China
Difficult times for China’s political elite
Author: Ryan Manuel, Official China Ltd.
In Zhongnanhai, the Beijing compound where China’s Communist Party leaders reside and conduct business, 2019 was a bad year. The trade war with the United States dragged on — an accountability issue for President Xi Jinping who’s responsible above all for foreign policy. Despite common perceptions that he’s an autocrat with a totalitarian’s attitude to power and a bureaucrat’s attention to detail, Xi couldn’t easily get his cabinet to sign off on the US–China trade deal. The proposed text fell apart amid bitter debate about whether it was sufficiently nationalist.
Xi’s strategy of using others to negotiate issues while personally staying above the fray failed. For months, China’s lead trade negotiator was a vice minister of commerce. Meanwhile, back in Beijing, everyone deflected responsibility in order not to be blamed for the constant ups and downs of dealing with US President Donald Trump.
While this shows that China is less dictatorial than outsiders may think, it also reflects Xi’s 2020 dilemma. He wants a deal done but cannot be seen as weak. He wants to make China more self-sufficient but needs access to foreign technologies to make that happen. The unusual events of the past few years, which saw China become the primary proponent of an international order it didn’t establish, are therefore likely to continue into 2020.
Xi is a realist and he and his fellow leaders have already presented themselves as facing a ‘difficult international environment’ in their assessment of the year — led by foreign reactions to Chinese domestic political events. There is increasing international outrage over China’s policies in Xinjiang where it was estimated that over one million Uyghurs were detained. The leak of documents on Xinjiang to The New York Times by a ‘concerned official’ was the most authoritative such release in decades. There’s likely to be increased pressure on Xi from international bodies, although much of the outrage that comes through modern social media is filtered by China’s Great Firewall.
There has been the flood of stories about Chinese influence overseas — especially activities involving the nebulous United Front. Expect these too to increase in the year ahead. The case of Chinese telecommunications giant Huawei sent shivers through overseas business communities. The arrest of a Huawei senior executive in Canada on an American warrant was followed by the detention of two Canadian citizens in China.
The ongoing protests in Hong Kong remain a weeping sore that Beijing is unlikely easily to be able to salve. Hong Kong remains essential to Beijing’s future plans, acting as both an international arbitration centre and the prize regional stock exchange.
The ‘difficult international environment’ makes it is easy to miss the changes taking place in China’s domestic politics.
Xi’s signature anti-corruption drive continued its sweep, adding rules that make it easier to remove officials for perceived incompetence and lack of obedience to ideological norms rather than just for graft. This is Xi’s way: he changes rules within the Chinese Communist Party and then uses China’s legal system to ensure that the public service — 80 per cent of whom are Party members — is also bound by Party rules.
A central preoccupation is Xi’s fear that local leaders do not follow central command and, therefore, that he should centralise power and put his own name and face onto reforms. He has changed how leaders are held accountable, adding a system of personal accountability to the previously inviolable rule of collective decision making. Rather than the public not knowing who made a decision and passing the blame onto a committee, Xi is making individuals responsible for decisions.
He has also extended the Party’s reach over grassroots local politics — shrinking the scope of local leaders to run their own affairs. His annual meeting of Party leaders, the Fourth Plenum of the 19th Congress of the Party Central Committee offered few new reforms as almost all of the heavy lifting had already been done through Xi’s rule changes.
The Chinese economy remains a source of worry. Domestic debate rages over whether China should accept a lower and more sustainable growth rate or whether it should push on for the targeted 6 per cent GDP growth. Last year saw the pork crisis and fears of rapidly rising food prices. The direction of fiscal policy is confused as local governments deal with conflicting messages about whether…
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
- China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
- How a scandal over sanitary pads is shaping feminist activism in China
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