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Chinese Military Hawk’s Opinion on Taiwan

Luo Yuan, a People’s Liberation Army (PLA) major-general and Chinese military theorist, published an opinion article on Huanqiu, a People’s Daily publication; in the wake of the recent Taiwan general election, Luo expressed the following:
“Despite the fortuitous development of the Taiwan issue, an iron principle should never be bent: to conform to the historical trend. … No matter what kind of twists and turns may appear, reunification with the motherland is a historical trend that no one can stop.
“We will respect public opinion, but there is a difference between a broad and a narrow public opinion. On the issue of national unity, one should only listen to the broad public opinion of the entire nation, instead of the narrow opinion of the people in one region. … The option of Taiwan’s reunification or independence can be decided only by the 1.3 billion Chinese people including those in Taiwan.
“We will weigh the pros against the cons, but there is a difference between major pros and cons and the small pros and cons. National unity is a serious matter. No cost can be weighed as being superior to the value of unification.
“We will act according to the law. There is a difference between the large law and the small law. On the matter of national unity, the Constitution of the People’s Republic of China, the National Defense Law of the People’s Republic of China, and the Anti-Secession Law are the iron laws that establish the bottom line that no one should touch and the legal framework that no local laws can surpass.
“There is a difference between peaceful reunification and military reunification and we will make every effort to achieve a peaceful reunification. As long as the peace does not die, we will make a one hundred percent effort. In exchange for the best interest of a unified country, we will minimize the costs for the people on both sides. We have made the promise that ‘Chinese don’t fight Chinese,’ but if the ‘Taiwan independence’ forces drive us into a corner, we have no choice but the military solution. ‘If you want reunification, then peace; if independence, then war.’ One cannot draw an equal sign between independence and peace.”
Source: Huanqiu, January 25, 2016
http://opinion.huanqiu.com/1152/2016-01/8438331.html
Briefings | | |   Geo-Strategic Trend

China’s Economy Faces Three Constraints

Li Wei, head of the Development Research Center of the State Council (DRC), recently expressed the view that it will be "very difficult” for China to maintain a GDP growth rate of 6.5 percent in 2016 because the Chinese economy faces three constraints.
“The first is a tightened external demand from the global market. Since the 2008 financial crisis, although major economies have initiated a series of stimulus measures for economic recovery, … it will still take time to see a new round of high growth. The IMF lowered [its forecast] for the world’s economic growth in 2016 from 3.8 percent to 3.6 percent.
“The second is the kink in the population structure, which results in escalating labor costs. With an aging population and a rapid decline in the active labor force, the competitiveness of Chinese laborers has weakened.
“The last is the pressure on the environment and resources. For a long time, China’s arable lands have been decreasing due to industrialization and urbanization, directly threatening China’s food security. A development model that neglects the cost to the environment cannot last.”
The DRC is a ministerial level government policy research and consulting institution directly under the State Council.
Source: China Securities Journal, January 11, 2016
http://www.cs.com.cn/xwzx/hg/201601/t20160111_4881221.html
Briefings | | |   Economy/Resources

Personnel in the Largest State-owned Enterprises under Corruption Probe

On January 4, 2016, the website of the Commission for Discipline Inspection (CDI), the Chinese Communist Party branch in charge of the ongoing anti-corruption sweep, released a summary of its probes into the largest state-owned enterprise (SOE’s), the top 100 some SOE’s directly under the Central Government.
The Chairman of the Board, the General Manger (CEO), or the top Chinese Communist Party official of SOE’s directly under the Central Government, who are usually referred to as chiefs, are ministerial or deputy ministerial positions directly appointed by the State Council.
According to the article, in the past two years, CDI has covered 55 SOE’s directly under the Central Government, removing 64 personnel from their leadership positions at various levels for corruption investigation. Most of the problems came from the energy, communications, and machinery manufacturing sectors. Among the sacked officials, 36 or 56 percent are the chiefs – top executives or political leaders.
In 2015, six of the nine personnel under investigation were from PetroChina, CNOOC, Sinopec, Wuhan Iron and Steel Co, and China Telecom. Most of these companies are listed on the U.S. stock market.
Source: Commission for Discipline Inspection, Central Committee of Chinese Communist Party, January 4, 2016
http://www.ccdi.gov.cn/xwtt/201512/t20151231_71867.html
Briefings | | |   Government/Politics

Hurun Global Chinese Rich List 2015

Recently the Hurun Research Institute released its Hurun Global Chinese Rich List 2015, a ranking of the richest Chinese in the world, sponsored by China-based asset manager Hanya Capital.
Spread out over 18 countries and regions, Hurun Research found 1577 individuals with wealth of CNY 2bn. Of those, 302 were from outside of mainland China. The total wealth came to a staggering US$2.1 trillion, the equivalent of the GDP of Russia, or 1.5 times that of South Korea.
Of these individuals, 1,254 live in mainland China and have a total wealth of US$1.4 trillion. They represent 67 percent of the total list. 99 live in Hong Kong, with a total wealth of US$290 billion. 89 were born and grew up in Taiwan. 
Real estate is the main resource for the wealth of the listed billionaires from non-mainland China, representing 24 percent of the list. The manufacturing industry follows, with 16 percent. IT and food & drink each comprise 9 percent of the list, ranking third. 
Source: Xinhua, September 10, 2015
http://news.xinhuanet.com/house/bj/2015-09-10/c_128214025.htm
Briefings | | |   Economy/Resources

China Three Gorges to Buy Brazil Power Assets

On Tuesday, August 25, the São Paulo-based firm and Brazilian group, Triunfo Participações e Investimentos (TPI) announced that it had agreed to sell a controlling stake in three energy subsidiaries to China Three Gorges for up to 1.9bn reais (US$538 million).
In a statement, Triunfo said the divestment included all of its shares in Rio Verde Energia, Rio Canoas Energia, and Triunfo Negócios de Energia. Triunfo added that the deal is for 970mn reais plus 770mn reais in debt, with an additional 148.5mn reais payable "upon the achievement of certain events."
Rio Verde Energia is operator of the 116MW hydropower plant of the same name in Goiás state while Rio Canoas is responsible for the 192MW Garibaldi plant in Santa Catarina. Triunfo Negócios de Energia is involved in power trading. According to Triunfo, the operation is subject to conditions and approval from local regulators.
Excluding the latest acquisition, China Three Gorges Brazil holds interests in three hydropower plants and 11 wind farms totaling 687MW of installed capacity.
Source: Xinhua, August 26, 2015
http://news.xinhuanet.com/fortune/2015-08/26/c_1116381781.htm
Briefings | | |   Geo-Strategic Trend

Chinese Government to “Safeguard the Air Quality” for WWII Commemoration

China’s commemoration of the 70th anniversary of the end of World War II will take place on September 3. Two weeks before the event, high attention is being paid to the air quality around the Beijing area.
On August 17, a meeting involving Communist officials in Northern China was held to arrange the tasks of "safeguarding the air quality." The head of the Chinese Communist Party of Beijing City, Guo Jinlong; the Minister of Environmental Protection, Chen Jining; the Beijing Mayor, Wang Anshun; the Governor of Hebei Province, Zhang Qingwei, as well as the personnel-in-charge from Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Shandong, and Henan all attended the meeting.
At the meeting, Guo said that "safeguarding air quality for the commemoration of the 70th anniversary of the end of World War II is an important political task entrusted by the Party and the State Council." Chen said that "good air quality directly matters for the success of the activities; it also matters for the honor of the Capital."
Source: China Youth, August 18, 2015
http://news.youth.cn/gn/201508/t20150818_7017361.htm
Briefings | | |   Government/Politics

Chinese Communist Party Officials Required to Lecture University Students

According to the Ministry of Education, three central agencies, including the Central Organization Department of the Chinese Communist Party (CCP), are requiring that leading cadres – top provincial officials – offer ideological and political education for college and university students. Each official should give a lecture at least once every semester, so as to ensure that all the college students in every university and college across the nation will have at least one opportunity to listen to a lecture on government policies given by a leading official.
"Recently, the CCP’s Central Organization Department, the Central Propaganda Department, and the Ministry of Education jointly issued the Opinion on Leading Officials to Carry Out Ideological and Political Education." The "Opinion" requires that the main task include promotion of the in-depth studies on the series of important speeches that General Secretary Xi Jinping has given, on socialism with Chinese characteristics, and on the Chinese dream. The lecture should include giving answers on major theoretical and practical issues that concern university teachers and students and helping young students to make a conscious decision when drawing theoretical boundaries between right and wrong. 
Source: China News Service, August 5, 2015
http://www.chinanews.com/gn/2015/08-05/7449845.shtml
Briefings | | |   Government/Politics

China’s Draft Cybersecurity Law Allows Cutting Off Area-wide Internet Access

China’s recently proposed draft cybersecurity law makes it clear that the national Internet information authorities should perform the duties of supervision and management of network security. Once a publication or transmission of information that is prohibited by laws and regulations occurs, the authorities must demand the service provider to stop the transmission network operator, take measures to eliminate the information, and save the relevant records. When the above mentioned information comes from abroad, the authorities must notify the relevant agencies to take technical and other necessary measures to block the dissemination of the information.
The Draft emphasizes real name registration, requiring that Internet service providers should require the users to submit real identity information at the time of signing an agreement or confirmation or service. If the user does not submit real identity information, the service provider is not allowed to provide the related services. Any service provider who does not require users to submit real identity information, or who provides service to users who have not submitted their real identity is subject to a fine between 50,000 yuan (US$8,053) and 500,000 yuan (US$80,530). That provider may also be ordered to suspend all relevant business, stop or close operations, or have its relevant business license revoked.
The Draft classifies the websites or online systems that have a large number of users into the category of critical information infrastructure. It requires that the operator of the critical information infrastructure should collect and store important data such as citizen’s personal information within its borders. Any operator that stores Internet based data overseas, or provides data to overseas organizations or individuals without security assessments is subject to a fine between 50,000 yuan (US$8,053) and 500,000 yuan (US$80,530). It may also be ordered to suspend all relevant business, stop or close its operation, or have its relevant business license revoked. Executives directly responsible and other personnel directly responsible are subject to a fine between 10,000 yuan (US$1,611) and 100,000 yuan (US$16,110).
The Draft makes provisions for Internet security monitoring and an early warning and emergency response system. It requires that, when an Internet security incident occurs, the authorities at government offices above the county level should immediately start the network security emergency response plan and release the public-related warnings and relevant information. The Draft makes provision for Internet control: "For safeguarding national security and maintaining public order, out of the need to deal with major emergency social safety incidents, the State Council or provincial governments under the approval of the State Council can adopt temporary measures including limiting Internet communications in some areas."
Source: People’s Daily Online, July 9, 2015
http://it.people.com.cn/n/2015/0709/c1009-27275737.html
Briefings | | |   Information/Technology