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Hong Kong Newspaper Punished for Its Political Stance, Says Publisher
HONG KONG—Mainland Chinese companies have stopped advertising in Hong Kong’s free daily newspaper am730 for political reasons, the paper’s founder Shih Wing-ching claimed recently.
Shih wrote in his opinion column in am730 on Jan. 16 that this withdrawal of funds came as a united front, indicating that there was a uniform reason behind all of the companies’ decisions. He suspected that the actions were motivated by politics rather than commercial interests, because otherwise there would be no reason for the banking and telecommunications industries to act simultaneously.
Shih also stated that he will not yield to any political forces or change the direction of his paper against his will. If worst comes to worst, he will stop running the paper.
He added that the yearly advertising costs of these Chinese companies have exceeded 10 million HKD, while am730’s entire earnings are only 10 to 20 million HKD (US$1.3 to $2.6 million). If these companies continue to withhold their advertising, a large portion of am730’s earnings will vanish.
A very successful businessman and the founder of Centaline Property Agency Limited, Shih said that if a business cannot keep its balance financially, it will not go far.
Financial columnist and senior media professional Liao Shi-ming said, “At present, sales of Chinese companies in Hong Kong have grown large. It has become unfeasible for a daily newspaper to operate relying only on the sales of advertising to local enterprises or foreign investors.”
“This forces Hong Kong media operators to face the test at the mercy of the Chinese Communist Party,” Liao said.
According to Liao’s analysis, am730 is classified as conservative and moderate among Hong Kong newspapers. While the paper seldom criticizes the Chinese Communist Party (CCP) directly and never touches the “sensitive” issue of the CCP’s persecution of the spiritual practice Falun Gong, the paper holds firm to the core values of Hong Kong, she said.
However, am730 did mention Falun Gong in a Jan. 3 article called “Hong Kong artists stand by Epoch Times” about Hong Kong celebrities sending New Year’s greetings to readers through the Epoch Times.
The article included quotes from people identified as netizens, showing concern for the celebrities about the Epoch Times “Falun Gong” background. The quotes suggested that publishing greetings in the Epoch Times would cause trouble for the celebrities and prevent them from visiting mainland China, where Falun Gong is severely oppressed. The paper did not contact the celebrities directly to get their opinions about the netizens’ comments.
Shih told the Epoch Times that he was not informed about this article, but he said am730 should have checked with the celebrities before reporting these comments.
Liao believed that am730 attempted with this unusual article as to show its position to the CCP, indicating that the paper would not step out of line on the issue that CCP considers most sensitive and most fears to see discussed openly.
“That is a case of obviously siding with the wicked and bullying good people,” Liao said.
Liao appealed to Hong Kong media to hold on to basic morals when facing critical moments, and avoid siding with the CCP against their conscience.
Translated by Y.K. Lu. Written in English by Sally Appert
Chinese ships and aircraft have attempted to demonstrate Beijing’s claims to the islands [Reuters/Kyodo]
|Japan’s defence minister has vowed to defend the country’s territory after three Chinese government ships entered disputed waters off Tokyo-controlled islands in the East China Sea.
The Chinese coastguard vessels sailed at about 8:30am local time on Sunday (2330 GMT on Saturday) into territorial waters off one of the Senkaku islands, which China also claims and calls the Diaoyus, Japan’s coastguard said.
The ships left less than two hours later.
“We can never overlook repeated incursions into territorial waters,” Japanese Defence Minister Itsunori Onodera told reporters.
“We need to make diplomatic efforts on one hand. We also want to firmly defend our country’s territorial sea and land with the self-defence forces cooperating with the coastguard,” he said.
Chinese state-owned ships and aircraft approach the disputed islands from time to time in an effort to demonstrate Beijing’s territorial claims, especially after Japan nationalised some of the islands in September 2012.
Sunday marked the first time Chinese ships were spotted there since December 29, when three coastguard ships entered the zone and stayed for about three hours, Japanese officials said.
Japanese coastguard patrol boats have tried to chase Chinese vessels away, fuelling tensions that some fear could spiral into an armed clash. Japan’s conservative Prime Minister Shinzo Abe has vowed no compromise on the sovereignty of the islands and recently announced a boost in military spending.
Tensions were heightened in recent months after Beijing announced an air defence identification zone covering a large swathe of the East China Sea, including the disputed islands.
On the global financial stage, China is playing chess while the U.S. is playing checkers, and the Chinese are now accelerating their long-term plan to dethrone the U.S. dollar. You see, the truth is that China does not plan to allow the U.S. financial system to dominate the world indefinitely. Right now, China is the number one exporter on the globe and China will have the largest economy on the planet at some point in the coming years. The Chinese would like to see global currency usage reflect this shift in global economic power. At the moment, most global trade is conducted in U.S. dollars and more than 60 percent of all global foreign exchange reserves are held in U.S. dollars. This gives the United States an enormous built-in advantage, but thanks to decades of incredibly bad decisions this advantage is starting to erode. And due to the recent political instability in Washington D.C., the Chinese sense vulnerability. China has begun to publicly mock the level of U.S. debt, Chinese officials have publicly threatened to stop buying any more U.S. debt, the Chinese have started to aggressively make currency swap agreements with other major global powers, and China has been accumulating unprecedented amounts of gold. All of these moves are setting up the moment in the future when China will completely pull the rug out from under the U.S. dollar.
Today, the U.S. financial system is the core of the global financial system. Because nearly everybody uses the U.S. dollar to buy oil and to trade with one another, this creates a tremendous demand for U.S. dollars around the planet. So other nations are generally very happy to take our dollars in exchange for oil, cheap plastic gadgets and other things that U.S. consumers “need”.
Major exporting nations accumulate huge piles of our dollars, but instead of just letting all of that money sit there, they often invest large portions of their currency reserves into U.S. Treasury bonds which can easily be liquidated if needed.
So if the U.S. financial system is the core of the global financial system, then U.S. debt is “the core of the core” as some people put it. U.S. Treasury bonds fuel the print, borrow, spend cycle that the global economy depends upon.
That is why a U.S. debt default would be such a big deal. A default would cause interest rates to skyrocket and the entire global economic system to go haywire.
Unfortunately for us, the U.S. debt spiral cannot go on indefinitely. Our debt is growing far, far more rapidly than our GDP is, and therefore our debt is completely and totally unsustainable.
The Chinese understand what is going on, and when the dust settles they plan to be the last ones standing. In the aftermath of a U.S. collapse, China anticipates having the largest economy on the planet, more gold than anyone else, and a respected international currency that the rest of the globe will be able to use to conduct international trade.
And China is not just going to sit back and wait for all of this to happen. In fact, they are already doing lots of things to get the ball moving. The following are 9 signs that China is making a move against the U.S. dollar…
#1 Chinese credit rating agency Dagong has downgraded U.S. debtfrom A to A- and has indicated that further downgrades are possible.
#2 China has just entered into a very large currency swap agreement with the eurozone that is considered a huge step toward establishing the yuan as a major world currency. This agreement will result in a lot less U.S. dollars being used in trade between China and Europe…
The swap deal will allow more trade and investment between the regions to be conducted in euros and yuan, without having to convert into another currency such as the U.S. dollar first, said Kathleen Brooks, a research director at FOREX.com.
“It’s a way of promoting European and Chinese trade, but not doing it with the U.S. dollar,” said Brooks. “It’s a bit like cutting out the middleman, all of a sudden there’s potentially no U.S. dollar risk.”
#3 Back in June, China signed a major currency swap agreement with the United Kingdom. This was another very important step toward internationalizing the yuan.
#4 China currently owns about 1.3 trillion dollars of U.S. debt, and this enormous exposure to U.S. debt is starting to become a major political issue within China.
#5 Mei Xinyu, Commerce Minister adviser to the Chinese government,warned this week that if the U.S. government ever does default that China may decide to completely stop buying U.S. Treasury bonds.
#6 According to Yahoo News, China has already been looking for ways to diversify away from the U.S. dollar…
There have been media reports this week that China’s State Administration of Foreign Exchange, the body that handles the country’s $3.66 trillion of foreign exchange reserve, is looking to diversify into real estate investments in Europe.
#7 Xinhua, the official news agency of China, called for a “de-Americanized world” this week, and also made the following statement about the political turmoil in Washington: “The cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonized.”
#8 Xinhua also said the following about the U.S. debt deal on Thursday: “[P]oliticians in Washington have done nothing substantial but postponing once again the final bankruptcy of global confidence in the U.S. financial system”. The commentary in the government-run publication also declared that the debt deal “was no more than prolonging the fuse of the U.S. debt bomb one inch longer.”
#9 China is the largest producer of gold in the world, and it has also been importing an absolutely massive amount of gold from other nations. But instead of slowing down, the Chinese appear to be accelerating their gold buying. In fact, money manager Stephen Leeb says that his sources are telling him that China plans to buy another 5,000 tons of gold. There are many that are convinced that China eventually plans to back the yuan with gold and try to make it the number one alternative to the U.S. dollar.
So exactly what would happen if the Chinese announced someday that they were going to back their currency with gold and would no longer be using the U.S. dollar in international trade?
It would change the face of the global economy almost overnight. In a previous article, I described some of the things that we could expect to see happen…
If China does decide to back the yuan with gold and no longer use the U.S. dollar in international trade, it will have devastating effects on the U.S. economy. Demand for the U.S. dollar and U.S. debt would drop like a rock, and prices on the things that we buy every day would soar. At that point you could forget about cheap gasoline or cheap Chinese imports. Our entire way of life depends on the U.S. dollar being the primary reserve currency of the world and being able to import things very inexpensively. If the rest of the world (led by China) starts to reject the U.S. dollar, it would result in a massive tsunami of currency coming back to our shores and a very painful adjustment in our standard of living. Today, most U.S. currency is actually used outside of the United States. If someday that changes and we are no longer able to export our inflation that is going to mean big trouble for us.
The fact that we get to print up giant mountains of money and virtually everyone around the world uses it has been a huge boon for the U.S. economy.
When that changes, the word “catastrophic” is not going to be nearly strong enough to describe what is going to happen.
According to a Rasmussen Reports survey that was released this week, only 13 percent of all Americans believe that the country is on the right track. But the truth is that these are the good times. The American people haven’t seen anything yet.
Someday people will look back and desperately wish that they could go back to the “good old days” of 2012 and 2013. This is about as good as things are going to get, and it is only downhill from here.
- Is China Making A Move Against The U.S. Dollar? (etfdailynews.com)
- China Leads Campaign To Replace The U.S. Dollar As Reserve Currency (etfdailynews.com)
- The sun is setting on the U.S. dollar’s global supremacy (business.financialpost.com)