August 20:
The Beijing No.1 Intermediate Court has agreed to hear a lawsuit against the Ministry of Education over textbooks that call homosexuality a mental disorder, The New York Times reports. In 2001, the Chinese Psychiatric Association removed homosexuality and bisexuality from its “Chinese Classification of Mental Disorders.” Of the 31 psychology textbooks published after 2001 that mention homosexuality, 13 classify it as a disorder. One 2013 text observed: “Sexual orientation disorder is a sexual psychological disorder that involves being sexually attracted to abnormal objects. It includes pedophilia, zoophilia,necrophilia and homosexuality.” Recommended treatments include “aversion therapy,” involving electric shocks or emetic drugs. China decriminalized consensual homosexuality in 1997, the New York Times reports.
August 21:
Xi Jinping's reforms are encountering “unimaginably fierce resistance,” have not achieved results, and are opposed by various factions, according to an anonymous commentary carried in the official press. The article said the reforms were affecting various groups’ interests and had encountered immense difficulties, the South China Morning Post reports. "The in-depth reform touches the basic issue of reconfiguring the lifeblood of this enormous economy and is aimed at making it healthier. The scale of the resistance is beyond what could have been imagined," the article said. "The tone reads furious. The central leadership has started to worry," said Xu Yaotong, of the Chinese Academy of Governance, who said the publication came amid concerns the anti-corruption campaign, which has targeted top military and political leaders, was waning while other reforms faced opposition from three powerful groups: influential retired leaders, disaffected cadres, and officials unhappy with austerity. "There's resistance not just to the reforms, there's other resistance too," said Zhang Ming of Renmin University.
August 22:
A series of People's Daily articles have appeared this month criticizing retired cadres for continuing to exert influence, the New York Times reports. The first, which appeared on August 10, warned retired leaders to stay out of politics and “cool off.” It accused “some leading cadres” of posing a “quandary for new leaders, fettering their hands from doing bold work” and “undermining party cohesion and fighting strength.” The editorials followed the annual Beidaihe agenda-setting gathering, which suggests a consensus was not reached at the meeting. Zhang Lifan said: “This is a test of the leadership's ability to execute its mission. The reform has to address politics and the economy at the same time. If the political system does not change, then inertia in the bureaucracy will just send the reform around in circles."
[Editor’s Note: Early this year several party elders quietly urged Xi Jinping to focus more on reinvigorating the economy. They expressed dissatisfaction with Xi’s management of the economy, and his pursuit of high-profile corruption cases that have tarnished their legacies and targeted their protégés. “Right now, the economic situation is not good, so the core of the party’s work should be shifted more toward the economy,” one insider told the New York Times.]
China has built an archipelago of man-made islands in the South China Sea covering 2900 acres. “China’s recent land reclamation campaign significantly outweighs other efforts in size,pace and nature,” according to a new Pentagon report. Vietnam, by comparison, has reclaimed 80 acres. China’s islands are now big enough for buildings, equipment and an airstrip giving Beijing a robust power projection. Beijing has said the outposts "will have a military component," and can be used as an alternative airstrip for "carrier-based aircraft," allowing China "to conduct sustained operations with aircraft carriers in the area." China has "excavated deep channels and built new berthing areas to allow access for larger ships to the outposts." The outposts can be used for surveillance systems, harbors and logistical support. China has also increased patrols on the disputed areas to “increase its effective control” over the islands, Fox News reports.
August 23:
China’s main state pension fund will invest in the stock market for the first time. Under the new rules, the fund will be allowed to invest up to 30% of its net assets in domestically-listed shares. China's main pension fund holds 3.5 trillion yuan ($548 billion). The fund will be allowed to invest in shares and a range of market instruments, including derivatives. By increasing demand, the government hopes prices will rise. The Shanghai Composite Index closed down 12% last week after figures showed monthly factory activity contracted at its fastest pace in six years. Chinese shares are now down more than 30% since the middle of June, BBC reports.