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Xinhua: As the Number One US Debt Holder, China Should Have a Louder Voice

Xinhua published an article from Security Times, which argues that since China has become the number one debt holder of the US, China should have more say.

The article argued that accumulating US dollars in the short-term by China is unavoidable since other foreign reserves are not as appealing as the US dollar, but this approach may be harmful to China in the long term. As the creditor, China faces two risks: the default risk of the US dollar, which is unlikely, and the exchange rate risk. It was written in the article that China should reduce its foreign reserve and accumulate more raw materials instead.

Source: Securities Times, November 20, 2008
http://www.p5w.net/today/200811/t2018539.htm

Also published on: Xinhua, November 20, 2008
http://news.xinhuanet.com/fortune/2008-11/20/content_10385110_1.htm

Briefings | | |   Economy/Resources

Xinhua Commentary: China Should not Have a High Tone at the G20

Xinhua published an article suggesting that China should take care of itself before playing a major role in the international financial system. It argued that the governor of the central bank of China, Zhou Xiaochuan’s suggestion of “replacing the US dollar” with a Super Reserve Currency under the IMF is unrealistic. Even if that happens, China may still not get more say at the IMF as it has been single-handedly maneuvered by the US for so long.

It further argued that so far China has been less impacted by the financial crisis not because China has a sound financial system, but rather because China’s financial system has not been fully opened to the world. China’s social and political systems are not yet ready for China to play the role of world financial leader.

So China should continue to remain low key. Its practical approach is to reduce the IMF’s international role by diverting the IMF into other regional financial and economic organizational roles and develop the Renminbi to make it strong enough to stand up to the US dollar and the Euro. Only when China is capable of providing the alternative currency reserve, can China have the ability to establish a just and fair international financial order.

Source: Xinhua, March 30, 2009
http://news.xinhuanet.com/herald/2009-03/30/content_11098132.htm

Briefings | | |   Economy/Resources

Xinhua: Why the US Has Been Friendly to China in the South China Sea

Xinhua’s Special Military Commentator said that dispatching USS Chung-Hoon to South China Sea is a friendly gesture by the US DOD. It demonstrates US “hedging” strategy of both “engaging” and “deterring” China.

Xinhua said that selecting Chung-Hoon itself is a “well thought-out decision” by the US Pacific Command. First, instead of choosing a ship from the nearby Japanese Sea it chose Chung-Hoon, which was far from the incident water and needed 4 to 5 days to get there. Those 4 to 5 days gave US and China enough time for diplomatic maneuvers. Second, the ship itself has an “historical relationship” with China as it accompanied the Chinese Navy’s visit to Pearl Harbor in 2006.

Source: Xinhua, March 23, 2009
http://news.xinhuanet.com/herald/2009-03/23/content_11056685.htm

Briefings | | |   US-China Relations

Study Times: The Recession’s Impact on Court Cases and How to Deal with It

In this article author Gao Yang addresses how the global recession is creating social instability in China. This is reflected in the courts as a large number of lawsuits are brought forward to settle disputes. He states that the People’s Courts should be better prepared to respond to these challenges and lists some general approaches.

Gao lists several sources of the social unrest: disputes between companies and their employees due to layoff or salary reduction; home owners not applying for mortgages or being delinquent on mortgage payments; increase in begging and petty theft as people living on the edge lose their means of living; popularization of illegal fund-raising as investors looking for alternatives; counterfeit money and credit card crimes; land expropriation disputes as the government pushes through its economic stimulus package; land struggles as farmers return from the city to the country; and mounting unemployment pressure, especially from college graduates.

Source: Study Times, March 23, 2009

http://www.studytimes.com.cn/WebPage/ny1.aspx?act=0&id=2520&bid=5

Study Times:

The Party School of the Central Committee of the Chinese Communist Party produces Study Times; it was established in September 1999. The paper targets the national party organization and party cadres of all levels, as well as intellectuals. It is the only party paper that specializes in training and is publicly distributed in and outside of China. 

http://www.studytimes.com.cn/WebPage/sbjj.aspx?id=7

Briefings | | |   Social Stability

Access to Youtube Blocked from China

Internet surfers in China are no longer able to visit the video sharing website Youtube.com, due to the site carrying some scenes of Tibetan monks being beaten by the Chinese Armed Policemen.

 

A spokesperson of the China Ministry of Foreign Affairs said that the Internet is open in China, but for national security purposes, it needs to be managed to prevent spreading “poisonous information.” He said that he is unaware of the case of Youtube.com.

 

BBC Chinese reported that since January, China has closed several hundred websites, including some popular blogs, as well as websites popular among Tibetans. Investigations confirm that China still blocks access to certain websites, including BBC Chinese.com.

 

Source: BBC Chinese, March 24, 2009
http://news.bbc.co.uk/chinese/simp/hi/newsid_7960000/newsid_7961100/7961110.stm

Briefings | | |   Information/Technology