China Reform Monitor: No. 1122

August 19:

Over the past seven months China has faced a steep and accelerating decline in property prices. Home prices dropped in four cities in March, eight in April, and by the end of July a record 64 of China’s 70 top cities had seen sharp declines in property values amounting to a 7.6% year-on-year annual decline in property sales. A combination of high mortgage rates and anti-corruption investigations have shaken market confidence in the luxury home market and in large cities and tourist destinations, the Times of India reports. Anti-graft investigations have revealed that some local Party officials own dozens of homes. In July, monthly property sales took a year-on-year decrease of 16.3% and a month-on-month dip of 34%. In July Hangzhou, Zhejiang and Sanya, Hainan both saw declines of 2.4% while Beijing, Shanghai and Guangzhou saw values fall about 1.2%.

[Editor’s Note: Large sums of Chinese money unlocked through property sales have surged into Australia through various means producing a jump in real estate prices. The flow of Chinese capital into Australian real estate through formally approved channels jumped 41% to $5.58 billion last year making China the top foreign source of real estate investment.]

August 25:

The number of North Korean residents crossing into China is down from 50-100 persons per day last year to only about five per day this year. According to a “source in China” quoted in the Daily NK the reason is because “there are so many who don't return these days that the North Korean authorities fear even bigger problems will arise if they allow people to go to China. In the past, people only had to pay the proper bribes to the State Security Department to get them to overlook activities by Christians or others entrenched in foreign ideas, but now it's certain they would get caught. Now that the authorities are aware of the effects, they are ratcheting up their efforts to stem them. There are some North Koreans who are still going to China, but most of them are involved in business or trading; general residents are nowhere to be seen.” This year saw record bilateral trade between China and North Korea and the relative stabilization of market prices in the DPRK.

August 27:

Chief of the General Staff of the Russian Armed Forces Army Gen. Valeriy Gerasimov held bilateral talks with Fang Fenghui, Chief of the General Staff of the People’s Liberation Army and Fan Changlong, Vice-Chairman of the Central Military Commission. “We attach great importance to the development of military ties with China. Russia has a high opinion of the state and prospects of the military relationship. This is particularly significant today [as] political tensions are present in the region,” Gerasimov said in comments carried by Interfax.

In the wake of the sixth meeting of China-South Africa Defense Committee, Chinese Defense Minister Chang Wanquan met with chief of the South African National Defense Force, Solly Shoke and agreed on a “plan for bilateral defense cooperation from a strategic and long-term perspective.” According to the official PLA Daily the agreement will “promote high-level visits and personnel exchanges between the two armed forces, expand pragmatic communication and cooperation so as to push forward China-South Africa comprehensive strategic partnership.”

August 28:

State-run media today published confessions of Memetuhut Memetrozi, 41, co-founder of East Turkestan Islamic Movement (ETIM), which is fighting for secession of Xinjiang from China. According to the documents, which were cited by the Press Trust of India, Memetrozi was indoctrinated in a madrassa in Pakistan. Memetrozi, who is serving a life sentence in Xinjiang No. 1 Prison for his involvement in terrorist attacks, was repatriated by Pakistan's intelligence services to China. According to the published confessions, the ETIM leader traveled around Central Asia studying Islam before enrolling in an Arab-run school in Pakistan in 1992 where he came into contact with young extremists.