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Blogs » Politics » Pictures: Environmentalists screw up ginseng promotional event in Beijing |
- Pictures: Environmentalists screw up ginseng promotional event in Beijing
- Thoughts on Getting Arrested in China
- Photo: Dali Blue, by Michael Steverson
- In Brief: Speaking of Arrogance…
- Gu Kailai receives suspended death sentence, Netizens show discontent
- Netizen Voices: Sign Brother Speaks Truth
- Legendary Female Cyber Cop: What Do New ‘Model Workers’ Tell Us About Chinese Cyber Policy?
- Gu Kailai Found Guilty of Heywood Killing
- Fate of ousted Chinese politician hangs in balance after wife’s suspended death sentence
- Diaoyu impasse calls for new ideas
- Bogu Kailai sentenced to suspended death for intentional homicide
- Wang Lijun Awaits Trial, Fate
- The Daily Twit – 8/20/12: There Once Was a Woman Named Gu
- Pictures: Beauty pageant for cows invites bikini models
- Internet Addiction: I Guess There’s No Pill for That Yet
- Video: White man raises public anger in Zhengzhou for slapping Chinese woman
- Wal-Mart, Yihaodian, and the Mystery of the VIE
- How I Learned to Stop Worrying and Love Joint Ventures
- PREVIEWING THE LEGISLATIVE COUNCIL ELECTION: Designs and Strategies
| Pictures: Environmentalists screw up ginseng promotional event in Beijing Posted: 20 Aug 2012 02:28 PM PDT August 19, several environmental activists, including a naked woman wearing only a pair of briefs and a mask, suddenly broke onto a stage where a Jilin province-based ginseng company was holding a promotional activity, at the Chaoyang Park in Beijing. They carried cardbards, shouted slogans and tore off the company's banners, to protest against the ginseng growing which the activists said destorys the forest's ecosystem. The protesters were finally intercepted by security guards and sent out of the park. But apperantly the topless woman had become the center of the all cameras at the spot. |
| Thoughts on Getting Arrested in China Posted: 20 Aug 2012 06:34 PM PDT Yesterday I recounted the tale of how my American friend and I got arrested on Beijing's Jingmi highway for driving a stolen vehicle (our rental car). It was all a wash in the end, and they offered neither details nor apology when they handed us back the car key and said we could be on our merry way. For lack of better formatting ideas, I've come up with a list of theories as to what went down while we were riding around an armored van and sitting in the soft-core interrogation room. I'll start with the most likely possibility: 1. It was an honest mistake. Sean heard the police officer say that the highway security camera had alerted them that we were driving a stolen car. This could make sense considering how quickly the cops descended on us, in tandem. I imagine the cameras are programmed to read license plate numbers. But who knows how accurate that is? If that were the case, then the cop should probably not have announced that we were driving a stolen car. I am glad he did for our sake — so we knew what was going on — but that seemed a bit showy at the time. It also turned out to be (apparently) wrong, and it would have behooved him to treat the case with more caution. 2. Racist theory: They saw we were foreigners (Sean, with a dark beard, is pretty recognizable from afar as non-Chinese) and assumed we might not have a license or otherwise be causing some form of disturbance. I was certain this is why we were being pulled over in the first place, up until he announced that the car had been stolen. With the official campaign against "bad" foreigners having recently struck Beijing and Shanghai, it is possible that they saw us (in particular Sean, as a male) as potential trouble-makers. How many foreigners have a Chinese driver's license anyway? If this were the case, then the officer made up the car-theft story on the spot. Remember, he was looking at the documents when he announced that the car was stolen: Sean's passport, license, registration, and the rental agreement. Everything checked out. He realized this, panicked, and announced that the car was hot goods. We sat around the police station for about two hours for good measure before they wrote down our names and then gave us back the car key. Thank you for your cooperation, we'll take care of things from here. 3. They were looking for a bribe from either us or the car rental place. It is possible that the car rental place paid them off in a "harmonious settlement," which in China may be considered a successful implementation of the law. While the overall experience was far from harrowing, and the officers were generally cordial, the leaks in the boat were also apparent. First, they offered no explanation or apology. This means that they were concerned about face, because to admit they had made a mistake (i.e. the car was not stolen) would have been embarrassing for them. If they had pulled some trick and accepted a settlement from the car rental company, then they would still lie and say that they had made a mistake to cover-up. Either way, an explanation and apology was not in the cards. Second, there was a loose semblance of protocol, but it was clear that they were in total control. Our American citizenship was the best thing we had going for us, and Sean made sure to text a friend at the embassy while we were in the van. A sign behind the counter at the police station read, "For the sake of the people, we serve." That was so tragicomically far from what I was feeling that I actually laughed a little. I would have been happy to know that they were enforcing laws, if that could have been confirmed. But as a person (albeit a foreigner) who was taken in, I was basically a prisoner from the start. We were surrounded, loaded into a van, and escorted into a back room at the police station. Forget Miranda Rights — no one told us anything beyond "this is a stolen car." And finally, they may have treated us differently had we looked different. If the Racist Theory is correct, they may not have pulled us over in the first place (had we looked Asian). But if they really did pull us over thinking it was a stolen car, then how would they have treated us if we were Chinese? African? We at least look "Western" i.e. white, and we were clearly on our way back from a lovely day of sightseeing, wearing laymen's clothes, hiking bags, and carrying cameras. Perhaps they treated us with a certain amount of deference because of this image. They did not rough-house us, insult us, or really do anything too rude. The conclusion is that it was an incident run by behavioral protocol rather than legal regulations. There were no rights for the captured. Everything ended up OK for us because we didn't ask too many questions. We just did what we were told. Something wrong did happen though, and we'll never know what it was. The whole thing may not even be recorded in the system, since they took down our information by hand. The sign taped to the computers that said "Please check to confirm that the record matches what you have said" implied that there was a computerized system of recording interrogation. I have misgivings about whether or not the whole ordeal even made it into that system. Bottom Line: Mistakes are not made. Face must be maintained. All suspects are temporary prisoners, and the law enforcement must be like a solemn, omniscient father taking care of naughty children. Filed under: Uncategorized   |
| Photo: Dali Blue, by Michael Steverson Posted: 20 Aug 2012 05:00 PM PDT  Dali Blue © Samuel Wade for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us  |
| In Brief: Speaking of Arrogance… Posted: 19 Aug 2012 05:16 PM PDT I haven't the time or, at the moment, the patience to go into this in depth, but let's look for a second at the trailer for the upcoming documentary Death By China and let its ridiculousness wash over you like a wave: Now, with the huge caveat that I haven't seen this film so it could just be a case of terrible (or overly sensationalized) marketing, this looks insane. What's more, it projects that same I'm-the-center-of-the-world-arrogant-pride-thinly-disguised-as-victimhood that I recently took some Chinese media to task for. This is probably not surprising — for all their differences, I think America and China are similar in many ways, one of those being a deep-seated belief that they are better than everyone else. But come on, guys. Everything about this is absurd and hypocritical. For example, the Gordon Chang money quote here — "China is the only major nation on earth preparing to kill Americans" — is both extreme scaremongering and ludicrous arrogance. Yes, China is boosting its military capabilities across the board. Is there any evidence this is with the goal of killing Americans? No. China's military will protect its strategic interests, and while that could include killing Americans who are in the way, Chang's phrasing makes it sound like China is raising an army that's going to parachute into the US, Red Dawn-style, and shoot your grandmother. That isn't going to happen, and it doesn't even make any goddamn sense. Why would China want to destroy one of its major trade partners? Moreover, why would China want to destroy a country that owes it so much money? It wouldn't. China doesn't want to kill Americans, it just wants them to shut up about the South China Sea and stop selling weapons to Taiwan. Since neither of those things are likely to happen, some eventual violence is certainly possible, but let's not pretend China is planning Pearl Harbor here. The discussion of jobs in the trailer is even more ludicrous because it leaves out a gigantic, hugely important facet of that issue: the companies shipping these jobs overseas are American. It's true some Chinese manufacturers are beating with American workers in part because they're willing to abuse their own workers (although the fact that many of these workers are, by American standards, willing to abuse themselves is also a relevant point). But if China is taking American jobs via workers rights abuses, what does that say about the American companies that are willingly choosing to ship jobs there anyway? It is not my intent to defend the labor practices of Chinese manufacturers here, but that strikes me as a Chinese problem. American companies shipping jobs overseas to take advantage of abuses is a problem that could be resolved at home by holding companies to a higher (read: any) moral standard. But, of course, it's easier just to blame all that on the Chinese. This argument also ignores the fact that as far as cheap labor is concerned, if China isn't willing to offer it, some other country will be (and is). Abuse of workers is one problem, but another is that Americans are willing to see hundreds of thousands of jobs shipped overseas if it means they can save $20 on an iPhone. (Note that I'm not even mentioning the absurd, over-the-top animations or the part where Americans, with a straight face, appear to be criticizing someone else about carbon emissions.) Anyway, I don't really have the energy to go into this further, and it would be unfair of me to do a proper shredding before I see the actual movie, anyway. But if this trailer is any indication, Death By China looks like it's going to make the Red Dawn remake look like a tasteful, nuanced look at US-Asia relations. VN:F [1.9.10_1130] Rating: 0.0/10 (0 votes cast) Tags: Death by China, Documentary, Film  |
| Gu Kailai receives suspended death sentence, Netizens show discontent Posted: 20 Aug 2012 12:57 AM PDT Gu Kailai, the wife of disgraced politician Bo Xilai, was given a suspended death sentence on Monday for the murder of a British businessman Neil Heywood. Zhang Xiaojun, an aide to the Bo family, was sentenced to nine years in jail for abetting the murder, and the other four policemen who helped cover up the crime received jail sentences from five to 11 years too. The Hefei Intermediate People's Court in Hefei city, Anhui province, concluded that Gu and Heywood had a business dispute, and Heywood used threatening words aganist Gu's son, Bo Guagua, via emails. Gu then decided to kill the Briton as she belived her son's safety had been threatened. On Nov. 13, 2011, Gu invited Heywood to Chongqing, the southwest municiplity where her husband Bo was then Communist Party chief, and then poisoned him with cyanide after getting him drunk in a hotel. Gu's suspended sentence will be likely to be commuted to life in prison after two years, and her punishment could be reduced for good behavior. As soon as the verdict was revealed, Sina Weibo has seen a growing discontent among netizens, as many believed Gu should be executed. But for the Communist Party, if a severe penalty was imposed, it would make Gu look like a scapegoat for her husband's misdeeds to the public. Bo was not mentioned in Gu's trail at all, leaving the room for talk over his fate as China's leadership had yet to make a final decision on how to tackle him, according to a source close to Bo family. Bo Xilai's ambition to get into the central Politburo Standing Committee of the Party at a once-in-a-decade leadership transition later this year had made his powerful enemies to bring him down. He was sacked as Chongqing boss in March for "unspecified" violations and his wife was publicly accused of the murder in April. Bo's downfall represented the biggest political rift in China's leadership for two decades. And Gu's sentence showed the central Party's decision to start cleaning the political scandal ahead of their major leadership transition this fall. |
| Netizen Voices: Sign Brother Speaks Truth Posted: 20 Aug 2012 08:27 AM PDT "Sign Brother" (举牌哥) was seen at the Xinjiekou stop in the Nanjing subway last week. His makeshift sandwich board reads:
Surprisingly, the text of the Weibo pictured above ("A handsome guy suddenly appeared at Xinjiekou in Nanjing, really handsome" 南京新街口惊现一帅哥，真帅) still returns search results. The username has been cut off, but this one post alone received 6062 reposts and 1452 comments. CDT Chinese has collected words of praise and caution for their brother-in-arms:
Via CDT Chinese. © Anne.Henochowicz for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us  |
| Legendary Female Cyber Cop: What Do New ‘Model Workers’ Tell Us About Chinese Cyber Policy? Posted: 20 Aug 2012 07:16 AM PDT  There is a long tradition of the Chinese Communist Party acknowledging and honoring "model workers," selfless citizens who contribute to the building of modern China. While in the early years after the revolution these individuals were usually peasants or ordinary workers like Zhang Binggui who worked at a candy counter and could "count out prices and change in his head," the category has expanded to encompass almost all professions including the astronaut Yang Liwei and NBA-great Yao Ming. The most famous model of serving the people was Lei Feng, the young soldier who became the subject of a massive propaganda campaign in 1963, a year after his death. As China Daily put it, Lei Feng "is hailed as a cultural icon, symbolizing selflessness, modesty, and dedication. His name creeps into people's hearts, daily conversation, music, even movies." These model worker campaigns serve a number of purposes: to mobilize and motivate citizens; identify qualities and characteristics that would be valued in the new China; and signal political priorities and concerns. Campaigns to "Learn from Comrade Lei Feng" have been rolled out numerous times over the last six years (see this timeline at Danwei) in efforts to divert from corruption scandals and other bad news as well as address the very real growing absence of civic mindedness and public-spiritedness. The Chinese press has recently introduced two new model workers active in cybersecurity: Li Congna (李聪娜) of the PLA, and the "Legendary Female Cyber Cop," Gao Yuan (高媛) of the Beijing Public Security Bureau's Cybersecurity Defense Division. The stories of these two women repeat many of the same tropes from campaigns in the 1950s and 1960s, especially those focused on what historian Tina Mai Chen calls "female kind first"—the first woman tractor driver, welder, or train conductor. The heroes of these stories must overcome both physical and mental hardships. Sun Xiaoju, the first female train conductor, faced temperatures of minus twenty degrees Celsius but refused to let the frostbite affect her. After working on one project for a month, Li Congna lost 7.5 kg, and a marathon coding session left her unconsciousness for three days (physical hardship is missing from Gao's story; her greatest hardship seems to be someone stole her identity on the instant messaging service QQ). As with Tang Sumei, an ordinary "peasant girl" who knew nothing about the machinery when she first entered a Beijing electric substation in 1952 but was a manager by 1953, hard study and individual resolve save the day. Confronted by source code she couldn't read or understand, Li stayed late in her office "memorizing related functions, studying protocol mechanisms, researching both foreign and domestic computer program models. In one month, she had written 300,000 lines of code, more than 100 types of functions, more than 60 protocol mechanisms, and more than 20 design algorithms." What do these model workers tell us about Chinese cyber policy? While news of U.S. military exercises and the supposed interest of the Pentagon in Li's cyberwarfare capabilities is the lead into the story, two main points quickly replace it. First is the need for constant innovation. Li keeps confronting problems that require a new, self-developed technological solution. In her office, she has posted the slogan: "Yesterday's technology cannot win tomorrow's wars." Facing a difficult problem, the advice of a teacher rings in Li's ear: "the world of information networks is a game of new knowledge and new technologies." Second, there is an acknowledgement that traditional top-down, hierarchical organizational and training procedures are not up to the task of network warfare. Several times we are told that Li is not afraid to let others take the lead and in particular she lets "young daring people" assume responsibility as group leaders. Gao Yuan is a model of how the Chinese government can successfully use Weibo and other social media to bolster public approval by providing useful services and eschewing overt propaganda. Her story is filled with how helpful she is to Chinese netizens—Gao has "tweeted over 1,500 times; spread knowledge about staying vigilant over 700 times; has answered netizens' questions close to 2,000 times; and has provided technological support over 400 times." The political content of Gao's work appears to be low, and as a result she seems to be highly respected. She currently has 1.52 million followers on Weibo, and one follower has started a cartoon series about her. In contrast, a number of commenters were highly critical of the Li Congna story, with several mocking the idea of Li's falling unconscious. Gender matters to these stories, as information security is a heavily male profession (see for example, the recent discussions about sexism and sexual harassment at DEF CON, the annual hacker conference held in Las Vegas). The descriptions of both Li and Gao as beautiful strike one as unnecessary, if not slightly retrograde; but as Chen notes about the model tractor workers of the past, these stories send an important message about the ability of women to master new technologies. The Li story goes even further noting "female service members will inevitably assume more responsibility, and will make greater achievements." As a result, the PLA will have to adjust: "The armed forces at all levels should provide them with a wide arena." It is easy to dismiss these stories as out-of-date and heavy-handed. But, assuming the press doesn't turn to new model workers, Li's and Gao's future adventures are likely to provide further insights into some real issues in Chinese cyber policy. |
| Gu Kailai Found Guilty of Heywood Killing Posted: 20 Aug 2012 06:01 AM PDT Gu Kailai, wife of deposed Chongqing Party chief Bo Xilai, and family aide Zhang Xiaojun were declared guilty on Monday of the intentional homicide of British businessman Neil Heywood. Zhang was sentenced to nine years for his lesser role in the killing, while Gu received a suspended death sentence which, like that of former business tycoon Wu Ying, will likely be commuted to life imprisonment. From Andrew Jacobs at The New York Times:
The British embassy issued a statement welcoming the investigation and trial, at which two of its diplomats were present as observers, and restated its opposition to the execution of Heywood's killers. Donald Clarke at China Law Prof Blog explained the probable reality of Gu's punishment, which could ultimately be reduced to as little as nine years in prison.
While state media have presented Gu's trial as proof that all are equal before the law, the possibility of early parole has cultivated the opposite impression. Josh Chin surveyed some online reactions at The Wall Street Journal:
According to WSJ Chinese editor Li Yuan, however, the verdict's moment in the Weibo spotlight quickly passed:
(Myanmar announced the abolition of direct censorship on Monday, though as Reuters' Aung Hla Tun reports, other restrictions on press freedom will remain.) A number of legal scholars and other observers have expressed scepticism about the trial based on second-hand accounts of the evidence presented. On Monday, a new inconsistency apparently emerged between the official version of events and the unheard testimony of Gu's son, as reported by a family friend. From William Wan at The Washington Post:
Those suspicious that the woman on trial was not Gu Kailai at all received unexpected support on Sunday. According to The Financial Times, "two security experts familiar with facial recognition software said the person shown in state television footage of the courtroom was not Ms Gu." Meanwhile, still more outlandish rumours surfaced on Boxun—"which often makes claims difficult to prove", as Want China Times delicately put it—that a former rival of Gu's had been murdered, plastinated and put on display as part of the famous Body Worlds exhibition. (See a similar rumour debunked by Roland Soong at EastSouthWestNorth, via Bill Bishop). With Gu's case, for now, apparently closed, The Wall Street Journal's Jeremy Page looked ahead to future developments in the Bo Xilai saga:
© Samuel Wade for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us  |
| Fate of ousted Chinese politician hangs in balance after wife’s suspended death sentence Posted: 20 Aug 2012 05:13 AM PDT Gu Kailai will either be executed or spend a very long time in prison. The question that remains now is what will happen to her husband Bo Xilai, a man who just six months ago seemed destined to join the elite club that rules China. Ms. Gu was convicted Sunday of murdering a British businessman and given a death sentence, the implementation of which has been suspended for two years. Legal experts say her punishment is likely to be commuted then to life in prison. In footage shown on state-run CCTV, the 53-year-old Ms. Gu told the court she accepted the verdict. "The sentence is just and shows immense respect for the law, reality and life," she said in a measured voice, wearing a black pantsuit over a white blouse. The court was told that Ms. Gu – who during her one-day trial earlier this month admitted to luring Briton Neil Heywood to a Chongqing hotel room and slipping him cyanide – would not appeal her sentence. The British Embassy in China was lukewarm in its response to the verdict, which followed an eight-hour trial earlier this month that saw little evidence made public other than Ms. Gu's reported confession. "We welcome the fact that the Chinese authorities have investigated the death of Neil Heywood, and tried those they identified as responsible," the embassy said in a statement posted Monday on its website. "We consistently made clear to the Chinese authorities that we wanted to see the trials in this case conform to international human rights standards and for the death penalty not to be applied." Mr. Heywood, 41 was found dead last November in a hotel room in Chongqing, a city Mr. Bo then governed with an iron fist. In her confession, Ms. Gu – a prominent lawyer who put her career on hold as her husband ascended the political ranks – said she and Mr. Heywood had a dispute over money, and that she'd decided to kill the Briton after he threatened to harm her son. "This case has been like a huge stone weighing on me for more than half a year. What a nightmare. During those days last November, I suffered a mental breakdown after learning that my son was in jeopardy. The tragedy which was created by me was not only extended to Neil, but also to several families," her reported confession read. However, the death wasn't treated as suspicious until Mr. Bo's police chief, Wang Lijun, sought refuge inside a U.S. consulate, claiming to have proof Ms. Gu killed Mr. Heywood. His request for asylum was refused, and he eventually agreed to leave the consulate on the condition he be met by officials from Beijing, rather than Mr. Bo's security forces. Four Chongqing policemen were also convicted Sunday of helping Ms. Gu and Mr. Zhang cover up the murder and given prison sentences ranging from five to 11 years. A Bo family aide received nine years in jail after admitting he helped Ms. Gu make preparations to kill Mr. Heywood. Mr. Wang, the police chief, is expected to go on trial next, perhaps on charges of treason, which could carry the death penalty. The giant unanswered question is how Mr. Bo himself will be treated. He has not been seen since March, when he was purged from his leadership posts as tales of murder and corruption in Chongqing began to surface. "[Ms. Gu's sentence] is very likely a political decision, rather than a judicial one," said He Weifang, a law professor at Beijing University, speaking before the verdict was announced. "The decision does not mean that Bo will not also be criminally charged in the future. It's not the end of the whole case, it's just part of a long story." Until February, Mr. Bo was seen as a rising star in China. The son of Communist hero Bo Yibo, he was also one of the country's most charismatic politicians and widely expected to join the nine-person Standing Committee of the Politburo – the apex of power in China – at a party congress scheduled for this fall. He was already a member of the wider 25-member Politburo. Now he is in an unknown location, awaiting a decision from the country's leadership about what kind of punishment he will face. He has been accused in the state-run media of unspecified "serious disciplinary violations" and has not been seen or heard from since he was purged from his posts in March. "The case of Bo Xilai shows that officials should not overestimate their personal influence in China, or they will have the illusion of being above Party discipline and the law. If those who study China do not perceive this, they will misinterpret the country," read an editorial distributed in April over the state-run Xinhua newswire. |
| Diaoyu impasse calls for new ideas Posted: 20 Aug 2012 02:50 AM PDT Editor's Note: Tensions over the Diaoyu Islands dispute have escalated since last week, when Japan detained Chinese activists landing on the islands. The activists were later released, but heated discussion continues in China. How should China face up to Japan's provocative actions? What can China do to seize more of an initiative in the complex geopolitical landscape of East Asia? Scholars from the mainland, Hong Kong, Macao and Taiwan gave their thoughts at a symposium on safeguarding the Diaoyu Islands held by the Global Times Sunday.
Trust govt when detained Li Yiqiang, secretary-general of the World Chinese Alliance in Defense of the Diaoyu Islands Li Yiqiang Our latest landing on the Diaoyu Islands was specifically planned, as August 15 was the date the Japanese forces surrendered to the Allied forces during World War II. The campaign was a big success. Since it had been made public, the Japanese side had already made preparations. However, we still managed to break through the blockade by dozens of Japanese military vessels and successfully landed on the Diaoyu Islands. Though Chinese activists were detained, they were released within 48 hours. Credit should be given to the Chinese government, as its efforts were the key to the early release. After the detention, our alliance made a decision that night that we should trust the government's handling of the issue. Grass-roots campaigns only play a supporting role in the overall efforts concerning the Diaoyu Islands. It is the government that holds the key to the final solution. Our activists cannot represent the government. However, we can represent public opinion. This will help us attract more attention across the world. Draw red lines for Japan Luo Yuan, major general at the PLA Academy of Military Sciences Luo Yuan The dispute over the Diaoyu Islands between China and Japan has evolved into a real test of the two countries' determination and wisdom. In terms of determination, China should make red lines for Japan. For example, we should not allow Japanese to land on the Islands or station its army there. Meanwhile, China must have countermeasures prepared if Japan insists on doing so. We can also turn the Diaoyu Islands into a shooting range for the navy force. In terms of wisdom, China should have a national marine strategy for the East China Sea and South China Sea, for example, by setting up a marine committee. China can consider cooperation with Russia and South K orea. Both countries have claims over disputed islands with Japan. Meanwhile, a group can be set up to explore the economic potential in the Diaoyu Islands, and a national coast guard team should be established as soon as possible. Now we are in a passive position in dealing with Japan's provocations. Why can't we take the initiative? National consensus formed Chen Chuanren, Taiwanese businessman and author of The Strength of Chinese Overseas: History and Current Situation of Chinese Migrants (2007)  Chen Chuanren The landing by Chinese activists on the Diaoyu Islands Wednesday has triggered social fervor for protecting the islands, thanks to the prevalence of social media. In 2004, Chinese activists twice visited the islands, but the effect on public opinion was much smaller. A national consensus among people in the mainland, Hong Kong, Macao and Taiwan, which is long missed, now forms again and overrides previous internal disparities. For Tokyo, China's deterrence due to its national rise has increased. In 2010, Japan detained Chinese crew for more than two weeks after the collision incident over Diaoyu. But this time Japan released Chinese activists in two days. China has held for decades the principle of shelving disputes and seeking joint exploration. The government has been tolerant and restrained, which gives it space for resilience. China doesn't boast, but gives a firm response once other claimants take provocative actions. China should have more practical contingency plans, since maritime disputes are expected to become increasingly fierce in the future. Make full use of law Yu Zhirong, a researcher at the Chinese Maritime Development Research Center  Yu Zhirong The latest civilian movement asserting sovereignty over the Diaoyu Islands was held on August 15, which was a great date. Japan promised to maintain peace on the same date 67 years ago. Safeguarding rights is a political issue. We need to use the law, learn it, apply it, know it, but also go beyond the law. There should be an approach of combining the diplomatic, administrative, media, official and public means, as well as proper stimulus for civil society. Without the civilian movements to protect the Diaoyu Islands, we can only rely on diplomatic authorities. China needs to make full use of international law to protect ourselves and check provocateurs. Tokyo Governor Shintaro Ishihara claimed he would purchase the Diaoyu Islands, and Japan wants to nationalize and militarize the Diaoyu Islands. Therefore, we have to take a hard and uncompromising attitude. As a permanent member of the UN Security Council, China can take the initiative to talk with Japan and ask Japan to interpret the definition of inherent territory. Experts' Views Tong Zeng, president of the Chinese Civilian Association for Safeguarding the Diaoyu Islands In my 16 years' work of safeguarding the Diaoyu Islands, the attitude of our government has changed. Its stance has shifted from "shelving bilateral disputes and seeking common development" in the 1980s to the current "keeping the disputes open." Hong Kong activists' action this time is related to the adjustment of the national policy. Mo Shijian, dean of faculty of law at University of Macao Civilian activities asserting sovereignty over the Diaoyu Islands deserve support from the government. We are interpreting the law in our daily activities. The problem hasn't been resolved. In 50 years, it will be the same as if nothing active is being done. Dai Xu, professor and Colonel at China National Defense University This victory in defending our Diaoyu Islands can be a good opportunity for us to build up our authority over the East China Sea. We can launch a full-scale media war against the Japanese, for instance, and one of the key issues our media should press the Japanese side on is the independence of the Ryukyu Islands. We can also accuse the US along the way of violating international legal principles for unilaterally handing the Ryukyu Islands over to the Japanese. Zheng Ming, a retired rear admiral of the PLA Navy Chinese navy is relatively weak. We have a long coastal line to manage, and our fishery administration vessels and maritime surveillance ships often have to deal with the issues of the Diaoyu Islands and the Nansha Islands one after another. When our navy pays visits to other countries, we always send out the same ship. Some in the navy thought this might be inappropriate, so they decided to change the ship's name. But people from other countries could still recognize it. Chu Shulong, deputy director of the Institute of International Strategic and Development Studies at Tsinghua University We don't intend to make Japan submit to China's power, but just to make it less provocative. If we really want Japan to behave itself, we should recover the strength we had before the Meiji Restoration (1868-1912). Source:Globaltimes |
| Bogu Kailai sentenced to suspended death for intentional homicide Posted: 20 Aug 2012 02:41 AM PDT A Chinese court sentenced Bogu Kailai to death with a two-year reprieve for intentional homicide on Monday. She was deprived of political rights for life, said the court verdict announced by the Hefei city Intermediate People's Court in east China's Anhui Province. Zhang Xiaojun, an accessory in the case, was sentenced to nine years in prison. More than 100 people were present for the court session, including relatives and friends of the two defendants, diplomats from the British embassy and consulates in China, representatives from the media, deputies to China's legislature, members of China's political advisory body, as well as people from all walks of life. Legal representatives of the family of Neil Heywood, the victim in the case, were also at present. The proceeding started at 9 am Monday. Hu Quanming, chief judge of the court, announced the verdict after confirming the identities of the defendants. The court found that, in the latter half of 2011, Bogu Kailai and her son surnamed Bo had conflicts with Heywood over economic interests. Heywood had threatened Bo in e-mails, which made Bogu Kailai fear for her son's personal safety and decide to murder Heywood. She asked Zhang Xiaojun, then an employee of the general office of the Chongqing Municipal Committee of the Communist Party of China (CPC) and a family assistant for Bogu Kailai, to invite and accompany Heywood to Chongqing Municipality in southwest China. On November 13, 2011, Heywood checked into Room No. 1605 of the 16th building of a vacation resort called the Lucky Holiday Hotel in Chongqing. That evening, Bogu Kailai and Zhang visited Heywood's hotel, bringing along the poison containing cyanide compound which Bogu Kailai had prepared beforehand. After entering Heywood's hotel room, Bogu Kailai drank wine and tea with him while Zhang waited outside. Later, Heywood became drunk and fell in the hotel bathroom, and then Bogu Kailai called Zhang into the hotel room and took from Zhang the poison he had brought. Zhang helped Heywood to the hotel bed. After Heywood vomited and asked for water, Bogu Kailai poured the poison into his mouth, which caused his death. The forensic lab under the Ministry of Public Security confirmed through toxicology tests that the reason for the death of Heywood accords with cyanide poisoning. A Chinese court sentenced Bogu Kailai to death with a two-year reprieve for intentional homicide on Monday. She was deprived of political rights for life, said the court verdict announced by the Hefei city Intermediate People's Court in east China's Anhui Province. Zhang Xiaojun, an accessory in the case, was sentenced to nine years in prison. More than 100 people were present for the court session, including relatives and friends of the two defendants, diplomats from the British embassy and consulates in China, representatives from the media, deputies to China's legislature, members of China's political advisory body, as well as people from all walks of life. Legal representatives of the family of Neil Heywood, the victim in the case, were also at present. The proceeding started at 9 am Monday. Hu Quanming, chief judge of the court, announced the verdict after confirming the identities of the defendants. The court found that, in the latter half of 2011, Bogu Kailai and her son surnamed Bo had conflicts with Heywood over economic interests. Heywood had threatened Bo in e-mails, which made Bogu Kailai fear for her son's personal safety and decide to murder Heywood. She asked Zhang Xiaojun, then an employee of the general office of the Chongqing Municipal Committee of the Communist Party of China (CPC) and a family assistant for Bogu Kailai, to invite and accompany Heywood to Chongqing Municipality in southwest China. On November 13, 2011, Heywood checked into Room No. 1605 of the 16th building of a vacation resort called the Lucky Holiday Hotel in Chongqing. That evening, Bogu Kailai and Zhang visited Heywood's hotel, bringing along the poison containing cyanide compound which Bogu Kailai had prepared beforehand. After entering Heywood's hotel room, Bogu Kailai drank wine and tea with him while Zhang waited outside. Later, Heywood became drunk and fell in the hotel bathroom, and then Bogu Kailai called Zhang into the hotel room and took from Zhang the poison he had brought. Zhang helped Heywood to the hotel bed. After Heywood vomited and asked for water, Bogu Kailai poured the poison into his mouth, which caused his death. The forensic lab under the Ministry of Public Security confirmed through toxicology tests that the reason for the death of Heywood accords with cyanide poisoning. According to the court verdict, Bogu Kailai and Zhang Xiaojun poisoned an individual to death, constituting the crime of intentional homicide. The court ruled that Bogu Kailai's criminal offense was odious and led to serious consequences. She played the main role in the joint offense and was the principal criminal. The circumstances of her crime warrant the death penalty. Seeing that the victim Neil Heywood had used threatening language toward the son of Bogu Kailai, this aggravated the dispute between the two sides. Expert testimony showed that Bogu Kailai had the capacity to assume full criminal responsibility but suffers from a mental disorder. She fully realized the nature and consequences of her crime, but her power of self-control was weakened. After she was arrested, Bogu Kailai provided to authorities clues regarding other people's violations of the law and discipline and played a positive role in the investigation and handling of relevant cases; in court, Bogu Kailai pleaded guilty and showed remorse for the crime. Therefore, the court decided to sentence Bogu Kailai to death with reprieve. Zhang Xiaojun acted on Bogu Kailai's instructions in this joint crime, serving as an accessory. After he was arrested, Zhang accurately recounted the main criminal facts, pleaded guilty and showed repentance in the trial, which led to the mitigation of Zhang's punishment. The court meted out the penalty according to law, after full consideration of the comments of both the prosecution and defense, according to a court statement. After the verdict was delivered, both Bogu Kailai and Zhang Xiaojun said they would not lodge appeals. The court was adjourned at 9:20 am. In another development, the Hefei Municipal Intermediate's People's Court on Monday announced the verdict in the case of bending the law for personal gain involving Guo Weiguo, former deputy chief of Chongqing's Public Security Bureau, Li Yang, former chief of the bureau's criminal section, Wang Pengfei, former chief of the bureau's technical detection team and also former chief of the Public Security Sub-bureau of Chongqing's Yubei District, and Wang Zhi, former executive deputy chief of the Public Security Sub-bureau of the municipality's Shapingba District. The court said in the verdict that clearly knowing there was great suspicion that Bogu Kailai had committed the crime, the four defendants, Guo Weiguo, Li Yang, Wang Pengfei and Wang Zhi, tried to help Bogu Kailai avoid prosecution by fabricating, hiding and destroying evidence, as well as convincing the family members of Neil Heywood to decide not to have an autopsy performed. All of their conduct constituted the crime of bending the law for personal gain. The crimes committed by the four individuals caused Bogu Kailai's homicidal behavior to be covered up and Bogu Kailai not to be investigated for criminal liability, creating an extremely baneful influence upon society. Therefore, the circumstances of their crimes are especially serious. The verdict said the crime was a joint offense, with Guo Weiguo acting as the principal, and Li Yang, Wang Pengfei and Wang Zhi as accessories, while Wang Pengfei and Wang Zhi's roles were less important than that of Li Yang. The four individuals all truthfully confessed the major criminal facts after being apprehended and brought to justice. Guo Weiguo and Li Yang pleaded guilty and showed remorse in court, and Li Yang did not carry out Guo Weiguo's request to destroy key material evidence. In objective terms, this made an important contribution to investigating and solving the case of Neil Heywood's death. Nor did Wang Pengfei and Wang Zhi carry out Guo Weiguo's request to destroy key material evidence, playing a certain role in the investigation and solution of the case. According to the facts, the nature and the circumstances of the four individuals' crimes, the court, based on the law, sentenced Guo Weiguo and Li Yang to prison terms of 11 years and seven years, respectively, while both Wang Pengfei and Wang Zhi were sentenced to prison terms of five years for their crime of bending the law for personal gain. The four individuals said in court they will not appeal the sentences. Related reports:
Bogu Kailai stands trial for intentional homicide
Gu's trial will test principle of rule of law Bogu Kailai and Zhang Xiaojun, an employee of Gu's, have been charged with homicide by the Hefei Municipal Procuratorate in Anhui Province, Xinhua News Agency reported Thursday.
Bo Xilai removed from Politburo As Comrade Bo Xilai is suspected of being involved in serious discipline violations, the Central Committee of the Communist Party of China (CPC) has decided to suspend his membership of the CPC Central Committee Political Bureau and the CPC Central Committee, in line with the CPC Constitution and the rules on investigation of CPC discipline inspection departments.
Party congress discusses future of Chongqing after Bo's removal The 4th Congress of the Communist Party of China (CPC) Chongqing Municipal Committee convened in this expansive metropolitan area Monday to outline the city's blueprint for the next five years after the removal of former Party secretary Bo Xilai.
Photo: CCTV Source:Globaltimes |
| Posted: 20 Aug 2012 04:55 AM PDT The New York Times' Edward Wong recaps the saga of Wang Lijun, the former police chief under Bo Xilai's Chongqing regime, whose early February dash to the U.S. consulate in Chengdu set off a chain of events that saw Bo purged from power and Bo's wife, Gu Kailai, convicted of murdering a British businessman. While Wang is expected to face treason charges as soon as this month, though Wong writes that his role in the Bo Xilai scandal remains cloudy:
A Hong Kong television channel reported last Monday that Wang had been tried behind closed doors in Chengdu, according to The Telegraph, though no other sources have confirmed that story. See also a profile of Wang published last Friday by BBC News, as well as previous coverage by CDT. © Scott Greene for China Digital Times (CDT), 2012. | Permalink | No comment | Add to del.icio.us  |
| The Daily Twit – 8/20/12: There Once Was a Woman Named Gu Posted: 20 Aug 2012 04:18 AM PDT Today was billed as a BIG NEWS day, when we'd all get to hear the verdict in the Gu Kailai murder trial. Everyone already knew what it was going to be, but like the sheep we all were, that didn't matter. It's news, damnit! Pay attention! As a result, the "news" itself was underwhelming, and since no one was paying attention to anything else today, there's nothing else to talk about. Funky. So anyway, the verdict was a suspended death sentence. Of course. If you're unfamiliar with Chinese criminal law, that basically means that she was given the death penalty, but it's commuted to a life sentence as long as she doesn't poison to death any other people in the next few years. I'll give you a couple links, but honestly, there's nothing much exciting to read about this. The best thing I've seen thus far is this bit of doggerel from @twitmericks (h/t Melissa Chan) There once was a woman named Gu Pretty much says it all. But if that's not enough for you: Guardian: Gu Kailai given suspended death sentence over Heywood murder — your basic news report, although at this point, you already know the punchline. Chinese Law Prof Blog: How much time will Gu Kailai actually have to serve under Chinese law? — Prof Don Clarke with some criminal law background for you wonks out there. China Law & Policy: The Trial of Gu Kailai – Did the CCP Bite Itself in the Butt? — Elizabeth Lynch muses on the big picture. NBC News: With wife's conviction, what is next for China's Bo Xilai? So yeah. The only actual news out there today concerns the clusterfuck that is the South China Sea dispute, specifically the idiot nationalists in Japan and China who are making things worse. Here's the latest: Wall Street Journal: China Conflicted Over Anti-Japan Protests — the stupid, it hurts. Caijing: Anti-Japan Protests Held in Over 10 Chinese cities — disturbing pics. Some other stuff: Global Times: Deaths in custody — Pilot program concerning treatment of prisoners. I think the idea here is to avoid those situations where prisoners mysteriously wind up dead from "drinking hot water" or "playing hide and seek." Xinhua: Addresses avoiding unlucky figures forbidden — Rather amazing. The Beijing government says it will not approve building plans that call, for example, for skipping floors with "unlucky" numbers, like four, thirteen, fourteen, etc. Somehow I have a feeling this will only be enforced against private projects, not government buildings. © Stan for China Hearsay, 2012. | Permalink | 2 comments | Add to del.icio.us |
| Pictures: Beauty pageant for cows invites bikini models Posted: 19 Aug 2012 07:41 PM PDT August 18, several models donned swimwear to pose for dairy cows, and have close contact with them, in Shanyin County, Shanxi province. These cow girls were hired by the local authority to gain publicity aiming to promote the county's high quality dairy cows. On the same day, a beauty contest for the cows was held first time in the county as well. Through hours of competition, the organizer selected the first "Miss Cow" based on the cows' milk quality, appearance, and family ancestry. |
| Internet Addiction: I Guess There’s No Pill for That Yet Posted: 20 Aug 2012 03:20 AM PDT
You thought it was a fad perpetuated by the brain dead, but no, Internet addiction appears to be going strong as a made-up ailment. It's important of course that these fake illnesses can be cured of course. If they were incurable, then no one could make any money off 'em. Thought experiment: in one room, put a Net addiction counselor with one of his patients, and in another room, do the same with a gay man and an American religious "Pray Away the Gay" counselor. Start the clock. Who gets "cured" fastest? Will the gay man find Jesus and instantly become straight, or will the Net addicted kid discover the joys of educational web sites instead of porn and MMORPGs? What I think is that the gay "patient" who, at least for the moment, thinks he's straight, will now spend all of his time online watching porn, perhaps necessitating the need for a Net addiction counselor. There's no free lunch, folks. The moral of this story: there is no limit to the stupidity that the human mind can create, and then unfortunately force upon others. © Stan for China Hearsay, 2012. | Permalink | No comment | Add to del.icio.us |
| Video: White man raises public anger in Zhengzhou for slapping Chinese woman Posted: 19 Aug 2012 06:47 PM PDT A white man, who wore a "Wal-mart" card on his chest, was blocked by hundreds of Chinese citizens in Zhengzhou city, Henan Province, after he was caught slapping a Chinese woman twice and spitting at her for a traffic dispute. Local police officers were soon mobilized to the scene to calm the crowd down, as angry citizens roared on and wanted to beat the white man and turn over his BYD car (a domestically-produced Chinese car). According to eye-witnesess, a Chinese woman rode on her scooter to accidentally scatch the man's car. He then just got off his car to slap the woman and then spit at her. Seeing that he had raised anger of the masses, the man locked himself up in the car. Police officers made efforts to direct the crowd after arrival, and then took a chance to escort the white man quickly from his car to a police car, which stirred up quite an uproar as some ones attempted to rush forward to beat him. After the police car had moved away from the spot with the white man, the angry citizens still did not want to leave. They demanded the man make an apology right then, and smashed his car too, when some other police officers were still at the spot to calm the people. At the end, the crowd only dispersed, after the bureau chief of the local public security bureau stepped out to predge that he would resign if he could not handle the matter properly for the public. |
| Wal-Mart, Yihaodian, and the Mystery of the VIE Posted: 20 Aug 2012 02:16 AM PDT
I've since had a chance to look at the actual approval language (in Chinese) as well as some of the conversations that have ensued, including this brief article from British firm Herbert Smith. In my post last week, I did not make a big deal of the VIE aspects of this case because frankly I didn't see it as the central issue, and besides, it didn't appear as if the MOFCOM ruling changed anything with respect to the legality of the VIE structure. I think I'm going to stick with that thinking. However, in light of the Herbert Smith article and other speculation out there, I figured a further comment might be a good idea. Let me start off by saying that I haven't yet read anything that suggests anyone really knows for sure what that MOFCOM ruling really means for VIEs. No, seriously. I've read it myself, along with several interpretations, and I have to say, more than one of them sounds feasible. I think I understand the shareholding structure at this point: 1. Wal-Mart was a minority shareholder of a company called Niuhai, which has a Hong Kong offshore structure as well as one or more onshore subsidiaries. Niuhai is the entity in which Wal-Mart increased its shareholding. 2. Yishiduo is a Chinese company HQ'd in Shanghai that is the holder of the necessary VATS license required to operate the Yihaodian e-commerce platform. This is the VIE. 3. Presumably, Niuhai's onshore company and Yishiduo have several contractual arrangements we all know and love, the basis of the VIE structure. OK, in other words, Niuhai was basically doing some old-style round-tripping, which means money from China was taken offshore and used to capitalize a foreign entity, which was in turn used to set up one or more foreign-invested enterprises. The original investor was Chinese, but the companies in China were considered foreign under Chinese FDI law. Classic stuff. Wal-Mart wanted to buy out one of the investors' offshore holding, which triggered the anti-monopoly review. Wal-Mart, therefore, was not buying the e-commerce operating platform directly, therefore, only the foreign portion and its rights under the VIE. So all is clear? Not exactly. The problem, as usual, is that the language from MOFCOM is mushy and unclear. Welcome to China law. FYI, the language in question is the following:
Before you Chinese speakers out there say "Hey, that language doesn't look all that complicated," take another look and explain to me exactly what it means. I'm genuinely not sure. For example, in that third paragraph, when it says that Wal-Mart may not use the Yishiduo network, via the VIE, I cannot really say for sure what that entails. I hope that Wal-Mart understands what it can/cannot do. Obviously Wal-Mart cannot jump on the Yishiduo platform and start expanding it as a Wal-Mart business, offering services to third parties. That would be a pretty blatant use of a restricted license. Similarly, it also seems clear that Niuhai (i.e., Wal-Mart) can use its own network, although I have questions there as well. The Herbert Smith article includes the following reaction:
I disagree with the emphasis here. Yes, it's true that MOFCOM is concerned about Wal-Mart's potential use of the Yihaodian platform. This is a normal competition law issue, one that we would expect in such a conditional ruling. The presence of the VIE is however, at least in my mind, purely incidental. This deal happens to involve a VIE structure, and so if Wal-Mart was going to abuse a post-deal dominant position by using the Yihaodian platform, then yes, that would include its VIE structure, a key asset. In other words, MOFCOM isn't so much worried about Wal-Mart's use of a VIE per se, but rather with a possible market concentration that could, in part, be built upon a VIE. Does that make sense? So has MOFCOM said anything concerning VIEs that is significant? Herbert Smith suggests yes, but is cagey about it:
There are three ways I could argue this. Being a lawyer, this comes second nature to me: 1. MOFCOM's warning about the use of the Yishiduo VIE suggests that it is adopting a policy of closer scrutiny of such structures. Investors beware! (King & Wood's Susan Ning supports this interpretation.) 2. MOFCOM's specific acknowledgement that the target company for which it is giving an approval operates a VIE structure is as close to a formal recognition of the legality of VIEs that we are going to get. Investors celebrate! 3. MOFCOM's chief concern with this approval was competition in the retail space. Yihaodian could just as easily owned the country's largest trucking or warehousing business instead of a VIE-operated e-commerce platform. MOFCOM seems neutral on VIEs and will probably only deal with them on a case-by-case basis. Investors go back to sleep! Me, I'm kinda thinking Argument #3 makes the most sense, but I'll admit that I'm speculating along with everyone else out there. © Stan for China Hearsay, 2012. | Permalink | No comment | Add to del.icio.us |
| How I Learned to Stop Worrying and Love Joint Ventures Posted: 19 Aug 2012 11:41 PM PDT
Conventional wisdom says that one should avoid a Sino-foreign Joint Venture (JV) if at all possible. You have to deal with a partner, they take a while to set up, there's the partner situation, and management can be complicated. And oh yeah, you need a partner. So why am I offering up a column that seemingly lauds the JV? Does conventional wisdom have it all wrong? Not at all. The advice is still excellent, and I certainly try to steer my clients clear of such entanglements when I can. That does not mean, however, that you should ignore the lessons of JVs, even when the China deal you are contemplating is completely different. My years in the classroom have shown that if my law students can thoroughly understand the way that JVs work, they can do just about anything. For example, let's say you own a valuable trademark and wish to license it to a Chinese manufacturer. Not even remotely similar to a JV you say? I beg to differ. That licensor-licensee relationship looks a lot like a JV partnership to me, although the commercial terms may be somewhat different. That License Agreement will share some of the elements of a Joint Venture Contract, and the operational end of the arrangement (i.e., how things work out "on the ground") may end up looking very much like a JV, depending on how involved the licensor is in the China business. Even an investor looking to drop some cash into an offshore-listed Chinese company could learn a thing or two from Sino-foreign JV history. Consider the recent problems we have seen with Alibaba, GigaMedia, and ChinaCast Education; the common theme here is local management fighting with foreign investors. Sound familiar? If you are still with me at this point, you might be wondering just what JV lessons are most instructive. If I am going to spend my weekend researching Beijing Jeep and the failed Danone-Wahaha partnerships, would should I be looking for? You may wish to start with the following: 1. Legal and Operational Control – JVs would not be challenging without the issue of control. Because you are stuck with a partner, there is a constant struggle in many JVs over who has the legal ability to make decisions and who has the de facto ability to do so – in many instances, these are two different parties. When you read up on your Sino-foreign JV history, consider what sort of legal and actual control issues pertain to your own deal. 2. Relationships – Most China consultants you talk to will totally inflate the importance of relationships (guanxi) to modern business culture. Guanxi is still a big deal in China, but for many commercial deals, it is much less important than it used to be. On the other hand, most deals involve one or more key parties whose cooperation is crucial to your success. A JV presents the most obvious example, but licensees, manufacturers, buyers and distributors are just as important. Take a look at messes like the Danone-Wahaha JV/litigationfest, and you can find many mistakes to avoid. Treat that licensee like you would a JV partner; the relationship will be much better for it. 3. Trust, but Verify – Ronald Reagan's oft-quoted phrase about U.S.-Soviet relations, which he borrowed from a Russian proverb, is always good advice for JV partners. There is a good reason we lawyers draft those lengthy, hard to read contracts. But that is not nearly good enough. JV partners should by all means work on their relationship and keep it friendly, but at the same time, mechanisms must be built into place that allow the partners to check up on one another's activities, just to keep everyone honest. This usually involves lots of disclosure, inspections, and hopefully sharing of operational control. Once again, what's good for the JV is also important for that licensing, distribution or manufacturing deal. You really ought to keep track of what your licensee, distributor or local factory is up to, and not just when they are busy churning out widgets on your behalf. 4. Due Diligence – Most investors understand that if they are contemplating a multi-year equity deal involving a company from another country, some sort of investigation is warranted. That prospective partner might have financial trouble or a cloud on its land use rights. Perhaps it used to launder cash for Golden Triangle drug runners or manufacture shell casings for African dictators. You never know until you start digging. If you buy into this logic, though, why would you jump into bed with a licensee or distributor, for a multimillion dollar and multi-year deal, without also checking out that company? JV horror stories abound of what can happen when those skeletons are left in the closet, only to pop out later, and always at a most inconvenient time (e.g. M&A, IPO). Just to be crystal clear: I still do not like Sino-foreign joint ventures as investment vehicles, at least most of the time. Too few benefits, way too many downsides. But as a teaching tool, an avenue to enlightenment for you prospective investors looking to crack into the market and in need of some quick historical lessons? JV case studies should be at the top of your reading list. © Stan for China Hearsay, 2012. | Permalink | One comment | Add to del.icio.us |
| PREVIEWING THE LEGISLATIVE COUNCIL ELECTION: Designs and Strategies Posted: 19 Aug 2012 10:59 PM PDT Hong Kong's long contentious political season will come to an end, of sorts, with the election of 70 new Legislative Council members. Probably the September 9thpoll will only herald more of the same after everyone returns from much-needed vacations to start a new legislative year in October. But for now political leaders are engaged in one final struggle to determine who has fared better and who worse from the last two years of constant wrangling over political reform and the selection of representatives at all levels who will be responsible for guiding Hong Kong through the second decade of its life under mainland rule. The multiple parties and groups that rank themselves as pan-democrats have so far won the contest for street marches and political rallies hands down. But they are also slowly losing their battles at the ballot box … not for want of votes or lack of popular enthusiasm for their causes. Instead, pan-democrats failure seems due to a refusal to admit that their pro-Beijing political adversaries have now mastered all the tricks of the Western-style electioneering trade and are using them to legitimize a mainland-style people's congress system where pan-democrats will be unable to compete. This has already happened at the grassroots District Councils level and pro-Beijing politicians are now setting their sights on the Legislative Council. September 9th may have a different result due to public anger over growing "mainland-ization" aggravated most recently by the new mainland-style political studies program for all students (July 31 post). Otherwise, all indications are that pan-democrats' ballot-box victories will continue to recede as they have been doing for the past decade … thanks to a lack of political foresight and coherent preventive strategies that seem to derive from their strange state-of-denial. BASIC DESIGNS Unfortunately for those interested in the subject who don't live here (and can't simply "learn-by-doing" as the process unfolds), its intricacies need to be explained. Herein lays a major difficulty sinceHong Kong has what must be the most convoluted election system in use on the planet. Nevertheless, we must try. The basic design comprises two types of legislators: 35 elected from Geographic Constituencies and 35 elected from Functional Constituencies. As part of the political reform package introduced in 2010, the total number of legislators has been increased from 60 to 70, with five seats added in each of the two categories. Geographic Constituency legislators are elected directly by universal suffrage on a one-person-one-vote basis, although votes are transferrable and allocated proportionally within each of five election districts. Seats are apportioned according to population as follows (along with the number of registered voters) in each district: Hong Kong Island: 7 seats (606,676) Kowloon East: 5 seats (559,524) Kowloon West: 5 seats (437,967) New Territories East: 9 seats (874,678) New Territories West: 9 seats (987,330) Also following from the 2010 political reforms, Functional Constituencies (FCs) now come in two kinds: old style and new. They will be electing 30 old-style legislators and five new. The old-style FCs are (basically) the same as those that elect the Chief Executive Election Committee, which selected Chief Executive Leung Chun-ying a few months ago (Jan. 16, 2012 post). There are 28 in all, designed to represent most sectors of the economy but weighted to favor conservative big-business and pro-Beijing interests. For example, this category includes three labor seats. But only union leaders can vote and each elector has three votes, meaning each can vote for three candidates. This ensures that all three seats are filled by pro-Beijing labor representatives since a majority of Hong Kong's trade unions have been pro-Beijing since the 1950s. (The 28 old FCs are listed in my April 16, 2010 post.) The new FC legislators were a major source of controversy in 2010. The government and the main pro-Beijing political party (Democratic Alliance for the Betterment and Progress of Hong Kong or DAB), proposed a mainland-style indirectly-elected arrangement whereby Hong Kong's 412 directly-elected District Councilors could elect five of their number to sit in the Legislative Council. The idea was to use this conventional method as a means of phasing out the anachronistic old FCs and substituting as replacements the equally "safe" indirectly-elected District Councilors. They would be safe because pro-Beijing and conservative forces now dominate all the District Councils, which are overseen by pro-Beijing stalwart Tsang Tak-sing who heads the Home Affairs Department reportedly at Beijing's behest. The controversy erupted after Democratic Party chairman Albert Ho Chun-yan (negotiating for pan-democrats but without the consent of all) agreed to the proposal – but only if ALL voters could participate in electing the five new FC legislators. As a result, only the 400+ District Councilors can nominate candidates and be nominated to stand as candidates for these five new seats. So they will still be occupied by District Councilors (as will a sixth seat, namely, the old District Council FC seat that remains unchanged). But all voters (who are not qualified to vote in any of the old FCs) can vote in the new FC category. That means all of us (non-old-FC electors) now have two votes. And six legislators will be wearing two hats as concurrent members of two (Legislative and District) councils. After accusations of "vote planting" following last November's District Councils election, the government belatedly attempted to verify and update its lists. Vote planting refers to those who register to vote in constituencies where they do not reside. The closest contests were carefully scrutinized and no results of that election were overturned, although several vote planters are being prosecuted. But some 200,000+ voters were subsequently struck from the rolls for failure to respond to verification notices. A new voter registration drive has made up for about half the losses. The final counts for voters qualified to cast ballots on September 9 are: Georgraphic Constituency voters, 3.46 million; old FC voters, 241,000; new FC voters, 3.2 million.* CANDIDATES AND STRATEGIES The system is rooted in British legislative ingenuity. Long ago, as their colonies were allowed to begin the journey toward self-rule, elections and legislatures were designed to produce what were called "safe" loyal majorities. Hong Kong lagged behind all others in this respect. Its first real experiment with such reform did not begin until the 1980s, but the designs were based on the same old colonial logic. Beijing quickly grasped its possibilities and Hong Kong's Basic Law formulas were designed accordingly. Hence even if pan-democrats by some miracle could become as disciplined as their pro-Beijing counterparts, pan-democrats would still be unable to use their popularity to proportional legislative advantage. But in addition, beyond this basic design handicap, the real challenge now is that the DAB together with its allies are beginning to win elected majorities and are using the legitimacy of the popular vote to dominate the system overall. The Old FCs: 28 constituencies, 30 seats. These are naturally the easiest to manage. This year will see a record number of carry-over uncontested seats, or 16 in all for 14 FCs. The government's information bulletin notes helpfully that some 23,000 electors in these old FCs "do not have to vote." * They include the three labor seats, the old District Councils seat, and that of the Rural Consultative Council (Heung Yee Kuk), a special sinecure slot reserved for New Territories suburban land owners. A total of 37 candidates are contesting the other 14 FCs. Pan-democrats currently hold only four: education, legal, health care providers, and social workers. In the past, pan-democrats have also won the information technology, medical, and accountancy seats. Professional Commons, a group for policy wonks close to the Civic Party, is contesting five constituencies, but pan-democrats are in danger of losing their important legal stronghold. Its long-serving occupant, the Civic Party's Margaret Ng, is retiring and their replacement candidate may lose to a non-democrat who is the beneficiary of an intense partisan bid to capture this seat. He has boasted of collecting 800 nominating endorsement signatures from fellow constituents, even though only 10 are required for old-FC candidates. This seat represents the legal fraternity, with a total of 6,482 registered voters. The New FC: one hybrid District Council constituency, 5 seats, 7 candidate lists. This new category highlights pan-democrats' failure to focus on their opponents' take-over strategy "from below" via popular elections. Albert Ho's compromise decision accepting this new hybrid FC was made so carelessly that even core members of his own Democratic Party did not understand until weeks later that the five new FC seats were NOT going to be open to all kinds of candidates. The DAB resented Beijing's agreement to compromise by giving all voters (and not just the 400 District Councilors as originally planned) a say, and so gave no quarter when the details were written into the implementing rules. Only then did Albert Ho clarify that his compromise contained no agreement to allow everyone the right not just to vote for these seats but to contest them as well. To qualify as a candidate, only District Councilors need apply and they need the nominating signatures of 15 other District Councilors. That realization naturally gave new impetus to last November's District Councils election and was what inspired some big name democrats to parachute into District Council constituencies. They were hoping to qualify as candidates for what has come to be known as the new "super seats" because of their single all-city electorate. But the compromise also provoked radicals led by Raymond "Mad Dog" Wong Yuk-man to lead a similar parachute-jump into constituencies all over town where moderate incumbent democrats including Albert Ho were defending their seats. He currently wears two hats as a member of both the Legislative Council and a District Council. Raymond Wong's idea was to "teach them a lesson" for capitulating on political reform. Instead, all the pan-democratic parachuters lost in a lesson learned the hard way. They did not realize that the District Councils are now pro-Beijing territory where the influence of loyalists and their conservative allies are entrenched. They have succeeded in this respect by the well-funded social services and amenities they provide, targeting seniors and with a deliberate focus on livelihood issues. Their candidates at this level (indeed all levels) try never to discuss "politics" if they can help it. Even the highly political campaign they waged last year against the Civic Party emphasized specifically the alleged threat posed by their high-profile court cases to working class jobs and low-cost middle class domestic help (Dec. 5, 2011 post). In the loyalist/conservative upsurge that followed, not only were all the pan-democratic parachuters defeated but so were some big name democratic incumbents like the Civic Party's Tanya Chan and the Democratic Party's Lee Wing-tat. Albert Ho was one of the few survivors, along with two other less popular incumbents (Nov. 14, 2011 post). The three of them now stand alone as pan-democrats' only hope for winning at the "super seat" level. Heading their three lists are the Democratic Party's Albert Ho and James To Kun-sun, plus veteran moderate Frederick Fung Kin-kee. Heading the loyalists' lists are three strong candidates: Federation of Trade Unions leader Chan Yuen-han who came out of retirement for this race; DAB vice-chairman Lau Kong-wah who tapped his old Shatin District Council support base with ease last November; and the DAB's attractive young rising star, Starry Lee Wai-king. The maverick in this race, heading the seventh list, is aging photo-op candidate Pamela Peck Wan-kam. She rode the conservative backlash to victory in a Wanchai District Council constituency last November and may deprive both sides of a few marginal votes. Presumably, the entire cast of pro-democracy characters would have behaved differently last year had they understood: (1) the grassroots strength of their opponents' District Councils base; and (2) their strategy for using that base as a bridge to dominate the Legislative Council. The Geographic Constituencies: 5 districts, 35 seats, 67 lists, 216 candidates. HK Island: 7 seats 14 lists (pan-dems, 5; pro-establishment, 5; independent, 4) KN East: 5 seats 9 lists (pan-dems, 4; pro-establishment, 2; independent, 3) KN West: 5 seats 9 lists (pan-dems, 4; pro-establishment, 2; independent, 3) NT East: 9 seats 19 lists (pan-dems, 8; pro-establishment 6; independent, 5) NT West: 9 seats 16 lists (pan-dems, 8; pro-establishment, 6; independent, 2)
…. To be continued …
* http://www.info.gov.hk/gia/general/201208/07/P201208070334.htm . Also,
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