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TRADE WARS
China to push alternative trade pact at APEC: minister
by Staff Writers
Beijing (AFP) Nov 10, 2015


Shanghai free trade zone director under investigation
Shanghai (AFP) Nov 10, 2015 - A director of China's first free trade zone (FTZ) in Shanghai has been put under investigation for "severe disciplinary violations", Communist Party authorities said Tuesday, using a phrase which typically refers to corruption.

In a statement on its website, the Central Commission for Discipline Inspection -- the ruling party's corruption watchdog -- gave no further details of the case involving Ai Baojun, 55, who is also a vice mayor of the Chinese commercial hub.

Ai holds the title of director of the Shanghai FTZ, according to his official biography. He has been one of several Shanghai vice mayors since 2007, holding the portfolio for development and planning, it said.

China set up the Shanghai FTZ in September 2013, promising a range of financial reforms, though foreign companies have been disappointed with the pace of change.

Ai was also head of the management committee for the Shanghai International Tourism and Resorts Zone, his official biography showed. The zone is site of the city's future Disney theme park, scheduled to open in 2016.

Following an investigation, authorities typically pass cases involving Communist Party and government officials accused of corruption to prosecutors for court trial and punishment.

Chinese media said Ai is the highest level Shanghai official to formally come under investigation since Xi Jinping took over as Communist chief in 2012, with Internet portal Tencent calling him the city's "first tiger".

- 'Deep grief' -

Authorities have launched a much-publicised drive against corruption since Xi came to power, vowing to target both high-level "tigers" and low-ranking "flies".

There has been speculation over whether Xi might target Shanghai, where he was the city's party chief on his rise to the top post, and which is widely considered to be the main power base of former leader Jiang Zemin.

The highest ranking Shanghai official to fall in recent years was former party chief Chen Liangyu, who was sentenced to 18 years in jail in 2008 for bribery and abuse of power.

Ai's official biography disappeared from the official Shanghai government website shortly after the investigation was announced. He previously worked at Shanghai-based metals giant Baosteel before entering the city government.

Shanghai party chief Han Zheng pledged "zero tolerance" towards graft at an internal meeting about the case, according to a statement posted on the government's official microblog.

"For corruption, the firm attitude is always zero tolerance," he said, adding the case had caused "deep grief".

Ai is not the first government official involved with the zone to run afoul of authorities.

Authorities have announced that Dai Haibo, previously Communist Party chief and executive deputy director of the FTZ, was under investigation for "severe" violations of discipline and the law.

State media said in August that Dai was suspected of bribery, but it was not clear whether his alleged offences occurred during his tenure at the FTZ.

China will seek to push its own vision of an Asia-Pacific trade pact at a regional summit next week, senior officials said Tuesday, after this month's release of a rival US-led deal that pointedly excludes the Asian giant.

Beijing sought to promote the Free Trade Area of the Asia-Pacific (FTAAP) at last year's Asia-Pacific Economic Cooperation (APEC) summit, which it hosted.

At the meeting's close, participants endorsed efforts to explore the idea, which was seen as a potential rival to the Trans-Pacific Partnership (TPP), a 12-nation, Washington-led trade coalition that includes the region's largest economies, except China.

Little has been heard of the FTAAP since, while the long-secret text of the TPP was released Thursday, receiving cheers from global business interests and jeers from labour, environmental and health groups, which vowed to fight its ratification.

The TPP would be the world's biggest free trade area, an attempt to break down barriers to commerce and investment between a dozen countries comprising about 40 percent of the global economy.

China said it would report the findings of a study on FTAAP at next week's APEC summit in the Philippines, to be attended by President Xi Jinping.

"We need to actively work for the establishment of FTAAP," Chinese vice commerce minister Wang Shouwen told a briefing, adding that the trade pact would be "a facilitator for regional integration in APEC".

If ultimately realised, FTAAP would be the world's largest free trade area, encompassing TPP and other regional frameworks.

APEC's 21 members account for more than 50 percent of global GDP and nearly half of world trade.

Although it gathers some of the world's most important leaders, the group's annual meeting is a better known for its group photos of powerful people in matching shirts than substantive deals.

But Wang said China remains hopeful that the group will complete a roadmap for establishing the FTAAP framework.

"Our objective is to complete the joint strategic study next year and to present operable suggestions and recommendations to the leaders at next year's summit," he said, adding that a progress report would be presented to leaders in Manila.

Vice foreign minister Li Baodong added that it was important to ensure sustainable Asia-Pacific growth so that the region "can continue to play its role as an engine for world economic growth".

- 21st century trade -

China has latched onto the FTAAP, first put forward by APEC in 2006, as a hedge against the US-led TPP, a key element of Washington's "Asia pivot".

Although the United States has said it is open to Chinese participation in the TPP, it has excluded the world's number two economy from negotiations.

US President Barack Obama has insisted he wants China "to do well" despite simmering tensions between the two powerhouses.

"The United States welcomes the rise of a prosperous, peaceful and stable China," he said at last year's APEC summit.

But at home, he has repeatedly used Beijing as a bugbear to scare up cooperation from an intransigent congress to support the deal.

Obama, who strongly pushed the TPP as a foundation for "21st century trade", heralded the pact as a boost to the US economy that would also protect workers and the environment.

But he also said that ratifying the deal "means that America will write the rules of the road in the 21st century" rather than China.

APEC no place to discuss South China Sea: Beijing
Beijing (AFP) Nov 10, 2015 - An Asia-Pacific summit next week should not discuss rising tensions in the South China Sea, Beijing said Tuesday, after a regional defence ministers' meeting failed to issue a joint communique in a split over the issue.

Beijing claims virtually the entire South China Sea and has sought to reinforce its position by building up reefs and tiny islets into artificial islands capable of hosting military facilities.

Its stance puts it in opposition with several other members of the Asia-Pacific Economic Cooperation forum (APEC), including the US.

Last month Washington pressed its right to freedom of navigation by sending the guided missile destroyer USS Lassen to within 12 nautical miles of at least one of the artificial islets in the Spratlys chain, angering China.

This year's APEC summit begins in the Philippines -- also a South China Sea claimant -- next week but Li Baodong, a vice foreign minister, told a briefing in Beijing: "There is no plan to discuss the South China Sea issue."

"APEC is mainly a platform to discuss economic and trade cooperation in the Asia-Pacific region," he added. "There is consensus on this point."

Last week an Asia-Pacific defence ministers' meeting in Malaysia ended on a sour note as the United States and China butted heads over whether a final joint statement should mention the South China Sea.

Besides China and the Philippines, the other claimants are Malaysia, Vietnam, Brunei and Taiwan, with some of their claims overlapping.


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