CHINA – POLITICS

After the Xinjiang riots

Media coverage on Xinjiang after the riots is widely noted on mainland news and magazines. Most reports focused on the damages resulted from the riots, while being vague in examining the root causes. For a few pieces that attempt to look into the issues, they mostly turn to unemployment and other social and economic problems in Xinjiang and the infiltration of terrorism. China Newsweek made it the cover story for two consecutive issues (China Newsweek, Jul 13 & 20 Issue). It ran a number of articles that gave in-dept accounts of the riots and terrorism in the region, which media rarely talked about. Worth noting is a feature article on China Newsweek, which look at the confusion of Uighur youth with identity in the complex economic and political reality in Xinjiang and in a wider part of China. Through the story with a 16 year-old Uighur (who is a half-Han and half Uighur), it presents a picture how cultural, social and economic tensions stand between Han and Uighurs. Oriental Outlook’s article accused western media and overseas forces of politicizing an ordinary case to an incident of ethnic conflict (Oriental Outlook, Jul 16 Issue).

The view has been widely presented in state media’s editorial and commentary. For instance, in response to the accusation of China’s ethnic policy, a university professor argued in an op ed article on Global Times that resource exploitation, poverty and the wealth gap are not exclusive in Xinjiang, but also in other parts of China. It is unfair to pinpoint Xinjiang as a sufferer and link them to ethnic issues. He added that, the problems lie on underdevelopment, not economic colonialism. (Global Times, Jul 16) This apparently echos the central government’s assertion on the irrelevance of ethnic policy to riots in Xinjiang.

In an interview with Asia Week, a Uighur NGO worker and former Xinjiang official revealed that Xinjiang authorities ignored an alert given by a Uighur intellectual about the violence a day before the riot. While rejecting the influence of Rebiya Kadeer and the Uighurs’ desire of independence, he accused an illegal religious group in southern Xinjiang of being the real instigator of the riots. He disagreed that the problem in Xinjiang is one of ethnic separatism but economic problems that have contributed ethnic conflicts. But he said that ethnic tensions are deeply rooted in Xinjiang, especially with the policy of bilingual education and organising Uighurs to work in coastal cities. (Asia Week, Aug 2 Issue)

A Ming Pao commentary said the Xinjiang riots have positive impacts to China’s foreign relations with the west, esp after Al Qaeda’s threat of retaliation. This has made China an ally of US and European countries in the fight of terrorism. But it also reminded China of being sober-minded as the supports of the West is based on their anxiety of extremist Islamic forces, but has nothing to do with their approval of China’s ethnic policy or human rights conditions. (Ming Pao, Jul 14) SCMP said that while Beijing is right to react to the al-Qaeda threat by focusing on the safety of Chinese citizens and increased co-operation with other countries to fight terrorism, it should not ignore the warning signal that its management of Muslim minorities is also an issue. It urged the government to rethink its approach in ethnic areas and reconcile its historical fear of disunity with the strengths to be found in cultural diversity. (SCMP, Jul 16)

Universities cook up employment data of graduates

It is reported that universities provide fake employment data of its new graduates to boost their stature. Some universities have reportedly been faking job contracts for graduates. Education officials insisted accuracy of employment figures provided by universities, and latest reports of faked employment rates are individual cases.

According to unwritten rules at many universities, students cannot graduate if they do not find a job. Many unemployed students have to buy a fake job contract or employment agreement from small companies so that they can get their graduation certificates. A Peking University professor suggested the education authorities to stop the assessment of employment rates of universities before graduation and compile the statistics at least six months after. Universities are urged to put more efforts into helping unemployed graduates find jobs after graduation instead of cooking up employment rates. (China Daily, Jul 29) A commentary on Changjiang Daily said the fake employment figures unveiled the root problems of the higher education policy that links admission targets and resources allocation to graduate employment rates. The rate is an important performance indicator that decides development and even the fate of a higher institution. Education officials also lack motivation to check data accuracy, giving space for cheating at universities to compete for funds and resources. (Changjiang Daily, Jul 29)

Residents believe rumors, not government

On July 17, rumors of a radiation leak spread as people began hearing word that explosions occurred at an irradiation plant in the area. This caused chaos on the streets. Residents of Qi County fled homes for fear of radiation leak. Environmental bureau issued a statement to dismiss the rumors the next day. A local resident estimated that about a third of the county’s one million people fled, but the county government said only ‘a small portion of the people left’. The incident has sparked concerns on rumor spread, which has contributed to a number of mass incidents in recent months. It is pointed out that in China, many do not trust local officials and the government-controlled media because they downplay or in some cases boycott negative news fearing it will trigger social unrest. Yet, this makes people easily overreact to rumors.

While some suggest harsh punishment on rumor mongers, a Peking University law professor said the standard and ways of punishment would have significant implications on how to balance of freedom of speech and public interests. It is not an easy task to define rumor; and forbidding rumors may bring even terrible results. The professor said media reports and investigation into the rumors would be more persuasive to clear public fears than official assurance given in press conference. Punishment of rumor mongers should be based on the consequences that the rumor has caused; and if the alleged rumor monger spread rumors in circumstances that he or she has no knowledge about the facts, he or she should not be punished. The professor made an important point that, since the current system does not seem to make one totally trust the information released by government and media, it would be inappropriate to get so strict on information dispersed in public channels. He worried that strict measures would eventually deprive public access to facts and information that might otherwise be intentionally withheld or overlooked. (Nanfang Du Shi Bao, Jul 24)

A Xinhua commentary criticised incompetent local government officials blamed protests and riots on ‘people ignorant of the truth being manipulated by schemers’, which is a lame excuse for bad governance. It said, ‘blaming people for not having all the facts is no different from saying they are unable to distinguish right from wrong, and that is simply untrue.’ It pointed to government officials who did not do their part to provide ‘the facts’ to the people when the mass incident was still developing. It could have prevented the mass incidents from happening. The article gave an implicit warning that officials who let protests spin out of control will be punished. (Xinhua, July 29)

Call for asset disclosure of new cadres

An article on Study Times said cadres and government officials who are not willing to disclose their assets should resign. It proposes, new (and young) cadres should take the initiation to disclose their assets, making it the first step to formalise an asset disclosure system. A commentator responded that public scrutiny would make government officials cleaner. It is pointed out that the disclosure should not be made public only at the time of taking office, but extended to official’s annual assets report, which is kept for internal check. (Oriental Morning Post, Jul 24) Procuratorate’s Daily criticised the proposal of the Study Times article of intentionally protecting senior cadres and government officials who are indeed far more exposed to corruption from asset disclosure to public. Such system would never achieve the genuine goal of promoting clean government; nor would it win supports of the people. (Procuratorate’s Daily, Jul 24)

SCMP agreed that forcing officials and their families to regularly declare their assets are the fastest, surest way for a government to tackle corruption. While laws and rules have been passed and pilot schemes are under way in a handful of cities, the efforts have been half-hearted and poorly enforced. The article cited wider benefits of asset disclosure: the legitimacy of the government is enhanced in public eyes; political systems are opened; and foreign direct investment is stimulated. Yet, concerted supports of central government and state leaders are the key to make the policy happen. SCMPurged state leaders to use their next top-level meeting to implement a far-reaching policy of disclosure – starting with declaring their own assets. (SCMP, Jul 28)

A leading professor said that the proposal set a real test to show the government’s sincerity in anti graft reform and adopted a ‘people-centered’ policy. It is also a test of public confidence to the government and institutional system. Asset disclosure will inevitably draw opposition of certain stake-holder groups. The professor pointed out that anti-graft measures had been ineffective because corruption was seen as ‘our [government] own issues and we would deal with it’. The general public and society cannot intervene. When corruption is dealt within the current political framework, restrictions will be imposed and some fundamental anti-graft measures would be sidelined. He said that effective control of power should be a combination of external and internal monitoring system. In recent years, internal monitoring system is evidently failing and external monitoring system has not been set up. This explains rampant power abuse at local level of governments. Corruption is a product of power abuse. He said that the key of pushing for asset disclosure lies on the extent to which social power counters against the stake-holder groups. It is noted that many people showed pessimism in the policy to be adopted. The government should not overlook the sense of distrust amongst the citizens. When a government lost credibility, it is an indicator of a crisis of social trust. (Economic Observer, Jul 27)

Shanghai’s new population policy criticised of sending a wrong signal

The Shanghai government encourages couples who have no siblings to have a second child. A commentary on China Daily criticised the Shanghai government of viewing the population problem only from the viewpoint of the hukou-holding people, while ignoring those without a hukou. It is argued, if the no-hukou group is counted, which indeed make up a considerable share of Shanghai’s actual population, the aging threat of Shanghai would not look that gloomy. Yet, aging problem cannot be solved by ignoring the pressure from an even larger population. Other ways of dealing with the problem to build an effective social security system and better community service system offering good care to the elderly both in urban and rural areas. Diverting more resources, such as in education and medical care, to the countryside are key. The commentator said that the one-child policy should be upheld for its contribution to China’s economic development. (China Daily, Jul 28)

Beijing advocates province to govern county

China Newsweek ran a story on a new proposal that put county under the direct supervision of province. Under the proposal provincial CCP committee will appoint the secretary general of county CCP committee. It is said that the move indeed followed the financial reform adopted earlier this year, which empowered provincial government to supervise county-level of financial departments. China Newsweek said that the proposal has already been piloted in some provinces. It is said that returning the appointment power to provinces shows the central government’s concerns over cadres at lower level of governments and want to do something about it. Policy experts said this also aimed to address conflicts at lower level of governments and enhance policy enforcement. (China Newsweek, Jul 23)

A China Youth Daily commentary agreed to place more significance in county level of government. But it is suggested to allow county residents to elect county mayor, through direct election or county level of people’s congress. Or the province can intervene if they find the elected mayor not appropriate. The commentator argued that county mayor works closely with grassroots level of people. A strong base of public support to the mayor is more essential than possessing extraordinary work competence. With public supports, people will have greater trust to local government officials and will not easily (and immediately) turn to provincial government or even central government for intervention whenever circumstances arise. He said that the only way to make people feeling settled is to let them decide whom they want to hand over their power. (China Youth Daily, Jul 28)

China surpass US to give out most PhD degrees, but are qualifications justified?

According to a government report to be released next month, 310 institutions in China have the authority to confer doctorates, and the total of those with a PhD exceeded 50,000 in 2007. China has overtaken US to be the largest producer of doctoral degree holders in the world. Over half of the PhD graduates reportedly work in the government. An Apple Daily article raised doubts over the PhD qualification of many government officials, who claimed to study PhD part-time while taking office as mayor or secretary general of provincial CCP committee. The commentator questioned if the qualifications are obtained through bribery or political power. (Apple Daily, Jul 28)

The editorial of China Daily seems to confirm the doubts. It said that some universities even organized “sideline classes” for government officials or entrepreneurs to get doctorates. The degrees are purely decorative for them. By selling academic degrees in this manner, these universities have actually sold their reputation and devalued the highest academic degrees. It urged universities to place strict standards in admitting candidates to doctoral degrees. (China Daily, Jul 29)

China to adjust strategy in its fight with swine flu

Hong Kong announced in late June that it would change the strategy for containing the spread of swine flu as the virus begun to spread in community. Strict quarantine policy of suspected carriers was no longer effective to contain the virus spread, given the cost and resources required. A Caijing article reported that there were more voices in the international society, civil society, and even the government to call for China’s adjustment of its swine flu policy. It is said that in Guangdong, some local governments had already made certain adjustment of the policy. But the Chinese government immediately responded that quarantine policy of suspects of swine flu carriers continues. More, hospitals and disease prevention authorities are preparing for an even larger scale of flu prevention and quarantine. The article raises question whether the government is prepared to give in corresponding resources and have the institutional framework in place to support the long fight with the swine flu and new type of flu virus. It said that ‘the strict quarantine’ strategy is very costly. Millions yuan had already been spent on quarantine. An official of the Guangdong disease prevention center said that sample laboratory testing is expensive. It will be too costly for taking the measure in the long term. (Caijing Magazine, Jul 6)

In Brief

• 291 charged over the alleged mismanagement of detention and prison facilities in the first six months of this year, equivalent to a 114% increase, according to official data (China Daily, Jul 16)
• PLA said that it may consider to send troops to central Asia to crackdown on Xinjiang separatists when necessary (Ming Pao, Jul 24)

CHINA – ECONOMY

More signs of recovery, as GDP growth likely to reach 9% in Q3

According to the report released by the National School of Development under the Peking University, China’s economy showed more signs of recovery and was likely to grow around 9 percent in the third quarter. Other economic indicators also show favourable prospects of China’s economy.

The latest issue of Captial Week reported a survey that found China’s investor confidence index rose to 122 in the second quarter from 111 of the first quarter. Chinese banks lent a record 7.37 trillion yuan (1.08 trillion US dollars) in the first half to shore up the economy. Although the government remains cautious about the rebound, economists and analysts believed that China’s economy was in the V-shaped recovery course. It is said that the government stimulus package could help the country achieve the 8 percent economy expansion goal, while the next priority for China is creating more jobs. (China Daily, Jul 28)

Credit expansion could be detrimental to recovery

An op ed on AWSJ said that the main difference between the current stimulus package and the one in late 1990s is the unconstrained credit expansion, which would generate much fewer marginal benefits to the economy. In the late 1990s when China faced a serious economic downturn, it launched a 200 billion yuan resue package for ailing state-owned enterprises, followed by investment of nearly 1 trillion yuan in western China to help maintain growth rates at 7%. Bank lending was kept less than 15% in most quarters during the period because the stimulus package was under much stricter guidance from the central government. The commentator criticised the National Development and Reform Commission (NDRC) of showing great enthusiasm for approving local construction projects. It even devised ways to allow local governments to borrow more funds by using long-term loans from policy banks or bond issuance as the 30% required initial capital. It reminded the people of the important role of top-level central technocrats like Chen Yun and Zhu Rongji in contributing to China’s success, as they use their political influence to constrain local investment bubbles, thus forestalling high inflation and major financial crises. He said that past retrenchment campaigns were unpopular and controversial, but senior technocrats nonetheless maneuvered to stop uncontrolled local investment. He calls for same insights and courage in the current leadership as out-of-control credit expansion contains the seeds of future financial problems. (AWSJ, Jul 22)

A commentary on Nanfang Weekend said that if the exposure of local government debt is the price to pay for economic recovery, the basis of such aggressive fiscal expansion must be greater transparency in public finance at local level of government. (Nanfang Weekend, Jul 30) Some policy experts call for taxation reform and a review of the sharing system of taxation between central and local government to strengthen fiscal ability of local governments to fund stimulus program. This will reduce their exposure to debt accumulation.  (Nanfang Chuang Magazine, Jul 21)

Guangdong audit report reveals problems of special fund projects

Caijing cited an audit report of the Guangdong audit department, saying that the enforcement rate of budgeted special fund projects was low. Fake proposal of special fund projects and embezzlement of special fund are common at lower level of governments. For example, only 17.6% of the 18 million yuan budgeted for 6 special fund projects were utilized. It is pointed out that insufficient fund to meet the budget amount is a reason of low fund utilization rate. In terms of fund embezzlement, it is reported that officials tend to embezzle fund in office building projects and general office expense claims. The authorities said inadequate monitoring and competence in budget and financial management are the key factors to the problem. (Caijing Magazine, Jul 29)

CHINA – DIPLOMACY

Sino–US Strategic and Economic Dialogue concluded but delivered little of substance

The first US-China Strategic and Economic Dialogue was held July 27-28 in Washington. This high-level dialogue replaces the former Senior Dialogue and Strategic Economic Dialogue started under the George W. Bush administration. The talks cover a range of critical bilateral economic and political issues, such as the countries’ trade imbalance, currency, North Korea and other regional issues. China and the United States signed the memorandum of understanding to enhance cooperation on climate change, energy and environment when their first round of Strategic and Economic Dialogue ended. A number of issues including human rights, Xinjiang riots and the quarantine of Americans with swine flu are reportedly raised in the talks. US agreed to offer Beijing convenience in buying hi-tech products; yet, there is no detail on what kind of convenience to be offered. A Beijing university professor said that Beijing demands US to sell hi-tech products not only for the need to facilitate China’s economic restructuring, but also a gesture of seeking equality and national dignity. (Ming Pao, Jul 30).

Mainland media generally sees the meeting a fruitful one, but emphasising that it clearly shows the growing interdependence of US and China and the need to have coordinated efforts in leading the world to recover from the current economic crisis. (Global Times, Jul 27; China Daily, Jul 30) Experts of international relations are cautious to the outcomes. It is said that ‘most of the differences between the two countries are long-standing and cannot be resolved over two days, but it is significant enough that a meeting of such scale is held. (SCMP, Jul 28) SCMP editorial said that the high-level talks had an impressive agenda, but delivered little of substance. This does not amount to a failure, because the basis for the meetings was new-found co-operation. It hoped that the two governments would make use of frequent talks to bridge disagreement, notably China’s currency exchange policy and US military presence in Asia (SCMP, Jul 30)

A Caijing article said that many were surprised that the issue of China’s currency exchange policy was not emphasised in the talks. But it said that the issue would not be put off from the list. If not this time, it would be in future talks. It pointed out the improvement of US’s trade deficit to China is a reason that US didn’t push hard on the issue this time. In addition, Obama government stressed on cooperation in this meeting, therefore, it did not want to disrupt a cooperative and amiable atmosphere by raising tough questions to China. (Caijing Magazine, Jul 28)

Prior to the meeting, China said that it was willing to discuss ethnic unrest in Xinjiang with US if the issue was raised in the meeting. It is the first time that Beijing has indicated it is willing to discuss the issue with a foreign government. (SCMP, Jul 23) The issue was raised in the meeting. China praised US for holding a ‘moderate attitude’ in the incident and respected that it was China’s internal affairs.  Amnesty International said that they were concerned. Even though human rights were discussed, human rights did not play an equal role to the economic dialogue given the recent events in Xinjiang. They believe that China wouldn’t take the issue serious unless it became a more prominent part of such high-level dialogue. (SCMP, Jul 30)

China and Africa cooperate to play a bigger role in international media industry

African and Chinese media professionals expressed a desire to work together to play a bigger role in the international media industry. The two sides agreed that the voices of the world should not just come from CNN or BBC, it also needs diverse perspectives from China and Africa when a piece of news occurs. (China Daily, Jul 16)

TAIWAN – POLITICS

Will Ma’s dual identity a building block or stumbling block to high-level talk with Hu?

Ma won the chairmanship of KMT with no surprise. China Times is pessimistic to Ma’s ruling competence, given his demonstrated incompetence in curbing corruption in military and carrying out more reforms. The editorial said that Ma is ‘lack of energy’ in policy making. Ma is urged to prove his leadership and ruling competence with actions, not words. (China Times, Jul 27)

President Hu Jintao called for further co-operation in promoting cross-strait peace after congratulating him on being elected Kuomintang (KMT) chairman in a telegram. But based on the choice of words, it is said that there is no hint to a prospective meeting between Hu and Ma. But KMT spokesman pointed out the exchange of telegrams was a breakthrough as it marked the first time in six decades that a Taiwanese president had publicly exchanges messages with his mainland counterpart in their capacity as party chairmen.

A commentary on Apple Daily said that the victory of Ma would pose more challenges to the continuity of Cross-Strait Forum. The dual identity of Ma may bring a halt to high-level dialogue between CCP and KMT. (Apple Daily, Jul 27)

Xinhua to set up bureau in Taiwan

Xinhua Agency to set up Taiwan bureau office. China Times reported that Xinhua Agency had put the issue on agenda. the bureau is believed to have a staffing of about 10 people. China times quoted saying of senior KMT members that Taiwan media has not ready for the presence of a bureau of Xinhua in taiwan, esp the new bureau will hire taiwan people. (China Times, Jul 27)

MACAU – POLITICS

Macau’s CE elected urged to beef up anti-corruption effort to clear public worry of family’s strong business ties

Ming Pao pointed out that the election results show distrust in him, especially in relation to the strong business ties of his family. The chief executive-elect is urged to support anti-corruption bureau and auditing departments in fighting corruption. In addition, he should ensure the healthy development of civil society and media to keep the government in check. (Ming Pao, Jul 27) SCMP said that Chui should confront the questions of his alleged involvement in the corruption scandal involving disgraced secretary for transport and public works who was sentenced for corruption that included taking kickbacks for construction works for Macau’s staging of the 2005 East Asian Games. As the CE elect, just a denial of responsibility is not enough to clear public doubt. The editorial said that it is in Macau’s interests that he answers critics by revealing his business interests and connections. (SCMP, Jul 27)

HONG KONG – POLITICS

Who is the next CEO? Still not too early to make a guess

A HKEJ article discusses who would be the successor of Donald Tsang as HKSAR’s next chief executive. Although Tsang still has 3 years in office, the commentator said that there have been on-going talks in political circles about who would be the one. Many tip Leung Chunying a hopeful candidate. But the commentator disagreed. He is criticised of starting the ‘campaign’ too late, demonstrating his unsure about whether he would stand a chance. The commentator also questioned his political wisdom in planning for the run if Leung is serious about the position. Lack of hands-on public administration experience also puts him a less favourable candidate. Other hopefuls discussed include James Tang, Regina Ip, and Tsang Yok-sing. But the article pointed out that the central government might not want to put someone who has strong communist background in the position as this may obviously violate the notion of ‘Hong Kong people rule Hong Kong’. The central government doesn’t want to ruin its good impression on the Hong Kong people as well as counter strong opposition of democracy camp in Hong Kong. In that case, the article said that Regina Ip and James Tang would be more likely the picks of the central government. (HKEJ, Jul 29)

Pro-Beijing group complains poor executive-legislature relationship to senior China officials

During the visit in Hong Kong, Du Qinglin, director of the Communist Party’s United Front Work Department, did not schedule meeting with pan-democrats. In meeting with pro-Beijing groups and Hong Kong members of CPPCC, it is reported that many expressed concerns over the executive-legislature relationship. Many complained Legco has been expanding its own power, hindering a lot of government work and making governance difficult. It is reported that Du did not respond to the delegates’ comments but did jot down their opinions and promised to convey them to the central authorities. Democrats said that the pro-Beijing groups were trying to act as a ‘second governing team’ because Beijing saw the Hong Kong government’s popularity falling. (SCMP, Jul 30)

Du’s trip is rather disappointing for many democrats because the topic of constitutional reform was never brought up. A commentary on HKEJ said that, it might be indeed his intention of not to talk about constitutional reform or discuss any political issues because it might not be appropriate for the purpose of this trip, which is to do work related to Taiwan. This is indicated by the officials that he brought along on the trip. The article added that, if he was intended to come for listening to opinions about the constitutional reform, there would have been more commentary on state media around the topic. (HKEJ, Jul 31) Ming Pao argued that as he sits on a group coordinating Hong Kong and Macau work, he should seize the opportunity to sound Hong Kong people out about this issue so that he can let the group know what Hong Kong people think. That would help formulate a framework of responsible politics which Hong Kong needs and which would reduce its internal strife, foster its political, economic and social development and make it a better sample for Taiwan’s consumption. (Ming Pao, Jul 27)