Developments in China: The Firewall and CCTV's Attack on Bank of China

[Tianjin42]

We have noticed a few changes to the firewall of late. It seemed recently that some Google services were (more) accessible and also a few sites that are intermittently blocked were also accessible (www.guardian.co.uk).

 

At the same time (and possibly related?) CCTV accused Bank of China of money laundering (http://www.chinaeconomicreview.com/cctv-accuses-bank-china-money-laundering) . Such an attack is rare and almost certainly couldn't have been made without support from above. 

 

 

[imron]

CCTV accused Bank of China of money laundering

  Wow.

[Kenny同志]

Yes, that's rare and a bit strange. And I have been more puzzled about the on-going high-profile anti-corruption campaign. Almost every day, you hear news about government officials commit suicide, are investigated, or get arrested. On the other hand, the government does not seem to loosen its grip on freedom of speech.

 

What does all this mean?

[gato]

Internal political struggle and not loosening grip on individual freedom are not inconsistent with each other.  Xi is tightening his grip on the Party and personal freedom at the same time.  

 

The money laundering accusation relates to Bank of China offering services to people who want to emigrate out of China to transfer money abroad.  That falls under the broad "money laundering" label in mainland China.  A lot of rich people are nervous about the economy and trying to move their money abroad.  The government is trying to prevent that.

[imron]

That makes sense.

[Simon_CH]

Well.. given that most rich Chinese will have earned some of that money in illicit ways it's probably not that wrong to call it money laundering.

 

China is frantically searching for new sources of tax revenue, so local companies and high-rollers might have to start paying taxes the same way foreign companies do.

[Kenny同志]

Thanks for enlightening me, Gato.

 

Edit: Not a good sign.

[imron]

Edit: Not a good sign.

I know, how will you move your millions out of the country now Kenny?

[Kenny同志]

I don't have to worry about that, Imron.  By the time I am a millionaire, the CCP will be gone.  haha.

[Touchstone57]

Interesting developments. I haven't been able to access Google so far in China, although the Guardian is accessible. Do you think it is likely and accident and therefore only temporary or something else...

 

What annoys me is the real lack of transparency (surprise!) when decisions are made but no one has any real idea who made them. The quality of the internet in China took a real nosedive around the start of this year when they starting throttling speed to foreign websites, but no one knows why, and then Google has been entirely blocked for the last few weeks - we can do as much as guess that it is political and is a result of increasing censorship. I have heard different reasons from staff at the big teleco's, with just the "foreign websites are slower“ to being told a fiber optic cable in the pacific ocean has been damaged. 

 

The money laundering thing make sense - I have been told repeatedly that the big players are trying to move their money out of the country. Not so much for fear of the economy but fear the the government will get their mitts on their big pile of money. There are a few countries where natilonalities can be purchased with the right amount of money, so a few people will go by that route.