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All posts by TGS - 43. page

Study Times: China’s External Relations

On September 15, Study Times reported a few highlights of a recent Communist Party conference on its external relations with other countries. 

The overall assessment of the international environment was that the strength of China’s rise necessitated that other countries engage in strategic re-balancing. China itself also faces re-balancing between domestic and external strategies and between its economic development and its national security strategy. 
The U.S. re-balancing is not balanced. First, the use of economic means and the use of military forces are not balanced. Second, the handling of the relationships between the Asian Pacific countries is not balanced. For example, the U.S. clearly favors Japan, the Philippines, and Vietnam. China should maintain its strategic confidence and face the reality of the U.S. presence in Asia. “China should not have wishful thinking about driving the U.S. out of Asia. The U.S. cannot expect to contain China either." 
Source: Study Times, September 15, 2014 http://www.cntheory.com/news/XXSBRDGZ/2014/915/1491593210G0B53J4280D431IDHB3J.html
Briefings | | |   US-China Relations

Huanqiu: Patriotism and Love for the Party Are the Same Thing

State media, Huanqiu, published a commentary titled “In China, Patriotism and Love for the Party Are the Same Thing.” 

The commentary acknowledged that it is common in China, particularly among young people, for people to be patriotic but not to support the Communist Party. This is “because Western countries have taken advantage of China’s open door policy to do ideological infiltration.” 

“We advocate that, if one loves China, he should love the Chinese Communist Party. The key to patriotism is to love the Party.” The reasons for this statement are: first, that patriotism and love for the Party are consistent with each other; second, the Western multi-party system does not represent the fundamental interests of the overwhelming majority of China’s people; and third, the Communist Party is the key to running things in China. 
The commentary concluded, “To be patriotic, Chinese citizens must love the Communist Party. Anti-Communism will destroy China. For every Chinese, the true measure of patriotism is whether one loves the Party or not.” 
Source: Huanqiu, September 10, 2014 
http://opinion.huanqiu.com/opinion_china/2014-09/5132838.html
Briefings | | |   Government/Politics

Real Estate Companies Face Lower Profits and Higher Inventory

Huanqiu reported that, in the first six months of 2014, half of the real estate companies saw their profits decline. 

Among the real estate companies listed on the stock exchanges of Shanghai, Shenzhen, and Hong Kong, as of August 31, 156 of them had released their reports for the first half of 2014. Although 135 of them reported gains, half of the 156 companies reported that their profits had declined. 
As their sales decreased, their inventories have been on the rise. As reported on August 31, the inventory levels for Beijing, Shanghai, Guangzhou and Shenzhen had risen by 30 percent, 25 percent, 42 percent and 25 percent respectively for the first half of 2014. It will take 18, 11, 13 and 20 months to deplete these inventories. 
Cash flow has also suffered. Of the 146 real estate companies listed with the Shanghai Stock Exchange, 107 had a negative operational cash flow. Poly Real Estate Group Company Limited, a large state-owned real estate company funded by the People’s Liberation Army, reported a negative cash flow of 14.28 billion yuan (US$2.33 billion), a decline of 250 percent. 
Source: Huanqiu, September 10, 2014 
http://mt.huanqiu.com/Html/ahtml/china/2014-09-10/5133116.html
Briefings | | |   Economy/Resources

Study Times on the Strategic Framework for China’s Rise

Study Times published a commentary on the strategy behind China’s peaceful rise. The framework of its rise includes the following components: 

The first is its path. China must unswervingly follow the path of peaceful development.

Second, regarding breakthroughs, China should extend the Silk Road westward through continental central Asia. It can then extend its resources to Africa for access to Africa’s energy resources and markets and to Europe for its money. China should also extend the Silk Road eastward to the Pacific East Asian economic circle for economic cooperation and mutual trust in the political and security arena. 

The third is related to countries. China should carefully balance the strategic triangular relationship with the United States and Russia with the understanding that in terms of comprehensive national strength, China, the United States, and Russia are the most powerful countries and the major international rules-makers with extensive interests throughout the world. 
The Fourth is principles. China must keep a low profile; it must follow the current strategy with major powers as the key, neighboring countries as a priority, developing countries as the foundation, and multilateral diplomacy as an important platform. 

Source: Study Times, September 8, 2014 
http://www.studytimes.cn/shtml/xxsb/20140908/6494.shtml

Briefings | | |   Government/Politics

Experts: 2015 Will See Further Decline in China’s Real Estate Industry

According to the Beijing-based media, Caixin, Wang Tao, the chief China economist at the UBS global management firm, predicted that 2015 would see a further decline in China’s real estate market. As a result of fundamental changes in supply and demand patterns that have occurred, even if Chinese decision-makers were to relax government policies, it would hardly change the downward trend.

Although the "Golden September and Silver October," representing the traditional sales season for real estate, are approaching, analysts are not optimistic and believe that sales and new starts will continue to drop sharply towards the end of this year and into 2015. For 2015, Wang Tao expects that real estate sales will likely decline by another five to 10 percent. New housing starts may fall another 10 percent. It is not a matter of another cyclical downturn but the result of fundamental changes in the patterns of supply and demand. Therefore, it is unlikely that any government measures to boost the market would be effective. 
Source: caixin.com, August 26, 2014 
http://economy.caixin.com/2014-08-26/100721225.html
Briefings | | |   Economy/Resources

Study Times: Re-enforcing the Communist Party’s Control of Companies

Study Times wrote a commentary stating that it is a matter of urgency to ensure the political control of “mixed-ownership enterprises.” These are companies in which different ownership entities have jointly invested. The different forms of ownership may include State-owned, corporate owned, privately owned, and foreign-owned enterprises. 

“It has become increasingly difficult in the mixed ownership enterprises to be able to carry out the development of the Party’s work. More effort must be expended to perfect the institutional mechanisms to ensure the implementation of Party development.” 
The commentary recommended the following measures: 
1. Qualified Party officials, who are personnel at the enterprise, should serve as leaders of the trade union and the Communist Youth League. 
2. Through specific legal procedures, Party secretaries should become members of the Supervisory Board of the enterprises.  
3. The Party organizations inside these enterprises should exert proactive and extensive efforts to recruit corporate decision-making and management personnel to join the Party. Thus the Party organization and the corporate management and supervision system will be fully integrated. 
4. Party member meetings must be carried out regularly in accordance with the Constitution of the Communist Party of China. 

Source: Study Times, August 18, 2014 
http://www.studytimes.cn/shtml/xxsb/20140818/6079.shtml

Briefings | | |   Government/Politics

Qiushi: The Conflicts between China and the U.S. Have Been Exaggerated

An official from China’s Academy of Social Sciences wrote a commentary, which Qiushi then published, stating that the conflicts between the U.S. and China have been exaggerated.  

According to the commentary, although the conflicts in East Asia appear to be irreconcilable, on the whole, the situation may be a different story. “China does not have the capability or the intent to challenge the U.S. position on the global platform. The two countries still have additional room for cooperation on global issues. If the two sides share more common interests in dealing with global issues and establish more robust cooperation mechanisms, they may be able to transcend the inevitable, structural geopolitical conflicts in East Asia."  
Due to differences in ideologies, any specific conflict could easily be magnified to become a lethal attack against and a part of the strategy to weaken the adversary. “The life and death confrontation between the capitalist countries and socialist countries is more the result of traditional international political realism and geopolitical competition. The confrontation between the U.S. and Soviet Union was, ultimately, one for hegemonic power to protect their national interests. … The actual role of ideology in Sino-U.S. relations may be more minor than imagined.” 
Source: Qiushi, August 19, 2014 
http://www.qstheory.cn/international/2014-08/19/c_1112140291.htm
Briefings | | |   US-China Relations

Health Officials on Illegal Organ Harvesting in China

On August 17, 2014, China’s health officials announced that anyone who engages in the illegal trade and transplantation of organs will be severely punished. Wang Yu, Secretary of the National Health and Family Planning Commission, stated that a comprehensive organ transplant monitoring system will be established to severely punish, according to the law, the illegal sale of human organs, their private distribution, and the transplantation of organs from executed prisoners.
 
Huang Jiefu, head of the Chinese Human Organ Donation and Transplantation Committee and China’s Vice Minister of Health said, "For some hospitals, doctors, and individuals in the judicial system to conduct the private acquisition, distribution, and transplant of organs from executed prisoners will be considered an illegal sale of organs and will be prohibited according to the law." 

According to official records, from March 2010 to August 2014, 5,787 organs were donated while over 10,000 organ transplants were performed each year.
[Editor’s note: Observers noted that the announcement may indicate that the implementation of existing regulations on organ transplants has not been effective in prohibiting organ harvesting. Effective September 2013, all organ donations and transplants will be required to go through the government’s centralized distribution system]. 
Sources: Beijing News reprinted by Xinhua, August 18, 2018 
http://news.xinhuanet.com/local/2014-08/18/c_126882057.htm
http://china.caixin.com/2014-08-18/100718281.html

Briefings | | |   Government/Politics