Archive for ‘China’

Sunday, May 22, 2016

America, Japan: a more equal Relationship?

US President Barack Obama gave NHK an exclusive interview ahead of his arrival in Japan, reports NHK, emphasizing that Obama would be the first sitting US President to visit the atomic-bombed city.

A full account of the interview doesn’t seem to be available online yet. NHK provides a video with excerpts from the interview.

News like this doesn’t make much sense without context. US-Japan relations, frequently dubbed one of the closest alliances worldwide, were contentious in 2009, according to the New York Times. At the time, Japan had just seen its first transition of power from one political party to another, and the Hatoyama government – in short – called for a more equal relationship with the United States, with a number of possible ramifications.

The departure from the usual Liberal-Democrats rule in Japan was only an interlude. And a nation’s foreign policies are usually bi-partisan, or meta-partisan – in Japan, too.

From the Middle East to Ukraine, questions are being asked about the U.S. ability and willingness to maintain peace. If it cannot or will not, who will fill the void?,

the Nikkei Asian Review asked in May 2015.

Japan sees its future more within Asia, the NYT quoted Eswar S. Prasad back then. That, however, doesn’t necessarily benefit Sino-Japanese relations, as suggested by the NYT six years earlier. Rather, Japan appears to be warming to Russia.

Japan and Russia have especially found ample opportunity to conduct a coordinated response to the most recent security crisis in North Korea. Japan and Russia have also sought to increase their economic and financial ties, which are particularly important for the development of the Russian Far East,

Anthony Rinna of the Sino-NK research group noted in March this year. The Russian pivot to the East – possibly with a lot of help from Tokyo – was hampered by two obstacles however, Rinna cautioned: the long-standing dispute over the Kuril Islands, and Japan’s alignment with the West over the Ukraine crisis.

And while

the containment of China remains the primary purpose of the Japan-U.S. defense apparatus, U.S. strategic containment of Russia also continues to be an important factor in the Japan-U.S. alliance, which comprises one key flank of the American strategic posture in Asia,

Rinna added.

But being part of an alliance doesn’t mean that Japan would forgo foreign policies of its own. When Obama (reportedly) tried to talk Japanese prime minister Abe out of a meeting with Russian president Vladimir Putin, his appeal was unsuccessful.

It’s not only Japan who needs to take existing alliances into consideration. The same is true for Russia – but less so than Japan. Russian obligations toward China can’t be compared to Japan’s obligations toward America. That may not be a general opinion in China, but observers who watch the developments probably wouldn’t be caught by surprise if Russia and Japan were to sign a peace treaty in the not too distant future.

In December 2013, Cui Heng (崔珩) of the East China Normal University’s Russia Research Center in Shanghai, published an opinion on the China Internet Information Center (中国网) website. Titled “Russia won’t keep away from Japan because of Russia-Chinese relations”, Cui’s article pointed out that Russia’s preparedness to be considerate of China was limited, even though Sino-Russian relations were “at their best in history”.

Abe’s generation in particular had, because of their country’s economic successes, developed a sense of national greatness, and were seeking normalization for Japanese statehood. The economic revival after Abe’s taking office [there was a revival indeed, three years ago] had added to this conscience among Japanese politicians, Cui wrote. Ending the official state of war with Russia would be part of normalization. Even if hardly relevant in military terms, the status quo weighed heavily in terms of in terms of symbolism.

By coming to formally peaceful terms with Russia, Japan could also shed its status as a defeated country, Cui argued, and then addressed a factor that made Russia’s perception of Japan different from both China’s, and America’s:

Russia isn’t only prepared to develop beneficial relations with Japan for geopolitical reasons. In Russian historical memory, there isn’t much hate against Japan. During the age of the great empires, Japanese-Russian relations in the Far East were of a competitive nature. Many Russians still talk about the 1905 defeat, but the Far East wasn’t considered a place that would hit Russian nerve as hard as the crushing defeat in the Crimean war. Back then, Japan wasn’t perceived as a threat for Russia, and from another perspective, if there had been anti-Japanese feelings, there wouldn’t have been a revolution. According to perception back then, the [1905] defeat was a result of the Russian government’s incompetence, not [brought about by] a strong adversary. The outstanding achievements of the Soviet Red Army in 1945 led to a great [positive] Russian attitude, but still without considering Japan a great enemy.

By visiting Hiroshima, Obama appears to make a concession to Tokyo’s desire for “normalization”. Of course, few decisions are made for only one reason – they are part of a network, or hierarchy, of objectives. One objective was stated by Obama himself – that we should continue to strive for a world without nuclear weapons.

There is no great likelihood that Japan would shift away from the alliance with Washington. Japan’s distrust of China probably outweighs even America’s. That’s a stabilizing factor in US-Japanese relations.

But Tokyo is certainly trying to put its relations with America on a more equal footing – not just formally, but by creating diplomatic and economic facts that will help to further this aim.

Russia’s Far East is nothing to disregard, in terms of its economic potential. Japan can do business with Ukraine, and with Russia, and is likely to cooperate with both.

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Related

Shared Concern, Nov 11, 2015
Greater Contributions, April 25, 2014

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Friday, May 20, 2016

Tsai Ing-wen’s Inagurational Address: an Economy with New Bones

The inaugural address in → Chinese and in → English, published by CNA. Prior to President Tsai’s inaugural speech, there were two songs: an indigenous one, and the national anthem of the RoC.

Language observation: I used to think that 脱胎换骨 was merely an mainland Chinese figure of speech (to be reborn with new bones, see footnote →there. This is not so. President Tsai used it too, this morning:

我們要讓台灣經濟脫胎換骨,就必須從現在起就下定決心,勇敢地走出另外一條路。這一條路,就是打造台灣經濟發展的新模式。

The CNA translation puts it less pictographic:

In order to completely transform Taiwan’s economy, from this moment on, we must bravely chart a different course – and that is to build a “New Model for Economic Development” for Taiwan.

So, chances are that Wang Meng and his generation learned that →phrase long before joining the Communist Party. It’s either “KMT”, or still older.

Thursday, May 19, 2016

DPP: a Need to Control and to Trust Tsai

Very few things can be taken for granted. Tsai Ing-wen‘s presidency will have to address issues from pension reform and social issues, to relations with China and efforts for economic-cooperation agreements with countries in the region, beyond Singapore and New Zealand.

From tomorrow, many things will be different from preceding presidencies. But one thing will not change at all: Beijing’s latent aggression against the island democracy will stay around.

Tsai will probably try to avoid anything that would, in the eyes of many Taiwanese people and especially in the eyes of Washington or Tokyo, unnecessarily anger Beijing. That in turn may anger some or many of her supporters.

But in tricky times, Tsai needs loyal supporters, who are prepared to believe that she has the best in mind for her country, and that she has the judgment and strength to make the right choices.

There will be disagreement, and there will be debate, which is essential. But underlying these, there needs to be loyalty within the Democratic Progressive Party.

Probably, there will be no loyal opposition – there are no indications, anyway, that the KMT in its current sectarian shape will constitute that kind of democratic balance.

The DPP itself, and maybe the New Power Party, too, will have to take much of that loyal-opposition role – at least until July next year.

Distinguishing between blind faith and loyalty will be a challenge for people who support the president elect. But if Tsai’s supporters expect her to perform well, they themselves will have to play their part, too, in terms of judgment, strength, and faith.

Tuesday, May 10, 2016

NHK: “Suddenly off the Air”

An NHK broadcast suddenly went off the air across mainland China on Tuesday morning during a report on the Panama Papers,

reports Radio Japan.

The World Premium channel by Japan’s public broadcaster lost both its video and sound shortly after a newscaster began reporting on offshore firms set up by relatives of current or former leaders of the Chinese Communist Party.

The program was interrupted again when it touched on the efforts of Chinese authorities to rigidly control information about the leaked financial documents.

The authorities appear to be censoring reports on the story by both domestic and foreign media.

The NHK states a CTV-Satellite TV Program Co., Ltd. as an operator in China, with a Beijing area code in its phone number. While Radio Japan, NHK’s foreign broadcasting service, offers programs in Chinese (including shortwave broadcasts), NHK Premium is bilingual (Japanese and English), according to Wikipedia.

Tuesday, May 3, 2016

Be very Afraid …

… counter-revolutionary students in public squares!

The PLA is here to kill, kill, kill you with responsibility!

Remember June 4, 1989.

Monday, May 2, 2016

Beijing: Foreign Experts wanted to avert more PR(C) Disasters

Life’s hasn’t been nice to China Radio International (CRI). The propaganda juggernaut hasn’t been mentioned in the nation’s chairman’s new year addresses in recent years (as had been a time-honored custom during previous decades), it had been described as a bottomless pit of waste by Keith Perron (a former CRI presenter himself), and the international broadcaster’s borrowed-boats strategy probably caused some chuckles in the industry, too. Other “international” media outlets from the Middle Kingdom aren’t really effective either. Whenever they catch attention, it’s for anchors losing it, or similar not so-work-related reasons – at least in Western countries.

CRI’s German service is a brilliant example of how propaganda on a foreign audience simply can’t work. On the past two Sundays, they broadcast the same edition of their “listeners forum”, with just one listener quoted there (maybe he was the only one who wrote in), and later on, a “report” on electrical power supply in Tibet (also the second time on two consecutive Sundays). That doesn’t mean that there aren’t any listeners – some actually appear to be listening religiously, and Beijing’s propaganda is in no position to abandon these early Christians. But it appears to be a small flock. And given the truthful (and therefore highly unpleasant) representation of Beijing’s attitude towards Tibet, for example, it can’t be a big audience.

If you, as a government or collective dictatorship, can’t bring yourself to destroy some quarters of the state-owned industrial sector (as prescribed by the neo-liberal foreign press), you certainly cannot break an unsinkable aircraft carrier with thousands of jobs up, either. But you can still do two things. Measure number one is to keep the ineffective bathing tub*) in your coastal waters, while venturing into international waters with some international expertise. That, at least, appears to be on Xi Jinping‘s mind – Xi is the guy who hasn’t mentioned CRI in his new-year addresses.

And while the foreign expertise is going to work for you, you can kick all those foreign correspondents out who treat China unfairly. That would be measure number two. In fact, measure number two has been practiced for ages.

(On a private note, I’m not sure if putting lipstick on the pig will really make the pig look nicer, or more convincing. But then, the pig has little to lose – and I’m going to watch the experiment with some curiosity.)

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Note

*) Given the wide range of languages and target areas, there may be CRI brances which are a success story, in terms of feedback from the audience, etc.. But I haven’t heard of them yet.

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Friday, April 22, 2016

The Mass Line and the Common Netizens: Where You go, We will go (to Listen to You and to Correct You)

An apparently centrally compiled news article on Tuesday, published or aired by Xinhua newsagency and CCTV‘s Xinwen Lianbo evening news among other media outlets, provided details from a Central Leading Group for Internet Security and Informatization conference in Beijing on Tuesday morning. The session was chaired by Xi Jinping (referred to in the article in his capacities as secretary-general, state chairman, central military commissions chairman, and central lading group for internet security and informatization group leader), and the list of attendants included both his informatization group deputy leaders Li Keqiang and Liu Yunshan, other leading party members, and/or experts or stakeholders like Wu Manqing (吴曼青, a Chinese Academy of Engineering fellow as well as a chief engineer at China Electronics Technology Group Corporation), and Jack Ma (马云), Alibaba Group CEO.

As China Media and Copyright notes, the full text of Xi Jinping’s speech wasn’t published, but the blog, apparently run by a Dutch Master of Chinese studies, provides a full translation of the a/m news article. The newsarticle had also caught the attention of The Independent and Reuters.

From the article, as translated by China Media and Copyright:

Xi Jinping pointed out that our country has 700 million netizens; this is an extraordinary number, and an extraordinary achievement. Our country’s economic development has entered a new normal, the new normal requires new drivers, and the Internet can have great potential in this area. We must strive to promote the converged development of the Internet and the real economy, let information flows drive technology flows, financial flows, talent flows and material flows, stimulate the optimization of resource allocation, stimulate the increase of productivity of all factors, and let it play a positive role in promoting innovation and development, transforming economic development methods, and adjusting economic structures.

习近平指出,我国有7亿网民,这是一个了不起的数字,也是一个了不起的成就。我国经济发展进入新常态,新常态要有新动力,互联网在这方面可以大 有作为。要着力推动互联网和实体经济深度融合发展,以信息流带动技术流、资金流、人才流、物资流,促进资源配置优化,促进全要素生产率提升,为推动创新发 展、转变经济发展方式、调整经济结构发挥积极作用。

[…]

Xi Jinping pointed out that we must build a good online ecology, and give rein to the network’s role in guiding public opinion and reflecting the popular will. To realize the “Two Centenaries” struggle objective, it is necessary that all of society acts with one heart in all aspects, and it is necessary that the people of all ethnicities in the entire nation think in the same direction, and devote their energies in the same direction. Netizens come from among the common people, once the common people went online, popular sentiment also went online. Wherever the masses are, there our leading cadres must go as well. All levels’ Party and government bodies, as well as leading cadres, must learn how to march the mass line through the network, regularly go online to look around, understand what the masses think and want, collect good ideas and good suggestions, and vigorously respond to netizens’ concerns, relieve their doubts and dispel their worries. With regard to the broad netizens, we must have more tolerance and patience, we must timely take up constructive opinions, we must timely help where there are difficulties, we must provide timely propaganda and explanation to those who don’t understand the situation, we must timely clear up matters for those with muddled understandings, we must timely resolve grievances and complaints, we must timely guide and correct mistaken viewpoints, to let the Internet become a channel to understand the masses, stay close to the masses, and get rid of worries and overcome difficulties of the masses, and let it become a new channel to carry forward the people’s democracy and accept the people’s supervision. To those online criticisms that stem from good intentions, to Internet supervision, regardless of whether they concern Party or government work, or whether they concern leading cadres individually, regardless of whether they are gentle and mild or whether they are hurtful truths, we must not only welcome them, we must also earnestly study and learn from them.

习近平指出,要建设网络良好生态,发挥网络引导舆论、反映民意的作用。实现“两个一百年”奋斗目标,需要全社会方方面面同心干,需要全国各族人 民心往一处想、劲往一处使。网民来自老百姓,老百姓上了网,民意也就上了网。群众在哪儿,我们的领导干部就要到哪儿去。各级党政机关和领导干部要学会通过 网络走群众路线,经常上网看看,了解群众所思所愿,收集好想法好建议,积极回应网民关切、解疑释惑。对广大网民,要多一些包容和耐心,对建设性意见要及时 吸纳,对困难要及时帮助,对不了解情况的要及时宣介,对模糊认识要及时廓清,对怨气怨言要及时化解,对错误看法要及时引导和纠正,让互联网成为了解群众、 贴近群众、为群众排忧解难的新途径,成为发扬人民民主、接受人民监督的新渠道。对网上那些出于善意的批评,对互联网监督,不论是对党和政府工作提的还是对 领导干部个人提的,不论是和风细雨的还是忠言逆耳的,我们不仅要欢迎,而且要认真研究和吸取。

Much of the news article reflects comments by Xi Jinping about global competition and China’s position there, and even expresses an interest in foreign talents, in that not only we welcome foreign Internet enterprises, as long as they abide by our country’s laws and regulations, but

We must establish flexible talent incentive mechanisms, let talent making contributions feel a sense of achievement and a sense of gain. We must build talent structures and systems with global competitiveness. Regardless of from which country or region they come, as long as they are excellent talents, they will be usable to us.

要建立灵活的人才激励机制,让作出贡献的人才有成就感、获得感。要 构建具有全球竞争力的人才制度体系。不管是哪个国家、哪个地区的,只要是优秀人才,都可以为我所用。

As usual, Xi is presented as a people person, and his academic and professional interlocutors play along pretty well in the CCP choreography:

Xiao Xinguang shaking hands with Xi Jinping

Click above picture for video

Xiao Xinguang in particular can hardly secede from part with his secretary-general.

And Tang Xujun (唐绪军), head of the news and propagation research institute at the Chinese Academy of Social Sciences, counted himself lucky to have been there, as he wrote in an article for People’s Daily:

I was fortunate to attend the Internet Security and Informatization conference chaired by secretary-general Xi Jinping, and, with my own ears, listen to secretary-general Xi Jinping’s important speech, from which I benefitted. As an internet and new media researcher, I was deeply impressed by secretary-general Xi Jinping’s elaboration detailed remarks concerning the construction of a good internet ecology and guidance of public opinion, and [the internet’s] reflection of the popular will.

有幸参加了4月19日习近平总书记主持的网络安全与信息化工作座谈会,亲耳聆听了习近平总书记的重要讲话,受益匪浅。作为互联网和新媒体的一个研究者,我对习近平总书记关于要建设网络良好生态,发挥网络引导舆论、反映民意作用的阐述印象深刻。

What is the popular will? Although academic views of the definition of popular will are varied, with different emphasis, there is this fundamental consensus: the popular will is the masses’ public expression, in particular places at particular times, of basically unanimous viewpoints and opinions concerning particular public affairs. [Popular will] is a form of democracy.

什么是民意?尽管在学界对民意的定义五花八门,各有其强调的重点,但基本一致的共识是:民意就是人民群众在特定的时空,对特定的公共事务公开表达的基本一致的观点和意见,它是一种民主的形式。

The Chinese Communist Party is the vanguard of the Chinese working class guided by Marxism. It’s objective is to wholeheartedly serve the people. Therefore, it pursues no personal interests. As early as in 1945, Mao Zedong, answering Huang Yanpei‘s question about how the CCP could escape the [defining treadmill of successive dynasties- my interpretation of 历代王朝兴亡周期率问题], pointed out that “we have already found a new road. It’s democracy. Only when you let the people supervise government, the government will not dare to become compacent. Only when people assume responsibilities, the problem of good governance dying with its founder will no longer emerge. From there onwards, all generations of CCP leaders have always emphasized the mass line of listening to the voice of the people, and to undertake great work to investigate and research its manners. [This last sentence is my very vague and hardly accurate translation of what it probably means – JR.]*)

Since the CCP’s 18th national congress, the CCP’s central committee with Xi Jinping as the secretary-general, mass line education and practice has become a more important starting point for the new era’s state affairs management, with the people at the center, listening to the popular will, and being in tune with the popular sentiment.

中国共产党是以马克思主义为指导的中国工人阶级的先锋队,其宗旨是全心全意为人民服务,因此她没有自己的私利。早在1945年,毛泽东在答黄炎培关于 中国共产党如何跳出中国历史上历代王朝兴亡周期率问题时就指出:“我们已经找到新路,我们能跳出这周期率。这条新路,就是民主。只有让人民来监督政府,政 府才不敢松懈。只有人人起来负责,才不会人亡政息。”从那以后,中国共产党的历代领导人都始终强调“倾听人民的呼声”“大兴调查研究之风”“走群众路 线”。党的十八大以来,以习近平为总书记的党中央更是以“群众路线教育实践活动”作为新时期治国理政的抓手,一切以人民为中心,听从民意、顺应民情。

Tang tries to reconcile the variety of opinions expressed on the internet with the party’s goals by basically re-stating Xi Jinping’s demand that it is necessary that the people of all ethnicities in the entire nation think in the same direction, and devote their energies in the same direction (see blockquotes further above), and that cadres listen to online opinions.

The internet being the biggest variable (最大变量) party cadres face, the internet must be “embraced” to achieve the “postitive energy” [do a browser search →there] mentioned by Xi Jinping, writes Tang.

All the same, Tang seems to like his secretary-general better than the internet and, in perfect internet-ecological terminology, expresses his misgivings about the latter:

This particular feature of the internet [that everyone can be a communicator] has greatly widened individuals’ and all kinds of societal organizations’ channels of expression. Any individuals’ or groups’ information and opinion can disseminate quickly and broadly, and even exceed the disseminational and expressonial powers of traditional media. A tiny event can become big through the internet, and an incident with great influence on the real world, and some grass swaying in the wind online may affect social stability online.

互联网的这种特性,极大地拓宽了个人及各种社会组织的表达渠道,某些个体和团体的信息传播与意见表达可以更迅捷地广泛扩散,甚至具有乃至超过传统媒体 的传播力和表达力。一个微小的事件通过互联网的放大,有可能成为现实中的一个影响巨大的事件,线上的风吹草动也可能影响到线下的社会稳定。

The answer? The main point in “guidance of public opinion” by the respective party and government levels, according to Tang, is to seize (issues? movements?) in a timely manner, while they are still small (因此,各级党和政府应对网上民意、引导网络舆论最重要的就是要做到“及时”, 抓早抓小).

Countless incidents in recent years have restated one lesson over and over again: delayed responses have lead to loss of control. Another point is categorized treatment [of online events]. The demands from the masses are various. There are reasons for all of them – the constructive and interest-led ones, the ridicule, and the angry ones. As service providers, all party and government levels must have a focused “fitting key” [for all situations], to respond in an appropriate way.

近几年无数网络事件反复验证了一个教训:贻误时机往往就意味着失控。其次是要分类对待。人民群众的诉求各种各样,有提出建议性意见的,有维护个 人权益的,有吐槽的,有骂娘的,各有其缘由。作为服务者,各级党和政府就必须有针对性地“一把钥匙开一把锁”,做到应对有方,举措得当。

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Notes

*) Two notes here.

  1. The last above sentence is a very vague and hardly accurate translation of mine – corrections and suggestions to improve it are welcome.
  2. What Tang Xujun refers to as Mao’s reply to Huang Yanpei is translated as the “Cycle” conversation in this Wikipedia article [accessed April 22]:

In 1945, Huang travelled to Yan’an to meet Mao Zedong and they had a conversation. In this dialogue, Huang noted that history is a testament to an observation that no form of government — an empire, a kingdom, a republic, and so on — had ever been able to break out of a cycle of rise and fall.

Huang said,

I’ve lived for more than 60 years. Let’s not talk about what I’ve heard. Whatever I saw with my own eyes, it fits the saying: “The rise of something may be fast, but its downfall is equally swift.” Has any person, family, community, place, or even a nation, ever managed to break free out of this cycle? Usually in the initial stage, everyone stays fully focused and puts in his/her best efforts. Maybe conditions were bad at the time, and everyone has to struggle to survive. Once the times change for the better, everyone loses focus and becomes lazy. In certain cases, as it has been a long time, complacency breeds, spreads and becomes a social norm. As such, even if the people are very capable, they can neither reverse the situation nor salvage it. There are also cases where a nation progresses and prospers — its rise could be either natural or due to rapid industrialisation spurred by the yearning for progression. When all human resources have been exhausted and problems crop up in management, the environment becomes more complicated and they lose control of the situation. Throughout history, there are various examples: a ruler ignores state affairs and eunuchs use the opportunity to seize power; a good system of governance ceases to function after the person who initiated it dies; people who lust for glory but end up in humiliation. None has managed to break out of this cycle.

Mao replied,

The people form the government; the government is the nation’s body. A new path lies ahead and it belongs to the people. The people build their own nation; everyone has a role to play. The government should pay attention to the people and the political party should perform its duty to its utmost and govern with virtue. We will not follow in the footsteps of those before us who have failed. The problem of a good system of governance ceasing to function after its initiator’s death can be avoided. We’ve already discovered a new path. We can break out of this cycle. This new path belongs to the people. The government will not become complacent only if it is under the supervision of the people. If everyone takes responsibility, a good system of governance will prevail.

Footnotes and the translated text can be found →there.

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Related

→ Successes to the Grassroots, January 29, 2014
→ Open the Skies for the Young, May 5, 2013
→ Become a Network Security Advisor, July 31, 2009

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Friday, April 8, 2016

The Panama Papers: Invested, but not Koppied

You needn’t be there yourself, but should your money? Those places are beginning to look like those parties you simply have to get an invitation to, if you want to matter: the “havens” where (many of) the rich and beautiful put their money. The Virgin Islands, for example. Or Panama. Or Luxemburg? Not sure. Ask a bank.

Reportedly, some members of Vladimir Putin‘s tight-knit inner circle do it. Reportedly, Hong Kong movie star Jackie Chan (成龍) does it. So do Thais. Lots of Indians, too. And maybe many Americans, but elsewhere.

Others, also reportedly, did so in the past. One of them even says that he lost money in the game.

But not so fast. Media tend to scandalize everything, don’t they?

According to ICIJ, the documents make public the offshore accounts of 140 politicians and public officials. The documents don’t necessarily detail anything illegal, but they do shine a light on the shadowy world of offshore finances,

National Public Radio (NPR) informs its listeners.

So, let’s not jump to conclusions. The problem, either way, is that the investors’ countries’ governments can’t get a picture of what is there. And once an investor is found on a list like the “Panama Papers”, with investments or activities formerly unknown to his country’s fiscal authorities (and/or the public), he’s got something to explain.

Like Argentine president Mauricio Macri, for example.

So, it’s beautiful to have some money there.

Unless the public begins to continuously ask questions about it.

Timely Exits from Paradise

If British prime minister David Cameron is right, the money he and his wife earned from an offshore trust were taxed. His problem, then, would be the general suspicon of the business.

The Cameron couple reportedly sold their shares in question in 2010, the year he became prime minister.

“Best Effect” and “Wealth Ming” reportedly ceased operations in 2012 and/or 2013. That was when CCP secretary general and state chairman Xi Jinping took his top positions. The two companies had been run in the Virgin Islands, and Deng Jiagui (邓家贵), husband to Xi’s older sister, had been the owner, Singaporean paper Zaobao reported on Tuesday.

And then, there’s Tsai Ying-yang (蔡瀛陽), one of the 16,785 Taiwanese Mossack Fonseca customers, the law firm the “Panama Papers” were leaked from. According to his lawyer, Lien Yuen-lung (連元龍), Tsay Ying-yang terminated his Koppie Limited company as soon as in 2009, the year following its establishment, so as to cut the losses – 30 percent of the investment, according to a phone interview Lien gave Reuters, as quoted by the Straits Times.

Tsai Ing-wen hasn’t commented herself, and maybe, she won’t any time soon. It doesn’t seem that too much pressure has mounted so far. But questions are asked all the same. On Wednesday, KMT legislators William Tseng (曾銘宗), Johnny Chiang (江啟臣), and Lee Yan-hsiu (李彥秀) told a press conference that in the “many cases” where the Tsai family had encountered controversy, Tsai Ying-yangs name had emerged, and this “gave cause for doubts” (會起人疑竇).

An Emerging KMT Opposition Pattern

William Tseng may become a regular questioner, concerning the financial affairs of Tsai’s family people. One of the “controversies” he had quoted had been the issue of a press conference on March 24. There, with different KMT colleagues,  but the same kind of artwork on the wall behind the panel, showing the suspect of the day, Tseng dealt with the issue of Academica Sinica president Wong Chi-huey‘s daughter’s role as a shareholder of OBI Pharma Inc..

KMT legislators press conference artwork

KMT representations:
Mind the guys in the background

One of his fellow legislators, Alicia Wang (王育敏), raised the issue of the company’s shareholder structure (and neatly placed Tsai’s brother there, too, maybe just to make his name available for quote by Tseng on other occasions:

“President-elect Tsai Ing-wen’s (蔡英文) brother and sister-in-law are also shareholders, and so is Wong’s daughter, Wong Yu-shioh (翁郁秀). Are others involved?”

Diplomatic Relations, but no Tax Treaty

The “Panama Papers”, as far as they concern Taiwanese customers, contain not only individuals, but companies, too: Taiwan Semiconductor Manufacturing (founding chairman Morris Chang, who served Taiwan as APEC representative in 2006), TransAsia Airways (more recently in the news for the tragic Flight 235 crash), Yang Ming Marine Transport Corporation, Wei Chuan Food Corporation (in the news since 2013), and the Executive Yuan’s National Development Fund.

The Development Fund was not a taxable organization, Taiwan’s foreign broadcaster Radio Taiwan International (RTI) quotes finance minister Chang Sheng-ford. He used the example to make the point that to suggest that some 16,000 keyword search results for Taiwan in the “Panama Papers” did not signify 16,000 cases of tax evasion. That’s just not the way to look at it.

Chang reportedly also said that while, “if necessary”, Taiwan would establish a Panama Papers working group and start investigating the most high risk people and agencies for tax evasion, the country had no tax treaty with Panama. Also, a Taiwanese anti-tax evasion law had not yet been passed.

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Related

The Panama Papers
Achselzucken schadet, Der Freitag, Apr 7, 2016
The Panama Papers, FoarP, Apr 6, 2016

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