Corruption In China Risks A Soviet-Style Collapse – Party’s Graft Buster

Yang Xiadou is the Party’s number two man in Xi Jinping’s crackdown on corruption in the Chinese Communist Party – although some have seen this, in part, as a convenient way for Xi to bolster his power base.
During the 19th Party Congress last month, Yang was asked about the anti-corruption drive and how to achieve a balance between human rights and party discipline. Yang replied that, having worked in the Tibet Autonomous Region for many years, human rights was an ‘interesting question’. He recounted a conversation he had with a US assistant secretary of state where he likened Abraham Lincoln freeing slaves in America to China’s actions in Tibet.
‘I said in the hearts of Chinese people, Lincoln is a hero, because he freed the slaves.
On this point the Chinese people and the American people have the same understanding – this is a human rights issue.
In turn, we freed the serfs in Tibet, how come American friends cannot understand this? From Lincoln’s perspective, he should have supported China’s overturning of the serfdom in Tibet.’

This post was published at Zero Hedge on Nov 15, 2017.

Red Capitalism Is Getting Redder – – Xi Takes More Control Of State Companies

Chinese President Xi Jinping is putting more of the ‘state’ in ‘state-owned enterprise.’
Carmaker FAW Car Co., fiber producer Sinoma Science & Technology Co. and miner Tibet Mineral Development Co. have recently modified their bylaws to give Xi’s Communist Party more oversight of management decisions. For example, company boards will now have an obligation to listen to internal party committees before making major decisions.
‘Communist Party officials are stepping up intervention in day-to-day operations of state-owned corporations,’ said Xu Baoli, a senior researcher with the State-owned Assets Supervision and Administration Commission, the government’s main SOE regulator. ‘There were cases in the past where the board would reject a proposal that had gone through the party. I doubt whether that will happen in the future.’
While tightening the Party’s grip on China’s $18 trillion state sector with one hand, Xi and Premier Li Keqiang are carrying out pledges for more market-oriented reforms with the other. Such ‘conflicting objectives’ may be at odds with increasing efficiency, according to Shen Jianguang, chief Asia economist at Mizuho Securities Asia Ltd. The ‘national interest is still being prioritized over business efficiency,’ Shen wrote in a report this week. ‘The board of directors of SOEs may not be able to make personnel or business decisions under the party’s leadership hierarchy.’
Recent steps to merge SOEs suggest an emphasis on strengthening and expanding the companies and may not sustainably boost their profitability, he wrote.

This post was published at David Stockmans Contra Corner by Bloomberg Business ‘ July 8, 2016.