Deep Dive

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  China’s manned submersible Jiaolong gets ready to dive into the sea for scientific research on July 16. Jiaolong and its support ship, the Xiangyanghong 09, are exploring the northwest Pacific Ocean to research cobalt-rich portions of Earth’s crust as well as life forms living at the bottom of the sea.


   Judicial Reform
  Shanghai, China’s main financial hub, initiated a pilot judicial reform program on July 13 to make judges more accountable while also curbing government intervention in court.
  Pioneering China’s judicial reform, the program will improve management and job security for judicial staff, increase the accountability of judges and unify the personnel and finance management of local courts, according to an office in charge of the reform.
  In an effort to improve professionalism, a clear division will be set between judges and procurators, other judicial staff, and administrative personnel, who will be placed under separate management, according to the reform plan.
  The reform also targets the decision-making power of the judicial council, limiting its use in complicated cases on which the collegial panel shows major splits.
  The plan also requires the judges and procurators at district- or county-level courts to be nominated by provincial-level judicial authority. Funds of local courts will also come from the provincial, rather than the local finance.
  China has been pushing for deeper judicial reform to address public complaints over issues regarding the impartiality and competence of courts.
  On July 9, the Supreme People’s Court published a guideline for judicial reform over the next five years. The guideline includes 45 major measures across eight key judicial issues such as personnel management as well as finances and judicial selection, most of which are included in the Shanghai reform plan.
   HK Election Method
  China’s top legislature has received a report from Leung Chun-ying, Chief Executive of Hong Kong Special Administrative Region (HKSAR), on possible revisions of how the region’s chief executive and local legislature will be elected in the future, it was announced on July 15.
  Under the Basic Law of the HKSAR, the Standing Committee of the National People’s Congress (NPC) has final say on whether to revise the election methods of the HKSAR’s chief executive in 2017 and its Legislative Council in 2016, a statement from the NPC Standing Committee read.   The report from Leung is based on the results of a public consultation by the HKSAR Government from December 4 last year to May 3, the statement said.
  The NPC Standing Committee will make the decision according to law, it added.
  The current chief executive was elected by an election committee in 2012. Hong Kong plans to introduce universal suffrage in the election in 2017.
   Pollution Fine
  Ten thermal power plants across China had been fined for attempting to evade supervision of their sulphur emissions, said the National Development and Reform Commission (NDRC) on July 15.
  Penalties totaling 519 million yuan($83.66 million) were handed down after investigations into the operation of sulfur-removal devices in coal-fired plants, according to the NDRC.
  The commission said that some thermal plants were found to have deliberately shut down their sulfurremoval devices to reduce costs or avoid pollution monitoring.
  To try to bring air pollution under control, China encourages coal-fired power generators to install devices to remove sulfur and other pollutants. Plants equipped with such devices receive government subsidies and are allowed to sell their electricity at higher prices.
  Among those punished, Yangcheng International Power Generation, a Shanxi-based Sino-U.S. joint venture, faced subsidy cuts or fines to the tune of 125.6 million yuan ($20.25 million).
   Fake IDs
  China’s police forces found 271,000 fake or duplicate ID records in the first
  half, all of which have been nullified, the Ministry of Public Security announced on July 12.
  A total of 149 cases of counterfeiting and selling fake ID cards or household registration documents have been solved and 46 members of police officers have been punished for their involvement, the ministry said in a statement.
  Last year, China found and nullified 790,000 fake IDs. By the end of this year, a system to check ID information through image-matching technology will be set up across the country, according to the ministry.
   Changing Wheels
  On July 16, China’s central authorities released a guideline to reform the supply and use of government vehicles in an effort to cut spending.
  China will stop giving vehicles for use in regular government affairs, while keeping those for special services such as law enforcement and emergencies, according to the guideline.
  The Central Government will instead allocate a “proper amount” in subsidies to public servants to allow them to choose their own means of transportation.   The aim is to finish reform in central government organs by 2014 and in local governments by the end of 2015, said the guideline.
  In China, officials above a certain level have usually been provided a driver and car for their work, but many have used the vehicles for private purposes, effectively wasting public funds and drawing complaint.
   First Graduates
  Zhu Qingshi (center), President of the South University of Science and Technology of China (SUSTC) in Shenzhen, Guangdong Province, poses with the first two graduates Wang Jiale (left) and He Minghao after they received diplomas issued by the university.
  The two students passed their dissertation defense and graduated from the school one year earlier than 43 other students who enrolled together during the school’s opening year in 2011.
  In China, diplomas are issued by the Ministry of Education. The SUSTC, which has been designed by its founders as China’s first professor-led and bureaucracy-free university, is the first to break with the practice.
  It is typical for the world’s top universities to issue their own diplomas, Zhu said.
   Heavy Rain
  Rescue workers on rafts come to the aid of people stuck in a flooded street in Fenghuang Ancient Town in central China’s Hunan Province on July 15.
  Severe rainfall and the ensuing floods hit Hunan and southwest China’s Guizhou Province in mid-July, affecting more than 5.5 million people and leaving at least 11 dead.
   Government on WeChat
  China’s government agencies are opening more and more accounts on WeChat, an instant messaging application, to increase their online presence in a fast-changing age of social networking.
  According to a report released on July 13 by the Communication University of China, there were 3,600 governmental WeChat accounts at the end of 2013, and the number was nearly 6,000 at the end of March 2014.
  The report said that governmental WeChat accounts have mushroomed in the past year, as both central and lowerlevel government agencies have been using WeChat to interact with netizens on public issues.
  Police departments hold 30.3 percent of total governmental accounts, the largest portion, the report revealed.
  It listed several cases in which governments are using innovative measures to interact with netizens. For example, police in Shouguang County, east China’s Shandong Province, even issued an order for arrest on WeChat.   However, problems still remain in operation, such as timely information disclosing, the report said.
   SOE Reform
  Six large state-owned enterprises(SOEs) will pilot reforms in ownership, management and supervision, Chinese authorities announced on July 15.
  The companies are the State Development and Investment Corp.(SDIC), China National Cereals, Oils and Foodstuffs Corporation (COFCO), China National Building Materials Group(CNBM), China Energy Conservation and Environmental Protection Group(CECEP), Xinxing Cathay International Group (XXCIG) and China National Pharmaceutical Group (Sinopharm), according to the State-owned Assets Supervision and Administration Commission of the State Council(SASAC).
  The SDIC and COFCO will be “reorganized” to establish “state-owned asset investment companies” on a trial basis. Mixed-ownership pilot reforms will be carried out at Sinopharm and CNBM, said SASAC spokesman Peng Huagang at a press conference.
  A more effective board of directors system will be set up at XXCIG, CECEP, Sinopharm and CNBM, and disciplinary inspection teams will be sent to another two or three unnamed SOEs, said Peng, who is also in charge of reform issues at the SASAC.
  The “state-owned asset investment company” has been designed to make the “state”—the SASAC in this case—a stakeholder instead of a manager of a SOE so as to raise the company’s management and operation efficiency.
  For mixed-ownership reform, SOE giants like China National Petroleum Corp. and China Telecom have carried out their own plans to diversify corporate ownership and attract private funds.
  The new board of directors system is meant to allow the board to act as the company’s decision-making center while reducing the management entitlements of investors.
   Auto Feast


  Visitors view a display model manufactured by Tianjin FAW, an automobile manufacturer in north China’s Tianjin, at the 11th China International Automobile Expo in Changchun, Jilin Province, on July 11.
  The expo, lasting for 10 days, attracted 152 companies from home and abroad to showcase their latest models.
   Land Finance
  The total land transaction fees collected by local governments in 2013 soared to an all-time high of 3.91 trillion yuan($630 billion), up 1.2 trillion yuan ($193 billion) from the year earlier period, according to new figures from the Ministry of Finance (MOF).   Transaction fees for the use of state-owned land, an important gauge of local governments’ dependence on land finance, reached 4.13 trillion yuan ($666 billion), an increase of 45 percent. MOF said 35 percent of all local revenues were generated by fees associated with the right to use stateowned land.
  Official statistics show local governments’ land transaction revenues reached 3.1 trillion yuan ($500 billion) in 2011 and dropped to 2.7 trillion yuan($435 billion) in 2012.
  The MOF attributed the soaring revenues to the price increase for land transactions, which was in lockstep with local governments’ increased dependence on fiscal income from the selling of land use rights.
   Green Push
  China unveiled a plan on July 13 that encourages government organs to buy more new-energy vehicles, which has been hailed as an important move in fighting pollution and driving the slowly growing new-energy car market.
  From 2014 to 2016, new-energy vehicles will account for no less than 30 percent of newly purchased cars in state organs, according to the plan jointly released by the National Government Offices Administration (NGOA), National Development and Reform Commission, Ministry of Finance, Ministry of Science and Technology, and Ministry of Industry and Information Technology.
  The plan also applies to government organs and public service institutions in regions where controlling fine particle emissions has become a challenging task in the fight against pollution, an NGOA spokesman said.
  The number of new-energy vehicles will account for at least 15 percent of new cars in 2014 for local government departments and institutions in the Beijing-Tianjin-Hebei region in north China, the Yangtze River Delta in the east, and the Pearl River Delta in the south.
  That percentage will be raised year by year in government organs, public service institutions and organizations that are wholly or partially supported by government funds, according to the spokesman.
  To implement the plan, the Central Government promised to offer subsidies for new-energy vehicles priced less than 180,000 yuan ($29,000) and ordered local governments to build more facilities for the use of new-energy vehicles.
   Reaping the Benefits
  A farmer harvests rice in Shixia village, Jing’an County in Jiangxi Province, on July 14.
  China’s summer grain output hit a record high of 136.6 million tons in 2014, up 3.6 percent from last year, said the National Bureau of Statistics on July 14.


   Tourist Destination
  South Korea is poised to overtake Thailand as the largest outbound destination for Chinese tourists this year, said a report from China’s leading online travel agency Ctrip.com.
  Ctrip predicts the number of Chinese visitors to South Korea will jump 40 percent from a year ago in 2014, thanks to a visa-free policy for Chinese visitors to Jeju Island, the most popular tourist attraction in South Korea.
  In 2013, Chinese tourists made nearly 4 million trips to South Korea, the largest among foreign visitors, according to Ctrip. Chinese airline companies have started to increase the number of flights between the two nations to meet the growing demand.
   New Rules
  The China Securities Regulatory Commission (CSRC) released a new set of rules governing major asset restructuring by listed companies on July 11, with the market playing a larger role.
  Under the new rules, major asset restructuring such as asset purchases, sales and swaps can proceed without approval from the CSRC.
  But restructuring involving stock issuance and backdoor listing still need to be examined and approved by the commission.
  The CSRC also clarified the tightened oversight of backdoor listings, stating that requirements for a backdoor listing will be the same as those for an initial public offering.
   Transport Ties
  The county government of Nairobi, Kenya, on July 14 signed a memorandum of understanding (MOU) with Chinese automaker Foton Motors to upgrade the commuter transport system in Nairobi.
  Under the MOU, Foton Motors will provide 260 buses for the project. The Beijing-based vehicle manufacturer will also extend financial support to enable the county government to secure soft credit from international lenders to buy the buses and repay the loan at a rate of 15 percent.
  Rapid population growth in Nairobi has exerted pressure on the region’s public transport system. Nairobi County Governor Evans Kidero noted 2.5 million people in Nairobi depend on public service vehicles.
  “We require a mass public transport system to ease congestion on our roads and reduce carbon emissions,” Kidero said.
  Senior executives of Foton Motors revealed that it will assist Nairobi in developing a cashless payment system accompanying modern terminals.
   Booming Sales
  Sales of Chinese-brand smartphones have skyrocketed to 33.8 percent of the world’s total in the past year from almost zero in 2010, according to a report published at the 2014 National Electronic Information Industry Symposium in Ji’an, east China’s Jiangxi Province, on July 14.
  Homegrown brands dominated the domestic market in 2013, accounting for 72 percent of all the handsets sold in the country, up from a mere 16 percent in 2010.
  China produced 870 million smartphones in 2013, a year-on-year increase of 74 percent, the report shows.
  By January, 838 million Chinese, nearly two thirds of the country’s population, were using mobile Internet, according to official statistics.
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