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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (1690)12/4/2003 1:17:05 PM
From: RealMuLan  Respond to of 6370
 
Progress in China's war on corruption

By FRANK CHING


LAST March, Xiao Yang, the president of the Supreme People's Court, reported that more than 83,000 Chinese officials had been found guilty of corruption in the past five years.

In the months since then, the land and resources minister was dismissed on allegations of corruption and two provincial party secretaries accused of corruption have lost their jobs. Clearly, corruption continues to be a serious problem in China. And yet, despite all the adverse publicity, there are signs that the Chinese government and the Communist Party are slowly making headway in the fight against corruption.

Signs of progress can be seen in China's rankings by Transparency International (TI), the Berlin-based international non-governmental body devoted to combating corruption. In 1995, the first year that TI published its rankings, China received a score of 2.16 on a scale of 10, with 10 being highly clean and zero highly corrupt. The following year, China scored 2.43, still very low but clearly an improvement. In 1997, China moved higher still, to 2.88 and in 1998, China reached its highest score of 3.5. In the years since then, China has hovered in that range, scoring 3.5 in 2002 and dropping slightly to 3.4 this year.

Clearly, the situation has improved substantially. Professor Dali Yang of the University of Chicago, who tracks corruption in China, said in an interview that China still looks bad but it is not becoming worse. According to Prof Yang, corruption was the foremost public issue in the late 1990s but had by 2001 receded in importance relative to other issues such as unemployment.

The Central Discipline Inspection Commission (CDIC), the party's anti-corruption body, published a survey in the late 1990s showing that the majority of people felt that Beijing could not deal effectively with corruption. After that, the commission stopped releasing the findings of such surveys. However, this year, the commission resumed making data available, indicating that the situation has improved. Surveys by the commission and by other bodies show that, while the level of corruption is still high by global standards, corruption has receded as an issue for the average Chinese.

Recently, even the nine members of the Standing Committee of the Politburo - the country's most powerful body - agreed to submit themselves to supervision by the disciplinary commission. There is a trend for the CDIC to be more independent, Prof Yang said, but not as independent as Hong Kong's Independent Commission Against Corruption. President Hu Jintao is a tougher corruption fighter, willing to make examples, he said, while former President Jiang Zemin was more of a compromiser.

Interestingly, the Asian financial crisis appears to have played a key role in the battle against corruption. Since then, a combination of a political will to crack down on corruption and the creation of new institutions and mechanisms have combined to make it a little more difficult for officials to be corrupt. While, in the past, people could open bank accounts using false names, this is now forbidden. All new accounts must use real names. All land for commercial use must now go through a public auction, minimising the discretionary power of officials. And, in terms of government procurement, increasingly, competitive bidding is required for things like provision of office supplies or school uniforms. Reduction of officials' discretionary power also reduces opportunities for corruption.

Moreover, governmental and party bodies were told to get out of business as the party emphasised the need to separate the roles of the government and the private sector. The military, the armed police and the judiciary were all told to divest themselves of business interests. The divestiture by now is fairly complete. Technology also played a role. Computerisation meant that in many cases there was no need for a middleman. And some cities, such as Shanghai, are putting the results of auctions on websites so that anyone can check. Such initiatives make it harder for officials to become corrupt.

Perhaps as a result of the crackdown within China, many corrupt officials have fled overseas. Shao Daosheng of the Chinese Academy of Social Sciences, estimates that 4,000 people have fled the country, taking with them US$600 million worth of assets. China has also detected the '59 phenomenon'. Since officials have to retire at 60, some try to make a killing before stepping down. While the situation may have improved somewhat, China still has a long way to go. At 3.4, China is in the same league as Panama, Sri Lanka and Syria - and way below Hong Kong (8.0), or Singapore (9.4).

The writer is a Hong Kong-based journalist and commentator

business-times.asia1.com.sg



To: RealMuLan who wrote (1690)12/4/2003 7:31:23 PM
From: RealMuLan  Read Replies (1) | Respond to of 6370
 
Toyota recalls 'offensive' sports vehicle ads in China
One of them shows lions, which are popular cultural icons, bowing to and saluting its Land Cruiser Prado

BEIJING - Japan's largest carmaker Toyota is withdrawing two advertisements for its China-made luxury sports utility vehicles (SUVs) amid growing protests that they were offensive, the company said yesterday.

'We regret that the two purely commercial advertisements have led to misunderstanding and unpleasantness among readers,' said a Toyota spokesman surnamed Yang.

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'Our sales company, FAW Toyota Motor Sales Co Ltd, will stop publishing the two ads,' the spokesman said.

One of the advertisements in dispute depicts two stone lions, a popular Chinese cultural symbol.

It shows them saluting and bowing to Toyota's Land Cruiser Prado.

The other shows a Toyota Land Cruiser tugging a heavy-duty truck on the Tibetan highland.

The truck's trademark is too small to be identified.

However, the vehicle looks similar to the Jiefang-brand trucks built by First Automotive Works Corp (FAW).

This is a Toyota joint venture partner in China.

Since the two advertisements were published this month in the latest issue of Auto Fan magazine, they have triggered a flood of comments on popular online car forums, the Beijing Times said.

Many of the comments claimed they were offensive.

The magazine has issued a letter on its website apologising to its readers.

It has also promised to stop publishing them.

The Toyota official said the two advertisements had been published in several newspapers and other periodicals in China and that the company would exert all efforts to withdraw them.

Toyota launched the two luxury SUVs along with Dario Terios, a compact SUV model, through its Chinese joint ventures with FAW last month.

While Toyota is a highly popular brand in China, Japanese companies in general need to be careful not to stir anti-Japanese sentiment, analysts said.

'Japanese automobiles, including those made by Toyota, are well received by many Chinese consumers because of their good quality,' said Mr Zhang Xin, an analyst with Guotai Junan Securities.

'But (Japanese companies) need to be very careful with their promotions.'

Public resentment, linked to Japan's occupation of China in the years preceding and during World War II, is easily aroused.

Anti-Japanese sentiment has been simmering since August when more than 30 people in north-eastern China fell ill after they unearthed chemical weapons left behind by Japan during World War II.

Hangzhou Futong Showa Optical Communications, a Sino-Japan joint venture producing optical communications equipment, had to delay its planned initial public offering (IPO) in September.

Although the joint venture did not say its IPO was shelved owing to the name of its Japanese partner - Showa - it has recently changed its name to Hangzhou Futong Telecommunications.

In Japanese, 'Showa' refers to the era of Emperor Hirohito.

It was under his reign that Japan launched its invasion of China in 1937. -- AFP
straitstimes.asia1.com.sg