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Scholar: International Financial Reform Does Not Give China More Voice

In an interview with the official Outlook Weekly magazine, Jiang Yong, a scholar with the China Institute of Contemporary International Relations, said that the international financial reform has not given China more of a real voice. Since April 2010, China’s voting right in the World Bank has risen from 2.77% to 4.42%, second only to the U.S. and Japan. Its voting power in the IMF jumped to 3rd place, after the U.S. and Japan. However, “After the reforms, the U.S. still sits in the top position at the World Bank and it retains a one-vote veto with its shares at the IMF. Although the EU countries ‘gave up’ some shares, they still retain a veto power. The fact that the top decisions on the world economy and financial system fall into the hands of Western developed countries hasn’t change,” said Jiang. He believes that if others control a country financially, the impact will be felt not only in financial security, but also in economic and national safety.

Source: Outlook Weekly, May 23, 2011
http://www.lwgcw.com/NewsShow.aspx?newsId=20819

Briefings | | |   Geo-Strategic Trend

Party Members Warned Not to Spread Political Rumors

In an unusual, harsh tone, People’s Daily published an editorial warning that “The Party’s discipline does not allow Party members to spread political rumors.” The editorial states that safeguarding the Party’s political discipline is a serious political struggle. It further alleges that a very small group of Party members and officials make irresponsible remarks on major political issues and act on their own, that some overtly agree but covertly oppose the Party’s decisions, and that others make up stories and tarnish the image of the Party leadership. The editorial said that the Party’s disciplinary authorities have “seriously punished a number of CCP members and cadres who disobeyed the political discipline.”

Source: People’s Daily, May 25, 2011
http://paper.people.com.cn/rmrb/html/2011-05/25/nw.D110000renmrb_20110525_2-04.htm

Briefings | | |   Government/Politics

Wen Affirms China’s Support for Pakistan

On May 18, 2011, Xinhua reported that Chinese Premier Wen Jiabao assured Yousuf Raza Gilani, the visiting Prime Minister of Pakistan, of China’s support. Wen affirmed that “Pakistan has made huge sacrifices and an important contribution to the international fight against terrorism; that its independence, sovereignty, and territorial integrity must be respected; and that the international community should understand and support Pakistan’s efforts to maintain domestic stability and to realize economic and social development.” Wen stated that China would like to be an “all-weather strategic partner” and will do its best to help the Pakistani government and people get through their difficulties. 

The English China Daily stated that Pakistan has “faced international pressure in the aftermath of the U.S. killing of Osama bin Laden.” “Following the raid, Islamabad was the focus of criticism in the U.S. for its alleged failure to fight terrorism, prompting some U.S. legislators to call for a reduction in financial assistance.”

Sources:
Xinhua, May 18, 2011
http://news.xinhuanet.com/politics/2011-05/18/c_121432227.htm
China Daily, May 19, 2011
http://www.chinadaily.com.cn/cndy/2011-05/19/content_12536794.htm

Briefings | | |   Geo-Strategic Trend

Public Security Minister Urges China’s Riot Police to Increase Their Ability to Protect Beijing

On May 13, 2011, Meng Jianzhu, the Public Security Minister and Chief Political Commissar of China’s People’s Armed Police, addressed China’s riot police in Beijing when they conducted a demonstration exercise. Meng urged the riot police to be mindful of potential dangers and increase their ability to safeguard Beijing’s security. “[The People’s Armed Police] must further strengthen their ideological and political development and lay a solid ideological foundation by holding high the [ideological] banners, following the Party’s commands, and fulfilling their mission, and must resolutely follow the directions of the Party’s Central Committee, the State Council, the Party’s Central Military Commission, and President Hu Jintao.” Over 5,000 riot police participated in the exercise.

Source: Xinhua, May 13, 2011
http://news.xinhuanet.com/2011-05/13/c_13873741.htm

Briefings | | |   Government/Politics

China Faces a Severe Power Shortage

Central China Grid Company Limited, one of the five regional power plants of the State Grid Corporation of China, released an analysis stating that power shortages, which used to be seasonal, are becoming a year round problem. "[The Central China Grid] is at a critical turning point – seasonal and local power shortages now occur throughout the year and cover the entire region.” Rapid increases in consumption and an insufficient supply of coal are believed to be the root causes of the shortage. The Central China Grid covers the five provinces of Hubei, Hunan, Henan, Jianxi, and Sichuan and the city of Chongqing. In the past, the Central China region did not experience any problems with the supply of power during April and May. In 2010, restrictions on consumption [that were imposed during the winter] were lifted in February. In contrast, in 2011, the restrictions have remained in place through April. The analysis predicts a shortage of 8.22 million kilowatts for the summer of 2011.

Source: Xinhua, May 6, 2011
http://news.xinhuanet.com/2011-05/06/c_121387402.htm

Briefings | | |   Economy/Resources

China’s Diplomatic Predicament in Middle East

Xinhua’s International Herald Leader published an article titled “How Can China Get Out of Its Diplomatic Predicament in the Middle East?” The article quotes from an Arab source that China’s Middle East policy is widely viewed by many Arab countries as “sitting on the fence.” It wants to have access to the oil but does not want to give up cooperating on technology with Israel, let alone offending the United States. The article predicts that, as China expands in the Middle East, sending Chinese troops to the Middle East to protect its workers may become inevitable, given times of chaos and the economic loss in the Libya crisis. 

“This is exactly what makes it difficult for China to play an independent role in the Middle East. The West calls China’s economic expansion without security protection ‘putting all of its eggs in the basket of the United States,’ meaning China has put its interest in the Middle East in the hands of the United States.” The article noted that China presently has warships in the Gulf of Aden all year round to ensure its oil supplies. The "Xuzhou" Destroyer entered the Mediterranean during the chaos in Libya, and its air force cargo planes fly over the Middle East. The article concluded that China should establish a long-term strategic vision for the Middle East.

Source: International Herald Leader, April 26, 2011
http://news.xinhuanet.com/herald/2011-04/26/c_13846289.htm

Briefings | | |   Geo-Strategic Trend

Why Wealthy Chinese Citizens Emigrate

According to an Economic Observer article, there are two reasons why wealthy Chinese people choose to move to countries such as the United States and Canada: One, living standards, including education, welfare benefits, lower taxes, clean air, a stable investment environment, and healthy food. Two, a knot in their hearts related to concerns for personal safety, wealth security, and a lack of confidence in the future. “Many rich people are in a vile environment, where if they do not do evil, they cannot survive, so they have to do evil. As they continue to do evil, they fear that one day they will be caught and lose everything. Hence they choose to leave home and start over again in a different country. However, their departure has left the society with an empty hole: they left because of dissatisfaction with society and yet their departure has generated a lot of resentment toward them.”

Source: Economic Observer, April 22, 2011
http://www.eeo.com.cn/observer/shelun/2011/04/22/199565.shtml

Briefings | | |   Social Stability

Media Campaign Initiated to Glorify Chinese Communist Party on Its 90th Anniversary

Liu Yunshan, a Politburo member and head of the Party’s Propaganda Department, spoke at a working conference in connection with the 90th anniversary of the Communist Party, “[We] should vigorously sing the  praises of the Communist Party, socialism, open reform, the great motherland, and all nationalities. … [We] should interface with international communities and widely introduce them to the extraordinary history of how our Party has led the people through the revolution, development, and reform, and explain to them the core values of our Party as the ruling party to serve the public and the people so that the world better understands China and the Chinese Communist Party.” 

At the conference, Liu also gave instructions on the roles and tasks of the central and local Party newspapers, radio, TV stations, metropolitan newspapers, and online media.

Source: People’s Daily, April 23, 2011
http://cpc.people.com.cn/GB/64093/64094/14463702.html

Briefings | | |   Government/Politics