China Restricts Exports of Drones, Supercomputers

china-drone

China has been strengthening its control over its technology industry, as it seeks to avoid infiltration by foreign spies and build up globally competitive tech companies.

Eva Dou reports: China is curbing its exports of advanced drones and supercomputers, in the country’s latest move to tighten control over technologies linked to national security.

Starting in mid-August, Chinese makers of super-powerful drones and some advanced computers will have to obtain an export license, according to a statement from China’s Ministry of Commerce and the General Administration of Customs on Friday.

Computers will require an export license if they exceed 8 “teraflops” – which means they can process more than 8 trillion calculations a second, roughly equivalent to the processing power of 33 Xbox 360s.

China has been strengthening its control over its technology industry, as it seeks to avoid infiltration by foreign spies and build up globally competitive tech companies.

Read the full story here, at China Real Time Report – WSJ]

China’s drones have also caused political incidents in recent months, after unmanned aircraft sold by Shenzhen-based SZ DJI Technology Co. were flown onto the roof of the office of Japanese Prime Minister Shinzo Abe and the grounds of the White House in Washington. Tensions flared between Pakistan and India last month after Pakistan’s military shot down an Indian “spy drone” in the disputed region of Kashmir that appeared from pictures to be made by DJI. Read the rest of this entry »


[VIDEO] Animation Convention: Characters Turn Out for Hong Kong’s Comic Fair


The city’s biggest animation convention draws thousands of comic lovers each year. Fictional characters too make an appearance. We speak to superheroes Spiderman and Captain America, and Minions. Photo/Video: Joyu Wang/The Wall Street Journal

 


Beijing Announces Addition of ‘White House Fence Jumping’ Event to 2022 Olympics

White House Fence

Though controversial, the addition of ‘White House Fence Jumping’ and ‘Freestyle White House Barricade Jumping‘ events to Beijing’s 2022 Olympics is seen as an important effort to bring creativity and excitement to Olympic competition in the 21st century.

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A full-scale model of the White House’s newly-erected barricades and pointy fences is being constructed in a top-secret location near Beijing. Government sources declined to comment.

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#Robot Waitress Debuts in #Zhejiang

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On Wednesday, a company in Yiwu, eastern China Zhejiang Province, has finally launched their first batch of catering robots that can deliver food to customers, and other types of robots such as security robots after a three-year endeavor. Such gorgeous-looking robots are expected to be available in the market very soon. These robots basically consist of human simulations and chasses, through which they can discern the chromatism on the floor and thereby make moves. Catering robots are able to endure weight of more than 35 kg while security robots patrol on their own.


[VIDEO] Who’s the Champion of the Panda Kingdom? 37-Year-Old Senior Citizen ‘Jai Jai’ Breaks World Record in Hong Kong

Jai Jai has become the world’s oldest captive panda at the grand old age of 37, entering the history books and breaking a 16-year-old record, from her home in Ocean Park, Hong Kong.


China’s Aim to Rewrite Rules of Global Internet

china-web-wsj

Mission: Control online discourse, reduce U.S. influence

SHANGHAI— James T. Areddy writes: As social media helped topple regimes in the Middle East and northern Africa, a senior colonel in the People’s Liberation Army publicly warned that an Internet dominated by the U.S. threatened to overthrow China’s Communist Party.

Ye Zheng and a Chinese researcher, writing in the state-run China Youth Daily, said the Internet represented a new form of global control, and the U.S. was a “shadow” present during some of those popular uprisings. Beijing had better pay attention.

Four years after they sounded that alarm, China is paying a lot of attention. Its government is pushing to rewrite the rules of the global Internet, aiming to draw the world’s largest group of Internet users away from an interconnected global commons and to increasingly run parts of the Internet on China’s terms.

Unlike Putin, Xi Jinping is someone Obama does not want to alienate. | AP Photo

Flexibility

“Many Western companies are surrendering to Beijing’s rules so they can build a position in China, with an online population nearing 700 million.”

It envisions a future in which governments patrol online discourse like border-control agents, rather than let the U.S., long the world’s digital leader, dictate the rules.

“Ye Zheng and a Chinese researcher, writing in the state-run China Youth Daily, said the Internet represented a new form of global control, and the U.S. was a “shadow” present during some of those popular uprisings.”

President Xi Jinping—with the help of conservatives in government, academia, military and the technology industry—is moving to exert influence over virtually every part of the digital world in China, from semiconductors to social media. In doing so, Mr. Xi is trying to fracture the international system that makes the Internet basically the same everywhere, and is pressuring foreign companies to help.

“Four years after they sounded that alarm, China is paying a lot of attention.”

On July 1, China’s legislature passed a new security law asserting the nation’s sovereignty extends into cyberspace and calling for network technology to be “controllable.” A week later, China released a draft law to tighten controls over the domestic Internet, including codifying the power to cut access during public-security emergencies.

[Read the full story here, at WSJ]

Other draft laws under consideration would encourage Chinese companies to find local replacements for technology equipment purchased abroad and force foreign vendors to give local authorities encryption keys that would let them control the equipment.

Chinese officials referred questions about Internet policy to the Cyberspace Administration of China, a recently formed government body. That agency declined to make an official available to comment for this article. Read the rest of this entry »


The Iran Deal Isn’t Anything Like Nixon Going to China

obama-bow

Historical analogies most popular with the administration reveal precisely why this deal is so fraught with risk.

Analogies, Sigmund Freud once wrote, decide nothing, but they can make one feel more at home. President Obama is explicitly comparing his diplomatic triumph with Iran to President Nixon’s opening to China in 1972. Nixon, the president explained in a July 14 interview with New York Times columnist Thomas Friedman, “understood there was the prospect, the possibility, that China could take a different path” of “very important strategic benefit to the United States” — a point repeated in supportive commentary by Fareed Zakaria, and others. Meanwhile, former Obama National Security Council official Phil Gordon has cast the president’s breakthrough with Iran as a noble contrast to the George W. Bush administration’s alleged rejection of diplomacy with North Korea, claiming that Pyongyang developed nuclear weapons because Bush refused to implement a similar disarmament framework with North Korea negotiated by President Bill Clinton.

It is not surprising that an administration that came into office rejecting geopolitics and poo-pooing strategy in favor of “don’t do stupid [stuff]” would treat history as a plaything for twitter-sized talking points. But the historical analogies most popular with the administration reveal precisely why this deal is so fraught with risk.

Chairman Mao Tse-tung, left, welcomes US President Richard Nixon at his house in Beijing (AFP)

Chairman Mao Tse-tung, left, welcomes US President Richard Nixon at his house in Beijing (AFP)

[Read the full text here, at ForeignPolicy.com]

Nixon was right to play the China card against the Soviets in 1971 — but for reasons that simply do not apply to Iran. First, in 1971, China already had nuclear weapons and Nixon never asked Mao to abandon them. Second, the Soviet threat to Washington and Beijing, which ultimately drove the two countries together, was incalculably graver than the threat posed by the Islamic State to either Iran or the United States (the president and National Security Adviser Susan Rice have dismissed the Islamic State as “the JV team” and “not an existential threat” so perhaps they do not even really believe their own Nixon analogies). Third, the more militant, pro-Soviet faction in China led by Lin Biao had been purged by 1971, whereas Iran’s Revolutionary Guard Corps and its Quds Force are on the ascendance and, in fact, will gain billions of dollars as a result of being delisted from the sanctions list. Read the rest of this entry »


[VIDEO] Palace Intrigue: Chinese Soldiers Storm Replica of Taiwan Presidential Office

Chun Han Wong reports: Is Beijing doubling down on its longstanding threat to reclaim Taiwan by force? That’s a concern for some Taiwanese after China’s state broadcaster showcased a recent military drill that featured soldiers storming an apparent replica of the island’s presidential palace.

“The Chinese Communist Party hasn’t given up on armed assault on Taiwan, and their military preparations are still geared toward the use of force against Taiwan.”

— Major Gen. David Lo, spokesman for Taiwan’s Ministry of National Defense

Officials in Taipei have denounced the drill as harmful to the rapprochement of recent years between Taiwan and China, after decades of hostility following a civil war in the middle of the last century. Political and military experts, meanwhile, say the apparent targeting of an important political symbol for Taiwan marks Beijing’s latest bid to sway Taiwanese voters ahead of a key presidential poll next January.

“Militaries routinely practice fighting in combat scenarios based on their operational priorities and strategic realities. For the PLA, this would mean missions in the South China Sea, in the East Sea, and of course Taiwan.”

— Ni Lexiong, a Shanghai-based military scholar

The newsreel in question, first aired by China Central Television on July 5, featured dramatic footage of an annual military exercise in northern China—spanning fiery artillery barrages, imposing armored columns and infantry assaults on a mock-up city. The video went largely unnoticed until Wednesday, when a Shanghai-based media outlet said it demonstrated how Beijing “would use force to solve the Taiwan issue.”

A screenshot of the CCTV report, which shows soldiers storming a structure that bears a resemblance to Taiwan’s presidential palace. youtube.com

A screenshot of the CCTV report, which shows soldiers storming a structure that bears a resemblance to Taiwan’s presidential palace. youtube.com

The CCTV report swiftly struck a nerve in Taiwan, where President Ma Ying-jeou’s engagement policies with China have proved divisive, compounding the declining public support his ruling Nationalist Party is experiencing over economic and social fairness issues.

[Read the full story here, at China Real Time Report – WSJ]

Many commentators on Taiwanese media directed their ire on segments from the newsreel that appeared to show Chinese troops advancing toward a red-and-white structure that closely resembled Taiwan’s Presidential Office—built in a distinctive European-style in the 1910s by Japanese colonial administrators.

A photo of the actual presidential palace. Bloomberg News

A photo of the actual presidential palaceBloomberg News

 “By making the threat more recognizable and immediate than missiles fired off Taiwan’s northern and southern tips, or drills simulating an amphibious assault, Beijing may hope to engage ordinary Taiwanese not at the intellectual and abstract level, but on an emotional one.”

— J. Michael Cole, a Taipei-based senior fellow with the University of Nottingham’s China Policy Institute

The implied assault on Taipei was “unacceptable for the Taiwanese public and the international community,” Major Gen. David Lo, spokesman for Taiwan’s Ministry of National Defense, told local media Wednesday. Read the rest of this entry »


Apple’s Big Growth Driver: China

Westlake Apple Store, Hangzhou, China

Daisuke Wakabayashi reports: The biggest growth driver at Apple is not any single product. It’s China. 

The numbers are shocking. Apple’s revenue in greater China – defined by the company as China plus Hong Kong and Taiwan – rose 112% in the fiscal third quarter ended June. This means that growth is accelerating in China after a 71% increase in the previous quarter, which was considered something of a seasonally-inflated surge because it encompassed the Chinese Lunar New Year, a peak shopping period in the country.

“The macro picture looks fantastic. Maybe there are minor thunderstorms now and then, but that kind of goes with the territory. We’re just getting started there.”

— Apple Chief Executive Tim Cook

Apple Chief Executive Tim Cook said he expects China to become the company’s biggest market at some point in the future. It appears that future is fast approaching. (Apple’s biggest market now is the Americas where revenue was $20.2 billion compared to $13.2 billion for Greater China, but revenue in the company’s home market grew a more pedestrian 15%.)

apple-tim-cook-china-mobile

“China is a fantastic geography with an incredible unprecedented level of opportunity there. And we’re going to be there.”

— Cook, in a conference call with analysts

A growing reliance on the Chinese market does expose Apple to concerns about China’s economy, exacerbated by the recent pullback in the Shanghai stock market. On Wednesday, Cowen & Co. analyst Timothy Acuri downgraded Apple’s stock to a “market perform” in part because he said he saw lower-than-expected iPhone sales as a cause for concern due to mounting evidence of “a widespread demand reset from China.”

Cook said the company’s bullish view about China’s future remains unchanged. He said it is still planning to increase the number of Apple stores in China to 40 by mid-2016 from 22 currently. Read the rest of this entry »


With a Few Words, Japan Escalates Its Standoff With China in the South China Sea

japan-china-vicenews

Japan isn’t the only one pushing back against China’s expansion in the region.

Jennifer Peters reports: Japan has put its foot down — at least in writing — over China’s attempts to assert greater control of the South China Sea.

In an outline of a defense white paper due to be released at the end of July, Japan calls China’s efforts to lay claim to the much-disputed Spratly Islands “high handed.” The diplomatically sharp words come in the wake of China’s reclamation efforts of the islands, which have included laying the foundations of a military base on Fiery Cross Reef at the western edge of a part of the South China Sea fittingly named Dangerous Ground.

“The Chinese take kind of a Leninist approach to these things,” Currie said. “They probe with the bayonet until they hit steel, and then they’ll stop. When they start to see that people are serious about pushing back, then they will back off a bit.”

Over the past year and a half, China has built up seven reefs in the region, adding 800 hectares — about three square miles — to islands and putting an airstrip and the beginnings of the base on Fiery Cross Reef. China has claimed that its structures in the South China Sea are for civilian purposes — or at most for a defensive military role — and would benefit other countries. But Japan’s fight with China over the Senkaku Islands in the East China Sea has seemingly left them wary of Beijing’s intentions.

A Japanese patrol plane, pictured in 2011, flying over the disputed islands in the East China Sea.

A Japanese patrol plane flying over the disputed islands in the East China Sea. Japan Pool, via Jiji Press

“The US plays a unique role, because it’s not an Asian nation, as a relatively distant and disinterested outsider there. The interest we have is not territorial, it’s not to benefit ourselves in any way other than maintaining this open trade order that we benefit from economically, but not in any of the traditional ways that usually cause war.”

Japan’s decision to act on this wariness so stridently, however, is a recent phenomenon. Prime Minister Shinzo Abe has been pushing for legislation that would allow Japan to participate in collective self-defense for the first time since World War II.

[Related: China Goes on the Offensive in the South China Sea]

“[This is] a shift that’s been coming,” Kelley Currie, a senior fellow with the Project 2049 Institute, told VICE News. “The language is definitely stronger, and the whole effort around reinterpretation to the self-defense constitution has been a response to the multi-year trend of the Chinese being more aggressive and pushing their military advantage in the region.”

Japan's Self-Defense Force honor guards prepare for a welcoming ceremony of new Defence Minister Gen Nakatani in Tokyo on December 25, 2014. Prime Minister Shinzo Abe promised December 24 at the start of his new term to revive Japan's economy so he can pursue "powerful diplomacy", but China's state media warned him to be wary about changing the pacifist constitution.  AFP PHOTO / KAZUHIRO NOGI        (Photo credit should read KAZUHIRO NOGI/AFP/Getty Images)

China’s state media warned Abe to be wary about changing the pacifist constitution. AFP PHOTO / KAZUHIRO NOGI 

“China is actually very worried about Japan and how far Japan might go.”

— Michael Auslin, resident scholar and director of Japan Studies for the American Enterprise Institute

Japan isn’t the only one pushing back against China’s expansion in the region. The Philippines is taking China to court over territorial claims to the South China Sea, with top Filipino officials appearing at The Hague to argue their case before a United Nations arbitral tribunal. China has called it a “political provocation.”

[Read the full text here, at VICE News]

“The Chinese take kind of a Leninist approach to these things,” Currie said. “They probe with the bayonet until they hit steel, and then they’ll stop. When they start to see that people are serious about pushing back, then they will back off a bit.”

Other than the United States, Japan is the only nation that can truly challenge China in the region militarily. Read the rest of this entry »


[VIDEO] End of the Umbrella Revolution: ‘Hong Kong Silenced’


In September 2014, VICE News documented the birth of the so-called Umbrella Movement in Hong Kong. When students organized a weeklong strike to protest China’s handling of the local election process, the government responded with tear gas.

Thousands of Hong Kong residents took to the city’s streets in solidarity with the students and the protesters occupied several major roads for weeks on end.

[Read more about the Umbrella Movement at punditfromanotherplanet.com]

Nearly two months into the occupation, the demands and resolve of the protesters remained unchanged. They started to become fatigued and divided against each other, however, and public support for their cause began to decline. The movement was under immense pressure to either escalate their action, or to retreat and give back the streets.

When VICE News returned to Hong Kong near the end of 2014 to check in on the protesters, we witnessed the final days of the Umbrella Movement’s pro-democracy demonstrations.

Watch “Hong Kong Rising

Read “Hong Kong Leader Warns Concessions Could Lead to ‘Anarchy,’ as Scuffles Break Out in ParliamentRead the rest of this entry »


[VIDEO] Most Corrupt Nation on Earth: 26 Surprising Facts About North Korea

North Korea is officially the most corrupt country in the World. The Corruption Perceptions Index ranks every country in the world from 0 to 100, based on how corrupt it is, with a score of 0 being very corrupt and 100 meaning very clean. Every year North Korea ties with Somalia for last place. Let’s uncover the most disturbing facts about the World’s favourite hermit kingdom.

 


Political Chill in Beijing: Xi Turns Back the Clock on Women’s Rights in China

vintage-chinese-clock

An emboldened Beijing clamps down on civil liberties

Andrew Browne writes: Although it would be almost unthinkable today, as a political chill descends over Beijing, two decades ago close to 30,000 women from around the world converged on a muddy tent village outside the Chinese capital to
promote a host of social and political causes.

“Even though the so-called ‘Feminist Five’ were released from custody in April, they say they are still being treated as criminal suspects.”

The carnival-style NGO Forum on Women made the authorities nervous, but it was part of the U.N.’s Fourth World Conference on Women, which China agreed to host as a way to polish its international image still tarnished by the army’s brutal suppression of student protests at Tiananmen Square in 1989. Hard-liners in charge at the time evidently figured the political discomfort was worth the gains to China’s global prestige.
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“Just as President Xi Jinping prepares to attend a U.N. summit in New York in September to mark the 20th anniversary of the landmark women’s conference, his administration has begun to clamp down on independent women’s groups for the first time since the NGO Forum.”

Tibetan activists set up stalls. Amnesty International, in China for the first time, rebuked the Chinese government over its human rights practices at a news conference. Then U.S. First Lady Hillary Clinton, one of the celebrity attendees, made herself popular with the women by lecturing her Chinese hosts about free speech and assembly after they withheld visas for some of the delegates.

Fem-Five-WSJ

The event became a watershed moment for the Chinese women’s movement. Because foreign NGOs would be there, Chinese authorities had to allow local NGOs to set up and participate.

They never looked back—until now.

Ironically, just as President Xi Jinping prepares to attend a U.N. summit in New York in September to mark the 20th anniversary of the landmark women’s conference, his administration has begun to clamp down on independent women’s groups for the first time since the NGO Forum.

The restrictions underscore just how far Mr. Xi is turning back the clock on civil liberties in China—all the way to the days of harsh political repression that followed the crushing of the Tiananmen Square demonstrations.

[Read the full story here, at WSJ]

They also reveal a transformation in the mind-set of the government, still fearful of organized political opposition but so confident in China’s elevated place in the world that it no longer feels much compulsion to make concessions to its international critics. Read the rest of this entry »


Pundit Planet Math: Industrial Accident + Chinese Surgeons = Photo of the Day

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Zhou had his left hand chopped off during a work accident involving a spinning blade machine and was rushed to hospital

CAROLINE MORTIMER reports: Chinese surgeons have saved a hand severed in an industrial accident by grafting it on to the man’s ankle for a month before reattaching it to his arm. The surgery was carried on a factory worker known as Zhou at Xiangya Hospital in Changsha, the capital of Hunan province in central China.

Zhou had his left hand chopped off during a work accident involving a spinning blade machine and was rushed to hospital where Dr Tang Juyu, head of microsurgery at the hospital, decide to operate to give him the chance to “revive” his lost hand.

The surgical team were unable to reattach the hand to Zhou’s arm straight away as the severed nerves and tendons needed time to heal.

So his hand was sewn onto his leg in order to keep it “alive” until the arm was ready. Read the rest of this entry »


Japan’s Peaceful Self-Defense

japan-protest-bloomberg

Shinzo Abe moved closer Thursday to securing passage of legislation that will allow Japan to participate in collective self-defense. After seven decades of sheltering under the U.S. security umbrella, the Prime Minister’s move would give Tokyo the ability to fight alongside an ally when either one is threatened, while protecting stability and democracy in East Asia.

The Cabinet adopted a new interpretation of Japan’s postwar Constitution last July allowing this cooperation. In April the U.S. and Japan announced new defense guidelines to put it into practice. On Thursday the lower house of the Diet approved the plan, and now the legislation moves to the upper house.

[Read the full text here, at WSJ]

Progress hasn’t come easily. Most Japanese oppose the plan, and according to an Asahi poll, Mr. Abe’s approval rating has fallen sharply to 39%. There have been tussles on the Diet floor and raucous protests outside it. Mr. Abe will need the support of coalition partners with pacifist tendencies to prevail in the upper house, though he could still overcome a defeat there with a two-thirds majority in the lower one. Read the rest of this entry »


Disillusionment Among Hong Kong’s Youth Fuels Uneasy Separatist Longings

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The youngsters are members of a new front that is using increasingly aggressive tactics to demand an independent Hong Kong free from mainland China’s grip.  

Viola Zhou and Claire Baldwin report: On a recent Sunday night in the working-class Hong Kong district of Mong Kok, a group of radical young activists swore through loudspeakers and gestured rudely as they denounced mainland Chinese as “prostitutes” and “barbarians.”

The youngsters are members of a new front that is using increasingly aggressive tactics to demand an independent Hong Kong free from mainland China’s grip.

Their separatist yearnings have alarmed Beijing and the pro-Beijing Hong Kong government which are fighting back to win hearts and minds and forge a spirit of “love China, love Hong Kong” with multimillion-dollar information drives and exchanges.

The animosity on display in Mong Kok was virtually unheard of until recently, despite resentment toward mainlanders flooding into Hong Kong, and follows unsuccessful protests to demand full democracy in the city late last year.

The 'Umbrella Revolution' rallies together again after the October 21 talks

“I never call myself Chinese at school because it is a shame to be Chinese,” said 16-year-old “Gorilla” Chan, who, unbeknownst to his parents, founded a radical group with a 14-year-old friend.

He said violence is almost inevitable.

“That day will come sooner or later if Hong Kong remains like this,” Chan said.

Beijing sees national unity as sacrosanct and has ruled Hong Kong under a “one country, two systems” formula, allowing broad autonomy, since the city returned from British rule in 1997.

But Hong Kong’s prodemocracy movement, spearheaded by fresh-faced youngsters, has shaken the assumption of cozy accommodation between the mainland’s communists and the capitalist enclave.

The protesters demanded full democracy in a 2017 election for the city’s leader. But Beijing insists the leader will be chosen from a list of candidates it approves.

The anti-China radicals were galvanized by the democracy protests and gained traction later during protests against mainland shoppers swamping Hong Kong and buying up various items, including formula milk, and pushing up prices. Read the rest of this entry »


Chinese Web Censors Not Happy About Uniqlo’s Changing-Room Sex Viral Video

Uniqlo sex video: Police investigate smartphone footage showing couple doing the ‘secret communist handshake’ in Uniqlo’s Beijing flagship store changing room

Laura Lorenzetti reports: A sex tape filmed in a changing room of Uniqlo’s Beijing flagship store went viral on Chinese social media, sending national authorities into a tizzy.

Uniqlo changing room

“Uniqlo, which is owned by Fast Retailing, denies any such association, releasing a statement that customers should ‘abide by social ethics, maintain social justice and correctly and properly use the fitting spaces.’”

The short video, which features a black-clad male having sex with a naked woman, was condemned by Chinese officials as going “severely against socialist core values,” according to the South China Morning Post.

China-reprimands-online-compan

Internet censors scrambled to ban and eliminate the clip after it spread across popular social networks like Weibo and WeChat Tuesday. It has reportedly been removed from the Internet by the Cyberspace Administration of China and an investigation has been launched to find out who made the clip.

Uniqlo3

Chinese authorities have also ordered social media executives to help uncover the source of the video, while Uniqlo has come under fire for using it as a publicity ploy. Read the rest of this entry »


Shopping Abroad: China’s Rich Seek Shelter from Stock Market Storm in Foreign Property

property-chines

Around 91,000 wealthy Chinese sought second citizenship between 2000 and 2014, a factor that is fueling demand to buy foreign property

Jane Wardell and Kate Holton report: Realtors in Australia, Britain and Canada are bracing for a surge of new interest in their already hot property markets, with early signs that wealthy Chinese investors are seeking a safe haven from the turmoil in Shanghai’s equity markets.

“There is anecdotal evidence that Chinese buyers have intensified their interest in ‘safe haven’ global property markets, including London, as a result of the recent stock market volatility.”

Sydney realtor Michael Pallier said in the past week alone he has sold two new apartments and shown a A$13.8 million ($10.3 million) house in the harbourside city to Chinese buyers looking for an alternative to stocks.

“A lot of high net worth individuals had already taken money out of the stock market because it was getting just too hot,” Pallier, the principal of Sydney Sotheby’s International Realty, said. “There’s a huge amount of cash sitting in China and I think you’ll find a lot of that comes to the Australian property market.”

foreign-buyers

“It is unusual to see the Chinese block buying, it implies that this is a capital movement rather than just individuals looking to park money.”

Around 20 percent has been knocked off the value of Chinese shares since mid-June, although attempts by authorities to stem the bleeding are having some effect.

Many wealthy Chinese investors had already cashed out. Major shareholders sold 360 billion yuan ($58 billion) in the first five months of 2015 alone, compared to 190 billion yuan in all of 2014 and an average of 100 billion yuan in prior years, according to Bank of America Merrill Lynch.

While much of that money may initially be parked in more liquid assets like U.S. Treasury bonds and safe-haven currencies such as the Swiss franc, there is growing evidence that foreign property sales may receive a boost.

yuan

“Chinese investors had already sunk around $5 billion into U.S. real estate in the first six months of 2015, more than the $4 billion they invested in the whole of 2014.”

“There is anecdotal evidence that Chinese buyers have intensified their interest in ‘safe haven’ global property markets, including London, as a result of the recent stock market volatility,” said Tom Bill, head of London residential research at Knight Frank.

Ed Mead, executive director of realtor Douglas & Gordon in London, said his firm had seen two buyers from China looking to buy whole blocks of flats.

State Department officials said they are reviewing the sale of the famous hotel to a Chinese insurance company with possible ties to the country's Communist Party. JUSTIN LANE/EPA

State Department officials said they are reviewing the sale of the famous hotel to a Chinese insurance company with possible ties to the country’s Communist Party. JUSTIN LANE/EPA

“It is unusual to see the Chinese block buying, it implies that this is a capital movement rather than just individuals looking to park money.”

RICH EXODUS

Since 2000, China has had the world’s largest outflow of high net worth individuals. Around 91,000 wealthy Chinese sought second citizenship between 2000 and 2014, according to a report by residence investment broker Lio Global, a factor that is fueling demand to buy foreign property. Read the rest of this entry »


The Cultural Revolution Spreads to Hong Kong

cultural-rev-hk-wsj

Because that’s how we roll: The Communist Party’s way of doing business is coming to the city

Stephen Vines writes: The dark days of China’s Cultural Revolution are being revisited in Hong Kong.

Thankfully, this time there is no bloodshed or widespread mayhem. But Beijing’s local loyalists are using some of the same rhetorical tactics to isolate and intimidate pro-democracy figures.

“Now in Hong Kong opposition politicians and their supporters are routinely accused of consorting with and being funded by foreign powers; of advocating the violent overthrow of the state; and of perpetrating child abuse—the last charge based on the large numbers of young people who joined Hong Kong’s antigovernment protests.”

Back then the search was on for “traitors” who were named, shamed and then terrorized, often to a fatal degree. Now in Hong Kong opposition politicians and their supporters are routinely accused of Chinese leader Xi Jinpingconsorting with and being funded by foreign powers; of advocating the violent overthrow of the state; and of perpetrating child abuse—the last charge based on the large numbers of young people who joined Hong Kong’s antigovernment protests.

“Less-high-profile individuals have also encountered employment problems. RTHK, the public broadcaster, is under relentless pressure to sack certain people. And in privately owned media, columnists have been removed and other journalists have been told that the time has come to toe the line.”

These sorts of accusations are routinely found on the pages of Hong Kong’s increasingly rabid Communist newspapers. While largely ignored by the bulk of the population, these publications are carefully scrutinized by the leaders of the local government because their content enjoys Beijing’s imprimatur.

“The Communist press has also been in the forefront of a wider campaign to “expose” the democratic movement’s leaders, accusing them of being in the pocket of overseas governments and in receipt of illicit funding.”

One of their current targets is Johannes Chan, former dean of the law school at Hong Kong University and a respected professor. His main “crime” is his association with another legal scholar, Benny Tai. Mr. Tai was one of the founders of the Occupy Central movement that morphed into the Umbrella Movement street protests last year.

[Read the full text here, at WSJ]

The communist press has been busy darkly hinting that Prof. Chan is somehow involved in unlawful funding of the protest movement and that he neglected his academic duties. Following these accusations, his appointment to a pro-Vice Chancellor post was blocked.

Another academic targeted was political scientist Joseph Cheng, who was demoted prior to retirement and threatened with a denial of his pension. The accusations in this instance were even more extreme, ranging from charges of plagiarism to abuse of office.

china-communist-propaganda

The Communist press has also been in the forefront of a wider campaign to “expose” the democratic movement’s leaders, accusing them of being in the pocket of overseas governments and in receipt of illicit funding. Read the rest of this entry »


‘Pancake Man': Chinese Super Hero Movie Heads For U.S.

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 reports: Chinese super hero comedy “Pancake Man (“Jian Bing Man),” which features cameos from Jean-Claude van Damme, is set to get a North American release on July 24.

Pancake” and Hong Kong-made sports action picture “To The Fore” will both be distributed by Milt Barlow’s specialty company Asia Releasing on behalf of rights holder Magnum Films.

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Jian Bing Man,” which is a Wanda Pictures release in China, is the tale of a street pancake vendor who gains super powers from the breakfast dishes he serves. It is directed by Da Peng and stars Chinese actors Ada Liu (“Badges of Fury”) and Yuan Shanshan (“One Day”) and includes Hong Kong comedy favorites Eric Tsang and Sandra Ng. Read the rest of this entry »


China Just Did What?

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Chriss W. Street continues:

…China is about to show its third straight quarter of negative real (after inflation) GDP growth. The nation had been relying on a stock market boom to play a “decisive role” in funding the nation’s “Silk Road” reforms to transition to a consumer economy.

But as Breitbart News warned in “China’s Lehman Brothers Weekend Begins,” the “Red Dragon” has suffered a financial collapse equivalent in degree to the U.S. stock crash in 2008-9. Unlike the U.S., which used a formal government bailout to stabilize markets, the Communist Party instructed the nation’s banks to use their own balance sheets to guarantee the current $8 trillion stated value of all of China’s 2800 listed stocks.

As Stratfor’s John Minnich points out, “market capitalization of Chinese stock markets hovered around $1 trillion to $2 trillion” before the recent stock boom. At its peak on June 12, “China’s stock market capitalization, all the markets across the country, was something in the area of $10 trillion to $11 trillion.”

[Read the full text here, at Breitbart.com]

Minnich comments that people before the boom might gamble some of their personal savings into the stock market, but “it wasn’t critical to financing, corporate financing in the Chinese economy. Almost all corporate finances came through the state-owned banks.” Read the rest of this entry »


Chinese Stock Market Chaos Could Be Worse Than Greek Debt Crisis: ‘The Disorder Could Be Monstrous’

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While the world worries about Greece, there’s an even bigger problem closer to home: China

A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder.

“If China does not find support today, the disorder could be monstrous.”

And the effects for Australia could be serious, affecting our key commodity exports and sparking the beginning of a period of recession-like conditions.

“State-owned newspapers have used their strongest language yet, telling people ‘not to lose their minds’ and ‘not to bury themselves in horror and anxiety’. [Our] positive measures will take time to produce results,” writes IG Markets.

“All short-selling — the practice of betting that stocks will fall — has been banned, and Chinese media has rushed to reassure citizens.”

“If China does not find support today, the disorder could be monstrous.”

In an extraordinary move, the People’s Bank of China has begun lending money to investors to buy shares in the flailing market. The Wall Street Journal reports this “liquidity assistance” will be provided to the regulator-owned China Securities Finance Corp, which will lend the money to brokerages, which will in turn lend to investors.

The dramatic intervention marks the first time funds from the central bank have been directed anywhere other than the banks, signalling serious concern from authorities about the crisis.

At the same time, Chinese authorities are putting a halt to any new stock listings. The market regulator announced on Friday it would limit initial public offerings — which disrupt the rest of the market — in an attempt to curb plunging share prices.

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“The market crash there is generating headlines, but it’s not going to have the same impact as a comparable crash would in a developed market.”

While the exact amount of assistance hasn’t been revealed, the WSJ reports no upper limit has been set.

All short-selling — the practice of betting that stocks will fall — has been banned, and Chinese media has rushed to reassure citizens.

Yesterday, shares in big state companies soared in response to the but many others sank as jittery small investors tried to cut their losses, Associated Press reports. The market benchmark Shanghai Composite closed up 2.4 percent but still was down 27 percent from its June 12 peak.

Experts fear it could turn into a full-blown crash introducing even more uncertainty into global markets as Europe teeters on the edge of a potential eurozone exit by Greece, after Sunday’s controversial referendum.

For Australia, the market crash in China is likely to impact earnings on key exports iron ore and coal, further slashing government revenue, while also putting downward pressure on the Australian dollar.

Jordan Eliseo, chief economist with ABC Bullion, said it was important to remember that the amount of wealth Chinese citizens have tied up in the stock market is relatively minor compared with western investors.

Stocks only make up about 8 per cent of household wealth in China, compared with around 20 per cent in developed nations. Read the rest of this entry »


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