China

Shanghai Daily reports: IN an underground mall just a stone's throw from the Chinese mainland's border with Macau, a row of 30 small shops with identical gold plaques do a brisk, though shadowy trade with mainland visitors, many of them bound for the gambling hub. "Good rates. Better than the banks," shout salespeople jostling to usher clients into shops where thick wads of notes change hands. Licensed as liquor and dry goods stores with stacked shelves of rice wine and cigarettes, many conduct their real business in back rooms - as underground bankers and remittance agents. "It's very simple," said one agent surnamed Choi. "You give me renminbi here. Then we deliver Hong Kong dollars to you in Macau. We can move tens of millions each day," he said. As China's economy and financial markets mature and gain in sophistication, so too does a vast underground banking industry offering swift, cheap and low risk cross-border fund transfers. Much of that activity is conducted openly on the streets of south China's Guangdong Province, where businesses and individuals depend on underground networks to get around strict currency controls - both for legitimate commercial purposes and to safeguard assets beyond the reach of authorities. Beijing is finding it increasingly difficult to stem the tide of speculative and illegal cash. In the decade since China began cracking down on money laundering, the government has amended criminal laws and strengthened commercial banking rules, but loosening restrictions on capital transfers has made it easier for hot money to be channeled across the border. Read more: http://www.shanghaidaily.com/nsp/Business/2013/05/22/Underground%2Bbanking%2Bindustry%2Bflourishing/

[This piece appeared at Asia Times Online on May 21, 2013. It can be reposted if ATOl is credited and a link provided.] The big story in Asia affairs today is a little trip that was supposed to stay a secret: the dispatch of Isao Iijima, adviser to Japan's Prime Minister Shinzo Abe, to meet with senior officials in North Korea, thereby breaking the united US/South Korean/Japanese front in negotiations with Pyongyang. It is the first instance of an overt divergence between Japanese and US diplomatic and security strategies, something that has been implicit in Japan's sometimes-inflammatory brand of nationalism under Prime Minister Shinzo Abe - and Abe's determination to move Japan beyond its traditional role of obedient US ally to independent regional force. The United States has been quietly disapproving of Japan's China strategy - witness Kurt Campbell's statement that the US advised Japan against nationalizing the Senkaku islands - and provocative nationalist hi-jinks on issues like the Yasukuni Shrine, but excused them as politically motivated exercises in domestic base-pandering. However, the North Korean trip has revealed the cloven hoof beneath the robe, as far as Japan's independent aspirations in Asia are concerned. Japan Times made it clear that the US was not consulted in advance about the trip; US special representative for North Korea Glyn Davies was only briefed after the visit: Japan briefed the United States on Thursday about the surprise visit to North Korea by an adviser to Prime Minister Shinzo Abe. After meeting with his Japanese counterpart in Tokyo, Glyn Davies, US. special representative for North Korea policy, said he hopes to gain more "insights" into Isao Iijima's unannounced trip in the coming days. ... The trip, apparently an effort to resolve the issue over North Korea's abductions of Japanese nationals in the 1970s and 1980s, has raised concerns that Japan could be seen as acting alone, while the United States and South Korea continue to pressure Pyongyang over its nuclear arms and missile threats. "I have begun the process of learning a bit more about [Iijima's trip]," Davies told reporters after meeting with Shinsuke Sugiyama, director general of the Foreign Ministry's Asian and Oceanian Affairs Bureau. "I think we have some days to wait for all of us before we know there are any results from this mission ... we obviously will look forward to hearing from the government of Japan more details about this in [the] coming days," he said. While South Korea has criticized the Japanese move as "not helpful," given the importance of coordinating a united front by Washington, Seoul and Tokyo against Pyongyang, Davies said, "I'm not going to address it in that way." [1]The Christian Science Monitor calls it from the US side: "Japan's 'secret' trip to North Korea disrupts united stance against Pyongyang." [2] South Korea was less circumspect: Seoul criticized Tokyo Thursday for dispatching an envoy to North Korea voicing concerns that the visit could undermine efforts to forge a coordinated approach toward Pyongyang. Without prior notice to South Korea, Isao Iijima, an adviser to Japanese Prime Minister Shinzo Abe, arrived in Pyongyang spawning speculation that Japan might be trying to mend broken fences with the North, while South Korea, the US, recently even China, are making efforts to punish North Korea for conducting its third nuclear test in February by imposing sanctions. "It is important to maintain close coordination, among South Korea, the US and Japan, toward North Korea," said [South Korean] Foreign Ministry spokesman Cho Tai-young in a media briefing. "In that sense, we think that the visit by Iijima to North Korea is unhelpful." [3]According to Japanese sources, public revelation of the trip was something of a diplomatic fiasco maliciously inflicted by North Korea: Japan speechless on PR chief's 'secret' N.K. tripBlown mission reveals bid to sidest

In 2011, Guo Meimei scandalized the name of the Red Cross Society of China at a time when many were already suspicious about the humanitarian NGO’s management of funds. After the devastating 6.6Mw earthquake hit Sichuan province last month, lingering distrust in and anger towards the Red Cross came to light. When a discrepancy between the Red Cross’ recent donation figures and those on file at the Ministry of Civil Affairs was revealed by Southern Metropolis Daily last week, public outrage towards the Red Cross flared once again. The Global Times reports: The public have questioned contradictory figures released for Lushan earthquake donations by the Red Cross Society of China (RCSC) and the Ministry of Civil Affairs. The ministry released figures for the amount of donations which were lower than those of the Red Cross. [...]The ministry announced Friday that as of May 10, the RCSC reported cash and material donations of 134.51 million yuan ($21.9 million), and the Red Cross Foundation, a separate entity administered by RCSC had received 24.3 million yuan. These figures contradicted the one posted on the RCSC’s Sina Weibo account on May 10, which said 159.27 million yuan had been collected. The RCSC Saturday clarified the discrepancy by saying that the ministry’s release did not include the donations received by the foundation, while the RCSC’s figures did. [Source] The South China Morning Post reports that, despite a Ministry of Civil Affairs statement explaining the inconsistency, this may have further damaged the already tarnished public image of the Red Cross Society of China: But the damage may already be done. “You can believe what they say or not, I certainly don’t,” a commenter posted online. “You can donate or not, I certainly won’t.” The questions raised had hit a nerve as the charity is still reeling from a damaged reputation after the Guo Meimei scandal in 2011, in which a young woman who claimed to work for the Red Cross flaunted her extraordinary wealth. Ever since, the Chinese Red Cross has struggled to collect donations. The ministry’s data shows that other charities have managed to collect several times as much as the country’s flagship charity. [Source] Also see one Chinese web-user’s Red Cross-inspired poem, translated by CDT. © josh rudolph for China Digital Times (CDT), 2013. | Permalink | No comment | Add to del.icio.us Post tags: 2013 Sichuan earthquake, charity, disaster relief, donations, guo meimei, NGOs, Red Cross, scandals Download Tools to Circumvent the Great Firewall

Magnus Ahlqvist, president for Sony Mobile Communications Greater China region, has reportedly resigned and the company is currently looking for his replacement. According to reports in Chinese local media, before finding a replacement, the role is temporarily manned by Zheng Shuren, vice president and head of the marketing unit. Ahlqvist, 39, started leading the Chinese [...]

Cyril Payen, a correspondent for France 24, got rare access to Tibet with a seven-day visa. He interviews activists and shows footage of the severe security presence in Lhasa, as well as the construction around the sacred Jokhang Temple. The report also includes an interview with Human Rights Watch’s Nicholas Bequelin: Tibet has been off-limits to journalists since the Chinese government brutally suppressed riots in the region five years ago. France 24′s regional correspondent Cyril Payen managed to get a seven-day visa to enter the region. What he saw lends weight to the complaints of the Dalai Lama and human rights organisations, who say Tibetan culture is being erased. [Source] © Sophie Beach for China Digital Times (CDT), 2013. | Permalink | No comment | Add to del.icio.us Post tags: lhasa, Tibet, Tibet development, tibet politics, Tibetan culture Download Tools to Circumvent the Great Firewall

On Saturday and after much public outcry, food safety authorities in the southern province of Guangzhou released the names of rice producers whose products were found to contain cadmium, a toxic heavy metal. The Global Times reports: The move by the Guangzhou Food and Drug Administration came after public demand for the information. Of 18 batches of rice tested during random quarterly checks, eight were found to contain excessive amounts of the heavy metal. The metal is known as a strong carcinogen, and can cause pathological changes in the kidneys and other organs. The names of the producers of the eight substandard batches were released late Saturday. Six are in Hunan Province, while two others are in Dongguan. However, an administration press officer told China National Radio on Saturday that the range of tested products was narrow, so the results do not represent the overall situation in Guangzhou. [Source] Initially, food safety authorities withheld the brand names and locations where the tainted rice was produced. After a barrage of netizen pressure, that information was made public, along with information as to what establishments were found to have the toxic product. From the South China Morning Post: These [restaurants and cafeterias] included the Guangzhou Taiyang Seafood Restaurant in Liwan district, the Guangdong University of Foreign Studies, the Yannanfei Restaurant in Haizhu district and the Zhongkai University of Agriculture and Engineering. [...]The incident, the latest in a seemingly endless series of food scandals, prompted a nationwide outcry over food safety and the perceived lack of transparency of the government’s handling of the issue on Friday. [...]More than 100,000 internet users posted comments on major internet portals such as Sina and Soho on Friday urging the government to name the brands involved. [Source] In a blogpost deeming “cadmium rice” China’s latest food scandal, the New York Times’ Didi Kirsten Tatlow reports further on netizen reactions to initial state-media reports on this recent cadmium scare, and on the health effects of cadmium exposure: Xinhua offered this practical, if short-term, advice, as did People’s Daily, the Communist Party mouthpiece: “Experts recommend that people should not consume food and drink from one particular region for long, instead they should diversify to lower the risk.” That prompted some hilarity online, with netizens marveling that the party newspaper would offer such advice. “That’ll ensure that everyone gets their share of cadmium,” remarked someone called Ning Fushen, in a post on Sina Weibo. [...]Cadmium, a known carcinogen, builds up in the body and damages the kidneys and lungs and can cause bone disease. Ingestion via food is the main source for nonsmokers, while smokers’ intake may be twice that of nonsmokers, according to the Web site www.cadmium.org. [Source] Amid this food safety probe and the bruised confidence of Chinese consumers, Bloomberg reports that sales of Hunan-produced rice are plummeting as many increasingly look to imports: Rice traders in Hunan reported sales dropping by more than half from a year ago since media reports of the pollutant in began appearing, Cngrain.com said on its website. The researcher, which is owned by China Grain Reserves Corp., a custodian of government food reserves, didn’t provide figures for the drop in sales. The Nanfang Daily first reported in February that rice from Hunan sold in southern Guangdong province contained excessive levels of toxic metal and the Guangzhou Food and Drug Administration reignited concerns with reports on its website last week. It is a blow to farmers in the region because sales of indica rice, a long-grain variety consumed in southern China and used for milling and brewing, were already being hurt by low-cost imports, Zhang Zhixian, analyst of Cngrain.com, said by phone from Zhengzhou in central China. Consumers in some areas may become more willin

Rescuers at work at a cave-in site at the gates of an industrial park in the southern Chinese city of Shenzhen yesterday. Five people died when a sinkhole about 7 meters wide opened up on Monday evening when many factory workers would have been changing shifts. It was unclear how many people had fallen into the hole, but a search is continuing. Sinkholes in China are often blamed on construction works and the country's rapid pace of development. Surveillance cameras in March captured images of a security guard being swallowed by a sinkhole, also in Shenzhen.

Chinese Premier Li Keqiang has told Indian business leaders that developing stronger economic ties between their two nations would have huge benefits for both sides.Li was speaking a day after holding meetings with Indian Prime Minister Manmohan Singh during which the two leaders stressed the aim of forging deeper cooperation.Li told the Federation of Indian Chambers of Commerce and Industry yesterday that India and China were both enormous markets with incredible potential for growth."If every one of our combined 2.5 billion population would buy a new mobile phone, it would blow up the order lists of IT manufacturers and operators in the world," Li said.He said the two nations' strengths complemented each other, with India having the edge in information technology and software, while China was undergoing a rapid expansion in manufacturing and textiles.China can also help India's drive to improve its infrastructure, he said."At present, we both face the heavy tasks of developing the economy, improving people's lives and reinvigorating the country. In seeking great neighborly relations and common development, we will not just benefit our own peoples but also create new opportunities for other Asian countries," he said.Li and Singh had expressed hopes they could increase their trade from US$61.5 billion last year to US$100 billion by 2015. But the current trade is heavily skewed in China's favor, and Li said he was willing to allow Indian products greater access to Chinese markets."I'm confident that we have the ability to mitigate the trade imbalance between our two countries. China never has the intention of pursuing a trade surplus," he said.Li said China understands "balanced trade is crucial to good ties between the world's two most populous countries" and that "a peaceful and stable South Asia is consistent with China's development interests.""Only a dynamic trade balance is a sustainable trade relationship," he said."We will support Chinese enterprises to increase investments in India and help Indian products have access to Chinese markets," he said, also promising to help raise prosperity in the Asian region.India is seeking Chinese participation in its special manufacturing zones or SEZs being set up under its National Manufacturing Policy which aims to sharply boost manufacturing to provide jobs for its growing army of young people.Also yesterday, both countries signed deals to raise Indian access to China's drugs market and promote trade in fish and meat products, billed by New Delhi as helping address China's food security.

THREE New York University researchers from China divulged results from a US-funded study to Chinese competitors in exchange for tuition, rent and other expenses, according to US federal prosecutors.Zhu Yudong, a US-educated NYU professor, and Yang Xing, a lab engineer, were released on bail on Monday after appearing in court in Manhattan to face commercial bribery and other charges. The third defendant, postdoctoral fellow Li Ye, is at large.A criminal complaint alleges the three provided non-public information about magnetic resonance imaging to a medical company in China, United Imaging Healthcare, and a research institute supported by the Chinese government.Authorities described 44-year-old Zhu as "an accomplished researcher and innovator in the field of MRI technology" who was hired as associate professor of radiology at NYU Langone Medical Center in 2008. In 2010, he received a multimillion-dollar grant from the National Institutes of Health for his MRI research. He later recruited Yang and Li to work for him.The complaint accuses Zhu of arranging for United Imaging to pay for Yang and Li's expenses. It says all three failed to disclose they were still affiliated with both the company and the Shenzen Institute of Advanced Technology, a branch of the Chinese Academy of Sciences. The men face up to five years in prison if convicted of the bribery count. Zhu faces up to 20 years on a separate charge of falsifying records in connection with his federal grant.Earlier this year, NYU launched an internal review that uncovered the conflict of interest, authorities said. When confronted by NYU officials, Li told them that he was paid thousands of dollars this year by the Chinese institute for work on its MRI project and that Zhu "performs the same work on research for that project as he does for the university," the complaint says.

CHINESE President Xi Jinping and US President Barack Obama will hold their first meeting since Xi became president in March when they sit down for a June 7-8 summit in Rancho Mirage, California."President Obama and President Xi will hold in-depth discussions on a wide range of bilateral, regional and global issues," the White House said in a statement."They will review progress and challenges in US-China relations over the past four years and discuss ways to enhance cooperation, while constructively managing our differences, in the years ahead," it said.Chinese foreign ministry spokesman Hong Lei said that China was willing to work with the United States to strengthen dialogue and cooperation in relations, which he said were "at a new historical period.""Of course, some differences exist between China and the United States, which require proper and active management by both sides," Hong said. "This year, Sino-US relations have got off to a good start and are facing an important opportunity for development."Hong said the two leaders would have "comprehensive and in-depth discussions" on a range of issues.The leaders will meet at Sunnylands, an 80-hectare estate on Bob Hope Drive in Rancho Mirage, California. Sunnylands is the former estate of the late philanthropist Walter Annenberg, who frequently hosted President Ronald Reagan there.The fact that they will devote two days to the talks shows an intent by the two leaders to build a closer relationship. White House National Security Adviser Tom Donilon will travel to Beijing to meet Chinese officials on May 26-28 to prepare for the Xi visit.As part of his trip to the Americas, Xi will also make state visits to Mexico, Trinidad and Tobago and Costa Rica, the foreign ministry said.