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Study Times: A National Internet Forces Development Strategy is Needed

The Chinese Communist Party’s Central Party School’s magazine, Study Times, published an article on the importance of establishing China’s National Internet Forces. The article called for a strategic level focus on national information security. The author expressed the belief that it is critically important to enhance the research on “information warfare” methodologies as well to maximize the effectiveness of existing “information weaponry.” The article laid out four points to initiate the program: (1) enhancing and empowering the national information security organizations; (2) establishing a national information security monitoring and alerting system; (3) perfecting the information security management and administrative system; (4) strengthening international exchanges and cooperation. The article suggested that in the field of modern information security, the lines between allies and enemies are blurred and dynamic. Therefore, working with countries that use the leading information technology is a must.

Source: Study Times, February 23, 2012
http://www.studytimes.com.cn:9999/epaper/xxsb/html/2012/02/13/07/07_32.htm

CRN: Challenges the RMB Faces in Dominating the Market

China Review News (CRN) recently republished an article by Professor Zhao Xiao from the Beijing University of Science and Technology. The article stated that the total amount of international settlements done with the Chinese currency in 2011 was RMB 2.08 trillion (around US$306 billion). At the same time, the U.S. unemployment rate was above 8.5% and 15% of the U.S. population received government help. Professor Zhao believes that China’s currency is preparing to challenge the dominance of the U.S. dollar and the United States is playing defense. Zhao pointed out three major challenges China has to overcome: (1) maintaining the stable growth of both the domestic economy and China’s exports; (2) gaining enough national acceptance by promoting fairness, justice, and democracy; (3) establishing an international alliance against the current currency leader – the United States – by enhancing China’s soft power, or even its “hard” power.

Source: China Review News, February 13, 2012
http://gb.chinareviewnews.com/doc/1020/0/8/3/102008309.html?coluid=53&kindid=0&docid=102008309&mdate=0213081204

U.S. Intelligence Sees China as One of the Top Threats

Global Times, which is under the Chinese state’s daily news, People’s Daily, recently reported on the U.S. Senate’s “Global Threat Hearing.” The report was based mainly on an NBC report published on February 1. Multiple high ranking U.S. intelligence officials called China, Russia, and Iran “the top threats.” In the report, the belief was expressed that both China and Russia are countries “fond of” mounting Internet attacks against important U.S. industrial and government targets. The head of the FBI, Robert S. Mueller, III, suggested that Internet spying, computer based crimes, and network attacks against major infrastructures are replacing terrorism to become the top threats that the U.S. faces. According to the Washington Post, Iran was added to the “top threats” list this year, in addition to China and Russia.

Source: Global Times, February 2, 2012
http://world.huanqiu.com/roll/2012-02/2398918.html

CRN: China Does Not Need to Take Obama’s Comments Too Seriously

China Review News (CRN) published a commentary after U.S. President Obama delivered his third State of the Union Address. The commentary briefly described the general content of Obama’s speech as well as Republican presidential hopeful Mitt Romny’s reaction. The author then focused on the fact that Obama mentioned China five times in his speech. The commentary summarized that Obama repeatedly blamed China for “breaking the rules” and “acting unfairly in trade.” Obama also planned to establish a new federal agency to investigate “such trade behavior.” However, the author believed Obama’s accusations largely served his reelection campaign purposes and his attitude actually reflected his frustrations during this election year. The commentary therefore concluded that China should pay attention to President Obama’s comments but not take them too seriously.

Source: China Review News, January 29, 2012
http://gb.chinareviewnews.com/doc/1019/9/2/3/101992389.html?coluid=1&kindid=0&docid=101992389&mdate=0129001107

New Confucius Institute Started Operations in Ottawa

People’s Daily recently reported that the 138th Confucius Institute started classes on January 24 in Ottawa, Canada. The report indicated that the purpose of opening this new Confucius Institute was decided on as a reaction to filling students’ needs to face the challenges of globalization and to be more prepared for the future job market. In the opening ceremony, the mayor of Ottawa suggested that the number of Chinese tourists already surpassed those from Japan, Australia, and New Zealand. China is now Canada’s second largest trading partner after the United States. The trade volume is expected to double within the next four years. In addition to teaching the Chinese language, this new Confucius Institute also offers business consulting and training services to government agencies, private enterprises, and chambers of commerce.

Source: People’s Daily, January 30, 2012
http://world.people.com.cn/BIG5/16949815.html

New Year’s Wishes for Many Chinese People

China News Net published its first commentary after Chinese New Year’s Day, summarizing the three new year’s resolutions that are on many people’s minds. Number one on the wish list is a further drop in the price of housing. The year 2011 was the year we saw the strongest decline in housing prices. However, for most people, the price level is still far from affordable. The second wish on the list is an increase in income. Although statistically there was an increase in income last year, the high pressure of inflation made the increase seem inconsequential. The third biggest item most people wish for is a large improvement in food safety. In the past year, a wide range of food safety incidents occurred in the consumer market, having to do with pork, cooking oil, frozen dumplings, infant formula, beverages, and more.

Source: China News Net, January 29, 2012
http://www.chinanews.com/cj/2012/01-29/3624990.shtml

China’s Path to Becoming a Financial Superpower

China Review News (CRN) recently published an article commenting on China’s current financial position in the world, its weaknesses, and suggestions for future growth. The commentary pointed out that, by the end of October of last year, the assets of China’s central bank were the highest in the world, having reached US$4.73 trillion. At the same time, assets of the U.S. Federal Reserve, the EU Central Bank, and the Japanese central bank reached US$2.85 trillion, US$2.73 trillion and US$1.8 trillion, respectively. China also has the highest savings rate as well as the highest foreign exchange reserves. However, China’s financial system is leaning too heavily towards manufacturing and infrastructure investments. Investment in medium and small enterprises is still lacking. Another problem lies in the area of China’s overseas investments, which have a very low yield of 3%-5%. The commentary made two suggestions: that China should establish financial institutes designed to serve medium and small businesses, and that the practice of the large scale purchase of foreign bonds should be completely changed. Investments should switch to stock shares and other types of ownership of overseas economic entities, including U.S. assets.

Source: China Review News, January 20, 2012
http://gb.chinareviewnews.com/doc/1019/7/1/6/101971606.html?coluid=136&kindid=4710&docid=101971606&mdate=0120000611

Twelve Challenges China Faces in 2012

Qiushi Journal, a bi-weekly magazine published of the Central Committee of the Chinese Communist Party, recently republished an article from the Tokyo-based magazine The Diplomat on the twelve key challenges China will face in the year 2012: (1) A once-in-a-decade political transition in October; (2) A slowing of China’s economic growth; (3) High local government debt; (4) Falling real estate prices; (5) China’s debt problems may have major repercussions for countries benefitting from China’s commodity demand boom; (6) Tighter domestic media reporting guidelines; (7) Intensified policies to drive growth in Central and Western China; (8) A heightened risk of inflation; (9) The increased outbound investment of money seeking safe havens; (10) Continued friction and possible skirmishes in the South China Sea; (11) Drilling China’s first ultra-deepwater oil/gas well; (12) The ongoing Gulf of Aden/Indian Ocean anti-piracy mission.

Source: Qiushi Journal, January 16, 2012
http://www.qstheory.cn/jj/jjyj/201201/t20120116_135021.htm

Original: The Diplomat, January 8, 2012
http://the-diplomat.com/china-power/2012/01/08/chinas-2012-challenges/