09/09/2019
- Merkel makes the case on sensitive issues in Beijing without being offensive, observer says
German Chancellor Angela Merkel (centre) talks to staff at manufacturer Webasto during a visit in Wuhan on Saturday. Photo: EPA-EFE
German Chancellor Angela Merkel may be slowly declining in influence in European politics but she remains the EU’s strongest voice in dealing with China, analysts said after her latest trip to China last week.
During the two-day visit, Merkel and Chinese President Xi Jinping discussed the sensitive topic of Hong Kong and the social credit system in China.
German diplomats also averted a plan by Chinese officials to scrap a joint press conference by Merkel and Chinese Premier Li Keqiang out of concerns that it could be dominated by questions about the escalating protests in Hong Kong.
Two sources told the South China Morning Post that the Chinese side initially suggested not letting journalists ask questions during the press conference. German diplomats persisted, saying that Merkel would hold her own press conference to take media questions, the sources said.
Germany’s Angela Merkel renews call for peaceful resolution to Hong Kong protests
After talks with the Chinese president and premier, Merkel said Beijing had listened to her views about resolving the Hong Kong conflict without violence, adding: “This is important.”
She said she also pressed the European Union’s position that the Sino-British Joint Declaration on Hong Kong remained effective, countering Beijing’s assertion that the 1984 document has ceased to be valid.
“Merkel navigated the narrow line to raise these sensitive issues without being overly offensive,” said Jan Weidenfeld, of the Berlin-based Mercator Institute for China Studies.
Joerg Wuttke, president of the EU Chamber of Commerce in China, said Merkel’s biggest achievement was to raise the issue about the social credit system in China, a policy that aims to rank every individual and corporate entity based on their compliance with state-stipulated social norms.
“It is important to us that she makes the Chinese leadership aware that the German business community would like to get better briefed and prepared for this major change in company compliance by the Chinese authorities,” Wuttke said. “Merkel was the first foreign leader to do so.”
Despite Merkel’s tough approach, China’s foreign ministry was full of praise for the German leader’s visit, saying both sides were “satisfied” with the outcomes.
“This is Chancellor Merkel’s 12th China visit, so she should be one of the Western leaders who visited China the most times and knows China the best,” ministry spokeswoman Hua Chunying said on Monday.
Hong Kong is a matter for China, Premier Li Keqiang tells Angela Merkel
Back home, however, German media and businesses remained sceptical about the future.
Bild, the country’s biggest-circulation newspaper, has been following closely the arrest of Hong Kong pro-democracy activist Joshua Wong Chi-fung, who was detained at Hong Kong airport on his way to Berlin at the newspaper’s invitation. Wong was later cleared to travel abroad.
Several newspapers have put pressure on Merkel to speak out for Hong Kong, with one calling on her to replace a stop in mainland China with one in the former British colony, which she refused.
On the business side, German businesses also urged Merkel to caution Beijing against sending troops to Hong Kong out of concerns that the lucrative Chinese market would become subject to international sanctions.
Another concern is the slow pace of structural reforms that would open up Chinese markets to foreign businesses.
Source: SCMP
Posted in Angela Merkel, averted, Beijing, Berlin, Bild, China alert, Chinese leadership, Chinese premier Li Keqiang, Chinese President Xi Jinping, Europe, European Union, former British colony, German business community, German Chancellor, German diplomats, Hong Kong, Hong Kong airport, Joshua Wong Chi-fung, Mainland China, Mercator Institute for China Studies, Sino-British Joint Declaration on Hong Kong, social credit system, south china morning post, strong voice, Uncategorized, views, Webasto, Wuhan |
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22/02/2019
- Firms in Jiangsu and Guangdong provinces top the list of new additions to blacklist in 2018
- Bogus advertising, illegal activities in property industry, substandard health care products and P2P lending fraud are typical cases
A real property agent checks a property advertising board in Beijing. According to a report by the Chinese government, property brokerages are among the country’s least scrupulous group of firms. Photo: Agence France-Presse
China’s wealthiest regions also have the largest number of untrustworthy businesses, according to the government’s social credit system, which rates citizens and companies based on their behaviour.
Jiangsu, the country’s second largest provincial economy – 9.26 trillion yuan (US$1.37 trillion) – accounted for 16.7 per cent of the discredited businesses that were added to the national blacklist last year, more than any other region.
According to a report compiled by the National Public Credit Information Centre that is backed by China’s state planner, the National Development and Reform Commission, Guangdong is next in line.
Guangdong is China’s most prosperous province, Guangdong, but is also home to 12.77 per cent of the total 3.59 million blacklisted firms. The southern province had a gross domestic product of 9.73 trillion yuan last year.
In third spot was Zhejiang, the prosperous province just south of Shanghai, while the capital city of Beijing was ranked fifth. These places together contributed slightly more than 30 per cent of China’s gross domestic product (GDP) last year.
By naming and shaming the millions of Chinese businesses and individuals on the annual blacklist, Beijing hopes to boost “trustworthiness” in Chinese society. Under the system, each of its 1.4 billion citizens is expected to receive a personal trustworthiness score.
“In more developed coastal provinces, businesses have long operated in the grey area between emerging China and established Hong Kong,” said Brock Silvers, managing director of Kaiyuan Capital, a Shanghai-based financial advisory firm.
Silvers said the situation evoked the Chinese saying: “Heaven is high and the Emperor is far away”, which alludes to local officials’ tendency to disregard central government’s directives.
While it was previously not such a faux pas to engage in “untrustworthy” behaviour in attaining economic development, things are now different.
China’s social credit system shows its teeth, banning millions from taking flights, trains
“The ability to cut corners in search of profit isn’t as prized in China’s modern economy, and many of those old traits can now lead companies to be added to Beijing’s blacklist,” Silvers said.
Among the firms named in the hall of shame is Chuangyue Energy Group, from northwest Xinjiang, which topped the list of new cases involving at least 500 million yuan in fraudulent activity.
Chuangyue and its legal representative Qin Yong were reprimanded by the Shenzhen Stock Exchange in 2016 for failing to disclose transactions on time. The transaction involved changes to the shareholding structure of a listed firm in which Chuangyue held interest in, state media reported.
Also on the list was property developer Zhonghong Holding, which was delisted from the Shenzhen exchange late-last year after its shares fell below the par value of 1 yuan for 20 consecutive days.
Zhonghong had posted massive losses, failed to repay loans and halted development projects during 2018.
A typical area of fraud cited in the report was bogus advertising, with the biggest number of discredited companies located Shanghai, China’s most commercial city.
Property brokerage was a hotbed industry for fraudsters. The report named and shamed two agents in Wuhan, An Yi Real Estate Brokerage and Hong Run De Real Estate Brokerage, which Chinese netizens described as “black brokers”.
In one case, Hong Run De subdivided one flat to lease without the owner’s knowledge and consent. To terminate the contract, the owner had to pay “compensation” of 30,000 yuan before they could reclaim the flat.
Other dodgy sectors were health care product makers and peer-to-peer (P2P) lending platforms.
Quanjian Group, a maker of herbal medicines, was accused of making false marketing claims about the benefits of a product that a four-year-old cancer patient drank.
Health care companies are among the worst performing in China, according to a report on the country’s social credit index. Photo: Agence France-Presse
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Changsheng Bio-Technology, the major Chinese manufacturer of rabies vaccines, was fined US$1.3 billion in October after it was found to have fabricated records.
A total of 1,282 P2P operators, more than half located in Zhejiang, Guangdong and Shanghai, were placed on the blacklist because they could not repay investors, or were involved in illegal fundraising.
While more individuals and companies were added to the blacklist, others were also removed – 2.17 million. Those removed had paid taxes owed or fines imposed.
Source: SCMP
Posted in An Yi Real Estate Brokerage, Beijing, black broker, Brock Silvers, cancer patient, Changsheng Bio-Technology, China alert, Chinese manufacturer, Chuangyue Energy Group, dodgy firms, faux pas, Guangdong, Heaven is high and the Emperor is far away, herbal medicines, Hong Run De Real Estate Brokerage, Jiangsu, Kaiyuan Capital, National Public Credit Information Centre, netizens, Qin Yong, Quanjian Group, rabies vaccines, richest provinces, Shanghai, Shenzhen, social credit system, Stock exchange, Uncategorized, Wuhan, Xinjiang, Zhejiang, Zhonghong Holding |
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