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All posts by RWZ - 295. page

VOA: Hidden Danger Revealed in Carrying Out the RMB 4000 Billion Stimulus Package

Voice of America published an article about the Chinese Stimulus Package based on reports by the Chinese State Auditing Administration. The auditing publication revealed issues on the how the spending effort was completed. Some investments were used for monetary speculation. Some funds were not actually delivered to the intended projects. Small and medium sized businesses were left behind. By the end of March, based on audit results covering 335 new projects in 18 provinces, the Central Government delivered 94% of the promised funds while only 48% of corresponding local investments were actually completed. The US agency Stratfor Global Intelligence suggested that, the Chinese Stimulus Package can help the economy in the short term at the cost of a long term solution.

Source: VOA, May 20, 2009.
http://www.voanews.com/chinese/n2009-05-20-voa2.cfm

Briefings | | |   Economy/Resources

International Herald Leader: An Abnormal Phenomenon – China’s Luxury Goods Consumption

On May 20, the International Herald Leader, under Xinhua News, reported on the foundation laying ceremony for China’s biggest luxury shopping center in Shanghai. Among the ceremony attendees was French LVMH group President Beorne Arnold who expressed confidence in the Chinese market.

Beorne Arnold’s confidence is not unfounded. According to a research, in 2008, for the first time, China replaced the U.S. and became the second largest consumer of luxury goods in the world. However, China’s luxury goods consumption is a dysfunctional social phenomenon. The majority of luxury goods consumers are young people with less earning power who buy things in order to show off. Additionally, non-Chinese brands dominate the luxury goods market, which negatively impacts the expansion of China’s domestic brands. The consumption also does not help the tens of millions of Chinese who are living below the poverty line. Per China’s present poverty relief standard, over 40 million people live below poverty line. Using the UN’s poverty standard, the number is over 150 million.

Source: International Herald Leader, May 25, 2009.
http://news.xinhuanet.com/herald/2009-05/25/content_11430893.htm

Briefings | | |   Economy/Resources

Xinhua: Fair Education – Government Responsibility

On May 25, Xinhua Net republished an article on fair education by Outlook Weekly. Many education specialists suggested in a review of the education reform that the reform (since the 90s) focused more on “development” than “reform,” and more on the “financial angle” than on fairness. The schools came up with a large number of ways to make a profit, and the government’s investment in education itself was at a very low level. The currently proposed new education reform plan does not demonstrate the courage to face the long standing issues. In a survey conducted in 2007 (sample size 5000), “education fairness” scored the lowest among all categories.

Source: Xinhua Net, May 25, 2009.
http://news.xinhuanet.com/politics/2009-05/25/content_11430971.htm

Briefings | | |   Government/Politics

Study Times: Attach Great Importance to National Strategic Research

Study Times, a magazine by CCP Central Party School, recently published an article on the importance and urgency of enhancing research efforts of national strategic issues. The article indicated that wide, systematic and deep researches on economics development strategies, political development strategies, culture development strategies and social development strategies are urgently needed today.

The article drilled down to sub-strategies and relationships between the above mentioned major strategic areas. It also suggested that the government should establish National Strategic Research Institute, which should: (1) Gather experienced scholars specialized in various areas to learn from advanced countries; (2) Hold high level training classes for high ranking government officials to enhance strategic thinking; (3) Establish post-doctoral stations to ensure continued supply of talents; (4) Construct National Strategic Information System; (5) Publish National Strategic Research and Consulting Magazine to facilitate communications.

Source: Study Times, May 18, 2009.
http://www.studytimes.com.cn/WebPage/ny1.aspx?act=0&id=2651&bid=6

Briefings | | |   Government/Politics

Xinhua: Tough Reform – The Grand Household Registration System

Xinhua News republished an article on Feb. 13, 2008, about the reform of the Household Registration System. During the past 50 years, the system restricted the farmers from freedom of residence and migration and thus established a big gap between cities and rural areas. The upcoming reform focuses on how to grant national treatment to China’s own farmers. This unfair system facilitated the rapid industrialization of the cities at the cost of a large amount of individuals living in rural areas. Due to the huge size of the population impacted, the grand reform is becoming one of the hardest tasks in front of the government.

Source: Xinhua Net, Feb. 13, 2008.
http://news.xinhuanet.com/politics/2008-02/13/content_7598072.htm

Briefings | | |   Social Stability

Chinese Academy of Social Sciences: Emergency News Control Mechanism

Chinese Academy of Social Sciences News published an article on May 14 regarding how to control news reports on emergency affairs. The article defined the scope of “emergency affairs” as natural disasters, accidents, public health incidents and public safety incidents.

The article suggested that the government should establish organizational units to “lead” the reporting effort. All media should establish dedicated channels to the government and the Party’s leading units to gauge the reporting effort in order to “correctly” guide the public opinion. The article’s suggested mechanism also requires recurring coordination meetings to ensure “correct” directions are followed and all resources can be managed centrally and effectively.

Source: Chinese Academy of Social Sciences News, May 14, 2009.
http://www.cass.net.cn/file/20090514233606.html

Briefings | | |   Social Stability

Hu Jintao: Build a Strong Chinese Air Force

Chinese President Hu Jintao talked about building a strong Air Force in a new historic period. On May 22, he delivered a speech at the 11th Air Force’s CCP Representatives Conference. Hu emphasized keeping “politically right thinking,” describing it as the top priority.

Hu also suggested in his speech that today’s Chinese military needs to stand firm on “core values” which he then referred to as strictly and willingly following the Communist Party’s orders. He also mentioned that the Air Force should be prepared to win local wars under information system oriented conditions.

Source: Boxun, May 22, 2009.
http://news.boxun.com/news/gb/china/2009/05/200905221858.shtml

Briefings | | |   Defense/Military

HK Wen Wei Po: The Direction of The Chinese Road

Hong Kong based newspaper, Wen Wei Po, strongly supportive of the Chinese Communist government, published an article on May 15 to discuss the future direction of the Chinese economy. The article suggested that although tertiary industries such as the techology and services industries are important; it is very hard for them to compete against the West. Agriculture and basic industries still provide the primary support to Chinese economy. A future strategy emphasized in the article was to keep developing the economy’s export orientation which is believed to have been a successful approach thus far. The article also stated that the Chinese financial industry needs significant improvement, yet it should not follow the example of the West, offering too many complicated “gambling” financial tools which form what the article called the “Casino Economy”.

Source: Wen Wei Po, May 15, 2009.
http://paper.wenweipo.com/2009/05/15/PL0905150001.htm 

Briefings | | |   Economy/Resources