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All posts by LLD - 137. page

People’s Daily: China’s Talent Loss Tops the World

After a screening of 1,907 of the world’s top technologically innovative, talented people in six fields, including biological and biochemistry, computers, physics, agriculture, mathematics, and chemistry, the Chinese Academy of Sciences found that China has the leading edge in physics, mathematics and computer science. However, the number of China’s most talented who have been lost tops the world. An average of 87 percent of those in the science and engineering fields have chosen to stay overseas. An official from the Central Talent Work Coordination Group Office pointed to several problems that China has: a shortage of high-level, innovative, creative talent; a lack of innovation capabilities, and a mismatch between the demand for and the supply of talent.

In this current "war for talent," many developed countries are using immigration reform to attract or retain talented people. In recent years, nearly a million overseas Chinese students have chosen to return to China under the "thousands of people plan," including over twenty thousand with high-level talent.

Source: Xinhua, June 6, 2013
http://news.xinhuanet.com/2013-06/06/c_124820431.htm

Briefings | | |   Economy/Resources

Expert Blames SOE’s Privileged Status for New College Graduates’ Low Employment

The year 2013 has seen the largest number of college graduates since 1949. With 6.99 million new graduates, there were 190,000 more that last year. However, the rate of employment for these graduates is less than 30 percent. In fact, a large number of small and medium sized enterprises (SMEs) need college students, but many students do not want to work at SMEs.

Zhang Weiying, a prominent Chinese economist and  head of the Guanghua School of Management at Beijing University, attributed the mismatch in the Chinese job market to the ingrained notion that only a job at a state-owned enterprise (SOE) is secure; it is called the "iron rice bowl," whereas a job with a private enterprise is only good for a temporary situation. Zhang believed that the government has set up a large number of SOEs; they receive more resources and better treatment than private enterprises. If SOEs did not have such an identity, employment opportunities would be relatively fair and students would not have to pick and choose.

A media survey found that many students use personal connections to hunt for jobs at SOEs. Many employers’ hiring decisions are based upon the applicant’s connections rather than their capabilities. The students who get into SOEs through personal connections create a new form of nepotism. Beijing News conducted a recent survey which showed that about 21.5 percent of those surveyed admitted this regarding the question, "Have you used personal connections when looking for a job?"

Source: Beijing News, carried by Caijing magazine, May 30, 2013
http://economy.caijing.com.cn/2013-05-30/112843978.html

Briefings | | |   Economy/Resources

Qiushi Article Criticizes Constitutional Governance as Belonging to Capitalism

Red Flag Manuscript, the bi-weekly publication of the Chinese Communist Party’s Central Committee’s Qiushi Journal, published an article that criticized Constitutional Governance, saying its ideals and key institutional elements “only belong to capitalism and the dictatorship of the bourgeoisie."

Yang Xiaoqing, a law professor at Renmin University of China, authored the article. He compared Constitutional Governance to the Chinese regime’s "Socialistic People’s Democracy." For example, the former is based upon private ownership and a market economy, while the latter is based on an economy of public ownership; the armed forces under Constitutional Governance are neutral and belong to the government, while the military in the "Socialistic People’s Democracy" is under the absolute leadership of the Communist Party. The author believes that "Constitutional Governance, as a comprehensive governance system, is not universally applicable" and that "its key institutional elements and ideals do not fit the socialist countries." The article also disapproved of Constitutional Governance as being deceptive. "The freedom and democracy on the surface cover up its essence, which is the freedom and democracy of the bourgeoisie and the dictatorship of the bourgeoisie." "Constitutional Governance boasts of a separation of powers with checks and balances, but, in reality, it is not a true separation of powers."

The article concluded that China’s "People’s Democracy" must not be called "socialist constitutional governance" because the people’s democracy and constitutional governance are two fundamentally different political systems. In the end, constitutional governance does not fit China’s national conditions.

Many Chinese Internet users criticized the article. One user responded, "It seems the people at high levels have never thought about really implementing the rule of law, democracy, constitutional governance, and human rights." Another said, "The root of China’s problems is the absence of constitutional government. Now someone blatantly claims, on one side, that a constitutional government does not fit China, but, on the other, it cannot really solve the increasingly serious social crisis. Either go for constitutional government, or go for the guillotine." Another one said, "The core of constitutional governance is democracy, the rule of law, and human rights. It is in favor of limiting the government to protect the rights of citizens. If one actually puts a capitalistic label onto democracy and human rights, that amounts to covering up the reality with its own ideology."

Source: BBC Chinese, May 21, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/05/130521_china_capitalism.shtml

Briefings | | |   Government/Politics

Wen Wei Po: Party’s Central Committee Issued Document on the Ideology Struggle

According to Hong Kong based Wen Wei Po, on May 8, 2013, the Chinese Communist Party Committee of Chongqing City’s Urban and Rural Construction Committee held a meeting to study the Notice on the Current Situation in the Field of Ideology, which the General Office of the Chinese Communist Party’s Central Committee had issued.

It was mentioned at the study session that "the Party’s Central Committee has a profound analysis and firm attitude toward seven prominent issues in the field of ideology. The Party has more clarity and understanding of the acuteness and complexity of the struggles in the field of ideology."

The report believes that it is the first time that the Party has issued official documents of this kind since the 18th National Congress. It was found by searching online that the "notice" has been issued at the grassroots level of the hierarchy across the nation. At present, government authorities and Party committees at all levels have been organized to study the “notice.”

Source: Wen Wei Po, May 14, 2013
http://trans.wenweipo.com/gb/news.wenweipo.com/2013/05/14/IN1305140064.htm

Briefings | | |   Government/Politics

CASS: Imbalance in Housing Market, Price Hikes to Continue

According to the National Bureau of Statistics, for the month of March 2013, 68 out of the 70 cities across the country saw housing prices rise higher than the previous month. A report, released by the Chinese Academy of Social Sciences (CASS), pointed to the observation that overall prices of real estate rebounded after the State Council’s February measures to curb housing prices. The report warned of the fact that supply and demand in the housing market are out of balance and that prices face the danger of getting completely out of control.

The industry generally believes that, by adopting means under a planned economy to handle commercial residential real estates driven by market forces, the government has moved on the wrong direction in its current real estate market regulation policy.

In analyzing the causes of the current round of price increases, Bowen Xi, a manager at a real estate company, mentioned three main factors. The first is the fiscal pressure of local governments. At present, only Beijing city has implemented the 20 percent transaction tax; other cities are looking for ways to circumvent it. Second, on a long-term basis, what determines the housing price is supply and demand. There are still large numbers of people who do not have a house. Due to urbanization, for a long period of time, many people have been moving into cities. Third, China’s prices are also affected by the monetary policy of the Western countries. Quantitative easing of western currencies will result in an issuance of more RMB to the market, causing an increase in the price of assets.

Source: People’s Daily, May 7, 2013
http://house.people.com.cn/n/2013/0507/c164220-21385112.html

Briefings | | |   Economy/Resources

People’s Daily: 60+ Population to Exceed 200 Million in 2013

China’s Vice Minister of Civil Affairs in Beijing recently said that, for a long period of time, China will be facing the serious challenge of having an aging population. As of the end of 2012, the population of elderly who were 60 years and above had reached 194 million, accounting for 14.3 percent of the total population. That figure is expected to exceed 200 million in 2013, 400 million by 2034, and 472 million by 2054.

According to statistics, China currently has 36 million elderly who are disabled, 22 million who are of an advanced age, 99 million who live alone, and 23 million who are living in poverty.

Source: People’s Daily, May 2, 2013
http://cppcc.people.com.cn/n/2013/0502/c34948-21342382.html

Briefings | | |   Economy/Resources

Chinese Economist: Entrepreneurs’ Emigration Overseas Is Unfortunate for the Economy

Xu Xiaonian, economist and professor at the Sino-Europe International Business Institute, commented about China’s economy. Xu said that nobody, including entrepreneurs, has a sense of security when “the state advances as the private sector retreats.”

During a public event on April 21, Xu said that the most valuable resource in a country’s economic development is its entrepreneurs. It is an imperative task for the Chinese government to consider how to keep these entrepreneurs in China. Xu said, “(The Authorities) cannot do things in the style of the Cultural Revolution – when the authorities could detain people and confiscate (private) property at will. To do so will destroy people’s sense of security. (Entrepreneurs) will not only emigrate overseas, they won’t even have any investment plan inside China.”

The Hurun Rich List 2012 showed that 44% of the rich people in China are considering emigrating overseas; 16% have already emigrated or in the process of emigration.

Source: BBC Chinese, April 22, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/04/130422_china_rich_immigration.shtml

Briefings | | |   Economy/Resources