Taiwan Tati Cultural and Educational Foundation

Ratings agency says China debt was understated

Taipei Times

China’s local government debt may be 3.5 trillion yuan (US$540 billion) larger than auditors estimated, potentially putting banks on the hook for deeper losses that could threaten their credit ratings, Moody’s said yesterday.

Moody’s reviewed a report released by China’s state auditor last week, which found that local governments had chalked up 10.7 trillion yuan of debt. Moody’s said it identified more loans funded by banks after accounting for discrepancies in figures given by various Chinese authorities.

Investors worry the pile of loans, about half of which were racked up during a 2008 stimulus spending binge, could destabilize the Chinese economy in the long run. If banks have to absorb heavy losses, it could restrict lending.

Democracy is not just pretending to listen

James Wang 王景弘

In 1987, before former president Chiang Ching-kuo (蔣經國) enacted a policy allowing retired soldiers to return to China to visit relatives, former Chinese Nationalist Party (KMT) secretary-general Lee Huan (李煥) sought out Robert Lai (賴義雄), a member of the dangwai (outside the party) movement, who was in Taipei at the time, for his opinion on the proposed policy.

Lai said that based on humanitarian principles, retired soldiers should be allowed to return to China to visit their relatives. The next day, a headline in a prominent “anti-communist” newspaper reported that an overseas dissident supported the policy.

Pro-independence groups voice their support for Lee

Taipei Times

Pro-Taiwan independence groups yesterday expressed their belief in former president Lee Teng-hui’s (李登輝) innocence after he was indicted on a charge of embezzling state funds, saying that President Ma Ying-jeou (馬英九) was behind the charge. The groups also said the indictment was politically motivated.

Justice has to be served in the indictment of Lee, scores of pro-Taiwan independence groups said at a joint press conference held in Taipei.

Lee was indicted on Thursday on charges of embezzling NT$7.8 million (US$271,000) in national security funds during his tenure in office from 1988 to 2000. The following day, Ma held an impromptu press conference denying accusations that the indictment of Lee was politically motivated.

Holding on to a vague, fabricated consensus

Chin Heng-wei 金恒煒

“One China, two governments” was recently suggested by Chu Shulong (楚樹龍), deputy director of the Institute of International Strategic and Development Studies at Tsinghua University in Beijing, as an alternative framework for cross-strait relations. China has not responded to his idea. In Taiwan, meanwhile, President Ma Ying-jeou (馬英九) did respond, and with a degree of urgency, saying that the concept was open to discussion.

The idea of “one China, two governments,” if accepted, would overturn the so-called “1992 consensus,” a concept that was essentially fabricated anyway. As such, the new suggestion is a slap in the face for Ma. It is funny he never considered the “1992 consensus” open for discussion.

More Articles...