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Monday, March 28, 2016

The Irrawaddy Magazine

New Chief Minister of Rangoon Looks to Improve Infrastructure
El Niño Drought Tipped, Charities Mobilize Water Works
USDP Leader Given 6-Month Jail Sentence for Fake Suu Kyi Nude
NCA Signatories Form Team to Steer Future Peace Process
ANP Stages Walkout Over NLD Chief Minister for Arakan State
All-NLD Lineup as 13 of 14 Chief Ministers Revealed
Incoming Info Minister Pe Myint: ‘I Will Ensure Press Freedom’
Rising China Risk Tarnishes Hong Kong Business Hub Luster
Taiwan’s Hung Makes Nationalist Party Comeback With Leadership Win

New Chief Minister of Rangoon Looks to Improve Infrastructure

Posted: 28 Mar 2016 05:54 AM PDT

A line of vehicles drive through Shwegontai junction, one of the busiest junctions in the city, Rangoon, July 3, 2013. (Photo: Soe Zeya Tun / Reuters)

RANGOON — Rangoon's new chief minister said Monday he will focus on using local and foreign investment to ramp up the development of infrastructure in Burma's commercial capital.

A lawmaker for Hlegu Township, Phyo Min Thein was appointed Chief Minister of Rangoon by the National League for Democracy (NLD) during a divisional parliament session on Monday. He was elected to the Union Parliament's Lower House in Burma's 2012 by-election and went on to serve as a member of that chamber's banking and finance development committee. Last year, he set his sights on regional governance, successfully contesting his Hlegu Township seat at the divisional level.

Phyo Min Thein told reporters after Monday's session that he would try to alleviate Rangoon's problems regarding traffic congestion and the city's flawed drainage system, as well as address challenges faced by foreign investors.

Nay Phone Latt, a Rangoon divisional lawmaker for Thingangyun Township, said he welcomes Phyo Min Thein as the new chief minister and supports his ambitions.

"Traffic jams in Rangoon should be a priority. He [Phyo Min Thein] should also look again at the previous government's quick approval of the privatization of lands and buildings [in Rangoon]. The previous government hired or sold these lands and buildings over a short period of time. This should be checked," Nay Phone Latt said.

"[Phyo Min Thein] should also talk with businessmen here about creating jobs for young people," he added.

Naing Ngan Lin, a Thaketa Township lawmaker, echoed these sentiments.

"If [Phyo Min Thein] can improve the poor drainage system in Rangoon, that will also solve other problems, such as flooding, traffic jams due to flooding and litter [on the streets], and it would also help to improve people's health," Naing Ngan Lin said.

In a statement released on Monday, the Yangon Heritage Trust also said that it "looks forward" to working with the new regional administration.

The organization's chairman, Thant Myint-U, said he is "confident that [Phyo Min Thein] will be a strong supporter of proper urban planning and conservation."

With a population of more than five million people, Rangoon is the largest of Burma's 14 divisions and states, and it is also the country's historic and commercial capital.

The region's former chief minister, Myint Swe, will serve as the military-appointed vice president in the new national administration in Naypyidaw, alongside President-elect Htin Kyaw and Vice President-elect Henry Van Thio of the NLD.

The post New Chief Minister of Rangoon Looks to Improve Infrastructure appeared first on The Irrawaddy.

El Niño Drought Tipped, Charities Mobilize Water Works

Posted: 28 Mar 2016 05:36 AM PDT

A man carries water in drought-hit Sagaing Division on March 23. (Photo: Zaw Zaw / The Irrawaddy)

RANGOON — As the arid region of Central Burma is already feeling the effects of an El Niño year that may not see the climate cycle reach full strength for another two months, local charities are gearing up to distribute water in regions that receive little rain even under normal circumstances.

Meteorologist Tun Lwin says upcountry regions, including Sagaing, Mandalay and Magwe divisions, will suffer most from the weather phenomenon, especially in April and May.

"These areas will experience water scarcity three times harder than last year," he told The Irrawaddy.

Local charities like the Brighter Future Myanmar Foundation, the philanthropic arm of the Kanbawza (KBZ) Group conglomerate, has been digging wells in Shan State and Upper Burma, and says it has spent 1.4 billion kyats (US$1.15 million) to import 32 water bowsers for distributing drinking water in drought-hit areas of Upper Burma.

"The bowsers are aimed at distributing water in Upper Burma with the collaboration of local charities there. Our foundation contributed 12 while other well-wishers donated 20," Nang Lang Kham, the chairwoman of the foundation, told The Irrawaddy.

"We hope to start our water distribution in early April, as soon as the bowsers arrive," she added.

Kyaw Thu, founder of Rangoon's Free Funeral Service Society, said his Kyaw Thu Humanitarian Network had also ordered three bowsers from China to deliver drinking water not only in upcountry areas but also to Lower Burma. The network is now primarily working on potable water projects such as the digging of wells, in affiliation with the Brighter Future Myanmar Foundation.

"We could start this week for Pakkoku, Kyauk Padaung in Upper Burma, Irrawaddy Division as well as near Rangoon in the lower part of the country," he said.

Beginning earlier this year, villages especially in Upper Burma have been grappling with water scarcities, prompting the government's Village Administration Department to ask for donations across the country for drought-hit areas.

The post El Niño Drought Tipped, Charities Mobilize Water Works appeared first on The Irrawaddy.

USDP Leader Given 6-Month Jail Sentence for Fake Suu Kyi Nude

Posted: 28 Mar 2016 05:30 AM PDT

Than Tun was sentenced to six months in prison under Burma's Telecommunications Law on March 28, 2016. (Photo: Salai Thant Zin / The Irrawaddy)

PATHEIN, Irrawaddy Division — A Union Solidarity and Development Party (USDP) official was sentenced to six months in prison with hard labor for sharing fake, altered images of the head of pro-democracy icon Aung San Suu Kyi transposed onto the body of a naked woman.

After a four-month trial in Irrawaddy Division's Kangyidaunt Township, the local court pronounced the joint secretary of the township USDP office, Than Tun, guilty under Article 66(d) of Burma's Telecommunications Law on Monday, after he shared the doctored photo of the pro-democracy leader, accompanied by vulgar text, online.

"What else can I do?" Than Tun asked The Irrawaddy following the verdict. "It is the court's decision. I have not decided whether to appeal or not yet."

Shared by Facebook user "Thu Thu" on Sept. 2, the image quickly stirred up controversy. Sithu Aung, a volunteer with the Hand to Hand Free Education Network, filed the lawsuit against Than Tun in October, alleging that he was the owner of the account.

"I am satisfied with the punishment. I think justice is served," said Sithu Aung, the plaintiff.

Monday's verdict is just the latest in a number of punishments handed out during outgoing President Thein Sein's administration under the Telecommunications Law.

In December, National League for Democracy (NLD) supporter Chaw Sandi Tun was sentenced to six months in jail for sharing a photo on Facebook that likened newly redesigned Burma Army uniforms to apparel worn by Suu Kyi.

Kachin aid worker Patrick Khum Jaa Lee was also given a six-month sentence in January for allegedly sharing a photo of a man dressed in traditional Kachin attire stomping on Burma Army chief Snr-Gen Min Aung Hlaing.

The Telecommunications Law carries penalties of up to three years in prison for using a telecommunications network to extort, threaten, obstruct, defame, disturb, inappropriately influence or intimidate.

The post USDP Leader Given 6-Month Jail Sentence for Fake Suu Kyi Nude appeared first on The Irrawaddy.

NCA Signatories Form Team to Steer Future Peace Process

Posted: 28 Mar 2016 01:31 AM PDT

Representatives of the Delegation for Ethnic Armed Organizations Unity at a meeting between the delegation and members of the Delegation for Political Negotiation on March 27, 2016. (Photo: Kyaw Kha / The Irrawaddy)

CHIANG MAI, Thailand — Signatories to Burma's so-called nationwide ceasefire agreement (NCA) have formed a new group to engage in the peace process with the incoming National League for Democracy (NLD) government.

The eight non-state armed groups that signed the NCA with outgoing President Thein Sein's government met at a summit in Chiang Mai, Thailand, and formed the Ethnic Armed Organizations Peace Process Steering Team (EAO PPST) on Saturday. The team intends to provide leadership for the eight signatories during future peace talks.

"The team was formed to provide guidance in shaping policies and making important decisions," said Khun Okkar, a spokesperson for the summit.

The Karen National Union (KNU) chairman, Gen. Mutu Say Poe, will act as the team leader; Lt-Gen Yawd Serk, chairman of the Restoration Council of Shan State (RCSS), will serve as his deputy; and leaders of the NCA signatory groups will join the team as members.

PPST will continue with Union Peace Dialogue Joint Committee (UPDJC) and Joint Monitoring Committee (JMC) initiatives implemented during Thein Sein's administration, and engage in the peace process with the new government.

Phado Kwe Htoo Win, general secretary of the KNU, said he did not think the establishment of the team would be an obstacle to negotiations with the United Nationalities Federal Council (UNFC), a block of nine ethnic non-signatories of the NCA.

Statements issued throughout the summit acknowledged the need for inclusive representation of all ethnic armed groups at each stage of a political dialogue begun on Jan. 12.

"It would be extremely difficult to build complete peace without the involvement of all armed revolutionary organizations," said Pu Zing Cung, chairman of the Chin National Front (CNF).

The Delegation for Political Negotiation (DPN), representing the UNFC, and the Delegation for Ethnic Armed Organizations Unity (DEU), representing the signatories of the NCA, held an informal meeting in Chiang Mai on Sunday, but the gathering failed to deliver concrete results.

"We've discussed informally what we can do for signatories and non-signatories of the NCA to work together, and how to restore unity between us," Khaing Soe Naing Aung, the lead negotiator for the DEU, told reporters.

According to some attendees, the two sides are likely to meet again in April and political analysts suggest that the two sides may develop their peace policies based on the policy of the incoming government, which is believed to be announced by NLD President-elect Htin Kyaw in his inaugural address to the people after the power handover on March 30.

The post NCA Signatories Form Team to Steer Future Peace Process appeared first on The Irrawaddy.

ANP Stages Walkout Over NLD Chief Minister for Arakan State

Posted: 28 Mar 2016 01:12 AM PDT

Lawmakers from the Arakan National Party are pictured wearing black stickers on Monday at the regional legislature in Sittwe. (Photo: Rakhine Times / Facebook)

RANGOON — Weeks of political wrangling came to a head on Monday morning when about two dozen lawmakers from the Arakan National Party (ANP) walked out on a sitting of the Arakan State legislature in protest of the appointment of a National League for Democracy (NLD) parliamentarian, Nyi Pu, to the state's chief minister post.

The ANP's Kyaw Lwin, representing Kyaukphu Township's constituency No. 1, told The Irrawaddy that the decision was in keeping with a party pledge to act in opposition to the NLD if the party of Aung San Suu Kyi failed to nominate an ANP lawmaker for chief minister. The ANP, which holds 23 seats in the 47-member regional legislature, has made the case that its electoral success last year had earned it the chief minister post.

ANP legislators wore black stickers on their jackets during Monday's parliamentary session.

"Black is a symbol of sadness, so we affixed it to show that the negligence of the NLD makes us upset," Kyaw Lwin said.

The Arakan Liberation Party, the political wing of the ethnic armed group known as the Arakan Liberation Army, released a statement on Sunday similarly demanding that the ANP be given the reins of regional governance in Arakan State.

On Thursday, NLD chairwoman Suu Kyi hosted a meeting in Naypyidaw with ANP representatives, discussing the regional leadership quandary among other Arakan State affairs.

There had, apparently, been hope that the ANP's demand would be met by the NLD, despite the latter's insistence that it would appoint its members to all 14 chief ministerial slots. A report in Sunday's state-run Global New Light of Myanmar said the two parties were due to meet "at the end of March," to discuss the appointment. It was unclear on Monday whether talks would go forward as planned.

State lawmakers have little ability to reject a chief minister nominee, with the Constitution ensuring presidential appointment "unless it can clearly be proved that the person concerned does not meet the qualifications of the Chief Minister of the Region or State."

Several protests have been staged in Arakan State in recent days, urging the NLD, which on Nov. 8 won large majorities across most of the country but not in Arakan State, to select an ANP chief minister.

During a protest on Sunday in Buthidaung Township, demonstrators held signs with the words "Don't point to the Constitution," in reference to the NLD's assertion that it is constitutionally empowered to choose the nation's chief ministers. Article 261 of the charter affords this privilege to the president, Suu Kyi confidante Htin Kyaw, who was selected by the party chairwoman this month to serve as her proxy.

Last week, demonstrators in the state capital Sittwe carried signs declaring, "Unwanted governance system."

Further demonstrations in the state are planned for this week. Suu Kyi reportedly conveyed concern in her Thursday meeting with ANP representatives that the recent protests could jeopardize a fragile transfer of power that culminates at the end of this month.

The chief ministers for 13 of Burma's 14 states and divisions were announced at sessions of the respective regional legislatures on Monday. All of the posts were filled by NLD lawmakers.

The post ANP Stages Walkout Over NLD Chief Minister for Arakan State appeared first on The Irrawaddy.

All-NLD Lineup as 13 of 14 Chief Ministers Revealed

Posted: 28 Mar 2016 12:03 AM PDT

Irrawaddy Division's regional parliament is pictured meeting on Monday, March 28, 2016, as Burma's state and division chief ministers were announced simultaneously across the country. (Photo: Salai Thant Zin / The Irrawaddy)

RANGOON — Thirteen of Burma's 14 regional chief ministers were officially announced at respective state and division parliaments on Monday morning.

All of the incoming regional heads are National League for Democracy (NLD) members appointed by the country's President-elect, Htin Kyaw.

Among them are two women—Nang Khin Htwe Myint and Lae Lae Maw—for Karen State and Tenasserim Division, respectively, making them the first female chief ministers in Burma.

Rangoon will see Phyo Min Thein in the chief minister role, while Zaw Myint Maung, the NLD's official spokesperson, will hold the position in Mandalay.

Despite the NLD's sweeping national victory in the 2015 general election, the party lost the majority of votes in three ethnic areas: Arakan, Kachin and Shan states.

Still, the party has publicly maintained that they would pick their own members for all chief ministerial positions—a right afforded in the 2008 Constitution.

In Arakan State in particular, the NLD had been facing a strong local lobby to appoint a chief minister from within the Arakan National Party (ANP), which won a majority in the state parliament. Yet the NLD decided to assign the position to its own member, Nyi Pyu.

The ministers for Burma's ethnic states include Lin Htut for Shan State, L Phaong Sho for Karenni State, Salai Lian Luai for Chin State and Min Min Oo for Mon State.

Khat Aung has reportedly been nominated in Kachin State, and will be discussed in regional parliament on Tuesday.

In the populace delta region, Mahn Johnny was selected in Irrawaddy Division, while in Central Burma divisions it was Myint Naing for Sagaing, Aung Moe Nyo for Magwe and Win Thein for Pegu.

A leaked document from the NLD listing the names of the new chief ministers began circulating on social media on Sunday afternoon, eliminating some of the suspense surrounding Monday's official announcement.

"The envelope that contained the list of the chief ministers was delivered to state and division NLD offices, and they were told to open it on Sunday afternoon. That's why, I think, the list has now been widely shared [online]," a senior party member told The Irrawaddy.

The post All-NLD Lineup as 13 of 14 Chief Ministers Revealed appeared first on The Irrawaddy.

Incoming Info Minister Pe Myint: ‘I Will Ensure Press Freedom’

Posted: 27 Mar 2016 10:21 PM PDT

Pe Myint, Burma's incoming information minister, at the parliamentary complex in Naypyidaw this month. (Photo: Myo Min Soe / The Irrawaddy)

Born in 1949 in Thandwe, Arakan State, the ethnic Arakanese Pe Myint was approved by Parliament last week to serve as Burma's next information minister. The vice chairman of the Myanmar Press Council earned his medical degree from the Rangoon University of Medicine in 1975. He worked as a general physician until entering the literary sphere in 1988.

He has since established himself as a writer of renown in Burma, and is particularly known for his translated works on motivation and personal development. He won Burma's national literature award in 1995. The Irrawaddy tracked down the incoming cabinet member last week in Naypyidaw to discuss press freedom and prospects for Burma's state-owned and private media.

You are a journalist and an author. How much can you guarantee press freedom as you are set to become the next minister of information?

[Press freedom] concerns laws as well as how [they are] practiced. Media organizations have to strive for it. As a media man, I do want press freedom. I will make sure there is press freedom, in cooperation with my journalist peers.

There are currently journalists who are behind bars for various reasons. Will you work for their release when you become the minister?

I have just been approved [by Parliament] to take the ministerial post. We have not yet had a cabinet meeting and therefore, it is hard for me to say anything about this right now. Personally, I will try as hard as I can to make sure journalists are not punished for their work.

We now have a certain degree of press freedom for print media. But we still do not have freedom for broadcast media. Private media, like SkyNet, is working in partnership with the government. What measures will you take to help establish freedom for private broadcasters?

Currently, we have a Broadcasting Law in place, but there is controversy over the law. I will do my best to review the Broadcasting Law, and will consider the views of those who want to do broadcasting, existing broadcasters, the realities, the input of scholars and situations in other countries.

What role can government-run print media, like The Mirror and Myanmar Ahlin dailies, play under the new government? What is your plan for government-run broadcast media? Journalists are concerned that cronies will get the [rights to] state-run broadcasting if it is privatized.

It is still early to discuss this now. There are different points of view. Some say it should be privatized, and some say it should be transformed into public service media. So, we need to consider this, depending on the situation on the ground, popular opinion and the government's policy.

Do you have a plan to promote the role of radio, to help establish a community radio station?

These things will take shape gradually. Though we are not satisfied, there have been certain changes. Weekly news journals started to emerge four, five, six years ago, and private daily newspapers started to emerge about two years ago. Radio stations also emerged last year, and there have been calls for greater freedom in broadcast media. We are still in the process of transformation and there is still much room for improvement. The industry will be able to develop a lot in the future if the correct steps are taken.

Some media laws, such as the controversial Electronic Transactions Law, need to be changed. Will you try to change these laws?

Besides the Media Law, the Printing and Publishing Law, and the Broadcasting Law, there are several other laws under which journalists are subject to legal charges. These laws cover trespassing, the Official Secrets Act, and of course, the Electronic Transactions Law. We need to discuss what justifiable charges are for journalists under these laws.

How independent is the existing Myanmar Press Council?

I think it is an independent organization. It can be called a self-regulatory media body according to international terms. The association is useful as a mediator that works in line with journalistic ethics.

Under the existing laws, private media can't operate print and broadcast media at the same time; they are not allowed to have cross-ownership. But the government operates both print and broadcast media. The Tatmadaw [military] has cross ownership under the name of 'Myawaddy'. What is your plan to address such imbalances?

There are different views and concepts about cross-ownership. Recent workshops have focused on it, and have also defined new concepts. They are, however, not complete, and we need to figure out what is acceptable to the majority.

While private media has to struggle to survive, state-owned media publishes with public funds and get lots of advertisements. What will you do to end the state-run media's monopoly?

I have not yet studied the details. I have just started studying the situation. But I can tell you that I will make sure the state-run media does not compete with private media for profits.

An Information Ministry no longer exists in most democracies. The NLD government has decided to keep the Information Ministry and there has been criticism. Do you think this ministry should still exist?

The government should run a department to communicate with the public. Even companies have a public relations department. People do not like the Information Ministry because it attacked dissidents in the past, restricted freedom of expression and imposed censorship. So, people don't like it. People would say it should no longer exist when the country becomes a democracy.

The government should have a department to communicate with the people, whether it is called the Information Ministry or something else, because the government is responsible for reporting what elected lawmakers are doing for the people. At the same time, it is also responsible for reporting what the government is doing for the people and how, as well as public criticisms. It has to publish these things for the knowledge of the government, lawmakers and the public.

In my view, state-run media should publish the opinions of the people as well as discussions with people who have political knowledge. In that regard, government-operated print and broadcast media can carry out the duties of the state.

There is an Information Ministry in countries like England, but they do not use that name anymore.

There was an Information Ministry in the US. They called it the USIA [United States Information Agency] and the USIS [US Information Service]. But as far as I know, they prefer to use the public affairs department now. I mean, there should and must be communication between the government and the people. We have to monitor it so that it does not function as propaganda.

The post Incoming Info Minister Pe Myint: 'I Will Ensure Press Freedom' appeared first on The Irrawaddy.

Rising China Risk Tarnishes Hong Kong Business Hub Luster

Posted: 27 Mar 2016 10:11 PM PDT

Left to right: HSBC Asia Pacific CEO Peter Wong, Hong Kong Monetary Authority Chief Executive Norman Chan, Hong Kong Financial Secretary John Tsang and HSBC Group CEO Stuart Gulliver stand in front of the image of a commemorative 150th anniversary banknote during a launch ceremony in Hong Kong on March 4, 2015. (Photo: Reuters)

HONG KONG — For decades, Hong Kong thrived as an Asian business hub thanks to its killer combination of Western freedoms, independent courts and closeness to mainland China's booming market. Now political and economic ills from the mainland are eroding that edge.

Swedish-Chinese author Gui Minhai was counting on Hong Kong's freedoms when he chose the city as the base for the publishing empire he has built up over the past decade, churning out exposes on elite Chinese politics that were snapped up by visitors from mainland China, where they are prohibited.

The recent temporary disappearances of Gui and four colleagues, including his British chief editor Lee Bo, rising political volatility and slowing growth in China are undermining confidence in Beijing's promises to leave the city's freedoms intact for a half-century after taking control of Hong Kong in 1997.

Local frustrations will likely intensify as the city's pro-Beijing elite prepares to choose a new leader for the specially administered Chinese region next year.

In unusually blunt comments, Financial Secretary John Tsang predicted recently that Hong Kong's economy would eke out its smallest expansion in four years in 2016.

"Politics and economics are closely intertwined. Political volatility will unavoidably impact on our economy," Tsang said in his budget speech last month. Tension and turbulence have left many in Hong Kong feeling suffocated by a confrontational atmosphere, said Tsang, warning of "even greater chaos" ahead if tensions aren't resolved.

Hong Kong remains wealthier and freer than the mainland, but the city of 7.2 million is riven with inequality and faces growing competition from other Chinese business hubs like nearby Shenzhen and Shanghai. Meanwhile, Chinese President Xi Jinping has sought to crush dissent in other regions like Xinjiang and Tibet, showing little sympathy for the yearning among many in Hong Kong for greater democracy.

Investors aren't rushing for the exits yet, but in the financial industry, backbone of the economy, the mood is darkening.

"If Hong Kong is gradually being taken over by all these Chinese business practices and also politically there's more and more pressure and influence coming from mainland China, this will definitely destroy Hong Kong in the end," said Edward Chan, an investment fund manager.

Foreign investors might start to "think that if Hong Kong does not have rule of law or anything, why don't they just move their investment directly to Shanghai or Beijing? What's the difference?" he said.

As Beijing increasingly opts more for the "one country" part of the "one country, two systems" framework guaranteeing its separate legal and financial systems until 2047, Hong Kong is paying a price.

Dimming Hong Kong's image as a global financial center, HSBC decided in February not to move its headquarters from London back to Hong Kong despite a restructuring focused on "pivoting" toward Asia. The Hongkong & Shanghai Banking Corp. was founded in the city in 1865 and shifted its headquarters to Britain in the early 1990s.

In explaining its choice, HSBC did not refer to China, though lauded Britain's "internationally respected regulatory framework and legal system."

On March 12, credit rating agency Moody's Investors Service cuts Hong Kong's outlook to negative from stable, citing rising political risks and China's slowing growth. It had downgraded China's rating two weeks before.

"Increasing political linkages are likely to weigh on Hong Kong's institutional strength," the agency said. "In addition, the risks to China's economic and financial stability may also undermine Hong Kong's own economic and financial outlook."

Hong Kong's freedoms were on global display in late 2014, when hundreds of thousands of people took to the streets, blocking busy thoroughfares for 79 days to protest Beijing's plan to restrict elections. The peaceful protests highlighted discontent with China's influence among local youths, but also among older Hong Kong citizens, many of whose families fled past political turmoil in the Chinese mainland.

More recently, the independent film "Ten Years" was a surprise hit with its dystopian portrayal of the eradication of the city's Cantonese-language identity under Beijing's rule a decade from now.

Activists defending local culture from mainland Chinese influence clashed with police last month when authorities ordered fishball vendors, a traditional fixture during the lunar new year, off the streets of gritty Mong Kok.

Steve Vickers, chief executive of political and economic risk consultancy SVA, said requests for information and help with crisis preparedness spiked after the Mong Kok riot. Political polarization and the slowing economy are threatening Hong Kong's reputation, while China's slowdown could worsen tensions by pushing up unemployment and hurting property prices, he said.

"Any economic weakness would surely stoke political anger, given the social grievances that underpinned recent protests," Vickers said.

The bookseller disappearances shocked many Hong Kongers because of suspicions that mainland Chinese security agents snatched Lee and spirited him across the border, violating Beijing's promise to stay out of most local affairs including law enforcement. Gui apparently was apprehended in Thailand and taken to mainland China.

Many ethnic Chinese in Hong Kong hold foreign passports as a sort of "insurance policy" in case of a crisis. The difficulties Britain and Sweden faced in getting consular access to Lee and Gui raised doubts about that strategy.

Chan, the investment fund manager, holds a Canadian passport. "Now it's totally useless," he said. "This passport is not going to protect me in any sense if the Lee Bo case is going to re-occur again."

Three of Gui and Lee's colleagues are now free on bail in the mainland, but the pair appear to be still detained without charge. They both surfaced briefly on Hong Kong-based pro-Beijing Phoenix TV, where Lee said he was aiding an investigation while Gui tearfully confessed to an old crime—having fled overseas to avoid a suspended two-year prison sentence for a fatal drunk driving accident. Their Causeway Bay Bookstore remains shuttered.

The booksellers' case shook the relatively freewheeling publishing industry in Hong Kong, whose status as a base for independent-minded financial research could suffer if investment banks with business interests on the mainland avoid releasing reports critical of Chinese state-owned companies or the economy, said Chan.

Simon Baptist, chief economist at the Economist Intelligence Unit, whose latest global cost of living survey ranked Hong Kong No. 2, said companies would likely pay closer attention to Hong Kong's fragile press and judicial freedoms when deciding whether to deploy staff or investment here.

"Hong Kong is still one of the freer places in Asia," Baptist said, "but perhaps that gap, that advantage, it has is narrowing."

The post Rising China Risk Tarnishes Hong Kong Business Hub Luster appeared first on The Irrawaddy.

Taiwan’s Hung Makes Nationalist Party Comeback With Leadership Win

Posted: 27 Mar 2016 10:01 PM PDT

Taiwan's ruling Nationalist Kuomintang Party (KMT) former presidential candidate Hung Hsiu-chu leaves the podium after giving a speech at a party congress in Taipei, Taiwan, on Oct. 17, 2015. (Photo: Reuters)

TAIPEI — Taiwan's opposition Nationalist Party picked as its new leader a woman it had ditched as its presidential candidate weeks before January's election after a wave of criticism of her campaign.

Pro-China Hung Hsiu-chu, a one-time schoolteacher known by the nickname "Little Hot Chili Pepper," won 56 percent of the vote, a Nationalist Party spokeswoman said, beating three other candidates.

She becomes the first female leader of the Nationalist Party, which in January lost not only the presidency but also control of Taiwan's parliament to the pro-independence Democratic Progressive Party (DPP).

Hung's victory marks a comeback for a woman who in October was removed as her party's candidate for the presidential election after a campaign riddled with gaffes and political attacks.

The change made no difference, however, as her replacement, Eric Chu, still ended up being trounced in by Tsai Ing-wen of the DPP. Tsai will take over as president in May from China-friendly Ma Ying-jeou who had held the position for the Nationalists since 2008.

Chu resigned as party chief after the defeat, forcing a leadership vote.

"Thanks to so many comrades' support … giving me a chance to bend down and pick up the first brick to lead the Nationalist Party to rebuild our home from the debris," Hung told a news conference.

"In the face of such a difficult and hard future situation, as long as we have courage there is no difficulty we cannot overcome. Please join me and work with me," she added.

Hung, who is widely seen as supporting unification with China, faces a tough job rebuilding support for the party. The popularity of the DPP has surged since 2014 when hundreds of students occupied parliament for weeks to protest trade pacts negotiated with China. It was the largest display of anti-China sentiment the island had seen in years.

Chinese President Xi Jinping, in his capacity as head of China's Communist Party, sent a congratulatory message to Hung, according to a note released by the Nationalist Party.

"We hope both parties can cement a foundation of mutual trust, increase exchanges and interaction, and ensure peaceful development and stability across the Taiwan Strait," Xi wrote in the message.

Known in Chinese as the Kuomintang, the Nationalist Party ruled China before being forced to flee to Taiwan in 1949 at the end of a bloody civil war with the Chinese Communist Party. Beijing views Taiwan as a renegade province to be brought under its control by force if necessary.

The post Taiwan's Hung Makes Nationalist Party Comeback With Leadership Win appeared first on The Irrawaddy.