9 October 2015

Gentlefolk

As you know, I compile a monthly summary of news items, with a focus on news on China.  

There is so much competition within Western media outlets that usually only the unusual, sensational, or bizarre gets a mention. Hopefully this summary will give you a better idea of some of the things happening in China.

The events/items included are not necessarily the headlines, but rather things which caught my eye.

The second list, international events reported in China, is basically for me.  There are so many things happening around the world (information overload!), that I find it useful to have such a list to look back at. 

These news items were sourced from the China Daily newspaper 1 – 30 September 2015. 

Actual events usually occurred a day or two before they appeared in the China Daily newspaper. 

Currency shown is US$, and the exchange rate used this month is US$1 = Yuan 6.3.

Remember: the China Daily is a government newspaper whose main purpose in life is to make the Communist Party of China (CPC) and the Chinese Government look good.  But if you strip away the propaganda, there is still quite a lot of interesting stuff in the paper. 

I can’t guarantee the accuracy of the information. I am aware that in the last few weeks a number of Western commentators have begun to question the accuracy of Chinese economic data.  An old joke does the rounds here: The Premier asks the head of the National Statistics Office “What was GDP growth last quarter?” The reply: “What do you want it to be?”  I don’t think manipulation of statistics is nearly as bad now as in the ‘old days’.

Events which made the news in China in September 2015

(a) Domestic (in China) events and news

4 Sept	Big parade in Beijing yesterday to commemorate the 70th anniversary of the defeat of Japan which ended the Sino-Japanese War (1937 – 1945) and WW2. Peoples Liberation Army (PLA): 12,000 troops marched; 500 pieces of the latest hardware such as tanks and rockets on display; 200 aircraft.  1,000 foreign troops from 17 countries participated, most from countries which had little to do with Japan in WW2, such as Russia; Belarus; Kazakhastan; Afghanistan; Mexico; Cuba; Venezuela; Fiji; Laos; Cambodia. 30 foreign leaders attended, notably Vladimir Putin (Russia) and Park Geun Hye (South Korea). Most Western countries were represented by their Ambassadors. President Xi Jin Ping announced plans to reduce the size of the PLA by 300,000 to make it more efficient.
	China consumed about 70,000 tonnes of cheese in 2014, 94% imported.
	Steel output in the first 7 months of 2015 totalled 476 million tonnes, down 2% on same period in 2014. Steel exports in the first 8 months totalled 72 million tonnes (up 27% on same period in 2014).
	China exported tea valued at $1.3 billion in 2014 (8% less than 2013).
5	Chinese airlines handled 210 million passengers in January – June 2015 (up 12% on same period in 2014).  Lower oil prices boosted profits.  Air China said its profit for the first half of 2015 was $550 million largely due to a 30% fall in fuel costs.
7	Some netizens criticised Taiwanese singer Fan Wei Qi (Fan Fan) for showing a lack of respect when she posted happy photos of her twins on her Weibo account on 3 September, the day China commemorated the end of the Sino-Japanese War. She is hugely popular in China, with 47 million Weibo followers.
	An explosion at a chemical factory in Dongying, Shandong Province: 13 dead, 11 injured.
8	Li Qing Gui, Party Chief of Xin Xiang, Henan Province, was demoted for failing to control corrupt subordinates.
	The Mayor of Jining, Shandong Province, Mei Yong Hong, resigned to join a local insurance company. He will earn 3 times his former salary of about $900 per month.
	The Shanghai Composite Index (the main share-market index) has had a bad time.  On 12 June it was 5,166; on 8 July 3,507; on 26 August 2,927; and on 7 Sept 3,080.
9	International trade in August 2015: exports totalled $189 billion; imports totalled $131 billion.
	In 2011 China started ‘trial’ emission trading markets in seven major cities.  The Govt has announced that a nationwide system will be introduced in 2017, and be fully operational by 2020.
10	The National Statistics Office announced that it will adopt the IMF’s approach.  In future, GDP will be based on a single quarter’s data (previously calculated on cumulative figures).
	Since the end of 2012, 125,000 members of the CPC have been disciplined.
11	24 year old Guo Mei Mei was sentenced to 5 years in prison and fined $8,000 for “operating gambling houses” during the 2014 Soccer World Cup.
	The Nissan joint-venture, Dongfang Nissan, was fined $19m for ‘violating anti-trust laws’ by fixing car prices (Mercedes Benz was earlier fined $55m and Audi $39m).
	The World Leisure Games were held in Qingdao, 12 – 21 September.  Contests included: rock climbing; roller skating; street dancing; dragon boat racing; martial arts.  About 15,000 contestants participated.
	The Ministry of Finance reported that Apple under-paid tax of $71 million in 2013.  Apple paid the $71m and incurred a ‘late fee’ of $10m. In the 2nd Quarter of 2015 Apple sold 120 million iPhones in China – represented 11% of China’s smartphone market. The iPhone 6S and 6S Plus and the iPad Pro were launched in the US yesterday.
12	Casualties continue to rise from the huge explosions at a warehouse storing hazardous chemicals in Tianjin on 12 August: now 165 dead (including 99 firemen and 11 policemen). Eight persons still unaccounted for - will probably be added to the ‘deaths’.  239 injured are still in hospital. The Govt has announced families of dead will receive compensation of $360,000 each.  The Govt will also buy badly damaged apartments for 30% above the previous market price.
	Five large stockbrokers were fined a total of $28 million for “illegal trading activities” which aggravated the recent stock market crash.
14	Starbucks has 1,400 outlets in China; it plans to have 3,400 by 2020.
	A Chinese shipbuilder has delivered the largest-ever container ship (capacity of 18,000 standard containers equivalent) to a French buyer.
	An investigation of the China State Construction Engineering Corporation found that 24 senior managers were ‘naked officials’ (ie, their wives and/or children were living permanently abroad). One decided to bring his family back, the others were demoted.
	August was the 4th month of declining sales of Passenger Motor Vehicles. 15 m units were sold in the first 8 months of 2015.
16	Universal Studios announced plans to joint-venture with 4 State Owned Companies to build a $8 billion theme park in Beijing.
	The number of Chinese visitors to the US totalled 2.2 million in 2014 (up from 397,000 in 2007). The average stay was 14 days and they spent an estimated $23 billion. In November 2014 the US introduced 10-year multiple-entry visas for Chinese which is expected to boost visits even more. There are 274,439 Chinese students studying in the US (31% of all foreign students).  They contribute an estimated $22 billion to the US economy.
17	Hangzhou, Zhejiang Province, won the bid to host the 2022 Asian Games (Beijing was the host in 1990, and Guangzhou in 2010).
	Three internet giants, Alibaba, Baidu, and Tencent, all establish film/movie subsidiaries.
	China’s annual 3 month fishing ban ended yesterday.
19	Futer Energy’s coal-to-oil project ($2.2 billion) started in Yulin.  1st phase capacity is 1.1 million tonnes per annum; 2nd phase may increase to 10 mtpa. But recent low oil prices make this project uncompetitive and the 2nd phase will likely be postponed.
	Average price of new apartments rose in August 2015 in 35 of 70 largest cities; average price up 1.7% over August 2014 (Tier One cities saw larger increases: Shenzhen up 30%, Beijing up 14%, Shanghai up 7% on a year ago).
21	Yesterday’s Beijing Marathon had 30,000 runners (65,000 applied).  No shorter distances were included this year.  Pollution level PM2.5 @ 160 for the race was “medium". Kipchumba (Kenya) won the Mens in 2h 11m; Cherrenet (Ethiopia) won the Womens in 2h 27m.
	State Owned Enterprises (SOEs). There are 111 SOEs under the National Govt, and about 25,000 under Provincial and Local Govts. Profits of National SOEs fell by 3.1% in the first half of 2015.  Reforms in the pipeline.
24	Currently an estimated 12% of Beijing residents commute by bicycle (down from 38% in 2000). The Municipal Govt is trying to promote cycling. By the end of 2015 it will have 50,000 bikes-for-hire around Beijing and ‘no-parking’ by cars in bicycle lanes will be strictly enforced.
	In 2014 China attracted Foreign Direct Investment (FDI) of $129 billion.
26	Popular children’s author Du Hong died of cancer.  She spent $120,000 to have her brain cryo-preserved in the USA (kept in liquid nitrogen at minus 196C) in the hope that future technology will enable her to “return”.
	SOE coal miner Heilongjiang Longmay announced 100,000 job cuts.  It produced 50 million tonnes of coal in 2014 but suffered losses of $815 million.
	Molson Coors announced that it is pulling out of the Chinese market – too much competition.
29	Tianjin University announced that it will run an elective course on 'dating'.
	Celebrations of the 2,566th anniversary of Confucius birth.
	Groundwater in China is being over-extracted by an estimated 17 billion cubic meters per annum. New plan being formulated to restrict the extraction of groundwater.

(b) International events

5 Sept	Hundreds of thousands ‘migrants’, primarily from Middle East and Africa, attempting to reach northern EU countries.
	China Railway Rolling-stock Corporation (CRRC) won contract to upgrade Boston Metro. CRRC is building a manufacturing plant in Springfield, Massachusetts (investment of $95m).
	Kentucky clerk Kim Davis jailed for refusing to marry gay couples.
	Judge Richard Berman overturned the NFL’s four-game ban on Tom Brady for allegedly using deflated balls during the Patriots – Colts game last January.
7	The Chinese Womens Volleyball team beat Japan in the finals to win the World Championships.  China gets automatic entry into the Rio Olympics next year.
10	Queen Elizabeth 2nd passed Queen Victoria’s record reign of 63 years.
	Wayne Rooney’s goal in England’s win against Switzerland brought his total to 50.  He passed Bobby Charlton’s 45 year old record of 49 goals to become England’s top scorer.
11	Election in Singapore: Lee Hsien Loong’s People Action Party won a resounding victory with 69% of vote.
	Anniversary of the 9/11 attacks on the US.
12	A Pew Research Center survey found that 54% of Americans have an unfavourable opinion of China, while 38% have a favourable opinion.  Issues of most concern: huge US debt held by China; loss of manufacturing jobs to China; alleged cyber-attacks by China; China’s human rights record; huge US trade deficit with China; China’s pollution; China’s growing military power; disputes over islands in South China Sea.
	The United Nations voted 119 to 8 (45 abstentions) to allow the Palestinian flag to be flown at the UN headquarters.
14	Jeremy Corbyn was elected leader of the British Labour Party.
	A crane collapsed in Mecca’s Grand Mosque, killing 107 and injuring 200 Haj pilgrims.
	Floyd Mayweather beat Andre Berto to win his 49th professional fight (equalling Rocky Marciano’s record). Mayweather announced his retirement from boxing.  His winnings since 1996 total close to $1 billion.
	US Tennis Open: Flavia Pennetta beat Roberta Vinci (who beat Serena Williams in the semis). First all-Italian final. Novak Djokovic beat Roger Federer to win his 10th Grand Slam (Federer has won 17).
16	New Australian Prime Minister when Malcolm Turnbull beat Tony Abbott 54 – 44 in a Liberal Party leadership ballot.  Turnbull is Australia’s 29th PM (and 5th in 5 years).
	A subsidiary of SOE Bright Food Group will buy 50% of Silver Fern Farms, New Zealand’s biggest meat cooperative, for $197 million.
	Australian rugby league star Jarryd Hayne switched to the San Francisco 49ers American Football team. He fumbled his first catch, but SF went on to beat Minnesota 20 – 3.
17	In two separate incidents, two American-Chinese Sherry Chen and Professor Xi Xiao Xing, were accused of giving classified information to China.  After investigations, both have been released and all charges have been dropped.
	New documentary by director William Mundell “Better Angels” on Sino-US relations.
18	8.3 earthquake hit Chile; 12 dead, widespread damage.
	Didi Kuaidi invested $100 million in Lyft, Uber’s competitor.  Didi has 80% of Chinese market for car-hailing.
19	Wearables market, 2nd quarter 2015 top three: Fitbit sold 4.4 million units, Apple sold 3.6m, and Huanmi (Mi brand) sold 3.1m.
	China’s Biostime bought 83% of Australian Swisse Wellness Group for $989m.  There is strong demand in China for foreign nutritional products.
21	Japan’s Diet (Parliament) passed the new Security Law which will allow Japanese troops to fight overseas.
	Rugby World Cup in England.  Big upset when Japan beat South Africa 34 – 32. England was beaten by Wales and Australia, so is out of the competition.
22	President Xi Jin Ping started his visit to the USA today, accompanied by First Lady Peng Li Yuan. First stop Seattle for China – Governors Forum and Business Round Table.  He will tour the Boeing (Boeing has orders from China totalling $38 billion) and Microsoft Headquarters.  24 Sept official visit to Washington DC and meetings with President Obama.  26 Sept at United Nations in New York.  He pledged $1 billion to the “China-UN Peace & Development Fund”; $100 million to the African Union; $2 billion for South-South Cooperation; $10 m for the UN Women’s Group; training in China for 30,000 women from Developing Countries). Back to Beijing 29 Sept. This is President Xi’s 7th visit to the US since 1985, but his first official visit. A new book “The Xi Jin Ping Era” was published, edited by Professor James Hsiung of New York University.
	Visit to China by George Osborne, UK Chancellor of the Exchequer.
	Aussie Jason Day, 27, won the BMW Championship in Illinois and became the World #1 ranked golfer. It was his 4th win in 6 starts.  He shot impressive 61 and 63 in the first two rounds, and ended up winning by six strokes. (But 10 days later Jordan Spieth won the FedEx Championship and replaced Day as World #1).
	Smoke from fires in Sumatra and Kalimantan blanket Singapore and parts of Malaysia.  Singapore has closed schools.
26	A stampede of Haj pilgrims near Mecca results in 800+ deaths and thousands injured.
	VW admitted incorporating rogue software to improve emission standards in about 11 million diesel-engine cars.
28	Catalan separatists won in regional elections.
	Thai police say that the bombing at the Erawan Shrine on 17 August (20 killed, 120 injured) was in response to their crackdown on human trafficking syndicates.

September saw the start of the 2015-16 academic year, which will be our last in China as we intend to finish teaching in July 2016.

Best wishes to you all, keep well and keep smiling.

Alex & Vera Olah

English teachers at the China University of Petroleum, Qingdao

www.upc.edu.cn

Friday, 9 October 2015.