Congressional China Caucus

CHINA FORCED ABORTION PHOTO SPARKS OUTRAGE.  The BBC reports that a photo depicting a woman who was forced to have an abortion in the seventh month of pregnancy by Chinese officials has shocked China web users.  From the piece: “Feng Jiamei, from Shaanxi province, was made to undergo the procedure in the seventh month of pregnancy, local officials said after investigating.  Ms Feng was forced into the abortion as she could not pay the fine for having a second child, US-based activists said.  Rights groups say China's one-child policy has meant women being coerced into abortions, which Beijing denies.  ‘Feng Jianmei's story demonstrates how the One-Child Policy continues to sanction violence against women every day,’ said Chai Ling of the US-based activist group All Girls Allowed.”  http://www.bbc.co.uk/news/world-asia-china-18435126

AMID POLITICAL TENSIONS AT HOME, CHINA’S MILITARY LEADERS PLAY SAFE ABROAD.  http://www.economist.com/node/21556604

IN SOUTH CHINA SEA, A SURPRISE CHINESE ESCORT FOR INDIAN SHIPS.  The Hindu reports that a Chinese warship provided an unscheduled escort to four Indian vessels traveling through the South China Sea.  From the piece: “When four Indian naval ships left the Philippines earlier this month headed for South Korea, they received an unexpected message.  ‘Welcome to the South China Sea, Foxtrot-47,’ buzzed a People's Liberation Army Navy (PLAN) frigate to the INS Shivalik (F47).  For the next 12 hours, the Chinese warship would provide an unscheduled escort to the four Indian vessels. The PLAN frigate was aware that the four ships were also going to visit Shanghai later in the month during their month-long tour; yet that they insisted on providing an escort through what India and other countries view as international waters underscored for officials how Beijing increasingly views one of the world's most important waterways.”  http://www.thehindu.com/news/national/article3524965.ece?homepage=true

HONG KONG, CHINA SHARES FALL AS INVESTORS STEER CLEAR OF RISK.  http://www.reuters.com/article/2012/06/14/markets-hongkong-china-stocks-idUSL3E8HE5DH20120614

THE DESTABILIZING EFFECTS OF CHINA’S STATE-OWNED ENTERPRISES.   According to the WSJ, business leaders are arguing that China ‘went too far’ in strengthening its state-owned sector, destabilizing the market.  From the piece: “China ‘went too far’ in strengthening the state-owned sector, which was once drowning in losses, Mr. Tedjarati said at a press briefing organized by JP Morgan on Thursday. ‘Now you have a huge amount of power and cash stored in a few enterprises. It has a destabilizing effect,’ which he said the Chinese government is beginning to recognize.  Mr. Tedjarati is Honeywell’s chief executive off icer for ‘high growth regions,’ which is a fancy name for ‘emerging markets,’ which itself is a fancy name for ‘developing nations.’ A former Deloitte Consulting China hand, Mr. Tedjarati has, according to his resume, ‘worked with Chinese stated-owned enterprises and multi-national corporations to help them formulate and execute strategies for sustainable growth in China and abroad.’”  http://blogs.wsj.com/chinarealtime/2012/06/14/the-destabilizing-effects-of-chinas-state-owned-enterprises/?mod=WSJBlog&mod=chinablog

TRAGEDY OF TIANANMEN STILL UNFOLDS.  http://www.nytimes.com/2012/06/14/world/asia/14iht-letter14.html

BACKSLIDING IN BEIJING.  According to a piece from The Diplomat, China seems to be backing away from cooperation with the larger international community to address Iran’s nuclear ambitions.  From the piece: “In and of itself, China’s break with Western sanctions is bad enough; but the signals from Beijing could end up becoming contagious. Western sanctions efforts have long struggled with the ‘free rider’ effect, in which companies and countries involved in trade with Iran are reluctant to reduce commerce lest a competitor or alternate simply step in and take their place – and their profits. In just one example, Pakistan recently has sought to capitalize on the retraction of Iran’s traditional trading partners as a result of new Western sanctions by proffering new diplomatic outreach and energy cooperation to the Islamic Republic. Should China follow suit, the effect on the fragile consensus that now exists in Asia regarding disengagement from Iran could be nothing short of ruinous.”

The Caucus Brief is a daily publication for Members of Congress and Hill Staffers on China news and information compiled by the office of Congressman Randy Forbes, Founder of the Congressional China Caucus.  Email Reed.Eckhold@mail.house.gov with tips, comments, or to subscribe/unsubscribe.