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All posts by RWZ - 220. page

Xinhua: Degree of Mutual Trust in Chinese Society Fell Significantly

Xinhua recently reported that the Chinese Academy of Social Sciences released the latest bluebook entitled, "Chinese Social Mentality Research Report 2012-2013." The research, which involved a survey of over 1900 people, showed that the overall trust level among Chinese people fell below 60 points, which is the redline, or bottom line for trust among people. Only around twenty percent of the people surveyed suggested they might trust a stranger. The conclusions in the bluebook triggered strong responses from the Chinese public. In addition to the distrust among individuals, the research showed that the trust degree between consumers and commercial businesses has reached a low point. The trust relationship between citizens and the government, people and the police, and between patients and doctors has also worsened. Experts pointed out that the research results demonstrated clearly that the moral standard in today’s Chinese society is rapidly slipping downwards. The report called for reforms in the legal and the social systems, as well as stopping the government’s abuse of power.
Source: Xinhua, February 17, 2013
http://news.xinhuanet.com/fortune/2013-02/17/c_124352323.htm
Briefings | | |   Social Stability

South Korean Media: Signs of New North Korea Nuclear Test in Planning Stage

Xinhua recently reported that, based on information provided by South Korean media, South Korean authorities obtained intelligence indicating that North Korea is preparing for another nuclear test. Transportation activities at the same nuclear test site have been discovered and they match the pattern of the preparation work done before previous tests. Sources from the South Korean military suggested that they believe a new nuclear test is ready, pending only a political decision. The Xinhua report also mentioned an Agence France-Presse news piece suggesting that, according to a U.S. think tank, North Korea is preparing a long-range missile launch. 
Source: Xinhua, February 17, 2013
http://news.xinhuanet.com/world/2013-02/17/c_124351493.htm
Briefings | | |   Geo-Strategic Trend

Xinhua: Russia Plans to Strengthen Relationship with China

Xinhua recently reported that Russian President Putin approved a new foreign policies framework. Traditionally a newly elected Russian president always develops a foreign policies framework as a guide for his term of service. According to an official document released on the Presidential website, developing friendly relationships with China and India is the most important direction Russia is taking. The document expressed the belief that the Shanghai Cooperation Organization (SCO) is having a bigger and bigger constructive impact on the Asia-Pacific region. Russia is planning to strengthen the “comprehensive strategic partnership” relationship with China. This indicates the active development of cooperation in all areas. The new policies also stated that Russia intends to cooperate with the United States in some areas, with the condition that the U.S. will not interfere with other nation’s internal affairs.
Source: Xinhua, February 17, 2013
http://news.xinhuanet.com/2013-02/17/c_124351244.htm
Briefings | | |   Geo-Strategic Trend

CRN: Safety of Food Supply Calls for New Strategy

China Review News (CRN) recently published an article discussing the growing risk of managing the availability of food. China’s food self-sufficiency rate has been on a continuous decline. Chinese Customs has provided statistics which show that, in 2012, China’s food imports increased by 25 percent over the year 2011. Imported food now constitutes almost 14 percent of all of China’s food supply. In 2012, China’s food importing demands accounted for 20 percent of the global food exporting market. This means any fluctuation in the international food market will have a major impact on China’s food supply. China is currently the second largest food buyer in the world (after Japan). The article suggested that China must have a significant policy focus as well as implementation on domestic agricultural development. In the meantime, China should invest internationally to secure food supply sources on a nation-to-nation level. Lastly, the author called for serious action to be taken on activities that waste food, such as having no control over public funds spent on meals. 
Source: China Review News, February 8, 2013
http://www.zhgpl.com/doc/1024/3/3/9/102433990.html?coluid=53&kindid=0&docid=102433990&mdate=0208072923
Briefings | | |   Social Stability

CRN: Capital Market Firewall Required for RMB Internationalization

China Review News (CRN) recently published an article discussing risks and risk remediation of the internationalization of the Chinese currency, the RMB. The article expressed the belief that, if the RMB is to compete head-to-head against the US Dollar and the Euro, then opening up capital accounts for free exchange will be required. However, without proper protection, that openness may result in a major disastrous outcome. The article focused on three primary risk areas as well as their “firewall policies”: (1) A complete market based floating exchange rate is required for full internationalization and a corresponding rate fluctuation risk control must be in place. (2) Free capital inflow may cause a major domestic financial bubble in areas such as the housing market. Comprehensive administrative and tax policies can help. (3) A free currency market may allow a massive capital outflow like the one in the 1990s that triggered the Asian Financial Crisis. Action must be taken to increase the rate of return on investments. The article concluded by emphasizing the importance of firewall-building to improve the readiness for RMB internationalization. 
Source: China Review News, February 9, 2013
http://www.zhgpl.com/doc/1024/3/5/0/102435073.html?coluid=53&kindid=0&docid=102435073&mdate=0209074017
Briefings | | |   Economy/Resources

Japanese Embassy: Living in Beijing is Like Taking Part in an Experiment on Animals

People’s Daily recently reported that, on February 8, 2013, the Japanese Embassy held a discussion forum with the Japanese people who live in China. The forum focused on the topic of the recent widely discussed air pollution issue. The Embassy commented that people who currently live in Beijing feel as if they are part of an experiment on animals. Around 150 Japanese citizens attended the forum. Environmental specialists explained the negative impact of the PM2.5 pollution sources. They also conducted a demonstration of the use of masks. All attendees expressed deep concern regarding their own health. Many of them are seriously considering returning to Japan. Embassy medical officers at the forum provided medical advice. The Embassy also arranged display booths so that a number of air purifier vendors could provide information on their products.
Source: People’s Daily, February 8, 2013
http://gongyi.people.com.cn/n/2013/0208/c152509-20467590.html
Briefings | | |   Geo-Strategic Trend

Xinhua: Several Provinces Require Domestic-Branded Cars for Government Procurement

Xinhua recently reported that several provinces just released regulations that require government branches to use domestic-branded cars. These new rules are the implementation of the general requirements that the new Communist Party leadership recently developed. These provinces include Ningxia, Hunan, Gansu, Anhui, and Xinjiang. Shanghai and the City of Guangzhou (the capital of Guangdong Province) have already started purchasing domestic cars. However, the new regulations apply only when current government cars reach the end of their life. Meanwhile, there is still no official Catalog of Domestic Cars, which, starting in 2011, triggered a large internal debate. The main pressure came from foreign governments. China did not join the optional WTO Agreement on Government Procurement. 
Source: Xinhua, February 4, 2013
http://news.xinhuanet.com/local/2013-02/04/c_114598573.htm
Briefings | | |   Economy/Resources

CRN: A Chinese Company Now Operates Gwadar Port

China Review News (CRN) recently reported that a Chinese company now operates the Pakistani port named Gwadar. Gwadar Port is a warm-water, deep-sea port located on the Arabian Sea, at the mouth of the Persian Gulf, approximately 290 miles west of Karachi. The Port is situated near the strategic Strait of Hormuz and its busy trading and oil shipping lanes. This Chinese operating power has significant value for constructing oil pipelines from the Middle East to Western China. The Port also offers China a land-based path to the Indian Ocean. However, although the Gwadar Port appears to be a good opportunity for the Chinese Navy to establish a military base, the infrastructure has significant limitations. Vessel and weapon repair facilities, as well as ammunition storage and medical supplies, are not available. In addition, a strong Chinese presence at the Gwadar Port arouses concern in both India and the United States. 
Source: China Review News, February 3, 2013
http://www.zhgpl.com/doc/1024/2/5/9/102425913.html?coluid=169&kindid=0&docid=102425913&mdate=0203000522
Briefings | | |   Geo-Strategic Trend