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China Reform Monitor - No. 1248

China encourages citizens to have more children;
Chinese firms accused of violating DPRK sanctions

Edited by Joshua Eisenman
October 18, 2016

September 23:

Despite the end of China’s controversial one-child policy in October 2015, economic concerns, particularly over rising housing and education costs, have led many Chinese families to forego a second child. 
The New York Times reports that the public’s reluctance to raise more children has prompted local officials in Yichang, Hubei to issue a public letter online calling on all Party members to fulfill their duty by having two children: “We require all party members and Communist Youth League members in city departments and companies, especially cadres at all levels, to stand at the forefront and take a high degree of responsibility for thoroughly implementing the meaning of the ‘two-child policy’ and using practical actions to lead the way in responding to the party’s call. Young comrades should start with themselves, and older comrades should educate and monitor their children.”

September 25:

Several Chinese multinationals are under investigation by the Kenya Revenue Authority (KRA) for tens of millions dollars in tax evasion. The latest Chinese company to undergo a field audit is the giant Chinese tech company ZTE, which KRA says could owe up to $14 million in unpaid taxes dating back to 2011. For over a year the company, which has won several large government contracts, has thwarted attempted audits by refusing to provide documents, or sometimes providing them only in Chinese, to the KRA. Last month, Huang Hongyou, director of China Aero Technology International Engineering Corp., was charged with several counts, including failure to file tax returns in the required language and failure to appear for a summons. Last week, KRA asked the High Court to freeze four bank accounts of X-Tigi, a Chinese tech company, charged with tax evasion and stashing profits in Hong Kong, 
Kenya’s Sunday Nation reports.

September 26:

North Korea has dispatched agents from its State Security Ministry to flood-damaged areas along the border with China to block mass defections, 
The Korea Times reports. The DPRK’s northeastern provinces adjacent to China were devastated by Typhoon Lionrock, which left 138 dead, 400 missing, and about 20,000 houses destroyed. The heavy rains also destroyed border facilities – guard posts and barbed-wire fences – so the agents were sent to establish control of the border and crack down on illegal cell phones and CDs containing South Korean dramas and movies, which are smuggled in from China. 

September 30:

To deter illegal Chinese fishing, South Korea has expanded its fishing zone in the Yellow Sea Yonhap reports. The measure is intended to help Korean fishermen increase their income, amid increased illegal fishing from Chinese trawlers. The Yeonpyeong Island zone, designated in 1969 just below the Northern Limit Line, will be expanded 14 sq. km to the west. Korean fishermen will also be allowed to fish in the zone from half an hour before sunrise until one hour after sunset during the peak crab-catching seasons (April-May and October-November). Previously, only daytime fishing had been permitted.

October 1:

Beijing is investigating more than 10 Chinese trading companies and has detained 10 customs officials and several others in charge of border security for violating UN sanctions on North Korea. Customs procedures in Dandong, Liaoning along the North Korean border, where more than 70 percent of official bilateral trade takes place, have become stricter in recent days, 
Kyodo reports
. Last month, China's Finance Ministry said Dandong Hongxiang Industrial Development Co. was under investigation and this week the U.S. Treasury sanctioned the firm and four executives for "serious economic crimes" related to supporting North Korea's nuclear development program. Late last month, Dandong party chief Sun Zhaolin was transferred to a post at Dalian Medical University, an irregular switch that may be a punishment for the company's wrongdoing – or punishment for getting caught. U.S. officials are investigating other Chinese firms whose dealings with North Korea may have violated UN sanctions.


Related Categories: China; China and East Asia Program

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