The Xi Jinping authorities issued the highest-level documents for the capital market and cross-border finance. (Image source: Getty Images)
[Look at the news from China on July 8, 2021](See a comprehensive report by Chinese reporter Li Zhengxin) A few days agoXi JinpingThe authorities target capital markets and cross-borderfinancialThe highest-level documents issued by the field, worrying that a “storm” is approaching, the Premier of ChinaLi KeqiangHastily appeased foreign companies, claiming to ensure that foreign capital can compete fairly in China. However, scholars point out that China’s development model without freedom and justice cannot be sustained.
The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council issued the “Opinions on Strictly Cracking Down on Illegal Securities Activities in accordance with the Law” on July 6.
Official media said that this is a programmatic document for capital market law enforcement and judicial work for a long period of time in the future, and emphasizes the “adherence to zero tolerance requirements” emphasized in the document.
The main contents of the opinions include strengthening cross-border supervision, improving data security, cross-border data flow, and confidential information management and other relevant laws and regulations. To promptly revise the regulations on strengthening the confidentiality and file management related to the issuance and listing of securities overseas, and the main responsibility for information security of overseas listed companies. Strengthen the standardized management of cross-border information provision mechanisms and procedures. Adhere to the principle of law and reciprocity, and further deepen cross-border audit supervision cooperation.
The document also mentions investigating various corruption issues behind financial risks, while focusing on preventing capital market risks that may be induced by corruption cases. Prioritize the investigation and handling of cases that may affect the process of major reforms in the capital market and may cause systemic risks, as well as cases involving internal and external linkages between regulatory staff and market personnel.
It is foreseeable that more companies will be affected, especially those involved in cross-border business.
Tianjun’s political and economic think tank wrote an article “After July 1st heavy rectification Xi Jinping shocks the unruly red second generation”, it is pointed out that “externally during busy hours, internally during leisure”, this is a common method of the Chinese Communist Party. When the pressure on the international community is not so great, the top leaders of the Chinese Communist Party will focus on purging political enemies or stifling all factors that endanger its regime in the bud. After the July 1st Party celebration, the Beijing authorities took a rare big move. In name, they stated that they wanted to crack down on illegal activities in the financial system. In fact, they had hidden murderous intentions.
The decree did not go out of Zhongnanhai, not only Hu Jintao and Wen Jiabao, but also Xi Jinping during his Politburo permanent appointment period. In order to increase the deterrence of this document, the Central Disciplinary Department of the Communist Party of China was also used to cooperate. In the morning of July 7, the Central Commission for Discipline Inspection published an article on the documents of the General Office of the Central Committee and the General Office of the State Council, stating that it firmly supported Xi Jinping’s crackdown on corruption and illegal acts in the financial system and “purified the political ecology and the capital market ecology.”
Chinese Prime Minister Li Keqiang was busy pacifying foreign companies. On July 6, he had a video connection with representatives of British industrial and commercial enterprises. At the meeting were British Petroleum (BP), HSBC, Schroders, Standard Chartered, Diageo, Prudential, AstraZeneca, and Jaguar Land Rover. Land Rover) and other giant British-funded multinational companies participated.
Li Keqiang promised to the British business leaders that China will continue to open up opportunities for foreign companies to enter the Chinese market and ensure that foreign capital can compete fairly in China. He also stated that China will continue to work towards creating a “market-oriented, legalized, and internationalized business environment.” .
The American think tank Council on Foreign Relations has a different view. In the latest issue of Foreign Affairs magazine, it focuses on the obstacles facing China’s future development.
According to a report by Radio “Free Asia”, on July 7, a number of internationally renowned scholars on China gathered at a seminar organized by the “Foreign Relations Association” to discuss in-depth internal contradictions facing Chinese society.
Orville Schell, director of the Center for U.S.-China Relations at the Asia Society, believes that China’s development cannot be sustained. The CCP is suppressing China’s long tradition of humanism and reform. “If there is no core of humanity and morality, can China continue to cohesive and progress? Perhaps the CCP has successfully perfected a brand-new development model that does not require values such as freedom and justice. But modern history shows that the lack of these factors may endanger a country. For example, Italy and Germany, where fascism prevailed, and the former Soviet Union.”
Jude Blanchette, director of the China Studies Program at the Center for Strategic and International Studies, a Washington think tank, believes that the United States and its allies have absolute advantages in technological competition. “Technology is innovation-oriented, and innovation is people-oriented. This should be a priority for national competition.”
Editor in charge: Xin He Source: Look at China
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