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All posts by RWZ - 228. page

CRN: China’s Real Challenges

China Review News (CRN) recently published a commentary suggesting that real challenges lie ahead for China over the next five to ten years. The author expressed the belief that the true issues are not the international environment or military conflicts. Instead, the true issues are domestic social reforms, the financial system, and the Internet. In five to ten years, China will approach the point where the size of its economy is close to that of the United States and China’s power in the areas of science and the military will enjoy major improvements. The author suggested that the U.S. will do the following to maintain its leadership: attack the Chinese currency; control the Chinese financial system by participating in China’s reforms; push “Internet freedom” and promote democracy; support human rights lawyers, underground religions, and political opposition; agitate among China’s allies and neighboring countries; and establish pro-US international rules in a number of areas. 
Source: China Review News, August 2, 2012
http://www.zhgpl.com/doc/1021/8/6/6/102186604.html?coluid=53&kindid=0&docid=102186604&mdate=0802071037

CRN: 60% of the Souvenirs at the London Olympics are from China

On July 29, 2012, China Review News (CRN) reported that Chinese products are trying to compete in the market at the London Olympics. For example, a Beijing company provided about 20,000 square meters of sod. All of the bags that the Netherlands delegation used, as well as all tennis bags and bags for ambulance personnel, were made in Fujian Province. Around 50 million of the flags of all sizes, that were used officially, were made in Zhejiang Province, in addition to paper cups, paper plates, hats, and folding chairs. Other official Olympics products such as bedding supplies, cups, toy cars, pins, clothing, mascot dolls, wrist straps, and key chains were all made in China. In addition, China will provide 60% of all of the souvenirs. 
Source: China Review News, July 29, 2012
http://www.zhgpl.com/doc/1021/8/2/5/102182572.html?coluid=7&kindid=0&docid=102182572&mdate=0729163628

Xinhua: China Successfully Tested a New High-Power Rocket Engine

Xinhua reported that the China Aerospace Science and Technology Group successfully tested a 120-ton liquid oxygen kerosene rocket engine. The success of the test meant that China is the second country after Russia to have mastered this new high-power engine technology. The new engine will be key to the planned Long March 5 rocket launch in 2014, as well as to the future manned space projects to the moon. The new engine improves the push capability of the current level by 60% and it can carry a load that is three times that of today’s Long March rockets. The design and implementation of this new engine took one and one-half years. The process of developing this engine also helped push forward technology in other areas, such as new materials, paint, coatings, and new rubber.
Source: Xinhua, July 30, 2012
http://news.xinhuanet.com/tech/2012-07/30/c_112563525.htm

Xinhua: Vietnam Welcomes Russia Back to Cam Ranh Bay

Xinhua recently reported on Vietnamese President Zhang Jin Chong’s 5-day visit to Russia. In a press conference, Zhang told the Russian media that Vietnam welcomes Russia to set up a vessel repair center in Cam Ranh Bay. Russian President Putin agreed to provide Vietnam with a US$10 billion loan, of which US$8 billion will be for a nuclear power station construction project. The two presidents also agreed that the two countries should eventually establish a partnership in the area of defense. Zhang emphasized that the services provided to Russia at Cam Ranh Bay will not have a military orientation. The Russian Navy Commander in Chief confirmed that there were talks among Russia, Cuba, Seychelles, and Vietnam to build “technical support centers.” Vietnam recently also agreed on a joint-venture with Russia to develop oil fields in the South China Sea. In the 1980s, Cam Ranh Bay was the largest Russian military base outside of Russia. 
Source: Xinhua, July 30, 2012
http://news.xinhuanet.com/world/2012-07/30/c_112563638.htm

Xinhua: Only One China-Concept IPO in U.S. Stock Market

Xinhua recently reported that, in the first half of this year, only one Chinese company had its IPO in the U.S. stock market. That one stock dropped below its issuing price on the first day it was offered. It seems the “IPO window” for Chinese stocks will not be open this year. Given this circumstance, 14 Chinese companies went through the privatization process in order to withdraw from the U.S. stock market. There are two primary reasons for this situation: 1) The poor performance of the global economy has resulted in U.S investors having a conservative attitude; 2) The China-Concept stocks are still suffering from their poor credit background.
Source: Xinhua, July 21, 2012
http://news.xinhuanet.com/finance/2012-07/21/c_123450036.htm

National Bureau of Statistics: Housing Market Still at Key Crossroads

China Review News (CRN) recently reported that the National Bureau of Statistics released its June report on the housing market. The report showed that 25 out of 70 major and mid-sized Chinese cities reported housing price increases. That number is 19 more than the number from May. However, most of the cities have lower prices than last year. For example, for new real estate, Beijing, Shanghai, Guangzhou, and Shenzhen fell 1.3 percent, 1.9 percent, 1.6 percent, and 2.5 percent, respectively. Experts suggested that there are 3 reasons of the recent June price rebound: 1) Lower interest rates (the central bank lowered the interest rate twice in one month); 2) Worries in the market of the possibility of a big price rebound; 3) Some sellers obtained good sales results after lowering prices earlier and are now marking the prices up. It is widely believed that the government imposed market adjustments are still at a critical stage before housing prices return to a reasonable level. 
Source: China Review News, July 18, 2012
http://www.zhgpl.com/doc/1021/7/1/3/102171322.html?coluid=45&kindid=0&docid=102171322&mdate=0718160342

CRN: China still has Three Policy Tools to Stabilize the Economy

China Review News (CRN) recently published an article that discussed the strategy for dealing with the current decline of the Chinese economy. The author suggested that the Chinese government still has three policy tools that it can use: (1) With the decline of the CPI (Consumer Price Index), China has more room to reduce the interest rate; (2) The government can still increase direct investments into the economy, although this may have a negative effect; (3) The central government can temporarily relax the restrictions on local governments’ borrowing power. The article expressed the belief that the government should determine a minimum risk control line which would serve as an indicator of whether or not to use some of these policy tools.
Source: China Review News, July 14, 2012
http://www.zhgpl.com/doc/1021/6/7/2/102167204.html?coluid=53&kindid=0&docid=102167204&mdate=0714062027

The U.S. Controls the Energy Card

The International Herald Leader recently published an article that suggested that the United States holds an “energy card” in its hands that it can play against China. Not long ago, the U.S. offered China relief from a sanction applying to any country that buys oil from Iran. However the relief is only effective for 6 months. The article expressed the belief that it is unfair for the U.S. to tell China which country China can buy oil from. However, the author admitted that the U.S. has 3 “energy advantages”: (1) China relies significantly more on Middle East oil than the United States does; (2) The U.S. has many more ways to influence the international oil price than China has; (3) The U.S. has a large degree of energy independence, while China is now the world’s biggest importer of energy. The article concluded by calling for serious consideration of the “worst case scenario,” which is that the U.S. can play the energy card to strategically suppress China.
Source: International Herald Leader, July 10, 2012
http://ihl.cankaoxiaoxi.com/2012/0710/59111.shtml