Congressional China Caucus

PROTESTERS MARCH AS NEW HONG KONG LEADER IS SWORN IN.  According to the NYT, huge crowds of protesters thronged the streets of Hong Kong hours after President Hu Jintao swore in a new chief executive and cabinet for the territory.  For the piece: “Surging down broad avenues between high-rises in a central shopping district, the protesters marched toward two government office complexes carrying a variety of banners. A wide range of causes were represented, including greater democracy in Hong Kong and calls for better state pensions and day care.  But the most common theme was derision toward Hong Kong’s new chief executive, Leung Chun-ying. Democracy activists contend that he is ‘a wolf in sheep’s clothing,’ whose sympathies for the Chinese Communist Party may lead him to roll back some of the city’s cherished civil liberties — although Mr. Leung has denied that.”  http://www.nytimes.com/2012/07/02/world/asia/protesters-march-as-new-hong-kong-leader-is-sworn-in.html

CHINA TAKES A BIG STEP TO MAKE THE YUAN A RIVAL TO THE DOLLAR.  According to TIME, the Chinese government is planning on creating a new ‘special economic zone’ (SEZ) for the purpose of experimenting in currency convertibility.  From the piece: “The SEZ, called the ‘Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone’ will be developed near the border with bustling Hong Kong at a cost of $45 billion. Details on exactly what financial reforms will take place in the zone were sparse. It is possible that the measures will include the permission of some cross-border yuan lending between Hong Kong and mainland firms. But the purpose was made clear: China is will take steps to free up the ways in which its currency, called the yuan or renminbi (RMB), can be used in international finance… In introducing this zone, China is taking an important step towards achieving one of its major goals – elevating itself from solely a global manufacturing power into a global financial power as well. Beijing has been striving to make its currency, called the yuan or renminbi (RMB), more widely used internationally, and thanks to the growing importance of China in global trade, the yuan has been gaining something of a worldwide profile.”  http://business.time.com/2012/07/02/china-takes-a-step-to-make-the-yuan-a-rival-to-the-dollar/

APPLE SETTLES AN IPAD TRADEMARK DISPUTE IN CHINA.  http://www.nytimes.com/2012/07/03/technology/apple-settles-ipad-trademark-dispute-with-chinese-company.html

CHINA VOWS TO CONTAIN FINANCIAL RISKS AMID REFORMS.  According to Reuters, China has pledged to step up efforts to curb financial risks as it continues with reforms to make country’s interest rates and currency regime more market driven.  From the piece: “China's top policymakers, including central bank chief Zhou Xiaochuan, expressed determination on Friday to push on with their campaign to reform and rebalance the world's second-largest economy even as growth cools… Analysts warn that China's slowing economic growth could push more companies, including those run by local governments, to the brink, which could in turn fuel a rise in bad bank loans.  China's annual economic growth is almost certain to dip below 8 percent in the second quarter -- the sixth straight quarter of slower growth as demand at home and abroad slackens.”  http://www.reuters.com/article/2012/07/02/us-china-economy-risks-idUSBRE8610GU20120702

CHINA HIRES TENS OF THOUSANDS OF NORTH KOREAN GUEST WORKERS.  The Seattle Times reports that China is inviting tens of thousands of North Korean guest workers into the country in a deal that will provide a cash infusion to help prop up the teetering North Korean regime.  From the piece: “The deal, which has not been publicly announced by either Beijing or Pyongyang, would allow about 40,000 seamstresses, technicians, mechanics, construction workers and miners to work in China on industrial training visas, businesspeople and Korea analysts say. Most of the workers' earnings will go directly to the communist North Korean regime.  ‘The North Koreans can't export weapons anymore because of (international) sanctions, so they are using their people to raise cash,’ said Sohn Kyang-ju, a former South Korean intelligence official who now heads the Seoul-based NK Daily Unification Strategy Institute.”  http://seattletimes.nwsource.com/html/nationworld/2018578574_northkoreanworkers02.html

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.