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All posts by RWZ - 279. page

Xinhua: The U.S. is a Master at Exchange Rate Manipulation

Xinhua recently published an article suggesting that the U.S. is the country unloading the financial crisis burden onto other countries by manipulating the dollar exchange rate. During 2005 and 2008, the Chinese currency, the RMB, had an appreciation of 20% against the U.S. dollar, while the trade surplus increased. Then last year, the RMB exchange rate remained stable, while the trade surplus decreased. This was considered proof that a higher RMB exchange rate does not help U.S. exports. The author believes that the U.S. is taking advantage of the dominant position of the U.S. dollar to increase the cost of Chinese exports, thus increasing the competitiveness of U.S. products in the domestic market.

Source: Xinhua, March 26, 2010
http://news.xinhuanet.com/fortune/2010-03/26/content_13249503.htm

Briefings | | |   US-China Relations

Post Crisis Period: Focus on External Political Risks

Xinhua recently published an official report by China Renmin University that talked about risks after the rebalancing of the world economy. The report discussed three changes after the crisis: (1) The U.S. will hold onto the services market while Europe will be marginalized; (2) High end manufacturing, represented by Japan and Germany, will decrease while the low end will increase; (3) U.S. dominance of the global financial system will weaken while East Asia has an opportunity. The report also listed four Chinese risks: (1) Wrong international positioning; (2) The fight for profit; (3) Tightened liquidity; (4) Political risks – non-economic means of re-balancing. The report concluded with three recommendations: (1) Improve the Chinese financial market’s maturity; (2) Promote regional financial cooperation; (3) Improve Chinese export products structure towards the higher end.

Source: Xinhua, March 26, 2010
http://news.xinhuanet.com/fortune/2010-03/26/content_13249430.htm

Briefings | | |   Economy/Resources

Chinese Publishers Rush to Grab the World Market

In the recent Chinese Publications Export Promotion Planning Conference, the General Administration of Press and Publications was pushing for more copyrighted publications to be exported not only to the major markets of Britain, the U.S., Germany, France and Russia, but also to countries surrounding China as well as Arabic, African, and Latin American countries. The “Go Out” strategy promotes these models: direct publishing overseas; using foreign planning skills for out-going projects; key products bringing along weaker ones; and publishing/printing bundling. In the recent couple of years, the China Publishing Group has already established a network of publishing companies around the globe.

Source: Xinhua, March 26, 2010
http://news.xinhuanet.com/newmedia/2010-03/26/content_13249632.htm

Briefings | | |   Economy/Resources

Xinhua: Research Foresight Needed for Military Strategic Delivery

Xinhua recently published an article suggesting that the military’s strategic delivery capability is an important measure for national military capacity. The current Chinese strategic delivery is lacking theoretical studies, capacity building, reserve forces and a traffic mobilization mechanism. Chinese command methods are far behind the US Global Transportation Network. Strategic delivery requires integration among land, air and sea, as well as integration between national military and civilian systems. The article suggested that China should (1) establish an overall command system, (2) take full advantage of China’s railway system, and (3) enhance the “Military Representative System” along transportation lines.

Source: Xinhua, March 11, 2010
http://news.xinhuanet.com/mil/2010-03/11/content_13145879.htm

Briefings | | |   Defense/Military

National Development Bank Loans 6 Billion to Da Ming Gong Project

People Net, the online presence of Chinese state daily news Renmin, recently reported that the Da Ming Gong Project received a loan of RMB 6 billion from the National Development Bank. This is the National Development Bank’s largest culture investment. Da Ming Gong is the name of the emperor’s palace of the Tang Dynasty. The project is to build a culture park at the location of the palace. The Park, in the City of Xi An, will be open to public on October 1, 2010.

Source: Renmin, March 19, 2010
http://culture.people.com.cn/GB/87423/11176285.html

Briefings | | |   Economy/Resources

Internet Plays Important Role in Lives of Middle School Students

Juveniles Internet Usage Research recently released its 2009 report. The report shows that the Internet is now an important channel for Chinese middle school students for knowledge, social issues and entertainment. The research found 64.9% of the students typically spend one hour each time they log onto the Internet. The most frequent uses of the Internet are “information research” (32.3%), “chatting” (31%), “downloading music and pictures” (29.4%) and “internet gaming” (19.8%). Among the “most liked” websites are those for entertainment (54.5%), games (37.1%), and literature (30.1%). The research was based on 9,000 questionnaires in 9 provinces.

Source: Xinhua, March 18, 2010
http://news.xinhuanet.com/edu/2010-03/18/content_13194400.htm

Briefings | | |   Information/Technology

Use Buying U.S. Bonds as a Political Chip

The Chinese state owned newspaper People’s Daily recently published an article discussing the way China purchases U.S. bonds. The article suggested that although Yi Gang, Deputy Managing Director of People’s Bank of China and Chairman of State Administration of Foreign Exchange, claimed the bond purchase was purely a market investment behavior, yet it is impossible to completely de-link economic and political considerations. That President Obama’s recent protectionism is serving some political interest is proof. Some U.S. bankers now see China’s holding a large amount of U.S. bonds as a threat to the United States. It’s time for China to use it as a political chip. This is an “international common practice.”

Source: People’s Daily, March 11, 2010
http://opinion.people.com.cn/GB/182743/182750/11117686.html

Briefings | | |   US-China Relations

More and More Chinese Military Officers Talk Straight with the Media

Xinhua recently republished an article by Hong Kong based Asia Times suggesting the more and more high-ranking Chinese military officers are standing up and “talking straight.” Examples are comments made by Major General Zhu Chenghu, Major General Luo Yuan, and Senior Colonel Ke Chunqiao, after the U.S. arms sales to Taiwan. They all suggested that China should sell U.S. bonds, increase military spending and expand military deployment. Retired Rear Admiral Yin Zhuo also suggested expanding the reach of the Chinese Navy by doing things like establishing a Navy base in the Middle East. All these military comments covered by the media started 15 years ago with General Xiong Guangkai, who told U.S. Ambassador Charles Freeman regarding nuclear wars, “You’d better worry more about Los Angeles than Taipei.”

Source: Xinhua, March 10, 2010
http://news.xinhuanet.com/mil/2010-03/10/content_13137034.htm

Briefings | | |   Defense/Military