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All posts by TGS - 27. page

China’s Fixed Asset Investment Experiences Its Weakest Growth

According to statistics released by the China National Bureau of Statistics, China’s fixed asset investment rose at the slowest pace since 2001. The slowdown was due to the weak growth in investment in real estate development and in manufacturing.

Fixed-asset investment (excluding rural households) rose 10.9 percent in the period from January through August compared to the same period last year. The increase was less than the 11.2 percent for the period of January through July. 
Wang Baobin, senior statistician at the China National Bureau of Statistics, stated that this growth was slow as a result of the low investment in real estate development and in manufacturing. Real estate developers lack a willingness to invest due to pressure from the destocking of the housing market and from sluggish land sales. There is not much interest in investment in manufacturing because of excess capacity and lower prices and profits. 
Source: Caixin, September 13, 2015 
http://pmi.caixin.com/2015-09-13/100849281.html
Briefings | | |   Economy/Resources

China’s Forex Reserves Posted Biggest Fall

On September 7, the Bank of China announced that, in August, its foreign-exchange (forex) reserve dropped by $93.9 billion to about $3.6 trillion. It is the fourth consecutive monthly drop and the biggest ever monthly decline. 

China’s forex reserves hit a record high of nearly $4 trillion in June 2014. It has since fallen from the peak by a total of $435.8 billion, indicating the trend of money leaving China has continued steadily. 
Guan Tao, former Director at the Balance of Payments Department in the State Administration of Foreign Exchange, expressed that it will be the new norm that the reserves’ fluctuation is more volatile in the short term than in the long term.  
Source: Beijing Youth Daily, September 8, 2015 
http://epaper.ynet.com/html/2015-09/08/content_152558.htm?div=0
Briefings | | |   Economy/Resources

China Trade Sinks as Economy Weakens

On September 8, China’s General Administration of Customs released trade data which showed that, in August, total import/export trade shrank by 9.7 percent in yuan with exports down 6.1 percent and imports down 14.3 percent. The trade surplus grew by 20 percent. 

The released statistics also showed that in terms of the yuan, the total trade for the first eight months so far sank by 7.7 percent compared to same period last year. Exports were down 1.6 percent and imports were down 14.6 percent. The trade surplus increased by 80.8 percent. Reports indicated that exports were more competitive thanks to the depreciation of the yuan. However, exports continued to slide for six consecutive months, indicating exports in the fourth quarter will be under significant pressure. 
Source: Xinhua, September 9, 2015 
http://news.xinhuanet.com/fortune/2015-09/09/c_128209990.htm
Briefings | | |   Economy/Resources

Xi Jinping: China to Cut Military by 300,000

On September 3, at the military parade to commemorate the 70th anniversary of the World War II victory, Xi Jinping announced that China will cut its military by 300,000.  At a press conference thereafter, Yang Yujun, spokesperson for the China Ministry of National Defense, provided additional information about the decision. Yang said that the Chinese military consists of about 2.3 million and will be reduced to 2 million. The move will mainly target troops equipped with outdated armaments, administrative staff, and non-combatant personnel. The purpose is to optimize the structure of the Chinese forces. The disarmament will be carries out step by step and will be completed by end of 2017. 

Source: Xinhua, September 3, 2015 
http://news.xinhuanet.com/mil/2015-09/03/c_1116458395.htm

Briefings | | |   Defense/Military

Li Keqiang: Global Volatility Puts Pressure on China’s Economy

On August 28, Chinese Premier Li Keqiang chaired a State Council special meeting on new developments in the global economic and financial field and their implications for China and China’s policy responses. It was the first time that he called for such a special meeting, indicating that China faces tough issues in the area of economic growth. 

Four vice premiers, three State Council members, the President of China’s central bank, the minister of finance, the head of the Development and Reform Commission, and the Chairman of the China Securities Regulatory Commission attended the meeting. 
Li said that recent world market volatility has created new uncertainties for the global economic recovery. The growing implications for China’s financial market as well as for imports and exports have placed new pressure on the Chinese economy. Financial stability affects the overall Chinese economy. Risk management needs to be improved and perfected to defend the bottom line of preventing regional or systemic risks. 
Source: The Central People’s Government of China, August 29, 2015 
http://www.gov.cn/guowuyuan/2015-08/29/content_2922012.htm
Briefings | | |   Economy/Resources

Senior Officials at the State’s Media, People’s Daily Online, Detained

Southern Weekend reported that the People’s Procuratorate detained Liao Hong, President and editor-in-chief of the state’s media, People’s Daily Online, for investigation.  An anonymous source indicated that the accusation against Liao was linked to the case of Xu Hui, a deputy editor at People.cn, who was placed under investigation last May for extortion and for accepting bribes from businesses. Xu allegedly took money from businesses so that no negative reports about their businesses would be published. Caijing.com reported separately that Chen Zhixia, Vice President of People’s Daily Online was also detained and placed under investigation. Webpages for both reports are no longer available. 

Source: Southern Weekend and Caijing reprinted by BBC Chinese, August 27, 2015 http://www.bbc.com/zhongwen/simp/china/2015/08/150827_china_media_arrest
Briefings | | |   Government/Politics

Internet Censorship Heightens as September 3 Draws Near

China Digital Times reported that the State Council Information Office ordered heightened Internet censorship for the period from August 23 through September 5, 2015, for online news and comments on China’s commemoration parade celebrating the 70th anniversary of the end of World War II. The parade will take place on September 3, when Chinese leaders will review the troops. 

Specifically, all online postings of news and comments regarding the commemoration parade must be reviewed by the Internet content inspection staff before being released to the public. Only positive comments may be released. No negative comments on the military and on the parade can be released.  Comments “attacking” the Party, Communist China, the political system or Chinese leaders cannot be released. Further, there should be no comments posted that distort the history of the Party or of Communist China. Also prohibited are “comments that misguide” and “harmful information.”  Comments that praise the Party and military are required to be displayed in a prominent position. Point of contact information for the content inspection staff on duty at Internet companies must be reported and placed on file with the authorities. Internet companies are asked to “attach great importance” to this matter and to cooperate actively with the authorities. Those who do not fully implement the censorship “will be dealt with severely.” 
Source: China Digital Times, August 24, 2015
http://tinyurl.com/o2wymze

Briefings | | |   Government/Politics

Heightened Security for September 3

According to Beijing Public Security, in preparation for China’s commemoration of the 70th anniversary of the end of World War II on September 3, the police have launched a citywide security campaign that involves 850,000 people throughout the city’s various districts. During the parade, the leaders of the Communist Party will review the troops. 

Starting from August 20, the 850,000 participants in the security campaign will be wearing red armbands and stand as guards along Beijing’s main streets, in different communities, in shopping malls, and in other public places. The security requirements include patrols on every street or alley, guards at designated key locations, and lookouts at government buildings, shopping malls, stores, and markets. 
Source: People’s Public Security Daily reprinted by People’s Daily, August 20, 2015, http://society.people.com.cn/n/2015/0820/c136657-27492645.html
Briefings | | |   Social Stability