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NEVER FORGET

2014-03-18

Beijing Review 2014年10期

Historians as well as survivors and family members of the victims of the 1937 Nanjing Massacre gather in Nanjing, east Chinas Jiangsu Province, on February 26, supporting a draft decision submitted to the Standing Committee of the National Peoples Congress (NPC), Chinas top legislature, which suggests setting national memorial days to commemorate the victory in the war against Japanese invasion, and the victims of the 1937 Nanjing Massacre.

According to the draft decision, September 3 is proposed to mark victory in the Chinese War Against Japanese Aggression from 1937 to 1945, and December 13 to commemorate the deaths of more than 300,000 Chinese people who were slaughtered by Japanese aggressors near the end of 1937.

On February 27, the NPC Standing Committee approved the two national days.

Green Coverage

Chinas forests such as that pictured to the right covered 21.63 percent of the countrys land at the end of 2013, a rise of 1.27 percentage points compared to five years ago, a State Forestry Administration survey showed.

Total forest areas grew to 208 million hectares at the end of 2013, up from 195 million hectares five years ago. Growing stock per hectare increased by 3.91 cubic meters to 89.79 cubic meters over the past half a decade, according to a report of the five-year survey released on February 25.

Lawsuit Against Japan

Thirty-seven Chinese citizens filed a lawsuit in a Beijing court on February 26 demanding Japanese apologies and compensation for forced labor during World War II.

It is the first time that forced laborers from China or their relatives have lodged such a class-action case in a Chinese court. Observers said the case will increase pressure on Japan to correct its interpretation of its militarist history.

The forced laborers and their relatives want apologies to be carried by mainstream media outlets in both China and Japan, as well as compensation from Mitsubishi Materials and Mitsui Mining and Smelting.

Dozens of wartime compensation suits have been filed by Chinese and South Korean citizens in Japan, but almost all of them have been

rejected by Japanese courts.

Cross-Straits Pacts

Chen Deming, President of the Chinese mainland-based Association for Relations Across the Taiwan Straits (ARATS), and Lin Joinsane, Chairman of Taiwan-based Straits Exchange Foundation (SEF), signed two cross-Straits cooperation agreements on meteorological and earthquake monitoring in Taipei on February 27.endprint

The two sides also discussed preventing double taxation, speeding up consultations on an agreement on trade in goods, setting up a mechanism for resolving trade disputes, as well as establishing cross-Straits offices by both organizations.

Heads of the ARATS and the SEF have held 10 rounds of direct talks since 2008 and signed 21 agreements on cross-Straits cooperation.

Petition Reform

China unveiled a set of reforms to its petition system on February 25, vowing to uphold the rule of law in handling petition cases and expanding petition channels online to better redress public grievances.

Petitioning, also known as the letters and calls system, is the administrative method for hearing public complaints and grievances. People who are not satisfied with government decisions can request reexamination.

According to the guidelines released by the general offices of the Communist Party of China Central Committee and the State Council, petition cases will be diverted to the courts if they involve lawsuits, and government policy and decisionmaking will become increasingly transparent and enlist more public participation.

The guidelines asked officials to accept petitions from the public in a face-to-face manner at intervals ranging from one day in six months for provincial-level officials and one day every week for township officials. Those found to have showed indifference or hampered peoples interests in petition handling, refusing or delaying petitions, will be seriously punished, according to the document.

Commutation Rule

Chinese authorities have vowed to deter judicial corruption in commutation of sentences and probation following a string of convicts who bribed their way out of prisons.

“Terms and procedures on commutation, parole and serving a sentence outside jail for medical reasons should be stringent within the frame of the law,” according to an instructive document released on February 24 by the Commission for Political and Legal Affairs of the Communist Party of China Central Committee.

In a high-profile case, Zhang Hai, former board chairman of Jianlibao Group Co. Ltd., a Chinese beverage giant based in south Chinas Guangdong Province, fabricated evidence in order to have his sentence reduced by five years in a second court trial and had his jail term further reduced by more than four years while he was serving.

Zhang escaped overseas after he was freed. Twenty-four police officers, prison guards and court officials have been investigated for their role in Zhangs lessened sentence and commutation.endprint

Geographic Data

China plans to offer basic geographic information at low costs or even for free in the future so as to boost the development of the geomatics industry, said the national geoinformation authority on February 24.

Geomatics is a relatively new scientific term that refers to the discipline of gathering, storing, processing, and delivering geographic information.

The policy will offer support to companies and promote their valueadded development based on this data, according to the National

Administration of Surveying, Mapping and Geoinformation at a meeting.

The government also plans to invest more in purchasing services from social sectors, take measures to encourage companies to compete internationally, boost growth in consumption of geographic information, and invigorate private investment in the sector, according to the administration.

It is estimated that the annual total output value of Chinas geomatics industry reached 260 billion yuan($42.5 billion) in 2013, up 30 percent from 2012, figures from the Ministry of Land and Resources show.

International Students

About 413,900 Chinese students went abroad to study in 2013, with 353,500 returning, up 3.58 percent and 29.53 percent respectively, the Ministry of Education revealed on February 22.

According to the ministry, in the last 35 years, more than 3 million people have furthered their studies in foreign countries.

With a growing number studying abroad, more overseas students are also coming to China, and the quality of education is improving.

In 2013, 356,500 people from more than 200 countries and regions worldwide attended courses at 746 universities, scientific research institutions and other educational institutes across China.

Drinkable Water

Some 680,000 rural residents in northwest Chinas Xinjiang Uygur Autonomous Region will have access to safe drinking water by the end of this year, according to the regional government.

The central authorities and regional government will invest 500 million yuan ($82 million) in 2014 to make it happen, Xinjiangs Rural Work Office revealed on February 25.

Xinjiang has been striving to provide more residents, especially those living in rural and pastoral areas, access to tap water since 2010.

By the end of 2013, 10.65 million Xinjiang residents in rural and pastoral areas had access to drinking water that meets safety standards, according to the office.endprint

The government said that 86 counties across the region have

drafted plans on building their water quality monitoring network. Sixtyfive county-level laboratories that will carry out water quality tests have been set up.

Needle Standardization

Acupuncture, a traditional

Chinese medical practice, treats patients by manipulating thin needles that are inserted into specific points in the skin, has had the needles used for it internationally standardized.

It is the first standard set by the International Standardization Organization (ISO) for the traditional medicine. Standards have been set for texture, diameter, length, hardness and elasticity of the disposable needle.

It was listed as an intangible cultural heritage of humanity by the UN Educational, Scientific and Cultural Organization in 2010.

End of the Travel Rush

Passengers head to boarding platforms at the Yinchuan Railway Station in northwest Chinas Ningxia Hui Autonomous Region on February 24. That day marked the end of the 40-day Spring Festival travel rush, which saw 3.32 billion trips.

Growth Cools

Growth in home prices in Chinese cities continued to slow in January, adding to signs of a cooling property sector, official data showed on February 24.

The trend emerged after local governments took measures to rein in escalating prices and banks tightened lending to property developers.

Month-on-month average growth in new home prices fell to 0.49 percent in January from 0.51 percent in December 2013, the National Bureau of Statistics said.

Of the 70 cities tracked by the bureau, 62 saw home price rise in January from December, compared with 65 cities in December.

Prices in six cities fell in January compared with the previous month, with prices in two cities remaining unchanged.

Growth in new property prices slowed in January in four major cities—Beijing, Shanghai, as well as Guangzhou and Shenzhen in Guangdong Province, the bureau said.

New home prices in Beijing rose by 18.8 percent compared with the same period last year, the slowest year-onyear growth since August 2013.

In Shanghai, prices increased by 20.9 percent year on year, the slowest since last September.

Property prices rose by 18.9 percent in Guangzhou and by 18.2 percent in Shenzhen from a year earlier, the slowest since last July.endprint

Liu Jianwei, a senior analyst at the bureau, said that two factors contributed to the slowdown in price growth.

First, a slew of provincial capitals have tightened property policies and increased supplies of affordable housing since November 2013, helping to stabilize market expectations.

Second, a tightened credit supply has reduced property turnover, denting prices.

Shen Jianguang, an economist in Hong Kong at Mizuho Securities Asia, said, “We see firm determination by the Chinese Government to curb the property market.

“Measures on the financial market are having an impact on the property market. We should see a turning point this year when home prices in Chinas first-tier cities stop rising.”

Scrapping Ceiling

The Peoples Bank of China, the countrys central bank, on February 26 made yet another stride in liberalizing the interest rate, by scrapping the deposit rate ceiling for foreign currencies in a trial free trade zone in Shanghai.

The policy is a continuation of a major foreign exchange reform in 2000, when the foreign-currency lending rate was liberalized as well as the deposit rate for accounts over$3 million.

Interest rates of foreign currencies are fully liberalized in the zone after the move. Analysts believe

the central bank is close to making similar steps on the home currency, the yuan, as per a guideline issued in 2002 in which the central bank said interest rate liberalization will start with foreign currencies before moving on to the yuan.

The policy applies to both corporate and individual accounts in the Shanghai free trade zone.

In a press conference in Shanghai, the central bank also urged commercial banks to step up risk management efforts to make sure the new policy doesnt cause cross-zone arbitrage, or foreign exchange rate volatility. The bank said it will watch closely how the policy fares and any irregularities will be met with strict consequences.

Financing Support

China will offer customized financial services to new farming practices to push agricultural modernization, the countrys central bank said on February 21.

Financial institutions should give more credit support to innovative farming entities such as family farms and agricultural cooperatives by adjusting loan rates, maturity length and collateral, according to a statement released by the Peoples Bank of China.endprint

The move is designed to promote moderate-scale farming operations and modern agriculture by easing financing difficulties for farmers.

Loans maturity length can be extended up to 10 years if farmers plant fruits, trees and other crops with long growth circles, the statement said.

Diversified and innovative financing choices will be offered to meet different farming business needs, with support focusing on production materials and machinery purchase, land contracts and other infrastructure development.

Qualified family farms may enjoy specially designed approaches in the inter-bank market to sell bonds to investors publicly or privately, the statement added.

Last Decembers Central Agricultural Work Conference and the No.1 central document on agricultural development issued in early January both highlighted the promotion of new farming business models and the need to encourage diversified agriculture practices.

China-Russia Connection

The construction of a cross-border railway bridge linking China and Russia officially began on February 26 in Russias far eastern Jewish Autonomous Oblast.

The 6,735-meter bridge will connect Tongjiang Port in northeast Chinas Heilongjiang Province with the Russian village of Nizhneleninskoye.

The bridge, designed with an annual passage capacity of 21 million tons, is expected to highly improve the transportation conditions of Tongjiang Port and offer a shortcut between China and Russias Jewish Autonomous Oblast, Amur Oblast, Khabarovsk Krai, Magadan Oblast and Sakha (Yakut) Republic.

The construction is forecast to take two and a half years with an estimated total investment of 2.58 billion yuan ($422 million).

The China Railway Engineering Corp., the Heilongjiang Provincial Government, and the Far East & Baikal Region Development Fund Open Joint Stock Company are the projects investors.

Pipeline Opening-up

China has issued a plan to open up its largely monopolized oil and gas pipelines, in a bid to increase the facilities efficiency, energy authority said on February 24.

The National Energy Administration (NEA) said in the plan that it encourages pipeline operators to open their facilities close to each other and to users, including fuel producers, refiners, sellers and other industrial users, when pipelines have extra capacity.

Pipeline operators are supposed to provide services including transport, storage, gasification, liquefaction and compression of crude oil, product oil and natural gas, at a price agreed upon by the two sides.endprint

The plan involves both onshore and offshore pipelines, and the implementation of the plan will be supervised by the NEA.

The construction and operation of Chinas pipelines are largely dominated by major state-owned enterprises. In recent years, there has been a mounting call for the business to be opened up.

China has already begun taking measures to open up the whole oil and gas industry.

Rising Fuel Prices

A gas station employee refuels a car in Changchun, capital of northeast Chinas Jilin Province, on February 26.

The National Development and Reform Commission, Chinas top economic planner, announced on February 26 to raise the per-ton retail price of gasoline by 205 yuan ($33.6) and diesel by 200 yuan ($32.6) starting February 27.

The increase, the first of this year, will see benchmark retail prices of gasoline go up by 0.15 yuan ($0.024) per liter and diesel increase by 0.17 yuan ($0.028) per liter.

Numbers

90 mln kw

Forecasted on-grid wind power generation capacity in China at the end of 2014, up from 77.16 million kw in 2013

2.9%

Hong Kongs economic growth rate in 2013

27 bln yuan

Chinas lottery sales in January, up 9.2 percent year on year

18,311 yuan

Per-capita disposable income of Chinese urban residents in 2013, up 10.9 percent over the period in the year

“Reading books gives you access to the knowledge and culture of the people of different countries. The main problem facing China and Turkey in the field of literature is the lack of translated books.”

Chinese writer and Nobel laureate Mo Yan, calling for more translated literature works at a news briefing in Istanbul on February 22

“The exposure will promote Cambodias tourist sites to the Chinese people. More importantly, it will help to strengthen cultural ties between the two nations.”

Ang Kim Eang, President of Cambodia Association of Travel Agents, commenting on a Chinese crews filming of an episodic drama series titled Love is Brave in Cambodia, which started on February 25

“I wish I knew more about Chinese music. [The pieces that performed by Li were] a great way to learn more about the wonderful and fascinating Chinese culture.”endprint

Nicholas Beale, a business executive, after attending Chinese pianist Li Yundis concert at the Royal Festival Hall in London on February 25 evening, where Li played both classical and Chinese folk music

“More foreign universities have begun to accept that Chinese students with high scores in Chinas national college entrance exam are qualified to sit in world-class classrooms.”

Zhang Feng, marketing manager for projects in Australia and New Zealand for EIC Group, an overseas study consultancy, on February 24

OFFICIAL UNDER INVESTIGATION?

Vice Governor of south Chinas Hainan Province Ji Wenlin is now under investigation for suspected serious disciplinary and legal violations, the discipline watchdog of the Communist Party of China (CPC) said on February 18. Ji, 48, was appointed mayor of Haikou, Hainans capital city, in February 2011 and was later promoted to the vice governor in January 2013. Ji was directly supervised by Guo Yongxiang, former Vice Governor of Sichuan Province, when they both worked for the Ministry of Land and Resources and the CPC Sichuan Provincial Committee in the late 1990s and early 2000s. Guo is also currently under investigation for suspected disciplinary violations.

ORGANIzED CRIME KINGPIN?

Prosecutors in Hubei Province brought nine murders and other charges against 36 members of an alleged organized crime gang led by Liu Han, a former mining magnate, on February 20.

The gang is the largest of its kind to be prosecuted in recent years in China. Liu and his younger brother were charged with 15 crimes, including intentional homicide, injury and illegal detention. Liu, 49, is chairman of the board of the Hanlong Group, the biggest private enterprise in Sichuan Province, as well as the publicly listed Jinlu Group. He owns dozens of subsidiary companies involved in electricity, energy, finance, mining, real estate and securities. Estimates put his worth at tens of billions of yuan.

Chinas Electric Vehicle Dilemma

Caixin February 10

2014 marks the fourth year since China launched its industrialization of electric vehicles. However, even in pilot cities like Beijing and Shanghai, it remains difficult for consumers to buy an electric vehicle.

In order to promote electric vehicles, which are more expensive than traditional fuel-burning vehicles, both the central and local governments have provided subsidies to electric vehicle purchasers. For example, for an E6, an electric car produced by BYD Co. Ltd., which sells for 360,000 yuan ($59,076), the buyer can receive about 60,000 yuan ($9,846) from the Central Government and another 60,000 yuan from the local government. This means that the purchaser can get the E6 for only 240,000 yuan($39,384).endprint

But in practice, local governments are only willing to pay the subsidy to local enterprises. In this case, because BYD is headquartered in Shenzhen of Guangdong Province, to buy an E6, Shenzhen citizens need to pay 240,000 yuan, while Beijing citizens would have to pay 300,000 yuan ($49,230). Due to this subsidy policy, Chinas electric vehicle market is divided into separate and closed territories.

The subsidy policy has not only twisted the market, but also twisted electric vehicle manufacturers. Many enterprises have made big investments into electric vehicles, but so far are seeing little hope of industrialization. Against this backdrop, they have turned to obtain the governments special funds and subsidies as the only goal. They dont even consider whether their vehicles can meet the demands of the market.

Studying Abroad

Chinas Ministry of Education recently published a list of overseas universities on its website. The list contains over 10,000 universities in 44 countries where there is strong demand for admissions by Chinese citizens.

A ministry official said the list aims to help Chinese applicants who plan to study abroad identify a certified overseas university and prevent them from being misled by unqualified educational organizations.

Many Chinese families have a strong wish for their children to study abroad. But most of them know little about overseas universities. In past years, a good number of Chinese families were cheated by unqualified education organizations abroad. These students received an uncertified diploma after their families paid large sums of money for expensive tuition and living expenses abroad.

In China, it is widely believed that overseas education is better than domestic choices. Thus, a person who has studied abroad always has more opportunities to get a good job. For this reason, some people attempt to buy a diploma from abroad. As a result, uncertified educational organizations are rampant in the educational market and such fraud cases continue. To some extent, the university list published by the education ministry is a guideline for Chinese citizens to carefully choose a qualified university abroad.

Transparency for Government Departments

Beijing Youth Daily February 25

The Institute of Law under the Chinese Academy of Social Sciences (CASS) pub- lished The Index Report of Governmental Transparency on February 25. The report issues a ranking list for major governmental departments. The Ministry of Education ranks at the top and the restructured National Railway Administration comes at the bottom of the list.endprint

The transparency study was carried out in 2013 covering 55 departments of the State Council, 31 provincial-level governments and 49 big city authorities. In the list, those governmental departments ranking high are close to peoples livelihood or social concerns. They draw much attention from the public.

The Regulation of Government Information Disclosure became effective as early as in 2008 in China. In recent years, Chinese government departments have made progress in publicizing information. But many departments have so far failed to meet the expectation of the public. All parties of the society should make persistent efforts to supervise and urge government departments to improve their transparency. In a new round of deepening reform, to make government more transparent has become an important objective for the Central Government.

Land Trusts in Rural China

Caijing Magazine February 17

Amid Chinas urbanization and agricultural modernization, the need for transferring of contractual rights to land is increasing in the rural areas. Against this backdrop, land trusts have emerged.

In rural China, rights to the use and ownership of land are separate. Land is collectively owned and individual farmers only have the right to use a patch of land through holding its contract. This separation leads to a lack of the land dividends due to individual farmers. Because the contractual rights to land cannot be mortgaged at the bank, it is difficult for farmers to turn their property into cash.

Land trusts provide a solution to this situation. It ensures that farmers get their due dividends through their share in the trust plan. The trust company executes the management rights of the farmers land affairs and manages the land through the proper means.

Currently, land trusts have no legal barriers except from market and natural risks. For instance, a drop in wheat prices or the occurrence of natural disasters can lead to problems. In addition, there is no clear regulation on how the farmers rights in land trusts should change after the urbanization of rural areas. All these questions cannot be solved by the land trust system itself, but require the efforts of the government in formulating laws and regulations.endprint