China and Japan Attempt Relations Reset

china and japan have reached a fourpoint agreement aimed at easing tensions， agreeing to enhance bilateral relations through diplomatic talks while acknowledging the ongoing dispute over the Diaoyu Islands， known as the Senkaku in Japan.

The agreement was concluded on November 7， when China’s State Councilor Yang Jiechi met with visiting Japanese national security advisor Shotaro Yachi. According to the State-owned Xinhua News Agency， the two sides have affirmed that they will “follow the principles of the four political documents agreed upon between China and Japan， and continue to develop the Sino-Japan strategic relationship of mutual benefit，” and had reached agreements on “overcoming political obstacles” in bilateral relations， “facing history directly while also looking to the future.”

Xinhua added that the two sides had acknowledged “different positions” regarding the tensions that have emerged between them over the Diaoyu Islands and certain waters in the East China Sea， and had agreed to use dialog and consultation to prevent the situation from deteriorating further， establishing crisis management mechanisms to avoid contingencies. Also， both agreed to “gradually resume political， diplomatic and security dialog through various multilateral and bilateral channels，” and to “make efforts to build mutual trust.”

Chinese experts believe these measures to be a key step in breaking the ice between the two countries， which could have a positive effect on tensions in the Asia-Pacific region as a whole.

Japan’s foreign minister Fumio Kishida， however， presented a different under- standing of the agreement at a Japanese domestic defense conference on November 13. According to the Kyodo news service， Kishida denied that the new agreement was a legally binding commitment， and emphasized that Japan does not regard the Diaoyu issue as a “territorial dispute” with China.

“Conditions are not yet ready to thoroughly settle the territorial disputes between China and Japan. Currently， a more practical way is to control them，”Yang Bojiang， vice-director of research on Japanese affairs from the Chinese Academy of Social Sciences， told Xinhua News Agency.“A mixture of cooperation and struggle will remain the norm in Sino-Japanese relations，” he added.

Trade

GMO Open to Foreign Investors

China’s National Development and Reform Commission （NDRC） recently issued its latest draft on guidelines for foreign investment， stirring the waters by lifting the ban on GMO （genetically modified organism） research and development.

Analysts believed the decision was pushed by China’s failure to meet growing domestic demand for grain. Despite growth in grain production for 11 consecutive years， grain imports in the first seven months of 2014 have， according to Chinese customs authorities， increased by 80.7 percent on the same period in 2013.

Due to concerns that GMO products could be harmful to health， many people， including some experts， have strongly opposed the decision， though the NDRC has argued that China has an “attitude of openness” toward bio-agricultural research.

Many foreign agricultural enterprises， including Monsanto and Dupont Pioneer， have welcomed the new policy， saying they are willing to cooperate with Chinese domestic enterprises on GMO technology if the new list is finally approved.

Finance

Shanghai and Hong Kong Link Stock Markets

Investors in Shanghai and Hong Kong are now allowed to buy a limited group of stocks listed in the other city via local securities firms or brokers.

The program， named the “Shanghai-Hong Kong Stock Connect，“ was reached between the mainland and Hong Kong stock regulators with the purpose of further opening up the Chinese capital market and enhancing competitiveness.

Considering the hidden risk， the total trade volume of the pilot program is restricted to 550 billion yuan （US$91.7bn）. Since the mainland also set a 500，000 yuan （US$83，000） baseline for the account balance of mainland investors to access the program， first-day trade volume from the mainland side fell far short of that from Hong Kong. However， given the mainland’s limited channels for investment， analysts believe the slump will not last long.

Law

China Approves Espionage Act

China’s highest legislative body， the National People’s Congress， approved a new espionage law on November 11.

A replacement of the former National Safety Act， the new law highlights the importance of counterespionage to national security， according to analysts. For the first time， the law clearly defines “espionage” as organizing， getting involved in or instigating any act that harms China’s national interests， or recruiting for individuals or organizations engaging in such activities.

China’s fight against espionage is headed up by the Ministry of Public Security， the Ministry of State Security and relevant departments under the People’s Liberation Army （PLA）， whose functions overlap in various ways. The new law， according to analysts， will better coordinate these departments by clarifying their respective responsibilities.

The law also broadens its range of applications by including Internet and computer safety， areas which had only previously been covered by lower-level regulations.

Society

Sex Survey Issued

The China Sexology Association （CSA） issued its first report on the sex lives of the Chinese workforce on October 28， World Men’s Health Day， encouraging the public to confront any sexual problems they may have.

The report was based on a nationwide survey launched in early 2014 that covered over 10，000 employees in 22 cities， among whom around 44 percent of males claimed they had sex less than once per week， with over 21 percent of female respondents complaining that they had never had an orgasm.

The low satisfaction rate was， according to experts， largely a result of high life pressure and China’s backward sexual education. The report shows that males working in education and medicine， who have better knowledge about sex， usually lead more fulfilled sex lives.

Politics

New Anti-Corruption Bureau Established

China’s Supreme People’s Procuratorate （SPP） recently revealed to the media that it will set up a new anti-corruption bureau as a move towards “rule of law.”

The new bureau， according to the SPP ， is distinguished by its elevation to deputy ministry level， one level higher than the current bureau， in order to minimize interference from other government departments. Official data showed that among the 35，000 people accused of corruption investigated by procuratorates nationwide from January to September， 319 held an administrative rank higher than that of the head of the current anti-corruption bureau.

“We aim to unify the guidance of the anti-corruption effort by coordinating different departments and streamlining the work process，”Qiu Xueqiang， head of the SPP ， told media.

Qiu did not reveal any more details about the bureau. Analysts said that the new agency may be modeled on Hong Kong’s Independent Commission Against Corruption， signaling that anti-corruption investigation will become part of the Chinese government’s everyday work.