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Xi Jinping’s Central Leading Group for Comprehensively Deepens Reforms

On December 9, 2015, the Communist Party’s Central Leading Group for Comprehensively Deepening Reforms held its 19th monthly meeting. The Central Leading Group was established in November 2013, during the Third Plenary Session of the 18th Central Committee of the Communist Party of China, as a policy formulation and implementation body in charge of "Comprehensively Deepening Reforms."  

As the group leader, Xi Jinping presides over all monthly meetings. The deputy group leaders, Li Keqiang, Liu Yunshan, Zhang Gaoli, and all members of the Standing Committee of the Politburo are in attendance. Sometimes those heading relevant government ministries or Party departments may be invited to sit in.  Local representatives are rarely invited. 
Since its establishment, the Central Leading Group has reviewed 102 documents. They average five per meeting (ranging from three to 10). During 2015, the Central Leading Group reviewed a total of 65 documents, doubling the number of documents reviewed in 2014. 
A quarter of the 102 documents reviewed related to democracy and law reform. This topic was discussed at 13 of the 19 meetings. Other hot topics discussed included economic reform, ecological civilization reform, as well as discipline and inspection reform.
Source: Beijing Youth Daily reprinted by Xinhua, December 14, 2015 
http://news.xinhuanet.com/fortune/2015-12/14/c_128526958.htm
Briefings | | |   Government/Politics

Anti-corruption in Central State Organs

December 9, 2015 marks the one-year anniversary of the website hotline of the Communist Party Discipline Inspection Committee for Central State Organs (http://zygjjg.12388.gov.cn/).  

The hotline is for the public to report acts of corruption that the Party members that serve in the central state organs have committed. During its first year, it received 4,924 complaints, averaging 400 a month. The complaints implicated 54 state organs, six senior leaders of the minister rank or above, 48 department heads, 17 division chiefs, and 13 lower level officials. 
The Communist Party Central State Discipline Inspection Committee has jurisdiction over close to 100 central state organs under the National People’s Congress (NPC), and five organs that the NPC created: the Presidency of China, the State Council, the Central Military Commission, the Supreme People’s Court, and the Supreme People’s Procuratorate. 
Source: People’s Daily, December 10, 2015 
http://politics.people.com.cn/n/2015/1210/c1001-27909288.html
Briefings | | |   Government/Politics

PLA Daily Calls for Unity on the Reduction in Military Force

During a military parade in early October, Xi Jinping announced a reduction in military force of 300,000 military personnel. People’s Liberation Army Daily recently published a commentary on that reduction. 

According to the commentary, “Whether one’s unit is merged with another or one is demoted, whether one gets to stay or is retired, officers and soldiers will inevitably have their own thoughts and may become unstable.” The commentary called for those who will lose their positions to “jump out of the box of self-interest.”  
The commentary also stated that, in response to the “noises” made during the reduction in force, particularly the responses from those with ulterior motives, officers and soldiers must maintain their "ideological and political convictions." This requires that the high-level authorities and senior cadres lead by example. 
A posting on the People’s Daily blog said that Xi Jinping made a comment in an internal document about the status of the reduction in military force. “Those who express different opinions about the reduction prior to November 24 will be deemed to be making suggestions, while those who do so after that date will be considered obstacles and “must be firmly eradicated.” 
Sources: 
People’s Liberation Army Daily reprinted by People’s Daily, December 8, 2015 http://politics.people.com.cn/GB/8198/395517/ 
People’s Daily Blog, December 8, 2015 
http://t.people.com.cn/9430141/137179244 
http://military.people.com.cn/n/2015/1208/c1011-27898687.html
Briefings | | |   Defense/Military

U.S. Assisted in the Return of Former Government Official to China

On December 5, the Chinese Communist Party’s Central Commission for Discipline Inspection (CCDI) announced that Huang Yurong, the former Party Chief of the Henan Provincial Highway Administration, turned herself in at the Beijing Airport after 13 years of living as a fugitive in the United States. 

CCDI said Huang chose to return to China to face corruption charges because an anti-corruption special task force under the Central Commission, which the China Ministry of Justice and the Ministry of Foreign Affairs supported, had been instrumental in persuading her. 
The announcement cited U.S. assistance that had been given during the process. “In December 2014, the Anti-Corruption Working Group of the Sino-U.S. Law Enforcement Cooperation Liaison Group identified Huang Yurong as a priority for Sino-U.S. cooperation. The two sides joined forces and carried out joint investigations to obtain evidence and other related work.” 
Huang is accused of having abused her position to embezzle funds and take bribes. She fled to the U.S. in August 2002. 
Source: Central Commission for Discipline Inspection of the Communist Party, December 5, 2015 http://www.ccdi.gov.cn/xwtt/201512/t20151204_69611.html
Briefings | | |   Government/Politics

Xinhua: Carry Anti-Corruption Campaign All the Way to the End

Xinhua published an editorial commemorating the third anniversary of Xi Jinping’s Eight Rules established at a Communist Party Politburo meeting on December 4, 2012. The rules were established to curtail corruption among Communist Party members and government officials. 

The Eight Rules include travelling with a smaller entourage, having no welcome banner, no red carpet, no ribbon cutting ceremony, and no grand reception. Also Politburo members must comply with the rules themselves before requiring others to do so. The latest statistics show that, from December 2012 until the end of October 2015, the Party handled 104,934 cases of violations which involved 138,867 individuals. 55,289 of them were subjected to the Party’s disciplinary rules. Xinhua stated, “Such efforts and achievements have far exceeded many people’s expectations.” 
According to Xinhua, it was because of the worries that corruption would destroy the Party that the Party’s leadership started from themselves and persevered in the anti-corruption campaign. 
Source: Xinhua, December 3, 2015 
http://news.xinhuanet.com/politics/2015-12/03/c_128496721.htm
Briefings | | |   Government/Politics

Xi Jinping: China-Africa Comprehensive Strategic and Cooperative Partnership

On December 4, 2015, at the opening of the sixth Forum on China-Africa Cooperation (FOCAC) held in Johannesburg, Chinese President Xi Jinping proposed to elevate “the new type of the China-Africa strategic partnership” to a “comprehensive strategic and cooperative partnership.”  The comprehensive strategic and cooperative partnership will be based on five principles: political equality and mutual trust, win-win economic cooperation, culture exchanges and mutual learning, mutual assistance on security, and cooperation and solidarity in international affairs. 


Xi indicated that in the next three years, China will implement cooperation programs with Africa in the following ten areas: industrialization, agricultural modernization, infrastructure, finance, green development, trade and investment, poverty reduction, public health, culture, and peace and security. 

Source: Xinhua, December 4, 2015 
http://news.xinhuanet.com/world/2015-12/04/c_1117362945.htm
Briefings | | |   Geo-Strategic Trend

21 Percent of Listed State-Owned Enterprises Are in the Red

This year’s statistics show that, for the first three quarters of this year, 67 out of the 306 or just over 21 percent of listed state-owned enterprises (SOEs) were in the red. The top 10 of these SOEs showed losses totaling 13.524 billion yuan ($US2.11 billion). Some expect that, in order to reduce their losses in the fourth quarter, these SOEs may sell their assets or obtain government subsidies. 

The top loser for the first three quarters was Sinopec Oilfield Service Corporation, with a loss of 2 billion yuan (US$.31 billion), followed by SGIS Songshan Co. Ltd. which was 1.783 billion yuan (US$.28 billion) in the red. 
As for the sectors of industry affected, nonferrous metal companies constituted one-third of the losers while coal mining companies accounted for about 20 percent of those in the red. 
Most listed SOEs receive government subsidies. If such subsidies were excluded from the net profit, 74 SOEs (or about 24 percent) would be in the red for the first three quarters this year instead of 67. 

Source: Beijing Youth Daily reprinted by People’s Daily, December 2, 2015 http://finance.people.com.cn/n/2015/1202/c1004-27879158.html

Briefings | | |   Economy/Resources

China’s GDP Growth for 2015 May Be 4.5 Percent

In a recent interview with China Times, Liu Wei, a member of Xi Jinping’s advisory group, President of the People’s University, and prominent economist, stated that the growth of China’s GDP may be 4.5 percent. 

China Times asked for Liu’s thoughts on the doubts that analysts expressed about the accuracy of the 6.9 percent rate of GDP growth allegedly achieved in the third quarter as China had officially announced. Analysts believed the aggregated 6.9 percent growth rate was not consistent with the statistics regarding repots on individual items and that China faces more problems in achieving a seven percent GDP growth rate for the year. 
Liu responded that there may be some inconsistencies. With a six percent growth in manufacturing, eight for the service industry, and three for agriculture, it seems to be hard to explain or substantiate the 6.9 percent GDP growth rate. “I understand the questioning. It may require us to scrutinize more carefully and to explore further the changes in the statistical methodologies and transparency."  
In response to the comments made by China Times in the interview that some analysts believe that the actual growth rate of China’s economy is only about 4.5 percent, Liu said, “That may be the real number. To be honest, even if it is 4.5 percent or 5 percent, do not be afraid. The key is whether the economy can actually endure it.” 
Source: China Times, November 25, 2015 
http://www.chinatimes.cc/article/51936.html

Briefings | | |   Economy/Resources