Roundup - 06/01/2010

• A Californian software company is suing the Chinese government for US$2.2 billion. Cybersitter claims that the Green Dam Youth Escort programme, designed to block pornographic and other websites deemed harmful by the government, contains more than 3000 lines of stolen code. More than 56 million copies of the software have been distributed in China.
  
  The government originally planned to instal the software on every computer sold in China but was forced to back-pedal after a massive public outcry.
  
  
  
• Hong Kong media is leading speculation about the removal of He Yafei from his position. Mr. He has been moved to a position at the UN from his post as Vice-Minister for Foreign Affairs. Commentators suggest that this is due to his handling of the Copenhagen negotiations which resulted in a PR disaster for China.
  
  While He Yafei cannot be personally blamed for the failure of the negotiations, his inability to take major decisions and the contrasting aims of China and the Western powers were the main causes, he was deemed to have handled the situation in a particularly undiplomatic manner. In particular his public insulting of US negotiator Todd Stern and his consistent vetoing of any climate deal, even one that did not include China, in the hectic final phase of negotiations, meant that China would inevitably come out of the summit looking the villain.
  
  Wen Jiabao managed to avoid being made the fall guy for the failure only by not turning up to many of the negotiations.
  
  
  
• 25 coal miners have been killed in a fire at a mine in Xiangtan, Hunan. More than 70 miners were in the shaft when underground cables caught fire on Tuesday afternoon. 43 managed to escape leaving at least 28 trapped. Nine bodies were retrieved on Tuesday and a further 16 on Wednesday morning. Hopes for the other trapped miners are failing as rescuers encounter the toxic fumes left by the fire.
  
  
  
• Public anger is rising as it emerges that a case involving the sale of melamine-tainted milk was withheld from public view for almost a year. Three people from the Shanghai Panda Dairy Co. were arrested in December, however, it seems that evidence that milk was contaminated emerged on Dec30 2008 and the investigation into the company began in February 2009.
  
  Some media reports claim that the tainted milk was actually made with the recalled products from the major 2008 scandal in which 6 children died and 300,000 were made ill but according to Xinhua all products involved in that scandal were destroyed.
  
  The reason given for not informing the public was that, when local authorities began investigating, they discovered evidence that a criminal case could be brought and so had to hand the investigation over to the Ministry of Public Security.
  
  
  
• A report in Faren magazine, affiliated with the Legal Daily, has highlighted corruption among the executives of China's state-owned enterprises. 35 executives face charges in 2009 of which 31 were convicted in cases involving an average of 110 million RMB (US$16.18 million).
  
  Among these, Li Peiying, former head of the Capital Airports Holding Company, was executed in August for taking 26.61 million RMB in bribes. Yang Yanming, once a senior trader with a securities company, was executed in December for embezzling 94.52 million RMB of public funds. Chen Tonghai was given a death sentence with two years reprieve for having taken almost 200 million RMB in bribes.
  
  Kang Rixin, former head of the China National Nuclear Corporation, is currently under investigation for taking backhanders in exchange for awarding construction contracts.
  
  Meanwhile a survey by the Horizon Research Consultancy Group says that 59.1% of people consider that corruption amongst China's officials is most damaging to China's image abroad. This was followed by counterfeit and shoddy products, pollution, uncivil conduct and industrial accidents.