China Reform Monitor: No. 1114

July 9:

In a rare disclosure, China’s State Council has announced that between 2010 and 2012 China committed 89.34 billion yuan ($14.4 billion) to international aid and development projects with 51.8 percent going to Africa, 30.5 percent to Asia, and 8.4 percent to Latin America and the Caribbean. From 2010 to 2012, China offered 49.76 billion yuan, or 55.7 percent of the total volume, in concessional loans, 32.32 billion yuan in grants, and the remaining 7.26 billion yuan in the form of interest-free loans. The Office of Information’s 31-page report recognized China’s “contribution to the road networks that link up Kenya, Ethiopia and Tanzania” and Chinese support for “solar power, hydro power and other clean energy” in Ethiopia, Burundi and Sudan. It said “China will continue to increase foreign assistance, further optimize assistance structure, highlight key aspects, innovate assistance means, raise the efficiency of capital utilization, effectively help recipient countries improve their people’s well-being and enhance their capability of independent development,” Yonhap reports.

July 10:

Over the next eight years Pakistan is eyeing $40 billion in Chinese investment in the country’s energy, water, coal, roads and other infrastructure projects, Pakistan’s The News reports. Meanwhile, in Beijing, Chinese Foreign Minister Wang Yi told Punjab Chief Minister Muhammad Shahhaz Sharif that China is ready to “relax rules and regulations” and that “no one would be allowed to create any hurdle in implementing the economic package including Karachi-Lahore Motorway and other projects.” Wang added that China supports Pakistan’s military operation against terrorists in North Waziristan, who are “enemies of both countries,” Pakistan’s The Nation reports.

July 13:

Taiwan is using unmanned surveillance aircraft to spy on China while reducing the risk to its pilots from Beijing’s increased missile deployment, Agence France Press reports. In March, Taipei deployed 32 domestically developed unmanned aerial vehicles, or drones, to Taitung. Initially the drones were watching airspace in the east and south, but the military has recently extended their range into the Taiwan Strait. “Now they can effectively monitor China’s military movements in the southeastern coastal area,” said an anonymous senior officer. The U.S., which uses the high-altitude Global Hawk drone to collect military intelligence on China, raised the topic at a recent military exchange with Taiwan.

July 17:

Zimbabwe President Robert Mugabe appealed for more aid during a meeting with a visiting Communist Party of China delegation in Harare. Meanwhile, in Beijing Zimbabwean Finance Minister Patrick Chinamasa was cajoling a $10 billion deal to help stem the country’s economic implosion. Over the last three years Beijing has extended $1.5 billion in loans to Harare, Kenya’s The Nation reports. Now China wants Zimbabwe to put up its mineral proceeds to guarantee any future loans. Mugabe said he looked forward to visiting China next month when Beijing would “play host” and an agreement would likely be sealed, New Zimbabwe reports. The 90-year-old told the CPC delegation: “We will be talking about how we can help each other in our socio-economic programs – another revolution to develop our countries so the fruits of what we fought for together can be yielded by yet another joint struggle. But this time a peace and economic struggle that we shall be waging with our natural resources so we can produce the necessary wealth for our people.”

July 19:

Authorities have taken Rui Chenggang, a prominent financial news anchor for state broadcaster CCTV, into custody on suspicion of corruption. Li Yong, deputy director of CCTV’s finance channel, has also been detained. Rui and his family members allegedly set up a public relations company to use his influence for “seeking profits,” the Times of India reports. Beijing has widened the investigation into corruption at CCTV andaccording to Ming Pao, “almost every day there are CCTV finance channels staff being taken away for questioning,” including CCTV head Hu Zhanfan and a handful of deputy heads. Since June, an anti-corruption taskforce has investigated CCTV’s advertisement and financial records making it likely senior staff will soon be formally arrested.