10 10 business daily
March 31, 2014 Friday April 19, 2013
Greater China Anti-graft rules for urbanization China has unveiled plans to tackle corruption and abuse of power in the real estate sector, state media said, as it tries to smooth the way for the mass migration of millions of Chinese into cities from the countryside. The anti-graft plans are part of an urbanisation programme designed to underpin a restructuring of China’s economy, the world’s second largest, away from exports towards one based mainly on domestic consumer demand. Corruption is rife in China, particularly within the state administration where many officials and their dependants have grown rich by abusing their authority.
HK JPMorgan office searched Hong Kong’s anti-corruption agency searched a JPMorgan Chase & Co. office in the city amid a U.S. investigation into the bank’s hiring practices, according to two people with knowledge of the matter. The Independent Commission Against Corruption seized computer records and documents after searching the office of Fang Fang, the company’s outgoing chief executive officer for China investment banking, said the people, who asked not to be identified because the investigation is confidential. The New Yorkbased bank announced Fang’s resignation March 24. JPMorgan has employed him for more than 12 years.
GM to retire Opel from China General Motors Co. will pull Opel from China next year after failing to gain traction in the market over the last two decades and will invest in Europe to boost the German car brand’s sales in its home region. Opel, which has been in China since 1993, never grew beyond a lowvolume, niche player in the country, accounting for less than 1 percent of GM’s sales in the market last year. The marque will spend 245 million euros (US$337 million) to add two models at the main Ruesselsheim factory in the coming years.
Xi plays down military expansion President Xi Jinping defended the build-up of China’s armed forces, saying that the nation will never seek “hegemony or expansion” in the Asia-Pacific region even as it steps up its diplomatic and military presence. In a speech in Berlin, Xi called on nations to seek “mutual understanding” with China, which he said has pursued a foreign policy of peace. “We will not provoke trouble ourselves, but we do not fear trouble provoked by others,” Xi said in response to a question following the address sponsored by the Koerber Foundation.
Shenhua annual profit drops China Shenhua Energy Co Ltd , the country’s largest coal producer, posted a 9.3 percent fall in 2013 net profit, roughly in line with forecasts, as coal prices slid amid a slowing domestic economy. The state-run coal mining giant, which also owns power plants, railways and ports, said its net profit reached 45.1 billion yuan (US$7.3 billion) last year, versus restated earnings of 49.7 billion yuan in 2012. The results compared with a consensus forecast of 43.4 billion yuan in a Thomson Reuters poll of 28 analysts.
Biggest corruption case results in major seizures Confiscation of assets from Zhou’s circle appears to show that President Xi Jinping is tackling graft at the highest levels
C
hinese authorities have seized assets worth at least 90 billion yuan (US$14.5 billion) from family members and associates of retired domestic security tsar Zhou Yongkang, who is at the centre of China’s biggest corruption scandal in more than six decades, two sources said. More than 300 of Zhou’s relatives, political allies, protégés and staff have also been taken into custody or questioned in the past four months, the sources, who have been briefed on the investigation, told Reuters. The sheer size of the asset seizures and the scale of the investigations into the people around Zhou -both unreported until now- make the corruption probe unprecedented in modern China and would appear to show that President Xi Jinping is tackling graft at the highest levels. But it may also be driven partly by political payback after Zhou angered leaders such as Xi by opposing the ouster of former high-flying politician Bo Xilai, who was jailed for life in September for corruption and abuse of power. Zhou, 71, has been under virtual house arrest since authorities began formally investigating him late last year. He is the most senior Chinese politician to be ensnared in a corruption
KEY POINTS Investigation into Zhou Yongkang has broadened in past four months Relatives and associates have had bank accounts frozen Bonds, apartments, cars, paintings, cash and gold seized Most seized assets not in Zhou’s name More than 300 relatives, allies, staff detained or questioned
investigation since the Communist Party swept to power in 1949. “It’s the ugliest in the history of the New China,” said one of the sources, who has ties to the leadership, requesting anonymity to avoid repercussions for speaking to the foreign media about elite politics. The government has yet to make any official statement about Zhou or the case against him and it has not been possible to contact Zhou, his family, associates or staff for comment. It is not clear if any of them have lawyers. Xi ordered a task force formed in late November or early December to look into accusations against Zhou, sources have previously told Reuters. They have not said what the allegations were except that they were related to violating party discipline, official jargon for corruption. A third source with ties to the leadership said Zhou had refused to cooperate with investigators, insisting he was the victim of a power struggle. “Zhou Yongkang is tough and claims it’s political persecution,” the source said. Zhou rose through the ranks of China’s oil and gas sector before joining the elite Politburo Standing Committee in 2007, where as domestic
Xi confirms nation’s neutral stance on Ukraine The Chinese leader’s first visit to Germany saw the signature of 140 billion euros-worth of business deals
P
resident Xi Jinping said on Friday China would not take sides with the West or Russia over Ukraine, disappointing any hopes Beijing might add its weight to international pressure on Moscow for annexing Crimea. “China does not have any private interests in the Ukraine question,” Xi told a news conference with German Chancellor Angela Merkel. “All parties involved should work for a political and diplomatic solution to the conflict.” China has adopted a cautious response to the Ukraine crisis, not wanting to alienate its ally Russia or make comment directly on a referendum in which Crimea voted to join Russia, lest it set a precedent for restive regions of its own such as Tibet. In an U.N. Security Council vote earlier this month on a draft resolution to condemn the Moscow-backed referendum in Crimea, China’s abstention effectively isolated Russia. “If I were Russia, I would not be satisfied with the number of votes in favour of Russia,” said Merkel, who despite her country’s close trade ties with Moscow and heavy reliance on Russia gas exports has backed European Union and U.S. sanctions. The chancellor, who has tried to
use her influence on Russia President Vladimir Putin to de-escalate the crisis, called the U.N. vote a clear sign “that the international community is not very happy with what Russia has done”. China has signalled understanding for Russia’s position, saying what is happening “has historical reasons”. Chinese state media has also expressed sympathy for Moscow.
Delicate diplomacy But China has also said it wants to develop “friendly cooperation” with Ukraine. Its foreign ministry said this week Beijing would play a “constructive role” on international financial aid for Ukraine, though it stopped short of saying whether Beijing would participate directly. “We support the constructive efforts the international community has made to de-escalate the situation and are open to any concepts which serve to calm the situation and to bring about a political solution,” Xi said in Berlin. “The Chinese side always respects the principles of international relations and non-intervention in the internal business of other states,” he said. The Chinese leader’s first visit to Germany since becoming president
last year saw the signature of business deals that will add to bilateral trade that was worth about 140 billion euros last year. But business considerations did not prevent Merkel from publicly raising China’s patchy record on human rights and free speech with the visiting president. “Broad and free expression of opinion is of course a very important element to promote the creativity of a society, be it in research, culture or civil society,” said the chancellor.
KEY POINTS President Xi says Beijing has no private interests in Ukraine China also ready to give financial aid to Ukraine Visit results in several business deals for Germany