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All posts by LLD - 133. page

Jeju’s Immigration Policy Makes Chinese the Largest Land Buyers in South Korea

Chinese have become most generous buyers in South Korea’s land market. As of the first quarter of this year, the area of Chinese-owned Korean land reached 5.7 million square meters, far more than that held by Europeans and Americans. What the Chinese want most out of the purchase of a property in Korea’s Jeju Island is immigration.

With Jeju’s weak economy, the island launched a preferential immigration policy. Starting in February 2010, as long as foreigners invest 500 million won (about 2.7 million yuan, US$0.37 million) in Jeju’s resorts, hotels, and other "residential facilities for the purpose of holidays and rest," they will be qualified to live on Jeju Island for five years, after which they will be granted permanent residency in South Korea, enjoying the same education and health insurance benefits as Korean citizens. After the implementation of this policy, the number of Chinese buyers increased substantially. Chinese-owned land increased from 49,000 square meters at the end of 2010 to 485,000 square meters at the end of March 2013, almost 10 fold in two years.

Chinese buyers of Jeju land come mainly from three areas. The first is northeast cities such as Shenyang; the second is from Beijing; and the third is the Yangtze River Delta cities, including Shanghai and Nanjing. All these three areas are within a two hour direct flight from Jeju.

Source: Beijing Youth Daily, reposted on Xinhua, August 8, 2013
http://news.xinhuanet.com/2013-08/08/c_125133562.htm

Levin Zhu: China’s Real Personal Income Growth Has Dropped over the Past 10 Years

Levin Zhu, President and CEO of China International Capital Corporation, said on China Central Television’s (CCTV) morning financial program that, over the past 10 years, China’s economy has maintained steady growth, but the growth of the Chinese people’s real income has been declining. Personal savings account for only 10% of national savings. This is not conducive to stimulating a consumer-driven economy. Only by raising the people’s income level as quickly as possible, can consumption play the role of boosting the economy.

Levin Zhu is the son of former Premier Zhu Rongji. Last July, Fortune magazine named him one of "Asia’s 25 most Influential Business Leaders."

Source: Website of China Securities Journal, re-posted by www.sohu.com, July 25, 2013
http://business.sohu.com/20130725/n382540982.shtml

Number of Chinese Netizens Reaches 591 million, Mostly Mobile Phone Users

On July 17, the China Internet Network Information Center (CNNIC) released its 32nd issue of the China Internet Development Statistics Report. It showed that, as of the end of June 2013, the number of China’s netizens reached 591 million. Of those, the mobile phone users reached 464 million, or 78.5 percent.

The first half of this year has seen 26.6 million new netizens, 70.0 percent of whom use their mobile phone to access the Internet. The Internet has also expanded rapidly in rural areas, with 54.4 percent of the new Internet users coming from rural areas. The CNNIC report attributed the rapid increase to the development of the 3G network, wireless network, and mobile phone app innovations. Among all means of communications, Chinese netizens still favor instant messaging. As of the end of June 2013, 497 million people were users of instant messaging. Of those, 397 million used their mobile phones to send and receive messages.

Source: People’s Daily, July 18, 2013
http://finance.people.com.cn/n/2013/0718/c1004-22234040.html

Xinhua: Japanese Defense Whitepaper Aimed at China

Xinhua recently reported that the newly released Japanese Defense Whitepaper is full of false statements against China. The Japanese Cabinet approved the latest Whitepaper on July 9. It suggested that the Japanese government is pushing hard to counter the “Chinese military threat.” The language in the Whitepaper suggested that China’s military activities at sea are a threat to the safety not only of Japan but to the entire region as well. The report however expressed the belief that this is just a game the Abe administration is playing in order to justify its attempts to modify the Japanese constitution and to break the traditional military limitations Japan has had in place since the end of the Second World War. The Whitepaper claimed that China has taken a lot of “dangerous steps” to change the existing international order and that, in the past ten years, China’s defense budget has tripled while Japan’s showed a five percent decline. The Chinese government issued an official rebuttal immediately, saying that the Japanese allegations are simply lies and Japan is just looking for excuses to increase its defense spending.
 
Source: Xinhua, July 11, 2013
http://news.xinhuanet.com/mrdx/2013-07/10/c_132527928.htm

Yu Zhengsheng: Deepening the Fight against the Dalai Lama

Xinhua recently reported that Yu Zhengsheng, the Chairman of the National Committee of the Chinese People’s Political Consultative Conference and a member of the Politburo Standing Committee of the Communist Party, emphasized the importance of continuing and deepening the fight against the Dalai Lama. He made the comment during a trip to the Tibetan area of Gansu Province. Yu also called for more investments in the Tibetan regions to lift the people’s living standards. He suggested that the Tibetan people will provide better support for the Communist Party only when their living conditions are improved. Yu also visited some Buddhist temples and asked the locals to “love the country.” In a speech given to the local government officials, Yu pointed out that the “self-governance” idea that the Dalai Lama came up with is a complete violation of the Chinese Constitution and is an obvious attempt to divide the country.

Source: Xinhua, July 9, 2013
http://news.xinhuanet.com/politics/2013-07/09/c_116466690.htm

Xinhua: Uncertainty about the Chinese Economy Lowers Confidence

Xinhua recently reported on some research that the firm Grant Thornton, an international organization of independent audit, tax, and advisory firms, had done on the business indicators of a number of Chinese companies. The study titled, International Business Report (IBR), revealed that 40 percent of the surveyed Chinese companies found the uncertainty that the economy faced was having a major impact on the growth of their businesses. The research results also showed that four percent of the companies felt optimistic about the future. This number had dropped 21 percent from the first quarter to the second quarter of this year. The study indicated that expectations of company sales, product prices, export volume, hiring plans, and profits had all dropped from the first quarter. Especially for the indicators of exports, employment, and profitability, the companies’ level of confidence dropped to a two-year low. Investments in research and development declined by 14 percent in the past 12 months; most of the companies were increasing their cash reserves. Grant Thornton concluded that there is no clear sign of an economic recovery for the Chinese market. The same report for the U.S. market showed a dramatic increase of 24 percent in the confidence level.

Source: Xinhua, July 11, 2013
http://news.xinhuanet.com/fortune/2013-07/11/c_116499670.htm

Drop in China’s Foreign Trade Exacerbates Fears of Economic Slowdown

On Wednesday, July 10, the General Administration of Customs (GAC) released data showing that, in June, the total value of China’s imports and exports was two trillion yuan (US$0.3 trillion), down two percent from the same month last year. The decline in exports was as high as 3.1 percent. The data was beyond analysts’ expectations. Many expected China’s exports to grow at about four percent in June. Meanwhile the imports in June also fell by a lesser amount of 0.7 percent, indicating a weakness in China’s domestic demand.

Zheng Yuesheng, an official at GAC, worries about the severe challenges that China’s foreign trade faces. He predicted more difficulties in the second half. Zheng suggested that China needs to adjust the structure of its foreign trade to protect its products in the global market.

Source: BBC Chinese, July 10, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/07/130710_china_export.shtml

Xi Jinping Seeks Unity and Discipline among Politburo Members

Xinhua News Agency reported on Tuesday, June 25, that, at a special meeting of the Politburo, the Chinese Communist Party’s chairman Xi Jinping said, "To see whether the Politburo is strong or not and whether the Politburo members are strong or not, one has to look first at whether they are politically strong or not. To strengthen the work of the Politburo, we must give top priority to ideological and political development."

Xi urged the Politburo to "strengthen the study of Marxist theory, in particular, Deng Xiaoping Theory, the thoughts of the ‘Three Represents,’ and the scientific concept of development, so as to grasp the scientific world view and methodology, be equipped with ideological weaponry, remain firm with the ideals and faith, and strengthen political sensitivity and discrimination," in order "to understand correctly and to firmly safeguard the bigger picture of the Party and the state, of reform, development, and stability, of the Party’s leadership and the security of the socialist regime, and of the unity of the Party and the whole nation."

He also asked the Politburo members to play an exemplary role in "strictly disciplining their relatives and staff members, refraining from abusing power, and not seeking personal privileges."

Source: BBC Chinese, June 25, 2013.
http://www.bbc.co.uk/zhongwen/simp/china/2013/06/130625_xijinping_speech.shtml