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Nanfang Weekend: Integrating China’s Culture with the International Community

Nanfang Weekend published an article on China’s cultural integration. The article suggested that cultural integration needs flagship cultural products, or cultural aircraft carriers, to provide a major cultural influence to the world. The article argued that, though cultures in different countries are very diverse around the world, their underlining human civilizations are based on a common value system that the whole world shares. China should grasp that value system and develop its culture products in line with that value system in order to become a cultural “super power.”

[Ed: As China’s major state media continually deny that there are “universal values,” it is interesting to note that this article subtly hints that Western countries’ “universal values” are closer to the common value system of the world. The article pointed out, “(China’s) emphasis on the ‘Chinese characteristic’ and ‘China’s special situation’ is more focused on ‘individualism’ than on ‘commonality’ (of the world’s common value system).”]

Source: Nanfang Weekend Online, Jan 20, 2012
http://www.infzm.com/content/67963

Briefings | | |   Government/Politics

Chinese Scholar on Letting the Market Determine Interest Rates

Economic Information recently interviewed Wang Guogang, the Dean of the Institute of Finance and Banking at the Chinese Academy of Social Science (CASS). During the interview Wang explained, “For a long time, (China) has mainly used the administrative mechanism to regulate the market and has become an expert in using the administrative mechanism, but the end result is that (China’s economy) has been drifting further and further away from a market economy.”

In early January, China’s National Conference on Financial Work called for pushing forward on reform of the market-controlled interest rate or a more complicated interest rate establishment mechanism. Wang believes that reducing and weakening administrative factors, such as the government’s control of policy, is a pre-condition, which cannot be circumvented, for these reforms to occur.

Wang stated that the bottom line for the government’s regulatory body is not to let any financial institute go bankrupt. He asked, “In this way, how can we weed out the weak ones? Where’s the competition? Where’s the innovation? Where’s the development?” Wang also pointed out that currently both the government and the public keep their foreign currency as a reserve. Wang advocated that the government should open channels to export capital overseas in the form of financial loans or manufacturing funds, to form an RMB exchange market.

Source: CASS website, January 19, 2012
http://ifb.cass.cn/show_news.asp?id=44509

Briefings | | |   Government/Politics

Outlook Weekly: Four Challenges for China’s Economy

Outlook Weekly published an article discussing China’s economic growth in the mid to long term. It listed four challenges that China faces:

1. As the global economy is still depressed, the demand for exports may negatively impact China’s economic growth. In 2011, exports dragged down the GDP growth rate by 5.8%.

2. Consumption is likely to stay at the same level. However, the continued economic depression may cause consumption to decrease.

3. The pressure of inflation still exists due to a lack of land in cities, a rapid increase in labor and service costs, an upward adjustment in service industry pricing, the the continuous increase in the price of agricultural products as a result of urbanization, and the ongoing pricing reform

4. High financial leverage results in a risk of bad loans. The M2/GDP ratio, which was 180% in 2011, is higher than in both developed countries and developing countries that are at a comparable income level with China. Local governments and state-owned enterprises are both highly leveraged.

Source: Outlook Weekly, republished on Sohu.com, January 29, 2012
http://news.sohu.com/20120129/n333094430.shtml

Briefings | | |   Economy/Resources

Head of Xinjiang: Xinjiang Military Must Safeguard National Security and Stability

Zhang Chunxian, the Chinese Communist Party’s (CCP’s) Party Secretary of Xinjiang and the First Secretary of the Xinjiang Military Region requested that the Xinjiang military “defend the highest national interest” and “safeguard national security, the border, ethnic group unity, and social stability.” “Facing the complicated anti-separatist struggle, the military stationed in Xinjiang must continue to develop its quick response capability, to be able to ‘ensure success when fighting against terrorists, to ensure peace when maintaining stability, to ensure effective results when handling conflicts, and to ensure safety when patrolling.’”

Source:  China Review News, January 8, 2012
http://gb.chinareviewnews.com/doc/1019/7/0/3/101970384.html?coluid=151&kindid=0&docid=101970384&mdate=0108120046

Briefings | | |   Defense/Military

Interpreting Wen Jiabao’s Speech at the National Conference on Financial Work

China Review News (CRN) commented on Wen Jiabao’s recent speech on financial reform given at the National Conference on Financial Worik held in Beijng. Wen “suggested breaking the (state-owned banks’) monopoly and encouraging private money to enter the financial service field.” The speech also highlighted that the government’s work would be to “improve confidence in the stock market” in 2012.

A few points that Wen’s made in his speech:

1. “China has steadily advanced the international status of the Renminbi (RMB). China has signed a total of 1.3 trillion yuan (U.S. $200 billion) in bilateral currency swap agreements. The amount of cross-border trade in RMB has reached 2.6 trillion yuan (U.S. $400 billion).”

2. “We must acknowledge that the global financial crisis is not over yet. We must improve our sense of crisis and sense of responsibility, and prepare for adversity during times of prosperity."

3. Wen stressed that financial services should move to the real economy and stop “using money for speculation.” For the real economy, Wen wants to “effectively solve the hard-to-obtain-financing problem and the too-expensive-to-obtain-financing problem…”

4. Wen listed “guard against and mitigate the local government’s debt risk” as one of eight measures for China’s financial reform.

Sources
1. Xinhua, January 7, 2012
http://news.xinhuanet.com/video/2012-01/07/c_122551507.htm
2. China Review News, January 8, 2012 http://gb.chinareviewnews.com/doc/1019/7/0/2/101970247.html?coluid=10&kindid=253&docid=101970247&mdate=0108105700

Briefings | | |   Economy/Resources

Wen Jiabao’s Speech at the National Conference on Financial Work

Wen Jiabao attended the National Conference on Financial Work China held in Beijing on January 6 and 7, 2012, and gave a speech, which listed eight measures for China’s financial reform:

1. Provide more good-quality financial services for society’s economic development.
2. Deepen the reform of financial organizations.
3. Strengthen and improve financial oversight and prevent systematic financial risks.
4. Guard against and mitigate the local government’s debt risks.
5. Improve the development of the capital market and the insurance market.
6. Improve the financial macro-control system.
7. Expand the opening of the financial industry (to the world) and improve the capabilities to allocate financial resources and safeguard the level of protection for financial security.
8. Strengthen the development of the financial infrastructure and improve the environment for financial development.

Source: Xinhua, January 7, 2012
http://news.xinhuanet.com/video/2012-01/07/c_122551507.htm

Briefings | | |   Economy/Resources

The Moral Crisis in China, Part I – Seven Areas that Showcase China’s Moral Crisis

Part I – Seven Areas that Showcase China’s Moral Crisis

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The world may know that China faces a moral crisis, but may not realize how serious the problem really is. Considering specific examples, from officials raping an innocent child and then declaring her a prostitute to doctors treating a beggar to a nice meal and then killing him to harvest and sell his organs, from Chinese netizens singing eulogies to bin Laden after the U.S. killed him to the series of frauds that China perpetrated on the public at the Beijing Olympics, the world may gain a deeper understanding of the problem. This article is the first in a series that analyzes the moral crisis in China, raising issues of great concern both for the nation itself and for the world. The factors to be addressed include not just how the crisis manifests, but also its historical development both within the context of ancient Chinese history and the unfolding of events after the Communist revolution. Part I is an exploration of seven areas that exemplify the serious nature of China’s Moral Crisis.

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Analyses | | |   Opinion

China’s Cyberwarfare

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China is spearheading a war in cyberspace. Reports about China’s cyber-espionage or its attacks are mushrooming. A study of the available online information published in the Chinese media as well as the Western media leads to the conclusion that China has elevated cyberwarfare to a paramount strategic position and is fighting it using the “People’s War” (人民战争) Approach.

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Analyses | | |   Opinion