Posts tagged ‘Wen Jiabao’

09/03/2013

* Some Chinese Seek a Divorce to Avoid Real Estate Tax

NYT: “When the Chinese government announced new curbs on property prices this month, homeowners bombarded social networking sites with complaints. They formed long lines at property bureaus to register to sell their homes before the restrictions went into effect.

And some couples went even further: they filed for divorce.

Divorce filings shot up here and in other big cities across China this past week after rumors spread that one way to avoid the new 20 percent tax on profits from housing sales was to separate from a spouse, at least on paper.

The surge in divorce filings is the latest indication of how volatile an issue real estate has become in China in the past decade and how resistant people are to additional taxes.

Worried that housing prices are spiraling out of control and threatening social stability, the central government regularly rolls out measures aimed at damping demand and weeding out speculators.

Then home buyers, sellers, property developers and even local governments — which are typically heavily dependent on land sales for income — try to find ways to get around the restrictions.

“They always do this,” said Du Jinsong, a property analyst in Hong Kong for Credit Suisse. “When they implement new measures, people are always trying to circumvent the rules.”

China’s housing market has been one of the prime engines of economic growth in the past decade, and recently a sharp upturn in prices has reignited fears about inequality and a housing bubble.

On March 1, just days before the opening of China’s annual legislative session, the powerful State Council, which is led by Prime Minister Wen Jiabao, announced a series of new property measures that analysts say unsettled the housing market.

In its statement, the State Council, or cabinet, said that local governments should strictly enforce an earlier rule that ordered people selling a secondary home to pay a 20 percent tax on the profit.

Almost immediately, housing administration bureaus and real estate trading centers in big cities were flooded with people hoping to sell their apartments before the restrictions took effect. (Most local governments have not yet announced a deadline.)”

via Some Chinese Seek a Divorce to Avoid Real Estate Tax – NYTimes.com.

05/03/2013

* China Internet Executives Get a Seat at the Table in Beijing

WSJ: “Between questions of censorship, laws that require complicated listings in U.S. markets, and fierce and often public confrontations between companies, China’s Internet industry has always had an uncomfortable relationship with the government.

So it’s no small thing that this year, for the first time, the government took special steps to ensure more representatives from the industry could join China’s rubber-stamp parliament, the National People’s Congress, and its advisory body, the Chinese People’s Political Consultative Conference.

According to two people who were part of the consultation process to choose delegates, the change primarily reflects the government’s recognition that leaders of the relatively new industry can be counted among China’s most important business leaders. In August, the United Front Work Department, the branch of the party in charge of bringing in useful people who are not party members to cooperate with the party, held a meeting attended by representatives from about 20 of China’s most important Internet companies, according to a person who attended. At the meeting, the representatives were asked about issues facing the industry, what leaders they thought should be nominated and also what other people should be consulted, according to the person.”

via China Internet Executives Get a Seat at the Table in Beijing – China Real Time Report – WSJ.

03/03/2013

* A push for change in China as new leaders take the helm

Reuters: “For Chen Qiuyang, the new Chinese leadership that formally takes over this month can radically improve her life by doing just one thing: providing running water in her village in a remote corner of the northwestern province of Gansu.

Chief of China's Communist Party Xi Jinping is seen in a picture during a visit in Yuangudui village, Gansu Province February 12, 2013. Communist Party chief Xi Jinping, who takes over as China's new president during the annual meeting of the legislature beginning on March 5, visited Yuangudui in February to highlight the poverty that still reigns in huge swaths of the country. Closing a yawning income gap is likely to be one of the policy priorities of his administration and the impoverished villagers are fully conscious of the inequality plaguing China, even if some of them had never heard of Xi Jinping before he showed up in town. Most young people have left for the provincial capital of Lanzhou, where they can make 1,000 yuan ($160) a month, more than the average village income of 800 yuan a year. Picture taken on February 12, 2013. REUTERS-Carlos Barria

“We have to carry water from the well on our shoulders several times day. It’s exhausting,” Chen, who looked older than her 28 years, said in Yuangudui village, resting on a stool outside her home after completing another trip to the well.

Communist Party chief Xi Jinping takes over as China’s new president during the annual meeting of parliament beginning on Tuesday and bridging the widening income gap in the vast nation is one of his foremost challenges.

Xi has effectively been running China since assuming leadership of the party and military – where real power lies – in November, and has already projected a more relaxed, softer image than his stern predecessor Hu Jintao.

But there will be pressure on him to tackle problems accumulated during Hu’s era like inequality and pervasive corruption, which have given rise to often violent outbursts in the world’s second-biggest economy, sending shivers through the party.

Outgoing Premier Wen Jiabao will likely address these issues in his last “state of the nation” report at the National People’s Congress to nearly 3,000 delegates, whose ranks include CEOs, generals, political leaders and Tibetan monks – as well as some of China’s richest businessmen.

China now has 317 billionaires, a fifth of the total number in the world, and is on track to overtake the United States as the largest luxury car market by 2016.

Yet the United Nations says 13 percent of China’s 1.3 billion population, or about 170 million people, still live on less than $1.25 a day.

While parliament is a regimented show of unity that affirms rather than criticizes policies, income redistribution is likely to be a hot topic, along with other issues like ministry restructuring, corruption and the environment.

In January, the State Council, or cabinet, issued a new fiscal framework designed to make rich individuals and state corporations contribute more to government coffers and strengthen a social security net for those at the bottom.

But tackling China’s wealth gap will need more than just taxes. Analysts say state-owned enterprises will have to be privatized and the household registration, or hukou, system that prevents migrants from enjoying the benefits of urban citizens, will have to be dismantled.

“Fiscal reforms and changes to let private firms advance and the state retreat will decide whether this round of reforms can succeed,” said Xia Bin, an economist at the cabinet think-tank Development Research Centre and a former central bank adviser.

“There is definitely no way out,” he wrote in the latest edition of China Finance, a magazine published by the central bank.

via A push for change in China as new leaders take the helm | Reuters.

02/02/2013

* China’s Environmental Protection Racket

WSJ: “Beijing’s choke-inducing air – which blanketed the city for nearly a week before being cleared away by a bout of sorely-needed wind on Friday — prompted Premier Wen Jiabao to call for action to protect the environment and public health.

If the premier and his colleagues can see through the smog on the policy front, they might consider something that has been all but overshadowed by the capital’s plight: the sorry track record of the environmental watchdog in little Nantong in east China’s Jiangsu province.

The problems in Nantong are a tale of environmental protection gone seriously wrong in a country where money clearly talks. They may also be small but critical components of an increasingly toxic environment.

According to a series of newspaper reports, online versions of which appear to have vanished into the country’s not-so-thin air, more than 30 environmental and other officials from the Nantong area were implicated in a scandal that involves bribery and turning a blind eye to pollution problems. Thanks to the reporting of the Shanghai-based China Business News (in Chinese here and here), it’s now fairly clear that Nantong environmental officials were running something closer to an environmental protection racket.

The newspaper, which had been following the story since the summer of last year, reported earlier this month that the scandal had reached the highest level of the local environmental protection bureau. Contacted by the Wall Street Journal, an official with the Nantong Environmental Protection Bureau was unable to elaborate beyond the official posting on the Nantong discipline inspection committee’s website, which stated that former bureau director Lu Boxin was found guilty of accepting bribes and sentenced to 12 years in prison (in Chinese).

This brief report, posted under the banner headline of “Study the Spirit of the 18th Communist Party Congress, Promote and Deepen the Anti-corruption Campaign and the Building of Clean Government,” said that the bribes were taken on more than one occasion.”

via China’s Environmental Protection Racket – China Real Time Report – WSJ.

See also: https://chindia-alert.org/economic-factors/greening-of-china/

30/12/2012

* Chinese state secrets revealed: Details of leaders’ families

Is this the first signs of China’s ‘glasnost’?

Straits Times: “China’s top two leaders have revealed photographs and details of their families, breaking a long-held taboo where such information is considered a state secret.

A picture taken in 1988 shows a young Mr Xi (above), then the secretary of the&nbsp;Ningde Prefecture Committee of the Communist Party, participating in farm work&nbsp;during a visit to the countryside in Fujian province. -- PHOTO: XINHUA<br />

In a surprise move, clearly aimed at boosting their public support, the official Xinhua news agency released previously unpublished photographs of Communist Party chief Xi Jinping and incoming premier Li Keqiang late on Sunday night.

It also carried lengthy profiles that chronicled their careers from early grassroots days up to their recent activities since taking over the helm of the Communist Party last month.

But what struck observers most was the information on the pair’s families, including what is believed to be the first mention in state media of the name of Mr Xi’s daughter.”

via Chinese state secrets revealed: Details of leaders’ families.

30/12/2012

* China Pledges Rural Reforms to Boost Incomes, Consumption

Another angle on narrowing the wealth gap.

Bloomberg: “China said it will better protect farmers’ land rights and boost rural incomes and public services to help narrow the divide with urban areas.

China Pledges Land Reforms to Boost Incomes as Wealth Gap Grows

A farmer works in a field in Pinggu, on the outskirts of Beijing. Photographer: Tomohiro Ohsumi/Bloomberg

The government will increase agricultural subsidies and ensure “reasonable returns” from planting crops, the official Xinhua news agency reported on Dec. 22, citing an annual work conference to set rural policy.

The goals, which include increasing rural incomes by at least as much as those in urban areas, reflect a new leadership’s focus on reforming the land system and addressing wealth disparities as it encourages migration into towns and cities to boost consumption. Li Keqiang, set to take over from Wen Jiabao as premier in March, is championing urbanization as a growth engine.

“A completely new policy approach is emerging under Li Keqiang,” said Yuan Gangming, a researcher in Beijing with the Chinese Academy of Social Sciences. “It’s about giving farmers a bigger share from land deals, it’s about changing local governments’ reliance on revenues from land, and it’s ultimately about a fairer system of sharing China’s economic growth.”

Yuan said he expects the government to be appointed in March to announce “a slew of policy initiatives” from changes to the household registration, or hukou, system to trading in land-use rights as part of Li’s urbanization drive.

The Shanghai Composite Index closed up 0.3 percent. Some Asian markets are closed today, while trading hours are restricted in some others.”

via China Pledges Rural Reforms to Boost Incomes, Consumption – Bloomberg.

05/11/2012

* China authorities pushing happiness amid rising discontent

It was the tiny mountain kingdom of Bhutan that started the notion of a Gross Happiness Index. UK’s Premier Cameron had a brief stab at tit. And now the world’s most populous country is having ago.  Maybe it will be taken seriously in due course!

SCMP: “With dissatisfaction growing over corruption, inequality, food safety and numerous other social problems, mainland authorities are shifting their focus from economics to emotions.

Simply put, they want everyone to be happy.

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From Beijing to Ningxia, local, provincial and regional leaders have been setting up “happiness indexes” or otherwise tailoring programmes, projects and policies to increase people’s satisfaction with their lives, as well as, of course, with the government.

Eighteen provinces and more than 100 cities have jumped on the happiness bandwagon in recent years, according to a report in Beijing News last week.

The campaign has helped the Communist Party set the stage for its 18th national congress, which opens this week amid increased incidents of social unrest.

While most analysts welcome the increased focus on people’s welfare, some caution that happiness is hard to measure and suggest the party would be better off advancing concrete policies for social change.

The public has been less forgiving, mercilessly ridiculing the policy on the internet.

“Without a constitutional government and democracy, a ‘Happy China’ will only be a fable,” said Professor Hu Xingdou, who is a commentator at the Beijing University of Technology.

“There are so many things that the authorities could do to improve the public’s satisfaction, such as protecting civil rights, building a democratic country, fighting corruption, stopping illegal land grabs and cutting taxes.”

Reform-minded Guangdong party secretary Wang Yang became perhaps the most prominent – and widely mocked – proponent of the public satisfaction drive last year when he outlined his proposal for a “Happy Guangdong” province.

As part of the plan, Wang allocated 423 billion yuan (HK$521 billion) for projects to improve people’s livelihood. He said he would attempt to reduce the province’s gross domestic product growth from a breakneck 12.5 per cent to a more manageable level of 8 per cent.

To measure his success, Wang set up an index of individual economic indicators, including employment, income, education, health care, crime, housing, infrastructure, social security and the environment.

But Wang was hardly the first to try out such a scheme. His now-disgraced rival, former Chongqing boss Bo Xilai, also pledged to slow the local growth rate after his city was named the mainland’s happiest in 2010.

In Beijing, local propaganda authorities even aired a seven-episode television series in August offering advice to those who are unhappy.

In it, a professor with a psychology degree from Harvard University instructed people on how to find their inner peace, rather than find fault with the government.

Jiangyin city, Jiangsu province, had one of the earliest satisfaction drives. The local government set up its happiness index in 2007, promising to improve the city’s employment, income, public safety and heath care, as well as reducing pollution.

The programme has been a rousing success, if you believe the government’s survey. Within three years, Jiangyin found that 95.87 per cent of its residents felt happy.

Professor Xu Guangjian, of Renmin University’s School of Public Administration and Policy, said he had not seen a single regional government that had been able to convincingly survey the public’s level of happiness. “The factors behind unhappiness are obvious,” he said.

Surveys conducted by Guangdong’s newspapers and government think tanks suggest the main source of most people’s gripes is the government, with many pointing to failures in job creation, social welfare, medical services, housing, pollution, food safety and soaring prices.

And there may be a new source of public dissatisfaction: satisfaction drives.

“It’s very difficult to measure happiness and there’s a subtle growing dislike of the authorities’ overwhelming happiness campaigns,” said Professor Xing Zhanjun, of the Centre for Quality of Life and Public Policy at Shandong University. “The public is starting to mock the word these days.”

Nonetheless, central government authorities have been eager to extend the policy. Many local governments picked up the satisfaction agenda after Premier Wen Jiabao made happiness and human dignity central elements of his 2010 work report.

In the run-up to the party congress, China Central Television (CCTV) has been running a series of segments for it which it conducted 3,500 man-on-the-street interviews in an attempt to measure the mainland’s “gross national happiness”.

Many have dismissed the series as superficial. CCTV reporters simply ask people whether they are happy and an overwhelming majority answer “yes”.

But the segments have not been without their enlightening moments, such as when a reporter pulled one interviewee out of a queue. “I am unhappy because when I answered your question, I lost my place in the queue,” the person said.

Professor Steve Tsang Yui-sang, director of the University of Nottingham’s China Policy Institute, said Beijing, if it were truly serious about reform, would appoint independent research institutes to survey main obstacles to happiness.

“It can cost as little as several hundred thousand yuan and would be much cheaper than CCTV’s street survey with some 70 camera crews,” Tsang said.”

via China authorities pushing happiness amid rising discontent | South China Morning Post.

05/11/2012

* Premier Wen Jiabao calls for party probe into claims of family’s ‘hidden fortune’

Premier Wen is showing his true colours as a reformist and someone who believes that he is ‘clean’. Let’s hope the results of the investigation are made public so that we can all see how his family grew their fortune however vast or meagre.  This act also shows that he would dearly love to have the long-overdue “sunshine law” – which would require a public declaration of family assets by senior leaders – be finally put into effect.

SCMP: “The communist party leadership has launched a probe into the alleged family wealth of Wen Jiabao at the premier’s request, according to sources.

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In a letter submitted to the Politburo Standing Committee, the party’s top decision-making body of which the premier is also a member, Wen asked for a formal inquiry into claims made by The New York Times.

A report on October 26 alleged his family had amassed at least US$2.7 billion of assets during his premiership. The Standing Committee had agreed to his request, the sources said.

It is unclear what the inquiry is likely to dig up, or when the results will be published, if at all.

The probe is expected to focus on the family’s alleged shares in Ping An, one of the mainland’s largest insurance companies.

The Times report, citing regulatory filings and corporate documents, said that in 2007 Wen’s family had a US$2.2 billion stake in Ping An.

It also alleged Wen’s 90-year-old mother had US$120 million of shares in the company.

According to the sources, several conservative party elders known to dislike the premier’s more liberal stance have urged him to provide detailed explanations on all the major allegations in the Times report, especially on the Ping An holdings.

Businesswoman Duan Weihong, whose company Taihong was described by the Times as the investment vehicle for the Wen family, told the newspaper she used the names of Wen’s relatives to register the ownership of the Ping An shares.

The party elders argued that this process, which would require registering their official ID numbers and obtaining their signatures, raised immediate questions about how Duan could obtain such personal details without consent from the Wen family.

Wen’s wife and his son have been plagued by corruption allegations for years.

But the family issued a statement, through two lawyers, for the first time on October 27, hitting back at the Times allegations about their “hidden riches” and threatening legal action.

It is unclear whether the family will publish further clarifications or go to the courts.

It is also understood the party elders were “unhappy” about the fact that major overseas Chinese websites – which usually swoop on negative news about the mainland’s top leaders – have carried a barrage of articles supporting Wen, quoting sources close to his family.

According to their reports, Wen had seized the opportunity to demand that a long-overdue “sunshine law” – which would require a public declaration of family assets by senior leaders – be finally put into effect.

He also said he would be happy to make public his family’s assets.

This would appear to be more than just an attempt by the image-conscious outgoing premier to defend his name, analysts say.

They say it shows he is keen to use the inquiry as one last chance to push forward the long-stalled “sunshine law”. Professor Zhu Lijia, of the Chinese Academy of Governance, said: “It is a ground-breaking step towards greater government openness and transparency.””

via Premier Wen Jiabao calls for party probe into claims of family’s ‘hidden fortune’ | South China Morning Post.

03/11/2012

* From lawyer to leader, Li Keqiang will be best-educated leader yet

For 20 years, the top Chinese leaders were mostly engineers (or scientists).  The president-to-be is Xi Jinping is a chemical engineer by training; and the Premier-to-be Li Keqiang holds postgraduate degrees in law and economics. We shall soon see who are the other members of the central committee of the Politburo and what are their backgrounds. But I am certain engineers will not be in the majority. If I am correct, then as nothing significant in China happens by accident, the shift from engineers to a wider set of backgrounds probably means a shift from concentrating on infrastructure and engineering-oriented enterprises to wider investments and concerns.

South China Morning Post: “The next premier is likely to be the best educated since the founding of the People’s Republic of China, with Vice-Premier Li Keqiang , who holds postgraduate degrees in law and economics from prestigious Peking University, due to succeed Premier Wen Jiabao in March.

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At university, Li studied the ideas of leading British judges and mixed with democracy advocates, leading some to hope his premiership will herald significant political change in the world’s last major communist-ruled nation.

Li is the first senior central government leader to hold a PhD in economics and master’s and bachelor’s degrees in law, all earned at a university that was a hotspot of dissent, and his liberal studies background contrasts strongly with the engineering backgrounds of those who have run China recently.

A member of the first group of students admitted to university after late paramount leader Deng Xiaoping ordered the resumption of the university entrance exam in 1977, following the chaos of the Cultural Revolution, Li studied law under Professor Gong Xiangrui , an expert on Western constitutional law who had studied in Britain in the 1930s. Li followed that with a PhD in economics under Li Yining , the mainland’s market reform guru.

Kerry Brown, head of the Asia programme at the Chatham House think tank in London, said Li was the first lawyer to become a member of the party’s supreme Politburo Standing Committee and he would be the first lawyer to become premier.

“He typifies the new leaders inasmuch as he is not a technocrat, has a PhD from Peking University and had a long period of training in the provinces before elevation to executive vice-premier in 2008,” Brown said.

Li is one of the few top leaders fluent in English, surprising observers during a visit to Hong Kong last year when he broke with protocol and addressed an event at the University of Hong Kong in English. His wife, Cheng Hong, is a linguistics professor and an expert on American literature who has translated several modern American works into Chinese.

Brown praised Li for having an engaging public manner, something he said was shown in Li’s visit to Hong Kong last year.

“He is not afraid of using English in public, though the heavy treatment of protesters and journalists at the time caused much criticism,” Brown said.

Most of China’s leaders over the past couple of decades have been engineers-turned-bureaucrats, trained in an education system heavily influenced by the Soviet Union.

But 57-year-old Li, like many of his contemporaries, brings a markedly different mindset to the problems facing the nation.

via From lawyer to leader, Li Keqiang will be best-educated leader yet | South China Morning Post.

See also: https://chindia-alert.org/2012/02/18/chinese-leadership-are-mostly-engineers/

28/10/2012

* Chinese Premier’s Family Disputes Article on Riches

It will come as no surprise to Chinese citizens that Mr Wen and his family are very rich. They expect it of their leaders. It has always been thus. What will surprise many of them is the enormous scale of the wealth. This then will raise the thought as to whether other leaders are also enjoying such largesse which – at the end of the day – comes from the pockets of the hard working citizens.

NY Times: “Two lawyers who said they represented the family of Prime Minister Wen Jiabao of China have issued a statement disputing aspects of a New York Times article about the family’s wealth, a rare instance of a powerful Chinese political family responding directly to a foreign media report.

The statement, published in The South China Morning Post on Sunday, said, “The so-called ‘hidden riches’ of Wen Jiabao’s family members in The New York Times’s report” did not exist.

After criticizing several points in the article, the statement hinted at the possibility of future legal action. “We will continue to make clarifications regarding untrue reports by The New York Times, and reserve the right to hold it legally responsible,” the statement said.

The statement reported in The Post, a Hong Kong newspaper, has not been obtained directly by The Times.

The statement was not a sweeping denial of the article. The statement acknowledged that some family members were active in business and that they “are responsible for all their own business activities.”

While the statement disputed that Mr. Wen’s mother had held assets, it did not address the calculation in the article that the family had controlled assets worth at least $2.7 billion.”

via Chinese Premier’s Family Disputes Article on Riches – NYTimes.com.

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