#for the 3 provinces of dongbei

[tianshiisdead]

our special cultural heritage, isn’t it… well I think it’s kind of cute

[nedsecondline]

Chinese Are Questioning the Government's Response to Pyongyang's Nuclear Tests

A cartoon by @badiucao published on September 6, 2017, titled #NorthKoreaNukes: Dictators Are Dictators’ Own Nightmare.

Chinese political cartoonist Badiucao’s latest work, “Dictators Are Dictators’ Own Nightmares,” perhaps best captures public sentiment in China on North Korea’s recent aggressive military moves.

The cartoon shows a white-gloved Kim Jong-un slapping his adversary, US President Donald Trump, and his ally, Chinese President Xi Jinping, in exactly the same manner — one that would probably be embarrassing for a leader who tries to project an image of strength.

It was published after Pyongyang fired a missile on August 28 that flew over Japan’s Hokkaido island and landed in the sea after travelling for 1,700 miles – a distance that can reach major cities in northern and eastern China, including Beijing and Shanghai. Then a week later conducted a nuclear test and claimed that it was an advanced hydrogen bomb designed for long-range missiles.

The nuclear blast yield of the latest hydrogen bomb test, according to Norwegian Seismic Array’s estimation, is up to 120 kilotons, which is the strongest of North Korea's six nuclear tests and more powerful than the two nuclear bombs dropped on Japan's Hiroshima and Nagasaki by the US during World War II.

Pyongyang's actions followed a series of chest-thumping statements from Trump, and happened at a time when Xi was in the international spotlight hosting the BRICS (Brazil, Russia, India, China and South Africa) summit in Xiamen, a port city in southeastern China.

Diplomatic analysts have theorized that the timing of the tests were meant to cause “maximum embarrassment” for Xi as a means to put pressure on him, in the hopes that he influences the US towards opening up meaningful negotiations with Kim Jong-un.

The matter certainly seems to have touched a nerve in China. Beijing’s official response was brief and moderate, and authorities began to censor key terms such as “hydrogen bomb” on Chinese social media.

But netizens are still finding ways to cynically comment on China's response and debate about what North Korea's actions mean for their own country.

On September 3, Chinese Communist Party mouthpiece the Global Times urged people to stay calm in their editorial, arguing that China should stand firm on the possible radiation from North Korea's tests polluting northeast China, but implying that China should recognize North Korea as a defacto nuclear power:

朝鲜最新核试爆和最近的一系列中远程导弹试验显示，平壤软硬不吃，它决心获得中远程核打击能力，不会向任何外来压力屈服，朝核问题几近成为死结。 中国需面对这一复杂态势保持高度冷静，从中国的国家利益出发采取措施，最大限度地减轻中国社会从中面临的风险。 中国东北的安全是第一位的，我们需要通过各种管道明确告诉平壤，它的核试验不能污染中国东北。中国的战略安全与环境安全是中国对其采取克制行动的底线。

North Korea’s latest round of nuclear tests and missile launches indicated that Pyongyang won't accept neither hard-handed nor soft-handed negotiations. It is determined to equip the country with mid-range to far-range nuclear missile power and won't submit to any pressure from outside. The whole situation is in a deadlock.

China needs to be cool in this highly complicated situation. Decisions should be based on national interest — reducing the risk to Chinese society.

The security of northeast China is most important. We need to tell Pyongyang that its nuclear tests cannot pollute the Dongbei region. The strategic and environmental security is the baseline for Beijing’s restraint.

Readers responded critically:

谴责就行

All we have to do is condemn [Pyongyang].

不用理它，继续做我们的中国梦

Let it be. Let’s continue our China dream.

看完了 这文章重点就是 不能被拖下水 不能冲锋陷阵 前提是东北安全 但是问题来了 你咋保证东北安全……

The main point of the editorial is: don’t be dragged into troubled water, don’t fight. The premise is Dongbei’s security, but if there is no way to ensure Dongbei’s security when the problem of [radiation] arises.

Many discussions about the hydrogen bomb test happened underneath a post from the China Meteorological Administration on the popular social media platform Weibo that urged radiation monitoring stations in northeast China, also known as Dongbei, to keep a close eye on radiation levels.

The post, published on September 4, did not mention anything about North Korea nor the hydrogen bomb test. Netizens did the same, discussing the crisis without mentioning any keyword to avoid censorship:

在重大的历史节点上，大家都以为这是个平常的午后。

In a critical historical moment, everyone thinks it is just an ordinary day.

政府说没事，那就没事，继续跳舞，嗨起来

The government says it is okay, let’s continue our dance, come on, get up!

消除污染最有效的办法：封消息，抓人，然后组织民众看战狼

The most effective way to clean nuclear pollution is to block information, arrest people and organize people to watch [the patriotic movie] Wolf Warriors.

完全看不懂热评，首先，这已经是第六次核试验了，而且第六次也已经是48小时之前的事了，那些看过新闻开始觉得自己浑身疼的能不能不带节奏？还有那些说东北怎么样跟你无关的，你可能不在东北，一辈子也没去过东北，但你绝对吃过东北的食物，如果东北被污染，全中国就得玩完，14亿人口的口粮都没了。

I don’t understand why people are making such cynical remarks. This is the sixth nuclear test, and the latest one happened 48 hours ago. But the news hadn’t addressed people’s concern. The comments saying that what happened in northeast China has nothing to do with them [aren't accurate]. Perhaps you are not in Dongbei, or you’ve never been to Dongbei and never eaten Dongbei’s cuisine. But if Dongbei is polluted, China will be too, as the rice that feeds 1.4 billion people will not be edible.

这世界在变好。但没有想象中那么好。 这世界在变坏，远比你想象中坏。

The world is getting better, but not as good as imagined. The world is getting worse, but far worse than imagined.

可是山东这边真的没有什么很强烈的消息和通知告诉市民要注意规避户外什么的啊，如果不是朋友翻墙看到的新闻告诉我我根本不知道已经严重到这个地步。所以政府到底要干什么呢，自欺欺人很有意思吗？

No information or notice in Shandong [province, across the Yellow Sea from North Korea] telling people what they should be aware of. If my friend did not climb over the [Great Fire]wall and tell me the news, I would have no idea of the severity of the situation. What is the government doing? Why is it burying its head in the sand?

发这个有用吗？具体指数是多少？会不会有危险？低剂量有害核辐射人体在不知觉的情况下可能就受伤了。维稳就能拿人命抵？

This alert is useless. Exactly what is the level of radiation? Has it reached a dangerous level? Radiation even at a low level can be harmful to the human body. Maintaining [social] stability is more important than human life?

Written by Oiwan Lam · comments (0) Donate · Share this: twitter facebook reddit googleplus

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Back in October 2015, roughly around the bottom of the recent commodity cycle, we reported a stunning statistic: more than half of Chinese companies did not generate enough cash flow to even cover the interest on their cash flow, and as we concluded "it is safe to assume that up to two-third of Chinese commodity companies are now at imminent danger of default, as they can't even generate the cash to pay down the interest on their debt, let alone fund repayments."

While commodity prices have staged a powerful bounce over the past 18 months, and despite the government's powerful drive to avoid major defaults over concerns about resulting mass unemployment, the inevitable default wave has finally arrived, and as Bloomberg reports overnight, "China’s deleveraging push has racked up the most defaults on corporate bonds ever for a first quarter, and the identity of the debtors is pretty revealing."

Seven companies have defaulted on a total of nine bonds onshore so far in 2017, versus 29 for all of last year, according to data compiled by Bloomberg. In a sign of the struggles facing China’s old economic model, most of them depend on heavy industry and construction. While it’s still far from a crisis point, the defaults shows how policy makers’ efforts to reduce the liquidity that had propelled the bond market until late last year is exacting casualties.

Cited by Bloomberg, Liu Dongliang, a senior analyst at China Merchants Bank Co. in Shenzhen said that “weak companies can’t sell bonds, which adds to the pressure on their cash flow." As a result, "the pace of defaults will continue. It will be even more difficult for weak companies to sell bonds because corporate bond yields may rise further -- the current yield premium doesn’t provide enough protection against credit risks.”

As discussed in recent months, the Chinese central bank has been curbing leverage in money markets leading to a spike in borrowing costs...

... which has also hit issuance: making rolling over of existing debt prohibitive for many. Firms rated AA, generally considered junk in China, sold 33 billion yuan ($4.8 billion) of bonds in the first quarter, the least since 2011, Bloomberg data show. Chinese companies have scrapped 129 billion yuan of bond sales since Dec. 31, a jump of more than 50 percent from the same period a year before.

Continuing the deleveraging push, and further tightening financial conditions, over the weekend, the PBOC boosted rates on loans aimed at small- and medium-sized financial institutions while as reported last weekend, smaller and mid-size banks have been caught in the cross hairs of shadow banking deleveraging, with some said to have missed debt payments in March.

Not surprisingly, Bloomberg reports that four of this year’s nine defaulted bonds were issued by companies based in the northeast rust-belt province of Liaoning, which has been among the areas hit hardest by China’s focus on reducing capacity in industries such as steel and coal. Another key Chinese commodity producing province, Hebei, which is the nexus of China's steel-production has so far been spared as a result of lying about its production cuts, however recent revelations have prompted Beijing to crack down on local factories, resulting in the recent decline in iron-ore prices, which will likely have adverse impacts on Chinese upstream steel suppliers, and result in even more defaults in the coming months.

Courtesy of Bloomberg, here is a summary of the companies that have defaulted so far in 2017:

1. Dalian Machine Tool Group Corp.

The top perpetrator, this Liaoning manufacturer defaulted on three bonds this year, after issuing new securities as recently as October. The tool making industry has a large number of players, and is ripe for consolidation, according to Bloomberg Intelligence. Dalian Machine is also based in a province that tumbled into an outright recession last year. The securities involved include a note due in May 2017, one due in July and another due in January 2019.

2. Dongbei Special Steel Group Co.

This steelmaker based in Dalian, a port city on the Yellow Sea, is a good example of Liaoning’s troubles. The company, partially state owned, was already bailed out in the early 2000s before it had to grapple with the challenges of China’s economy decelerating from around 10 percent growth to sub-7 percent. It’s now defaulted on its sixth bond since its latest financial difficulties began a year ago. The company is in bankruptcy proceedings. The note defaulted on was originally issued in 2013 and is due in January 2018.

3. Inner Mongolia Berun Group Co.

This investment company is based in the heart of the northern province of Inner Mongolia, which saw a surge in construction during the record credit boom unleashed during the global financial crisis. Berun Group’s home city, Ordos, was dubbed China’s biggest “ghost town,” for all the vacant buildings that went up during the stimulus period. This was the second default within two months for the company, which invests in chemicals and logistics. The defaulted security was a note issued last year that was due in January.

4. China Shanshui Cement Group Ltd.

While this company is based in Shandong, a province southeast of Beijing that’s better off than its neighbor across the Yellow Sea, Liaoning, cement has become a tougher industry since regulators took steps to rein in China’s property sector. China Shanshui Cement Group has defaulted on several bonds since November 2015 after a boardroom fracas stymied financing. Its Hong Kong-traded shares are suspended. The bond in question was three-year note issued in February 2014.

5. China City Construction Holding Group Co.

This builder is based in the national capital, but Beijing’s ongoing property boom wasn’t enough to prevent it from missing interest payments. A change in the contractor’s ownership last April triggered early redemption of a Dim Sum bond, and then China City faced difficulties transferring funds offshore to repay the debt. The shifting shareholder structure has had a “serious” negative impact on the company’s ongoing ability to secure funding, according to China Lianhe Credit Rating Co. The company defaulted again early last month. The security was a bond due in March 2021.

6. Huasheng Jiangquan Group Co.

Another Shandong-based company, this steelmaker suffered “huge losses” after its subsidiary cut manufacturing of the alloy, according to Dongxing Securities Co., the lead underwriter on the defaulted bond. Premier Li Keqiang said in his address to the National People’s Congress last month that China wants to reduce steel capacity by about 50 million tons. Huasheng Jiangquan repaid the overdue amount on the debt March 22. The 800 million-yuan bond that was defaulted on was due in March 2019.

7. Zhuhai Zhongfu Enterprise Co.

A bottle maker for Coca-Cola Co., this company sticks out because it hails from Guangdong, China’s powerhouse exporter province. Zhuhai Zhongfu said in a statement last week that it’s running at a loss amid competition in the industry and weak demand. The company’s controlling shareholder says Zhuhai Zhongfu is planning to make an overdue payment by April 26 on the bond that it defaulted on March 28. The firm defaulted on a separate bond in 2015 and repaid the debt five months later.

April 04, 2017 at 09:03AM http://ift.tt/2oBIgN1 from Tyler Durden http://ift.tt/2oBIgN1