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Category: East Asia
China orders financial support for battered property sector
The Chinese government has urged banks and financial institutions to back a sputtering real estate sector where the biggest developers have buckled under the weight of tremendous debt and don’t have the capital to complete pre-sold homes to hundreds of thousands of homebuyers. The move underscores Beijing’s dilemmatic position of having to defuse local government debt risks while pumping capital into the real economy to prop up growth. The property sector is particularly precarious not only because it is a major growth driver, but the housing issue is closely tied to social stability. Authorities told financial institutions that they need to support “reasonable” fund-raising requirements for developers that are “operating normally,” according to a report from the official Xinhua news agency Friday. The report added that capital raised through credit, bonds and stock issuance has paid off in helping stabilize the real estate market, citing a meeting organized by the central bank, the People’s Bank of China, foreign exchange and stock regulators, the State Administration of Foreign Exchange and the China Securities Regulatory Commission. The meeting was also attended by officials from the two stock exchanges, policy banks and 18 national commercial banks, five asset management firms and four of the country’s biggest stockbrokers. There is no official tally of the extent of debt chalked up by property developers. China Evergrande is the world’s most indebted developer with more than US$300 billion in liabilities. It defaulted on its debt two years ago and has yet to come up with a repayment plan. At the end of October, a Hong Kong High Court judge gave the Hong Kong-listed company until Dec. 4 to come up with a plan when a winding-up hearing will be heard. Evergrande is not alone. Country Garden and Sunac are also in hot soup. The crisis is more pronounced in tier-two cities or below, where most of the 841 demonstrations against property developers since January 2022 to date have occurred, based on data from Freedom House’s China Dissent Monitor. Most of them were staged by homebuyers demanding delivery of their properties with a smaller proportion of construction workers seeking salary payments. Implications of property woes China’s property crisis is a growing concern and a drag on the broader economy – the financial wellbeing of local governments, where traditionally, land sales for real estate projects are a huge contributor to their revenues. These governments are already under pressure from the cracks of local government fund vehicles that are issued to fund infrastructure like roads and airports but have not generated enough returns to cover their obligations. And massive debts piling up are also fueling concerns of a systemic financial crisis. The Central Financial Commission, the financial watchdog led by Premier Li Qiang, on Monday emphasized in a meeting the need to improve financial services that will help economic development. “It is necessary to comprehensively strengthen financial supervision, the responsibility of managing risks, coordination among departments, heighten control of the risk sources as they are diffused, and boost relevant reforms to improve prevention, warning and management mechanisms,” according to a separate Xinhua report citing a commission meeting that Li chaired. A woman rides a scooter past a construction site of residential buildings by Chinese developer Country Garden, in Tianjin, China August 18, 2023. Credit: Reuters Government debts are expected to account for 83% of China’s gross domestic product in 2023, up from 77% last year, according to data from the International Monetary Fund. The IMF’s Mission Chief for China, Sonali Jain-Chandra pointed out that more measures are needed to secure a recovery of the property market, which should include ways to accelerate the exit of troubled developers and greater central government funding for housing completion, following a visit to China early this month. According to analysts at Nomura, an estimated 20 million units of unconstructed and delayed pre-sold homes across the country are the biggest hurdle to turning the property crisis around, and about $440 billion will be needed to complete their construction, CNBC reported. In October alone, official data showed that the scale of unsold floor area for residential real estate soared by 19.7%, compared with October 2022. Funds raised by developers dropped 13.8% to 10.73 trillion yuan (US$1.48 trillion) in the first 10 months of the year. Domestic loans into real estate dropped 11% while foreign investments plunged 40.3% in the 10 months. The rating agency S&P Global has forecast China’s property sales to fall as much as 15% this year, with the drop to taper off to 5% for 2024. The continued property slump would hinder the post-COVID recovery of the world’s second-largest economy where real estate and its related industries make up about 30% of GDP. Beijing has also been ramping up measures to prop up the economy. It announced last month a 1 trillion yuan government bond issuance, which allows local governments to frontload part of their 2024 bond quotas. Indications for 2024 Investors and businesses are also watching out for more indications on Beijing’s macroeconomic direction for 2024 at next month’s annual Central Economic Work Conference. “I think they will continue to send similar signals as what we’ve seen in the past couple of quarters. That is, a high priority to supporting private consumption, fighting financial risks including from housing, continued fiscal support and continued support for the private sector and further opening-up,” said Allan von Mehren, China economist for Danske Bank. “It will be interesting to see if we get any clues about their growth target for 2024.” Von Mehren pointed out that there is speculation of a 5% target but he sees this as a “quite ambitious target as the base effects will be much less favorable compared to this year.” Beijing has set a growth target of around 5% for this year, which state media has touted this month to be within reach. Last month’s data show China’s recovery to remain uneven. While industrial output and retail sales were on an uptrend, the consumer price index, a gauge of inflation,…
North Korea cracks down on unregistered laptops and tablets
North Korean authorities are cracking down on people who use unregistered laptops and tablets to keep them from watching foreign “anti-socialist” videos, residents in the country told Radio Free Asia. Those caught with unregistered electronic devices will be punished as a spy, a resident of Ryanggang province told RFA Korean on condition of anonymity to speak freely. “From now on, laptops and tablets that are not registered with the government will be punished at the same level as with possession of small radios,” the resident said. “If you are caught secretly carrying a small radio, you will be punished as a spy, regardless of the reason.” The punishment awaiting those who might be caught wasn’t immediately clear, but RFA has reported various punishments for people caught consuming foreign media, including execution. Recent investigations into people who were found guilty of “anti-socialist acts” revealed that they were exposed to foreign media through the devices, he said. In recent years, memory sticks and SD cards containing South Korean and Western movies, TV shows and music have been smuggled into the country, usually from China, and secretly passed along from person to person. Authorities are taking the step because efforts to stop foreign media from flowing into the country have been ineffective despite serious punishments, the resident said. “Starting in 2020, there were very strong demands to voluntarily hand over South Korean movies, music, and illegal publications to judicial authorities, but no one actually did so voluntarily,” he said. “Cracking down on South Korean movies, music, and illegal publications will not be easy because they are easy to hide, but now laptops and tablets that can secretly play such materials are being targeted.” Streamlined process It’s the latest bid to exercise complete control over what types of information the public can access. The Ministry of Social Security ordered the head of every neighborhood watch unit to go to all the houses in the neighborhood to deliver orders that all laptops and tablets must be registered, and to receive a signature confirming that the resident has read and understood it. Because the government wants everyone to register their devices, the registration process has been streamlined, a second Ryanggang province resident said on condition of anonymity for security reasons. “In the past, desktop computers, laptops, and tablets were taken directly to the city and county social security department and post offices to be registered,” the resident said. “Now … you can go to the head of the neighborhood-watch unit and write down the date you came into possession of the computer, the route by which you took possession of it, the model, and the year it was produced.” About one-third of all households in most North Korean cities have tablets and laptops, even if they are older models, a former North Korean who escaped North Korea and settled in South Korea at the end of 2019, who requested anonymity for personal safety, told RFA. RFA was not able to confirm the exact percentage of North Korean residents who own unregistered laptops and tablets. Translated by Claire Shinyoung Oh Lee. Edited by Eugene Whong and Malcolm Foster.
Ongoing conflict in northern Myanmar kills 2, including child
Residents in northeastern Myanmar are facing both a humanitarian crisis and intense conflict, people living in the area told Radio Free Asia. On Sunday night, airstrikes by junta forces killed two people, including a child, in Shan state. Locals were caught off guard when a junta plane began an aerial attack on Myo Thit village in Namhsan township around 10 pm. It was unexpected because there had not been any fighting beforehand, said one local, asking to remain anonymous for fear of reprisals. “There is no fighting in Namhsan, but the aerial bombardment was carried out while people were sleeping,” he told RFA, adding that six women and two men were injured in addition to the two killed. “People died and houses were also burned.” The explosions damaged 23 houses in total. The bomb weighed roughly 500 pounds and killed Tar San Naw, as well as a child, when it landed on a house, according to a statement released by the Ta’ang National Liberation Army on Monday. The junta has not released any information about this attack and calls by RFA to Shan state’s junta spokesperson Khun Thein Maung went unanswered. Conflict in northeastern Shan state has intensified in the last two months, as an allied group of resistance armies took three major cities in Operation 1027 in late October. Earlier that month, the Ta’ang National Liberation Army attacked several junta convoys, causing their troops to retaliate. Since Oct. 10, nearly 30,000 internally displaced people have been sheltering in makeshift tents near the China-Myanmar border in Laukkaing township. A camp for internally displaced people in Laukkaing township on November 18, 2023. Credit: The Kokang Since Thursday, heavy rain has made life more difficult for those forced from their homes. After several days of rain, resources are becoming harder to find and people’s health is deteriorating, said a Laukkaing resident, who did not want to be named for security reasons. “They have been living in tents since before [the rain]. It is raining and they are not comfortable anymore. Most are workers from other areas, not residents,” he told RFA. “There are many people who came to work in Laukkaing from other areas. Water also became scarce in that camp.” Elderly people and children are also more prone to illness in the colder weather without blankets, he added. On Saturday, the camp’s water and electricity were cut off. The Myanmar National Democratic Alliance Army warned Chinese citizens in Laukkaing to return to China to avoid conflict in the region. They also told civilians to stay away from military camps and not to move around the area. All of Laukkaing’s roads and gates out of the city are blocked and locals are facing food shortages, residents also reported. Junta troops are not letting food or supplies into the city. After Operation 1027, battles between the military junta and the three northern allies have been continuing in eight townships, including Namhkan, Chinshwehaw, Nawnghkio, Lashio and Manton. Translated by RFA Burmese. Edited by Mike Firn.
New in North Korea: Hair loss products
Hair loss products are now for sale in North Korea amid an apparent uptick in the number of people struggling with thinning hair or going bald, experts in South Korea with knowledge of the country told Radio Free Asia. Examples of such products can be seen on the homepage of Foreign Trade of the DPRK, or the Democratic People’s Republic of Korea, the formal name of North Korea. But many of the treatments are too expensive for ordinary people – and may not be very effective, the experts said. A North Korean man waits outside a barber shop next to a poster with different types of hairstyles in Pyongyang in 2015. Credit: Wong Maye-E/AP North Koreans appear to be suffering from hair loss for a variety of reasons, said Choi Jeong Hoon, who worked as a doctor in the North before fleeing to the South. He is now a senior researcher at the Public Policy Research Institute at Korea University in Seoul. Some experience hair loss from the aftereffects of often life-threatening typhoid and paratyphoid fever, he said. “After suffering from these infections, hair loss is severe,” he said. Harsh chemical ingredients in soap and laundry detergent that North Koreans use to wash their hair also can cause hair to fall out because they can irritate the scalp, Choi said. “It is not easy to find mild chemical products in North Korea’s current situation,” he added. “Ordinary residents cannot afford to worry about hair loss.” Military caps Caps worn in the military – all able-bodied men are typically required to serve 10 years in the armed forces – may also damage one’s hair, said Ahn Kyung Soo, head of DPRKHealth.org, a blog on health issues in North Korea. Sweating while wearing the cap inhibits proper ventilation, leading to unpleasant odors and bacterial buildup that can clog pores, ultimately resulting in thinning hair, Ahn said. “When one goes into the military in North Korea, the environment is poor,” he said. “For example, there are testimonies even in South Korea that wearing a military cap causes hair loss.” A man undergoes a hair-restoration procedure at the Sinuiju Cosmetics Factory in the North Korean border city of Sinuiju in 2018. Credit: Ed Jones/AFP Hair loss treatments in North Korea are divided into pharmaceuticals and functional cosmetics, creating some consternation about which to choose, the experts said. Among the new products are Guritdae Hair Loss Tincture manufactured by Pyongchon Koryo Pharmaceutical Factory, which treats patchy and thinning hair and total hair loss that result from autoimmune disorders that attack hair follicles, causing hair to fall out. Then, there’s Hair Growth Tonic made by the Shinuiju Cosmetics Factory whose label says it’s effective for preventing premature hair loss and for promoting hair growth. Effectiveness questionable Though the products may contain ingredients that are believed to be good for hair or skin, it’s difficult to verify their efficacy as medicines, Ahn said. “North Korean medicines cannot actually be verified,” he told Radio Free Asia. Shinuiju Cosmetics Factory’s Hair Growth Tonic. Credit: Handout from Chosun Trade North Korean hair loss medicines are basically “oriental medicines” — topical tonics based on medicinal herbs, so their effect is likely to be minimal, said Choi. For example, users are to dip a pine needle-like brush into a glass bottle and apply it to the scalp to stimulate areas affected by hair loss, he said. But this might not do the trick because hair loss can be affected by male hormones and result from skin diseases, Choi said. “So, applying medicine on the affected part will not solve the problem,” he said. Some North Koreans associate a loss of hair, called bondae in Korean, with poverty. A public salon in Pyongyang, North Korea, in 2017. Credit: Ed Jones/AFP But at other times it has been viewed as a sign of wealth. “This perception has become entrenched because the so-called ‘major bondae’ pattern of hair loss is particularly prevalent among wealthy and powerful people, such as officials or representatives of companies that earn foreign currency,” Choi said. “It refers to the image of being greedy, having a lot of luck, and making a lot of money,” he added. Even in South Korea, until the 1980s and early 1990s, people didn’t think baldness looked bad, said Choi. “There was a perception that having a belly and a bald head made one look manly and rich.” Translated by Claire Shinyoung Oh Lee for RFA Korean. Edited by Roseanne Gerin and Malcolm Foster.
Russian soldier in Ukraine discusses North Korean weapons in video
Video of a Russian soldier in Ukraine talking about ammunition supplied by North Korea surfaced on social media this week, apparently debunking denials by Pyongyang and Moscow that the isolated East Asian country is supplying weapons for the war there. A video titled “Multiple rocket launcher (MRL) extended-range shells kindly provided by North Korean comrades have arrived in the NVO zone,” was shared on Nov. 12 on a Telegram channel called Paratrooper’s Diary, which contains frequent posts from Russian troops fighting in the northern front in Ukraine. The video shows a Russian soldier standing in front of a pile of rockets. “Our friends gave us a new type of ammunition similar to the twenty-second,” the soldier said in a possible reference to the rocket’s designation of R-122. “They travel farther distances and hit the target with higher accuracy. The victory will be ours.” If the weapons are indeed North Korean, it would be proof that Russia is in violation of U.N. Security Council Resolution 1874, which prohibits arms trade with North Korea. The prospect that the rockets were provided by North Korea is very likely, David Maxwell, vice president of the Center for Asia Pacific Strategy, told RFA Korean. “These MRLs are ubiquitous,” Maxwell said. “Since the weapons are so common and so heavily used for indirect fire against tactical Ukrainian targets, the Russians are likely going through their ammunition stocks rapidly and thus need resupply from North Korea.” The rockets in the video were also identified as North Korean by military blogger War Noir on X. “The rockets appear to be rare R-122 HE-FRAG rockets with F-122 fuzes. These are produced and supplied #NorthKorea/#DPRK,” a Nov. 8 tweet by War Noir, which contained the same video, said. RFA previously reported that the same blogger had identified North Korean weaponry used by Hamas fighters in attacks on Israel last month. Russian denials Though both Pyongyang and Moscow have denied that North Korea is supplying Russia with weapons for use in Ukraine, this is not the first time that evidence to the contrary has surfaced. In October, the Ukrainian weapons analysis group ‘Ukraine Weapons Tracker’ released photos showing the Russian military using North Korean-made artillery shells in a tweet on X. But on Tuesday, a spokesman for the Kremlin, Dmitry Peskov, said at a press conference that allegations that Russia was using North Korean weapons were “completely groundless.” “[The allegations] have not been confirmed by anything,” he said. North Korea has also dismissed the idea, calling it an “absurd manipulation of public opinion.” The United States is deeply concerned about “the expansion of military cooperation between North Korea and Russia,” U.S. Secretary of Defense Lloyd Austin said on Tuesday. “North Korea is providing lethal weapons to Russia.” Meanwhile, South Korea’s Ministry of Unification was also critical of the apparent uptick in military cooperation between Pyongyang and Moscow at a press briefing last month. “North Korea has repeatedly denied arms trade with Russia, but related circumstances are coming to light one after another,” the ministry’s spokesperson Koo Byoung Sam said. “The true nature of North Korea, which has deceived the entire world, is being revealed to the world.” RFA sent a message to the administrator of the Telegram channel to confirm the veracity of the video which is saying that the Russian military received North Korean weapons but did not receive a response. Translated by Claire Shinyoung Oh Lee. Edited by Eugene Whong and Malcolm Foster.
Taiwan: the ‘most sensitive’ issue, linchpin to US-China relations
The leaders of the world’s two biggest economies emerged from a high-profile summit with a conciliatory and consensual commitment to find a forward path of managing competition that benefits the United States and China, but one issue still remains as the linchpin: Taiwan. While pundits would not have expected the meeting between President Joe Biden and his Chinese counterpart Xi Jinping this week to have moved the needle as far as Taiwan is concerned, the issue was tabled and discussed, with both sides posturing as they always have. Biden reiterated the U.S.’s agreement to a One China policy and its position that Taiwan maintains its sovereignty despite China’s claims to the contrary. Xi, according to Xinhua news agency, called for the U.S. to take concrete actions to show that it is not supporting “Taiwan’s independence,” stop arming Taiwan and back China’s reunification. “China will realize reunification, and this is unstoppable,” Xi said during the summit, which nonetheless resulted in both sides agreeing to a dialogue on artificial intelligence, set up a working group to combat precursors for fentanyl, as well as resume high-level military-to-military communications. Chinese President Xi Jinping speaks during a bilateral meeting with U.S. President Joe Biden on the sidelines of the Asia-Pacific Economic Cooperation summit, in Woodside, California, U.S., November 15, 2023. Credit: Reuters The self-governed democratic island has been the flashpoint amid the increasingly tense bilateral relationship between China and the U.S. The two have disputed the Taiwan issue for years, especially since the previous administration of Donald Trump. Beijing has claimed numerous times that it could resort to using force to reclaim the island if necessary. The escalated diplomatic stand-off, coupled with China’s apparent increased inward-looking and restricting investment environment for foreign investors to be topped by Beijing’s tightened grip on Hong Kong have triggered an outflow of capital. “Taiwan was really an essential part of the summit,” pointed out Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis. “The well-crafted speech by Xi during the business summit referring to the fact that China will not engage in any cold war, or that China is looking for a military conflict is very important. I think China knows well that the Taiwan issue is top on the agendas of business executives. And that risk is now one of the reasons actually why some people aren’t investing either in Taiwan for that matter or the mainland. So I think that is a big statement.” “Peaceful coexistence” The evening after his summit with Biden, Xi addressed a room full of top U.S. business leaders in San Francisco, where he called “peaceful coexistence” a baseline for China and the U.S. to uphold as two major countries. Xi stressed that China never bets against the U.S. or interferes in its internal affairs. “Likewise the United States should not bet against China, or interfere in China’s internal affairs.” He added, “aggression and expansion are not in our genes.” To what extent Xi’s remarks will help de-escalate tensions in the Taiwan Strait, and by virtue the broader South China Sea, will likely be watched closely by analysts, but more importantly by Taiwan’s neighbors Japan and South Korea which are key allies of the U.S. in the region. At the same time, it also raises the question of how reassuring it would be to investors to bring fresh capital back to China. The U.S., Japan and South Korea have expressed their objection to what they saw as threats from Beijing, as China conducted military exercises around Taiwan to assert its sovereignty over the island. The Chinese navy has also been engaging in aggressive maneuvers in the South China Sea in a standoff with the Philippines. A Taiwan Navy Knox-class frigate fires chaff during a navy exercise off Yilan County, Taiwan, Friday, April 13, 2018. Credit: AP The dispute between the two major powers over the island amplified when Beijing issued a strong criticism following the visit of the then-Speaker of the House of Representatives, Nancy Pelosi, to Taiwan in August 2022. Since the event, the Chinese side had suspended its military communication channels with the U.S., a critical channel considered a last resort to prevent an unintended military confrontation. According to Zhang Baohui, professor of government and international affairs at Hong Kong-based Lingnan University, although the resumption of military communication channels between the U.S. and China will have a limited effect on the Taiwan issue, it is still a stabilizer to the high-risk relations between the two. “The US achieved its goal of reopening military to military ties and secured Chinese cooperation, while China achieved the goal of stabilizing the strategic rivalry, preventing it from getting worse,” said Zhang. “I think the outcome is positive for both countries. Both gained the image that they can work together to enhance global welfare.” Financial implications On the financial and business front, investors are taking a wait-and-see approach to the impact of the summit. For one, the U.S. did not lift any export controls on high-end semiconductors, an issue that China raised in the summit, criticizing the Americans for attempting to deny Chinese people the right to development. “The meeting should prove to have little long-term impact on financial markets. Xi did receive a very positive reception from business leaders, but here he was preaching to the choir,” said Brock Silvers, chief investment officer of Kaiyuan Capital. “Little was said or agreed that would convince recalcitrant investors that China was now prepared to tackle systemic or deflationary pressures, make necessary reforms, or meaningfully address investability concerns. “For investors, very few minds were likely changed.” U.S. President Joe Biden and China’s President Xi Jinping walk in the gardens at the Filoli Estate in Woodside, Calif., Wednesday, Nov, 15, 2023, on the sidelines of the Asia-Pacific Economic Cooperation summit. Credit:The New York Times via AP, Pool Garcia-Herrero is more optimistic. Overall, the Xi-Biden meeting could prompt the foreign business community to see that “maybe China’s not so uninvestable,” she said. “I’m expecting inflows into China because of this…
Former lawmaker dies in police custody after arrest for Myanmar scams
A former member of parliament for Myanmar’s pro-military Union Solidarity and Development Party wanted by Chinese authorities has died in police custody after being arrested for masterminding an online scam ring, according to junta-controlled media. Police in the Kokang Self-Administered Zone in northern Shan state, along Myanmar’s border with China, arrested ethnic Chinese businessman Ming Xuechang in Laukking township on Thursday in addition to his son Ming Guoping and grandson Ming Zhenzhen, MRTV said in a report. Beijing issued arrest warrants for the three late last week for allegedly helping to orchestrate telecom scam rings in Myanmar staffed by human trafficking victims. During the arrest, Ming Xuechang was injured by what MRTV described as a “self-inflicted gunshot wound from his own pistol.” He later died in hospital while undergoing treatment, the report said. Myanmar authorities handed Ming Guoping and Ming Zhenzhen over to police from China’s Yunnan province via the border gate at Yanglongkeng, according to MRTV. In addition to the three, Chinese authorities had also issued an arrest warrant for Ming Xuechang’s daughter, Ming Julan, who remains at large. Myanmar’s junta said the four family members committed online fraud, abduction, illegal detention, and extortion in the Kokang Self-Administered Zone. Experts say that many powerful officials in Kokang hold Chinese national ID cards and passports, giving Chinese police the jurisdictional authority to issue warrants for their arrest. Arrests in Yunnan Prior to issuing warrants for the members of the Ming family, authorities in China arrested 11 businesspeople at a trade fair in Yunnan’s Lincang township on Oct. 1, according to Chinese state media. Among them was Liu Zhangqi – a hotelier and former lawmaker for the Union Solidarity and Development Party in Kone Kyan township who is another of Ming Xuechang’s grandsons. Phoe Wa, a native of Hopan township in northern Shan’s Wa state self-administered zone with knowledge of the online scam industry, told RFA Burmese that he believes the arrests are related. “Some of the 11 are friends or relatives of the four who were the focus of the recent arrest warrants,” he said. “While there are [gambling] coin games on the first floor of hotels in Laukkaing, Muse and Chinshwehaw townships, there are typically restricted upper floors which house online fraud businesses. I assume that these cases are related to these online scams.” A source who is close to Liu Zhangqi, also known as “Maung Maung,” told RFA on condition of anonymity that attempts by family members to meet with the 11 arrested businesspeople in Yunnan have been rebuffed by Chinese authorities. Residents of Kokang who speak Chinese said that on Nov. 12, Liu published a statement in the Chinese media calling on the public to “help the Chinese government control online fraud” in the region. In the statement, Liu said Chinese authorities would “raid homes, hotels and casinos to find suspects,” and warned that anyone who resists arrest “bears responsibility for their own actions.” While reports by local media suggest that Chinese special forces have entered Kokang to conduct arrests of online fraud suspects, RFA has been unable to independently verify the claims. Kokang chief removed The arrest of the Mings comes a day after the junta removed Myint Swe as chief administrator for Kokang and replaced him with Brig. Gen. Tun Tun Myint on a temporary basis. Myint Swe was last seen in public on Nov. 8 at an emergency meeting of the National Defense and Security Council in Naypyidaw, which he had been invited to as a special participant. The junta’s announcement of his replacement made no mention of whether it was related to Thursday’s arrests. RFA made several attempts to contact the Chinese Embassy in Yangon by email for comment on the warrants, arrests, and alleged operations by Chinese special forces in Kokang, but received no response by the time of publishing. Myint Swe, seen at a meeting Nov. 8, was removed on Wednesday as the chief administrator for Kokang Self-Autonomous Special Region. Credit: Myanmar military Chinese Minister of Public Security Wang Xiaohong led a delegation of officials to meet with junta chief Senior General Min Aung Hlaing in Naypyidaw on Oct. 31. During the meeting, the two agreed to form a joint Myanmar-China task force to eradicate online scam rings in the Laukkaing area, according to pro-junta media reports. Days earlier, the “Three Brotherhood” Alliance of the Myanmar National Democratic Alliance Army, the Arakan Army and the Ta’ang National Liberation Army launched an offensive on Oct. 27 dubbed “Operation 1027” and have since made notable gains against the military in several key cities in Shan state. On Day One of the campaign, the Myanmar National Democratic Alliance Army, or MNDAA, occupied Chinshwehaw township and arrested several people for alleged roles in online scams. Crackdown only ‘tip of iceberg’ According to pro-junta media, authorities in Kokang have arrested a total of 7,789 foreign nationals – including 7,395 Chinese, 189 Vietnamese, 162 Thais, 32 Malaysians and two Laotians – in connection with online scams in the region. Authorities have deported 6,892 of them to China, reports said. Junta authorities in Myanmar’s Shan state have arrested and deported hundreds of Chinese nationals linked to telecom scams in the region in recent stings, but residents say the rings continue to flourish there, attracting workers with the promise of good-paying jobs. Scamming gangs have proliferated in Shan state, along eastern Myanmar’s borders with China and Thailand, amid the political chaos of the Feb. 1, 2021, coup d’etat, benefitting from widespread unemployment, poor oversight, and growing investment from across the border. Residents told RFA Burmese that scamming operations continue to thrive despite the crackdown, offering high-paying jobs to candidates with computer and language skills who are then held against their will and forced to earn money for their captors by working as telecom scammers. The gangs are known to brutally punish trafficking victims who refuse to work for them or fail to meet earning quotas, sometimes with deadly consequences. MNDAA spokesman Li Kyarwen told RFA that local military…
US Congress pushes sanctions on HK pension, judicial issues
In a harsh rebuke to China’s tightening authoritarian grip, a new U.S. congressional report has called for sanctions against Hong Kong judges and expanded efforts to protect emigrants’ pension funds. The annual report from the Congressional-Executive Commission on China (CECC) on Tuesday recommends Congress-authorized sanctions on members of Hong Kong’s judiciary, including foreign nationals serving on the city’s Court of Final Appeal. It also urges action to prevent U.S. financial institutions from cooperating with Hong Kong authorities seeking to deny departing Hong Kongers access to their retirement savings. Restrictions on MPF withdrawal Commenting on the situation of Hong Kong immigrants being denied access to their MPF (Mandatory Provident Fund) deposits, the CECC says it believes the practice is the Hong Kong government’s way of punishing Hong Kong people who have emigrated overseas by using BNO, or British National (Overseas), status after the National Security Act came into effect. This has resulted in some 90,000 BNO holders being denied access to their MPF deposits, according to the report. The CECC cited the U.S.-based Prudential Group and the U.K.-based Hong Kong and Shanghai Banking Corporation (HSBC) for refusing to allow Hong Kong residents to withdraw their MPF deposits after emigrating overseas. Under the Hong Kong Autonomy Act passed in 2020, the U.S. Department of State is required to submit an annual report to Congress on the status of Hong Kong. As such, the CECC has recommended that Congress should direct the Department of State to include in the annual report information on the Hong Kong government’s restriction on the withdrawal of MPF by Hong Kong residents abroad. The CECC believes that the authorities may consider imposing sanctions on those involved in restricting the freedom of immigration. It also recommended that Congress take further steps to prevent U.S. financial institutions involved in the management of Hong Kong people’s funds from complying with the Hong Kong government’s requests to assist in the infringement of immigration freedoms and to withhold lawfully earned pensions from those involved. Simon Lee, senior lecturer at the School of Accountancy of the Chinese University of Hong Kong, said the Hong Kong government not only lacks political advisers, but also a grasp of the global diplomatic struggle. “Now the MPF issue has escalated to the U.S. Congress, complicating the situation. It not only embarrasses the central government, but also affects the free flow of funds in Hong Kong and reduces investor confidence,” Lee told Radio Free Asia Cantonese on Nov. 15. “I think it’s silly to use all sorts of back doors to restrict MPF withdrawals. If unsure, it’s better not to do anything,” he said. Instead, Lee suggested that the local authorities should relax the restrictions to avert any potential sanctions, and send out positive signals that will help maintain Hong Kong’s status as an international financial center. Judicial independence The CECC also recommends that Congress amend the Hong Kong Autonomy Act to include in its annual report an assessment of Hong Kong’s judicial independence, reflecting faithfully whether the city’s chief executive, or any other body acting on behalf of the Chinese government, has exerted undue influence on its judicial system in a way that infringes on the right to a fair and independent trial guaranteed by the Basic Law. Based on the assessment results, Congress may impose sanctions on individuals serving in the Hong Kong judiciary, including foreign judges serving in the Hong Kong Court of Final Appeal, the report noted. Samuel Bickett, an American lawyer who used to work in Hong Kong, told RFA Cantonese that Hong Kong no longer had judicial independence and the rule of law to speak of, and that every judge and prosecutor involved in trials under the National Security Act had a role to play in undermining the city’s autonomy. “I think it’s a sign that different parts of the U.S. government, from Congress to the executive branch, have taken note of the need for further sanctions [against Hong Kong] and the failure of the U.S. government to implement them over the last few years,” Bickett said. “It’s a good sign that the Hong Kong 47 case, the Stand News case, the Jimmy Lai trial, all of these cases are going to get the attention of the United States and add momentum to the actions of the U.S. Congress and the president.” The CECC was established by the U.S. Congress in 2000 to study, report and make recommendations on how the U.S.-China trade and economic relationship affects U.S. national security. In the past, Congress introduced bills to sanction Hong Kong judges. Early this month, a bipartisan group of Congress members co-sponsored a bill on sanctions against Hong Kong officials – The Hong Kong Sanctions Act – which involves a list of 49 people and is the first time that a number of Hong Kong National Security Act judges and prosecutors are named in the bill. Translated by RFA Staff. Edited by Mike Firn and Elaine Chan.
Thailand backs away from Chinese police patrol plan amid furor
The Thai government has ruled out a proposal for Chinese police to be stationed at tourist hotspots around the kingdom amid a public backlash. The Tourism Authority of Thailand, TAT, on Sunday said the country was in talks with China about introducing joint police patrols as a way to appease Chinese visitors’ fears about safety. But the announcement sparked an outcry and earned pushback from the national police chief, Gen. Torsak Sukvimol, who said having Chinese officers on Thai soil was “a breach of sovereignty,” according to a report from BenarNews, an affiliate of Radio Free Asia. Thai Prime Minister Srettha Thavisin, who is in San Francisco for the APEC summit, said Monday there was no plan to station Chinese police in the country for joint patrols. Thailand only wanted to exchange information with China on criminal gangs operating in the Southeast Asian nation, Srettha said, according to a report from Bloomberg News. In Bangkok, Tourism Minister Sudawan Wangsuphakijkosol echoed the prime minister’s comments, saying there was “no policy to bring Chinese police” to Thailand. “The Thai police are already adequate … and are working hard to ensure tourist confidence,” he told reporters on Tuesday. TAT Gov. Thapanee Kiatphaibool apologized the same day for the “misunderstanding” and any “negative sentiment” stirred up by her comments. Chinese tourists accounted for a quarter of nearly 40 million tourist arrivals in Thailand in 2019, before the COVID-19 pandemic hit. But visitor numbers from the world’s No 2 economy have been slower to bounce back than anticipated after Beijing lifted its hardline pandemic rules in January. Thailand expects between 4 million and 4.4 million Chinese visitors this year, the TAT said. On Wednesday, Chinese Ambassador to Thailand Han Zhiqiang paid a courtesy visit to Sudawan to stress the importance of the bilateral relationship. “China’s government supports Chinese tourists visiting Thailand,” he said in a video posted by the tourism ministry. “This helps stimulate the economy, the tourism industry and, moreover, brings the two countries closer together.” The country’s image as a safe tourist destination for Chinese has been knocked by a spate of recent kidnap-for-ransom cases and reports of people being tricked into being trafficked as workers at scam call centers in nearby Myanmar. A shooting spree that left three people dead, including one Chinese national, at a popular Bangkok shopping mall last month has also raised safety concerns. The presence of Chinese police on foreign soil has become a sensitive issue worldwide after it was revealed by Spain-based Safeguard Defenders group in a September 2022 report that China was carrying out transnational policing operations across five continents, without the approval of the jurisdictions they were operating in. The report said the operations “eschew official bilateral police and judicial cooperation and violate the international rule of law, and may violate the territorial integrity of third countries involved in setting up a parallel policing mechanism using illegal methods.” BenarNews is an online news outlet affiliated with Radio Free Asia.
China’s consumption up in Oct, underlying economic weaknesses remain
China’s domestic consumption improved in October, bolstered by enhanced numbers in travel and spending during the Golden Week – National Day – holiday in the earlier part of the month, the latest data show. Retail sales, a barometer of domestic demand, were up 7.6% to 4.33 trillion yuan (US$598 billion) last month, on the year, and also a 2.1 percentage point rise from the previous month, according to the National Bureau of Statistics. “From the perspective of demand, in October, driven by the continued effects of consumption-boosting policies, the relatively strong demand for travel during the National Day holiday and the pre-sales from the Singles Day festival, both the market and sales growth have strengthened,” said Liu Aihua, the bureau’s chief economist and spokesperson on Wednesday during a press conference in Beijing. The uptrend, Liu added, showed that “the rebound in consumer demand was relatively significant.” In a broader perspective, China’s industrial output grew 4.6% in October, climbing marginally from the 4.6% pace in September. Fixed asset investment for the first 10 months climbed 2.9% from a year ago, but was 0.2 percentage point lower than that of the first nine months. While investment in infrastructure and manufacturing grew 5.9% and 6.2% respectively, that for the country’s embattled real estate development sank 9.3%. Liu pointed out that the industrial output number represented “corporate efficiency, the profits of industrial enterprises above designated size have turned positive year-on-year growth for two consecutive months.” “Whether it is from demand, production, or efficiency, the macroeconomic recovery is quite obvious,” she said. She added that monetary conditions were sound as seen from the increase in broad money supply – which includes bank deposits – for October from the People’s Bank of China data on Monday. The central bank figures showed that new loans – indicative of economic activities – grew to 738.4 billion yuan (US$101.97 billion) last month, an increase of 105.8 billion yuan from a year ago, but down from the 2.31 trillion yuan in loans extended in September. The latest figures could indicate the resilience of China’s economy in the short term, an expert noted, adding that it is picking up its growth pace. “The figures are an early indication that China’s economy is regaining momentum after the negative economic impact from COVID-19,” said James Downes, head of the Politics and Public Administration Program at Hong Kong Metropolitan University. Downes, however, cautioned the need for observation of the nation’s long-term economic resilience, advising against making hasty conclusions about China’s economy. Structural problems In fact, China continues to face structural challenges that could exert downward pressure on its economy in the long term. A spiraling property market and mounting local government debt risks, flanked by slower global growth are some of the pressing issues. The biggest concern for both China and the international community could be the weakening of China’s property market, which may pose a risk of spillover effects on other markets around the globe. The international investment community has witnessed China’s deteriorating real estate market in recent months, and some have borne the brunt of credit defaults from the country’s indebted developers China Evergrande and Country Garden. A general view of a construction site of residential buildings by Chinese developer Country Garden in Tianjin, China August 18, 2023. (Credit: Reuters) Adding to the concern, the statistics bureau on Wednesday released numbers reflecting the sector’s continued downturn. Property and related industries are estimated to contribute to a quarter of the gross domestic product. At the end of last month, unsold floor area for all commercial properties surged 18.1%, of which that for residential real estate soared by 19.7%, compared with October 2022. Funds raised by developers dropped 13.8% to 10.73 trillion yuan (US$1.48 trillion) in the first 10 months of the year. Domestic loans into real estate dropped 11% while foreign investments plunged 40.3% in the 10 months. Sales for commercial and residential properties slipped 4.9% and 3.7% in the 10-month period respectively. Beijing has also been ramping up measures to prop up the economy. It announced last month a 1 trillion yuan government bond issuance, which allows local governments to frontload part of their 2024 bond quotas. Beyond its shores, geopolitical tensions continue to weigh on China’s economy, preventing it from potential further growth. The long term resilience of China’s economy may be tied to its relations with the U.S., on how well it cooperates with the world’s biggest economy and its allies that would give it a larger market access. China must maintain its access to international markets and attract foreign investment to counteract potential impacts like those from a property market slump and avoid any impediments to its economic growth. “The US and China should seek to put aside their political differences and in the long-term work together on a number of key global issues,” Downes said. U.S. President Joe Biden is set to meet his Chinese counterpart Xi Jinping in San Francisco on Wednesday, where the two are expected to discuss a variety of issues including economic cooperation. Despite high anticipation, expectations for a breakthrough in economic cooperation from the meeting are modest, considering the bilateral all-out rivalry. Downes suggested that the areas where the two could concentrate might be climate change and Artificial Intelligence (AI), emphasizing the need to first find common ground. Edited by Taejun Kang and Mike Firn.
