsang was questioned about his initiatives that carried financial implications for the next government. He defended that, “I believe for any policies, as long as they are good and enjoy public support, the next government will carry them on.”
Also Ming Pao’s editorial criticized the Tsang version of HOS is just another way to support the down housing market as it’s a temporary policy and the government can stop providing flats if the prices go further down to a curtain point. The policy address says, “the new HOS will serve as a buffer when the private residential property market is in disequilibrium due to unbalanced demand and supply, as well as internal and external macroeconomic factors such as low interest rates and quantitative easing measures taken by other economies.” According to Ming Pao’s calculation, the government can stop building flats for the low-income families if the prices drop 25%. While the original home ownership scheme aim to provide affordable houses for the middle class families that are not eligible to apply for public rental housing and at the same time can’t afford the market prices to purchase their own flats, so the middle class can form a steady and stable force of the society. Since 1978, more than 300,000 Hong Kong families bought their flats through the original home ownership scheme.
A small booklet attached to Tsang’s last policy address lists the “major achievements” of the government under his second term as chief executive, cover issues ranging from a caring society, investing in the future and quality of life to economic growth and democratic development. Tsang said that he did his best and has no regrets.
Extramarital affair costs Henry Tang popular support
The latest survey commissioned by the South China Morning Post shows that Leung Chun-ying is the No.1 contender for chief executive, with 29.1% of respondents’ backing, followed by Rita Fan, with the backing of 19.2%, Henry Tang with 14% support, Regina Ip with 13.8% support, followed on 4.4% by Democratic Party chairman Albert Ho Chun-yan.
Earlier October, former chief secretary Henry Tang admitted he had been unfaithful to his wife, Kwok Yu-chin, who also admitted there had been “difficult times in our marriage” but they had “decided to put the past behind us.”
Anti-Wall Street protest comes to Hong Kong
The anti-capitalism movement started from the Wall Street a month ago has spread across the world last weekend, hundreds of protesters demonstrated on a podium next to the Exchange Square, Central. The police put the number of protesters at 190 and the organizers said there were 500.
With permission of the property management office, some League of Social Democrats and People Power members and protester wearing “V for Vendetta” masks climbed onto the bronze statue of bull, waving flags and shouting “Down with Capitalism”. Later on Saturday, protesters moved to the HSBC headquarters on Queen’s Road Central and occupied a small space outside of the bank. Until Monday, October 17th, tens of protesters managed to bring the occupy campaign to its third day.
According to protester Lee Chun-wing, 29, a member of Left21 and a social sciences lecturer who showed up on Saturday, the movement had begun gaining traction in Hong Kong about 10 days ago through online forums, but it’s different from the occupation version in the U.S.. “We are not doing that. Today is an experiment for people to show how determined they are.”
About 100 protesters turned out in Taipei, though on the Facebook page of “Occupy Taipei” more than 1500 people showed interest to participate.
TAIWAN – POLITICS
Donald Rumsfeld urges US-Taiwan FTA
Former US defence secretary Donald Rumsfeld visited Taiwan recently, he said in a speech that Taiwan should make known its defence requests while the United States “has the responsibility to give such requests fair, prompt and reasonable attention.”
In September Washington announced that it would equip Taiwan’s 146 US-made F-16A/Bs with new technologies in a $5.85 billion deal though Taiwan preferred 66 new and more powerful F-16 C/Ds. It’s said that Washington is still considering the sale deal.
Mr. Rumsfeld also urged to create a free trade area in Asia-Pacific region and to see more free trade interaction between the U.S. and Taiwan.
Mr. Rumsfeld said the increasingly stable and secure relationship between Taiwan and China is beneficial to the both sides as well as to the United States.
Beijing warns Tsai Ing-wen on her latest remarks on the ROC concept
On a press conference held in Beijing by the Taiwan Affairs Office of the State Council, its spokesman Yang Yi denied rumours that Beijing tried to persuade James Soong, one of the presidential candidates, to quit via Lien Chan, the Honorary Chairman of KMT. Yang Yi said the mainland’s stance of not getting involved in Taiwan’s elections has never changed.
Yang expressed his concern of Tsai Ing-wen’s latest remarks on the ROC concept, Tsai said recently that “Taiwan is the ROC and the ROC is Taiwan”, which is a change from her previous position that “the ROC is a government-in-exile.” Yang said this is just another form of appeal for Taiwan independence and the cross-straight relationship is not and will never be one between tw
