World News Thread & Breaking News!!

[ABC78]

China’s Anti-Corruption Net Sweeps Up Goldman Sachs

China’s leadership has initiated more than one campaign to root out corruption, but in what has become a predictable pattern, each and every one has failed. But President Xi Jinping — who became the country’s head of state in March of 2013 after a confirmation vote by the 12th National People’s Congress — is making another attempt to renew the Communist Party by breaking with its past, a past riddled by bribery, the exchanging of favors, and all manner of corruption.

Previous anti-corruption efforts have typically been employed as a means to undermine political opponents, a goal that eventually undermined the effectiveness of the attempt to make the party any more accountable. With Xi’s different outlook, policy experts believe this time could be different.

Already, Xi’s efforts have begun to produce results. At the center of an emerging corruption investigation, Lei Yi, chairman of the world’s largest producer of refined tin, Yunnan Tin Company, has been arrested and charged with accepting 20 million yuan, or approximately $3.3 million, in bribes, China’s state-owned Yunnan Info Daily reported this week. That report also showed that Lei received the bribes from four individuals, including Li Hongtao, the chairman of LEED International Education Group, and the involvement of Li puts Goldman Sachs (NYSE:GS) in a supporting role in the growing bribery scandal. To be clear, the investment bank is not accused of any wrongdoing. The official report did not even mention Goldman Sachs.

Goldman began investing in LEED back in May 2008 — a decision that was certainly not misguided at the time. The investment bank joined forces with the National Education Group, an education-investment company in Beijing, in order to focus on the investment in, and management of, private schools in China, as statements on LEED’s website indicate. The Chinese education market is very lucrative given the emphasis the Chinese state-run education system has put on test taking.

In the eyes of many, schools have become “test-taking factories,” as the Wall Street Journal reported, making demand for better education alternatives skyrocket and providing opportunity for investment. Citing data from BDO Financial Services, a global advisory firm, the publication explained that the Chinese spending on education and training has increased by at least 20 percent in the past five years.

So far, Goldman Sachs has sunk at total of $66.5 million, in two tranches, into LEED, for which the investment bank was given a less than 50 percent stake in the company. The first tranche of $25 million was paid to setup LEED. The next payment of $41.5 million was made in 2009. One month after the first tranche was paid is when problems began. LEED made its first acquisition, investing in Dianchi College, a 12-year-old multidisciplinary school that was once affiliated with Yunnan University, which is located in the southwestern province of the same name. The Dianchi investment remains the largest in LEED’s portfolio, according to the company.

According the state media’s report, acquired by the Journal, LEED’s Li bribed Yunnan Tin’s Lei to allow the educational investment company to take control of Yunnan Tin’s 45 percent stake in Dianchi in September 2009.

Corruption concerns have dogged other United States-based banks as well. Descendents of prominent and influential of prominent and influential senior communist officials — known as Chinese Princelings — have significant political clout, meaning the ability to make business dealings run more smoothly for foreign companies. But, under the Foreign Corrupt Practices Act, a company is prohibited from giving a personal benefit, meaning a bribe, to a decision maker in return for business.

Regulators have long monitored the international hiring practices of energy companies and pharmaceutical firms, but now the Securities and Exchange Commission and the Department of Justice have recently added another focus: the banking industry. In particular, regulatory authorities have opened a bribery investigation into whether JPMorgan Chase (NYSE:JPM) hired the relatives of powerful Chinese officials to help secure government contracts. Like Goldman, JPMorgan has not been accused of any wrongdoing thus far.

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[SampanViking]

British Chancellor of the Exchequer; George Osborne, is currently leading a trade charm offensive to China.

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He has made a number of interesting comments, but one in particular in Radio 4's today programme, was "we want to sell them Rolls Royce Engines for their aircraft"

A statement I think, pregnant with possibilities.....

 

[plawolf]

I think that was only for civilian airliner engines. But more to the point, even if the British allowed or even offered engines for Chinese military transports or even fighters, would China even take the risk in accepting?

Even for the civilian airliners, it may be in China's best interest to shun the offer and go domestic. It may be more costly and difficult in the short run, but in the long run, it will pay off.

The British wants export orders, so ToT and local assembly are extremely unlikely to be offered, even if some limited ToT is offered, none of the truly critical technologies will be transferred. So just buying ready made engines or merely making the casing while the blades and other key components are shipped from Britain adds nothing to China's aerospace industry, and in fact would retard the growth and development of China's own civilian turbofan industry as local airlines would opt for the more proven and minimal risk RR engines over new domestic ones.

China's own domestic airline industry is going to be the main engine for growth in the industry for the next several decades because Western markets are already saturated and no other emerging economy is going to have the scale or sustainable growth potential of the Chinese domestic airline market.

It is imperative that China leverage that position to develop its own domestic civilian engine industry for both strategic and economic reasons.

China may buy a few hundred RRs as a 'gift' and to tide their domestic airline makers over until indigenous engines are available, but China's main focus should be on their homegrown engines, and China should only make a big order if total ToT was on offer, whereby 100% of the parts would eventually be made by Chinese firms. I just do not see the British offering that just yet, so any deal will almost certainly be small and of limited importance.

 

[Franklin]

Isn't China building her own low bypass engine without afterburn for wide body planes, the WS-20 based on the core of the WS-10 engine ?

 

[plawolf]

Isn't China building her own low bypass engine without afterburn for wide body planes, the WS-20 based on the core of the WS-10 engine ?

She is, but so far it is unclear how far along the engine has come, and whether it will be ready in time for China's new airliners, at least initially.

 

[B.I.B.]

I think I read something quite some time ago that a French company was helping to develop a jet engine for passenger aircraft.

 

[ManilaBoy45]

Panic During 7.2 Magnitude Quake Caught on CCTV

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by Rappler.com
Posted on 10/15/2013 1:24 PM | Updated 10/15/2013 1:52 PM

MANILA, Philippines – Dropping their work, people rushed out of their buildings Tuesday, October 15, after a magnitude 7.2 earthquake shook large parts of the Visayas and Mindanao.The quake struck at 8:12 am, and was centered 2 kilometers southeast of Carmen, Bohol (09.80°N, 124.20°E). The quake's depth of focus was 33 kilometers, and was of tectonic origin, the Philippine Institute of Volcanology and Seismology (Phivolcs) said.Even animals panicked, videos posted by Youtube user Catherine Boncales (cathzzz09) showed.“Everyone is running outside while the whole building is shaking terribly,” she said in describing the scenes at the Y & B Angel's Enterprise-North Reclamation Area in Cebu City.With the her permission, Rappler compiled the videos uploaded by Boncales. Watch these scenes during the earthquake caught on CCTV.

 

[ManilaBoy45]

Cebu Doctors University Bldg. Damaged by the 7.2 Quake ...

Vehicles Crushed by Falling Debris in Downtown Cebu City ...

 

[Jeff Head]

Sorry but I don't keep files on everything I read. Do you?

You made the assertions. not me. If there are no credible links to document and back them up...they themselves are not credible.

Judicial Watch is a conservative group. I don't remember who it was but it was an older gentleman who was a Republican in Congress that brought up Fong's Chinese connections. The accusation used against him wasn't any different from what others have done. The Democrats had nothing directly to do with Matt Fong's withdraw from the nomination

Sorry, Assassin, but Fong withdrew because the democrats won the Sentate and were stonewalling all of Bush's nominees at the time. He said so himself.

You have no quote from a congressman or Senator because there wasn't one. Juidicial Watch did make some noise, but it was not a factor, it was a red-herring. Klayman does all sorts of bombastic things and is not really viewed as a serious player. Fong himself indicated that his reasons for withdrawing his name were because the wait was too long because of the Democrats and it was impacting his finances and his kids schedules. he indicated that Klayman's attack had nothing to do with it and that if Klayman was being taken seriously that he in fact would have stood up to it.

Here is what Fong himself said in AsianWeek.com when he announced his withdrawal :

"We're finding this process too long, too frustrating, too bureaucratic and too uncertain," Fong said. "The White House told me it would probably be another six months before my confirmation hearings came up ... It could be longer. With that kind of uncertainty, I am withdrawing my nomination."

"I traveled to Washington DC and expressed to Labor Secretary Elaine Chao, Transportation Secretary Norman Mineta and other advisors, my frustration with the process. With each passing month, the actual practical impact of going back there and making a difference was going out the window.
"During the most recent presidential election, I served as an advisor to Bush and campaigned with him throughout California. Assuming confirmation, my original plan was to remain at the Pentagon for three years and then return to California to campaign for Bush's re-election.

"But the political uncertainty also affected my family. My daughter Jade will be a college freshman this fall, and my son Matt Jr., is wrapping up his senior year at Pepperdine University in Malibu, Calif. My wife, Paula, and myself put our careers on hold while awaiting action from Washington.

"It's pretty tough when your clients have already given you farewell parties ... thinking you were leaving in April. You're no longer getting paid. There's only so much you can do or wait."

"President Bush's nominees for Undersecretary of the Air Force and Assistant Secretary of the Army have withdrawn their names, as well. Of all of Presaident Bush's appointees, only some 20 to 30 percent are in place. Thatthe GOP lost control of the Senate is addingto the delay," he said.

"This process is setting the record for delays, and a lot of good people, in addition to me, are saying, 'We have other things to do besides sit and wait,'".

"I don't think Judicial Watch was an issue I don't see any evidence of that to cause any delays.

"If there was a witch-hunt, if they were gunning for me and they were succeeding, out of principle, I would stand up and fight."

John Tsu, former chairman of Asian Pacific Americans for Bush for President, said that the delay in Fong's confirmation hearings had nothing to do with campaign finance questions or his ethnicity.

"Judicial Watch didn't have any influence with Matt's nomination," Tsu said. "The FBI may have checked a little bit because Judicial Watch publicized its story, but that story was long done. Matt returned Teddy Sieong and his family's contributions that were given to pay off his state treasurer's campaign debt. That had nothing to do with it."

"The position for which Fong was nominated requires a high security check of everything, not only China, Taiwan, but any foreign dealings or any company he served as an advisor or consultant.

"Since Democrats now control the Senate and the Armed Services Committee, it would have been tougher for Fong to be confirmed," Tsu said, "especially since he challenged Senator Barbara Boxer, D-Calif., for her seat."

Despite his decision to bow out, Fong himself remained optimistic about the the future for Asian Americans.

"There shouldn't be a negative message to the API community from my announcement," Fong said. "President Bush appointed two Asian Americans to his cabinet and nominated many Asian Pacific Americans to sub-cabinet posts. This demonstrated his committment to APIs".

Anyhow, this has drawn on too long and Popeye has told us to end it. So I do.

I have no doubts that there are issues with ethnic groups, races, religions and other people from time to time with some individuals, and even with organizations. I sympthize with and feel badly about anyone having to face such discrimination.

But the things you have asserted here, recent Acts of Congress against anyone of Chinese descent, people losing nominations simply because they were of Chinese descent (in particular Wong) just do not hold up to scrutiny.

 

[AssassinsMace]

Oh yeah I read those stories. They didn't bother with a vote so you really can't say the Democrats killed his nomination. That sounds familiar. Matt Fong was just being a good Republican. Well here's another regarding the charge anyone of Chinese ethnicity as potential spies for China...

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Remember Richardson's sorry role in Wen Ho Lee case

George Koo

Published 4:00 am, Monday, December 8, 2008

Many, including Bill Richardson himself, are probably wondering why anyone would object to him serving in the Obama administration. They surely have forgotten the Wen Ho Lee case and Richardson's role in one of America's most disgraceful cases of miscarriage of justice.

The objection to his nomination as President-elect Barack Obama's secretary of commerce arose from the fact that Richardson, while serving as Clinton's energy secretary, never owned up to his responsibility in the case of the United States vs. Wen Ho Lee. Until he does, he cannot be allowed to forget.

The organized opposition to the appointment originated in the Bay Area and, as of last week, had more than 4,000 signatories to a petition asking Obama to reconsider Richardson's nomination.

In March 1999, as secretary of energy, Richardson fired Wen Ho Lee without cause from his job as an atomic scientist at the Los Alamos National Laboratory and falsely identified him as a spy for China, which led to Lee's arrest and solitary confinement without the benefit of due process.

Even after the FBI apologized for lying under oath, and the presiding judge apologized to Lee for the arrest on behalf of the federal government for judiciary misconduct, Richardson has continued to defend his actions in the case as proper.

He justifies his conduct by pointing out that Lee is a now a convicted felon, conveniently overlooking that 58 of the original 59 counts of the indictment were thrown out by the court.

The final count was a face-saving way out for the government. Federal prosecutors had Lee plead guilty on a count of downloading information to his computer against laboratory regulations in exchange for the nine months of jail time already served. Because no individual can withstand indefinitely the full legal weight of his own government, Lee copped a plea despite the injustice of the circumstances.

Richardson's actions legitimized racial profiling as practiced then, and now, by the law enforcement agencies. To this day, the FBI continues to assert that ethnic Chinese are potential spies for China.

Those of us protesting Richardson's appointment are asking him to disavow racial profiling as an accepted practice. He should do this, and he can do so by simply admitting he made an error in judgment, and in no way condones racial profiling.

The protest has nothing to do with Richardson becoming the highest ranking Latino appointee in the Obama administration. We applaud the appointment of the most talented and able men and women, regardless of ethnicity, to serve our country.

However, so long as the Wen Ho Lee case is a blot on Richardson's record, we challenge the notion that he is among the most qualified to serve.

Perhaps the Obama transition team is unaware of Richardson's baggage. It is our duty to call this matter to its attention.

As the first African American president-elect, Obama has electrified the world. However, if Richardson's confirmation is not preceded by a public apology, the act would only confirm that politics as usual prevail.