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China Political Memo: Nov. 24, 2010 Shenzhen Political Changes The fourth session of fifth Shenzhen National Peopleʼs Congress on November 22 appointed Chen Gaihu, secretary to former Chairman of Chinese Peopleʼs Political Consultative Conference (CPPCC) Li Ruihuan, as deputy mayor to Shenzhen. Chen, born in 1960, was working for the State Ethnic Affairs Commission since 2007, after 10 years being chief secretary in General Office of the CPC Central Committee, during which he worked for Li Ruihuan. As one of the 66 cadres selected by CPCʼs powerful Organization Department to train locally, and one out of the three to Guangdong province, Chenʼs arrival increased the number of deputy mayors in Shenzhen to seven. According to U.S-based Mirror Book citing informed source, it is not unlikely that Chen will be appointed as Shenzhen mayor in the next 2 or three years. Chen Gaihuʼs appointment came after a series of political “earthquakes” in Guangdong province, following Beijingʼs crackdown on Huang Guangyu http://www.stratfor.com/analysis/ 20100211_china_security_memo_feb_11_2010 former chairman of Chinaʼs largest consumer electronics chain retailer Gome Group based in Guangdong in late 2008 for corruption related charge. Zheng Shaodong, former head of the Economic Criminal Investigation Bureau and vice director of Guangdong Public Security Bureau who came from the same town as Huang and thus developed close connections and assist Huang by using his political and legislative power, was arrested in Jan. 2009. This was followed by the arrest of Chen Shaoji, former chairman of Guangdong CPPCC, and Wang Huayuan, former vice Secretary and secretary of the CPC Provincial Commission for Disciplinary Inspection in Guangdong, as well as a bunch of other officials. Shenzhen city itself has been affect most. Following the arrest of former Shenzhen mayor Xu Zongheng, Party Secretary, chairman of CPPCC and vice governor of Longgang District, as well as Party Secretary of Futian district were also arrested or under investigation, all of whom are native to Guangdong. Whether or not the crackdown came from Beijingʼs intention to break down indigenous connectivity network, it would be unwilling and less likely to promote Guangdong natives as local officials, which can be seen from recently promoted politicians in Shenzhen. Among the newly appointed 13 member standing committee of Shenzhen, only 2 are originally from Guangdong, and politicians from other provinces occupied all important position, including mayor and party secretary. Similar reshuffle was seen in Guangdongʼs other cities including Shantou, Guangzhou as well. While regionalism and relationship (Guanxi) http://www.stratfor.com/weekly/ china_guanxi_and_corporate_security are by no means a new phenomenon in Chinese political culture, it is much deeply rooted in the southern coastal province. Culturally, the Cantonese essentially separated Guangdong people with almost rest of the country. Economically, Guangdong sits in the southern coast, making it easy to trade with foreign countries. And in recent history, Guangdong was the beginner of 1978 opening up, and the richest province and one of the most heavily populated, which is considered to be one of the three economic “engines” of the country. Politically, it is far from the center, and regional patronize system always overshadows centrally administered order, which also makes it the highest-ranking province for official corruption across the country. As such, Guangdong has been several times in the past attacked by Beijingʼs anti-regionalism movements. Two notable ones during Maoʼs era, one in 1952 and one in 1957, have seen mass mobilization of politicians from northern provinces to Guangdong, while indigenous politicians were either downgraded or dismissed. While yet far from reaching 1950ʼs level, the crackdown of Guangdong corruption beginning 2008 may well represent Beijingʼs continued determination to break the intricate interest chain twist with power and capital through regionalism. The appointment of Chen Gaihu, as well as other political officials from non-Guangdong provinces through recent reshuffles, facilitated such move. The appointment of Chen, and 65 other central ministries and departmental-level cadres to local positions also represents Beijingʼs new personnel strategy in training officials. Unlike previous exchanges which were mostly short term program of less than a year, the exchange program this time is designated for long-term serving as first or second hand in the local governments. This would enable them to have real power in local affairs and embedded with greater local experience before returning to Beijing or getting promoted locally. According to a Xinhua report, the 66 cadres come from 54 central ministries and state department agencies, with an average age of 46.5 years old. These officials are the ones promising in the six or seven generation leadership. Essentially, this systematizes Beijingʼs path to encourage politicians to have cross-regional career experience, a system which it has adopted for its fourth and fifth generations of leaders http://www.stratfor.com/analysis/ 20100910_looking_2012_china_next_generation_leaders. This would also help to ensure the top-down implementation of central order at local level, as well as reducing regionalism and regional biases. Nov.23: • Zhou Yongkang, a senior official of CPC, on November 23 called for concrete measures to address problems in dealing with petitioners. He stressed greater efforts, including appropriately addressing publicʼs legitimate demands and common public complaints to reduce the number of petitions, and establish system to assess social stability risks of major construction projects and policies. • Provincial federation of trade unions in Yunnan provinces conducted a week-long training for around 400 union officials at city and county level on the skills to negotiate wage increase with enterprises. The training was designed to promote collective contract signing and enhance negotiation mechanism to all enterprises in the province. • To reduce the delayed payments cases and labor disputes during the coming New Yearʼs Day and Spring Festival, Shenzhen launches a large scale inspection on all employment units, especially constructions companies, manufacturing companies, catering and entertainment services companies from early November 2010 till late January 2011. Nov.22: • Jiaxing government of Zhejiang province has released background information of nominated public servants for selecting possible future officials. The information includes not only ages and positions, but also the employment background and their immediate family members. This is the first time local government release such information during official selections, and helps to strengthen public knowledge and transparency on local politicians. • Jonathan Lee, a 13-year-old American boy, was detained by Chinese police after a staging a brief protest outside the Forbidden City, Beijing, China, AP reported Nov. 22. Lee held a sign advocating turning the demilitarized zone between North Korea and South Korea into a peace park for children. Chinese police dismissed the journalists who had been contacted by Lee's family and escorted Lee and his mother away. • Chinaʼs Supreme Peopleʼs Court and Supreme Peopleʼs Procuratorate, along with ministries of Public Security, State Security and Justices issued joint circular demanding to standardize the penalty discretion, as part of the move to reform legal system. It ordered investigative and procuratorial organs to pay greater efforts on obtaining evidence, and urged procuratorial departments to intensify review and prosecution and demand judicial administration organizations to expand legal aid to defendants. • Communist Party of China announced a training program for the countryʼs newly-appointed officials at county-level organization departments, totally 356 person will attend. The program is carried out directly by powerful Organization Department of CPC Central Committee, and is designated to improve the image and work efficiency of the Partyʼs organization officials. • According to the Beijing military service office, the city will begin and carry out an investigation on the status of Beijingʼs military service implementation. Those who refuse to serve in the military will be fined as much as RMB54, 000. At the same time, they are forbidden from going abroad, becoming civil servants, and receiving higher education for two years. Nov.21: • Chinese Premier Wen Jiabao, and Vice Premiers Li Keqiang and Hui Liangyu have called for improving public services, better infrastructure, environmental protection, industrial structure adjustment and ethnic unity in the countryʼs nine border regions, including Inner Mongolia, Liaoning, Jilin, Heilongjiang, Tibet, Guangxi, Xinjiang, Yunnan, and Gansu. Nov. 19: • Chinaʼs five ministries will jointly carry out an order by China State Council, to fight insider trading in the capital market..