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China Radio International Launches Cairo Studio

On November 7, 2012, China Radio International (CRI), the PRC’s external propaganda broadcaster, held an inauguration ceremony for its Cairo studio in the Egyptian capital. The studio was set up in early October of 2012. It produces 16.5 hours of programming each week, broadcast by FM stations in Mauritania for the Arab countries. Its ten programs in the Arabic language consist mostly of interviews and discussions about cultural topics.

According to the director of CRI’s Middle East branch, all of the staff members at the studio are recruited locally. “By using the language style and means of communication that the audience in Arab countries can easily accept, they are introducing China’s history, culture, achievements, and ideologies to the Arab audience.”

As part of the task of producing programs tailored to local tastes, CRI has thus far commissioned the establishment of nearly 20 overseas program studios in major cities overseas.

Source: Xinhua, November 7, 2012
http://news.xinhuanet.com/world/2012-11/07/c_123927002.htm

China’s Fiscal Revenue Slows Down, with Non-tax Revenue Filling the Gap

The Ministry of Finance’s statistics show that the fiscal revenue for January-September was 9.1 trillion yuan (US$1.5 trillion), an increase of 892.5 billion (US$143 billion) or 10.9% over the same period last year and 18.6 percent points lower than the growth for the same period last year. The tax revenue was 7.7 trillion yuan (US$1.2 trillion), a year-over-year increase of 8.6 percent, down 18.8 percent from the same period last year.

According to an official from the Ministry, since the beginning of this year, due to the downward macroeconomic pressure, the local fiscal revenue growth turned weak. To compensate for the gap, non-tax revenues, or various types of fees, are becoming an increasing source of fiscal revenue.

For the first three quarters of 2012, the non-tax revenue in many provinces and cities has grown far more than the tax revenue. Tianjin saw an increase in non-tax revenue (54.75%) that was more than 40 percentage points higher than the increase in tax revenue (10.86%); Anhui’s non-tax revenue (52.1%) increased more than 30 percentage points more than tax revenue (15.3%); Guangdong had non-tax revenue (25.89%) growing higher than the tax revenue (8.15%) of nearly 18 percentage points. In some places, imposing fines has become an important part of the non-tax revenue.

Source: Nanfang Weekend, October 30, 2012
http://www.infzm.com/content/82459

What Went Wrong With US China Policy

Twenty years ago, the United States won the cold war by disintegrating the Soviet Union. Now, facing the People’s Republic of China, a regime that once looked up to the Soviet as the “Big Brother,” and whose economic and military strength still lags behind that of the United States, the United States often finds itself accommodating to instead of changing China. The fact is: the United States has grown ever weaker in promoting human rights and democracy in China, while the PRC has grown more assertive in the international arena.

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China to Up Overseas Investment Despite Huawei and ZTE Probe

China’s National Development and Reform Commission (NDRC) announced 16 overseas investment projects, as two of its largest telecommunications companies – Huawei and ZTE – are blocked by U.S. lawmakers as national security threat.

According to Xinhua, the sheer number of the announced projects hit a new high this year, including seven energy related projects as well as others spanning the areas of finance, communications, and infrastructure. A Ministry of Commerce official said that the government is willing to support enterprises’ overseas direct investment to divert the excess capacity and alleviate the Europe and the U.S.’s anti-dumping pressure.

The official statistics show that China’s net overseas direct investment in 2011 was $74.65 billion, a year-on-year growth of 8.5%, ranking No. 6 around the world. As of the end of 2011, a total of 13,500 investors established 18,000 enterprises in 177 countries (regions). It’s estimated that the investment will exceed $500 billion during the “12th Five-Year Plan” period (2012 – 2017).

Source: Xinhua, October 11, 2012
http://news.xinhuanet.com/2012-10/11/c_113343280.htm

A Communist Capitalist Sues President Obama

The Chinese-owned Ralls Corp. has added President Barack Obama as a defendant in a lawsuit alleging the U.S. government exceeded its authority in blocking the firm’s planned wind farm projects in Oregon near a Navy base. In an amended complaint, Ralls Corp. said Obama “acted in an unlawful and unauthorized manner” in citing national security grounds to order it to halt construction of four wind farm projects near the Naval Weapons Systems Training Facility in Boardman, Oregon.

Two senior managers with the Chinese SANY Group, a private company and the largest construction machinery manufacturer in China incorporated Ralls Corp. in the United States. According to BBC Chinese, it’s believed that SANY has a military background, which may be related to its founder Liang Wengen, who had three years of experience in a Chinese military enterprise. There is no doubt that Liang, who, in 2011, was listed as China’s richest man, is a private sector entrepreneur with close ties to the government. Liang joined the Chinese Communist Party (CCP) in 2004 as the chairman of SANY. In 2007 and 2012, he became a representative of the 17th and 18th Congress of the CCP. Liang is said to be a likely alternate member of the Central Committee of the CCP, a group of 370 of the most politically powerful people in China. SANY is said to have an unwritten rule that anyone who wants to be promoted to a management position must submit an application to join the Party. Liang once said, “It was not until I started my own business that I realized that one can only fulfill his ideals by connecting himself to the cause of the Party.”

[Editor’s note: Foreign investment in U.S. companies is reviewable by the Committee on Foreign Investment in the United States (CFIUS). CFIUS recommended denial of the investment from China because the wind farms are all within or near the restricted air space of the naval training facility.]

Source: BBC Chinese, October 3, 2012
http://www.bbc.co.uk/zhongwen/simp/chinese_news/2012/10/121003_sany_liang_wengen.shtml

China’s Influence in Africa Continues

To date, China has launched 31 Confucius Institutes and five Confucius Classrooms in 26 African countries. Some have incorporated the Chinese language into a system in which students receive an academic degree or college credits.

In the past two years, China has provided 5,710 government scholarships to African countries. It plans to implement the “African Talent Project.” Over the next three years, China will train 30,000 professionals in different fields and provide 18,000 government scholarships, as well as offer job training and support.

In recent years, China has been advancing into Africa by means of the economy and culture and continues to increase its influence in the continent. Through 2011, China has been Africa’s largest trading partner for the third consecutive year. The trade volume between the two countries has reached a record $166.3 billion. As many as 2000 Chinese companies have made direct investments in Africa, totaling $14.7 billion.

Source: BBC Chinese, September 26, 2012
http://www.bbc.co.uk/zhongwen/simp/chinese_news/2012/09/120926_china_africa.shtml

2012 Internet Roundtable for Emerging Countries

China’s state-run Xinhua News Agency reported on some remarks that Wang Chen, head of the State Internet Information Office, made in a keynote speech at the 2012 Internet Roundtable for Emerging Countries in Beijing.
Wang said, "Emerging countries have a lot of common understanding, similar conduct, and appeals regarding the development of the Internet, as well as common interests and a sound basis for cooperation." 
The roundtable, attended by government officials, Internet experts, and corporate representatives from China, Russia, Brazil, and South Africa was intended as a platform for emerging countries to conduct exchanges and share experiences regarding the development of the Internet, he said.
The annual Internet Roundtable aims to increase Internet-related cooperation between China and other emerging nations to cope with increasingly severe challenges in Internet security.
Source: Xinhua, September 18, 2012
http://news.xinhuanet.com/politics/2012-09/18/c_113123769.htm