Anti-Corruption Achievements

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   China Newsweek November 11
  Since China’s new leadership, headed by Xi Jinping and Li Keqiang, took power during the 18th National Congress of the Communist Party of China (CPC) on November 8, 2012, anti-corruption has attracted major attention and seen significant achievements. Altogether 11 provincial and ministerial officials have been punished.
  This revealed the determination of the CPC and Central Government to combat corruption. Differing from past practice, the new leadership has made a breakthrough in its anti-corruption strategy by switching from prioritizing prevention to emphasizing severe punishment.
  Wang Qishan, Secretary of the CPC Central Commission for Discipline Inspection, said that in the effort to combat corruption, it is necessary to address both its symptoms and the root, but that priority should be given to the former to gain time for addressing the reasons.
  Wang holds that focusing on symptoms would help sort out problems left over from previous years and lay a foundation for future reform across various systems.
  Indeed, despite the big achievements in the past year, China’s anti-corruption system still calls for improvements and even a reform. This means a series of reforms involving administrative, judicial, financial and political systems.
   Retirement Delay
  Global Times November 20
  The recent Third Plenary Session of the 18th Central Committee of the CPC proposed to formulate progressive retirement delay policies. The sensitive area would thus ultimately be part of future reform.
  China’s Ministry of Human Resources and Social Security explained that progressive retirement delay meant going ahead with short steps and that there would be a buffer time of a couple of years.
  Most sociologists hold that retirement delay is inevitable in the country. The existing retirement age was decided in the 1950s. Today, Chinese people’s average life expectancy is 20 years more than at that time, while the country enters an aging society. The insufficiency of pensions and the decrease of workers aged 19-59 has left China no choice but to resort to retirement system reform.
  The issue has ranked first on the list of social security problems on the Internet in China for a long time. Obviously, it poses a big challenge to the Central Government.
  Most developed countries have already experienced retirement delay. The difference is that some countries have implemented it smoothly, while others experienced fierce social conflict. It is essential for China to avoid such expenses in this reform.    Gaokao Reform
  China Youth Daily November 19
  The college entrance examination, or gaokao, has been operating in China for decades. To reform this talent selection mechanism would be a tough task. Still, it was decided during the Third Plenary Session of the 18th Central Committee of the CPC that the reform is necessary.
  The difficulty in pushing forward such reform lies in the gaokao’s special significance. Colleges are interested in recruiting students freely and select only the most excellent while parents remain concerned about fairness. Society hopes reform would help promote quality-oriented education among Chinese students.
  A new gaokao system could entail a new recruitment system, so that students and colleges can choose each other at different times, and not only once a year.
  Due to China’s national conditions or traditional practices, little action has been taken to shake the old gaokao system. As for how to push forward substantial education reform, there are two main points. First, to carry out a pilot program across small areas to minimize risks and seek effective methods in the process; second, a transparent and fair new system must be developed. In spite of present doubts, students, their parents and schools have high expectations for reform.
   Shanghai Free Trade Zone
  Caixin November 11
  Several months ago, the State Council gave the green light for Shanghai to pilot China’s first free trade zone. This was regarded as a step in national strategy to build Shanghai into an international trading and financial hub. Recently, Han Zheng, Party chief of Shanghai, gave his views about the zone.
  The Shanghai free trade zone is meant to explore a new path of innovation and transformation. It is a strategy both for the nation and for Shanghai itself. The free trade zone can’t be simply regarded as a “Hong Kong of the Yangtze River Delta.” Actually, Hong Kong and Shanghai are complementary to each other. Hong Kong is open in terms of its financial industry, while the Shanghai free trade zone focuses on the service sector. It doesn’t simply pertain to offshore trading, but facilitates companies by providing more marketoriented services and reforming improper systems. Therefore, there is no competition between the Shanghai free trade zone and Hong Kong. The latter’s financial development is far better than that in Shanghai with regards to infrastructure and talent bank. Shanghai could learn a lot from Hong Kong.
  Risk control is a big issue. It is a good way to push forward reform through strengthening opening-up policies. The pace of reform should be faster, while practice remains in line with national security and the prevention of financial risks. This is the bottom line.
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