February 28, 2006
Going public

China executes about 8,000 people a year, or 22 a day and yet they don't have too many candlelight vigils going on. The judiciary is trying to better regulate executions and bring the system out into the open:

China, which executes more people than any other country, is to hold open hearings for a large number of death penalty appeals in an effort to better regulate executions, a legal scholar said Monday. From the second half of 2006, all death penalty appeals which go to a provincial high court will be heard publicly, a departure from the usual practice of closed reviews and investigations, said Liu Renwen, a scholar at the Chinese Academy of Social Sciences...

With the judicial system under scrutiny after a series of widely publicized wrongful convictions, the Supreme Court has also moved to reclaim its right to a final review of death sentences, but Liu said the policy was meeting resistance from lower courts. "When the Supreme Court can take this power back is still a question," Liu told foreign correspondents. "Local governments think it is a good tool to control public security. If they lose such power they think, of course, it would not be good."

This latter part refers to the announcement last October that the Supreme People's Court is struggling to re-assert control over capital punishment in response to widespread outrage at arbitrary sentencing. What is missing from the debate is the pros and cons of capital punishment. The article notes:
Some 68 crimes in China can incur the death penalty, about half of which are non-violent offences, Liu said.

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[boomerang] Posted by Simon at 09:13
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Wooly thinking Part 2

Liu Kin-ming of The Standard goes to Congress's hearings on American companies and China's internet and comes out angry. So angry as to make no sense. The upshot of the opinion piece is that America's technology firms are evil for obeying China's laws because China isn't the rule of law but rule by law. How defying these laws helps improves matters is left unanswered. Later, there is this:

It's really infuriating to see these companies, which have prospered in an environment only because of the principles enshrined in a constitution adopted in 1787 and the functioning of the greatest democracy, to compare China to the United States. To suggest what they're facing in China is no different than what they may face in their own country, the companies' logic smacks of the kind of moral equivalence which is prevalent in anti-American crowds.
In terms of bows, this is an extremely long one. The tech companies were pointing out that even the United States has laws it expects companies operating there to comply with. Clearly China is no USA, but is ignoring the demands of police in China easier than those in the USA because of that? If a company goes into a country, it must follow that country's laws. And if a company ignores a growing market such as China they are breaching their duty to their shareholders, a legally enforceable fidicuiary duty to manage the company in the best interests of its owners.

The rest of the opinion piece slams the various questioners, such as:

Some Democrats were trying to lessen the guilt of the Internet companies. Adam Smith, from the state where Microsoft is based, asked: "Let's assume for a moment that no US tech company does business in China. Does it get better? Is it less repressive? Does China move forward? I don't think so."
Apparently the views of duly elected representatives from Washington state don't matter as much as those from elsewhere. Yet this is the most crucial question in the debate. It's a shame the article doesn't even try and address it. Will China's home grown internet and technology companies be held to the same standards and criticisms? Is China better or worse off thanks to these companies and their operations in China? Do you see the world in black and white or in shades of gray? Is an absolute ideal better than pragmatism? The problem with doing what's right is that what's right differs between people, cultures and countries.

I wonder if Congress will ever call up some Chinese internet users for their views?

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[boomerang] Posted by Simon at 09:05
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Wooly thinking Part 1

The letters page of the SCMP can be a dangerous place. Take this rant from today's paper:

I am fed up with hearing the refrain that many people fall outside the direct tax net (82 per cent of the population, says Hong Kong General Chamber of Commerce chief executive Eden Woon Yi-teng; 42 per cent of the workforce, says Post columnist Tom Holland).

In fact, most of the workforce pays indirectly by being deprived of decent salaries and because there is no minimum wage. They also indirectly pay rates (if they rent public or private units) as well as tax. Yet they have as much right to a democratic life as Mr Woon. These are people who do not get the huge bonuses paid to company directors, nor do they have very high salaries and benefits, such as the pensions of senior civil servants. They are the poor, who work for little, contribute hugely to the economy and have little to show when they retire without a pension. Their homes are often small, they have to apply for education waivers and may yet face the prospect of applying for charity for health care, if hospital charges rise.

They will not be able to afford health insurance, for which taxpayers may get tax breaks, nor will they get tax allowances for children and housing. Our financial secretary showed much more concern for the "haves", that is, the Liberal Party voters, than the "have nots".

Mr or Mrs Name and Address Supplied manages to get so much wrong in such a short space. Ask a first year economics student about minimum wages and they will tell you that artificial floors on price (wages are the price of labour) can prevent an equilibrium developing. In English that means that a minimum wage means some people who would be prepared to work for less than the minimum will be prevented from doing so, and employers who would employ such people are also prevented from doing so. You have the supply, you have the demand, but the minimum wage prevents the two from getting together. Even stranger is the idea that the poorly paid "contribute hugely to the economy". Whether you like it or not, our society measures contributions to the economy in an extremely effective manner - money. The poor don't get tax breaks for health insurance - they get free access to great public hospitals. They don't get access to allowances for children and housing because they don't pay income tax and live in government subsidised housing. It seems apt to quote new Hospital Authority chief Shane Solomon:
Speaking at an impromptu media gathering at the authority's headquarters Monday, Solomon said one of the things that intrigued him was that Hong Kong has a low tax policy and a highly subsidized health-care system at the same time.

"Of course, my view is superficial at this stage, but from observation it is a country with very low taxation and a highly subsidized health system ... a bit unusual," he said.

The common fallacy is that tax cuts favour the rich. In fact, tax cuts favour those who pay the most tax, which funnily enough happens to be the rich. The poor do it tough - silly stuff like this letter won't make things any better.

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[boomerang] Posted by Simon at 08:47
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February 27, 2006
Avon calling

The seedy underbelly of globalisation is again exposed. China has granted permission for Avon to recommence direct-selling of its products as part of its market access agreements for joining the WTO. Encyclopedias, life insurers and vacuum cleaner shares all jumped at the news. So did shares in companies selling Mace and flame throwers.

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[boomerang] Posted by Simon at 16:48
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"Socialist" China

Following up on the continue rise of the new Marxism in China, Wu Zhong in today's Standard looks at the socialist contradiction in the new China:

Despite China's sweeping reforms that have transformed a socialist command economy into a somewhat capitalist-style market, socialist ideology continues to manifest itself whenever there's a chance.
Absolutely read the whole article - it nicely skewers one Marxist academic and points out two recent examples of ideology trying to re-assert itself over reality. As the article concludes, concern about China's wealth gap are best addressed by alleviating poverty (i.e. raising the bottom up) rather than redistribution (i.e. dragging the top down). And one point that often gets missed. The rich getting richer doesn't mean the poor are getting poorer - the whole pie is getting bigger. In absolute terms, everyone is getting richer, but in relative terms some are getting richer faster than others.

As we say at family reunions, it's all relative.

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[boomerang] Posted by Simon at 13:06
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Great moments in HK sport

The SCMP reports that a start has been made on Hong Kong's equestrian facilities for the 2008 Olympics:

Work on constructing equestrian facilities for the 2008 Olympics has started in Fanling, and the government will this week announce the launch of a company to organise the event.
It is understood the equestrian company was registered with the Company Registry on February 15...A government source said the Beijing Organising Committee for the Olympic Games (Bocog) was expected to inject between $300 million and $500 million for the company's operation. The Hong Kong Jockey Club is to spend another $800 million to construct the games venues in Sha Tin and Fanling.
So how many people does it take to organise the horse-y events of the 2008 Olympics, and more importantly, where do you put them all?
It is understood the equestrian company was registered with the Company Registry on February 15. An office will be set up in Wan Chai and up to 80 full-time staff will be hired to prepare for the Games events. The company will operate until the end of 2008.
For the geographically ignorant, please see the map below the jump. Wouldn't it make more sense, and be far cheaper, to rent space in Fanling for these people?

hkmap.gif



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[boomerang] Posted by Simon at 08:34
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February 24, 2006
Keeping kids safe

Spike points out that China is banning a growing menace. Via the BBC:

Cartoons that blend live-action actors with animation are to be banned from TV in China...The move is aimed at promoting Chinese animators and apparently curbing the use of foreign cartoons.

China's State Administration of Radio Film and Television said people who flout the ban will be punished.

Lucky bastards won't have to put up with crap like this or this. Parents of young kids around the world will soon be beating a path to China's door, desperate to escape the inanity that largely is children's animation. Is that China's hidden agenda: attracting migrants? Could that be the solution to the coming demographic crunch thanks to the one-child policy? Isn't it easier just to remove the one-child policy anyway?

But hark, think of what horrendous wonders China's animators will come up with to fill this obvious gap in the market. And marvel at the stupidity of such a ban when any of the banned shows will still be freely available on DVD for a couple of yuan.

Invoking Occam's razor, the real reason for this ban is obvious: the head of the State Administration of Radio Film and Television the father of young kids.

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[boomerang] Posted by Simon at 18:32
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February 23, 2006
Take it away, Charlie
...in the background was the sneaking worry about creeping corruption and the gradual undermining of Hong Kong's greatest asset - the rule of law
Prince Charles in 1997, from his The Handover of Hong Kong or The Great Chinese Takeaway.

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[boomerang] Posted by Simon at 18:29
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The New Marxists

Tim Johnson at Knight Ridder reports on China's latest modernisation efforts...in Marxism. The article rehashes the new emphasis by China's leadership on Marxism in a desperate search for a new ideology. It seems to be building on the work of the so-called "new leftists". The irony is the it is the Communist Party that is trying to get in touch with the ideology of its founding philosopher. An even greater irony is China has enjoyed boom times only since it ditched the policies of Mao, Lenin and Marx. The implication is that China's leadership is starting to fear that the economic boom that has given the party legitimacy in the past 25 years may not last forever, or that perhaps it isn't enough to retain the confidence of its people. This renewed emphasis on Marxism is quaint at the moment and is being manifested as think-tanks and a push to help the rural poor. But is the leadership desperate enough that such thought could eventually pervade its economic policies? Perhaps not yet, but one day it could be. If that happens the interests of the leadership will sharply diverge from the interests of the lead, with massive consequences.

This week also marks 50 years since Nikita Khrushchev's "secret speech", where he denounced some (but not all) of the evils of Stalin. China has never had such a speech, secret or otherwise. It is a poorer place for it.

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[boomerang] Posted by Simon at 13:20
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February 22, 2006
The intimidation

The problem in giving up to despots is that you know the beginning but not the end.

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[boomerang] Posted by Enzo at 22:36
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HK's Limits of Governance

Today we had the revelation that after years of work, and millions of dollars of feasibility studies, it was decided that the plans for the West Kowloon Cultural District had to go back to the drawing board. The background is well covered by the New York Times and the Standard (for a more local view). In both articles, the journos portray the Hong Kong government, with its overly-amibitious and idealistic plans caught between Scylla (the local property developers) and Charybdis (the Hong Kong people), having to scuttle their ship, or at least come back around for another pass later.

To me, though, it seems to indicate the limits of legitimacy of a Hong Kong government that is not elected by popular mandate. The government's inability to counter both the official and unofficial power of local property developers, and also the skepticism of the public, is because they do not have a strong general mandate of the will of the people to go ahead with their agenda(s).

Many popularly elected governments, it is true, would have the same problems with vested interests, particularly one that makes up as much of the economy as the property tycoons. But if they had been chosen by the people, at least they could brandish that endorsement to get major agenda items like this done.

The process of getting the mandate for a program like this, too, would have forced the government to really explain to the Hong Kong people why they need a cultural centre, and why bringing in the Pompidou or the Guggenheim is making the city more cosmopolitan rather than an example of cultural imperialism. That process would have also highlighted weaknesses in their plan that they would need to address.

The government didn't bother doing it because they didn't have to. And now they are paying the price. They must face the fact that public consultations aren't enough anymore in a complex polity like Hong Kong. The city cannot be run by a civil service on autopilot. Democratic politics is not an inconvenience - it is the fairest way an advanced economy with a highly mature population can sort out what ought to be done.

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[boomerang] Posted by HK Dave at 18:27
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A tale of two Chinas

There's a new buzzword entering the Chinese lexicon: "new socialist countryside". As part of its efforts to help the 800 million Chinese peasants who are seeing their city cousins get richer far faster than they are, the CCP has put out a policy statement that contains enough motherhood statements to last a lifetime. The real test is whether these good intentions of the central government can be translated into facts on the ground once provincial and regional authorities get involved. Beijing, despite appearances, does not have a strong grip over the provinces and those governments are often intimately involved with state owned enterprises. That leads to clashes with peasants over land rights, development, pollution and more. In a democracy, of course, the peasantry can vote the bastards out at the next election. But examples such as Taishi show that even getting rid of corrupt village leaders is a difficult and dangerous task. The government knows about these problems and pledges to "strictly protect interests of land-lost farmers" while cutting the numbers of township-level officials. In short, we're watching a struggle between the central and provincial governments, with 800 million livelihoods in the balance.

Lest Hong Kongers feel that all these peasants are hogging the limelight, you can sleep easy knowing Hong Kong remains key to the mainland's bright future.

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[boomerang] Posted by Simon at 09:49
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West of Eden

It takes quite an effort to not only annoy the citizens of this town, but the property developers as well. The government has gone back to the drawing board on the West Kowloon cultural district, having realised they can't even please some of the people some of the time with the tortured process this development has taken to date. The answer to appoint a "high powered" committee to again assess what facilities are needed, which makes one wonder what the government has been doing until now if it just realised the need for such a body.

Is it mildly embarrassing that a large chunk of reclaimed land sits idle in such a prominent harbourfront position? Will some bright spark now propose that Kai Tak become the new cultural district, the government ditch the Tamar proposal and turn it into the West Kowloon government district? Or will even more dangerous ideas take hold, such as turning West Kowloon into a Central Park style oasis in the middle of a congested and polluted city?

No, Hong Kong quivers in anticipation with how the government will turn West Kowloon into even more of a gift to property developers. The developers have spent an estimated HK$300 million on West Kowloon so far - and they aren't stupid businesses. They spent the money in the hope of far greater returns and that hasn't gone away, even if the structure of the proposals will change. In the interim, the city wonders what is the next white elephant on the government's plate? The government's DNA contains a boondoggle gene and it is a dominant one.

Update

Expressing itself quickly, the boondoggle gene forces to Henry Tang propose a gold warehouse at the airport in today's budget. Fort Knox at Chek Lap Kok.

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[boomerang] Posted by Simon at 09:25
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February 21, 2006
Kai Tak landing photos

For the nostalgia buffs, some photos of planes landing at the old Kai Tak airport below the jump. Feel free to share your own white knuckle experiences.

Click each thumbnail to enlarge.

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[boomerang] Posted by Simon at 13:31
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Class wordfare

In the past month there have been several examples of the rise of Marxism in places such as China's central bank and a new Marxist think tank. But did you realise that Marxist class analysis pervades even the world's free-est economy, that darling of laissez-faire economics, Hong Kong? Tomorrow sees runner-up Chief Executive Henry Tang deliver the annual budget, where he explains how another year of windfall gains from restricted land sales and a narrow income tax on the top 10% will keep the city sweet for another year. He has carefully leaked his intention to set up a committee to examine a goods and services tax, which will only be safely implemented long after the 2007 Chief Executive elections. Hong Kong is one of the last remaining developed economies to not have such a tax.

But the details of the budget can wait. What always happens in the lead up to the budget is pleas from various interest groups for tax cuts or government hand-outs. This is not unique to Hong Kong. What does seem unique is the extent to which the debate is framed in terms of class. The newspapers and radio constantly refer to the "lower middle class", the "middle class" and even the "sandwich class". It would seem that both the proleteriat (too poor to worry about) and bourgeoisie (the source of all revenue) are not worthy of mention, but this mythical middle class is where the action is. Who are this middle class? Why are they so worthy of the government's attention? Why always this focus on a particular class (or any class at all for that matter) - the very notion seems absurd in a modern economy.

And they don't even get to vote. But perhaps that's the point. If you don't get legitimacy through the ballot box, you need to get it through keeping the populace sweet. In this town the property developers pay up in the land auctions to fund the government to keep the punters sweet. I don't think that's what Karl had in mind.

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[boomerang] Posted by Simon at 09:13
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February 20, 2006
Cracks in Hong Kong's wall

Hong Kong is an immigrant's city - it has been made great on the back of the efforts of those coming to turn a small fishing village into a world class city. But one of the city's less proclaimed groups face daily discimination despite the massive amounts they contribute to the place: the army of domestic workers. For example, a domestic worker can never claim the permanent residency in Hong Kong, even if they meet all the other criteria. All other visa holders can qualify (basically you have to live in Hong Kong for 7 years). So today's SCMP report proves very interesting indeed:

Immigration officials have been urged to clarify their policy after two children of a long-time Filipino domestic helper were granted right of abode. Hong Kong-born Dariel Domingo, 13, and his sister, Darlene, 11 - who study at local schools, speak Cantonese and read and write Chinese - were granted right of abode on February 3.

The children are due to collect their Hong Kong permanent identity cards tomorrow.

Mark Daly, a human rights lawyer who helped the children, said: "What is unusual is the children being granted [right of abode] and the parents not having it."

Administrative slip-up or breaking change in Hong Kong's immigration policies? What is the status of the parents should they lose their jobs and thus their domestic helper visas? And how does this leave those children denied right of abode by Beijing in the first "interpretation" of the Basic Law? If Immigration now gives the parents right of abode, it seems impossible to deny the right of abode in the opposite direction (i.e. from parents to children).

Great moments in policy progress, brought to you by some flunky in Immigration Tower.

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[boomerang] Posted by Simon at 14:22
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February 17, 2006
Book review: The Undercover Economist

The Undercover Economist by Tim Harford

This book is simply great economic journalism extended into book form. Unlike Freakonomics, which demonstrates economics is a social science, this book start with a basic introduction to some key economic concepts, starting with Ricardo, the value of scarcity and the margin rather than the average.

The genius of the book is the introduction of economic reasoning in a very understandable and easy to read manner, using real world examples. The final chapter on China is worth the price of the book alone, being the most consise and clear outlining of the modern Chinese economic "miracle" out of the depths of Mao's economic destruction. So is the chapter on globalisation, where Harford gives a truly impressive smackdown of all the hogwash that often passes for "debate" in this topic. Today's example is Greenpeace's glee at stopping the stripping of a French aircraft carrier in India, even though it will now place thousands of Indians out of work. The problem for those with an economics background is so much of this stuff is so obvious that it becomes difficult to even acknowledge there are counter-opinions. Another example is the beautiful job Harford does of explaining how protectionism hurts most people but helps a noisy few.

So who should buy this book? Everyone because economics affects us all. If you enjoy Starbucks coffee, think French farmers deserve their subsidies, want to know how to solve traffic congestion, want to understand the stock markets, the best way to run an auction or why poor countries are poor and rich countries are rich, this is the book for you. It is particularly relevant for Hong Kong's civil servants and politicians. Try this from page 78:

...economists believe there's an important difference between being in favor of markets and being in favor of business, especially particular business. A politician who is in favor of markets believes in the importance of competition and wants to prevent businesses from getting too much scarcity power. A politician who's too influenced by corporate lobbyists will do exactly the reverse.
Can someone give me Donald Tsang's mailing address please?

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[boomerang] Posted by Simon at 13:35
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February 16, 2006
Washington is between Japan & China

Jamestown Foundation's China Brief this time contains a look by Willy Lam at Beijing's use of Washington to rein in Japan. It is an interesting spin on the usual take that Washington and Tokyo are firm friends in the face of an aggressively rising China. Which kind of realpolitik wins out here? Clearly the Japan-America relationship is strong, but the Japanese are clearly (and rightfull) worried about the prospect of that alliance shifting. Will there come a day when America values its China relationship more than its Japanese one?

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[boomerang] Posted by Simon at 16:53
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Nuking Pollution

I have been a bit of a ranter in these pages about the horrible pollution in China, and how much of it does drift south to Hong Kong.

China has just announced that it is building two large new nuclear power plants, one in Shaoguan in northern Guangdong, and the other near the ancient port city of Quanzhou, in Fujian.

China currently has 4 nuclear plants in operation, and plans to build 30 more by 2020 to increase energy supplied from 'nu-cu-lar' power from 2% to 6% over that period. It is meant to deal with power consumption in urban areas and to cut down on pollution from dirty coal-fired plants.

But not so fast. Even in a best case scenario, if nuclear power still only serves 6% of power in 2020 even with 30 new plants, imagine how many more coal-fired plants there'll be. Given Chinese government assumptions about power requirements almost tripling in the next 15 years, it basically means that the number of coal burning stations will more than double, no doubt particularly in the factory-laden Guangdong area.

There's also the question proper maintenance, and of where all those spent radioactive rods are going. Are they all getting shipped to Xinjiang's Taklamakan Desert?

Double the plants, double the smog. Eeech. It's time to get out of Hong Kong. Or start investing in bottled air.

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[boomerang] Posted by HK Dave at 11:10
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Running Dogs and CNY

Running Dog explains the media rituals of Chinese New Year.

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[boomerang] Posted by Simon at 10:54
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Chinese Agents in US?

There was an AP report last night from Atlanta where an active Fa Lun Gong supporter had his home broken into, got beaten up, and had two laptops taken by three Asian men that apparently spoke both Korean and Mandarin. The Fa Lun Gong supporter seems to have no doubt that the perpetrators were Chinese agents.

The FBI had no comment except that they were looking into it.

The French organization Reporters without Borders claims that Chinese agents have abused Fa Lun Gong supporters in Hong Kong, South Africa and Australia, but that this was the first case reported of such a serious incident in the US.

Is this a case of Agents Chinois Sans Frontieres? Would be very bad PR for China in the US, to put it mildly, when religious freedom is a hot-button issue in the American southern states, not to mention a gross violation of the world hegemon's sovereignty. But let's see how the evidence in the case develops first.

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[boomerang] Posted by HK Dave at 10:52
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February 15, 2006
The real China news

Admist all the ongoing bashing of American companies that are being labelled traitors and collaborators with the Chinese government in internet censorship efforts, important developments are likely to be missed. For example the IHT reports on an extra-ordinary protest by senior ex-officials of the CCP and scholars against the closure of Beijing magazine Freezing Point. Amongst the protesters is Mao's former secretary and biographer, Liu Rui. Absolutely read the whole article.

Another must read piece is ESWN's translation of an article in Caijing, seen as a veiled warning from the central government to the provinces to avoid obstructing reforms through their collaboration with local businesses.

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[boomerang] Posted by Simon at 12:37
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A dash of Hemlock

Hemlock's genius is in his ability to concisely summarise complicated issues with just the right amount of snark. Today's example is a perfect summary of the need for a sales tax in Hong Kong, Nepal, the problems of functional constituencies and the city's economic structure....all in 3 paragraphs:

IMF asks Nepal to restore peace. In a similarly utopian vein, the experts on the global economy urge Hong Kong to implement a goods and services tax. Since we have a Government that can't even push through a long-overdue few dollars' hike in cross-harbour tunnel tolls or hospital outpatients' fees, this is asking rather a lot. Our visionary leaders can't do anything that's in the interests of the community, because we're not a community. We are "various sectors" Can we ban smoking in restaurants? No, because the Catering Functional Constituency (3,900 votes cast at last election) doesn't want it. Can we increase punishments for minibus drivers who run red lights and kill people? No, because the Transport Functional Constituency (seat uncontested at last election) doesn't like it. The bigger the potential public good, the more self-serving interest groups emerge to wield their vetoes. Citizens and consumers might want better schools, cleaner air and decent homes, but providers of goods and services, and their official protectors, come first.

A sales levy that replaced other sources of revenue would benefit the thrifty, the productive and the wealth creators, such as the 17 of us who pay salaries tax. It would hit some of the lower orders; the sort of people on modest pay who will stand in a line for hours on their day off for a free baseball cap. But with their subsidized education, housing and health care, it wouldn't hurt them to contribute a bit. The pain could be considered a form of civic education. A sales tax would also be opposed by the usual tourism and retail industry vermin, who would argue that the sort of idiots who pay $5,000 for a handbag will flee our shores if we slap a few percent onto the price tag. If only life were so good.

The real potential losers, however, would be the big boys. In theory, a broad consumption levy could replace much of the revenue currently raised from sales of land and property development rights. This is the Government's slice of the wealth that is sucked relentlessly from the rest of the economy by the property cartel in the form of inflated house prices and rents, which of course cause the severe, job-destroying economic distortions and poor quality of life many Hongkongers call normal. Add to this the huge power that ownership and tight rationing of land gives to unelected officials and then consider that a universal sales tax would be the ultimate argument for universal suffrage and spreading tranquility the length and breadth of the Himalayas starts to look like a cinch.

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[boomerang] Posted by Simon at 12:25
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February 14, 2006
A New Transparency in China

For Big Brother and China's KTVs, that is. A new law that will go into effect March 1st, stipulates that all discos and karaoke lounges must install surveillance equipment at all entrances, exits and public hallways. Copies of the tapes must be kept for 30 days.

In addition, all private rooms, a staple of the KTV industry (which is most often a front for prostitution) must have non-locking doors and a transparent window into the room from the public hallway.

It is ostensibly to address the fire that killed Chinese revellers on New Years' Day, but I don't think any sensible person believes that.

Oh, and it also tosses in as a rule that no officials can any longer have an interest (of the ownership variety, at least) in nightclubs of any kind.

I wonder how far this new rule will be enforced outside of Beijing's city limits (or even within them, for that matter?). The clean-up of the CCP's image appears to be underway. Let's see if they can find the janitors to do the job - on a regular basis.

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[boomerang] Posted by HK Dave at 17:52
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February 13, 2006
Trying to Clean Up Macau

I read today about some small potato immigration officials in Macau that got caught 'red-handed' with bribes they forced out of an air cargo company. I applaud the effort, but wonder how it is that far more egregious cases of corruption in the former Portuguese enclave seem to always go completely unpunished. For too long have mutual back-scratching between members of the (dubious) private sector and government officials gone unpunished.

When I encounter corruption in China, I find that people accept its existence, but also tend to believe (or are resigned to the fact) that there will be a day in the future when those practices may no longer be possible.

But in Macau, a city that has arguably been in permanent twilight for two centuries, not only the corruption itself but also attitudes have become so institutionalized and entrenched that everyone regards it as inevitable. New arrivals, hoping that the current casino boom will also bring about change in the formerly sleepy backwater, often come to realize how utterly futile their hopes are, given how much local interests quietly despise all these newcomers that want to change old Macau's ancient traditions of quiet corruption.

I never thought I'd say this, but I think that any change in social mores regarding corruption in Macau will have to come from China. And maybe they will, as the mainland starts to belatedly grapple with the social and political dimensions of corruption. If Hong Kong is the laboratory where China can experiment with democracy, Macau can be the lab where China tries out new graft-busting techniques.

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[boomerang] Posted by HK Dave at 15:35
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Breathtaking Hong Kong

Marathons are difficult things...but when 22 runners end up in hospital thanks largely to heavy air pollution, you know there's a problem. The annual Hong Kong marathon has seen at least one man listed as critical. It is impossible to work out how many of the problems were a result of air pollution, but this year's race had double the problem cases of last year.

Yesterday's roadside air pollution reading was "very" high (as high as 142 in Causeway Bay and 136 in Central), a level that the Environmental Protection Department warns caution is required for anyone with heart of respiratory illnesses...perhaps they'll now add marathon runners.

I don't know Donald Tsang realises it yet, but the environmental and air pollution in particular are fast becoming a major issue. A nice big fat park at West Kowloon could work wonders...and cue the jokes about "Hong Kong - take your breath away".

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[boomerang] Posted by Simon at 09:20
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February 10, 2006
Sharing know-how

In today's coals to Newcastle file, The Standard reports that Hong Kong's finest are sharing the valuable head-kicking lessons learnt during the WTO conference with the one group of people you'd think wouldn't need the help at all...China's police:

Hong Kong police are sharing their crime fighting and crowd control skills with their mainland counterparts in an effort to ensure harmony in a country where public demonstrations and police-civilian clashes are on the rise, Police Commissioner Dick Lee said. In a speech to the Lion's Club Thursday, Lee disclosed that 100 junior police staffers were recently sent to Chinese People's Public Security University in Beijing and other law enforcement agencies and police training schools throughout the mainland.

In addition to sharing the experiences they faced during December's World Trade Organization demonstrations and the 2004 tsunami relief efforts, the Hong Kong cops also received some training and observed their mainland counterparts on the job.

Next time there's an uppity little village in China, they can look forward to a good ol' fashioned Hong Kong smack-down, rather than those crude and flimsy Mainland techniques.

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[boomerang] Posted by Simon at 08:55
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Chinese Restaurants in Kabul

A rather interesting article in the Independent about the Chinese 'restaurants' in Kabul. They cater more to the diplomatic and NGO corps, and in addition to serving food, the skimpily-clad Chinese ladies in the restaurants also offer themselves as prostitutes. The Afghan Interior Ministry has arrested 46 of them. Presumably they were deported, shipped north to Afghanistan's very short 76km border with China, or flown back.

There is an uproar, of course, with the blame predictably going to the West. Let us set aside queries of how prostitution can be so widespread in China, a country which is starting to have a significant male-female imbalance. Prostitution, while underground, has always existed in Afghanistan. And allow me to disabuse anyone who believes that a highly religious Islamic society Afghanistan's could not also contain the world's oldest profession. I remember while I was travelling in Iran, there was an article in the Iranian English daily about how in Iran's holiest city, Mashad, two dozen local prostitutes were arrested. One dubious fellow, I remember, in Kerman, actually offered me his sister. I demurred. When I was in Pakistan, one chuffed local gent told me about his exploits with dancing girls in, this instance, the amusingly-named city of Lahore.

But really this is an economic issue. What makes Afghanistan different from Iran or a city like Lahore, is that there are probably far fewer people that can afford such 'luxuries' (and certainly compared to Kabul before the Russian revolution), or, in the case of women, earn a living off of the profession. That there are wealthy men in Kabul is evidenced by the 'steady stream' of local clientele. It's just a shame that asking for the nearest Chinese restaurant in Afghanistan takes on an entirely dodgy new meaning.

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[boomerang] Posted by HK Dave at 08:49
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February 09, 2006
Censor this

Two contrasting articles on the policing of China's internet.

Frontpage magazine interviews author Ethan Gutmann, who wrote Losing the New China: a Story of American Commerce, Desire and Betrayal. Gutmann tells us why he was right all along and how evil all the various IT companies doing business with China's government are (it's certainly not Philip Morris after the newly announced ban on new cigarette factories in the world's tar stick capital).

The other, more interesting, article is a translation by ESWN of a day in the life of a Chinese internet policewoman.

Compare and contrast the reality and the bombast.

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[boomerang] Posted by Simon at 16:17
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China 80 Years Behind US: People's Daily

Amusing article today on a study done by the Chinese Academy of Sciences on how far behind China is in terms of social and economic development. They have concluded that China is still a less developed country that is 80 years behind the US, France, Sweden and Germany. They said economically that there was less of a gap.

Unsurprisingly, there was no mention of the gap in political development.

While it is a welcome respite from Chinese triumphalism and scaremongering Western journalist reports, one hopes this will not serve as a justification for why some things don't work as well as they should (i.e., thousands of miners getting killed each year, and the government subsequently announcing they are shooting for a 3% reduction in deaths this year).

In any case, it would be interesting to note why such a study was commissioned in the first place.

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[boomerang] Posted by HK Dave at 13:39
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February 08, 2006
Chen's Desperate Gamble

An excellent article by former Princeton professor and now director of the China program at the Carnegie Endowment for International Peace in Washington, reprinted in the Korea Herald.

It analyzes how Chen has basically gone from hero to zero in a two-year period, and how instead of being chastened by lack of support for his independence agenda, he is attempting to ratchet up tension further, to the displeasure of Washington, China and, it seems, a significant portion of the voting public.

Pei suggests three reasons for the failure of Chen's once seemingly unstoppable momentum:

Broadly speaking, three seismic changes since President Chen's re-election victory two years ago have greatly altered the short- to medium-term political landscape both in Taiwan and across the Taiwan Strait.

First, alarmed by Chen's thinly disguised ploy to seek de jure independence through the passage of a new Constitution enacted by a plebiscite, Taiwan's voters decided to end the President's gambit by refusing to give the DPP a majority in the island's legislative chamber (a condition which would be necessary to give a new Constitution any realistic chance of passage) in the watershed election of December 2004....

Second, China's new leadership adjusted its Taiwan policy in two dramatic directions. On the one hand, Beijing's new leaders concluded that they must make their threat of military action credible. Consequently, the mainland accelerated military preparations for a conflict with Taiwan in light of Chen's vow to pass a new Constitution.

Chinese leaders also set in motion a legislative process to obtain pre-authorization for the use of force - which culminated in the passage of an "anti-secession law" in March last year.

On the other hand, China's President Hu Jintao coupled the threat of the use of force with a charm offensive, inviting the leaders of Taiwan's main opposition parties to visit the mainland and offering a package of economic benefits and goodwill gestures (a pair of pandas) to Taiwan...

Third, President George W. Bush, perhaps the most pro-Taiwan American president in history, re-adjusted his policy in late 2004. Although the Bush administration approved the largest arms package for sale to Taiwan in 2001 and substantially upgraded ties with Taiwan in the past five years, Washington was greatly alarmed by Chen's apparent strategy of taking advantage of U.S. support and seeking a dangerous confrontation with mainland China.

Read the full article with the link up top.

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Goodbye and hello
Via a little birdie, soon to be editor-in-chief at SCMP Mark Clifford's departing email at The Standard:
Dear Colleagues,

It's with very mixed emotions that I leave today. We have built an extraordinary team here over the past two years, one that includes some of the most talented people I've ever worked with. Through talent, smarts, skill and a lot hard work, we've re-established The Standard as a force to be reckoned with in what's probably the world's most crowded and competitive newspaper market.

We've won numerous prizes, posted circulation gains that would have most other publishers in the world drooling with envy and pushed up advertising revenues even while diversifying our revenue base away from its traditional over-reliance on Notices. We've built a well-regarded and increasingly heavily-trafficked website. And our marketing and circulation team has made sure that people know about us and that we are selling newspapers. We have a wonderful Weekend section that is a refreshing counterpoint to the daily diet of well-regarded Business and Metro news. Our Sports and Opinion sections have numerous and growing numbers of fans.

All this and the much much more that I didn't write about are a reflection of what you do every day. I want to thank all of you, as well as those who have left. It would be unfair to single anyone out but I do want to note the tremendous contributions of Lin and John. Despite great differences in temperament, management style and, most important, the direction the newspaper should go, Lin and John were instrumental in making this a newspaper that matters.

So, too, was Charles Ho. Charles gave me the best thing that a newspaper owner can give an editor and publisher: freedom to run the paper I wanted and the resources to do it.

Finally, I hope you all will give your full support to Ivan Tong as he takes The Standard to the next stage in its long history. The Standard has a great future. It's up to all of you to make it happen.

With best wishes for every continued success,

Mark
Of course, The Standard may have a great future, but Mr Clifford's future will involve impeding it. And from what I can gather, he's made a good start.

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[boomerang] Posted by Simon at 13:32
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It's just a phase

China's Orwellian named Ministry of Public Security last month announced an almost 7% rise in recorded "disturbances to public order", to 87,000 last year. That's more than 200 riots a day. Even in a country as vast and populous as China, that's a lot of disturbances. But the SCMP reports the Ministry isn't worried...it's all just a phase:

Mainland police have played down the growing wave of social unrest sweeping the country, describing it as a phase common to fast-growing economies worldwide. Ministry of Public Security spokesman Wu Heping said in Beijing yesterday that the rural riot was "a concept that does not exist".

"In the phase [of fast economic development], the interests, relations and positions of different parts [of society] are undergoing adjustment. In the process of adjusting, there will accordingly be an increase in [the number of] common people who, in order to defend their own interests, express their pleas to government and relevant departments through various channels," Mr Wu said.

"And I believe every country has had this process and this phase."

They're not riots, although the spokeman declined to give us the "correct" word for pitchfork wielding peasants. Here's a question for the history buffs - did America's Wild West see anything like this number of disputes?

That aside, the number of "disturbances" has risen from 10,000 a decade ago to 87,000 last year. That's one hell of a phase to be going through.

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[boomerang] Posted by Simon at 08:26
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February 07, 2006
Linklets 7th February

And finally...

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[boomerang] Posted by Simon at 18:50
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Silk Road Artefacts in Hong Kong

There is an article in the unlinkable SCMP today, entitled History Lessened, which asks why Hong Kong people have not turned out in droves for a major show of artefacts from China's Silk Road at the Hong Kong Cultural Museum:

The three-month show is a world-class event. It cost about $3 million to assemble and includes some of the world's oldest treasures from one of the most inhospitable regions on Earth to represent, under one roof, one of the greatest eras in history: the world's first international trade route which involved the world's greatest civilisations - China, Egypt, Mesopotamia, India and Rome.

But, despite all this, the exhibition has received little publicity.

The problem lies in the promotion, or lack of it. The Hong Kong Heritage Museum insists it has utilised almost every promotional channel available: a TV commercial, billboards in MTR and KCR stations, the Airport Express, Star Ferry, Cross Harbour Tunnel and Eastern Cross Harbour Tunnel. The Hong Kong Tourism Board and Information Services Department are also promoting the exhibition to foreign tourists and journalists.

So why isn't there more buzz?

Claire Hsu, executive director of non-profit research centre Asia Art Archive, believes presentation is the problem.

"Museums in Hong Kong seem to use the same design or packaging when promoting their exhibitions," says Hsu. "I don't see these as a creative way of promoting exhibitions, especially when you compare them with other major museums around the world. It's all very generic."

That's all very well, of course, and true. But let's face it, the government has not been able to sell the Hong Kong people very much lately, be it new rules on chickens, a West Kowloon Cultural development or harbour reclamations.

While cultural options often do get short shrift in Hong Kong, I think one major factor is that people here are very busy and work extremely hard. Frankly, putting such a major show in a Museum in Sha Tin was a mistake as it is perceived as inaccessible for many Hong Kong islanders. Having said that, please do visit, because it is very worthwhile. If you know how to get to Tsim Sha Tsui, it's not too hard from there - just take the KCR to Sha Tin station, and take a cab or a museum shuttle bus just outside the station. Details below the jump.

The Silk Road: Treasures from Xinjiang, Hong Kong Heritage Museum, 1 Man Lam Rd, Sha Tin. Mon, Wed to Sat 10am to 6pm, Sun and public holidays 10am to 7am. From Thur to Mon, $20 for adults, $10 for full-time students, disabled and senior citizens. For Wed, $10 for adult, $5 for full-time students, disabled and senior citizens. Ends Mar 19. Inquiries: 2180 8188 (Via SCMP)



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[boomerang] Posted by HK Dave at 18:04
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February 06, 2006
Linklets 6th February

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[boomerang] Posted by Simon at 14:04
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What An Aso

Japan has long been known to be an insular society. But it does not necessarily follow that it should be singularly incapable of producing a foreign minister that calms, rather than agitates, the ocean of discontent between the shores of China and Japan.

It must be difficult to be considered by your neighbors a has-been power. It must make one contemplate the past. How easy it must have been, some right-wing Japanese must think, when to nullify China all one had to do was to manufacture an 'incident' (think Marco Polo Bridge, 1937). But that is hardly any excuse for a Foreign Minister of Japan, Taro Aso (Mr. Potatohead?), in this day an age, to claim credit in a neighbor for colonial policies implemented when Japan was in charge. To wit, I quote from the Japan Times:

Foreign Minister Taro Aso said Saturday that Taiwan's present high educational standards resulted from compulsory education implemented during Japan's colonization of the island and that he believes Japan "did a good thing."

"Thanks to the significant improvement in educational standards and literacy (during colonization), Taiwan is now a country with a very high education level and keeps up with the current era," Aso said in remarks that risk sparking criticism from Taiwan and other Asian countries that suffered from Japanese wartime aggression.

"This is something I was told by an important figure in Taiwan and all the elderly people knew about it," Aso told an audience in Fukuoka. "That was a time when I felt that, as expected, our predecessors did a good thing."

He also for good measure called Taiwan a 'country' and also suggested that the former President Lee Teng-Hui could be invited to come visit Japan.

This as you can imagine has brought out furious reactions from the normally soft-spoken Chinese Foreign Ministry. Aso effectively hit on all three of China's psychohistorical bugbears: 1) Its past as the "Gateaux Chinois", carved up by the imperialist powers a century ago, kicked off by the Sino-Japanese War of 1895 (that made Taiwan a colony of Japan); 2) The ongoing efforts of Taiwan to become an independent country; and 3) the wartime atrocities of Japan in China during World War II.

An astute politician perhaps that knows how to press the buttons of his right-wing audience while conjuring up past demons for China. But this Aso is no diplomat.

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[boomerang] Posted by HK Dave at 10:16
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Killing chickens

No, this isn't a story about bird flu. Wu Zhong in today's Standard looks at an interesting development in Chinese administration: Beijing's forceful attempts to assert authority over provinces. Definitely worth a full read, but some key excerpts:

Beijing this year is setting out on a major and so far nearly impossible task: reining in local officials who dare to defy central government policies.So in the Year of the Dog, the Communist Party's disciplinary watchdogs and those of the central government are likely to become hounds that not only bark but bite. Their authority flows from China's first Civil Service Law, which went into effect from the start of this year and empowers them to punish and sack any official who disobeys the central government's authority. Given China's huge land mass, the problem of localism has existed throughout history, famously giving rise to the old adage that "the mountains are high and the emperor is far away."

Even Mao Zedong, with all his seeming omnipotence, would hardly have been able to weed out corrupt malpractices that were thousands of years old. In his historic 1972 meeting with US president Richard Nixon in his Zhongnanhai study, Mao said his influence hardly reached beyond Beijing, due to "passive resistance" in other regions.

The past two decades of dramatic economic reform have given the regional governments even greater autonomy to run their economies. Local officials have often simply ignored or eluded Beijing's dicta, in recent years becoming so bold that they have begun to defy Beijing's policies publicly...

China's classic tactic against those whom it wants to intimidate into line has long been known as killing the chicken to scare the monkeys. So it's quite likely that the new year is going to see some quaking bureaucrats in the dock, awaiting punishment, prison terms or even death sentences, to scare the rest of the monkeys back into line.

The estimate of 87,000 protests in 2005 equates to almost 240 incidents every day. These protests are typically about one of two issues: inadequate compensation for land reposession, and corrupt &/or incompetent local rule. Literally millions of people are involved in these protests and they represent the biggest potential threat to the continuing rule of the Communists. Can Beijing overturn history and bring the provinces and local administrations to heel? I doubt it, even for the CCP.

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[boomerang] Posted by Simon at 09:51
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February 04, 2006
All change at SCMP

The SCMP has poached The Standard's Mark Clifford and David Armstrong is completely gone:

The South China Morning Post has appointed Mark Clifford as editor-in-chief, effective April 1, SCMP Group chairman Kuok Khoon Ean announced yesterday. At the same time, David Armstrong has decided to step down as director, editorial, of the Post from March 1, in order to focus his time on the Bangkok Post, where he has held the position of deputy chief executive officer since May 1 last year.

Mr Clifford joins the Post from The Standard, where he has been publisher and editor-in-chief since January 2004. Previously, he was Asia regional editor at BusinessWeek, where he worked from 1995 to 2003. He started his career in Asia at the Far Eastern Economic Review in 1987 and held a number of posts, including business editor, before leaving the magazine in 1995.

Has Mr Kuok realised how far the SCMP has slipped and what a serious competitor the far smaller Standard is becoming? And what changes will Mr Clifford introduce? Interesting times...

Updated reading

* Fons comments on the decline of the SCMP over the past 10 yeatrs.
* Amy Gu has an insider's perspective.

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[boomerang] Posted by Simon at 09:28
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February 03, 2006
Naming names

I've already mentioned that Mrs M is pregnant with our fourth child. Naturally it's a wonderful blessing, but it comes with a dreaded curse: finding a name we can agree upon. Inevitably my favourites are Mrs M's "no ways", and her "must haves" are on my veto list*.

And so, dear reader, this is where you come in. In order to prevent a desperate, last minute brain-storming session en-route to the delivery suite, I am appealing to you to help us in our quest for names. To pre-empt your question, we don't know the sex, so make sure you list both boy and girl names. I already have Simon Junior on the list.

To make it even more interesting, there will be prizes for the best suggestions.

Apropos of babies, it seems appropriate to repost a link to Simon's Abridged Guide to Living with Pregnancy (for Men).

* It is some kind of miracle we've been able to name the first three.

Updated

While on things reproductive, The Economist (full article below the jump) explains my recent weight gain:

THE term “couvade syndrome” has been used to describe men who share the symptoms of their mate's pregnancy. (Couvade is a word derived from the French for “to incubate” or “to hatch”.) Symptoms of the syndrome commonly include indigestion, nausea, headaches and weight gain. By and large, such symptoms—in particular, pain during a partner's labour—have been seen as psychosomatic, so that couvade has been put down to an exhausting list of possible causes ranging from anxiety to pseudo-sibling rivalry, identification with the fetus, ambivalence about fatherhood, a statement of paternity and birth envy. [Psychosomatic my arse - have they ever seen the bills for this thing? - Ed.] However, a new study on monkeys hints that when it comes to weight gain, there might be more to couvade than first meets the eye.

Toni Ziegler and colleagues at the University of Wisconsin-Madison examined the behaviour of fathers-to-be in two species of New World monkey—the common marmoset and the cottontop tamarin. They found that the male's weight in both species increased during their mate's pregnancy. The 14 male marmosets went from around 410g at the time of conception of their offspring to 424g when their partners gave birth five months later. The 11 male tamarins went from 556g at conception to 568g at birth six months on. A further 13 male monkeys (six marmosets and seven tamarins), which were not expecting to father offspring, showed no weight gain. The work has just been published in Biology Letters.
[-68772]

What was particularly useful about this study was that the researchers were able to weigh males and females throughout the pregnancy. It turns out that the males did not follow the same pattern of weight gain as pregnant females did, which is what you would expect if the males were eating sympathetically with their mates. In fact, the male monkeys started to pile on the grams far earlier than their mates, while their pregnant partners tended to put on most of their extra weight in the last few months of gestation.

So if the male weight gain is not simply down to sympathetic eating, what is going on? In mammalian species where both the mother and the father care for infants, the behaviour of the father is crucial for the survival of the offspring. In these New World monkeys, the fathers spend as much or even more time caring for infants than the mothers. They need to be prepared to engage in caring for their offspring immediately after the birth, which involves carrying more than one infant. So perhaps the fathers are gaining weight so as to prepare for the energetic costs of caring for their offspring.

What this means for couvade syndrome in human males is not certain, but it does offer the intriguing possibility that the father-to-be might, in his own modest way, be eating for two.



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[boomerang] Posted by Simon at 14:09
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Linklets 3rd February

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[boomerang] Posted by Simon at 13:04
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China & Iran; 5th generation communists

Time again for the Jamestown Foundation's China Brief. The two highlights:

1. China and the Iranian nuclear crisis notes China's dilemma with Iran - its policies of energy security of foreign policy are coming into conflict. That's the problem with being a grown up major power...sometimes you have to make difficult choices.

2. Willy Lam takes a look at the 5th generation of the Chinese Communist Party (perhaps they could of titled it: Chinese Communist Party: The Next Generation). It's a who's who of up and comers as Hu and Wen continue to stamp their authority over the party.

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[boomerang] Posted by Simon at 09:33
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February 02, 2006
Linklets 2nd February

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[boomerang] Posted by Simon at 14:35
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The Cost of Greasing the Wheels of Trade

A timely comparison by Andrew Leonard in Salon.com about the relative costs of oil price increases versus existing average tariff barriers between countries. He exaggerates, but the quote he lifts from a Canadian investment bank still seems a useful way of thinking about the cost of oil:

"On average," reports the investment bank CIBC World Markets, "a one percent increase in fuel prices leads to a 0.4 percent increase in total freight rates." In terms of a potential impact on world trade, say the authors of the report, Jeffrey Rubin and Benjamin Tal, "the $30 per barrel increase in crude prices since late 2003 is equivalent to an average tariff increase of 5 percentage points -- more than doubling the current average world tariff rate of 4.5 percent."

And what if oil hit a hundred dollars a barrel? That "would be tantamount to an almost tripling of current tariff rates and a de facto elimination of the entire cumulative tariff reduction of the past 45 years."

Tariff reductions = "trade liberalization." Globalization, meet your nemesis: peak oil. As supplies of cheap oil get tight, long-standing global economic trends could be poised for upheaval.

He makes the case, given that the US remains the world's largest consumer, that this may benefit Mexico at the expense of China. But I'm not so sure. China has been the marginal driver in the rising price of oil anyway. Lower export growth would mean less demand for oil, which would in turn improved any competitiveness eroded by high fuel prices. And at the end of the day, compare the border towns of Tijuana and Shenzhen - which one do you think is better set up for capturing the manufacturing business of the American consumer?

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[boomerang] Posted by HK Dave at 13:14
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China's deflationary crunch

Jim Jubak looks at the risks of deflation in China thanks to over-investment and an exports driven focus at the expense of domestic consumption.

In other news, China has appointed a new manager of most of its currency reserves.

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[boomerang] Posted by Simon at 11:59
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February 01, 2006
Linklets 1st February

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Top referrers and stats for January

Thanks to the top referrers for January:

Bloggies 2006
Rockson
Mr Brown
No Pasaran
Cowboy Caleb
ESWN
Marmot
Hemlock
Tomorrow

Thank you to everyone else who also linked and visited.

As usual, some site statistics for January:

  • 31,525 unique visitors made 66,395 unique visits, reading a total of 162,811 pages,and drawing 10.46 GB of bandwidth.
  • This equals 2,142 visitors per day reading 5,252 pages each day. In other words each visitor reads 2.45 pages on average. Each visitor returned on average 2.1 times during the month.
  • 303 subscribe to this site's feed via Bloglines and 357 via Feedburner.
  • 58.4% of you use IE, 25.5% Firefox, 4.1% Safari, 2.3% Mozilla, 1.6% Opera and 0.9% Netscape to browse this site. That's a big jump for Firefox. 83.4% of you use Windows, 6.7% Mac, 1.6% Linux. That's a jump in market share for Macs.
  • 11.6% of visits were via search engines, of which Google was 74.5% and Yahoo 20%. The top search phrases included "Nancy Kissel", "Simon World" (is the URL that hard to remember?), and bizarrely "Klara Smetanova", along with "Chinese New Year wishes" (Kung Hei Fat Choi).
  • The most visited individual page was "The history of Chinese fakes (updated)", a look at the supposed map showing the Chinese beat Columbus to America. I'm watching George W. Bush's State of the Union right now and they seem to speaking English, not Mandarin.


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[boomerang] Posted by Simon at 10:03
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Hong Kong's demographic deficit

An article in The Standard sees Donald Tsang's recent announcement to cut civil servants' work week to five days (from five and a half) could lead to a baby boom:

Chief Executive Donald Tsang's proposal last month to reduce the work week for civil servants to five days may very well boost productivity - and not just in the work place. "The five-day work week will allow Hong Kong people more time for courtship and more time to make babies," said Paul Yip, senior lecturer with the Department of Statistics and Actuarial Science at the University of Hong Kong.

And babies are just what Hong Kong needs, as a host of factors - including a teetering birthrate and a longer lifespan - are wreaking havoc on the city's demographics.

Honey, I don't have to work tomorrow, let's have another kid instead. Back here on Planet Earth, the real factors in Hong Kong's low fertility rate are easily found:

:

Hong Kong residents put in an average of 55 hours of work each week, according to a 2004 study conducted jointly by Hong Kong University's Corporate Environmental Governance Programme and equal opportunity group Community Business. Singaporeans, in contrast, averaged only 50 hours of work a week in 2005, according to the Ministry of Manpower. Furthermore, of the 1,000 Hong Kongers who responded to the study, more than 75 percent said they were suffering from stress and a lack of exercise, and 28 percent said they took sick leave simply to recover from long work hours.

All this time at the office is one reason often cited for why Hong Kong ranks near the bottom in surveys comparing the frequency of sex in various countries.

Hong Kongers aren't doing it enough. But there's more to the problem:
"Who would have three children in Hong Kong's present climate? For starters, it's expensive, and the education system is in a mess." [said Paul Yip]. Even if every family was to have the recommended number of children, Yip argued, Hong Kong simply does not have the educational, health care and housing resources to support such population growth.

But Yip said he has had a hard time persuading people that Hong Kong's population decline is a pressing issue. With a fertility rate of 0.93 in 2004 - which means the average woman will have less than one child in her lifetime - Hong Kong currently has one of the lowest birth rates in the world. In 1988, it was 1.4 percent. The minimum replacement fertility rate is 2.1 children for each couple.

Hong Kong faces the same problem many developed economies face. People are living longer, getting richer and having fewer children. The changing composition of age distribution means more retireees, less kids and less workers to support both. Is that so bad? Not necessarily - it will mean economic growth in aggregate will slow or even decline, but per capita GDP may stay the same or even continue to increase. It means more school closures and more hospital openings (and more fitness corners for seniors, although my kids loving playing on them).

But Hong Kong also faces some unique problems. The average apartment size in this city is 600 square feet. Try having a family of 5 in that space. Pollution is bad and getting worse. People are wealthy enough now they don't need to have kids to support them in old age.

But for all the doom and gloom, there is an easy and obvious solution. Immigration. I've said it before - the easiest way to avoid this demographic crunch is to open the immigration gates to those prepared to come and work, filling in the missing age brackets. It requires massive cultural and government policy changes. But it is easy, pays for itself in the medium term and quick. The same applies to Japan, which is even more advanced in its aging population problem.

Hong Kong's well compensated civil servants could use their compressed work week to contemplate how to make greater immigration happen. Then they can go home and have some more kids.



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[boomerang] Posted by Simon at 09:18
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