CHINA
President Xi promises to shake off GDP obsession in promoting officials – Xinhua “We should never judge a cadre simply by the growth of gross domestic product (GDP),” he said. When promoting officials, the CPC organization departments should consider integrity as a priority and then capability, he said. “The Party’s cadres should be firm followers of Communist ideal, true believers of Marxism and devoted fighters for the socialism with Chinese characteristics.”
Crunch Time – Why low growth is China’s new normal – FP There are two important lessons to be drawn from last week’s panic. First, the central bank and the leadership in Beijing seem determined to try to get their arms around credit expansion — even if that means, as it absolutely must, that growth will suffer and the banks will come under pressure. The extent of the freezing of the money markets on June 20 surprised many, including probably the central bank itself, but there will likely be more disruption in the markets over the next few years as Beijing tries to control what has become a runaway process.
China’s Manufacturing Expands at Slower Pace Amid Credit Crunch – Bloomberg The Purchasing Managers’ Index was at 50.1, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That matched the median forecast of 33 analysts in a Bloomberg News survey and was down from May’s 50.8. Readings above 50 signal expansion.
China Audit Report: Local Debt Ratio Up to 189Pct in Some Cities-Caijing 1) Outstanding debts in 36 local governments were close to 3.85 trillion yuan at the end of 2012, up 12.94, or 441 billion from that in 2010. Bank loans accounted for 78.07 percent.
The Chinese Financial System: An Introduction and Overview | Brookings Institution The fear of slower Chinese growth has significant ramification for the global economy. The importance of China, and the central role of its financial system in fuelling that nation’s growth, led Douglas Elliot and Kai Yan to write a comprehensive overview of the Chinese financial system in the backdrop of the 5th meeting of the U.S.-China Strategic & Economic Dialogue.
Slow the Pace of Urbanization, CASS Researcher Urges – Caixin The country should slow urbanization in the face of slower economic growth, said Cai Fang, a population researcher at the Chinese Academy of Social Sciences. Cai is also a member of the Standing Committee of the National People’s Congress (NPC), the nation’s top legislature
Xinjiang: bloody clashes brings army onto streets | South China Morning Post The order for the patrols by the People’s Armed Police was issued by the Communist Party’s top law enforcement official, Meng Jianzhu, at an emergency meeting late on Saturday in Urumqi. The action came just days ahead of the July 5 anniversary of a 2009 riot between Xinjiang’s native Uygur people and Han Chinese migrants in the city that left nearly 200 people dead.
China state media blames Syria government, rebel forces for Xinjiang violence | Reuters Chinese state media (媒体称去年起“东突”分子从叙交战区潜回新疆|新疆|“东突”分子|叙利亚_新浪新闻) on Monday blamed Syrian opposition forces in unusually specific finger pointing for training Muslim extremists responsible for the deadliest unrest in four years in China’s far-western region of Xinjiang. China has traditionally blamed violence in Xinjiang, home to Muslim Uighurs, on Islamic separatists who want to establish an independent state of “East Turkestan”.
Central Asia’s New Energy Giant: China – Alexandros Petersen – The Atlantic As CNPC’s major gas artery snakes southwest, its main oil path winds northwest to Kazakhstan’s many oil wells. While Western companies spend decades and tens of billions of dollars trying to get offshore mega-projects online in Kazakhstan’s portion of the Caspian Sea, Chinese state-owned enterprises have artfully snapped up production rights for already established Soviet-era fields, upgrading them just enough to ensure that the oil flows eastward.
How will a slowing China cope with rapidly aging buildings? | China Economic Review Chinese researchers have suggested that many buildings could reach the end of their lifespan in as little as 20 years. The average lifespan of a Chinese building is 35 years, according to property consultancy Cushman & Wakefield. That’s abysmal compared to the average 74 year life span of US buildings and 132 year lifespan of buildings in the UK.
China Audit Report: Local Debt Ratio Up to 189Pct in Some Cities-Caijing 1) Outstanding debts in 36 local governments were close to 3.85 trillion yuan at the end of 2012, up 12.94, or 441 billion from that in 2010. Bank loans accounted for 78.07 percent.
New exit-entry law goes into effect in China – Xinhua | English.news.cn The minimum stay for foreigners holding work certificates has been shortened to 90 days, while the period of validity for residence certificates will now range from 180 days to five years, it says.
China gears up to tackle tainted water : Nature News & Comment In its plan, the government says that it will divide the North China Plain into 30 units for pollution prevention and control, which it will separate into three severity categories — serious, poor and good — to be addressed differently. The details, which have not been publicly released, include an investment of nearly 500 million renminbi (US$81 million) between 2013 and 2020 for a raft of measures across the country: to increase pollution assessments and establish a database of results; to control river pollution from agriculture and point sources from industry and landfill; to treat of polluted areas; and to conduct more research into clean-up and prevention strategies. Among other things, researchers will look into the effects of shale-gas development on groundwater.
China presses Japan to admit Senkaku issue – The Japan News As a condition for holding summit talks with Japan, China has asked that Japan acknowledge the existence of a territorial row between the two countries over the Senkaku Islands and said they would both shelve the issue after that, it has been learned. China’s demand apparently was aimed at changing the government’s official stance that there is no territorial issue over the SenkakuIslands. According to government sources, Prime Minister Shinzo Abe told China that Japan rejects such a demand.
REGION
China Agrees to Asean Talks on Sea Spat Amid Philippine Warning – Bloomberg China agreed to talks with Southeast Asian nations on a set of rules to avoid conflict in the South China Sea, winning praise from diplomats even as the Philippines warned of increased “militarization” of the waters. Talks on a code of conduct between China and the 10-member Association of Southeast Asian Nations will begin in September, according to a joint statement released after the two sides met in Brunei today. The move represents a reversal from a year ago, when Asean failed to show a united front amid Chinese pressure to avoid discussing the topic at regional meetings.
China urges more cooperation between ASEAN, China, Japan, S. Korea – Xinhua Chinese Foreign Minister Wang Yi on Sunday asked for efforts to make cooperation between the Association of Southeast Asian Nations (ASEAN) and China, Japan, South Korea the main cooperation channel in East Asia. The ASEAN+3 (10+3) framework has served as a solid pillar of economic integration in East Asia, said Wang, who was attending an ASEAN+3 ministerial meeting here. Cooperation between the 13 countries should be taken as a means to protect regional peace and prosperity and to better serve the purpose of regional development, he added.
China Takes Friendly Tone at Asean Summit to Counter U.S. Pivot – Bloomberg China may be taking a friendlier tone to isolate the Philippines over a dispute that’s seen several standoffs between Chinese and Philippine vessels. The Philippines has boosted defense ties with Japan and the Obama administration, which since 2011 sought to “pivot” toward Asia following a focus on wars in Afghanistan and Iraq under former President George W. Bush.
Rivals play down China’s overture in S.China Sea, no breakthrough | Reuters Philippine Foreign Minister Albert del Rosario walked into a regional security forum this week to hear his Chinese counterpart Wang Yi reel off a list of complaints against Manila for stirring tensions over the South China Sea. Del Rosario was not scheduled to speak, but after hearing Wang’s speech at Sunday’s closed-door meeting in the kingdom of Brunei, he raised his hand and proceeded to rebut China’s allegations one by one, according to Philippine diplomats. The Singapore foreign minister called it “testy exchanges”
Commentary: Territorial disputes should not overshadow China-ASEAN cooperation – Xinhua China always wishes to turn South China Sea into a water of peace, friendship and cooperation and tries its best to shelve differences and pursue joint development. Most of the ASEAN members have also sent out a clear signal that they will not meddle in the bilateral disputes and value stable fruitful ties with China. After too much theatrics from Manila, it is time for the ASEAN and China to move forward. After all, compared with the bloc’s ambitious plan of regional integration and cooperation, the territorial disputes are at the most a minor distraction.
Jiaolong discovers iron-manganese deposits in South China Sea – Xinhua | This photo taken by China’s manned submersible Jiaolong on July 3, 2013 shows iron-manganese deposits in South China Sea. Extensive iron-manganese deposits were discovered by Jiaolong here on July 3
Chinese trio held near Line of Actual Control–India.com After dealing with the PLA incursion last month, Army personnel have now apprehended three persons of Chinese origin along the Line of Actual Control (LAC) carrying political maps in Arabic language in the same area. The three men, identified as Adil, Salamo and Abdul Khaliq, were nabbed inside the Indian territory on June 12 near Sultanchku and it took nearly 10 days for the authorities to make them give their name, official sources said. All the three men are Sunni Muslims aged between 18 and 23 with fair complexion but their language was not comprehensible, they said.
China doesn’t want ‘unexpected’ border incident, says PLA General – The Hindu People’s Liberation Army (PLA) Major General Luo Yuan, one of China’s most recognised military strategists, has said China does not want to see “unexpected” incidents along the disputed border with India and believes that the situation along the boundary could be effectively managed with the right mechanisms in place. Major General Luo told The Hindu that he did not even see the boundary dispute with India as figuring among China’s top five current military threats or challenges. He identified these threats as the East China Sea, where China is currently engaged in a dispute with Japan; the South China Sea, whose waters and islands are disputed by several countries; and the newly emerging financial, cyberspace and “outer space” threats.
Asia’s Great Game of Ports | Via Meadia China is attempting to hijack India’s port development project in Chabahar, Iran. It’s a sign that the two largest economies in Asia are gearing up for a global battle over commercial harbors. India announced in May that it would fund a $100 million upgrade of the Iranian port, but yesterday the Indian Express reported that China offered Iran just under $80 million in an attempt to yank it out of India’s hands.
Southeast Asia Scales Down on Subsidies – The Diplomat Several Southeast Asian countries have begun scaling down the subsidies they are providing to key sectors of their economies. Last month, the Thai government confirmed that it will soon decrease the rice price subsidy it gives to farmers. In Indonesia, the parliament approved a revised budget that lowered the fuel subsidy. Meanwhile, in the Philippines’ Transportation and Communications chief advised Metro Manila train commuters to prepare for a fare hike since the government will reduce the subsidy for the mass transit service.
Fires Demonstrate Danger of Nuclear Power in Asia – The Diplomat After forest fires raged across the island of Sumatra for a week, swaddling Singapore and parts of Malaysia in dense, toxic haze, Indonesian President Susilo Bambang Yudhoyono on June 24 was contrite. “I, as the president, apologize and seek the understanding of our brothers and sisters in Singapore and Malaysia,” Mr. Yudhoyono said. “Indonesia had no intention to cause this.” But Indonesia has long failed to effectively manage this threat. For Indonesians, but also others in the region, the fires should be a wake-up call because their governments want to build nuclear power plants to generate carbon-free electricity their economies will need.
CAMBODIA
Cambodian Rulers Dogged by Pre-Election Jitters – The Diplomat Scuttlebutt is not normally a major part of the stock-in-trade for journalists covering elections. But in countries like Cambodia with an absence of opinion polls, access to government ministers and the usual spin doctors attempting to mold public opinion, gossip can be as good as it gets. And the rumor mill around Phnom Penh is thriving. The impressions are daunting. Increasingly, the ruling Cambodian People’s Party (CPP) looks paranoid, even delusional, despite widespread expectations that it will easily win the July 28 poll, albeit with a reduced majority.
INDONESIA
Myanmar Rohingya face limbo in Indonesia – Bangkok Post “Indonesia, Muslim country, good,” said Muhammad Yunus, 25, in halting English, after praying at the immigration detention centre in the town of Lhokseumawe. But while the population at large is accepting of the increasing number of Rohingya washing up in Indonesia, authorities have not extended the same warm welcome. Although president Susilo Bambang Yudhoyono has publicly expressed backing for the stateless minority, Rohingya who make it to Indonesia can end up living in legal limbo for years.
Australia’s new PM in Indonesia for boat-people talks – Bangkok Post Newly reinstated Prime Minister Kevin Rudd was to meet Indonesia’s president on Friday for talks focused on asylum-seekers with thousands defying deadly perils to try to reach Australia by sea. On his first foreign trip since ousting Julia Gillard barely a week ago, the Australian leader will meet with President Susilo Bambang Yudhoyono to tackle a subject that will be key in upcoming elections.
Aid reaches Indonesia villages after deadly quake – Bangkok Post Aid began to trickle in to devastated villages in Indonesia’s Aceh province on Thursday where thousands have been left homeless after a powerful earthquake that killed at least 30 people. The 6.1-magnitude tremor sparked landslides, flattened buildings and injured hundreds in the natural disaster-prone province, where a tsunami triggered by an earthquake in 2004 claimed more than 170,000 lives.
LAOS
Logistics and the Lao economy: Linking up and reaching out – Bangkok Post
MYANMAR/BURMA
Myanmar rethinks natural resources contracts – Mizzima The Myanmar government plans to renegotiate billions of dollars of natural resource deals as it imposes tougher environmental standards and clamps down on corruption, a leading US think tank said Monday. The country’s powerful military and Chinese firms could be most affected by the move as the government pursues a radical reform agenda, turning away from decades of junta rule, according to the Asia Society.
THE PHILIPPINES
Philippines to Modernize Air Force Amid China Row – The Diplomat The Philippines will modernize its air force by 2016 President President Benigno S. Aquino III said on Monday, local media reported. “Be assured that before I step down from office [in 2016], our skies will teem with new and modern equipment such as lead-in fighters, long-range patrol aircraft, close air support aircraft, light lift fixed-wing aircraft, medium lift aircraft, attack helicopters, combat utility helicopters, air defense radar and flight simulators,” Aquino said in a speech marking the 66th anniversary of the founding of the Philippines Air Force.
Trigger happy: The Philippines’ protection paradox claims more lives as the black market in weapons thrives – SEA Globe Celebratory gunfire echoed across the Manila suburb as residents revelled in New Year festivities in December. But tradition turned to tragedy when a stray bullet hit seven-year-old Stephanie Nicole Ella in the head. Her death reignited fierce debate over gun control in the Philippines, a country whose enthusiastic gun culture rivals that of the United States. Home to 3.9 million privately owned firearms, the archipelagic nation has one of the highest gun ownership rates in Southeast Asia and a high incidence of violent crime. In January, a ten-minute-long shootout linked to a gambling turf war left 13 dead in Quezon, among them corrupt police and military officers. A few days later, a drug-crazed gunman killed seven people in a slum rampage in Cavite.
THAILAND
Chalerm warns Yingluck of her ‘ice-cream gang’ – The Nation A disaffected Labour Minister Chalerm Yoobamrung yesterday warned Prime Minister Yingluck Shinawatra that she was setting her government up for an early demise thanks to her new “ice-cream gang”. Chalerm was apparently referring to Yingluck’s young aides. After reporting for work at the Labour Ministry for the first time since the Cabinet reshuffle, Chalerm spent more than an hour complaining about his transfer. He previously held the post of deputy prime minister.
VIETNAM
Confidence votes held nation-wide – Vietnam News Chairwoman of the city’s People’s Council Ngo Thi Doan Thanh yesterday received the highest number of high confidence votes (91.58 per cent) in the first attempt to publicly assess the work of top officials. The voting was carried out by the 93 deputies at the People’s Council. Similar events were held across the country over the past few days in accordance with a resolution issued by the National Assembly Standing Committee.
Regional Roundup for Week of 5.17.2013
